TEMECULA, Calif. Oct. 9, 2003 (PRIMEZONE) -- Mission Oaks National Bank (OTCBB:MKNB) reported record results for the first nine months of 2003 and the 12 months ended Sept. 30 due to strong growth in non-interest income.
The Temecula-based community bank earned $240,000, or 30 cents a share, in the third quarter. That compares with a profit of $82,000, or 11 cents a share, a year ago. In the first nine months of 2003, Mission Oaks earned a record $741,000, or 96 cents a share. During the same period a year ago, the bank earned $56,000, or 7 cents a share. Over the last 12 months the bank has earned a record $1 million, or $1.23 a share.
"We are pleased with our results despite a tough interest rate environment," said Gary Votapka, president and chief executive. "The historically low rates have put pressure on the net interest margin of all banks."
Nine-month results benefited from an increase in non-interest income from the sale of loans, fees and mortgage originations, which grew 169 percent, or $837,000 from the same period a year ago. A particularly strong contributor was the bank's mortgage brokerage operations, which received a boost from a robust housing market and favorable interest rates.
As of Sept. 30 assets reached $80.6 million, up 47.3 percent from the same period a year ago. Total deposits reached $71.5 million, a $23.6 million, or 49.4 percent, increase from a year ago. Loans at the end of the quarter reached $56.2 million, up 47.2 percent from a year ago.
The bank continues to perform well as it completes its third year. During the quarter Mission Oaks received a reaffirmation of its five-star rating from Bauer Financial Inc., the bank rating service's highest rating. The Small Business Administration also expanded the bank's Preferred Lending status to include most of Southern California. The sought-after designation allows Mission Oaks to streamline its SBA loan process.
The bank is making sure it continues to grow. Mission Oaks shareholders have until Nov. 17 to exercise warrants that will allow them to buy additional shares at $10 each. Mission Oaks stock recently traded at $21 a share. Proceeds from the warrants offering are expected to add approximately $1.9 million in new capital to the bank.
Mission Oaks National Bank is an award-winning, community-based, federally chartered bank that is committed to serving consumers and businesses in Southwest Riverside and Northern San Diego counties. The bank offers personalized services and products through two full-service branch offices and loan production offices in San Diego and Phoenix.
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.
THIRD QUARTER REPORT / SEPTEMBER 30, 2003
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BALANCE SHEET
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(all amounts in whole dollars except share and per share
information)
September 30, September 30, Increase Increase
2003 2002 (Decrease) (Decrease)
-------------- -------------- ---------- ---------
ASSETS
Cash and due
from banks $ 2,932,000 $ 1,914,000 $ 1,018,000 53.2%
Due from
banks -- time 496,000 0 496,000 0
Federal funds
sold 1,385,000 8,185,000 (6,800,000) -83.1%
Securities --
available for
sale 17,563,000 5,042,000 12,521,000 248.3%
Securities --
held to
maturity 0 0 0
Loans 56,931,000 38,645,000 18,286,000 47.3%
Less allowance
for loan losses (715,000) (450,000) (265,000) 58.9%
------------- ------------ ------------
Loans, net 56,216,000 38,195,000 18,021,000 47.2%
Premises and
equipment, net 624,000 765,000 (141,000) -18.4%
Federal Reserve
Bank and other
bank stocks 359,000 263,000 96,000 36.5%
Deferred tax
asset 290,000 19,000 271,000 1426.3%
Accrued interest
and other
assets 756,000 349,000 407,000 116.6%
------------ ------------ ------------
$80,621,000 $54,732,000 $25,889,000 47.3%
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LIABILIITIES AND STOCKHOLDERS' EQUITY
Demand
deposits $20,056,000 $12,465,000 $ 7,591,000 60.9%
Interest bearing
deposits 51,434,000 35,389,000 16,045,000 45.3%
Federal funds
purchased and
other borrowings 0 0 0
Other liabilities 729,000 341,000 388,000 113.8%
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Total
liabilities 72,219,000 48,195,000 24,024,000 49.8%
Total
stockholders'
equity 8,402,000 6,537,000 1,865,000 28.5%
------------- ------------ ------------
$80,621,000 $54,732,000 $25,889,000 47.3%
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STATEMENT OF OPERATIONS
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3 Mos 3 Mos 9 Mos 9 Mos
ended ended ended ended
September 30, September 30, September 30, September 30,
2003 2002 2003 2002
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Interest
income $ 1,075,000 $ 702,000 $ 2,998,000 $ 1,835,000
Interest
expense 210,000 156,000 645,000 414,000
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Net interest
income 865,000 546,000 2,353,000 1,421,000
Provision for
loan losses 75,000 95,000 220,000 160,000
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Net interest
income after
provision for
loan losses 790,000 451,000 2,133,000 1,261,000
Other income 543,000 276,000 1,331,000 494,000
Other expense 925,000 645,000 2,567,000 1,699,000
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Earnings (loss)
before income
taxes 408,000 82,000 897,000 56,000
Income taxes
(benefit) 168,000 0 156,000 0
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Net earnings
(loss) $ 240,000 $ 82,000 $ 741,000 $ 56,000
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Average common
shares
outstanding 795,270 763,471 774,071 762,955
Basic earnings
per share $ 0.30 $ 0.11 $ 0.96 $ 0.07
Return on
average assets
(annualized) 1.17% 0.68% 1.38% 0.17%
Return on average
equity
(annualized) 11.53% 5.02% 13.67% 1.16%
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SELECTED RATIOS
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September 30, September 30,
2003 2002
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Leveraged 10.70% 13.53%
Total risk
based capital
ratio 16.01% 16.91%
Allowance for
loan losses
as a percent
of total loan 1.25% 1.16%
Nonperforming
assets as a
percent of
total assets 0.18% 0.00%
Loan to deposit
ratio 80.17% 80.76%