TEMECULA, Calif., Oct. 13, 2005 (PRIMEZONE) -- Mission Oaks Bancorp (OTCBB:MOKB) reported record earnings in the third quarter ended Sept. 30, 2005 after posting strong deposit and asset growth.
Mission Oaks Bancorp, whose principal subsidiary is Temecula-based Mission Oaks National Bank, said it earned a record $548,000, or 14 cents a share, in the third quarter up from the $324,000, or 8 cents a share, posted in the same quarter a year ago. Per share amounts were adjusted to account for a two-for-one stock split that was effective Sept. 1, 2005.
"It was a remarkable quarter in many respects," said Gary Votapka, Mission Oaks Bancorp president and chief executive. "Earnings reached an historic high despite the costs associated with opening our third full-service branch in Ontario."
During the third quarter, Mission Oaks National Bank became a wholly owned subsidiary of Mission Oaks Bancorp as part of a merger that was approved by shareholders and regulators.
The bank holding company structure makes it easier for Mission Oaks to raise additional capital, repurchase its own stock, borrow money, acquire other banks and non-bank entities and issue stock.
In the first nine months of 2005, Mission Oaks earned $1.4 million, or 35 cents a share, compared with $1 million, or 26 cents a share, in the same period a year ago.
Interest income in the quarter reached $2.2 million, up from $1.4 million in the same quarter a year earlier. Non-interest income reached $599,000, up 18.8 percent from $504,000 a year ago.
Assets in the 12-month period ended Sept. 30 2005, grew 32.3 percent, or nearly $35 million, to a record $142.7 million.
Net loans increased more than $15 million, or 20.6 percent, to a record $88.9 million. Total deposits increased by $32.5 million, or 35.4 percent, to a record $124.6 million.
Annualized return on average assets (ROA), a ratio of profit to assets, reached 1.51 percent, up from 1.25 percent a year ago. Annualized return on average shareholders' equity (ROE), a ratio of profit to equity, was 17.10 percent for the three months ended Sept. 30, 2005, up from 12.2 percent a year earlier.
More than 330 similarly sized U.S. banks reported an average ROA and ROE of 1.35 percent and 13.90 percent, respectively, according to a Federal Deposit Insurance Corp. survey as of June 30, 2005.
Mission Oaks National Bank is a federally chartered community bank that is committed to serving consumers and businesses in Southern California. The bank offers personalized services and products through three full-service branch offices in Temecula and Ontario and loan production offices in San Diego and Phoenix.
Mission Oaks Bancorp common stock is traded over the counter under the stock symbol MOKB.
For more on Mission Oaks National Bank visit its Web site at 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.
MISSION OAKS BANCORP
THIRD QUARTER REPORT / SEPTEMBER 30, 2005
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BALANCE SHEET
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(all amounts in whole dollars except share and per share information)
September 30, Increase
2005 2004 (Decrease)
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ASSETS
Cash and due
from banks $ 4,561,000 $ 3,120,000 $ 1,441,000 46.2%
Due from banks
- time 3,951,000 1,089,000 2,862,000 262.8%
Federal funds sold 15,035,000 2,460,000 12,575,000 511.2%
Securities -
available for sale 23,440,000 21,468,000 1,972,000 9.2%
Loans 90,057,000 74,652,000 15,405,000 20.6%
Less allowance for
loan losses (1,201,000) (951,000) (250,000) 26.3%
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Loans, net 88,856,000 73,701,000 15,155,000 20.6%
Premises and
equipment, net 923,000 555,000 368,000 66.3%
SBA-Loan servicing
asset/interest only
strips 882,000 881,000 1,000 0.1%
Cash surrender value
of life insurance 2,703,000 2,597,000 106,000
Other assets 2,331,000 1,946,000 385,000 19.8%
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$142,682,000 $107,817,000 $ 34,865,000 32.3%
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LIABILITIES AND
STOCKHOLDERS' EQUITY
Demand deposits $ 34,600,000 $ 24,325,000 $ 10,275,000 42.2%
Interest bearing
deposits 90,028,000 67,770,000 22,258,000 32.8%
Federal funds
purchased and other
borrowings 4,000,000 4,000,000 0
Other liabilities 1,081,000 909,000 172,000 18.9%
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Total liabilities 129,709,000 97,004,000 32,705,000 33.7%
Total stockholders'
equity 12,973,000 10,813,000 2,160,000 20.0%
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$142,682,000 $107,817,000 $ 34,865,000 32.3%
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STATEMENT OF INCOME
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3 Mos ended 9 Mos ended
September 30, September 30,
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2005 2004 2005 2004
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Interest income $2,237,000 $1,432,000 $6,066,000 $4,036,000
Interest expense 475,000 272,000 1,201,000 715,000
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Net interest income 1,762,000 1,160,000 4,865,000 3,321,000
Provision for loan
losses 44,000 10,000 204,000 110,000
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Net interest income
after provision
for loan losses 1,718,000 1,150,000 4,661,000 3,211,000
Other income 599,000 504,000 1,831,000 1,823,000
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Other expense 1,401,000 1,127,000 4,200,000 3,374,000
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Income before
income taxes 916,000 527,000 2,292,000 1,660,000
Income taxes 368,000 203,000 914,000 646,000
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Net income $ 548,000 $ 324,000 $1,378,000 $1,014,000
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Average common shares
outstanding 3,919,012 3,851,860(a) 3,900,128 3,844,638(a)
Basic income
per share $ 0.14 $ 0.08(a) $ 0.35 $ 0.26(a)
Return on average
assets (annualized) 1.51% 1.25% 1.43% 1.38%
Return on average
equity (annualized) 17.10% 12.20% 15.10% 13.27%
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SELECTED RATIOS
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September 30,
2005 2004
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Leveraged capital ratio 10.43%
Total risk based capital ratio 14.45%
Allowance for loan losses as a percent
of total loans 1.32% 1.27%
Nonperforming assets as a percent
of total assets 0.00% 0.12%
Loan to deposit ratio 73.12% 81.17%
(a) Adjusted for September 1, 2005 two-for-one stock split