2014

Mission Community Bancorp Reports Results for Third Quarter 2012

SAN LUIS OBISPO, Calif., Nov. 13, 2012 /PRNewswire/ -- Mission Community Bancorp, "Bancorp" (OTCQB: MISN), parent company of Mission Community Bank, "Bank", announced third quarter 2012 financial results. Net income for the third quarter of 2012 was $760,000, with diluted earnings per share of $0.08. Net income for the first nine months of 2012 was $451,000.

At September 30, 2012, total assets were $443.3 million, compared to $459.0 million at June 30, 2012. As of the end of the third quarter of 2012, loans outstanding were $237.0 million, compared to $223.6 million at June 30, 2012, and deposits totaled $389.4 million, compared to $408.6 million at June 30, 2012. Shareholders' equity at September 30, 2012 was $35.9 million. Book value and tangible book value per share were $4.57 and $4.20 respectively at September 30, 2012.

"A year after acquiring Santa Lucia Bank and doubling in size, Mission Community Bank is solidly on track for a profitable 2012," said Tom L. Dobyns, Chief Executive Officer of Mission Community Bank. "We're effectively managing credit quality and controlling expenses. As the premier business bank on California's Central Coast, we remain focused on growing our commercial loan portfolio and enhancing client relationships by providing exceptional service and trusted financial advice."

"Our third quarter results demonstrated continued expanding profitability, with $760,000 in pre-tax earnings and an annualized return on average assets of 0.67%," said Mark R. Ruh, Chief Financial Officer. "Our Bank capital ratios reflect continued strength, with the decline in Bank risk based capital ratios resulting from the expansion of our loan portfolio and corresponding shrinkage of our investment portfolio. The decline in the consolidated bank holding company risk based capital ratios mainly reflects the pay-down of redeemable non-bank subsidiary issued preferred stock to $4.8 million at September 30, 2012."

Financial Highlights – Consolidated (unaudited)



For the Three Months Ended


September 30, 2012



Net income

$760,000



Net income attributable to common stock

$609,000



Diluted earnings per share

$0.08



Net interest margin

3.99%



Cost of funds

0.29%



Return on average assets (annualized)

0.67%





For the Nine Months Ended


September 30, 2012


Net income

$451,000


Net income (loss) attributable to common stock

($49,000)


Diluted loss per share

($0.01)



For the Nine Months Ended


September 30, 2012


Net interest margin

4.27%


Cost of funds

0.34%


Return on average assets (annualized)

0.13%



At Period End


September 30, 2012

June 30, 2012




Book value per share

$4.57

$4.44

Tangible book value per share

$4.20

$4.06




Allowance for credit losses to total loans and leases, net of unearned income

1.73%

1.69%


Allowance for credit losses to total non-performing loans and leases

49.0%

51.5%







Equity to assets ratios:



Consolidated Bancorp

8.09%

7.60%

Bank

9.43%

8.94%




Capital Ratios:



Consolidated Bancorp



Tier 1 Leverage Ratio

9.16%

9.18%

Tier 1 Risk-based Capital Ratio

13.85%

14.68%

Total Risk-based Capital Ratio

15.10%

15.93%




Bank



Tier 1 Leverage Ratio

8.23%

7.97%

Tier 1 Risk-based Capital Ratio

12.49%

12.82%

Total Risk-based Capital Ratio

13.74%

14.08%

Earnings

Net interest income in the third quarter of 2012 totaled $4.2 million compared to $4.7 million in the second quarter. Non-interest income in the third quarter of 2012 totaled $1.31 million compared to $1.06 million in the second quarter. Third quarter non-interest expense totaled $4.48 million, compared to $5.05 million in the second quarter of 2012.

Loans

Gross loans totaled $237.0 million at September 30, 2012 and $223.6 million at June 30, 2012. Non-performing loans totaled $8.4 million or 3.53% of the loan portfolio in the third quarter, compared to $7.3 million or 3.28% in the second quarter of 2012.

Net loan recoveries totaled $94,000 in the third quarter of 2012, compared to net charge-offs of ($6,000) in the second quarter. The provision for loan losses totaled $225,000 in the third quarter, equal to the second quarter's $225,000. The allowance for loan losses of $4.1 million totaled 1.73% of loans at September 30, 2012, compared to $3.8 million and 1.69% of loans at June 30, 2012.

Deposits

Deposits totaled $389.4 million in the third quarter of 2012 and $408.6 million in the second quarter. Non-interest bearing deposits comprised 32.3% of total deposits at September 30, 2012, up from 30.8% at June 30, 2012.

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)



September 30, 2012

June 30, 2012

March 31, 2012

December 31, 2011

Assets





Cash and due from banks

$ 21,197

$ 27,256

$ 67,093

$ 61,621

Certificates of deposit in other banks

5,176

5,176

3,492

3,592

Investment securities available for sale

147,066

171,472

128,623

128,310






Loans held for sale

3,490

4,280

5,874

3,720






Loans, net of unearned income

233,537

219,351

220,096

229,949

Less allowance for loan and lease losses

(4,100)

(3,781)

(3,562)

(3,326)

Net loans

229,437

215,570

216,534

226,623






Federal Home Loan Bank stock and other stock, at cost

6,699

3,800

3,801

3,926

Premises and equipment

15,977

16,027

16,292

16,282

Other real estate owned

1,463

2,299

2,224

5,220

Company owned life insurance

7,958

7,901

7,844

7,786

Core deposit intangible asset, net of accumulated amortization

2,866

2,967

3,068

3,170

Accrued interest and other assets

1,988

2,228

2,929

3,062

Total Assets

$ 443,317

$ 458,976

$ 457,774

$ 463,312






Liabilities and Shareholders' Equity





Deposits:





Noninterest-bearing demand

$ 125,778

$ 126,003

$ 113,388

$ 105,105

Money market, NOW and savings

153,332

159,483

156,912

156,273

Time certificates of deposit

110,298

123,159

134,981

149,196

Total deposits

389,408

408,645

405,281

410,574

Junior subordinated debt securities

5,576

5,548

5,519

5,491

Accrued interest and other liabilities

2,667

2,130

4,710

4,271

Warrant liability

-

150

199

5,184

Total liabilities

401,451

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

1,205

Redeemable subsidiary-issued preferred stock;





liquidation value of $4,800 at September 30, 2012;





$6,400 at June 30, 2012; $7,000 at March 31, 2012;





and $7,000 at December 31, 2011

4,800

6,400

7,000

7,000






Shareholders' equity:





Common stock - 50,000,000 shares authorized;





issued and outstanding: 7,855,066 at September 30, 2012;





7,855,066 at June 30, 2012; 7,755,066 at March 31, 2012





and 7,755,066 at December 31, 2011

41,325

41,325

40,824

40,825

Additional paid-in capital

8,730

8,533

8,497

3,505

Accumulated deficit

(16,487)

(17,095)

(17,444)

(16,438)

Accumulated other comprehensive income

2,293

2,135

1,983

1,695

Total shareholders' equity

35,861

34,898

33,860

29,587

Total Liabilities and Shareholders' Equity

$ 443,317

$ 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 Nine Months Ended


September 30, 2012

September 30, 2011


September 30, 2012

September 30, 2011

Interest Income






Interest and fees on loans

$ 3,739

$ 1,785


$ 12,389

$ 5,271

Interest on investment securities

696

470


2,035

1,350

Other interest income

17

6


85

22

Total interest income

4,452

2,261


14,509

6,643

Interest Expense






Interest on money market, NOW and savings deposits

71

86


212

305

Interest on time certificates of deposit

149

217


601

693

Other interest expense

82

25


246

80

Total interest expense

302

328


1,059

1,078

Net interest income

4,150

1,933


13,450

5,565

Provision for loan and lease losses

225

300


675

300

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

3,925

1,633


12,775

5,265

Non-interest income






Service charges on deposit accounts

236

114


691

312

Gain on sale of SBA-guaranteed loans

-

31


8

172

Net gains(losses) on disposition of other loans held for sale

685

209


711

255

Loan servicing fees, net of amortization

37

38


119

97

Grants and awards

-

-


-

-

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

407

4


934

4

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

(170)

(94)


(458)

(71)

Change in fair value of warrant liability

(11)

248


68

1,207

Other income and fees

128

138


341

260

Total non-interest income

1,312

688


2,414

2,236

Non-interest expense






Salaries and employee benefits

2,237

1,601


7,090

4,364

Occupancy expenses

431

341


1,353

993

Furniture and equipment

162

120


597

346

Data processing

464

276


1,805

739

Professional fees

265

369


1,000

902

Marketing and business development

96

47


312

140

Office supplies and expenses

145

66


537

192

Insurance and regulatory assessments

162

86


485

312

Loan and lease expenses

56

42


246

202

Other real estate expenses

89

15


238

113

Provision for unfunded commitments

25

180


25

180

Amortization of core deposit intangible asset

101

-


303

-

Other expenses

244

178


744

495

Total non-interest expense

4,477

3,321


14,735

8,978

Income (loss) before income taxes

760

(1,000)


454

(1,477)

Income tax expense

-

1


3

6

Net income (loss)

$ 760

$ (1,001)


$ 451

$ (1,483)

Less dividends on preferred stock

151

64


500

192

Net income (loss) attributable to common stock

$ 609

$ (1,065)


$ (49)

$ (1,675)







Per Common Share Data:






Net income (loss) - basic

$ 0.08

$ (0.15)


$ (0.01)

$ (0.24)

Net income (loss) - diluted

$ 0.08

$ (0.15)


$ (0.01)

$ (0.24)

Average common shares outstanding - basic

7,766,055

7,094,274


7,792,292

7,094,274

Average common shares outstanding - diluted

7,766,055

N/A


7,792,292

N/A



 

 


 

SOURCE Mission Community Bancorp



RELATED LINKS
http://www.MissionCommunityBank.com

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