BAKERSFIELD, Calif., July 29, 2024 /PRNewswire/ — Mission Bancorp (“Mission” or the “Company”) (OTC Pink: MSBC), a bank holding company and parent of Mission Bank (the “Bank”), reported unaudited net income available to common shareholders of $7.3 million, or $2.73 per diluted common share, for the second quarter of 2024, compared to net income available to common shareholders of $7.7 million, or $2.91 per diluted common share, for the second quarter of 2023, and net income available to common shareholders of $7.3 million, or $2.77 per diluted common share, for the linked quarter.
“We face the same industry challenges as our peers, yet we have been able to report tremendous deposit growth this quarter. We are proud of our team’s focus on providing exceptional customer service; the hard work is evident in our results,” said A.J. Antongiovanni, President, and Chief Executive Officer of Mission Bancorp. Mr. Antongiovanni continued, “Although we see economic challenges and uncertainty around interest rates in the future, our fortress balance sheet will allow us to weather the storm if the road gets rocky.”
Second Quarter 2024 Financial Highlights
Gross loans increased by $68.5 million, or 5.9%, to $1.23 billion as of June 30, 2024, compared to $1.16 billion at June 30, 2023, and increased by 0.2% or $2.1 million compared to March 31, 2024, balances.
Total deposits increased by $103.4 million, or 7.5%, to $1.48 billion as of June 30, 2024, compared with $1.38 billion a year earlier, and increased by $67.8 million, or 4.8%, from $1.42 billion as of March 31, 2024. Noninterest-bearing deposits were $619.3 million and represent 41.7% of total deposits at June 30, 2024.
The allowance for credit losses (“ACL”) as a percentage of gross loans increased from 1.48% at June 30, 2023, to 1.52% at June 30, 2024.
Credit quality remains strong with nonaccrual loans representing 0.04% of total gross loans at June 30, 2024, up from 0.00% as of June 30, 2023.
The Community Bank Leverage Ratio for the Bank as of June 30, 2024, was 11.81%, compared to 10.97% at June 30, 2023.
We are happy to report our inclusion in American Banker’s list of the 20 top-performing publicly traded banks under $2 billion in assets.
Net Income Available to Common Shareholders
Net income available to common shareholders for the second quarter of 2024 was $7.3 million, or $2.73 per diluted common share, compared with $7.3 million, or $2.77 per diluted common share, for the linked quarter ended March 31, 2024. Net income available to common shareholders was $7.7 million, or $2.91 per diluted common share, for the second quarter of 2023. Net income available to common shareholders was unchanged compared to the linked quarter, and decreased $0.4 million, or 5.2%, compared to the same prior year period.
Notable variances comparing to the linked quarter include a decrease in net interest income, and increased non-interest expense, which were partially offset by a decrease in the provision for credit losses. Compared to the second quarter of 2023, non-interest expense and the provision for income taxes increased, which were partially offset by a decrease in the provision for credit losses and increases in net interest income and non-interest income.
Net Interest Income
Net interest income was $17.5 million, or 4.47%, of average earning assets (“net interest margin”), for the second quarter of 2024, compared with $17.1 million, or a net interest margin of 4.68%, for the same period a year earlier, and $17.7 million, or a net interest margin of 4.55%, for the quarter ended March 31, 2024.
Net interest income increased by $0.4 million, or 2.4%, compared to the same prior year period primarily driven by growth in the Company’s loan portfolio and interest-bearing deposits in other banks, along with an increase in yields on earning assets. Loan interest income and fee accretion increased by $2.4 million compared to the second quarter of 2023. Additionally, the Company also experienced increased interest income from interest earning deposits in other banks and investment securities of $0.7 million and $0.1 million, respectively. Offsetting these increases, interest expense for the current quarter increased $2.9 million, compared to the same prior year period, primarily due to increased balances and costs of interest-bearing deposits.
Net interest income decreased for the quarter ended June 30, 2024, compared to the linked quarter by $0.2 million, or 1.2%, due primarily to an increase in interest expense on deposits which more than offset an increase in interest income. Interest expense on deposits increased $0.6 million, for the current quarter, compared to the linked quarter, due to increased costs on interest bearing deposits and higher average balances. Interest on other borrowings decreased by $0.2 million during the current quarter due to the maturity of a one-year term borrowing facility. Interest income increased $0.3 million, for the current quarter, compared to the linked quarter, primarily due to both growth in average quarterly balances and higher yields on loans.
The net interest margin was 4.47% for the quarter ended June 30, 2024, compared to 4.68% for the same prior year period, and 4.55% for the linked quarter ended March 31, 2024. Asset yields have increased 46 basis points, but the cost of funds has risen 73 basis points, contributing to the year-over-year 21 basis point decline in the quarterly net interest margin. Additionally, average interest-bearing liabilities have grown $121.6 million, outpacing the growth in average interest-earning assets of $109.2 million, when compared to the same prior year period.
The yield on loans, investment securities, and interest earning deposits in other banks have increased by 40 basis points to 6.50%, 54 basis points to 4.19%, and 33 basis points to 5.37%, respectively, when compared to the same prior year period. Additionally, average balances on loans increased $77.1 million, or 6.72%, average balances on investment securities declined $20.0 million, or 7.80%, and average balances on interest bearing deposits in other banks increased $51.6 million, or 111.6%, when compared to the same prior year period.
The 8 basis point decrease in the net interest margin for the second quarter of 2024, compared to the linked quarter, is primarily attributable to higher costs on interest-bearing liabilities and higher average balances of interest-bearing deposits. The Company’s costs of interest-bearing liabilities increased 21 basis points outpacing the 4 basis point rise on earning asset yields, which led to net interest margin compression during the quarter. The average balances of interest-bearing deposits increased $23.3 million and other borrowings decreased by $13.3 million, while the average balances of loans increased $17.3 million, average investment securities decreased $2.6 million, and average interest earning deposits in other banks decreased by $5.5 million during the quarter.
The cost of interest-bearing deposits increased 26 basis points to 2.91% for the quarter ended June 30, 2024, compared to the linked quarter ended March 31, 2024, and 117 basis points, compared to the same prior year period. The increase in the Company’s cost of funds is attributable to the “higher for longer” rate environment and increased competition for deposits in general. The Bank has continued to grow its total deposit accounts through new customer acquisition and expansion of existing relationships over the last year, however, our clients have also continued to optimize their operating account balances in order to maximize their interest-bearing balances, leading to a decline in the percentage of non-interest-bearing deposits of total deposits. Additionally, Mission continues to outperform peers by achieving lower deposit costs than peer averages. Compared to a peer group consisting of all California Commercial Banks from S&P Capital IQ as of March 31, 2024, Mission’s cost of funds rose 15% less than the 86 basis point peer average when compared to the same prior year period.
For the six months ended June 30, 2024, the Company’s net interest margin decreased 21 basis points to 4.51%, compared to 4.72% for the six months ended June 30, 2023. The decline in net interest margin is the result of a 126 basis point increase in the cost of total interest-bearing liabilities and $152.3 million growth in average interest-bearing liability balances, which outpaced the 57 basis point increase in earning asset yields and the $122.7 million growth in average earning asset balances.
In the third quarter of 2023 the Company entered into two pay-fixed, receive floating, interest rate swap contracts with notional balances totaling $108.0 million, to hedge future interest rate increases. These swap contracts consist of a $50.0 million hedge on the commercial real estate loan portfolio with a three-year maturity and a $58.0 million hedge on the municipal investment security portfolio with a five-year maturity. For both the current quarter ending on June 30, 2024, and the linked quarter ending on March 31, 2024, the interest rate swap contract associated with the loan portfolio generated an additional $0.1 million in interest income and added 5 basis points to loan yields. For the current quarter, the interest rate swap contract on the investment securities portfolio added $0.2 million in interest income and added 40 basis points to investment securities yields, compared to $0.2 million and 38 basis points for the prior quarter ended March 31, 2024. The interest rate swap contracts on the loan and investment securities portfolios generated $0.4 million total of additional interest income and 10 basis points of additional earning asset yield during the quarter ended June 30, 2024.
Provision for Credit Losses
There was no provision for credit loss recorded for the quarter ending June 30, 2024, compared to $0.7 million for the linked-quarter and $0.5 million for the same period a year ago. The Company’s quarterly credit loss provisions over the past year have been recorded primarily to account for growth in the loan portfolio and changes in macro-economic conditions which impact the calculated ACL under the current expected credit loss (“CECL”) model, rather than in response to changing conditions in the Company’s loan portfolio, which have remained stable, demonstrating a low credit risk profile during the past twelve months.
Non-Interest Income
Non-interest income for the second quarter of 2024 was $1.6 million, relatively unchanged when compared to the linked quarter, and up from $1.4 million for the same period a year earlier. Notable variances when compared to the linked quarter were decreases in SBA servicing fees and gain on sale of loans, which were partially offset by increases in Farmer Mac referral and servicing fee income, and service charges, fees, and other income. The increase in non-interest income when compared to the same period a year earlier was primarily due to increases in Farmer Mac referral and servicing fee income and SBA servicing fees and gain on sale of loans, which were partially offset by a loss on sale of securities reported in the current period and a gain on sale of premises and equipment recorded in the second quarter of 2023.
Non-Interest Expense
Non-interest expense increased by $0.5 million, or 6.1%, to $9.0 million for the quarter ended June 30, 2024, compared to $8.5 million for the linked quarter, and increased by $1.1 million, or 13.7%, compared to $7.9 million for the quarter ended June 30, 2024.
The increase in non-interest expense for the first quarter of 2024 compared to the linked quarter was primarily due to a $0.4 million increase in professional services expense associated with elevated legal and consulting fees.
The increase in non-interest expense for the second quarter of 2024 compared to the second quarter of 2023 was primarily due to a $0.6 million increase in salaries and benefits expense and a $0.3 million increase in other expenses. The increase in salaries and benefits expense is associated with increased base compensation, incentive compensation accruals, and payroll taxes. The increase in other expenses is primarily due to increased loan and deposit processing costs, higher Director fees, and additional operational losses.
Operating Efficiency
The Company’s operating efficiency ratio increased to 47.3% for the second quarter of 2024, compared to 42.9% for the second quarter of 2023, and increased from 44.0% compared to the linked quarter. Total non-interest expense as a percentage of average assets, another measure of the Company’s efficiency, was 2.19% for the second quarter of 2024, compared to 2.06% for the second quarter of 2023, and 2.08% for the quarter ended March 31, 2024.
Income Taxes
Income tax expense was $2.8 million for the second quarter of 2024, compared to $2.4 million for the quarter ended June 30, 2023, and relatively unchanged for the linked quarter ended March 31, 2024. The Company’s effective tax rate for the second quarter of 2024 was 27.5%, compared to 24.1% for the same period a year ago, and unchanged from the quarter ended March 31, 2024.
Asset and Equity Returns
The return on average equity for the second quarter of 2024 was 17.4%, down from 22.7% for the same prior year period, and down from 18.4% for the linked quarter. The quarterly return on average assets for the second quarter of 2024 was 1.77%, down from 1.99% for the same prior year period, and down from 1.80% for the linked quarter.
The decline in the quarterly returns on both average equity and average assets for the quarter ended June 30, 2024, compared to the second quarter of 2023, is primarily attributable to the 24.4% growth in average equity and the 7.07% growth in average assets, coupled with a 5.17% decline in quarterly net income.
The decrease in the current quarterly return on average equity, as compared to the linked quarter is primarily attributable to the 4.87% growth in average equity. The decline in the quarterly return on average assets, compared to the linked quarter, is primarily attributable to a 0.86% decline in quarterly net income.
Balance Sheet
Total assets increased by $114.3 million, or 7.2%, to $1.69 billion at June 30, 2024, compared to June 30, 2023, and increased by $53.6 million, or 3.3%, compared to March 31, 2024. Cash and cash equivalents increased by $59.1 million, or 49.8%, to $177.8 million at June 30, 2024, compared to the same prior year period, and increased by $58.8 million, or 49.4%, compared to March 31, 2024. The significant increase in the Company’s cash position over the last year is primarily the result of deposit growth, earnings, and bond portfolio repayment and amortization, which outpaced loan portfolio growth. The increase in the Company’s cash position over the past quarter is primarily due to robust deposit growth, net of the Federal Reserve Bank borrowing facility repayment upon maturity, which outpaced loan growth for the quarter.
Investment securities decreased by $18.1 million or 7.2%, to $234.1 million at June 30, 2024, compared to $242.7 million at June 30, 2023, and decreased by $6.3 million, or 2.6%, compared to $240.4 million at March 31, 2024. The decrease in the investment securities portfolio over the past year and quarter is attributable to repayments and amortization of the bond portfolio.
Loans increased by $68.5 million, or 5.9%, to $1.23 billion at June 30, 2024, compared to June 30, 2023, and increased by $2.1 million, or 0.2%, compared to March 31, 2024. Loan growth during the last year has been diversified across the portfolio, with notable growth in owner and non-owner occupied commercial real estate, agricultural production, and residential 1 to 4 family units segments of the loan portfolio, which were partially offset by the contraction in loans secured by farmland and construction and land development loans. Loan growth during the last quarter has been concentrated in owner and non-owner occupied commercial real estate and agricultural production segments of the loan portfolio, which were partially offset by decreases in commercial and industrial loans and loans secured by farmland.
Total deposits increased by $103.4 million, or 4.8%, to $1.48 billion as of June 30, 2024, from $1.38 billion as of June 30, 2023, and increased by $67.8 million, or 4.8%, from $1.42 billion at March 31, 2024. Noninterest-bearing deposits decreased by $44.1 million, or 6.7%, during the last year, and increased by $6.4 million, or 1.0%, since March 31, 2024. The decrease in noninterest bearing deposits experienced over the last year is attributable to both cash utilization by business customers as well as the migration of funds to interest bearing accounts for yield. Noninterest-bearing deposits represented 41.7% of total deposits on June 30, 2024.
Total shareholders’ equity was $173.6 million at June 30, 2024, an increase of $34.5 million, or 24.8%, compared to June 30, 2023, and an increase of $8.6 million, or 5.2%, compared to March 31, 2024, due primarily to quarterly earnings, net of changes in accumulated other comprehensive income or loss. The accumulated other comprehensive loss component of equity decreased $0.6 million during the past quarter due to a $0.5 million decrease in the accumulated other comprehensive loss on the investment securities portfolio and a $0.1 million increase in the accumulated other comprehensive gain associated with the interest rate swap contract, which is a hedge on interest rates of the investment securities portfolio. The accumulated other comprehensive loss decreased by $2.2 million during the past year resulting from a $1.6 million decrease in the accumulated other comprehensive loss on the investment securities portfolio and a $0.6 million increase in the accumulated other comprehensive gain associated with the interest rate swap contract.
Nonperforming assets were $0.5 million at June 30, 2024, down from $0.7 million at March 31, 2024, and up from $0.1 million at June 30, 2023. Nonperforming assets as a percentage of total assets were 0.03% at June 30, 2024, down from 0.04% at March 31, 2024, and up from 0.00% at June 30, 2023. Non-accrual loans currently recorded have been fully reserved for, in line with Management’s prudent credit management standards.
Allowance for Credit Losses
The allowance for credit losses (“ACL”) as a percentage of gross loans decreased to 1.52% at June 30, 2024, from 1.54% at March 31, 2024, and increased from 1.48% at June 30, 2023. The rise in our ACL as a percentage of gross loans over the last twelve months is a result of prudent management amid ongoing economic uncertainties stemming from sustained inflationary pressures and elevated interest rates.
Regulatory Capital
The Bank’s reported regulatory capital ratio exceeded the ratio generally required to be considered a “well capitalized” financial institution for regulatory purposes. The Community Bank Leverage Ratio for the Bank was 11.81%, at June 30, 2024, compared with the requirement of 9.00% to generally be considered a “well capitalized” financial institution for regulatory purposes. The Bank’s Community Bank Leverage ratio has increased by 84 basis points from 10.97%, and increased by 22 basis points from 11.59%, as of the periods ended June 30, 2023, and March 31, 2024, respectively. Strong earnings over the past year and quarter outpaced the growth in average assets, resulting in an increase in regulatory capital ratios.
Stock Repurchase Program
The Company announced on April 29, 2024, the extension of its plan Rule 10b5-1 (the “2022 10b5-1 Plan”) to facilitate the repurchase of its common stock. Pursuant to the 2022 10b5-1 Plan, a maximum of $1.0 million of the Company’s common stock may be repurchased by the Company. The previous extension under the Plan expired on April 26, 2024, and the Company extended the Plan for an additional six months, through October 25, 2024. The Company may suspend or discontinue the Plan at any time. Hilltop Securities, Inc. is acting as the Company’s agent to purchase its shares on pre-arranged terms pursuant to the 2022 10b5-1 Plan.
The Company did not purchase any shares under the 2022 10b5-1 Plan during the second quarter of 2024. Since Plan inception the Company has repurchased 4,066 shares at an average price of $82.62.
About Mission Bancorp and Mission Bank
With $1.7 billion in assets, Mission Bancorp is headquartered in Bakersfield, California and is the holding company of four wholly owned subsidiaries, Mission Bank, Mission 1031 Exchange, LLC, Mission Community Development, LLC, and Nosbig 88, Inc. Mission Bank has eight Business Banking Centers, serving the greater areas of Bakersfield, Lancaster, San Luis Obispo, Stockton, Ventura, and Visalia, California. Visit Mission Bank online at www.missionbank.bank. By including the foregoing website address, Mission Bancorp does not intend to, and shall not be deemed to incorporate by reference any material contained therein.
Forward Looking Statements
This press release may contain forward-looking statements that are subject to risks and uncertainties. Such risks and uncertainties may include but are not necessarily limited to fluctuations in interest rates, inflation, rapid and/or unanticipated deposit withdrawals, the unavailability of sources of liquidity, additional regulatory requirements that may be imposed on community banks or banks in general, general and industry-specific changes in market conditions, investor reaction to industry developments, government regulations and general economic conditions, and competition within the business areas in which the bank is conducting its operations, including the real estate market in California and other factors beyond the bank’s control. Such risks and uncertainties could cause results for subsequent interim periods or for the entire year to differ materially from those indicated. Readers should not place undue reliance on the forward-looking statements, which reflect management’s view only as of the date hereof. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances.
|
MISSION BANCORP |
|||||||||||||||||
|
CONSOLIDATED BALANCE SHEETS |
|||||||||||||||||
|
(Unaudited) |
|||||||||||||||||
|
(Dollars in thousands) |
|||||||||||||||||
|
Variance |
|||||||||||||||||
|
June 30, 2024 |
March 31, 2024 |
December 31, 2023 |
June 30, 2023 |
06/24 – 03/24 |
06/24 – 06/23 |
||||||||||||
|
Assets |
|||||||||||||||||
|
Cash and due from banks |
$ 47,615 |
$ 37,978 |
$ 39,516 |
$ 56,165 |
$ 9,637 |
$ (8,550) |
|||||||||||
|
Interest earning deposits in other banks |
130,188 |
81,010 |
110,267 |
62,557 |
49,178 |
67,631 |
|||||||||||
|
Total cash and cash equivalents |
177,803 |
118,988 |
149,783 |
118,722 |
58,815 |
59,081 |
|||||||||||
|
Interest earning deposits maturing over ninety days |
490 |
490 |
490 |
980 |
– |
(490) |
|||||||||||
|
Investment securities available-for-sale, at fair value |
234,130 |
240,382 |
242,681 |
252,205 |
(6,252) |
(18,075) |
|||||||||||
|
Loans |
1,231,905 |
1,229,803 |
1,210,416 |
1,163,416 |
2,102 |
68,489 |
|||||||||||
|
Allowance for credit losses |
(18,669) |
(18,931) |
(18,206) |
(17,203) |
262 |
(1,466) |
|||||||||||
|
Loans, net |
1,213,236 |
1,210,872 |
1,192,210 |
1,146,213 |
2,364 |
67,023 |
|||||||||||
|
Premises and equipment, net |
2,997 |
3,133 |
3,175 |
3,282 |
(136) |
(285) |
|||||||||||
|
Bank owned life insurance |
21,588 |
21,435 |
21,285 |
21,006 |
153 |
582 |
|||||||||||
|
Deferred tax asset, net |
15,230 |
15,501 |
15,594 |
15,280 |
(271) |
(50) |
|||||||||||
|
Interest receivable and other assets |
28,284 |
29,320 |
26,751 |
21,732 |
(1,036) |
6,552 |
|||||||||||
|
Total Assets |
$ 1,693,758 |
$ 1,640,121 |
$ 1,651,969 |
$ 1,579,420 |
$ 53,637 |
$ 114,338 |
|||||||||||
|
Liabilities and Shareholders’ Equity |
|||||||||||||||||
|
Deposits |
|||||||||||||||||
|
Noninterest-bearing demand |
$ 619,278 |
$ 612,876 |
$ 645,256 |
$ 663,396 |
$ 6,402 |
$ (44,118) |
|||||||||||
|
Interest bearing |
865,448 |
804,088 |
791,511 |
717,952 |
61,360 |
147,496 |
|||||||||||
|
Total deposits |
1,484,726 |
1,416,964 |
1,436,767 |
1,381,348 |
67,762 |
103,378 |
|||||||||||
|
Other borrowings |
– |
20,000 |
20,000 |
20,000 |
(20,000) |
(20,000) |
|||||||||||
|
Subordinated debentures, net of issuance costs |
21,898 |
21,881 |
21,863 |
21,828 |
17 |
70 |
|||||||||||
|
Interest payable and other liabilities |
13,502 |
16,215 |
16,625 |
17,070 |
(2,713) |
(3,568) |
|||||||||||
|
Total Liabilities |
1,520,126 |
1,475,060 |
1,495,255 |
1,440,246 |
45,066 |
79,880 |
|||||||||||
|
Shareholders’ Equity |
|||||||||||||||||
|
Common stock |
88,880 |
77,743 |
76,965 |
76,464 |
11,137 |
12,416 |
|||||||||||
|
Retained earnings |
102,738 |
105,953 |
98,605 |
82,847 |
(3,215) |
19,891 |
|||||||||||
|
Accumulated other comprehensive loss |
(17,986) |
(18,635) |
(18,856) |
(20,137) |
649 |
2,151 |
|||||||||||
|
Total shareholders’ equity |
173,632 |
165,061 |
156,714 |
139,174 |
8,571 |
34,458 |
|||||||||||
|
Total Liabilities and Shareholders’ Equity |
$ 1,693,758 |
$ 1,640,121 |
$ 1,651,969 |
$ 1,579,420 |
$ 53,637 |
$ 114,338 |
|||||||||||
|
SBA Paycheck Protection Program Loans |
559 |
597 |
645 |
741 |
(38) |
(182) |
|||||||||||
|
MISSION BANCORP |
||||||||||||||||||||
|
CONSOLIDATED STATEMENTS OF INCOME |
||||||||||||||||||||
|
(Unaudited) |
||||||||||||||||||||
|
(Dollars in thousands) |
||||||||||||||||||||
|
Three Months Ended |
Six Months Ended |
|||||||||||||||||||
|
Variance |
Variance |
|||||||||||||||||||
|
June 30, 2024 |
March 31, 2024 |
June 30, 2023 |
06/24 – 03/24 |
06/24 – 06/23 |
June 30, 2024 |
June 30, 2023 |
06/24 – 06/23 |
|||||||||||||
|
Interest and Dividend Income |
||||||||||||||||||||
|
Loans |
$ 19,790 |
$ 19,319 |
$ 17,428 |
$ 471 |
$ 2,362 |
$ 39,108 |
$ 33,156 |
$ 5,952 |
||||||||||||
|
Investment securities |
2,458 |
2,584 |
2,332 |
(126) |
126 |
5,043 |
4,519 |
524 |
||||||||||||
|
Other |
1,568 |
1,597 |
783 |
(29) |
785 |
3,165 |
1,770 |
1,395 |
||||||||||||
|
Total interest and dividend income |
23,816 |
23,500 |
20,543 |
316 |
3,273 |
47,316 |
39,445 |
7,871 |
||||||||||||
|
Interest Expense |
||||||||||||||||||||
|
Other deposits |
5,244 |
4,622 |
2,956 |
622 |
2,288 |
9,866 |
4,618 |
5,248 |
||||||||||||
|
Time deposits |
729 |
675 |
55 |
54 |
674 |
1,404 |
90 |
1,314 |
||||||||||||
|
Total interest expense on deposits |
5,973 |
5,297 |
3,011 |
676 |
2,962 |
11,270 |
4,708 |
6,562 |
||||||||||||
|
Other borrowings |
80 |
234 |
186 |
(154) |
(106) |
315 |
337 |
(22) |
||||||||||||
|
Subordinated debentures |
268 |
268 |
268 |
– |
– |
535 |
535 |
– |
||||||||||||
|
Total interest expense |
6,321 |
5,799 |
3,465 |
522 |
2,856 |
12,120 |
5,580 |
6,540 |
||||||||||||
|
Net Interest Income |
17,495 |
17,701 |
17,078 |
(206) |
417 |
35,196 |
33,865 |
1,331 |
||||||||||||
|
Provision for Credit Losses |
– |
(675) |
(450) |
675 |
450 |
(675) |
(1,000) |
325 |
||||||||||||
|
Net Interest Income After Provision |
||||||||||||||||||||
|
for Credit Losses |
17,495 |
17,026 |
16,628 |
469 |
867 |
34,521 |
32,865 |
1,656 |
||||||||||||
|
Non-Interest Income |
||||||||||||||||||||
|
Gain on sale of premises and equipment |
– |
– |
26 |
– |
(26) |
– |
254 |
(254) |
||||||||||||
|
Service charges, fees and other income |
980 |
942 |
967 |
38 |
13 |
1,922 |
1,940 |
(18) |
||||||||||||
|
Farmer Mac referral and servicing fees |
334 |
293 |
237 |
41 |
97 |
626 |
494 |
132 |
||||||||||||
|
SBA servicing fees and gain on sale of loans |
266 |
375 |
191 |
(109) |
75 |
641 |
267 |
374 |
||||||||||||
|
Loss on sale of securities |
(20) |
(11) |
– |
(9) |
(20) |
(31) |
(320) |
289 |
||||||||||||
|
Total non-interest income |
1,560 |
1,599 |
1,421 |
(39) |
139 |
3,158 |
2,635 |
523 |
||||||||||||
|
Non-Interest Expense |
||||||||||||||||||||
|
Salaries and benefits |
5,385 |
5,402 |
4,781 |
(17) |
604 |
10,787 |
9,613 |
1,174 |
||||||||||||
|
Professional services |
1,336 |
975 |
1,214 |
361 |
122 |
2,311 |
2,273 |
38 |
||||||||||||
|
Occupancy and equipment |
588 |
572 |
545 |
16 |
43 |
1,160 |
1,158 |
2 |
||||||||||||
|
Data processing and communication |
404 |
397 |
354 |
7 |
50 |
801 |
713 |
88 |
||||||||||||
|
Other |
1,300 |
1,148 |
1,035 |
152 |
265 |
2,448 |
1,967 |
481 |
||||||||||||
|
Total non-interest expense |
9,013 |
8,494 |
7,929 |
519 |
1,084 |
17,507 |
15,724 |
1,783 |
||||||||||||
|
Net Income Before Provision for Income Taxes |
10,042 |
10,131 |
10,120 |
(89) |
(78) |
20,172 |
19,776 |
396 |
||||||||||||
|
Provision for Income Taxes |
2,757 |
2,783 |
2,438 |
(26) |
319 |
5,540 |
5,065 |
475 |
||||||||||||
|
Net Income |
$ 7,285 |
$ 7,348 |
$ 7,682 |
$ (63) |
$ (397) |
$ 14,632 |
$ 14,711 |
$ (79) |
||||||||||||
|
MISSION BANCORP |
||||||||||
|
FINANCIAL HIGHLIGHTS |
||||||||||
|
(Unaudited) |
||||||||||
|
(Dollars in thousands, except per share data) |
||||||||||
|
As of or for the Three Months Ended |
||||||||||
|
June 30, 2024 |
March 31, 2024 |
December 31, 2023 |
June 30, 2023 |
|||||||
|
Ratio of total loans to total deposits |
82.97 % |
86.79 % |
84.25 % |
84.22 % |
||||||
|
Return on average assets |
1.77 % |
1.80 % |
1.89 % |
1.99 % |
||||||
|
Return on average equity |
17.35 % |
18.36 % |
20.87 % |
22.69 % |
||||||
|
Net interest margin |
4.47 % |
4.55 % |
4.58 % |
4.68 % |
||||||
|
Efficiency ratio |
47.30 % |
44.01 % |
41.68 % |
42.86 % |
||||||
|
Non-interest expense as a percent of average assets |
2.19 % |
2.08 % |
1.94 % |
2.06 % |
||||||
|
Non-interest income as a percent of average assets |
0.38 % |
0.39 % |
0.33 % |
0.37 % |
||||||
|
Community Bank Leverage Ratio |
11.81 % |
11.59 % |
11.33 % |
10.97 % |
||||||
|
Weighted average shares outstanding – basic* |
2,629,647 |
2,611,832 |
2,599,743 |
2,629,647 |
||||||
|
Weighted average shares outstanding – diluted* |
2,671,703 |
2,656,774 |
2,669,704 |
2,639,744 |
||||||
|
Shares outstanding at period end – basic* |
2,633,312 |
2,622,649 |
2,599,531 |
2,600,110 |
||||||
|
Earnings per share – basic |
$ 2.77 |
$ 2.81 |
$ 2.99 |
$ 2.92 |
||||||
|
Earnings per share – diluted |
$ 2.73 |
$ 2.77 |
$ 2.91 |
$ 2.91 |
||||||
|
Total assets |
$ 1,693,758 |
$ 1,640,121 |
$ 1,651,969 |
$ 1,579,420 |
||||||
|
Loans and leases net of deferred fees |
$ 1,231,905 |
$ 1,229,803 |
$ 1,210,416 |
$ 1,163,416 |
||||||
|
Noninterest-bearing demand deposits |
$ 619,278 |
$ 612,876 |
$ 645,256 |
$ 663,396 |
||||||
|
Total deposits |
$ 1,484,726 |
$ 1,416,964 |
$ 1,436,767 |
$ 1,381,348 |
||||||
|
Noninterest-bearing deposits as a percentage total deposits |
41.71 % |
43.25 % |
44.91 % |
48.03 % |
||||||
|
Average total assets |
$ 1,655,220 |
$ 1,645,777 |
$ 1,633,606 |
$ 1,545,957 |
||||||
|
Average total equity |
$ 168,845 |
$ 160,998 |
$ 147,914 |
$ 135,776 |
||||||
|
Shareholders’ equity / total assets |
10.25 % |
10.06 % |
9.49 % |
8.81 % |
||||||
|
Book value per share |
$ 65.94 |
$ 62.94 |
$ 60.29 |
$ 53.53 |
||||||
|
*Outstanding shares adjusted for 5% dividend declared on April 25, 2024. |
||||||||||
|
MISSION BANCORP |
|||||||||||||||
|
AVERAGE BALANCES AND RATES |
|||||||||||||||
|
(Unaudited) |
|||||||||||||||
|
(Dollars in thousands) |
|||||||||||||||
|
For the Quarter Ended |
For the Quarter Ended |
For the Quarter Ended |
|||||||||||||
|
June 30, 2024 |
March 31, 2024 |
June 30, 2023 |
|||||||||||||
|
Average |
Income / |
Yield / |
Average |
Income / |
Yield / |
Average |
Income / |
Yield / |
|||||||
|
Balance |
Expense |
Rate |
Balance |
Expense |
Rate |
Balance |
Expense |
Rate |
|||||||
|
Assets |
|||||||||||||||
|
Interest earning deposits in other banks |
$ 103,840 |
$ 1,386 |
5.37 % |
$ 109,357 |
$ 1,442 |
5.31 % |
$ 52,199 |
$ 655 |
5.04 % |
||||||
|
Investment securities |
236,055 |
2,458 |
4.19 % |
238,677 |
2,584 |
4.36 % |
256,025 |
2,332 |
3.65 % |
||||||
|
Loans |
1,223,791 |
19,790 |
6.50 % |
1,206,486 |
19,319 |
6.44 % |
1,146,727 |
17,428 |
6.10 % |
||||||
|
Other earning assets |
9,000 |
182 |
8.17 % |
8,971 |
155 |
6.92 % |
8,533 |
128 |
6.01 % |
||||||
|
Total Earning Assets |
1,572,686 |
23,816 |
6.09 % |
1,563,491 |
23,500 |
6.05 % |
1,463,484 |
20,543 |
5.63 % |
||||||
|
Non-interest earning assets |
82,534 |
82,286 |
82,473 |
||||||||||||
|
Total Assets |
$ 1,655,220 |
$ 1,645,777 |
$ 1,545,957 |
||||||||||||
|
Liabilities and Capital |
|||||||||||||||
|
Interest-bearing deposits |
|||||||||||||||
|
Interest-bearing transaction accounts |
$ 701,837 |
$ 5,169 |
2.96 % |
$ 684,759 |
$ 4,498 |
2.64 % |
$ 638,970 |
$ 2,932 |
1.84 % |
||||||
|
Time deposits |
76,666 |
729 |
3.83 % |
73,280 |
675 |
3.71 % |
26,197 |
55 |
0.84 % |
||||||
|
1031 Exchange deposits |
47,730 |
74 |
0.62 % |
44,932 |
124 |
1.11 % |
30,315 |
24 |
0.32 % |
||||||
|
Total interest-bearing deposits |
826,233 |
5,972 |
2.91 % |
802,971 |
5,297 |
2.65 % |
695,482 |
3,011 |
1.74 % |
||||||
|
Borrowed funds |
|||||||||||||||
|
Other borrowings |
6,651 |
81 |
4.87 % |
20,000 |
234 |
4.71 % |
15,824 |
186 |
4.72 % |
||||||
|
Subordinated debt |
21,888 |
268 |
4.92 % |
21,870 |
268 |
4.92 % |
21,817 |
268 |
4.92 % |
||||||
|
Total interest-bearing liabilities |
854,772 |
6,321 |
2.97 % |
844,841 |
5,799 |
2.76 % |
733,123 |
3,465 |
1.90 % |
||||||
|
Noninterest-bearing deposits |
616,242 |
622,225 |
661,669 |
||||||||||||
|
Total Funding |
1,471,014 |
6,321 |
1.73 % |
1,467,066 |
5,799 |
1.59 % |
1,394,792 |
3,465 |
1.00 % |
||||||
|
Other noninterest-bearing liabilities |
15,361 |
17,713 |
15,388 |
||||||||||||
|
Total Liabilities |
1,486,375 |
1,484,779 |
1,410,180 |
||||||||||||
|
Total Capital |
168,845 |
160,998 |
135,777 |
||||||||||||
|
Total Liabilities and Capital |
$ 1,655,220 |
$ 1,645,777 |
$ 1,545,957 |
||||||||||||
|
Net Interest Margin |
4.47 % |
4.55 % |
4.68 % |
||||||||||||
|
Net Interest Spread |
4.36 % |
4.46 % |
4.63 % |
||||||||||||
|
MISSION BANCORP |
|||||||||||
|
AVERAGE BALANCES AND RATES |
|||||||||||
|
(Unaudited) |
|||||||||||
|
(Dollars in thousands) |
|||||||||||
|
For the Six Months Ended |
For the Six Months Ended |
||||||||||
|
June 30, 2024 |
June 30, 2023 |
||||||||||
|
Average |
Income / |
Yield / |
Average |
Income / |
Yield / |
||||||
|
Balance |
Expense |
Rate |
Balance |
Expense |
Rate |
||||||
|
Assets |
|||||||||||
|
Interest earning deposits in other banks |
$ 106,599 |
$ 2,828 |
5.34 % |
$ 66,804 |
$ 1,543 |
4.66 % |
|||||
|
Investment securities |
237,366 |
5,043 |
4.27 % |
254,772 |
4,518 |
3.58 % |
|||||
|
Loans |
1,215,138 |
39,108 |
6.47 % |
1,115,790 |
33,156 |
5.99 % |
|||||
|
Other earning assets |
8,986 |
337 |
7.54 % |
7,992 |
228 |
5.74 % |
|||||
|
Total Earning Assets |
1,568,089 |
47,316 |
6.07 % |
1,445,358 |
39,445 |
5.50 % |
|||||
|
Non-interest earning assets |
82,409 |
83,173 |
|||||||||
|
Total Assets |
$ 1,650,498 |
$ 1,528,531 |
|||||||||
|
Liabilities and Capital |
|||||||||||
|
Interest-bearing deposits |
|||||||||||
|
Interest-bearing transaction accounts |
$ 693,298 |
$ 9,668 |
2.80 % |
$ 605,313 |
$ 4,589 |
1.53 % |
|||||
|
Time deposits |
74,973 |
1,404 |
3.77 % |
25,149 |
90 |
0.72 % |
|||||
|
1031 Exchange deposits |
46,331 |
198 |
0.86 % |
31,604 |
29 |
0.19 % |
|||||
|
Total interest-bearing deposits |
814,602 |
11,270 |
2.78 % |
662,066 |
4,708 |
1.43 % |
|||||
|
Borrowed funds |
|||||||||||
|
Other borrowings |
13,325 |
315 |
4.75 % |
13,657 |
337 |
4.97 % |
|||||
|
Subordinated debt |
21,879 |
535 |
4.92 % |
21,808 |
535 |
4.95 % |
|||||
|
Total interest-bearing liabilities |
849,806 |
12,120 |
2.87 % |
697,531 |
5,580 |
1.61 % |
|||||
|
Noninterest-bearing deposits |
619,233 |
684,269 |
|||||||||
|
Total Funding |
1,469,039 |
12,120 |
1.66 % |
1,381,800 |
5,580 |
0.81 % |
|||||
|
Other noninterest-bearing liabilities |
16,538 |
14,836 |
|||||||||
|
Total Liabilities |
1,485,577 |
1,396,636 |
|||||||||
|
Total Capital |
164,921 |
131,895 |
|||||||||
|
Total Liabilities and Capital |
$ 1,650,498 |
$ 1,528,531 |
|||||||||
|
Net Interest Margin |
4.51 % |
4.72 % |
|||||||||
|
Net Interest Spread |
4.41 % |
4.69 % |
|||||||||
|
MISSION BANCORP |
|||||||||||||||||
|
LOAN DETAIL |
|||||||||||||||||
|
(Unaudited) |
|||||||||||||||||
|
(Dollars in thousands) |
|||||||||||||||||
|
Variance |
|||||||||||||||||
|
June 30, 2024 |
March 31, 2024 |
December 31, 2023 |
June 30, 2023 |
06/24 – 03/24 |
06/24 – 06/23 |
||||||||||||
|
Loans |
|||||||||||||||||
|
Construction and land development |
$ 50,664 |
$ 50,727 |
$ 49,682 |
$ 53,393 |
$ (63) |
$ (2,729) |
|||||||||||
|
Secured by farmland |
132,898 |
141,391 |
142,778 |
138,581 |
(8,493) |
(5,683) |
|||||||||||
|
Residential 1 to 4 units |
52,022 |
49,902 |
49,299 |
45,210 |
2,120 |
6,812 |
|||||||||||
|
Multi-family |
34,016 |
35,857 |
35,808 |
34,370 |
(1,841) |
(354) |
|||||||||||
|
Owner occupied commercial real estate |
516,043 |
503,491 |
493,706 |
475,269 |
12,552 |
40,774 |
|||||||||||
|
Non-owner occupied commercial real estate |
193,357 |
188,085 |
183,047 |
182,892 |
5,272 |
10,465 |
|||||||||||
|
Commercial and industrial |
159,636 |
173,185 |
165,455 |
155,507 |
(13,549) |
4,129 |
|||||||||||
|
Agricultural production |
95,702 |
89,406 |
92,679 |
79,470 |
6,296 |
16,232 |
|||||||||||
|
Other loans |
120 |
165 |
233 |
1,176 |
(45) |
(1,056) |
|||||||||||
|
Net Deferred Fees-Costs |
(2,553) |
(2,406) |
(2,271) |
(2,451) |
(147) |
(102) |
|||||||||||
|
Total Loans |
$ 1,231,905 |
# |
$ 1,229,803 |
$ 1,210,416 |
$ 1,163,417 |
$ 2,102 |
$ 68,488 |
||||||||||
|
MISSION BANCORP |
||||||||||||
|
Credit Quality |
||||||||||||
|
(Unaudited) |
||||||||||||
|
(Dollars in thousands) |
||||||||||||
|
June 30, 2024 |
March 31, 2024 |
December 31, 2023 |
June 30, 2023 |
|||||||||
|
Asset quality |
||||||||||||
|
Loans past due 90 days or more and accruing interest |
$ – |
$ – |
$ – |
$ 104 |
||||||||
|
Nonaccrual loans |
$ 489 |
$ 714 |
$ 350 |
$ – |
||||||||
|
Restructured loans |
||||||||||||
|
Nonperforming restructured loans |
$ – |
$ – |
$ – |
$ – |
||||||||
|
Performing restructured loans |
$ – |
$ – |
$ – |
$ – |
||||||||
|
Other real estate owned |
$ – |
$ – |
$ – |
$ – |
||||||||
|
Total nonperforming assets |
$ 489 |
$ 714 |
$ 350 |
$ – |
||||||||
|
Allowance for credit losses to total loans |
1.52 % |
1.54 % |
1.50 % |
1.48 % |
||||||||
|
Allowance for credit losses to nonperforming loans |
3817.79 % |
2651.40 % |
5201.71 % |
N/A |
||||||||
|
Nonaccrual loans to total loans |
0.04 % |
0.06 % |
0.03 % |
0.00 % |
||||||||
|
Nonperforming assets to total assets |
0.03 % |
0.04 % |
0.02 % |
0.00 % |
||||||||
SOURCE Mission Bank