Temecula, CA (PRWEB) July 31, 2012
Mission Oaks Bancorp, whose subsidiary is Mission Oaks National Bank, announced unaudited results for the second quarter of 2012.
The Company reported a net loss of $1,357,000, or $0.12 per share, for the quarter that ended June 30, 2012. This compares to a loss of $1,609,000, or $0.14 per share in the prior quarter.
For the first six months of 2012, Mission Oaks Bancorp reported a loss of $2,966,000, or $0.26 per share.
The operating loss for the second quarter was primarily attributable to charge offs associated with problem loans and reductions in the valuations of OREO properties at the subsidiary bank. During the quarter, the bank had net charge offs of $1,007,000 and wrote down the value of its OREO by $507,000.
“We have taken very aggressive actions in 2012 to reduce our problem assets,” said Gary Deems, president and chief executive. “This has required us to recognize some sizeable charge offs, but it also has allowed us to significantly reduce the size of our problem asset portfolio. In the last 12 months, we have reduced our nonperforming assets from $20 million to $10.4 million, a reduction of 48 percent to the lowest level since 2008.”
“Despite these improvements in asset quality, we have kept our Allowance for Loan and Lease Losses (ALLL) at a very conservative level of 4.19 percent of gross loans,” Deems said. “We are confident that this high ALLL and the bank’s current Tier I capital ratio of 7.74 percent will provide the bank with ample resources to deal with our remaining problem assets.”
At the end of the second quarter of 2012, Mission Oaks reported deposits of $107 million, gross loans of $78.8 million, and total assets of $117.9 million. These totals are down 13.7 percent, 16.3 percent and 14.5 percent, respectively, from the end of 2011.
“The decline in size during 2012 is almost entirely the result of the reductions in problem assets,” stated Deems. “We are now in a position to start rebuilding our balance sheet and we hope that loan demand will start to pick up in the markets we serve.”
Mission Oaks Bancorp’s only subsidiary is Mission Oaks National Bank, a federally chartered bank that opened in 2000 and currently operates branches in Temecula and Fallbrook, CA. The bank closed its Lake Elsinore Office on April 19, 2012 and took a one time charge of $440,000 during the first quarter of 2012 as a result of the closure.
Mission Oaks Bancorp’s 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. 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.