Business & Finance
Business and Finance
Business and Finance
Wed, November 10, 2010 Mission Oaks Bancorp Announces Results for the Third Quarter of 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 September 30, 2010.
"We are hopeful that we have moved into that final stage of resolution with many of our weakest loans where we have taken back collateral and are in the process of disposing of it. Costs to hold and dispose of real estate can be expensive but eventually that will end."
For the quarter, the company reported a net loss of $1,160,000, or $0.12 per share, compared to net earnings of $163,000, or $0.03 per share, for the quarter ended September 30, 2009. The decrease in earnings between periods is primarily attributed to higher provisions to the companya™s allowance for loan losses and costs related to foreclosed real estate. Provisions to the allowance for loan losses for the quarter ended September 30, 2010 totaled $505,000, compared to $251,000 for the quarter ended September 30, 2009. Expenses related to foreclosed real estate for the quarter ended September 30, 2010 totaled $639,800, compared to a gain on foreclosed real estate of $40,400 for the quarter ended September 30, 2009.
In the first nine months of 2010, the company reported a net loss of $5,040,000, or $0.83 per share, compared with $7,774,000, or $1.72 per share, in the corresponding 2009 period.
The company previously announced that it was successful in raising $7,040,000 in new capital in July from a private placement offering. This allowed the banka™s subsidiary, Mission Oaks National Bank, to report capital levels well above the minimums required by the banka™s regulatory authority. The banka™s Tier One Leverage ratio was 10.28 percent and the Total Risk Based Capital ratio was 15.01 percent as of September 30, 2010.
aThe economy has had a devastating effect on many of our borrowers. Many of our borrowers have struggled, and we have had to deal with the results,a said Gary Votapka, president and chief executive. aWe are hopeful that we have moved into that final stage of resolution with many of our weakest loans where we have taken back collateral and are in the process of disposing of it. Costs to hold and dispose of real estate can be expensive but eventually that will end.a
The company has been deliberately shrinking in recent years as a way to preserve its capital ratios. During the third quarter of 2010, total assets declined to $172.0 million, representing a decrease of $15.4 million, or 8.2 percent, from total assets of $187.5 million as of June 30, 2010. Total deposits as of September 30, 2010 were $146.6 million, an 8.3 percent decline over total deposits of $160.3 million as of June 30, 2010. Non-interest bearing demand deposits totaled $36.0 million as of September 30, 2010, an increase of 20.4 percent compared to $29.9 million of non-interest bearing demand deposits as of June 30, 2010. The companya™s gross loan portfolio declined to $117.2 million at September 30, 2010, a 6.2 percent decrease from gross loans of $124.9 million as of June 30, 2010.
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 | ||||||||||||
| THIRD QUARTER REPORT / SEPTEMBER 30, 2010 | ||||||||||||
| CONSOLIDATED BALANCE SHEET | ||||||||||||
| (all amounts in whole dollars except share and per share information) | ||||||||||||
| Increase | Increase | |||||||||||
| September 30, 2010 | September 30, 2009 | (Decrease) | (Decrease) | |||||||||
| ASSETS | ||||||||||||
| Cash and due from banks | $11,557,000 | $19,028,000 | ($7,471,000 | ) | (39.26 | )% | ||||||
| Certificates of deposit in other banks | 2,945,000 | 5,343,000 | (2,398,000 | ) | (44.88 | )% | ||||||
| Federal funds sold | NA | |||||||||||
| Investment securities available for sale | 27,324,000 | 21,693,000 | 5,631,000 | 25.96 | % | |||||||
| Loans | 117,163,000 | 148,260,000 | (31,097,000 | ) | (20.97 | )% | ||||||
| Less allowance for loan losses | (4,340,000 | ) | (5,320,000 | ) | 980,000 | (18.42 | )% | |||||
| Loans, net | 112,823,000 | 142,940,000 | (30,117,000 | ) | (21.07 | )% | ||||||
| Premises and equipment | 573,000 | 872,000 | (299,000 | ) | (34.29 | )% | ||||||
| SBA-Loan servicing asset/interest only strips | 239,000 | 397,000 | (158,000 | ) | (39.80 | )% | ||||||
| Cash surrender value of life insurance | 3,320,000 | 3,188,000 | 132,000 | 4.14 | % | |||||||
| Other real estate owned | 10,488,000 | 8,024,000 | 2,464,000 | |||||||||
| Other assets | 2,761,000 | 4,920,000 | (2,159,000 | ) | (43.88 | )% | ||||||
| $172,030,000 | $206,405,000 | ($34,375,000 | ) | (16.65 | )% | |||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||
| Demand deposits | $36,003,000 | $31,048,000 | $4,955,000 | 15.96 | % | |||||||
| Interest bearing deposits | 110,593,000 | 141,286,000 | (30,693,000 | ) | (21.72 | )% | ||||||
| Total deposits | 146,596,000 | 172,334,000 | (25,738,000 | ) | (14.93 | )% | ||||||
| Borrowings | 12,732,000 | 21,732,000 | (9,000,000 | ) | (41.41 | )% | ||||||
| Other liabilities | 3,187,000 | 2,003,000 | 1,184,000 | 59.11 | % | |||||||
| Total liabilities | 162,515,000 | 196,069,000 | (33,554,000 | ) | (17.11 | )% | ||||||
| Total shareholders' equity | 9,515,000 | 10,336,000 | (821,000 | ) | (7.94 | )% | ||||||
| $172,030,000 | $206,405,000 | ($34,375,000 | ) | (16.65 | )% | |||||||
| CONSOLIDATED STATEMENT OF INCOME | ||||||||||||
| 3 Mos ended | 3 Mos ended | 9 Mos ended | 9 Mos ended | |||||||||
| September 30, 2010 | September 30, 2009 | September 30, 2010 | September 30, 2009 | |||||||||
| Interest income | $2,100,000 | $2,772,000 | $6,639,000 | $8,704,000 | ||||||||
| Interest expense | 559,000 | 1,074,000 | 2,050,000 | 3,695,000 | ||||||||
| Net interest income | 1,541,000 | 1,698,000 | 4,589,000 | 5,009,000 | ||||||||
| Provision for loan losses | 505,000 | 251,000 | 2,910,000 | 7,636,000 | ||||||||
| Net interest income after provision for loan losses | 1,036,000 | 1,447,000 | 1,679,000 | (2,627,000 | ) | |||||||
| Noninterest income | 239,000 | 585,000 | 847,000 | 1,529,000 | ||||||||
| Noninterest expense | 2,435,000 | 1,869,000 | 7,566,000 | 6,676,000 | ||||||||
| Income before income taxes | (1,160,000 | ) | 163,000 | (5,040,000 | ) | (7,774,000 | ) | |||||
| Provision for income taxes | ||||||||||||
| Net income | ($1,160,000 | ) | $163,000 | ($5,040,000 | ) | ($7,774,000 | ) | |||||
| Average common shares outstanding | 9,379,094 | 4,497,502 | 6,108,225 | 4,497,502 | ||||||||
| Net income per share-basic | ($0.12 | ) | $0.03 | ($0.83 | ) | ($1.72 | ) | |||||
| Return on average assets (annualized) | (2.58 | )% | 0.00 | % | (3.60 | )% | (4.67 | )% | ||||
| Return on average equity (annualized) | (50.65 | )% | 5.80 | % | (84.08 | )% | (69.92 | )% | ||||
| SELECTED RATIOS | ||||||||||||
| September 30, 2010 | September 30, 2009 | |||||||||||
| Allowance for loan losses as a percent of total loans | 3.70 | % | 3.58 | % | ||||||||
| Nonperforming assets as a percent of total assets | 12.49 | % | 11.15 | % | ||||||||
| Loan to deposit ratio | 79.92 | % | 86.03 | % | ||||||||
