TEMECULA, Calif. Oct. 11, 2002 (PRIMEZONE) -- Mission Oaks National Bank (OTCBB:MKNB) reported it earned $82,000, or 11 cents a share, in the third quarter, the community bank's first profitable quarter.
In the same period a year ago, Mission Oaks lost $132,000, or 17 cents a share.
"This is a remarkable milestone for a young bank like ours," said Gary Votapka, Mission Oaks, president and chief executive. "It can typically take a new bank as long as three years before it reports a quarterly profit."
The third quarter profit also allowed the 22-month-old Temecula-based bank to post a profit of $56,000, or 7 cents a share, for the first nine months of 2002. In the same period a year earlier, Mission Oaks lost $552,000, or 73 cents a share.
Mission Oaks achieved profitability despite historically low interest rates that squeezed margins and the costs associated with opening its first branch in the south part of Temecula earlier this year.
"This is an exciting and pivotal period for the bank," said Keith Johnson, executive vice president and chief operating officer. "Our carefully drafted business plan is working well, even exceeding our expectations."
Interest income in the quarter increased to $702,000 from $493,000, a 42.4 percent increase, while interest expenses edged slightly higher to $156,000, up 8.3 percent.
Votapka attributed the strong performance to record asset growth in the quarter.
Total assets grew to more than $54 million, a 78 percent increase from a year ago.
Deposits nearly doubled while loans reached $38.2 million, an increase of $11.5 million or 120 percent from a year ago.
In the third quarter alone, Mission Oaks added $11.7 million in assets, $8 million in loans and $11.5 million in deposits.
Mission Oaks also benefited from increased small business lending. The bank announced in the quarter the opening of Small Business Administration loan offices in northern San Diego County and Phoenix, Ariz. Mission Oaks was the third busiest SBA lender in Riverside County in the quarter ended June 30 with 13 loans valued at $3.6 million.
Overall, Mission Oaks was the 23rd busiest SBA lender in the Riverside, San Bernardino and Orange counties in the quarter, according to the SBA.
Mission Oaks National Bank is a traditional, full-service community bank with roots firmly planted in Southwest Riverside and Northern San Diego counties. It opened its doors in November 2000 after raising $7.6 million from about 325 local investors.
Mission Oaks opened its first branch in June, the first full-service banking location in the south part of Temecula, one of the fastest-growing areas of the city.
For more on Mission Oaks National Bank visit its Website at 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.
THIRD QUARTER REPORT / SEPTEMBER 30, 2002
BALANCE SHEET
(all amounts in whole dollars except share and per share information)
Increase Increase
30-Sep-02 30-Sep-01 (Decrease)(Decrease)
ASSETS
Cash and due
from banks $ 1,914,000 $ 1,975,000 $ (61,000) (3.10)%
Due from
banks - time -- -- -- --
Federal funds sold 8,185,000 2,980,000 5,205,000 174.70%
Securities -
Available for sale 5,042,000 -- 5,042,000 --
Securities -
held to
maturity -- 7,500,000 (7,500,000)(100.00)%
Loans 38,645,000 17,514,000 21,131,000 120.70%
Less allowance
for loan losses (450,000) (225,000) (225,000) 100.00%
Loans, net 38,195,000 17,289,000 20,906,000 120.90%
Bank premises
and equipment, net 765,000 530,000 235,000 44.30%
Other real estate
owned, net -- -- -- --
SBA - Loan
servicing
asset 51,000 -- 51,000 --
Other assets 580,000 484,00 96,000 19.80%
$54,732,000 $30,758,000 $23,974,000 77.90%
LIABILIITIES AND STOCKHOLDERS' EQUITY
Demand deposits $12,465,000 $ 6,297,000 $ 6,168,000 98.00%
Interest bearing
deposits 35,389,000 17,854,000 17,535,000 98.20%
Federal funds
purchased
and other
borrowings -- -- -- --
Other liabilities 341,000 83,000 258,000 310.80%
Total liabilities 48,195,000 24,234,000 23,961,000 98.90%
Total stockholders'
equity 6,537,000 6,524,000 13,000 0.20%
$54,732,000 $30,758,000 $23,974,000 77.90%
STATEMENT OF OPERATIONS
3 Mos ended 3 Mos ended 9 Mos ended 9 Mos ended
30-Sep-02 30-Sep-01 30-Sep-02 30-Sep-01
Interest income $ 702,000 $ 493,000 $1,835,000 $1,118,000
Interest expense 156,000 144,000 414,000 337,000
Net interest income 546,000 349,000 1,421,000 781,000
Provision for loan 95,000 90,000 160,000 195,000
losses
Other income 276,000 46,000 494,000 81,000
Other expense 645,000 437,000 1,699,000 1,219,000
Earnings (loss)
before income
taxes 82,000 (132,000) 56,000 (552,000)
Income taxes
(benefit) -- -- -- --
Net earnings (loss) $ 82,000 $(132,000) $ 56,000 $(552,000)
Average common
shares &
equivalents
outstanding 763,471 760,921 762,955 760,921
Basic earnings
per share $ 0.11 $ (0.17) $ 0.07 $ (0.73)
Return on average
assets (annualized) 0.68% (1.79)% 0.17% (3.17)%
Return on average
equity (annualized) 5.02% (7.94)% 1.16% (10.92)%
SELECTED RATIOS
30-Sep-02 30-Sep-01
Leveraged capital ratio 13.53% 20.83%
Total risk based
capital ratio 16.99% 35.26%
Allowance for loan
losses as a percent of
total loans 1.16% 1.28%
Nonperforming assets as
a percent of total assets 0.00% 0.00%
Loan to deposit ratio 80.76% 72.52%