Mission Oaks Bancorp Inc. in Temecula, Calif., restated its second-quarter earnings, resulting in a wider loss stemming from impaired loans.
The parent company of Mission Oaks National Bank on Tuesday reported a revised net loss of $3.2 million, compared with the previously stated net loss of $2.1 million. For the first half of the year, Mission Oaks reported a revised net loss of $3.9 million, up from a $2.8 million net loss reported Aug. 2.
Despite the restatements, the $186.4 million-asset Mission Oaks improved its net loss in both the second quarter and first six months of the year from a year earlier. Mission Oaks said it had to restate earnings because of accounting rules related to the collateral of three loans.
The company reappraised the collateral on those loans, resulting in an additional $1.1 million in write-downs and an equal amount added to its provision for loan losses.
Mission Oaks raised $7 million through a private placement in July.
That capital, combined with its restated earnings, boosted the bank's total risk-based capital ratio to 15.15%, compared with 10.87% as of June 30.