TEMECULA, Calif., July 8, 2003 (PRIMEZONE) -- Mission Oaks National Bank (OTCBB:MKNB) reported that strong asset growth and contributions from its small business lending operation led to record results in the second quarter ended June 30.
The Temecula-based community bank earned a record $276,000, or 36 cents a share, in the second quarter. That compares with a loss of $2,000 a year ago. In the first six months of 2003, Mission Oaks earned a record $502,000, or 66 cents a share. During the same period a year ago, the bank lost $26,000, or 3 cents a share. Over the last 12 months the bank has earned $865,000.
"We clearly benefit from being in the right place at the right time," said Gary Votapka, president and chief executive. "The communities and businesses we serve continue to grow and embrace our personalized style of banking."
He said the bank continues to enjoy healthy asset and loan growth.
Total assets as of June 30 reached $74.8 million, up nearly 74 percent from the same period a year ago.
Loans at the end of the quarter reached $51.7 million, up 67.6 percent from a year ago. Votapka said the bank in the first six months of 2003 originated Small Business Administration loans valued at approximately $3 million.
Mission Oaks also reported that non-interest income from the sale of loans, fees and mortgage originations grew nearly fourfold to $453,000 from $113,000 a year ago.
The bank also continues to perform well and operate efficiently as evidenced by several key banking ratios, said Keith Johnson, executive vice president. Return on assets, a comparison of profit and assets, reached 1.49 percent in the second quarter. Return on equity, a comparison of profit and equity, reached 14.4 percent in the quarter.
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.
SECOND QUARTER REPORT / JUNE 30, 2003
---------------------------------------------------------------------
BALANCE SHEET
---------------------------------------------------------------------
(all amounts in whole dollars except share and per share information)
June 30, June 30, Increase Increase
2003 2002 (Decrease) (Decrease)
-------- --------- ---------- ----------
ASSETS
Cash and due
from banks $ 2,489,000 $ 2,146,000 $343,000 16.0%
Due from
banks -- time 496,000 297,000 199,000 67.0%
Federal funds
sold 3,370,000 4,770,000 (1,400,000) -29.4%
Securities --
available for
sale 15,620,000 4,056,000 11,564,000 285.1%
Securities --
held to maturity 0 0 0
Loans 51,665,000 30,831,000 20,834,000 67.6%
Less allowance
for loan losses (640,000) (355,000) (285,000) 80.3%
---------------------------------------
Loans, net 51,025,000 30,476,000 20,549,000 67.4%
Premises and
equipment, net 649,000 775,000 (126,000) -16.3%
Federal Reserve
Bank and other
bank stocks 358,000 262,000 96,000 36.6%
Deferred tax
asset 260,000 19,000 241,000 1268.4%
Accrued interest
and other assets 548,000 263,000 285,000 108.4%
---------------------------------------
$74,815,000 $43,064,000 $ 31,751,000 73.7%
=======================================
LIABILIITIES AND STOCKHOLDERS' EQUITY
Demand deposits $16,150,000 $ 9,981,000 $ 6,169,000 61.8%
Interest bearing
deposits 50,746,000 26,396,000 24,350,000
Federal funds
purchased and
other borrowings 0 0 0
Other liabilities 596,000 228,000 368,000 161.4%
--------------------------------------
Total liabilities 67,492,000 36,605,000 30,887,000 84.4%
Total stockholders'
equity 7,323,000 6,459,000 864,000 13.4%
--------------------------------------
$74,815,000 $43,064,000 $31,751,000 73.7%
======================================
---------------------------------------------------------------------
STATEMENT OF OPERATIONS
---------------------------------------------------------------------
3 Mos 3 Mos 6 Mos 6 Mos
ended ended ended ended
June 30, June 30, June 30, June 30,
2003 2002 2003 2002
--------------------------------------------------
Interest income $ 1,013,000 $ 603,000 $ 1,923,000 $1,133,000
Interest expense 228,000 129,000 435,000 258,000
--------------------------------------------------
Net interest
income 785,000 474,000 1,488,000 875,000
Provision for
loan losses 75,000 30,000 145,000 65,000
--------------------------------------------------
Net interest
income after
provision for
loan 710,000 444,000 1,343,000 810,000
losses
Other income 453,000 113,000 788,000 218,000
Other expense 864,000 559,000 1,642,000 1,054,000
--------------------------------------------------
Earnings (loss)
before income
taxes 299,000 (2,000) 489,000 (26,000)
Income taxes
(benefit) 23,000 0 (13,000) 0
--------------------------------------------------
Net earnings
(loss) $ 276,000 ($2,000) $ 502,000 ($26,000)
==================================================
Average common
shares
outstanding 763,471 763,471 763,471 762,693
Basic earnings
per share $ 0.36 ($0.00) $ 0.66 ($0.03)
Return on average
assets
(annualized) 1.53% -0.02% 1.49% -0.13%
Return on average
equity
(annualized) 15.42% -0.11% 14.40% -0.82%
---------------------------------------------------------------------
SELECTED RATIOS
---------------------------------------------------------------------
June 30, June 30,
2003 2002
-------- --------
Leveraged capital
ratio 10.09% 15.16%
Total risk based
capital ratio 14.39% 20.58%
Allowance for loan
losses as a
percent of total 1.23% 1.15%
loans
Nonperforming
assets as a
percent of total
assets 0.00% 0.00%
Loan to deposit
ratio 77.62% 85.00%