TEMECULA, Calif., April 25, 2005 (PRIMEZONE) -- Mission Oaks National Bank (OTCBB:MKNB) will ask its shareholders to approve a two-for-one split of its common stock at the same time they vote on plans to create a bank holding company.
The stock split and proposal to establish a bank holding company were approved by the bank's board of directors. Shareholders will have an opportunity to vote on both measures at Mission Oaks' annual shareholders meeting, which will be held July 14.
The stock split requires the approval of two-thirds of Mission Oaks' approximately 425 shareholders. Shareholders of record as of August 1, 2005, would be eligible to receive the stock split.
"Mission Oaks just announced record earnings in the first quarter of 2005," said Robert Knogge, chairman. "The stock split enhances shareholder value by doubling the number of outstanding shares and improving their availability."
Mission Oaks had previously declared a two-for-one stock split in April 2004.
Once shareholders approve the split and bank holding company, Mission Oaks shareholders would receive two shares of the new bank holding company -- most likely to be named Mission Oaks Bancorp -- for each Mission Oaks National Bank share they currently own. For example, a shareholder with 1,000 Mission Oaks National Bank shares prior to the split would receive 2,000 shares in the new bank holding company after the split and approval of the bank holding company.
Following the approval, Mission Oaks would become the wholly owned subsidiary of the new holding company. The board of directors believes that the new corporate structure will provide additional growth opportunities and greater financial flexibility for Mission Oaks.
The bank holding company structure makes it easier for the firm to raise additional capital, repurchase its own stock, borrow money, acquire other banks and non-bank entities and issue stock.
Mission Oaks National Bank is an award-winning, community-based, federally chartered bank with assets of more than $120 million that is committed to serving consumers and businesses in Southern California. The bank offers personalized services and products through two full-service branch offices and loan production offices in San Diego County and Phoenix. Mission Oaks plans to open a third branch in Ontario this summer.
For more on Mission Oaks National Bank visit its Web site at missionoaksbank.com
The Mission Oaks National Bank company logo is available at http://media.primezone.com/prs/single/?pkgid=471
Safe Harbor
Certain statements in this press release, including statements regarding the anticipated development and expansion of the Bank's business, and the intent, belief or current expectations of the Bank, its directors or its officers, are "forward-looking" statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, risks related to the local and national economy, the Bank's performance, regulatory matters and those discussed in filings by the Bank with the Office of the Comptroller of the Currency.