Temecula, CA (PRWEB) April 20, 2012
Mission Oaks Bancorp, whose subsidiary is Mission Oaks National Bank, announced unaudited results for the first quarter of 2012.
The Company reported a net loss of $1,609,000, or $0.14 per share, for the first three months of 2012. This was up from the $993,000 that the Company lost in the final quarter of 2011.
The losses were primarily the result of continued charge offs of loans originated prior to the start of the recession. During the quarter, the Company had net charge offs of $1,103,000, up from $851,000 in the prior quarter. The Company also took a one-time charge of $440,000 during the most recent quarter in connection with the closure of the Lake Elsinore branch this month.
During the quarter the Company has made significant progress in reducing the size of its problem assets. Other Real Estate Owned (OREO) was $2.8 million as of March 31, down 75.6 percent from its high of $11.5 million at the end of 2010. Non –accruing loans were $10.7 million at quarter end, their lowest total since mid-2009. Classified assets at March 31 stood at $23,122,000, a decline of 16.8 percent in the last three months, and a drop of 32 percent from a year ago.
The Company also continued to shrink. As of March 31, 2012 deposits were $120,330,000, gross loans were $89,010,000 and total assets were $133,030,000. These totals reflected declines of $3.6 million, $5.1 million, and $4.9 million, respectively, compared to year end 2011.
“Most of the shrinkage was deliberate and beneficial to the Company,” said Gary Deems, president and chief executive. “On the loan side, approximately 90 percent of the $5.1 million drop was the result of problem loan resolutions. On the deposit side, we elected to pay off $2.6 million in brokered certificate of deposits early. The other $1 million deposit drop was in the high-cost CD category.”
The Company’s allowance for loan and lease losses (ALLL) stood at 4.01 percent as of March 31, 2012 compared to 4.25 percent at the end of the prior quarter.
“Our highest priorities are to continue to reduce our problem assets and to lower our operating expenses,” said Deems. “We have made good progress in recent months and expect to show further improvement in the months ahead.”
Mission Oaks Bancorp’s only subsidiary is Mission Oaks National Bank, a federally chartered community bank that currently operates branches in Temecula and Fallbrook, CA. The bank closed its Lake Elsinore branch on April 19, 2012.
Mission Oaks Bancorp common stock is traded over the counter under the stock symbol MOKB.OB.
Forward Looking Statements: This press release may contain statements concerning future performance, developments or events concerning expectations for growth and market forecasts, and other guidance on future periods that constitute forward looking statements that are subject to a number of risks and uncertainties. Actual results may differ materially from stated expectations. Specific factors include, but are not limited to, the effect of interest rate changes, the ability to control costs and expenses, financial policies of the United States government, and general economic conditions.