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Mission Oaks Reports Results for 2010

^{Published on 2011-03-24 15:50:40 - Market Wire}
 

TEMECULA, Calif.--([ BUSINESS WIRE ])--Mission Oaks Bancorp, Inc. (OTCBB: MOKB), whose principal subsidiary is Mission Oaks National Bank, reported a net loss of $7,976,000, or $1.11 per share, for the year ended December 31, 2010. That compares to a net loss of $9,839,000, or $2.19 per share, for the year ended December 31, 2009.

"Our focus has clearly shifted from identifying deteriorating loans to resolving problem assets. The number of emerging problem loans has notably slowed but the costs to litigate and foreclose on these loans and then hold and dispose of foreclosed property continued to hinder our return to profitability in 2010."

The losses were largely attributed to significantly increased provisions to the Companya™s allowance for loan losses, which totaled $3,308,000 for the year ended December 31, 2010, compared with $8,975,000 for the year ended December 31, 2009. Also contributing to the loss was $3,866,000 in write-downs and related expenses on foreclosed real estate in 2010, compared to OREO related expenses totaling $2,554,000 for 2009.

a2010 was another difficult year for Mission Oaks National Bank, but it marked a bit of a transition for the bank,a said Gary Votapka, Mission Oaks president and chief executive officer. aOur focus has clearly shifted from identifying deteriorating loans to resolving problem assets. The number of emerging problem loans has notably slowed but the costs to litigate and foreclose on these loans and then hold and dispose of foreclosed property continued to hinder our return to profitability in 2010.a

In the fourth quarter of 2010, the Company posted a $2,937,000 loss, or $0.28 per share, as it added $398,000 to its reserves to cover future loan losses and made a $1,735,000 write down on its foreclosed real estate assets. This compares with a net loss of $2,065,000 for the same period in 2009.

The Company had foreclosed real estate of $11,440,000 at the end of 2010 compared to $6,924,000 a year ago. As of December 31, 2010, non-accrual loans totaled $11,495,000, representing 10.7 percent of total loans, compared to $13,655,000 or 9.9 percent of total loans a year ago. All loans delinquent 90 days or more were on a non-accrual basis as of December 31, 2010 and 2009.

The allowance for loan losses totaled $4.18 million as of December 31, 2010, or 3.86 percent of total loans, compared to $4.35 million as of December 31, 2009, or 3.17 percent of total loans. In 2010, the Company had net charged off loans totaling $3,484,000 million compared to $7,725,000 in 2009.

As of December 31, 2010, the Company had total assets of $159.1 million, representing a decrease of $38.7 million, or 19.6 percent, over the same date a year earlier. Total deposits at yearend were $136.9 million, a decrease of 16.7 percent from $164.4 million a year ago. The Companya™s gross loan portfolio declined to $108.3 million at December 31, 2010, representing a 21 percent decrease over gross loans of $137.1 million at December 31, 2009.

In July 2010, the company raised $7 million in a private placement. The banka™s Tier 1 capital ratio at December 31, 2010 was 9.29% and its Total Risk Based Capital Ratio at December 31, 2010 was 13.71%, both above the minimum ratios required by their primary banking regulator.

aA number of positive steps were taken in 2010 by raising capital and resolving problem loans,a commented Votapka. aAs the economy improves in early 2011 we are seeing further favorable movement. So far in 2011 we have been able to sell five OREO parcels reducing OREO totals by $6,527,000. We have another two OREO parcels in escrow totaling $1,080,000. We have a lot more work to do but we see clear progress.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 three 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.