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Mission Oaks Announces First Quarter Results

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  Published in Business and Finance on Monday, May 10th 2010 at 12:35 GMT by Market Wire
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TEMECULA, Calif.--([ BUSINESS WIRE ])--Mission Oaks Bancorp, Inc. (OTCBB: MOKB), whose principal subsidiary is Mission Oaks National Bank, announced that its net loss for the first quarter of 2010 was $664,000, compared with a net loss of $2,546,000 for the first quarter of 2009.

"The last half of 2008 and the first half of 2009 were the eye of the storm for the Great Recession"

The improvement primarily reflected a decline in provisions set aside for potential losses in its loan portfolio. The company provisioned $236,000 in the first quarter of 2010 compared with $2,368,000 provisioned in the first quarter of 2009.

aThe last half of 2008 and the first half of 2009 were the eye of the storm for the Great Recession,a said Gary Votapka, Mission Oaks president and chief executive. aFor the last half of 2009 and continuing into 2010, wea™ve seen modest improvement. Resolution of problem assets continues to pick-up momentum with the improving economy.a

As of March 31, 2010, the Company had total assets of $187 million, down $48.2 million, or 20.5 percent, from what was reported a year ago. Total deposits in the first quarter were $156.8 million, a 16.7 percent decline from the same period a year earlier.

aWea™ve made a conscious decision to shrink the bank over the last year in order to maintain adequate capital ratios,a said Votapka. aWea™ve used this time to focus on reducing overhead, resolving problem assets and raising capital.a

Non-interest bearing demand deposits at the end of the first quarter totaled $31.6 million, representing 20.2 percent of total deposits. A year ago the bank had $29.1 million in non-interest bearing demand deposits, 15.4 percent of total deposits. The Companya™s gross loan portfolio declined to $131.7 million in the first quarter, a decrease of 21.9 percent from the same period a year ago.

The Company had foreclosed real estate valued at $8.1 million as of March 31, 2010. A year ago it had $6.6 million. The allowance for loan losses totaled $4.2 million at the end of March, or 3.16 percent of total loans. That compares with a $3.5 million allowance for loan losses a year ago. In the first three months of 2010, the Company had net charged off loans valued at $426,000 compared to $2 million for the similar period in 2009.

aThat is a decent improvement in our loan losses,a said Keith Johnson, Mission Oaks executive vice president and chief operating officer. aWe believe that the worst is behind us and wea™re seeing trends going in the right direction.a

The bank announced that it is closing its Ontario office on June 17, saving an estimated $30,000 per month in overhead expenses.

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 five full-service branch offices in Temecula, Lake Elsinore, Fallbrook and Ontario.

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.

Safe Harbor

Certain statements in this press release, including statements regarding the anticipated development and expansion of Mission Oaksa™ business, and the intent, belief or current expectations of Mission Oaks, 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 and by Mission Oaks with the Federal Reserve Board.