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
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