TEMECULA, Calif., April 11,
2006 (PRIMEZONE) -- Mission Oaks Bancorp (OTCBB:MOKB) reported earnings
increased 88 percent in the first quarter of 2006 to record levels.
Mission Oaks Bancorp, whose
principal subsidiary is Temecula-based Mission Oaks National Bank, said
it earned a record $788,000, or 20 cents a share, in the first three
months of 2006, up from $419,000, or 11 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.
Results included the sale
of $4 million in Small Business Administration and SBA-related loans
that contributed $587,000 to non-interest income. The sale included
$3 million of the unguaranteed portion of SBA 7(a) loans.
"We started 2006 on
a very positive note," said Gary Votapka, Mission Oaks Bancorp
president and chief executive. "Not only did we realize a gain
on sale from the SBA loans, but reduced the risk in our loan portfolio."
Assets as of March 31, 2006
reached $144.2 million, up $22.7 million, or 18.7 percent from the same
period a year ago.
Last 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.
In the quarter, interest
income reached $2.4 million, up from $1.8 million a year earlier. Following
the loan sale, net loans finished the quarter at $88.25 million, virtually
unchanged from a year ago. Total deposits increased by $17.3 million,
or 16.5 percent, to $121.8 million.
Annualized return on average
assets (ROA), a ratio of profit to assets, reached 2.20 percent at quarter's
end. A year ago, it stood at 1.42 percent. Annualized return on average
shareholders' equity (ROE), a ratio of profit to equity, was 22.56 percent
for the three months ended March 31, 2006, up from 14.53 percent a year
earlier.
More than 750 similarly sized
U.S. banks reported an average ROA and ROE of 1.13 percent and 12.07
percent, respectively, according to a Federal Deposit Insurance Corp.
survey as of December 31, 2005.
For the third year in a row,
Mission Oaks was named a Super Premier Performing Bank in 2005 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 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.
