Mission Bancorp Reports Second Quarter Earnings of $7.3 Million. Annualized Deposit Growth of 19%.

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

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