TEMECULA, Calif.--(BUSINESS
WIRE)--The board of directors of Mission Oaks Bancorp (OTCBB:MOKB -
News) has approved plans to repurchase up to $1 million of the company's
common stock in the open market effective immediately.
Mission Oaks Bancorp, whose
principal subsidiary is Temecula-based Mission Oaks National Bank, said
the repurchase program will continue for a period of 12 months, subject
to earlier termination at the company's discretion.
The shares would be repurchased
at prevailing market prices from time to time in open market or privately
negotiated transactions. The timing of the purchases and the number
of shares to be repurchased at any given time will depend on market
conditions and SEC regulations.
"We approved a stock
repurchase plan because the directors of Mission Oaks Bancorp believe
our stock is undervalued," said Gary Votapka, Mission Oaks president
and chief executive. "Our board is confident in the ongoing strength
of our bank, the intrinsic value of our stock and our ability to sustain
the momentum we have developed."
Votapka said repurchasing
shares in the open market would have a positive impact on the return
on shareholders' equity and earnings per share and also provide additional
liquidity for the company's common stock.
The repurchase would be funded
from working capital.
Mission Oaks stock price
closed at $10.20 per share on May 29, 2007 in Over-the-Counter Bulletin
Board trading.
Mission Oaks recently reported
earnings of $427,000, or 10 cents a share, in the first three months
of 2007. Assets as of March 31, 2007 reached $193.2 million, up $49
million, or 34 percent, from 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.
For more on Mission Oaks
National Bank visit its Web site at missionoaksbank.com.
Safe Harbor
Certain statements in this
press release, including statements regarding the anticipated development
and expansion of Mission Oaks' business, and the intent, belief or current
expectations of Mission Oaks, 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
and by Mission Oaks with the Federal Reserve Board.
