Mission Oaks Reports Results for 2010
TEMECULA, Calif., Mar 24, 2011 (BUSINESS WIRE) -- Mission Oaks Bancorp, Inc.
(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.
The losses were largely attributed to significantly increased provisions to the
Company'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.
"2010 was another difficult year for Mission Oaks National Bank, but it marked a
bit of a transition for the bank," said Gary Votapka, Mission Oaks president and
chief executive officer. "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."
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 Company'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 bank'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.
"A number of positive steps were taken in 2010 by raising capital and resolving
problem loans," commented Votapka. "As 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."
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 Oaks' 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
FOURTH QUARTER REPORT / DECEMBER 31, 2010
BALANCE SHEET
-----------------------------------------------------------
(all amounts in whole dollars except share and per share
information)
IncreaseIncrease
December 31, 2010December 31, 2009(Decrease)(Decrease)
---------------------------------------------------------------------
ASSETS
Cash and due from banks$9,500,000$15,361,000($5,861,000)-38.2 %
Certificates of deposit in other banks735,0007,058,000(6,323,000)
Investment securities - available for sale26,156,00025,218,000938,0003.7 %
Loans108,267,000137,122,000(28,855,000)-21.0 %
Less allowance for loan losses(4,175,000)(4,350,000)175,000-4.0 %
----------- ------------ -------------
Loans, net104,092,000132,772,000(28,680,000)-21.6 %
Premises and equipment, net537,000837,000(300,000)-35.8 %
SBA-Loan servicing asset/interest only strips217,000389,000(172,000)-44.2 %
Cash surrender value of life insurance3,353,0003,222,000131,0004.1 %
11,440,0006,924,0004,516,000
Other real estate owned
Other assets3,034,0005,981,000(2,947,000)-49.3 %
---------------------------------- -
$ 159,064,000$ 197,762,000($38,698,000)-19.6 %
===== ================ ======================= =
LIABILITIES AND SHAREHOLDERS' EQUITY
Demand deposits$31,138,000$31,423,000($285,000)-0.9 %
Interest bearing deposits105,779,000132,954,000(27,175,000)-20.4 %
Borrowings12,732,00021,732,000(9,000,000)-41.4 %
Other liabilities2,976,0003,446,000(470,000)-13.6 %
---------------------------------- -
Total liabilities152,625,000189,555,000(36,930,000)-19.5 %
Total shareholders' equity6,439,0008,207,000(1,768,000)-21.5 %
---------------------------------- -
$ 159,064,000$ 197,762,000($38,698,000)-19.6 %
===== ================ ======================= =
STATEMENT OF INCOME
-----------------------------------------------------------
3 Mos ended3 Mos ended12 Mos ended12 Mos ended
December 31, 2010December 31, 2009December 31, 2010December 31, 2009
---------------------------------------------------------------------------------
Interest income$1,947,000$2,481,000$8,587,000$11,185,000
Interest expense537,000841,0002,586,0004,536,000
---------------------------------------------
Net interest income1,410,0001,640,0006,001,0006,649,000
Provision for loan losses398,0001,339,0003,308,0008,975,000
---------------------------------------------
Net interest income after provision for loan losses1,012,000301,0002,693,000(2,326,000)
Noninterest income233,000562,0001,080,0002,091,000
Noninterest expense4,182,0003,891,00011,749,00010,567,000
---------------------------------------------
Income before income taxes(2,937,000)(3,028,000)(7,976,000)(10,802,000)
Provision(credit) for income taxes0(963,000)0(963,000)
---------------------- ------------------------ -
Net income(loss)($2,937,000)($2,065,000)($7,976,000)($9,839,000)
=========== ============ ============= ============ =
Average common shares outstanding10,748,3024,497,5027,220,4534,497,502
Net income(loss) per share-basic($0.28)($0.46)($1.11)($2.19)
Return on average assets (annualized)-6.97 %-3.97 %-4.38 %-4.50 %
Return on average equity (annualized)-146.18 %-81.24 %-99.67 %-72.02 %
SELECTED RATIOS
-----------------------------------------------------------
December 31, 2010December 31, 2009
----------------------------------------
Allowance for loan losses as a percent of total loans3.86 %3.17 %
Nonperforming assets as a percent of total assets14.42 %10.41 %
Loan to deposit ratio79.08 %83.41 %
SOURCE: Mission Oaks Bancorp, Inc.
Mission Oaks National Bank
Gary Votapka, President and Chief Executive Officer
(951) 719-1210
or
Keith Johnson, Executive Vice President
(951) 719-1211 |
