Mission Oaks Shareholders Approve Bank Holding Company


TEMECULA, Calif., July 15, 2005 (PRIMEZONE) -- More than two-thirds of the shareholders of Mission Oaks National Bank (OTCBB:MKNB) have approved a proposal to create Mission Oaks Bancorp, a bank holding company.

Stockholders of the Temecula-based community bank also approved the election of 11 directors and a revised stock option plan at an annual shareholders meeting.

Once the bank holding company is approved by regulators, Mission Oaks would become the wholly owned subsidiary of Mission Oaks Bancorp.

The bank holding company structure makes it easier for the firm to raise additional capital, repurchase its own stock, borrow money, acquire other banks and non-bank entities and issue stock.

"After we receive regulatory approval, Mission Oaks will let shareholders know when the merger will occur," said Gary Votapka, Mission Oaks president and chief executive. "The merger of the bank holding company and the bank also will trigger a 2-for-1 stock split."

Following the split, Mission Oaks shareholders will be eligible to receive two shares of the new bank holding company for each Mission Oaks National Bank share they currently own. For example, a shareholder with 1,000 Mission Oaks National Bank shares prior to the split would receive 2,000 shares in the new bank holding company.

Mission Oaks National Bank is an award-winning, community-based, federally chartered bank with assets of more than $130 million 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 County and Phoenix. Mission Oaks plans to open a third branch in Ontario next month.

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.

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



            

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