Mission Oaks National Bank Reports Record Results for First Nine Months of 2003


TEMECULA, Calif. Oct. 9, 2003 (PRIMEZONE) -- Mission Oaks National Bank (OTCBB:MKNB) reported record results for the first nine months of 2003 and the 12 months ended Sept. 30 due to strong growth in non-interest income.

The Temecula-based community bank earned $240,000, or 30 cents a share, in the third quarter. That compares with a profit of $82,000, or 11 cents a share, a year ago. In the first nine months of 2003, Mission Oaks earned a record $741,000, or 96 cents a share. During the same period a year ago, the bank earned $56,000, or 7 cents a share. Over the last 12 months the bank has earned a record $1 million, or $1.23 a share.

"We are pleased with our results despite a tough interest rate environment," said Gary Votapka, president and chief executive. "The historically low rates have put pressure on the net interest margin of all banks."

Nine-month results benefited from an increase in non-interest income from the sale of loans, fees and mortgage originations, which grew 169 percent, or $837,000 from the same period a year ago. A particularly strong contributor was the bank's mortgage brokerage operations, which received a boost from a robust housing market and favorable interest rates.

As of Sept. 30 assets reached $80.6 million, up 47.3 percent from the same period a year ago. Total deposits reached $71.5 million, a $23.6 million, or 49.4 percent, increase from a year ago. Loans at the end of the quarter reached $56.2 million, up 47.2 percent from a year ago.

The bank continues to perform well as it completes its third year. During the quarter Mission Oaks received a reaffirmation of its five-star rating from Bauer Financial Inc., the bank rating service's highest rating. The Small Business Administration also expanded the bank's Preferred Lending status to include most of Southern California. The sought-after designation allows Mission Oaks to streamline its SBA loan process.

The bank is making sure it continues to grow. Mission Oaks shareholders have until Nov. 17 to exercise warrants that will allow them to buy additional shares at $10 each. Mission Oaks stock recently traded at $21 a share. Proceeds from the warrants offering are expected to add approximately $1.9 million in new capital to the bank.

Mission Oaks National Bank is an award-winning, community-based, federally chartered bank that is committed to serving consumers and businesses in Southwest Riverside and Northern San Diego counties. The bank offers personalized services and products through two full-service branch offices and loan production offices in San Diego and Phoenix.

For more on Mission Oaks National Bank visit its Web site at missionoaksbank.com.

Safe Harbor

Certain matters discussed in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to the company's current expectations regarding future operating results and growth in loans, deposits, and assets. These forward looking statements are subject to certain risks and uncertainties that could cause the actual results, performance or achievements to differ materially from those expressed, suggested or implied by the forward looking statements.

These risks and uncertainties include, but are not limited to: (1) the impact of changes in interest rates, a decline in economic conditions and increased competition among financial service providers on the company's results of operation, (2) the company's ability to continue its internal growth rate, (3) the company's ability to build net interest spread, (4) the quality of the company's earning assets, and (5) government regulations.



 THIRD QUARTER REPORT / SEPTEMBER 30, 2003
 ---------------------------------------------------------------------
 BALANCE SHEET
 ---------------------------------------------------------------------

 (all amounts in whole dollars except share and per share 
  information)
               September 30,   September 30,   Increase    Increase
                   2003            2002       (Decrease)  (Decrease)
              --------------  --------------  ----------   ---------

 ASSETS

 Cash and due
  from banks    $ 2,932,000   $ 1,914,000   $ 1,018,000     53.2%
 Due from
  banks -- time     496,000             0       496,000        0
 Federal funds
  sold            1,385,000     8,185,000    (6,800,000)   -83.1%
 Securities --
  available for
  sale           17,563,000     5,042,000    12,521,000    248.3%
 Securities --
  held to
  maturity                0             0             0

 Loans           56,931,000    38,645,000    18,286,000     47.3%
 Less allowance
  for loan losses  (715,000)     (450,000)     (265,000)    58.9%
                 ------------- ------------  ------------
 Loans, net      56,216,000    38,195,000    18,021,000     47.2%

 Premises and
  equipment, net    624,000       765,000      (141,000)   -18.4%
 Federal Reserve
  Bank and other
  bank stocks       359,000       263,000        96,000     36.5%
 Deferred tax
  asset             290,000        19,000       271,000   1426.3%
 Accrued interest
  and other
  assets            756,000       349,000       407,000    116.6%
                ------------  ------------  ------------
                $80,621,000   $54,732,000   $25,889,000     47.3%
                ============= ============  ============

 LIABILIITIES AND STOCKHOLDERS' EQUITY

 Demand 
  deposits      $20,056,000   $12,465,000   $ 7,591,000     60.9%
 Interest bearing
  deposits       51,434,000    35,389,000    16,045,000     45.3%
 Federal funds
  purchased and
  other borrowings        0             0             0
 Other liabilities  729,000       341,000       388,000    113.8%
                 -------------  -------------  -----------
  Total
  liabilities    72,219,000    48,195,000    24,024,000     49.8%

 Total
  stockholders'
  equity          8,402,000     6,537,000     1,865,000     28.5%
                 ------------- ------------  ------------
                $80,621,000   $54,732,000   $25,889,000     47.3%
                 ============= ============  ============

 -----------------------------------------------------------------
 STATEMENT OF OPERATIONS
 -----------------------------------------------------------------

                  3 Mos         3 Mos         9 Mos         9 Mos
                  ended         ended         ended         ended
              September 30, September 30, September 30, September 30,
                  2003          2002          2003          2002
               ------------------------------------------------------
 Interest
  income       $ 1,075,000     $   702,000   $ 2,998,000  $ 1,835,000
 Interest
  expense          210,000         156,000       645,000      414,000
                ------------------------------------------------------
 Net interest
  income           865,000         546,000     2,353,000    1,421,000
 Provision for
  loan losses       75,000          95,000       220,000      160,000
                -----------------------------------------------------
 Net interest
  income after
  provision for
  loan losses      790,000         451,000     2,133,000    1,261,000
 Other income      543,000         276,000     1,331,000      494,000
 Other expense     925,000         645,000     2,567,000    1,699,000
                 -----------------------------------------------------
 Earnings (loss)
  before income
  taxes            408,000          82,000       897,000       56,000
 Income taxes
 (benefit)         168,000               0       156,000            0
                 -----------------------------------------------------
  Net earnings
  (loss)        $   240,000    $    82,000   $   741,000  $    56,000

               ======================================================


 Average common
  shares
  outstanding       795,270         763,471       774,071     762,955

 Basic earnings
  per share     $      0.30     $      0.11   $      0.96  $     0.07
 Return on
  average assets
  (annualized)         1.17%           0.68%         1.38%       0.17%
 Return on average
  equity
  (annualized)        11.53%           5.02%        13.67%       1.16%

 ---------------------------------------------------------------------
 SELECTED RATIOS
 ---------------------------------------------------------------------
                    September 30,   September 30,
                       2003             2002
                  --------------   --------------
 Leveraged             10.70%           13.53%
 Total risk
  based capital
  ratio                16.01%           16.91%
 Allowance for
  loan losses
  as a percent
  of total loan         1.25%            1.16%
 Nonperforming
  assets as a
  percent of
  total assets          0.18%            0.00%
 Loan to deposit
  ratio                80.17%           80.76%


            

Mot-clé


Coordonnées