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Mission Oaks Bancorp Raises $7 Million in New Capital

^{Published on 2010-07-26 12:00:21 - Market Wire}
 

TEMECULA, Calif.--([ BUSINESS WIRE ])--Mission Oaks Bancorp, Inc. (OTCBB:MOKB), whose principal subsidiary is Mission Oaks National Bank, announced the successful completion of the sale of $7 million in new common stock under the terms of a private placement offering that closed on July 26, 2010. The shares were sold for $4 per aunit.a Each unit included four shares of common stock and a warrant that entitles the investor to purchase an additional share for $1 per share in 2013. Mission Oaks Bancorp plans to use the proceeds to bolster the capital of Mission Oaks National Bank.

"The banking regulators play an important role in oversight of banks in a negative economic climate like the one we are in"

aI am pleased to report that we were able to successfully raise the full $7 million that we were seeking,a said Gary Votapka, president and chief executive. aThe last few years have been very difficult for community banks, especially for those in the Inland Empire. It is gratifying to know that the directors, shareholders and new investors who purchased our stock are confident that we will be able to continue to play a role as one of the dominant independent banks in our market.a

On a pro forma basis reflecting the offering and Mission Oaks National Banka™s existing capital on June 30, 2010, the banka™s Tier I Capital ratio would have been 10.60 percent and its Total Risk Based Capital ratio would have been 16.18 percent. Both of these ratios significantly exceed the respective 9 percent and 12 percent ratios required under a consent order that Mission Oaks signed on May 12, 2010, with its primary regulator, the Office of Comptroller of the Currency.

aNearly every community bank in Southern California is under some form of regulatory agreement, and many of them call for additional capital to be raised,a Votapka explained. aWe are one of the few companies that have successfully done that.a

aThe banking regulators play an important role in oversight of banks in a negative economic climate like the one we are in,a stated Mission Oaks Chairman Robert Knogge. aThey work to develop agreed upon strategies with their bank constituents to quickly and appropriately restore the health of those banks that have been most seriously affected. The Inland Empire was probably hit the hardest, in terms of economic damage, of all of Southern California. Our customers have been hurt and to the extent we serve those customers, we are affected too. Ita™s been a tough period to endure.a

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

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 [ www.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.