TEMECULA, Calif., Jan. 15, 2003 (PRIMEZONE) -- Mission Oaks National Bank (OTCBB:MKNB) benefited from strong loan and asset growth to finish 2002, its second full year, with an annual profit of $337,000, or 44 cents a share.
In 2001 the Temecula-based community bank lost $647,000, or 85 cents a share. It typically takes new banks as long as three years to post an annual profit.
In the fourth quarter, Mission Oaks earned $280,000, or 37 cents a share, compared with a loss of $95,000, or 12 cents a share, a year ago. It was the second consecutive profitable quarter for Mission Oaks, which posted a profit of $82,000 in the third quarter.
"The bank in the second half of the year clearly benefited from a growing acceptance of our personalized banking services and the vibrant economy of Southwest Riverside and Northern San Diego counties," said Gary Votapka, Mission Oaks president and chief executive officer.
Total assets as of Dec. 31, 2002 were $58.4 million, up 75 percent from a year ago.
Deposits at year-end reached $51.6 million, nearly double from a year ago. Loans also grew nearly two-fold, from $22.9 million to $43.9 million.
"We continue to see strong demand for construction and business loans in our region despite economic sluggishness elsewhere," said Keith Johnson, Mission Oaks executive vice president and chief operating officer.
Net interest income for the year was $2 million, up from $1.2 million a year earlier.
The fourth quarter capped a remarkable year for Mission Oaks, a traditional community bank that opened its doors in November 2000.
Mission Oaks in June opened its second office on Highway 79 South in south Temecula. It is the only full-service bank branch serving a fast growing part of the city.
During the year, the bank also expanded small business lending with the addition of loan offices in San Diego County and Arizona. By year-end Mission Oaks was the fifth busiest small business lender in Riverside County and the 22nd busiest in Southern California, according to the Small Business Administration.
Mission Oaks National Bank is a full-service community bank that serves Southwest Riverside and Northern San Diego counties.
For more on Mission Oaks National Bank visit its Web site at missionoaksbank.com.
Safe Harbor
Certain matters discussed in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to the company's current expectations regarding future operating results and growth in loans, deposits, and assets. These forward looking statements are subject to certain risks and uncertainties that could cause the actual results, performance or achievements to differ materially from those expressed, suggested or implied by the forward-looking statements.
These risks and uncertainties include, but are not limited to: (1) the impact of changes in interest rates, a decline in economic conditions and increased competition among financial service providers on the company's results of operation, (2) the company's ability to continue its internal growth rate, (3) the company's ability to build net interest spread, (4) the quality of the company's earning assets, and (5) government regulations.
MISSION OAKS NATIONAL BANK
FOURTH QUARTER REPORT / DECEMBER 31, 2002
BALANCE SHEET
(all amounts in whole dollars except share and per share information)
Increase Increase
Dec. 31, 2002 Dec. 31, 2001 (Decrease) (Decrease)
---------- ---------- ---------- ------
ASSETS
Cash and due from
banks $ 2,291,000 $ 800,000 $ 1,491,000 186.4%
Due from banks -
time 694,000 0 694,000 --
Federal funds sold 1,340,000 1,910,000 (570,000) -29.8%
Securities -
available for sale 9,003,000 6,010,000 2,993,000 --
Securities -
held to maturity 0 1,000,000 (1,000,000) -100.0%
Loans 43,984,000 22,952,000 21,032,000 91.6%
Less allowance for
loan losses (495,000) (289,000) (206,000) 71.3%
---------- ---------- ---------- ------
Loans, net 43,489,000 22,663,000 20,826,000 91.9%
Bank premises and
equipment, net 716,000 515,000 201,000 39.0%
Other real estate
owned, net 0 0 0 --
SBA - Loan servicing
asset 46,000 0 46,000 --
Other assets 861,000 494,000 367,000 74.3%
---------- ---------- ---------- ------
$58,440,000 $33,392,000 $25,048,000 75.0%
========== ========== ========== ======
LIABILIITIES AND STOCKHOLDERS' EQUITY
Demand deposits $12,684,000 $ 6,355,000 $ 6,329,000 99.6%
Interest bearing
deposits 38,432,000 20,477,000 17,955,000 87.7%
Federal funds
purchased and
other borrowings 0 0 0 --
Other liabilities 504,000 157,000 347,000 221.0%
---------- ---------- ---------- ------
Total liabilities 51,620,000 26,989,000 24,631,000 91.3%
Total stockholders'
equity 6,820,000 6,403,000 417,000 6.5%
---------- ---------- ---------- ------
$58,440,000 $33,392,000 $25,048,000 75.0%
========== ========== ========== ======
STATEMENT OF OPERATIONS
3 Mos 3 Mos 12 Mos 12 Mos
ended ended ended ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2002 2001 2002 2001
------- ------- --------- ---------
Interest income $810,000 $536,000 $2,645,000 $1,654,000
Interest expense 195,000 142,000 609,000 479,000
------- ------- --------- ---------
Net interest income 615,000 394,000 2,036,000 1,175,000
Provision for
loan losses 45,000 65,000 205,000 260,000
Other income 245,000 110,000 740,000 191,000
Other expense 759,000 534,000 2,458,000 1,753,000
------- ------- --------- ---------
Earnings (loss)
before income
taxes 56,000 (95,000) 113,000 (647,000)
Income taxes
(benefit) (224,000) 0 (224,000) 0
------- ------- --------- ---------
Net earnings
(loss) $280,000 ($95,000) $ 337,000 ($647,000)
======= ======= ========= =========
Average common
shares
outstanding 763,471 760,921 763,085 760,921
Basic earnings
(loss) per share $ 0.37 ($0.12) $ 0.44 ($0.85)
Diluted earnings
(loss) per share $ 0.33 ($0.12) $ 0.40 ($0.85)
Return on average
assets (annualized) 1.97% -1.13% 0.73% -2.51%
Return on average
equity (annualized) 16.98% -5.80% 5.22% -9.68%
SELECTED RATIOS
December 31, 2002 December 31, 2001
----------------- -----------------
Leveraged capital ratio 12.05% 19.30%
Total risk based capital ratio 15.62% 26.10%
Allowance for loan losses
as a percent of total loans 1.12% 1.26%
Nonperforming assets as a
percent of total assets 0.00% 0.00%
Loan to deposit ratio 86.33% 85.71%