TEMECULA, Calif., Jan. 11, 2005 (PRIMEZONE) -- Mission Oaks National Bank (OTCBB:MKNB) posted record results in the fourth quarter of 2004 that boosted earnings for the year ended Dec. 31 to $1.6 million, an increase of 56.1 percent from a year ago.
In the fourth quarter, the Temecula-based community bank earned a record $589,000, or 31 cents a share, up 106.7 percent from the $285,000, or 15 cents a share, reported in the same period a year ago. Results from the fourth quarter of 2003 included 85,055 fewer average outstanding shares of common stock.
"In the quarter, Mission Oaks benefited from strong growth in interest and non-interest income," said Gary Votapka, Mission Oaks president and chief executive. "With no non-performing loans on the books, we look forward to 2005."
Interest income in the quarter reached $1.7 million, up from $1.2 million in the same quarter a year earlier. Non-interest income from the sale of loans, fees and mortgage originations grew 38.2 percent from a year ago to $958,000.
For all of 2004, Mission Oaks earned $1.6 million, or 83 cents, a share, up 56.1 percent from $1 million a year ago.
Assets in the 12-month period ended Dec. 31, 2004, grew 24.8 percent, or nearly $23 million, to $115.9 million.
Net loans increased $16.3 million, or 24.8 percent, to a record $82 million. Total deposits increased by $21 million, or 27.9 percent, to a record $96.1 million.
Annualized return on average assets (ROA), a ratio of profit to assets, reached 1.54 percent in 2004. Annualized return on average shareholders' equity (ROE), a ratio of profit to equity, reached 15.37 percent.
More than 350 similarly sized U.S. banks reported an average ROA and ROE of 1.19 percent and 12.57 percent, respectively, according to a Federal Deposit Insurance Corp. survey as of September 30, 2004.
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 this summer.
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.
MISSION OAKS NATIONAL BANK
FOURTH QUARTER REPORT / DECEMBER 31, 2004
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BALANCE SHEET
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(all amounts in whole dollars except share and per share information)
December 31, December 31, Increase Increase
2004 2003 (Decrease) (Decrease)
------------ ------------ ---------- ----------
ASSETS
Cash and due
from banks $ 1,425,000 $ 2,791,000 ($ 1,366,000) -48.9%
Due from
banks -- time 1,089,000 0 1,089,000
Federal funds
sold 2,120,000 2,635,000 (515,000) -19.5%
Securities --
available for
sale 22,882,000 16,124,000 6,758,000
Loans 83,013,000 66,538,000 16,475,000 24.8%
Less allowance
for loan
losses (1,050,000) (840,000) (210,000) 25.0%
------------ ------------ ------------
Loans, net 81,963,000 65,698,000 16,265,000 24.8%
Premises and
equipment, net 536,000 645,000 (109,000) -16.9%
SBA-Loan
servicing
asset/interest
only strips 891,000 501,000 390,000 77.8%
Cash surrender
value of life
insurance 2,625,000 2,510,000 115,000 4.6%
Accrued
interest and
other assets 2,331,000 1,969,000 362,000 18.4%
------------ ------------ ------------
$115,862,000 $ 92,873,000 $ 22,989,000 24.8%
============ ============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Demand deposits $ 32,748,000 $ 19,795,000 $ 12,953,000 65.4%
Interest
bearing
deposits 63,342,000 55,327,000 8,015,000 14.5%
Federal funds
purchased and
other
borrowings 7,000,000 7,000,000 0
Other
liabilities 1,255,000 1,034,000 221,000 21.4%
------------ ------------ ------------
Total
liabilities 104,345,000 83,156,000 21,189,000 25.5%
Total
stockholders'
equity 11,517,000 9,717,000 1,800,000 18.5%
------------ ------------ ------------
$115,862,000 $ 92,873,000 $ 22,989,000 24.8%
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STATEMENT OF INCOME
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3 Mos ended 3 Mos ended 12 Mos ended 12 Mos ended
December 31, December 31, December 31, December 31,
2004 2003 2004 2003
------------ ------------ ------------ ------------
Interest
income $1,672,000 $1,174,000 $5,708,000 $4,172,000
Interest
expense 292,000 197,000 1,007,000 842,000
---------- ---------- ---------- ----------
Net
interest
income 1,380,000 977,000 4,701,000 3,330,000
Provision
for loan
losses 103,000 146,000 213,000 366,000
---------- ---------- ---------- ----------
Net
interest
income
after
provision
for loan
losses 1,277,000 831,000 4,488,000 2,964,000
Other
income 958,000 693,000 2,781,000 2,024,000
Other
expense 1,249,000 1,046,000 4,623,000 3,612,000
---------- ---------- ---------- ----------
Earnings
before
income
taxes 986,000 478,000 2,646,000 1,376,000
Income
taxes 397,000 193,000 1,043,000 349,000
---------- ---------- ---------- ----------
Net
earnings $ 589,000 $ 285,000 $1,603,000 $1,027,000
========== ========== ========== ==========
Average
common
shares
outstanding 1,930,131 1,845,076 1,924,590 1,638,988
Basic
earnings
per share $ 0.31 $ 0.15 $ 0.83 $ 0.63
Return on
average
assets
(annualized) 2.03% 1.33% 1.54% 1.37%
Return on
average
equity
(annualized) 21.13% 12.37% 15.37% 13.28%
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SELECTED RATIOS
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December 31, 2004 December 31, 2003
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Leveraged capital ratio 9.79% 11.51%
Total risk based capital
ratio 14.14% 15.46%
Allowance for loan losses
as a percent of total
loans 1.25% 1.25%
Nonperforming assets as a
percent of total assets 0.00% 0.00%
Loan to deposit ratio 87.38% 89.32%