Also serving the communities of De Luz, Rainbow, Camp Pendleton, Pala and Pauma

Mission Oaks posts 24th profitable quarter

TEMECULA — Mission Oaks Bancorp, whose principal subsidiary is Mission Oaks National Bank, reported its 24th consecutive profitable quarter for the period ending June 30. In early July, Mission Oaks National Bank opened a branch inside Major Market in Fallbrook.

In the second quarter, the Temecula-based community bank reported earnings of $158,000, or $0.04 per share, compared with earnings of $576,000, or $0.13 cents per share, from the same period a year ago.

During the most recent quarter, the bank set aside $534,000 as a provision for loan losses. A year ago, the bank set aside $110,000.

The increase in loan loss reserves reflected a decision by Mission Oaks management to increase its cushion against future loan losses, recognizing declining values in underlying collateral values, particularly real estate.

“We know many banks have been adversely affected by troubled real estate loans and compressed net interest margins,” said Gary Votapka, Mission Oaks president and chief executive. “Although we remain well capitalized and do not carry any sub-prime or Alt-A mortgage loans, we decided to proactively boost our reserves at this point because it is the prudent thing to do.”

Despite tough economic conditions, Mission Oaks’ management remains committed to the communities it serves and investing in areas it believes will have long-term growth potential.

For more on Mission Oaks National Bank visit http://www.missionoaksbank.com.

 

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