Mission Oaks Bancorp Announces 2008 Results
Mission Oaks Bancorp, Inc. [[MOKB.OB]], whose principal subsidiary is Mission Oaks National Bank, reported a net loss of $729,000, or $0.16 per share, for the year ended December 31, 2008. That compares to net earnings of $2.1 million, or $0.48 per share, for the year ended December 31, 2007.
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The earnings decline was primarily attributed to increased provisions to the Company’s allowance for loan losses, which totaled $2.875 million for the year ended December 31, 2008, compared with $432,000 for the year ended December 31, 2007. Also contributing was a $990,000 write-down of foreclosed real estate in 2008, compared to none for 2007.
“In light of the rapidly deteriorating local economy, the company took steps to make sure that we reduced as much of the risk in the Company’s balance sheet as possible,” said Gary Votapka, Mission Oaks president and chief executive. “While this hurt the bottom line in the fourth quarter, it will help prepare the Company for an anticipated difficult 2009.”
In the fourth quarter of 2008, the Company posted a $1.27 million loss, or $0.28 per share, as it added $1.47 million to its reserves to cover future loan losses and made a $990,000 write down in its foreclosed real estate assets. This compares with earnings of $625,000 for the same period in 2008. This is the first quarterly loss for the Company since 2001.
During the year, the Company opened full-service branches in Fallbrook, CA and Lake Elsinore, CA that created some additional non-interest expense but also added deposits.
“It cost the Company $486,000 to get the two branches up and running,” said Keith Johnson, Mission Oaks executive vice president and chief operating officer. “But for that investment we garnered about $12.6 million in deposits, an important contribution to the bank’s overall liquidity.”
The Company had foreclosed real estate of $1.233 million at the end of 2008 compared to none a year ago. As of December 31, 2008, non-accrual loans totaled $10.7 million, representing 6.21 percent of total loans, compared to $245,000 a year ago, which represented 0.15 percent of total loans. All loans delinquent 90 days or more were on a non-accrual basis as of December 31, 2008 and 2007.
The allowance for loan losses totaled $3.1 million as of December 31, 2008, or 1.80 percent of total loans, compared to $2.11 million as of December 31, 2007, or 1.26 percent of total loans. In 2008, the Company had charged off loans totaling $1.885 million. It had none in 2007.
As of December 31, 2008, the Company had total assets of $221.4 million, representing an increase of $9.6 million, or 4.6 percent, over the same period a year earlier.
Total deposits at year-end were $171.3 million, an increase of 3 percent from $166.4 million a year ago. Non-interest bearing demand deposits totaled $31 million at December 31, 2008, representing 18.2 percent of total deposits. That compared with to $29.7 million of non-interest bearing demand deposits at the end of 2007, which represented 17.9 percent of total deposits. The Company’s gross loan portfolio grew to $171.4 million at December 31, 2008, representing a 2.2 percent increase over gross loans of $167.8 million at December 31, 2007.
As of December 31, 2008, the Company remained well capitalized under applicable regulatory guidelines and continues to have no sub-prime residential loans in its portfolio. Total shareholders’ equity at the end of 2008 was $18.8 million, a decrease of $610,000, or 3.1 percent, from $19.395 million at the end of 2007.
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 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.
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