TEMECULA, Calif., Jan. 20,
2006 (PRIMEZONE) -- Mission Oaks Bancorp (OTCBB:MOKB), which has offered
personalized banking services to customers in Inland Southern California
since 2000, reported record results in 2005 as assets surpassed the
$150 million mark.
Mission Oaks Bancorp, whose
principal subsidiary is Temecula-based Mission Oaks National Bank, said
it earned a record $2 million, or 52 cents a share, in 2005, up from
the $1.6 million, or 42 cents a share, posted a year earlier. Per share
amounts were adjusted to account for a two-for-one stock split that
was effective Sept. 1, 2005.
Assets at year-end reached
an all-time high of $151.2 million, an increase of $35.5 million, or
30.7 percent, from a year ago.
"Overall it was a very
gratifying year for us," said Gary Votapka, Mission Oaks Bancorp
president and chief executive. "Not only did we post record earnings,
but did it while we added a third branch, formed a bank holding company
and paid out a 2-for-1 stock split to our shareholders."
The banks efficiency ratio
- a comparison of operating expenses and income - fell to 60 percent
at year-end. The ratio measures how efficiently the bank manages expenses
and enhances profitability. The lower the number, the greater the efficiency.
A year earlier Mission Oak's efficiency ratio stood at 62 percent.
During the year Mission Oaks
National Bank became a wholly owned subsidiary of Mission Oaks Bancorp.
The bank holding company structure makes it easier for Mission Oaks
to raise additional capital, repurchase its own stock, borrow money,
acquire other banks and non-bank entities and issue stock.
For the year, interest income
reached a record $8.4 million, up from $5.7 million a year earlier.
Net loans increased nearly $10 million, or 12.1 percent, to a record
$91.9 million. Total deposits increased by $36.4 million, or 37.86 percent,
to a record $132.5 million.
Annualized return on average
assets (ROA), a ratio of profit to assets, reached 1.51 percent at yearend.
Annualized return on average shareholders' equity (ROE), a ratio of
profit to equity, was 16.21 percent for the 12 months ended Dec. 31,
2005, up from 15.37 percent a year earlier.
More than 750 similarly sized
U.S. banks reported an average ROA and ROE of 1.14 percent and 12.23
percent, respectively, according to a Federal Deposit Insurance Corp.
survey as of September 30, 2005.
In the fourth quarter of
2005, Mission Oaks Bancorp earned $637,000, or 16 cents a share, compared
with earnings of $589,000, or 15 cents a share, reported in the same
period a year ago.
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
and Ontario and loan production offices in San Diego and Phoenix.
Mission Oaks Bancorp common
stock is traded over the counter under the stock symbol MOKB.OB.
Safe Harbor
Certain statements in this
press release, including statements regarding the anticipated development
and expansion of the Bank's business, and the intent, belief or current
expectations of the Bank, 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.
