Net Interest Income Up 44.9 Percent at Mission Oaks National Bank


TEMECULA, Calif., July 25, 2005 (PRIMEZONE) -- Mission Oaks National Bank (OTCBB:MKNB) reported that increased loan activity pushed net interest income in the second quarter to a record $1.6 million, a 44.9 percent increase from the same period a year ago.

At the same time, the Temecula-based community bank said startup costs associated with a new Regional Business Banking Center in Ontario increased other expenses in the quarter to $1.4 million, up 27.9 percent. The branch, the bank's third, is scheduled to open in August.

During the quarter, Mission Oaks reported earnings of $410,000, or 21 cents a share, up slightly from the $404,000, or 21 cents a share, posted in the same quarter a year earlier. The most recent quarter included 26,635 more average common shares outstanding.

"Second quarter results show that our business plan and strategy are on track even as we make a significant investment in our branch network," said Gary Votapka, Mission Oaks president and chief executive. "We look forward to the rest of 2005."

In the first half of 2005, Mission Oaks earned $830,000, or 43 cents a share, compared with $690,000, or 36 cents a share, in the same period a year ago.

Other key financial highlights in the quarter include:


 -- Total assets increased $33.5 million, or 33.5 percent, to a 
    record $133.5 million. 
 -- Net loans increased $19.5 million, or 28.9 percent, to a 
    record $86.9 million.
 -- Total deposits increased by $31.1 million, or 36.7 percent, 
    to an all-time high of $115.7.
 -- Interest income increased $652,000, or 48.5 percent, to $2 
    million. 

Mission Oaks National Bank is an award-winning, community-based, federally chartered bank 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 and Phoenix. Mission Oaks plans to open a third branch in Ontario in August.

For more on Mission Oaks National Bank visit its Web site at www.missionoaksbank.com.

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.

The Mission Oaks National Bank company logo is available at http://media.primezone.com/prs/single/?pkgid=471


 MISSION OAKS NATIONAL BANK
 SECOND QUARTER REPORT / JUNE 30, 2005

 ---------------------------------------------------------------------
 BALANCE SHEET
 ---------------------------------------------------------------------
 (all amounts in whole dollars except share and per share information)


                                              Increase      Increase
                June 30, 2005 June 30, 2004  (Decrease)    (Decrease)
                ------------- -------------  ----------    ----------

 ASSETS

  Cash and due 
   from banks  $   3,013,000 $   1,900,000 $   1,113,000       58.6%
  Due from 
   banks -- 
   time            1,485,000       693,000       792,000      114.3%
  Federal 
   funds sold     14,600,000     5,915,000     8,685,000      146.8%
  Securities 
   -- available
   for sale       21,031,000    18,261,000     2,770,000       15.2%


  Loans           88,075,000    68,331,000    19,744,000       28.9%
  Less 
   allowance 
   for loan 
   losses         (1,210,000)     (941,000)     (269,000)      28.6%
               ------------- ------------- -------------
  Loans, net      86,865,000    67,390,000    19,475,000       28.9%

  Premises and
   equipment, 
   net               551,000       564,000       (13,000)      -2.3%
  SBA -- Loan
   servicing 
   asset/
   Interest 
   only strips       916,000       860,000        56,000        6.5%
  Cash 
   surrender 
   value of 
   life 
   insurance       2,677,000     2,568,000       109,000        4.2%
  Other assets     2,315,000     1,832,000       483,000       26.4%
               ------------- ------------- -------------
               $ 133,453,000 $  99,983,000 $  33,470,000       33.5%
               ============= ============= =============

 LIABILIITIES AND STOCKHOLDERS' EQUITY

  Demand 
   deposits    $  35,816,000 $  23,150,000 $  12,666,000       54.7%
  Interest 
   bearing
   deposits       79,925,000    61,498,000    18,427,000       30.0%
  Federal 
   funds
   purchased 
   and other
   borrowings      4,000,000     4,000,000             0
  Other 
   liabilities     1,219,000       950,000       269,000       28.3%
               ------------- ------------- -------------
   Total 
    liabilities  120,960,000    89,598,000    31,362,000       35.0%


  Total 
  stockholders'
   equity         12,493,000    10,385,000     2,108,000       20.3%
               ------------- ------------- -------------
               $ 133,453,000 $  99,983,000 $  33,470,000       33.5%
               ============= ============= =============


 ---------------------------------------------------------------------
 STATEMENT OF INCOME
 ---------------------------------------------------------------------

                3 Mos ended   3 Mos ended   6 Mos ended   6 Mos ended
               June 30, 2005 June 30, 2004 June 30, 2005 June 30, 2004
               ------------- ------------- ------------- -------------
  Interest 
   income      $   1,997,000 $   1,345,000 $   3,829,000 $   2,604,000
  Interest 
   expense           396,000       240,000       726,000       443,000
               ------------- ------------- ------------- -------------
  Net interest
   income          1,601,000     1,105,000     3,103,000     2,161,000
  Provision 
   for loan
   losses             50,000        40,000       160,000       100,000
               ------------- ------------- ------------- -------------
  Net interest
   income 
   after 
   provision 
   for loan 
   losses          1,551,000     1,065,000     2,943,000     2,061,000
  Other income       574,000       732,000     1,232,000     1,319,000
  Other 
   expense         1,446,000     1,131,000     2,800,000     2,248,000
               ------------- ------------- ------------- -------------
  Income 
   before 
   income 
   taxes             679,000       666,000     1,375,000     1,132,000
  Income taxes       269,000       262,000       545,000       442,000
               ------------- ------------- ------------- -------------
   Net income  $     410,000 $     404,000 $     830,000 $     690,000
               ============= ============= ============= =============


  Average 
   common
   shares 
   outstanding     1,946,827     1,920,192     1,943,575     1,919,745
  Basic 
   earnings 
   per share   $        0.21 $        0.21 $        0.43 $        0.36
  Return on 
   average
   assets 
   (annualized)         1.32%         1.65%         1.37%        1.45%
  Return on 
   average
   equity 
   (annualized)        13.49%        15.96%        13.99%       13.84%

 ---------------------------------------------------------------------
 SELECTED RATIOS
 ---------------------------------------------------------------------
                     June 30, 2005     June 30, 2004
                     -------------     -------------       

  Leveraged 
   capital
   ratio                10.05%            10.61%
  Total risk 
   based
   capital 
   ratio                13.44%            15.11%
  Allowance 
   for loan
   losses as 
   a percent
   of total 
   loans                 1.37%             1.36%
  Nonperforming 
   assets
   as a 
   percent of
   total assets          0.04%             0.00%
  Loan to 
   deposit ratio        76.19%            81.81%


            

Mot-clé


Coordonnées