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NEWS RELEASE
FOR IMMEDIATE RELEASE
November 6, 2008
Financial Contact: Ronald B. Pigeon, Chief Financial Officer (805) 269-0012
Media Contact: Kevin Moon, Marketing Director (805) 597-6197
Mission Community Bancorp Reports Third Quarter Results
(San Luis Obispo, CA) – Mission Community Bancorp (OTCBB: MISS), parent of Mission Community Bank, today reported third quarter net income of $125,000, or $0.10 per share, compared to $242,000, or $0.30 per share, for the same period last year. Results for the third quarter of 2007 were augmented by a Bank Enterprise Award from the U.S. Treasury Department totaling $241,000; no awards have been received in 2008.
For the nine months ending September 30, 2008, the Company incurred a net loss of $1,327,000, which compares to net income of $514,000 for the first nine months of 2007.
Perceiving weakening economic conditions, Mission Community Bank chose to add $2,325,000 to loan loss reserves in June. These funds were set aside as a precaution against the possibility that some loans may not be repaid on time or in full. Though not affecting third quarter results, bolstering loan loss reserves significantly affected year to date earnings.
Mission Community Bank has experienced strong growth during the last year. Outstanding loans totaled $151.4 million on September 30, a $29 million increase from a year earlier. Total assets were $218.8 million, up 35% from $162.5 million on September 30, 2007. Total deposits grew to $150.2 million at the end of the third quarter, up from $126.9 million the previous year.
The Company attracted $6.8 million in net new capital from investors during the first quarter of 2008, and expects to add $4 million more in new capital before year end. Mission Community Bank remains well capitalized and is preparing to open a new office in Santa Maria this month, at 1670 South Broadway.
About Mission Community Bancorp
Mission Community Bancorp, a bank holding company, operates Mission Community Bank with offices in Arroyo Grande, San Luis Obispo, Paso Robles, a Business Banking Center in San Luis Obispo and an office in Santa Maria opening this year. A Department of the Treasury Certified Community Development Financial Institution, the bank has received several awards for its success in meeting community needs in small business lending and development banking services and has earned an Outstanding rating for its Community Reinvestment Act (CRA) activities. For more information, visit www.MissionCommunityBank.com.
Forward-Looking Statements Disclosure
This news release 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 press release the words "anticipate," "estimate," "expect," "project," "intend," "commit," "believe" and similar expressions, the Company intends to identify forward-looking statements.
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581 Higuera Street ▪ San Luis Obispo, California 93401 ▪ 805-782-5000
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November 6, 2008
Mission Community Bancorp Reports Third Quarter Results
Mission Community Bancorp | ||||||||
Selected Financial Results - Unaudited | ||||||||
(in thousands, except share and per-share data) | ||||||||
Quarter Ended | $ | Nine Months Ended | $ | |||||
Increase | Increase | |||||||
9/30/2008 | 9/30/2007 | (Decrease) | 9/30/2008 | 9/30/2007 | (Decrease) | |||
Summary of Operations | ||||||||
Interest income | $ | 2,857 | 2,947 | (90) | $ | 8,243 | 8,798 | (555) |
Interest expense | 1,238 | 1,353 | (115) | 3,461 | 3,849 | (388) | ||
Net interest income | 1,619 | 1,594 | 25 | 4,782 | 4,949 | (167) | ||
Provision for loan losses | - | 65 | (65) | 2,545 | 80 | 2,465 | ||
Net interest income after provision | 1,619 | 1,529 | 90 | 2,237 | 4,869 | (2,632) | ||
Non-interest income | 308 | 495 | (187) | 602 | 823 | (221) | ||
Securities gains(losses) | - | - | - | - | - | - | ||
Non-interest expense | 1,763 | 1,652 | 111 | 5,231 | 4,939 | 292 | ||
Income (loss) before taxes | 164 | 372 | (208) | (2,392) | 753 | (3,145) | ||
Income tax expense (benefit) | 39 | 130 | (91) | (1,065) | 239 | (1,304) | ||
Net income (loss) | $ | 125 | 242 | (117) | $ | (1,327) | 514 | (1,841) |
Net income (loss) applicable to common stock | $ | 112 | 205 | (93) | (1,191) | 436 | (1,627) | |
Period End Balances | ||||||||
Interest-earning assets | $ | 207,157 | 152,442 | 54,715 | $ | 207,157 | 152,442 | 54,715 |
Total loans | 151,355 | 122,329 | 29,026 | 151,355 | 122,329 | 29,026 | ||
Total assets | 218,750 | 162,524 | 56,226 | 218,750 | 162,524 | 56,226 | ||
Total deposits | 150,193 | 126,895 | 23,298 | 150,193 | 126,895 | 23,298 | ||
Shareholders' equity | $ | 18,613 | 12,798 | 5,815 | $ | 18,613 | 12,798 | 5,815 |
Per Common Share Data | ||||||||
Basic earnings (loss) per common share | $ | 0.10 | 0.30 | (0.20) | $ | (1.13) | 0.64 | (1.77) |
Diluted earnings (loss) per common share | 0.10 | 0.29 | (0.19) | (1.13) | 0.61 | (1.74) | ||
Cash dividends declared per common share | $ | - | - | - | $ | - | - | - |
Average Balances | ||||||||
Interest-earning assets | $ | 189,707 | 150,466 | 39,241 | $ | 173,105 | 147,238 | 25,867 |
Total loans | 148,990 | 125,439 | 23,551 | 139,255 | 126,059 | 13,196 | ||
Total assets | 198,697 | 160,226 | 38,471 | 182,199 | 156,984 | 25,215 | ||
Total deposits | 135,157 | 122,022 | 13,135 | 125,151 | 121,472 | 3,679 | ||
Shareholders' equity | $ | 18,687 | 12,721 | 5,966 | $ | 18,341 | 12,489 | 5,852 |
Performance Ratios | ||||||||
Return on average equity (ROE) | 2.7% | 7.6% | -4.9% | -9.7% | 5.5% | -15.2% | ||
Return on average assets (ROA) | 0.25% | 0.60% | -0.35% | -0.97% | 0.44% | -1.41% | ||
Asset Quality Data | ||||||||
Allowance for loan losses | $ | 2,946 | 1,096 | 1,850 | $ | 2,946 | 1,096 | 1,850 |
Allowance to ending loans | 1.95% | 0.90% | 1.05% | 1.95% | 0.90% | 1.05% | ||
Net charge-offs | $ | 40 | 14 | 26 | $ | 749 | 10 | 739 |
Net charge-offs to average loans | 0.11% | 0.04% | 0.07% | 0.72% | 0.01% | 0.71% | ||
Non-performing loans | $ | 4,284 | 2,305 | 1,979 | $ | 4,284 | 2,305 | 1,979 |
Non-performing assets | 4,284 | 2,305 | 1,979 | 4,284 | 2,305 | 1,979 | ||
Non-performing assets to total assets | 1.96% | 1.42% | 0.54% | 1.96% | 1.42% | 0.54% | ||
Provision for loan losses to average loans | 0.00% | 0.21% | -0.21% | 2.44% | 0.08% | 2.36% | ||
Allowance to non-performing loans | 69% | 48% | 21% | 69% | 48% | 21% |