TEMECULA, Calif.--(BUSINESS
WIRE)--Mission Oaks Bancorp (OTCBB:MOKB - News), whose principal subsidiary
is Temecula-based Mission Oaks National Bank, said it earned $427,000,
or 10 cents a share, in the first three months of 2007.
That compares with $788,000,
or 19 cents a share, posted in the first three months of 2006. Per share
amounts were adjusted to account for a 5 percent stock dividend in January
2007.
Year-ago results were positively
affected by the sale of $4 million in Small Business Administration
and SBA-related loans that resulted a one-time contribution of $587,000
to non-interest income. 2007 results included only $16,000 in gain-on-sale
of loan income.
At the end of the first quarter
of 2007, Mission Oaks had $150.2 million in loans, up 67.8 percent from
$89.5 million a year ago. Loans in the first quarter alone increased
$17 million from the end of 2006.
Because of the dramatic loan
growth in the first quarter of 2007, Mission Oaks set aside $152,000
in loan loss reserves, $80,000 more than it did year ago. Mission Oaks
must set aside such reserves for each loan it books.
"The profit numbers
at first glance don't tell the whole story," said Gary Votapka,
Mission Oaks Bancorp president and chief executive. "Adjusting
for the effects of these extraordinary events, we would have year-on-year
improvement."
That kind of loan growth
portends well for future interest income but it requires up-front reserves
for loan losses," Votapka said.
Deposits at the end of the
first quarter 2007 reached $145.6 million, up $23.7 million, or 19.5
percent, from the same period a year ago.
Assets as of March 31, 2007
reached $193.2 million, up $49 million, or 34 percent, from the same
period a year ago.
In the quarter, net interest
income reached $2.3 million, up from $1.9 million a year earlier.
For the fourth year in a
row, Mission Oaks was named a Super Premier Performing Bank in 2006
by Findley Reports, a banking industry analyst and consulting firm.
Super Premier is the highest
rating a bank can receive from Findley. It is based on growth, income,
loan quality and return on equity, among other criteria. Mission Oaks
was one of 84 financial institutions recognized by Findley in 2006,
down from 93 in 2005.
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.
