Exhibit 99.1
PRESS RELEASE
San Luis Obispo, California
March 7, 2005
Contact: Ronald Pigeon, Chief Financial Officer (805) 269-0012
MISSION COMMUNITY BANCORP REPORTS 2004 RESULTS
SAN LUIS OBISPO, CA — March 7, 2005 — Mission Community Bancorp (“MCB”) (OTCBB: MISS), today reported full year 2004 net income of $1.492 million, or $1.84 per diluted share, as compared with $716 thousand, or $0.91 per diluted share, for the same period in 2003—a 102% increase in earnings per share. For the fourth quarter of 2004, MCB reported net income of $515 thousand, or $0.63 per diluted share, compared with $375 thousand, or $0.47 per diluted share, for 2003.
MCB’s results for 2004 included $1.333 million ($792 thousand after taxes) in grants received from the Bank Enterprise Award (“BEA”) program sponsored by the U.S. Treasury Department, Community Development Financial Institutions Fund. In 2003 MCB recognized $181 thousand ($114 after taxes) in BEA awards. These awards were received in recognition of the increased levels of financial services MCB’s principal subsidiary, Mission Community Bank (“the Bank”), has provided to economically distressed communities. The loans supporting the $1.241 million award received in the second half of 2004 were made under normal bank underwriting standards and interest rates and are not considered to have more than normal credit risk. “We are gratified that our approach to focusing on community development—unique in our market area—has been validated and has now resulted in record earnings for our company and our shareholders,” remarked Anita M. Robinson, President and Chief Executive Officer. “We will continue to seek awards and grants consistent with our community development activities to augment our more traditional banking income, recognizing that we cannot be assured of any future awards or grants.”
Negatively impacting earnings for 2004 was a $254 thousand ($151 thousand after taxes) provision for losses on an impaired asset-backed security in the Bank’s held-to-maturity portfolio. As of December 31, 2004, the fair value of that security was $21 thousand in excess of its written-down book value. Also negatively affecting 2004’s earnings was a $250,000 grant to Mission Community Services Corp. (“MCSC”), an affiliated not-for-profit organization, to further MCSC’s mission of providing Central Coast and Central California small businesses with technical assistance, counseling and training in finance, management, marketing procurement and access to the U. S. Small Business Administration’s programs and services.
MCB’s total assets were $139 million as of December 31, 2004, a 23% increase over the prior year of $113 million. Outstanding loans totaled $103 million, a $25 million, or 31%, net increase over the prior year-end. Deposits increased $16 million, or 17%, over the same year to $113 million at the end of 2004.
Mission Community Bank operates full service offices in San Luis Obispo, Paso Robles, Arroyo Grande and Nipomo, California. The bank also opened in January 2005 a new Business Banking Center , a loan production office, located at 3480 South Higuera in San Luis Obispo.
Mission Community Bank is a full service bank providing loan and deposit products in San Luis Obispo and northern Santa Barbara Counties. As a Department of the Treasury Certified Community Development Financial Institution, the bank has been the recipient of several awards for its success in small business lending and community development banking services. Please visit www.missioncommunitybank.com for more information on Mission Community Bank.
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Mission Community Bancorp |
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Selected Financial Results- Unaudited |
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(In thousands, except share and per-share data) |
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| $ |
| Percent |
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| $ |
| Percent |
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| Quarter Ended |
| Increase |
| Increase |
| Year Ended |
| Increase |
| Increase |
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| 12/31/2004 |
| 12/31/2003 |
| (Decrease) |
| (Decrease) |
| 12/31/2004 |
| 12/31/2003 |
| (Decrease) |
| (Decrease) |
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Summary of Operations |
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Interest income |
| $ | 2,000 |
| 1,523 |
| 477 |
| 31 | % | $ | 7,425 |
| 5,544 |
| 1,881 |
| 34 | % | ||
Interest expense |
| 500 |
| 325 |
| 175 |
| 54 | % | 1,690 |
| 1,269 |
| 421 |
| 33 | % | ||||
Net Interest Income |
| 1,500 |
| 1,198 |
| 302 |
| 25 | % | 5,735 |
| 4,275 |
| 1,460 |
| 34 | % | ||||
Provision for loan losses |
| 25 |
| 75 |
| (50 | ) | -67 | % | 280 |
| 120 |
| 160 |
| 133 | % | ||||
Net interest income after provision |
| 1,475 |
| 1,123 |
| 352 |
| 31 | % | 5,455 |
| 4,155 |
| 1,300 |
| 31 | % | ||||
Non-interest income |
| 893 |
| 511 |
| 382 |
| 75 | % | 2,755 |
| 1,367 |
| 1,388 |
| 102 | % | ||||
Securities gains(losses) |
| — |
| — |
| — |
| NM |
| (71 | ) | — |
| (71 | ) | NM |
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Non-interest expense |
| 1,475 |
| 1,094 |
| 381 |
| 35 | % | 5,629 |
| 4,389 |
| 1,240 |
| 28 | % | ||||
Income before taxes |
| 893 |
| 540 |
| 353 |
| 65 | % | 2,510 |
| 1,133 |
| 1,377 |
| 122 | % | ||||
Income taxes |
| 378 |
| 165 |
| 213 |
| 129 | % | 1,018 |
| 417 |
| 601 |
| 144 | % | ||||
Net income |
| $ | 515 |
| 375 |
| 140 |
| 37 | % | $ | 1,492 |
| 716 |
| 776 |
| 108 | % | ||
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Period End Balances |
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Earning assets |
| $ | 130,083 |
| 106,055 |
| 24,028 |
| 23 | % | $ | 130,083 |
| 106,055 |
| 24,028 |
| 23 | % | ||
Total loans |
| 103,376 |
| 78,758 |
| 24,618 |
| 31 | % | 103,376 |
| 78,758 |
| 24,618 |
| 31 | % | ||||
Total assets |
| 139,249 |
| 112,760 |
| 26,489 |
| 23 | % | 139,249 |
| 112,760 |
| 26,489 |
| 23 | % | ||||
Total deposits |
| 112,836 |
| 96,586 |
| 16,250 |
| 17 | % | 112,836 |
| 96,586 |
| 16,250 |
| 17 | % | ||||
Total shareholders’ equity |
| $ | 10,027 |
| 8,546 |
| 1,481 |
| 17 | % | $ | 10,027 |
| 8,546 |
| 1,481 |
| 17 | % | ||
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Per Share Data |
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Basic earnings per share |
| $ | 0.67 |
| 0.50 |
| 0.17 |
| 34 | % | $ | 1.97 |
| 0.95 |
| 1.02 |
| 107 | % | ||
Diluted earnings per share |
| 0.63 |
| 0.47 |
| 0.16 |
| 34 | % | 1.84 |
| 0.91 |
| 0.93 |
| 102 | % | ||||
Average common shares utstanding |
| 642,599 |
| 630,166 |
| 12,433 |
| 2 | % | 638,750 |
| 630,166 |
| 8,584 |
| 1 | % | ||||
Average preferredshares outstanding |
| 120,500 |
| 120,500 |
| — |
| 0 | % | 120,500 |
| 120,500 |
| — |
| 0 | % | ||||
Basic average shares outstanding |
| 763,099 |
| 750,066 |
| 12,433 |
| 2 | % | 759,250 |
| 750,666 |
| 8,584 |
| 1 | % | ||||
Effective of dilutive stock options |
| 53,525 |
| 50,521 |
| 3,004 |
| 6 | % | 53,729 |
| 37,848 |
| 15,881 |
| 42 | % | ||||
Diluted average shares outstanding |
| 816,624 |
| 801,187 |
| 15,437 |
| 2 | % | 812,979 |
| 788,514 |
| 24,465 |
| 3 | % | ||||
Cash dividends declared per share |
| $ | 0.12 |
| $ | 0.10 |
| 0.02 |
| 20 | % | $ | 0.12 |
| $ | 0.10 |
| 0.02 |
| 20 | % |
NM - Not Meaningful
Forward Looking Statements
This Form 8-K includes forward-looking information, which is subject to the “safe harbor” created by Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act and the Private Securities Litigation Reform Act of 1995. When the Company uses or incorporates by reference in this Current Report on Form 8-K the words “anticipate,” “estimate,” “expect,” “project,” “intend,” “commit,” “believe” and similar expressions, the Company intends to identify forward-looking statements.