Business & Finance
Business and Finance
Business and Finance
Wed, September 29, 2010
Tue, September 28, 2010 
TEMECULA, Calif.--([ BUSINESS WIRE ])--Mission Oaks Bancorp, Inc. (OTCBB: MOKB), whose principal subsidiary is Mission Oaks National Bank, announced restated unaudited financial results for the quarter ended June 30, 2010.
For the quarter ended June 30, 2010, the Company reported a revised net loss of $3.2 million, or $0.72 per share, compared to a net loss of $5,391,000 or $1.19 per share, for same period a year earlier. For the first six months of 2010, the Company reported a net loss of $3.88 million, or $0.87 per share, compared to a net loss for the first six months of 2009 of $7.9 million, or $1.76 per share.
The increased loss reflected adjustments made to three loans under FAS 114 accounting rules concerning collateral impaired loans. Information about the fair value of underlying collateral derived from updated appraisals and other relevant information resulted in additional write downs totaling $1.1 million. An equal amount of provision for loan loss was expensed.
As of June 30, 2010, the Company had total assets of $186.4 million, down $30 million, or 13.9 percent, over what was reported a year ago. Total deposits in the second quarter were $160.3 million, down 12.1 percent from the same period a year earlier.
The Company had previously announced that it had successfully raised $7 million in new capital under a private placement offering that closed in July 2010. $6.9 million was in turn injected into Mission Oaks National Bank. The Banka™s total shareholdersa™ equity adjusted for the new capital and the restated earnings as of June 30, 2010 on a pro-forma basis was $19.4 million, or an adjusted Tier 1 ratio of 9.95 percent and a Total Risk Based Capital ratio of 15.15 percent. The ratios are in excess of what the banka™s primary regulator, the Office of the Comptroller of the Currency, has mandated.
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 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 | **REVISED** | |||||||||||||||||
| 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 | 123,800,000 | 156,248,000 | (32,448,000 | ) | -20.8 | % | ||||||||||||
| Less allowance for loan losses | (4,466,000 | ) | (5,410,000 | ) | 944,000 | -17.4 | % | |||||||||||
| Loans, net | 119,334,000 | 150,838,000 | (31,504,000 | ) | -20.9 | % | ||||||||||||
| 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 | % | ||||||||||||
| $ | 186,359,000 | $ | 216,404,000 | ($30,045,000 | ) | -13.9 | % | |||||||||||
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 | 4,369,000 | 10,109,000 | (5,740,000 | ) | -56.8 | % | ||||||||||||
| $ | 186,359,000 | $ | 216,404,000 | ($30,045,000 | ) | -13.9 | % | |||||||||||
| 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 | 2,169,000 | 5,016,000 | 2,405,000 | 7,384,000 | ||||||||||||||
| Net interest income after provision for loan losses | (660,000 | ) | (3,374,000 | ) | 643,000 | (4,074,000 | ) | |||||||||||
| Noninterest income | 343,000 | 497,000 | 607,000 | 944,000 | ||||||||||||||
| Noninterest expense | 2,899,000 | 2,514,000 | 5,129,000 | 4,807,000 | ||||||||||||||
| Income/(loss) before income taxes | (3,216,000 | ) | (5,391,000 | ) | (3,879,000 | ) | (7,937,000 | ) | ||||||||||
| Provision for income taxes | ||||||||||||||||||
| Net income/(loss) | ($3,216,000 | ) | ($5,391,000 | ) | ($3,879,000 | ) | ($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 | ($0.72 | ) | ($1.19 | ) | ($0.87 | ) | ($1.76 | ) | ||||||||||
| Return on average assets (annualized) | -6.65 | % | -9.64 | % | -4.08 | % | -7.06 | % | ||||||||||
| Return on average equity (annualized) | -183.92 | % | -140.43 | % | -104.73 | % | -95.47 | % | ||||||||||
| SELECTED RATIOS | ||||||||||||||||||
| June 30, 2010 | June 30, 2009 | |||||||||||||||||
| Allowance for loan losses as a percent of total loans | 3.61 | % | 3.46 | % | ||||||||||||||
| Nonperforming assets as a percent of total assets | 11.97 | % | 9.17 | % | ||||||||||||||
| Loan to deposit ratio | 77.23 | % | 85.69 | % | ||||||||||||||
