This article was originally distributed via PRWeb. PRWeb, WorldNow and this Site make no warranties or representations in connection therewith.
Selected highlights for the quarter ended December 31, 2012: - Mission Oaks earned $23,000 for the fourth quarter, the first profitable quarter since 2008 - Recoveries exceeded loan charge offs for the second consecutive quarter - Nonperforming assets fell to the lowest total since 2007 - Other Real Estate Owned (OREO) was reduced to one property valued at $130,500
Temecula, CA (PRWEB) January 17, 2013
Selected highlights for the year ended December 31, 2012:
Mission Oaks Bancorp, whose subsidiary is Mission Oaks National Bank (MONB), announced unaudited results for the fourth quarter and full year of 2012.
The Company reported a net profit of $23,000, or $0.002 per share, for the quarter that ended December 31, 2012. This compares to a loss of $993,000, or $0.09 per share, in the same quarter of the previous year. This was the company’s first profitable quarter since 2008.
For the full year of 2012, Mission Oaks Bancorp reported a loss of $3,672,000, or $0.32 per share. During the previous year, MONB reported a loss of $3.4 million, or $0.30 per share.
As in recent years, the company’s annual losses were largely due to sizeable contributions to the Allowance for Loan Losses and significant OREO related expenses. In 2012 the company reported net charged off loans of $1.94 million, a loan loss provision of $1.39 million, and OREO related expenses of $1.1 million. In the prior year, net charge off were $2.6 million, the provision was $2.4 million and OREO related expenses were $1.6 million. In 2012 the company also took a one-time $416,000 charge related to the closure of the Lake Elsinore branch.
Although losses in 2012 were higher than the previous year, the company reported much stronger results in the second half, particularly in the fourth quarter.
As a result of sizeable reductions in problem assets, the company had gross charge offs of only $42,000 in the final quarter of 2012, down from $968,000 in the fourth quarter of 2011. Loan loss recoveries actually exceeded charge offs, which allowed the company to take a negative provision of $111,000 in the final quarter of 2012 as compared to a provision of $810,000 in the same quarter in 2011.
The company also reported a drop in OREO related expenses. During the last three months of 2012, the company had OREO related expenses of only $97,000 down from a quarterly average of $344,000 in each of the first three quarters of the year.
“We made very strong progress in reducing the size of our problem asset portfolio during 2012, and this led to a reduction in loan losses and OREO expenses,” said Gary Deems, Mission Oaks president and chief executive. “Since the end of 2011, non-accruing loans have dropped from $11.5 million to $4.94 million, and OREO declined from $3.6 million to $131,000.”
Even with the negative provision, the company has continued to increase its Allowance for Loan Losses (ALLL) even as the percentage of problem loans has decreased. The ALLL stood at 4.25 percent of gross loans at the end of 2011 but rose to 4.53 percent by the end of 2012.
The bank also has steadily improved its net interest spread, which went from an average of 3.93 percent in 2011 to 4.13 percent in 2012. This increase reflects reductions in non-accruing assets and their replacement with interest-earning loans as well as improvements in the cost of funds.
At the end of 2012, Mission Oaks reported deposits of $92.7 million, gross loans of $76.2 million, and total assets of $103 million. These totals are down 25.2 percent, 19.1 percent and 25.3 percent, respectively, from the end of 2011.
“The decline in size during 2012 is largely the result of the reductions in problem loans and OREO as well as a desire to preserve our capital ratios” Deems said.
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.
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.
Gary W. Deems
For the original version on PRWeb visit: http://www.prweb.com/releases/prweb2013/1/prweb10326761.htm