TEMECULA, Calif., Dec. 3, 2003 (PRIMEZONE) -- Mission Oaks National Bank (OTCBB: MKNB) has successfully completed a warrant exercise program that raised $1.96 million in additional capital.
The capital will allow the Temecula-based community bank to grow to about $120 million in assets and still remain a well-capitalized institution in the eyes of federal banking regulators. The infusion also added nearly $300,000 to the bank's legal lending limit.
The warrant program gave Mission Oaks' original 325 shareholders an opportunity to purchase additional bank stock at $10 a share, its original offering price. Shares in the bank recently traded at about $23 a share.
"We are pleased that nearly all of our shareholders took advantage of the warrant program," said Gary Votapka, Mission Oaks president and chief executive. "The proceeds will allow the bank to increase its lending limit and continue to grow."
Last week, Mission Oaks' board of directors approved plans for a two-for-one split of its common stock. The split requires the approval of two-thirds of Mission Oaks' approximately 350 shareholders. Shareholders of record as of April 1, 2004 would be eligible to receive the stock split.
Mission Oaks National Bank is an award-winning, community-based, federally chartered bank with assets of $89 million 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 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 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.