Business & Finance
Business and Finance
Business and Finance
Tue, August 3, 2010
Mon, August 2, 2010 Mission Oaks Bancorp Announces Results for the Second Quarter of 2010
TEMECULA, Calif.--([ BUSINESS WIRE ])--Mission Oaks Bancorp, Inc. (OTCBB: MOKB), whose principal subsidiary is Mission Oaks National Bank, announced unaudited financial results for the second quarter ended June 30, 2010.
"We, and our customers are continuing to operate in a very challenging environment"
In the second quarter, the Company reported a net loss of $2.1 million, or $0.47 per share, compared to a net loss of $5.4 million, or $1.19 per share, for the same period a year earlier. In the first six months of 2010, Mission Oaks lost $2.78 million, or $0.62 per share, compared with a net loss of $7.94 million, or $1.76 per share, in the corresponding 2009 period.
The earnings decline was primarily attributed to additional contributions to loan loss reserves, which totaled $1.1 million in the second quarter and $1.3 million year-to-date. That compares to provisions for loan losses of $5.0 million in the same quarter and $7.4 million in the year-to-date results a year ago. In addition, the company took a one-time expense of $365,000 for the closure of its Ontario branch office in the second quarter.
As of June 30, 2010, the Company had total assets of $187.5 million, down $28.9 million, or 13.4 percent, from what was reported a year ago. Total deposits at the end of the second quarter were $160.3 million, 12.1 percent growth from the same period a year earlier.
Non-interest bearing demand deposits at end of the second quarter totaled $29.9 million, representing 18.7 percent of total deposits. A year ago the Company had $28.6 million in non-interest bearing demand deposits, 15.7 percent of total deposits. The Companya™s gross loan portfolio declined to $124.9 million in the second quarter, a decrease of 20.1 percent from the same period a year ago.
The Company had foreclosed real estate totaling $9.4 million as of June 30, 2010. A year ago it had $8.1 million. Four parcels totaling $1.6 million are in escrow to be sold at no additional loss. In the second quarter of 2010, non-accrual loans totaled $13.5 million, which represented 10.8 percent of total loans compared to non-accrual loans of $11.8 million a year earlier, which represented 7.5 percent of total loans. All loans delinquent 90 days or more were on non-accrual as of June 30, 2010 and 2009.
The allowance for loan losses totaled $4.45 million at the end of June 2010, or 3.56 percent of total loans. That compares with a $5.4 million allowance for loan losses, or 3.46 percent, a year ago.
The Company also was successful in raising an additional $7,045,000 in new capital in a private placement offering that closed on July 27, 2010. Nearly all of this new capital was down streamed to Mission Oaks National Bank. As a result of this capital infusion, the Banka™s Tier I Capital ratio as of June 30, 2010 on a pro forma basis would have been 10.52 percent. This ratio is well above the 9 percent mandatory target set by the Banka™s regulators and is among the highest in the California community banking industry.
aWe, and our customers are continuing to operate in a very challenging environment,a said President and CEO Gary Votapka. aWe are making progress with our problem assets and expect further improvement in the months ahead. We hope the worst of the economic storm is behind us, but are pleased that we now have $7 million in new capital to help us deal with the weak local economy.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 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.
| MISSION OAKS BANCORP | |||||||||||||||||||||||
| SECOND QUARTER REPORT / JUNE 30, 2010 | |||||||||||||||||||||||
| CONSOLIDATED BALANCE SHEET | |||||||||||||||||||||||
| (all amounts in whole dollars except share and per share information) | |||||||||||||||||||||||
| Increase | Increase | ||||||||||||||||||||||
| June 30, 2010 | June 30, 2009 | (Decrease) | (Decrease) | ||||||||||||||||||||
| ASSETS | |||||||||||||||||||||||
| Cash and due from banks | $ | 21,471,000 | $ | 2,893,000 | $ | 18,578,000 | 642.2 | % | |||||||||||||||
| Certificates of deposit in other banks | 2,158,000 | 3,920,000 | (1,762,000 | ) | -44.9 | % | |||||||||||||||||
| Federal funds sold | 10,864,000 | (10,864,000 | ) | -100.0 | % | ||||||||||||||||||
| Investment securities available for sale | 26,872,000 | 28,605,000 | (1,733,000 | ) | -6.1 | % | |||||||||||||||||
| Loans | 124,884,000 | 156,248,000 | (31,364,000 | ) | -20.1 | % | |||||||||||||||||
| Less allowance for loan losses | (4,450,000 | ) | (5,410,000 | ) | 960,000 | -17.7 | % | ||||||||||||||||
| Loans, net | 120,434,000 | 150,838,000 | (30,404,000 | ) | -20.2 | % | |||||||||||||||||
| Premises and equipment | 629,000 | 953,000 | (324,000 | ) | -34.0 | % | |||||||||||||||||
| SBA-Loan servicing asset/interest only strips | 291,000 | 416,000 | (125,000 | ) | -30.0 | % | |||||||||||||||||
| Cash surrender value of life insurance | 3,287,000 | 3,155,000 | 132,000 | 4.2 | % | ||||||||||||||||||
| Other real estate owned | 9,357,000 | 8,103,000 | 1,254,000 | 15.5 | % | ||||||||||||||||||
| Other assets | 2,960,000 | 6,657,000 | (3,697,000 | ) | -55.5 | % | |||||||||||||||||
| $ | 187,459,000 | $ | 216,404,000 | ($28,945,000 | ) | -13.4 | % | ||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||||||||
| Demand deposits | $ | 29,907,000 | $ | 28,564,000 | $ | 1,343,000 | 4.7 | % | |||||||||||||||
| Interest bearing deposits | 130,400,000 | 153,763,000 | (23,363,000 | ) | -15.2 | % | |||||||||||||||||
| Total deposits | 160,307,000 | 182,327,000 | (22,020,000 | ) | -12.1 | % | |||||||||||||||||
| Borrowings | 14,209,000 | 22,018,000 | (7,809,000 | ) | -35.5 | % | |||||||||||||||||
| Other liabilities | 7,474,000 | 1,950,000 | 5,524,000 | 283.3 | % | ||||||||||||||||||
| Total liabilities | 181,990,000 | 206,295,000 | (24,305,000 | ) | -11.8 | % | |||||||||||||||||
| Total shareholders' equity | 5,469,000 | 10,109,000 | (4,640,000 | ) | -45.9 | % | |||||||||||||||||
| $ | 187,459,000 | $ | 216,404,000 | ($28,945,000 | ) | -13.4 | % | ||||||||||||||||
| CONSOLIDATED STATEMENT OF INCOME | |||||||||||||||||||||||
| 3 Mos ended | 3 Mos ended | 6 Mos ended | 6 Mos ended | ||||||||||||||||||||
| June 30, 2010 | June 30, 2009 | June 30, 2010 | June 30, 2009 | ||||||||||||||||||||
| Interest income | $ | 2,239,000 | $ | 2,887,000 | $ | 4,539,000 | $ | 5,931,000 | |||||||||||||||
| Interest expense | 730,000 | 1,245,000 | 1,491,000 | 2,621,000 | |||||||||||||||||||
| Net interest income | 1,509,000 | 1,642,000 | 3,048,000 | 3,310,000 | |||||||||||||||||||
| Provision for loan losses | 1,068,000 | 5,016,000 | 1,304,000 | 7,384,000 | |||||||||||||||||||
| Net interest income after provision for loan losses | 441,000 | (3,374,000 | ) | 1,744,000 | (4,074,000 | ) | |||||||||||||||||
| Noninterest income | 343,000 | 497,000 | 607,000 | 944,000 | |||||||||||||||||||
| Noninterest expense | 2,899,000 | 2,514,000 | 5,130,000 | 4,807,000 | |||||||||||||||||||
| Income/(loss) before income taxes | (2,115,000 | ) | (5,391,000 | ) | (2,779,000 | ) | (7,937,000 | ) | |||||||||||||||
| Provision for income taxes | |||||||||||||||||||||||
| Net income/(loss) | ($2,115,000 | ) | ($5,391,000 | ) | ($2,779,000 | ) | ($7,937,000 | ) | |||||||||||||||
| Average common shares outstanding | 4,497,502 | 4,497,502 | 4,497,502 | 4,497,502 | |||||||||||||||||||
| Net income/(loss) per share-basic | ($0.47 | ) | ($1.19 | ) | ($0.62 | ) | ($1.76 | ) | |||||||||||||||
| Return on average assets (annualized) | -4.37 | % | -9.64 | % | -2.92 | % | -7.06 | % | |||||||||||||||
| Return on average equity (annualized) | -120.96 | % | -140.43 | % | -75.03 | % | -95.47 | % | |||||||||||||||
| SELECTED RATIOS | |||||||||||||||||||||||
| June 30, 2010 | June 30, 2009 | ||||||||||||||||||||||
| Allowance for loan losses as a percent of total loans | 3.56 | % | 3.46 | % | |||||||||||||||||||
| Nonperforming assets as a percent of total assets | 12.19 | % | 9.17 | % | |||||||||||||||||||
| Loan to deposit ratio | 77.90 | % | 85.69 | % | |||||||||||||||||||
