TEMECULA, Calif.--()--Mission Oaks Bancorp, Inc. (OTCBB:MOKB), whose principal subsidiary is Mission Oaks National Bank, reported a net loss of $9,839,000, or $2.18 per share, for the year ended December 31, 2009. That compares to a net loss of $1,740,000, or $0.38 per share, for the year ended December 31, 2008.
“The local banking scene has changed a lot with the demise of Temecula Valley Bank, 1st Centennial Bank and others. Mission Oaks will come out the other side of this crisis as one of the few community banks serving its local communities.”
The losses were primarily attributed to significantly increased provisions to the Company’s allowance for loan losses, which totaled $8,975,000 for the year ended December 31, 2009, compared with $4,593,000 for the year ended December 31, 2008. Also contributing to the loss was $1,968,000 in write-downs of foreclosed real estate in 2009, compared to OREO write-downs totaling $980,000 for 2008.
“2009 was clearly a difficult year for Mission Oaks National Bank, as it was for the rest of the nation’s banking industry,” said Gary Votapka, Mission Oaks president and chief executive. “The Inland Empire’s economic difficulties that began to accelerate in 2008 have hit our customers hard and continue to negatively affect nearly every local business I know of. Our results are a reflection of these local and national conditions.”
In the fourth quarter of 2009, the Company posted a $2,065,000 loss, or $0.46 per share, as it added $1.34 million to its reserves to cover future loan losses and made a $1,728,000 write down in its foreclosed real estate assets. This compares with a net loss of $2,283,000 for the same period in 2009.
The Company had foreclosed real estate of $6,943,000 at the end of 2009 compared to $1,233,000 a year ago. As of December 31, 2009, non-accrual loans totaled $13,655,000, representing 9.9 percent of total loans, compared to $8,992,000 a year ago, which represented 5.3 percent of total loans. All loans delinquent 90 days or more were on a non-accrual basis as of December 31, 2009 and 2008.
The allowance for loan losses totaled $4.35 million as of December 31, 2009, or 3.15 percent of total loans, compared to $3.10 million as of December 31, 2008, or 1.80 percent of total loans. In 2009, the Company charged off loans totaling $7,725,000 million compared to $3,603,000 in 2008, as collateral values of mainly underlying real estate dropped.
As of December 31, 2009, the Company had total assets of $197.8 million, representing a decrease of $22.6 million, or 10.3 percent, over the same period a year earlier. Total deposits at yearend were $164.4 million, a decrease of 4 percent from $171.3 million a year ago. Non-interest bearing demand deposits totaled $31.4 million at December 31, 2009, representing 19.1 percent of total deposits. That compared with $31.2 million of non-interest bearing demand deposits at the end of 2008, which represented 18.2 percent of total deposits. The Company’s gross loan portfolio declined to $137.1 million at December 31, 2009, representing a 19.2 percent decrease over gross loans of $169.7 million at December 31, 2008.
The Company announced that it is in the process of raising $5 to $7 million in new capital under a private placement offering to qualified investors. This fresh capital will boost capital ratios back to pre-recession levels, support renewed lending and allow for growth within the Company as it seeks to accommodate displaced banking customers from local bank closures.
“With the perception that the economy is slowly moving toward better days, it provides the opportunity for us to replenish our capital reserves to levels needed to heal the bank and get us back in the game,” commented Votapka. “The local banking scene has changed a lot with the demise of Temecula Valley Bank, 1st Centennial Bank and others. Mission Oaks will come out the other side of this crisis as one of the few community banks serving its local communities.”
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 five full-service branch offices in Temecula, Lake Elsinore, Fallbrook and Ontario.
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.
| MISSION OAKS BANCORP | |||||||||||||||||||||||||
| FOURTH QUARTER REPORT / DECEMBER 31, 2009 | |||||||||||||||||||||||||
| BALANCE SHEET | |||||||||||||||||||||||||
| (all amounts in whole dollars except share and per share information) | |||||||||||||||||||||||||
| Increase | Increase | ||||||||||||||||||||||||
| December 31, 2009 | December 31, 2008 | (Decrease) | (Decrease) | ||||||||||||||||||||||
| ASSETS | |||||||||||||||||||||||||
| Cash and due from banks | $ | 15,361,000 | $ | 2,236,000 | $ | 13,125,000 | 587.0 | % | |||||||||||||||||
| Certificates of deposit in other banks | 7,058,000 | 1,000,000 | 6,058,000 | ||||||||||||||||||||||
| Federal funds sold | 0 | 3,705,000 | (3,705,000 | ) | -100.0 | % | |||||||||||||||||||
| Investment securities - available for sale | 25,218,000 | 33,942,000 | (8,724,000 | ) | -25.7 | % | |||||||||||||||||||
| Loans | 137,122,000 | 169,709,000 | (32,587,000 | ) | -19.2 | % | |||||||||||||||||||
| Less allowance for loan losses | (4,350,000 | ) | (3,100,000 | ) | (1,250,000 | ) | 40.3 | % | |||||||||||||||||
| Loans, net | 132,772,000 | 166,609,000 | (33,837,000 | ) | -20.3 | % | |||||||||||||||||||
| Premises and equipment, net | 837,000 | 1,004,000 | (167,000 | ) | -16.6 | % | |||||||||||||||||||
| SBA-Loan servicing asset/interest only strips | 389,000 | 498,000 | (109,000 | ) | -21.9 | % | |||||||||||||||||||
| Cash surrender value of life insurance | 3,222,000 | 3,090,000 | 132,000 | 4.3 | % | ||||||||||||||||||||
|
Other real estate owned |
6,924,000 | 1,233,000 | 5,691,000 | ||||||||||||||||||||||
| Other assets | 5,981,000 | 7,046,000 | (1,065,000 | ) | -15.1 | % | |||||||||||||||||||
| $ | 197,762,000 | $ | 220,363,000 | ($22,601,000 | ) | -10.3 | % | ||||||||||||||||||
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||||||||||||||||||||||
| Demand deposits | $ | 31,423,000 | $ | 31,235,000 | $ | 188,000 | 0.6 | % | |||||||||||||||||
| Interest bearing deposits | 132,954,000 | 140,098,000 | (7,144,000 | ) | -5.1 | % | |||||||||||||||||||
| Borrowings | 21,732,000 | 29,732,000 | (8,000,000 | ) | -26.9 | % | |||||||||||||||||||
| Other liabilities | 3,446,000 | 1,524,000 | 1,922,000 | 126.1 | % | ||||||||||||||||||||
| Total liabilities | 189,555,000 | 202,589,000 | (13,034,000 | ) | -6.4 | % | |||||||||||||||||||
| Total shareholders' equity | 8,207,000 | 17,774,000 | (9,567,000 | ) | -53.8 | % | |||||||||||||||||||
| $ | 197,762,000 | $ | 220,363,000 | ($22,601,000 | ) | -10.3 | % | ||||||||||||||||||
| STATEMENT OF INCOME | |||||||||||||||||||||||||
| 3 Mos ended | 3 Mos ended | 12 Mos ended | 12 Mos ended | ||||||||||||||||||||||
| December 31, 2009 | December 31, 2008 | December 31, 2009 | December 31, 2008 | ||||||||||||||||||||||
| Interest income | $ | 2,481,000 | $ | 3,349,000 | $ | 11,185,000 | $ | 14,226,000 | |||||||||||||||||
| Interest expense | 841,000 | 1,394,000 | 4,536,000 | 5,861,000 | |||||||||||||||||||||
| Net interest income | 1,640,000 | 1,955,000 | 6,649,000 | 8,365,000 | |||||||||||||||||||||
| Provision for loan losses | 1,339,000 | 3,184,000 | 8,975,000 | 4,593,000 | |||||||||||||||||||||
| Net interest income after provision for loan losses | 301,000 | (1,229,000 | ) | (2,326,000 | ) | 3,772,000 | |||||||||||||||||||
| Noninterest income | 562,000 | 330,000 | 2,091,000 | 1,972,000 | |||||||||||||||||||||
| Noninterest expense | 3,891,000 | 3,013,000 | 10,567,000 | 8,826,000 | |||||||||||||||||||||
| Income before income taxes | (3,028,000 | ) | (3,912,000 | ) | (10,802,000 | ) | (3,082,000 | ) | |||||||||||||||||
| Provision(credit) for income taxes | (963,000 | ) | (1,629,000 | ) | (963,000 | ) | (1,342,000 | ) | |||||||||||||||||
| Net income(loss) | ($2,065,000 | ) | ($2,283,000 | ) | ($9,839,000 | ) | ($1,740,000 | ) | |||||||||||||||||
| Average common shares outstanding | 4,497,502 | 4,466,971 | 4,497,502 | 4,466,707 | |||||||||||||||||||||
|
Net income(loss) per share-basic |
($0.46 | ) | ($0.51 | ) | ($2.18 | ) | ($0.38 | ) | |||||||||||||||||
| Return on average assets (annualized) | -3.97 | % | -4.02 | % | -4.50 | % | -0.78 | % | |||||||||||||||||
| Return on average equity (annualized) | -81.24 | % | -46.64 | % | -72.02 | % | -8.89 | % | |||||||||||||||||
| SELECTED RATIOS | |||||||||||||||||||||||||
| December 31, 2009 | December 31, 2008 | ||||||||||||||||||||||||
| Allowance for loan losses as a percent of total loans | 3.17 | % | 1.82 | % | |||||||||||||||||||||
| Nonperforming assets as a percent of total assets | 10.41 | % | 4.64 | % | |||||||||||||||||||||
| Loan to deposit ratio | 83.41 | % | 99.05 | % | |||||||||||||||||||||
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