TEMECULA, Calif., July 12,
2006 (PRIMEZONE) -- Mission Oaks Bancorp (OTCBB:MOKB) reported record
earnings and asset growth in the second quarter ended June 30 and for
the first six months of 2006.
Mission Oaks Bancorp, whose
principal subsidiary is Temecula-based Mission Oaks National Bank, said
it earned $475,000, or 12 cents a share, in the second quarter of 2006,
up from $410,000, 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.
"We continue to experience
strong demand for loans and our personalized services," said Gary
Votapka, Mission Oaks Bancorp president and chief executive. "Adding
loan officers at branches in Temecula and our Business Center in Ontario
and increased lending limits contributed to the positive results."
In the first six months of
2006, Mission Oaks earned a record $1.3 million, or 32 cents a share,
compared with $830,000, or 22 cents a share, in the same period a year
earlier.
Assets as of June 30, 2006
reached $158.7 million, up $25.3 million, or 19 percent, from the same
period a year ago.
In the quarter, interest
income reached $2.6 million, up from $2 million a year earlier. Net
loans finished the quarter at $103.4, up $16.5, or 19 percent, from
the same period a year ago.
Total deposits increased
by $4.5 million, or 3.9 percent, to $120.3 million in the first six
months of 2006.
In the first half of 2006,
annualized return on average assets (ROA), a ratio of profit to assets,
reached 1.74 percent. A year ago, it stood at 1.37 percent. Annualized
return on average shareholders' equity (ROE), a ratio of profit to equity,
was 17.23 percent for the six months ended June 30, 2006, up from 13.99
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.
In the second quarter, Mission
Oaks Bancorp completed a private issuance of $7.5 million in trust preferred
securities. Net proceeds from the transaction will be used for general
corporate purposes, including support for continued growth of the bank.
The additional capital increases
Mission Oaks' lending limit to $3.4 million and ensures it remains a
well-capitalized institution as assets grow beyond $150 million.
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.
