TEMECULA, Calif.,
-- Mission Oaks National Bank (OTCBB:MKNB) will ask its shareholders
to approve a two-for-one split of its common stock at the same time
they vote on plans to create a bank holding company.
The stock split
and proposal to establish a bank holding company were approved by the
bank's board of directors. Shareholders will have an opportunity to
vote on both measures at Mission Oaks' annual shareholders meeting,
which will be held July 14.
The stock split
requires the approval of two-thirds of Mission Oaks' approximately 425
shareholders. Shareholders of record as of August 1, 2005, would be
eligible to receive the stock split.
"Mission Oaks
just announced record earnings in the first quarter of 2005," said
Robert Knogge, chairman. "The stock split enhances shareholder
value by doubling the number of outstanding shares and improving their
availability."
Mission Oaks had
previously declared a two-for-one stock split in April 2004.
Once shareholders
approve the split and bank holding company, Mission Oaks shareholders
would receive two shares of the new bank holding company -- most likely
to be named Mission Oaks Bancorp -- 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 after the split and approval of the
bank holding company.
Following the approval,
Mission Oaks would become the wholly owned subsidiary of the new holding
company. The board of directors believes that the new corporate structure
will provide additional growth opportunities and greater financial flexibility
for Mission Oaks.
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.
Mission Oaks National
Bank is an award-winning, community-based, federally chartered bank
with assets of more than $120 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 this summer.
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.
