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%