TEMECULA, Calif. April 10, 2003 (PRIMEZONE) -- Mission Oaks National Bank (OTCBB:MKNB) in the first quarter of 2003 picked up where it left off at the end of 2002.
The Temecula-based community bank earned $225,000, or 29 cents a share in the first quarter. That compares with a loss of $24,000, or 3 cents a share, a year ago. It was the third consecutive profitable quarter for Mission Oaks, which finished 2002 with an annual profit of $337,000.
Founded in November 2000, the bank benefited from strong asset and loan growth and contributions from its fast-growing small business lending operation.
At 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.
"We continue to build on the strong foundation that was put in place over the past two years," said Gary Votapka, Mission Oaks president and chief executive officer. "And we've been able to do this without any delinquent or non-performing loans."
Total assets as of March 31 reached $69.7 million, up more than 74 percent from the same period a year ago. In the last three months alone, bank assets grew by $11.3 million.
Loans at the end of the quarter reached $46.7 million, up 86.5 percent from a year ago.
Despite the rapid growth, Mission Oaks has kept expenses in line. While interest income increased 71.7 percent to $910,000, interest expense rose 59.7 percent to $206,000. As a result, Mission Oaks finished the quarter with net interest income of $704,000, up 75.6 percent from the same quarter a year ago.
Mission Oaks reported that non-interest income grew nearly three-fold to $335,000 from $105,000 a year ago.
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 www.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 forwardlooking 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
FIRST QUARTER REPORT / MARCH 31, 2003
BALANCE SHEET
(all amounts in whole dollars except share and per share information)
March 31, March 31, Increase Increase
2003 2003 (Decrease) (Decrease)
----------- ----------- ---------- ----------
ASSETS
Cash and due
from banks $ 1,837,000 $ 2,510,000 ($673,000) -26.8%
Due from banks
- time 694,000 297,000 397,000 133.7%
Federal funds
sold 6,570,000 3,335,000 3,235,000 97.0%
Securities -
available for
sale 12,653,000 6,963,000 5,690,000 81.7%
Securities -
held to
maturity 0 1,000,000 (1,000,000) -100.0%
Loans 46,740,000 25,063,000 21,677,000 86.5%
Less allowance
for loan
losses (565,000) (325,000) (240,000) 73.8%
----------- ----------- ----------
Loans, net 46,175,000 24,738,000 21,437,000 86.7%
Bank premises
and equipment,
net 692,000 507,000 185,000 36.5%
Other real
estate owned,
net 0 0 0
SBA - Loan
servicing
asset 69,000 18,000 51,000 283.3%
Other assets 1,017,000 611,000 406,000 66.4%
----------- ----------- ----------
$69,707,000 $39,979,000 29,728,000 74.4%
=========== =========== ==========
LIABILIITIES AND
STOCKHOLDERS' EQUITY
Demand
deposits $16,138,000 $ 9,460,000 $ 6,678,000 70.6%
Interest
bearing
deposits 46,110,000 24,023,000 22,087,000 91.9%
Federal funds
purchased and
other
borrowings 0 0 0
Other
liabilities 408,000 141,000 267,000 189.4%
----------- ----------- -----------
Total
liabilities 62,656,000 33,624,000 29,032,000 86.3%
Total
stockholders'
equity 7,051,000 6,355,000 696,000 11.0%
----------- ----------- -----------
$69,707,000 $39,979,000 $29,728,000 74.4%
=========== =========== ===========
STATEMENT OF
OPERATIONS
3 Mos ended 3 Mos ended
March 31, 2003 March 31, 2002
-------------- --------------
Interest income $ 910,000 $ 530,000
Interest expense 206,000 129,000
--------- ---------
Net interest income 704,000 401,000
Provision for loan losses 70,000 35,000
Other income 335,000 105,000
Other expense 779,000 495,000
--------- ---------
Earnings (loss) before
income taxes 190,000 (24,000)
Income taxes (benefit) (35,000) 0
--------- ---------
Net earnings (loss) $ 225,000 ($24,000)
========= =========
Average common shares
& equivalents outstanding 763,471 761,907
Basic earnings (loss) per share $ 0.29 ($0.03)
Diluted earnings (loss) per share $ 0.26 ($0.03)
Return on average assets
(annualized) 1.44% -0.25%
Return on average equity
(annualized) 13.29% -1.51%
SELECTED RATIOS
March 31, 2003 March 31, 2002
-------------- --------------
Leveraged capital ratio 11.05% 17.00%
Total risk based capital ratio 14.76% 23.20%
Allowance for loan losses as a
percent of total loans 1.20% 1.29%
Nonperforming assets as a percent
of total assets 0.00% 0.00%
Loan to deposit ratio 75.44% 75.10%