TEMECULA, Calif.,
July 15, 2005 (PRIMEZONE) -- More than two-thirds of the shareholders
of Mission Oaks National Bank (OTCBB:MKNB) have approved a proposal
to create Mission Oaks Bancorp, a bank holding company.
Stockholders of
the Temecula-based community bank also approved the election of 11 directors
and a revised stock option plan at an annual shareholders meeting.
Once the bank holding
company is approved by regulators, Mission Oaks would become the wholly
owned subsidiary of Mission Oaks Bancorp.
The bank holding
company structure makes it easier for the firm to raise additional capital,
repurchase its own stock, borrow money, acquire other banks and non-bank
entities and issue stock.
"After we receive
regulatory approval, Mission Oaks will let shareholders know when the
merger will occur," said Gary Votapka, Mission Oaks president and
chief executive. "The merger of the bank holding company and the
bank also will trigger a 2-for-1 stock split."
Following the split,
Mission Oaks shareholders will be eligible to receive two shares of
the new bank holding company for each Mission Oaks National Bank share
they currently own. For example, a shareholder with 1,000 Mission Oaks
National Bank shares prior to the split would receive 2,000 shares in
the new bank holding company.
Mission Oaks National
Bank is an award-winning, community-based, federally chartered bank
with assets of more than $130 million that is committed to serving consumers
and businesses in Southern California. The bank offers personalized
services and products through two full-service branch offices and loan
production offices in San Diego County and Phoenix. Mission Oaks plans
to open a third branch in Ontario next month.
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.
