Temecula, CA (PRWEB) May 05, 2011
Mission Oaks Bancorp, Inc. (OTC BB: MOKB.OB - News), whose principal subsidiary is Mission Oaks National Bank, announced that its net loss for the first quarter of 2011 was $1,165,000, compared with a net loss of $664,000 for the first quarter of 2010.
The increase in the loss primarily reflected an increase in the provisions for loan losses set aside for potential losses in its loan portfolio. The company provisioned $930,000 in the first quarter of 2011 compared with $236,000 in the first quarter of 2010.
“2011 continues to be a period of weakness for our local economy,” said Gary Votapka, Mission Oaks president and chief executive. “In the last half of 2010 and continuing into 2011, in certain situations we’ve seen only modest improvement. We’ve had some success in selling repossessed real estate but at discounts. We anticipate resolution of problem assets will pick-up momentum with an improving economy.”
As of March 31, 2011, the company had total assets of $155.5 million, down $31.4 million, or 16.8 percent, below what was reported a year ago. Total deposits in the first quarter were $139.3 million, an 11.1 percent decline from the same period a year earlier.
“We made a conscience decision to shrink the bank over the last three years, to maintain adequate capital ratios,” said Votapka. “We’ve used this time to focus on reducing overhead, resolving problem assets and raising capital.”
The company was able to raise $7 million in new capital in July 2010.
Non-interest bearing demand deposits at the end of the first quarter totaled $29.3 million, representing 21 percent of total deposits. A year ago the bank had $31.6 million in non-interest bearing demand deposits, or 20.2 percent of total deposits. The company’s gross loan portfolio declined to $107.3 million in the first quarter, a decrease of 18.5 percent from the same period a year ago.
The company had foreclosed real estate of $6.1 million as of March 31, 2011. A year ago it had $8.1 million. At the end of 2010 the company had $11.4 million. In the first quarter the company sold five properties for $6.4 million while taking back two more for $1.1 million. The allowance for loan losses totaled $4.5 million at the end of March 2011, or 4.19 percent of total loans. That compares with a $4.3 million allowance for loan losses a year ago. In the first three months of 2011, the company had net charged off loans valued at $606,000 compared to $426,000 for the similar period in 2010.
“That is a decent improvement in our loan losses,” commented Keith Johnson, Mission Oaks executive vice president and chief operating officer. “We believe that the worst is behind us and we’re seeing trends going in the right direction.”
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, Lake Elsinore and Fallbrook.
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.
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 National Bank
Gary Votapka, president and chief executive officer
Keith Johnson, executive vice president
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