Mission Community Bancorp Reports Results for Second Quarter, 2012

SAN LUIS OBISPO, Calif., Aug. 13, 2012 /PRNewswire/ -- Mission Community Bancorp, "Bancorp" (OTCQB: MISS), parent company of Mission Community Bank, "Bank", announced second quarter 2012 financial results.  Net income was $522,000 for the second quarter of 2012, with diluted earnings per share of $0.04, and the net loss for the first half of 2012 was ($309,000), with diluted loss per share of ($0.08).

At June 30, 2012, total assets were $459.0 million, compared to $457.8 million at March 31, 2012.  As of the end of the second quarter of 2012, loans outstanding were $223.6 million, compared to $226.0 million at March 31, 2012, and deposits totaled $408.6 million, compared to $405.3 million at March 31, 2012.  Shareholders' equity at June 30, 2012 was $34.9 million.  Book value per share was $4.44 at June 30, 2012.

"Streamlined operations and effective management of the loan portfolio were key factors for a return to profitability for our bank," said Tom L. Dobyns, Chief Executive Officer of Mission Community Bank.  "The acquisition of Santa Lucia Bank late last year, operationally integrated in the first quarter this year, allowed us to double in size, expand our market presence, consolidate some branch locations and achieve substantial cost savings in the process."

Financial Highlights – Consolidated (unaudited)



For the Three Months Ended


June 30, 2012            



Net income 

$522,000



Net income attributable to common stock 

$349,000



Diluted earnings per share 

$0.04



Net interest margin 

4.50%



Cost of funds 

0.33%



Return on average assets (annualized) 

0.46%






For the Six Months Ended


June 30, 2012



Net income (loss) 

($309,000)



Net income (loss) attributable to common stock 

($657,000)



Financial Highlights – Consolidated (unaudited)





For the Six Months Ended


June 30, 2012            



Diluted loss per share 

($0.08)



Net interest margin 

4.41%



Cost of funds 

0.36%



Loss on average assets (annualized) 

(0.14%)

 


At the Period Ending 


June 30, 2012 

March 31, 2012




Book value per share 

$4.44

$4.28




Allowance for credit losses to total loans 

1.69%

1.58%

and leases, net of unearned income






Allowance for credit losses to total 

51.5%

42.2%

non-performing loans and leases 






Equity to assets ratios:



   Consolidated Bancorp 

7.60%

7.40%

   Bank 

8.94%

8.63%




Capital Ratios:



   Consolidated Bancorp



      Tier 1 Leverage Ratio 

9.18%

8.63%

      Tier 1 Risk-based Capital Ratio 

14.68%

14.31%

      Total Risk-based Capital Ratio 

15.93%

15.56%




Bank



      Tier 1 Leverage Ratio 

7.97%

7.56%

      Tier 1 Risk-based Capital Ratio 

12.82%

12.66%

      Total Risk-based Capital Ratio 

14.08%

13.92%

 

Earnings

Net interest income in the second quarter of 2012 totaled $4.7 million, an increase of 3.7% from the first quarter.  The net interest margin was 4.50% in the second quarter, compared to 4.33% in the first quarter of 2012. 

Non-interest income in the second quarter of 2012 totaled $1,064,000, compared to $38,000 in the first quarter.  Second quarter non-interest expense totaled $5,049,000, down from $5,209,000 in the first quarter of 2012. 

Loans

Gross loans totaled $223.6 million at June 30, 2012 and $226.0 million at March 31, 2012.   Non-performing loans totaled $7.3 million or 3.28% of the Bank's loan portfolio in the second quarter, compared to $8.4 million or 3.74% in the first quarter of 2012. 

Net charge-offs in the second quarter of 2012 totaled $6,000, compared to a net recovery of $11,000 in the first quarter.  The provision for loan losses totaled $225,000 in the second quarter, equal to the first quarter's $225,000.  The allowance for loan losses of $3.8 million totaled 1.69% of loans at June 30, 2012, compared to $3.6 million and 1.58% of loans at March 31, 2012.

Deposits

Deposits totaled $408.6 million in the second quarter of 2012, compared to $405.3 million in the first quarter.  Non-interest bearing deposits comprised 30.8% of total deposits at June 30, 2012, up from 28.0% at March 31, 2012.

"The Bank's overall cost of funds was 0.26% for the second quarter, which reflects our active management of deposit costs, and a significant portion of the Bank's deposits being non-interest bearing," said Mark R. Ruh, Chief Financial Officer.

About Mission Community Bancorp and Bank

Mission Community Bancorp is a bank holding company for Mission Community Bank and Mission Asset Management, Inc. Mission Community Bank is a locally operated community bank which first opened its doors in 1997. There are full-service Mission Community Bank offices in San Luis Obispo, Atascadero, Santa Maria, Paso Robles and Arroyo Grande, and a loan production office in Oxnard. The bank's administrative headquarters and Small Business Banking Center are located in San Luis Obispo at 3380 South Higuera Street.  For more information, visit www.MissionCommunityBank.com  

Forward-Looking Statements

Certain matters discussed in this release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to uncertain future events and economic conditions. These forward-looking statements are subject to certain risks and uncertainties that could cause the actual results, performance or achievements to differ materially from those expressed, suggested or implied by the forward-looking statements. These risks and uncertainties include, but are not limited to: the impact of changes in interest rates, a decline in economic conditions and increased competition among financial service providers as these factors may impact the operating results, the ability to attract deposit and loan customers, the quality of earning assets and government regulation. The Bank does not undertake, and specifically disclaims, any obligation to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements.

 Mission Community Bancorp and Subsidiaries 

 Condensed Consolidated Balance Sheets 

 Unaudited 



 (dollars in thousands) 




June 30, 2012

March 31, 2012

December 31, 2011

 Assets 




 Cash and due from banks 

$                    27,256

$                    67,093

$                      61,621

 Certificates of deposit in other banks 

5,176

3,492

3,592

 Investment securities available for sale 

171,472

128,623

128,310





 Loans held for sale 

4,280

5,874

3,720





 Loans, net of unearned income 

219,351

220,096

229,949

 Less allowance for loan and lease losses 

(3,781)

(3,562)

(3,326)

 Net loans 

215,570

216,534

226,623





 Federal Home Loan Bank stock and other stock, at cost 

3,800

3,801

3,926

 Premises and equipment  

16,027

16,292

16,282

 Other real estate owned 

2,299

2,224

5,220

 Company owned life insurance 

7,901

7,844

7,786

 Core deposit intangible asset, net of accumulated amortization 

2,967

3,068

3,170

 Accrued interest and other assets 

2,228

2,929

3,062

 Total Assets 

$                  458,976

$                  457,774

$                    463,312





 Liabilities and Shareholders' Equity 




 Deposits:  




 Noninterest-bearing demand 

$                  126,003

$                  113,388

$                    105,105

 Money market, NOW and savings 

159,483

156,912

156,273

 Time certificates of deposit 

123,159

134,981

149,196

 Total deposits 

408,645

405,281

410,574

 Junior subordinated debt securities  

5,548

5,519

5,491

 Accrued interest and other liabilities 

2,130

4,710

4,271

 Warrant liability 

150

199

5,184

 Total liabilities 

416,473

415,709

425,520

 Mezzanine financing: 




 Redeemable Bancorp-issued preferred stock, Series A, B and C; liquidation value of $1,205 




1,205

1,205

1,205

 Redeemable subsidiary-issued preferred stock; liquidation value of $6,400 at June 30, 2012, and $7,000 at December 31, 2011 







6,400

7,000

7,000





 Shareholders' equity: 




 Common stock - 50,000,000 shares authorized; issued and outstanding: 7,855,066 at June 30, 2012 and 7,755,066 at March 31, 2012 and December 31, 2011 







41,325

40,824

40,825

 Additional paid-in capital 

8,533

8,497

3,505

 Accumulated deficit 

(17,095)

(17,444)

(16,438)

 Accumulated other comprehensive income 

2,135

1,983

1,695

 Total shareholders' equity 

34,898

33,860

29,587

 Total Liabilities and Shareholders' Equity 

$                  458,976

$                  457,774

$                    463,312









 

 Mission Community Bancorp and Subsidiaries 

 Condensed Consolidated Statements of Operations 

 Unaudited 





 (dollars in thousands, except per share data) 






 For the Three Months Ended 


 For the Six Months Ended 


June 30, 2012

June 30, 2011


June 30, 2012

June 30, 2011

 Interest Income 






 Interest and fees on loans 

$              4,351

$              1,697


$             8,650

$             3,486

 Interest on investment securities 

707

461


1,339

880

 Other interest income 

24

6


68

16

 Total interest income 

5,082

2,164


10,057

4,382

 Interest Expense 






 Interest on money market, NOW and savings deposits 

69

104


141

219

 Interest on time certificates of deposit 

196

229


452

476

 Other interest expense 

82

25


164

55

 Total interest expense 

347

358


757

750

 Net interest income 

4,735

1,806


9,300

3,632

 Provision for loan and lease losses 

225

-


450

-

 Net interest income (loss) after provision for loan and lease losses 

4,510

1,806


8,850

3,632

 Non-interest income 






 Service charges on deposit accounts 

248

121


455

198

 Gain on sale of loans 

-

35


8

141

 Loan servicing fees, net of amortization 

44

35


82

59

 Gain on sale or call of available-for-sale securities 

526

-


527

-

 Gain (loss) or writedown of other real estate owned and premises and equipment 

70

70


(288)

23

 Change in fair value of warrant liability 

49

407


79

959

 Other income and fees 

127

56


239

168

 Total non-interest income 

1,064

724


1,102

1,548

 Non-interest expense 






 Salaries and employee benefits 

2,370

1,448


4,853

2,763

 Occupancy expenses 

467

331


922

652

 Furniture and equipment 

256

112


435

226

 Data processing 

549

262


1,341

463

 Professional fees 

326

403


735

533

 Marketing and business development 

91

56


216

93

 Office supplies and expenses 

182

67


392

126

 Insurance and regulatory assessments 

170

81


323

226

 Loan and lease expenses 

126

123


190

160

 Other real estate expenses 

103

42


149

98

 Amortization of core deposit intangible asset 

101

-


202

-

 Other expenses  

308

167


500

317

 Total non-interest expense 

5,049

3,092


10,258

5,657

 Income (loss) before income taxes 

525

(562)


(306)

(477)

 Income tax expense 

3

5


3

5

 Net income (loss) 

$                522

$               (567)


$              (309)

$              (482)

 Less dividends on preferred stock 

173

64


348

128

 Net income (loss) attributable to common stock 

$                349

$               (631)


$              (657)

$              (610)







 Per Common Share Data: 






 Net income (loss) - basic 

$               0.04

$              (0.09)


$             (0.08)

$             (0.09)

 Net income (loss) - diluted 

$               0.04

$              (0.09)


$             (0.08)

$             (0.09)

 Average common shares outstanding - basic 

7,766,055

7,094,274


7,760,561

7,094,274

 Average common shares outstanding - diluted 

7,766,055

 N/A 


 N/A 

 N/A 







SOURCE Mission Community Bancorp



RELATED LINKS
http://www.missioncommunitybank.com

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