TEMECULA, Calif., Jan. 21, 2004 (PRIMEZONE) -- Mission Oaks National Bank (OTCBB:MKNB) finished 2003 on a strong note by posting record results.
The Temecula-based community bank earned a record $1.03 million, or $1.25 a share, for the year ended Dec. 31. That was a 204 percent increase from the profit of $337,000, or 44 cents a share, the bank posted a year ago. 2003 results included a tax credit of $214,000 and 2002 results included a tax credit of 224,000 arising from a net operating loss carryforward.
Mission Oaks, which is entering its fourth year, benefited from strong loan and deposit growth.
"The Bank continues to attract good, healthy business," said Gary Votapka, president and chief executive. "We have no non-performing assets on our books."
For the year, net interest income reached $3.3 million, up 63.6 percent, or $1.3 million , from $2.03 million a year ago.
The Bank also benefited from increased non-interest income from the sale of loans, fees and mortgage originations. Non-interest income for the year was $2.02 million, up nearly three-fold from the $740,000 posted a year ago. A strong housing market and the lowest interest rates in four decades helped boost Mission Oaks' mortgage lending operation.
Assets at year-end were $92.7 million, up 58.6 percent from $58.4 million a year ago. Total deposits reached $75.1 million compared with $51.1 million a year ago.
Loans at year-end were $66.5 million, up 51.3 percent from $44 million 12 months earlier.
Mission Oaks finished the year with a return on average assets (ROA) of 1.37 percent and return on average equity (ROE) of 13.28 percent. Nearly 500 similarly sized U.S. banks reported an average ROA and ROE of 0.98 percent and 9.65 percent, respectively, according to Federal Deposit Insurance Corp. data for the period ended Sept. 30, 2003.
In the fourth quarter, Mission Oaks earned $285,000, or 31 cents a share. A year ago the bank had a profit of $280,000, or 37 cents a share, but results included a tax credit of $224,000. A warrant exercise program offered to Mission Oaks shareholders in the quarter increased the number of shares outstanding from 763,471 a year ago to 959,641.
Mission Oaks National Bank is an award-winning, community-based, federally chartered bank that is committed to serving consumers and businesses in Southwest Riverside and Northern San Diego counties. The bank offers personalized services and products through two full-service branch offices and loan production offices in San Diego and Phoenix.
For more on Mission Oaks National Bank visit its Web site at: http://www.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.
MISSION OAKS NATIONAL BANK
FOURTH QUARTER REPORT / DECEMBER 31, 2003
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BALANCE SHEET
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(all amounts in whole dollars except share and per share information)
Increase Increase
December 31, December 31, (Decrease) (Decrease)
2003 2002
------------ ------------ ------------ ------------
ASSETS
Cash and due
from banks $2,791,000 $2,291,000 $500,000 21.8%
Due from
banks -
time 0 694,000 (694,000)
Federal
funds sold 2,635,000 1,340,000 1,295,000 96.6%
Securities -
available
for sale 16,124,000 9,003,000 7,121,000
Securities -
held to
maturity 0 0 0 0.0%
Loans 66,538,000 43,984,000 22,554,000 51.3%
Less allow-
ance for
loan losses (840,000) (495,000) (345,000) 69.7%
------------ ------------ ------------
Loans, net 65,698,000 43,489,000 22,209,000 51.1%
Premises and
equipment,
net 645,000 716,000 (71,000) -9.9%
Federal
Reserve
Bank and
other bank
stocks 662,000 267,000 395,000 147.9%
Deferred tax
asset 240,000 230,000 10,000 4.3%
Accrued
interest
and other
assets 3,865,000 396,000 3,469,000 876.0%
------------ ------------ ------------
$92,660,000 $58,426,000 $34,234,000 58.6%
============ ============ ============
LIABILIITIES AND STOCKHOLDERS' EQUITY
Demand
deposits $19,795,000 $12,684,000 $7,111,000 56.1%
Interest-
bearing
deposits 55,327,000 38,432,000 16,895,000 44.0%
Federal
funds
purchased
and other
borrowings 7,000,000 0 7,000,000
Other
liabilities 821,000 490,000 331,000 67.6%
------------ ------------ ------------
Total
liabili-
ties 82,943,000 51,606,000 31,337,000 60.7%
Total
stock-
holders'
equity 9,717,000 6,820,000 2,897,000 42.5%
------------ ------------ ------------
$92,660,000 $58,426,000 $34,234,000 58.6%
============ ============ ============
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STATEMENT OF OPERATIONS
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3 Mos ended 3 Mos ended 12 Mos ended 12 Mos ended
December 31, December 31, December 31, December 31,
2003 2002 2003 2002
------------ ------------ ------------ ------------
Interest
income $1,174,000 $810,000 $4,172,000 $2,645,000
Interest
expense 197,000 195,000 842,000 609,000
------------ ------------ ------------ ------------
Net interest
income 977,000 615,000 3,330,000 2,036,000
Provision
for loan
losses 146,000 45,000 366,000 205,000
------------ ------------ ------------ ------------
Net interest
income
after
provision
for loan
losses 831,000 570,000 2,964,000 1,831,000
Other income 693,000 245,000 2,024,000 740,000
Other
expense 1,046,000 759,000 3,612,000 2,458,000
------------ ------------ ------------ ------------
Earnings
(loss)
before
income
taxes 478,000 56,000 1,376,000 113,000
Income taxes
(benefit) 193,000 (224,000) 349,000 (224,000)
------------ ------------ ------------ ------------
Net
earnings
(loss) $285,000 $280,000 $1,027,000 $337,000
============ ============ ============ ============
Average
common
shares
outstanding 922,538 763,471 819,494 763,085
Basic
earnings
(loss)
per share $0.31 $0.37 $1.25 $0.44
Return on
average
assets
(annual-
ized) 1.33% 1.97% 1.37% 0.73%
Return on
average
equity
(annual-
ized) 12.37% 16.98% 13.28% 5.22%
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SELECTED RATIOS
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December 31, December 31,
2003 2002
------------ ------------
Leveraged
capital
ratio 11.51% 12.05%
Total risk-
based
capital
ratio 15.46% 15.62%
Allowance
for loan
losses as a
percent of
total loans 1.25% 1.12%
Nonperform-
ing assets
as a per-
cent of
total
assets 0.00% 0.00%
Loan to
deposit
ratio 89.32% 86.33%