TEMECULA, Calif., July 12, 2006 (PRIMEZONE) -- Mission Oaks Bancorp (OTCBB:MOKB) reported record earnings and asset growth in the second quarter ended June 30 and for the first six months of 2006.
Mission Oaks Bancorp, whose principal subsidiary is Temecula-based Mission Oaks National Bank, said it earned $475,000, or 12 cents a share, in the second quarter of 2006, up from $410,000, or 11 cents a share, posted a year earlier. Per share amounts were adjusted to account for a two-for-one stock split that was effective Sept. 1, 2005.
"We continue to experience strong demand for loans and our personalized services," said Gary Votapka, Mission Oaks Bancorp president and chief executive. "Adding loan officers at branches in Temecula and our Business Center in Ontario and increased lending limits contributed to the positive results."
In the first six months of 2006, Mission Oaks earned a record $1.3 million, or 32 cents a share, compared with $830,000, or 22 cents a share, in the same period a year earlier.
Assets as of June 30, 2006 reached $158.7 million, up $25.3 million, or 19 percent, from the same period a year ago.
In the quarter, interest income reached $2.6 million, up from $2 million a year earlier. Net loans finished the quarter at $103.4, up $16.5, or 19 percent, from the same period a year ago.
Total deposits increased by $4.5 million, or 3.9 percent, to $120.3 million in the first six months of 2006.
In the first half of 2006, annualized return on average assets (ROA), a ratio of profit to assets, reached 1.74 percent. A year ago, it stood at 1.37 percent. Annualized return on average shareholders' equity (ROE), a ratio of profit to equity, was 17.23 percent for the six months ended June 30, 2006, up from 13.99 percent a year earlier.
More than 750 similarly sized U.S. banks reported an average ROA and ROE of 1.13 percent and 12.07 percent, respectively, according to a Federal Deposit Insurance Corp. survey as of December 31, 2005.
In the second quarter, Mission Oaks Bancorp completed a private issuance of $7.5 million in trust preferred securities. Net proceeds from the transaction will be used for general corporate purposes, including support for continued growth of the bank.
The additional capital increases Mission Oaks' lending limit to $3.4 million and ensures it remains a well-capitalized institution as assets grow beyond $150 million.
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.OB.
For more on Mission Oaks National Bank visit its Web site at missionoaksbank.com.
The Mission Oaks National Bank logo is available at http://media.primezone.com/prs/single/?pkgid=471
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
SECOND QUARTER REPORT / JUNE 30, 2006
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CONSOLIDATED BALANCE SHEET
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(all amounts in whole dollars except share
and per share information)
Increase Increase
June 30, 2006 June 30, 2005 (Decrease) (Decrease)
------------- ------------- ------------- -------------
ASSETS
Cash and due
from banks $4,349,000 $3,013,000 $1,336,000 44.3%
Certificates
of deposit
in other
banks 4,743,000 1,485,000 3,258,000 219.4%
Federal
funds sold 1,082,000 14,600,000 (13,518,000) -92.6%
Investment
securities
available
for sale 34,247,000 21,031,000 13,216,000 62.8%
Loans 104,767,000 88,075,000 16,692,000 19.0%
Less allowance
for loan
losses (1,372,000) (1,210,000) (162,000) 13.4%
------------ ------------ ------------
Loans, net 103,395,000 86,865,000 16,530,000 19.0%
Premises and
equipment 809,000 551,000 258,000 46.8%
SBA-Loan
servicing
asset/interest
only strips 683,000 916,000 (233,000) -25.4%
Cash surrender
value of life
insurance 2,780,000 2,677,000 103,000 3.8%
Real estate
owned 2,957,000 0 2,957,000 --
Other assets 3,699,000 2,315,000 1,384,000 59.8%
------------ ------------ ------------
$158,744,000 $133,453,000 $25,291,000 19.0%
============ ============ ============
LIABILIITIES AND SHAREHOLDERS' EQUITY
Demand
deposits $37,510,000 $35,816,000 $1,694,000 4.7%
Interest
bearing
deposits 82,743,000 79,925,000 2,818,000 3.5%
------------ ------------ ------------
Total
deposits 120,253,000 115,741,000 4,512,000 3.9%
Borrowings 21,397,000 4,000,000 17,397,000 434.9%
Other
liabilities 1,462,000 1,219,000 243,000 19.9%
------------ ------------ ------------
Total
liabilities 143,112,000 120,960,000 22,152,000 18.3%
Total
shareholders'
equity 15,632,000 12,493,000 3,139,000 25.1%
------------ ------------ ------------
$158,744,000 $133,453,000 $25,291,000 19.0%
============ ============ ============
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CONSOLIDATED STATEMENT OF INCOME
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3 Mos ended 3 Mos ended 6 Mos ended 6 Mos ended
June 30, 2006 June 30, 2005 June 30, 2006 June 30, 2005
------------- ------------- ------------- -------------
Interest
income $2,576,000 $1,997,000 $5,015,000 $3,829,000
Interest
expense 664,000 396,000 1,227,000 726,000
------------ ------------ ------------ ----------
Net interest
income 1,912,000 1,601,000 3,788,000 3,103,000
Provision for
loan losses 107,000 50,000 179,000 160,000
------------ ------------ ------------ ----------
Net interest
income after
provision
for loan
losses 1,805,000 1,551,000 3,609,000 2,943,000
Noninterest
income 583,000 574,000 1,753,000 1,232,000
Noninterest
expense 1,609,000 1,446,000 3,264,000 2,800,000
------------ ------------ ------------ ----------
Income before
income taxes 779,000 679,000 2,098,000 1,375,000
Provision for
income taxes 304,000 269,000 835,000 545,000
------------ ------------ ------------ ----------
Net
income $475,000 $410,000 $1,263,000 $830,000
============ ============ ============ ==========
Average common
shares
outstanding 4,049,612 3,893,654(a) 4,008,490 3,887,150(a)
Net income
per share
-- basic $0.12 $0.11(a) $0.32 $0.22(a)
Return on
average
assets
(annualized) 1.29% 1.32% 1.74% 1.37%
Return on
average
equity
(annualized) 12.38% 13.49% 17.23% 13.99%
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SELECTED RATIOS
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June 30, 2006 June 30, 2005
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Allowance for loan losses
as a percent of total loans 1.30% 1.37%
Nonperforming assets as a
percent of total assets 1.87% 0.04%
Loan to deposit ratio 87.13% 76.19%
(a) Adjusted for September 1, 2005 two-for-one stock split