BAKERSFIELD, Calif., Jan. 28, 2025 /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 $7.7 million, or $2.85 per diluted common share, for the fourth quarter of 2024, compared to net income available to common shareholders of $7.8 million, or $2.91 per diluted common share, for the fourth quarter of 2023, and net income available to common shareholders of $7.8 million, or $2.93 per diluted common share, for the linked quarter. Unaudited net income for the year 2024 reached $30.1 million, or $11.27 per diluted common share, compared to net income available to common shareholders of $30.5 million for 2023, or $11.54 per diluted common share.
“We closed the year sustaining our double-digit annualized deposit growth trend of the past three quarters, reporting a 15% annual increase despite the pressure of elevated rates and the intense competition for deposits, even from the US treasury department. With annual earnings of $30.1 million, it’s clear that our organization can weather the challenges of our environment,” said President and CEO AJ Antongiovanni. “We are proud of these results and thank our customers for the trust they place in our team. Our hard-working bankers, with their expertise and dedication to concierge level banking services, have made 2024 a year to celebrate!”
Fourth Quarter 2024 Financial Highlights
Gross loans increased by $80.4 million, or 6.6%, to $1.29 billion as of December 31, 2024, compared to $1.21 billion at December 31, 2023, and increased by 3.7%, or $46.0 million, compared to September 30, 2024, balances.
Total deposits increased by $212.6 million, or 14.8%, to $1.65 billion as of December 31, 2024, compared with $1.44 billion a year earlier, and increased by $41.5 million, or 2.6%, from $1.61 billion as of September 30, 2024. Noninterest-bearing deposits were $646.1 million and represent 39.2% of total deposits at December 31, 2024.
The allowance for credit losses (“ACL”) as a percentage of gross loans was 1.50% as of December 31, 2024, unchanged compared to December 31, 2023.
Credit quality remains strong with nonaccrual loans representing 0.08% of total gross loans at December 31, 2024, up from 0.03% as of December 31, 2023.
The Community Bank Leverage Ratio for the Bank as of December 31, 2024, was 11.07%, compared to 11.33% at December 31, 2023.
Net Income Available to Common Shareholders
Net income available to common shareholders for the fourth quarter of 2024 was $7.7 million, or $2.85 per diluted common share, compared with $7.8 million, or $2.93 per diluted common share, for the linked quarter ended September 30, 2024. Net income available to common shareholders was $7.8 million, or $2.91 per diluted common share, for the fourth quarter of 2023. Net income available to common shareholders decreased $0.1 million, compared to both the linked quarter and same prior year period, or 2.3% and 1.5%, respectively.
Notable variances comparing to the linked quarter include decreases in non-interest income and net interest income, which were partially offset by a decrease in non-interest expense. Compared to the fourth quarter of 2023, increases in the provision for credit losses and non-interest expense were partially offset by an increase in non-interest income.
Net income available to common shareholders for the twelve months ended December 31, 2024, decreased by $0.3 million, or 1.1%, and was $30.1 million, or $11.27 per diluted common share, compared to $30.5 million, or $11.54 per diluted common share for the twelve months ended December 31, 2023. Compared to the twelve months ended December 31, 2023, increases in net interest income and non-interest income were partially offset by an increase in non-interest expense.
Net Interest Income
Net interest income was $17.7 million, or 3.96%, of average earning assets (“net interest margin”), for the fourth quarter of 2024, compared with $17.8 million, or a net interest margin of 4.58%, for the same period a year earlier, and $18.2 million, or a net interest margin of 4.31%, for the quarter ended September 30, 2024.
Net interest income marginally decreased by $0.1 million, or 0.4%, compared to the same prior year period, due primarily to an increase in interest expense on deposits, which more than offset an increase in interest income. Interest expense increased $3.1 million compared to the fourth quarter of 2023, due to increased costs on interest-bearing deposits and average balance growth, net of decreased costs associated with other borrowings. Loan interest income and fee accretion increased by $1.7 million compared to the same prior year period, due primarily to growth in the loan portfolio coupled with a marginal increase in yields on loans. Additionally, the Company also experienced increased interest income from interest earning deposits in other banks of $1.5 million.
Net interest income decreased for the quarter ended December 2024, compared to the linked quarter by $0.5 million, or 2.5%, due primarily to an increase in expense on deposits which more than offset an increase in interest income. Interest expense on deposits increased $0.7 million, for the current quarter, compared to the linked quarter, due to higher average balances and increased costs on interest bearing deposits. Interest income increased $0.2 million, for the current quarter compared to the linked quarter, due primarily to higher average balances on interest earning deposits in other banks and loans, partially offset by lower yields on earnings assets.
The net interest margin was 3.96% for the quarter ended December 31, 2024, compared to 4.58% for the same prior year period, and 4.31% for the linked quarter ended September 30, 2024. During the past year, asset yields have declined 10 basis points while the cost of interest-bearing liabilities has risen 71 basis points, contributing to the 62 basis point decline in the quarterly net interest margin. Additionally, the average balances of interest-bearing liabilities increased 24.7%, outpacing the growth in interest-earning assets of 15.4% over the last year.
The 35 basis point decline in the net interest margin for the fourth quarter of 2024, compared to the linked quarter, is primarily attributable to the 29 basis point decline in asset yields and the 7 basis point rise in the Company’s cost of interest-bearing liabilities, which led to net interest margin compression during the quarter. The Federal Reserve began its easing cycle in the latter stages of the linked quarter, impacting the shorter end of the yield curve which lowered the yield on interest bearing deposits in other banks and the Company’s variable rate loans. While average interest-earning assets have grown $101.6 million, outpacing the $65.6 million growth in average interest-bearing liabilities during the quarter, the decline in asset yields primarily contributed to margin compression during the quarter.
The yield on loans increased by 13 basis points to 6.38%, while the yield on interest earning deposits in other banks and investment securities, decreased by 76 basis points to 4.77%, and by 45 basis points to 3.92%, respectively, compared to the same prior year period. Additionally, average balances on loans increased $85.4 million, or 7.27%, average balances on interest earning deposits in other banks increased $146.1 million, or 117.3%, and average balances on investment securities increased $6.0 million, or 2.55%, compared to the same prior year period. The cost of interest-bearing deposits increased 80 basis points to 3.20%, while the average balances of interest-bearing deposits increased $222.3 million, or 28.6%, compared to the same period last year.
The yield on loans, interest earning deposits in other banks, and investment securities, decreased by 17 basis points to 6.38%, 68 basis points to 4.77%, and 40 basis points to 3.92%, respectively, for the quarter ended December 31, 2024, compared to the linked quarter. Additionally, average balances on loans increased $16.3 million, or 1.31%, average balances on interest earning deposits in other banks increased $78.6 million, or 40.9%, and average balances on investment securities increased $6.7 million, or 2.85%, compared to the linked quarter. The cost of interest-bearing deposits increased 8 basis points to 3.20%, while the average balances on interest-bearing deposits increased $65.6 million, or 7.02% compared to the linked quarter.
The cost of funds was 1.99% for the quarter ended December 31, 2024, an increase of 58 basis points compared to 1.41%, for the same prior year period, and an increase of 6 basis points compared to 1.93%, for the linked quarter ended September 30, 2024. The increase in the Company’s cost of funds is generally attributable to the higher short term rate environment and increased competition for deposits. 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 the proportion of their operating account balances versus interest-bearing account balances. However, 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 September 30, 2024, Mission’s cost of funds for the third quarter of 2024, was 39 basis points lower than the 2.32% peer average.
For the twelve months ended December 31, 2024, the Company’s net interest income increased $1.5 million to $71.1 million, while the net interest margin declined 36 basis points to 4.31%, compared to net interest income of $69.6 million and net interest margin of 4.67%, for the twelve months ended December 31, 2023. The decline in net interest margin is primarily the result of a 102 basis point increase in the cost of total interest-bearing liabilities, which outpaced the 32 basis point increase in earning asset yields during 2024.
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 on a portion of its fixed rate loan and investment securities portfolios. For the current quarter ending on December 31, 2024, the linked quarter, and the fourth quarter of 2023, the interest rate swap contract associated with the loan portfolio generated an additional $0.1 million, $0.1 million, and $0.2 million in interest income, respectively. For the current quarter ending on December 31, 2024, the linked quarter, and the fourth quarter of 2023, the interest rate swap contract associated with the investment securities portfolio generated an additional $0.1 million, $0.2 million, and $0.2 million in interest income, respectively. The interest rate swap contracts on the loan and investment securities portfolios generated $0.2 million total of additional interest income and 4 basis points of additional earning asset yield during the quarter ended December 31, 2024, compared to $0.4 million total additional interest income and 10 basis points of additional earning asset yield for the same prior year period. Combined, the interest rate swap contract on the loan and investment securities portfolios generated $1.3 million total of additional interest income and 8 basis points of additional earning asset yield during the year ended December 31, 2024, compared to $0.7 million and 9 basis points of additional earning asset yield for the year ended December 31, 2023.
Provision for Credit Losses
A $0.4 million provision for credit losses was recorded for the quarter ended December 31, 2024, unchanged compared to the linked quarter, and $0.3 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 decreased $0.9 million, or 34.6%, to $1.6 million for the quarter ended December 31, 2024, compared to $2.5 million in the linked quarter, and increased by $0.3 million, or 19.7%, compared to $1.3 million for the same period a year earlier. The decrease in non-interest income compared to the linked quarter was primarily due to decreases in SBA servicing fees and gain on sale of loans. When compared to the same prior year period, a decrease in the loss on sale of securities was partially offset by a decrease in service charges, fees, and other income.
Non-interest income increased $1.8 million, or 33.5%, to $7.2 million during the twelve months ended December 31, 2024, compared to the twelve months ended December 31, 2023. The increase in non-interest income was primarily due to increased SBA servicing fees and gain on sale of loans, decreased loss on sale of securities, and increased Farmer Mac referral and servicing fees, which were partially offset by decreased gain on sale of premises and equipment.
Non-Interest Expense
Non-interest expense decreased by $1.1 million, or 11.9%, to $8.1 million for the quarter ended December 31, 2024, compared to $9.2 million for the linked quarter, and nominally increased by $0.1 million, or 1.8%, compared to $8.0 million for the quarter ended December 31, 2023.
The decrease in non-interest expense for the fourth quarter of 2024 compared to the linked quarter, was primarily due to a $0.5 million decrease in professional services expense and a $0.4 million decrease in salaries and benefits expense, associated with year-end legal and incentive compensation accrual adjustments, respectively. The nominal increase in non-interest expense for the fourth quarter of 2024 compared to the fourth quarter of 2023 was primarily due to a $0.5 million increase in salaries and benefits expense attributable to new hires, net of terminations, increased base compensation, and increased incentive compensation accruals, which were partially offset by a $0.3 million decrease in professional services expense.
Non-interest expense increased $3.2 million, or 10.2%, to $34.9 million, for the twelve months ended December 31, 2024, compared to $31.6 million for 2023. The increase in non-interest expense is primarily attributable to an increase of $2.5 million in salaries and benefits expense and a $0.6 million increase in other non-interest expense. The increase in salaries and benefits expense is primarily due to new hire activity, net of terminations, increases in base compensation, incentive compensation, and associated payroll taxes and benefit expenses. Notable variances in other non-interest expense are increased insured cash sweep fees, increased marketing expenses associated with the Company’s 25th anniversary brand refresh, and increased SBA loan fees.
Operating Efficiency
The Company’s operating efficiency ratio increased to 42.0% for the fourth quarter of 2024, compared to 41.7% for the fourth quarter of 2023, and decreased from 44.7% compared to the linked quarter. Total non-interest expense as a percentage of average assets, another measure of the Company’s efficiency, was 1.74% for the fourth quarter of 2024, compared to 1.94% for the fourth quarter of 2023, and 2.08% for the quarter ended September 30, 2024.
The Company’s operating efficiency ratio for the twelve months ended December 31, 2024, was 44.5%, up from 42.2% for the prior twelve months ended December 31, 2023. Total non-interest expense as a percentage of average assets, was unchanged at 2.01% for the twelve months ended December 31, 2024.
Income Taxes
Income tax expense was $3.2 million for the fourth quarter of 2024, compared to $3.1 million for the quarter ended December 31, 2023, and $3.2 million for the linked quarter ended September 30, 2024. The Company’s effective tax rate for the fourth quarter of 2024 was 29.1%, compared to 28.8% for the same period a year ago, and 28.9% for the quarter ended September 30, 2024.
Income tax expense was $11.9 million for the twelve months December 31, 2024, compared to $11.5 million from the prior year. The Company’s effective tax rate for the year ended December 31, 2024, was 28.3%, compared to 27.4% for the prior year.
Asset and Equity Returns
The return on average equity for the fourth quarter of 2024 was 16.3%, down from 20.9% for the same prior year period, and down from 17.4% for the linked quarter. The quarterly return on average assets for the fourth quarter of 2024 was 1.64%, down from 1.89% for the same prior year period, and down from 1.77% for the linked quarter.
The decline in the quarterly returns on both average equity and average assets for the quarter ended December 31, 2024, compared to the fourth quarter of 2023, is primarily attributable to the 26.7% growth in average equity and the 14.1% growth in average assets.
The decline in the quarterly returns on both average equity and average assets for the fourth quarter of 2024, compared to the linked quarter, is primarily attributable to the growth in quarterly average assets and quarterly average equity coupled with a marginal decline in quarterly net income.
The annual return on average equity for the twelve months ended December 31, 2024, was 17.3%, down from 22.0% for the twelve months ended December 31, 2023. The annual return on average assets for the twelve months ended December 31, 2024, was 1.74%, down from 1.93% for the prior year. The decline in returns is primarily attributable to the growth in average assets and average equity.
Balance Sheet
Total assets increased by $223.9 million, or 13.6%, to $1.88 billion at December 31, 2024, compared to December 31, 2023, and increased by $45.1 million, or 2.5%, compared to September 30, 2024. Cash and cash equivalents increased by $143.7 million, or 95.9%, to $293.5 million at December 31, 2024, compared to the same prior year period, and decreased by $11.8 million, or 3.9%, compared to September 30, 2024. The significant increase in the Company’s cash position over the last year is primarily the result of robust deposit growth, net of the Federal Reserve Bank borrowing facility repayment upon maturity, and earnings, which outpaced loan portfolio growth. The decrease in the Company’s cash position over the past quarter is primarily due to strong loan portfolio growth, which outpaced deposit growth and declines in accumulated other comprehensive loss for the quarter.
Investment securities increased by $2.2 million or 0.9%, to $244.9 million at December 31, 2024, compared to $242.7 million at December 31, 2023, and increased by $10.8 million, or 4.6%, compared to $234.1 million at September 30, 2024. The increase in the investment securities portfolio over the past year was primarily due to the purchase of new securities at higher yields to supplement lending demand and to replace the amortization of the bond portfolio. The increase in the investment portfolio during the fourth quarter of 2024, compared to the linked quarter, is generally attributable to the strategic purchase of new agency collateralized mortgage obligations at higher yields, net of, increased unrealized losses on the investment securities portfolio attributable to market rate changes during the quarter and repayment and amortization of the bond portfolio.
Loans increased by $80.4 million, or 6.6%, to $1.29 billion at December 31, 2024, compared to December 31, 2023, and increased by $46.0 million, or 3.7%, compared to September 30, 2024. Loan growth during the last year has been concentrated in owner and non-owner occupied commercial real estate, residential 1 to 4 units, and construction and land development segments of the loan portfolio, which were partially offset by the contraction in loans secured by farmland. Loan growth during the last quarter has been diversified across the portfolio, with notable growth in residential 1 to 4 units, commercial and industrial, agricultural production, and multi-family segments of the loan portfolio.
Total deposits increased by $212.6 million, or 14.8%, to $1.65 billion as of December 31, 2024, from $1.44 billion as of December 31, 2023, and increased by $41.5 million, or 2.6%, from $1.61 billion at September 30, 2024. Noninterest-bearing deposits increased by $0.9 million, or 0.1%, during the last year, and increased by $18.7 million, or 3.0%, since September 30, 2024. The marginal increase 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. Non-interest-bearing deposits experienced renewed growth during the last quarter, driven by an increase in new account openings and the stabilization of deposit costs. Noninterest-bearing deposits represented 39.2% of total deposits on December 31, 2024.
Total shareholders’ equity was $189.5 million at December 31, 2024, an increase of $32.8 million, or 20.9%, compared to December 31, 2023, and an increase of $4.7 million, or 2.5%, compared to September 30, 2024, due primarily to quarterly earnings, net of changes in accumulated other comprehensive income or loss. The accumulated other comprehensive loss component of equity increased $3.3 million during the past quarter due to a $4.4 million increase in the accumulated other comprehensive loss on the investment securities portfolio, partially offset by a $1.1 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 $0.6 million during the past year resulting from a $0.1 million increase in the accumulated other comprehensive loss on the investment securities portfolio, partially offset by a $0.7 million increase in the accumulated other comprehensive gain associated with the interest rate swap contract. The rise in accumulated other comprehensive loss on the investment securities portfolio is the result of a decrease in the fair market value of our securities portfolio attributable to a rise in interest rates and not related to credit quality.
Nonperforming assets were $1.1 million at December 31, 2024, up from $0.4 million compared to both September 30, 2024, and December 31, 2023. Nonperforming assets as a percentage of total assets were 0.06% at December 31, 2024, up from 0.02% compared to both September 30, 2024, and December 31, 2023.
Allowance for Credit Losses
The allowance for credit losses (“ACL”) as a percentage of gross loans decreased to 1.50% at December 31, 2024, from 1.53% at September 30, 2024, and was unchanged from December 30, 2023. The relatively unchanged ACL as a percentage of gross loans over the last twelve months reflects the credit quality strength of the loan portfolio and prudent management amid ongoing economic uncertainties stemming from sustain inflationary pressures and elevated 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 11.07%, at December 31, 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 decreased by 26 basis points from 11.33%, and decreased by 34 basis points from 11.41%, as of the periods ended December 31, 2023, and September 30, 2024, respectively. Earnings have remained strong over the past year, however, the growth in average assets, coupled with dividends paid to the Company during 2024, have resulted in a decrease in the Bank’s Community Bank Leverage ratio compared to the linked quarter and prior year.
Stock Repurchase Program
The Company announced on October 28, 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 October 25, 2024, and the Company extended the Plan for an additional six months, through April 24, 2025. 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.
During the fourth quarter of 2024 the Company repurchased 2,090 shares under the 2022 10b5-1 Plan at an average price of $88.27. Since Plan inception the Company has repurchased 7,771 shares at an average price of $84.93.
About Mission Bancorp and Mission Bank
With $1.9 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.
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MISSION BANCORP |
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CONSOLIDATED BALANCE SHEETS |
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|
(Unaudited) |
|||||||||||||||||||||
|
(Dollars in thousands) |
|||||||||||||||||||||
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Variance |
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|
December 31, 2024 |
September 30, 2024 |
June 30, 2024 |
December 31, 2023 |
12/24 – 09/24 |
12/24 – 12/23 |
||||||||||||||||
|
Assets |
|||||||||||||||||||||
|
Cash and due from banks |
$ 46,596 |
$ 53,048 |
$ 47,821 |
$ 39,721 |
$ (6,452) |
$ 6,875 |
|||||||||||||||
|
Interest earning deposits in other banks |
246,872 |
252,204 |
129,982 |
110,062 |
(5,332) |
136,810 |
|||||||||||||||
|
Total cash and cash equivalents |
293,468 |
305,252 |
177,803 |
149,783 |
(11,784) |
143,685 |
|||||||||||||||
|
Interest earning deposits maturing over ninety days |
490 |
490 |
490 |
490 |
– |
– |
|||||||||||||||
|
Investment securities available-for-sale, at fair value |
244,922 |
234,146 |
234,130 |
242,681 |
10,776 |
2,241 |
|||||||||||||||
|
Loans |
1,290,802 |
1,244,803 |
1,231,905 |
1,210,416 |
45,999 |
80,386 |
|||||||||||||||
|
Allowance for credit losses |
(19,423) |
(19,022) |
(18,669) |
(18,206) |
(401) |
(1,217) |
|||||||||||||||
|
Loans, net |
1,271,379 |
1,225,781 |
1,213,236 |
1,192,210 |
45,598 |
79,169 |
|||||||||||||||
|
Premises and equipment, net |
2,785 |
2,873 |
2,997 |
3,175 |
(88) |
(390) |
|||||||||||||||
|
Bank owned life insurance |
21,899 |
21,743 |
21,588 |
21,285 |
156 |
614 |
|||||||||||||||
|
Deferred tax asset, net |
16,364 |
13,909 |
15,230 |
15,594 |
2,455 |
770 |
|||||||||||||||
|
Interest receivable and other assets |
24,549 |
26,566 |
28,284 |
26,751 |
(2,017) |
(2,202) |
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|
Total Assets |
$ 1,875,856 |
$ 1,830,760 |
$ 1,693,758 |
$ 1,651,969 |
$ 45,096 |
$ 223,887 |
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Liabilities and Shareholders’ Equity |
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Deposits |
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|
Noninterest-bearing demand |
$ 646,129 |
$ 627,404 |
$ 619,278 |
$ 645,256 |
$ 18,725 |
$ 873 |
|||||||||||||||
|
Interest bearing |
1,003,196 |
980,406 |
865,448 |
791,511 |
22,790 |
211,685 |
|||||||||||||||
|
Total deposits |
1,649,325 |
1,607,810 |
1,484,726 |
1,436,767 |
41,515 |
212,558 |
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Other borrowings |
– |
– |
– |
20,000 |
– |
(20,000) |
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|
Subordinated debentures, net of issuance costs |
21,934 |
21,916 |
21,898 |
21,863 |
18 |
71 |
|||||||||||||||
|
Interest payable and other liabilities |
15,111 |
16,249 |
13,502 |
16,625 |
(1,138) |
(1,514) |
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|
Total Liabilities |
1,686,370 |
1,645,975 |
1,520,126 |
1,495,255 |
40,395 |
191,115 |
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|
Shareholders’ Equity |
|||||||||||||||||||||
|
Common stock |
89,496 |
89,182 |
88,880 |
76,965 |
314 |
12,531 |
|||||||||||||||
|
Retained earnings |
118,248 |
110,583 |
102,738 |
98,605 |
7,665 |
19,643 |
|||||||||||||||
|
Accumulated other comprehensive loss |
(18,258) |
(14,980) |
(17,986) |
(18,856) |
(3,278) |
598 |
|||||||||||||||
|
Total shareholders’ equity |
189,486 |
184,785 |
173,632 |
156,714 |
4,701 |
32,772 |
|||||||||||||||
|
Total Liabilities and Shareholders’ Equity |
$ 1,875,856 |
$ 1,830,760 |
$ 1,693,758 |
$ 1,651,969 |
$ 45,096 |
$ 223,887 |
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SBA Paycheck Protection Program Loans |
452 |
501 |
559 |
645 |
(49) |
(193) |
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MISSION BANCORP |
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CONSOLIDATED STATEMENTS OF INCOME |
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(Unaudited) |
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(Dollars in thousands) |
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Three Months Ended |
For the Twelve Months Ended |
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Variance |
Variance |
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|
December 31, 2024 |
September 30, 2024 |
December 31, 2023 |
12/24 – 09/24 |
12/24 – 12/23 |
December 31, 2024 |
December 31, 2023 |
12/24 – 12/23 |
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|
Interest and Dividend Income |
||||||||||||||||||||||||||||
|
Loans |
$ 20,233 |
$ 20,479 |
$ 18,521 |
$ (246) |
$ 1,712 |
$ 79,820 |
$ 69,950 |
$ 9,870 |
||||||||||||||||||||
|
Investment securities |
2,374 |
2,541 |
2,583 |
(167) |
(209) |
9,958 |
9,605 |
353 |
||||||||||||||||||||
|
Other |
3,433 |
2,780 |
1,925 |
653 |
1,508 |
9,378 |
5,243 |
4,135 |
||||||||||||||||||||
|
Total interest and dividend income |
26,040 |
25,800 |
23,029 |
240 |
3,011 |
99,156 |
84,798 |
14,358 |
||||||||||||||||||||
|
Interest Expense |
||||||||||||||||||||||||||||
|
Other deposits |
7,044 |
6,395 |
4,241 |
649 |
2,803 |
23,304 |
12,474 |
10,830 |
||||||||||||||||||||
|
Time deposits |
991 |
938 |
466 |
53 |
525 |
3,334 |
852 |
2,482 |
||||||||||||||||||||
|
Total interest expense on deposits |
8,035 |
7,333 |
4,707 |
702 |
3,328 |
26,638 |
13,326 |
13,312 |
||||||||||||||||||||
|
Other borrowings |
– |
– |
237 |
– |
(237) |
315 |
811 |
(496) |
||||||||||||||||||||
|
Subordinated debentures |
268 |
268 |
268 |
– |
– |
1,071 |
1,071 |
– |
||||||||||||||||||||
|
Total interest expense |
8,303 |
7,601 |
5,212 |
702 |
3,091 |
28,024 |
15,208 |
12,816 |
||||||||||||||||||||
|
Net Interest Income |
17,737 |
18,199 |
17,817 |
(462) |
(80) |
71,132 |
69,590 |
1,542 |
||||||||||||||||||||
|
Provision for Credit Losses |
400 |
394 |
250 |
6 |
150 |
1,469 |
1,420 |
49 |
||||||||||||||||||||
|
Net Interest Income After Provision |
||||||||||||||||||||||||||||
|
for Credit Losses |
17,337 |
17,805 |
17,567 |
(468) |
(230) |
69,663 |
68,170 |
1,493 |
||||||||||||||||||||
|
Non-Interest Income |
||||||||||||||||||||||||||||
|
Gain on sale of premises and equipment |
– |
– |
26 |
– |
(26) |
– |
306 |
(306) |
||||||||||||||||||||
|
Service charges, fees and other income |
1,078 |
1,084 |
1,200 |
(6) |
(122) |
4,083 |
4,155 |
(72) |
||||||||||||||||||||
|
Farmer Mac referral and servicing fees |
363 |
345 |
389 |
18 |
(26) |
1,335 |
1,163 |
172 |
||||||||||||||||||||
|
SBA servicing fees and gain on sale of loans |
168 |
1,032 |
146 |
(864) |
22 |
1,841 |
528 |
1,313 |
||||||||||||||||||||
|
Loss on sale of securities |
– |
– |
(417) |
– |
417 |
(31) |
(737) |
706 |
||||||||||||||||||||
|
Total non-interest income |
1,609 |
2,461 |
1,344 |
(852) |
265 |
7,228 |
5,415 |
1,813 |
||||||||||||||||||||
|
Non-Interest Expense |
||||||||||||||||||||||||||||
|
Salaries and benefits |
5,047 |
5,402 |
4,498 |
(355) |
549 |
21,236 |
18,719 |
2,517 |
||||||||||||||||||||
|
Professional services |
1,018 |
1,555 |
1,319 |
(537) |
(301) |
4,884 |
4,887 |
(3) |
||||||||||||||||||||
|
Occupancy and equipment |
571 |
589 |
587 |
(18) |
(16) |
2,321 |
2,349 |
(28) |
||||||||||||||||||||
|
Data processing and communication |
402 |
418 |
431 |
(16) |
(29) |
1,621 |
1,510 |
111 |
||||||||||||||||||||
|
Other |
1,093 |
1,263 |
1,151 |
(170) |
(58) |
4,803 |
4,162 |
641 |
||||||||||||||||||||
|
Total non-interest expense |
8,131 |
9,227 |
7,986 |
(1,096) |
145 |
34,865 |
31,627 |
3,238 |
||||||||||||||||||||
|
Net Income Before Provision for Income Taxes |
10,815 |
11,039 |
10,925 |
(224) |
(110) |
42,026 |
41,958 |
68 |
||||||||||||||||||||
|
Provision for Income Taxes |
3,150 |
3,194 |
3,143 |
(44) |
7 |
11,884 |
11,489 |
395 |
||||||||||||||||||||
|
Net Income |
$ 7,665 |
$ 7,845 |
$ 7,782 |
$ (180) |
$ (117) |
$ 30,142 |
$ 30,469 |
$ (327) |
||||||||||||||||||||
|
MISSION BANCORP |
||||||||||||||
|
FINANCIAL HIGHLIGHTS |
||||||||||||||
|
(Unaudited) |
||||||||||||||
|
(Dollars in thousands, except per share data) |
||||||||||||||
|
As of or for the Three Months Ended |
For the Twelve Months Ended |
|||||||||||||
|
December 31, 2024 |
September 30, 2024 |
June 30, 2024 |
December 31, 2023 |
December 31, 2024 |
December 31, 2023 |
|||||||||
|
Ratio of total loans to total deposits |
78.26 % |
77.42 % |
82.97 % |
84.25 % |
78.26 % |
84.25 % |
||||||||
|
Return on average assets |
1.64 % |
1.77 % |
1.77 % |
1.89 % |
1.74 % |
1.93 % |
||||||||
|
Return on average equity |
16.27 % |
17.43 % |
17.30 % |
20.87 % |
17.31 % |
21.96 % |
||||||||
|
Net interest margin |
3.96 % |
4.31 % |
4.47 % |
4.58 % |
4.31 % |
4.67 % |
||||||||
|
Efficiency ratio |
42.03 % |
44.66 % |
47.30 % |
41.68 % |
44.49 % |
42.17 % |
||||||||
|
Non-interest expense as a percent of average assets |
1.74 % |
2.08 % |
2.19 % |
1.94 % |
2.01 % |
2.01 % |
||||||||
|
Non-interest income as a percent of average assets |
0.34 % |
0.56 % |
0.38 % |
0.33 % |
0.42 % |
0.34 % |
||||||||
|
Community Bank Leverage Ratio |
11.07 % |
11.41 % |
11.81 % |
11.33 % |
11.07 % |
11.33 % |
||||||||
|
Weighted average shares outstanding – basic* |
2,635,572 |
2,633,827 |
2,629,647 |
2,599,743 |
2,627,612 |
2,586,840 |
||||||||
|
Weighted average shares outstanding – diluted* |
2,687,327 |
2,678,045 |
2,671,703 |
2,669,704 |
2,674,199 |
2,640,864 |
||||||||
|
Shares outstanding at period end – basic* |
2,636,608 |
2,633,627 |
2,633,312 |
2,599,531 |
2,636,608 |
2,599,531 |
||||||||
|
Earnings per share – basic |
$ 2.91 |
$ 2.98 |
$ 2.77 |
$ 2.99 |
$ 11.47 |
$ 11.78 |
||||||||
|
Earnings per share – diluted |
$ 2.85 |
$ 2.93 |
$ 2.73 |
$ 2.91 |
$ 11.27 |
$ 11.54 |
||||||||
|
Total assets |
$ 1,875,856 |
$ 1,830,760 |
$ 1,693,758 |
$ 1,651,969 |
$ 1,875,856 |
$ 1,651,969 |
||||||||
|
Loans and leases net of deferred fees |
$ 1,290,802 |
$ 1,244,803 |
$ 1,231,905 |
$ 1,210,416 |
$ 1,290,802 |
$ 1,210,416 |
||||||||
|
Noninterest-bearing demand deposits |
$ 646,129 |
$ 627,404 |
$ 619,278 |
$ 645,256 |
$ 646,129 |
$ 645,256 |
||||||||
|
Total deposits |
$ 1,649,325 |
$ 1,607,810 |
$ 1,484,726 |
$ 1,436,767 |
$ 1,649,325 |
$ 1,436,767 |
||||||||
|
Noninterest-bearing deposits as a percentage total deposits |
39.18 % |
39.02 % |
41.71 % |
44.91 % |
39.18 % |
44.91 % |
||||||||
|
Average total assets |
$ 1,863,633 |
$ 1,763,476 |
$ 1,655,220 |
$ 1,633,606 |
$ 1,732,472 |
$ 1,575,266 |
||||||||
|
Average total equity |
$ 187,377 |
$ 179,068 |
$ 168,845 |
$ 147,914 |
$ 174,122 |
$ 138,739 |
||||||||
|
Shareholders’ equity / total assets |
10.10 % |
10.09 % |
10.25 % |
9.49 % |
10.10 % |
9.49 % |
||||||||
|
Book value per share |
$ 71.87 |
$ 70.16 |
$ 65.94 |
$ 60.29 |
$ 71.87 |
$ 60.29 |
||||||||
|
*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 |
|||||||||||||||||||
|
December 31, 2024 |
September 30, 2024 |
December 31, 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 |
$ 270,702 |
$ 3,246 |
4.77 % |
$ 192,115 |
$ 2,634 |
5.45 % |
$ 124,590 |
$ 1,736 |
5.53 % |
||||||||||||
|
Investment securities |
240,752 |
2,374 |
3.92 % |
234,076 |
2,541 |
4.32 % |
234,766 |
2,583 |
4.37 % |
||||||||||||
|
Loans |
1,260,935 |
20,233 |
6.38 % |
1,244,631 |
20,479 |
6.55 % |
1,175,505 |
18,521 |
6.25 % |
||||||||||||
|
Other earning assets |
9,014 |
187 |
8.24 % |
9,003 |
146 |
6.48 % |
8,926 |
189 |
8.42 % |
||||||||||||
|
Total Earning Assets |
1,781,403 |
26,040 |
5.82 % |
1,679,825 |
25,800 |
6.11 % |
1,543,787 |
23,029 |
5.92 % |
||||||||||||
|
Non-interest earning assets |
82,230 |
83,651 |
89,819 |
||||||||||||||||||
|
Total Assets |
$ 1,863,633 |
$ 1,763,476 |
$ 1,633,606 |
||||||||||||||||||
|
Liabilities and Capital |
|||||||||||||||||||||
|
Interest-bearing deposits |
|||||||||||||||||||||
|
Interest-bearing transaction accounts |
$ 848,398 |
$ 6,922 |
3.25 % |
$ 791,777 |
$ 6,221 |
3.13 % |
$ 682,671 |
$ 4,145 |
2.41 % |
||||||||||||
|
Time deposits |
96,336 |
991 |
4.09 % |
89,877 |
938 |
4.15 % |
57,985 |
466 |
3.19 % |
||||||||||||
|
1031 Exchange deposits |
55,580 |
122 |
0.88 % |
53,047 |
174 |
1.30 % |
37,324 |
96 |
1.02 % |
||||||||||||
|
Total interest-bearing deposits |
1,000,314 |
8,035 |
3.20 % |
934,701 |
7,333 |
3.12 % |
777,980 |
4,707 |
2.40 % |
||||||||||||
|
Borrowed funds |
|||||||||||||||||||||
|
Other borrowings |
– |
– |
0.00 % |
– |
– |
0.00 % |
20,000 |
237 |
4.70 % |
||||||||||||
|
Subordinated debt |
21,923 |
268 |
4.86 % |
21,905 |
268 |
4.86 % |
21,852 |
268 |
4.86 % |
||||||||||||
|
Total interest-bearing liabilities |
1,022,237 |
8,303 |
3.23 % |
956,606 |
7,601 |
3.16 % |
819,832 |
5,212 |
2.52 % |
||||||||||||
|
Noninterest-bearing deposits |
636,043 |
612,272 |
648,784 |
||||||||||||||||||
|
Total Funding |
1,658,280 |
8,303 |
1.99 % |
1,568,878 |
7,601 |
1.93 % |
1,468,616 |
5,212 |
1.41 % |
||||||||||||
|
Other noninterest-bearing liabilities |
17,976 |
15,530 |
17,076 |
||||||||||||||||||
|
Total Liabilities |
1,676,256 |
1,584,408 |
1,485,692 |
||||||||||||||||||
|
Total Capital |
187,377 |
179,068 |
147,914 |
||||||||||||||||||
|
Total Liabilities and Capital |
$ 1,863,633 |
$ 1,763,476 |
$ 1,633,606 |
||||||||||||||||||
|
Net Interest Margin |
3.96 % |
4.31 % |
4.58 % |
||||||||||||||||||
|
Net Interest Spread |
3.82 % |
4.18 % |
4.51 % |
||||||||||||||||||
|
MISSION BANCORP |
|||||||||||||||||||
|
AVERAGE BALANCES AND RATES |
|||||||||||||||||||
|
(Unaudited) |
|||||||||||||||||||
|
(Dollars in thousands) |
|||||||||||||||||||
|
For the Twelve Months Ended |
For the Twelve Months Ended |
||||||||||||||||||
|
December 31, 2024 |
December 31, 2023 |
||||||||||||||||||
|
Average |
Income / |
Yield / |
Average |
Income / |
Yield / |
||||||||||||||
|
Balance |
Expense |
Rate |
Balance |
Expense |
Rate |
||||||||||||||
|
Assets |
|||||||||||||||||||
|
Interest earning deposits in other banks |
$ 169,242 |
$ 8,707 |
5.14 % |
$ 91,204 |
$ 4,697 |
5.15 % |
|||||||||||||
|
Investment securities |
237,390 |
9,958 |
4.19 % |
247,936 |
9,605 |
3.87 % |
|||||||||||||
|
Loans |
1,234,063 |
79,820 |
6.47 % |
1,141,641 |
69,950 |
6.13 % |
|||||||||||||
|
Other earning assets |
8,998 |
671 |
7.45 % |
8,442 |
546 |
6.46 % |
|||||||||||||
|
Total Earning Assets |
1,649,693 |
99,156 |
6.01 % |
1,489,223 |
84,798 |
5.69 % |
|||||||||||||
|
Non-interest earning assets |
82,779 |
86,043 |
|||||||||||||||||
|
Total Assets |
$ 1,732,472 |
$ 1,575,266 |
|||||||||||||||||
|
Liabilities and Capital |
|||||||||||||||||||
|
Interest-bearing deposits |
|||||||||||||||||||
|
Interest-bearing transaction accounts |
$ 757,039 |
$ 22,810 |
3.01 % |
$ 641,231 |
$ 12,324 |
1.92 % |
|||||||||||||
|
Time deposits |
84,089 |
3,334 |
3.96 % |
38,216 |
852 |
2.23 % |
|||||||||||||
|
1031 Exchange deposits |
50,344 |
494 |
0.98 % |
32,049 |
150 |
0.47 % |
|||||||||||||
|
Total interest-bearing deposits |
891,472 |
26,638 |
2.99 % |
711,496 |
13,326 |
1.87 % |
|||||||||||||
|
Borrowed funds |
|||||||||||||||||||
|
Other borrowings |
6,626 |
315 |
4.75 % |
16,855 |
811 |
4.81 % |
|||||||||||||
|
Subordinated debt |
21,897 |
1,071 |
4.89 % |
21,826 |
1,071 |
4.91 % |
|||||||||||||
|
Total interest-bearing liabilities |
919,995 |
28,024 |
3.05 % |
750,177 |
15,208 |
2.03 % |
|||||||||||||
|
Noninterest-bearing deposits |
621,709 |
669,768 |
|||||||||||||||||
|
Total Funding |
1,541,704 |
28,024 |
1.82 % |
1,419,945 |
15,208 |
1.07 % |
|||||||||||||
|
Other noninterest-bearing liabilities |
16,646 |
16,582 |
|||||||||||||||||
|
Total Liabilities |
1,558,350 |
1,436,527 |
|||||||||||||||||
|
Total Capital |
174,122 |
138,739 |
|||||||||||||||||
|
Total Liabilities and Capital |
$ 1,732,472 |
$ 1,575,266 |
|||||||||||||||||
|
Net Interest Margin |
4.31 % |
4.67 % |
|||||||||||||||||
|
Net Interest Spread |
4.19 % |
4.62 % |
|||||||||||||||||
|
MISSION BANCORP |
|||||||||||||||||||||
|
LOAN DETAIL |
|||||||||||||||||||||
|
(Unaudited) |
|||||||||||||||||||||
|
(Dollars in thousands) |
|||||||||||||||||||||
|
Variance |
|||||||||||||||||||||
|
December 31, 2024 |
September 30, 2024 |
June 30, 2024 |
December 31, 2023 |
12/24 – 09/24 |
12/24 – 12/23 |
||||||||||||||||
|
Loans |
|||||||||||||||||||||
|
Construction and land development |
$ 59,474 |
$ 56,554 |
$ 50,664 |
$ 49,682 |
$ 2,920 |
$ 9,792 |
|||||||||||||||
|
Secured by farmland |
137,376 |
133,597 |
132,898 |
142,778 |
3,779 |
(5,402) |
|||||||||||||||
|
Residential 1 to 4 units |
61,596 |
51,834 |
52,022 |
49,299 |
9,762 |
12,297 |
|||||||||||||||
|
Multi-family |
47,050 |
40,770 |
34,016 |
35,808 |
6,280 |
11,242 |
|||||||||||||||
|
Owner occupied commercial real estate |
525,745 |
524,860 |
516,043 |
493,706 |
885 |
32,039 |
|||||||||||||||
|
Non-owner occupied commercial real estate |
195,339 |
190,642 |
193,357 |
183,047 |
4,697 |
12,292 |
|||||||||||||||
|
Commercial and industrial |
170,433 |
160,887 |
159,636 |
165,455 |
9,546 |
4,978 |
|||||||||||||||
|
Agricultural production |
95,669 |
88,060 |
95,702 |
92,679 |
7,609 |
2,990 |
|||||||||||||||
|
Other loans |
684 |
129 |
120 |
233 |
555 |
451 |
|||||||||||||||
|
Net Deferred Fees-Costs |
(2,564) |
(2,530) |
(2,553) |
(2,271) |
(34) |
(293) |
|||||||||||||||
|
Total Loans |
$ 1,290,802 |
$ 1,244,803 |
$ 1,231,905 |
$ 1,210,416 |
$ 45,999 |
$ 80,386 |
|||||||||||||||
|
MISSION BANCORP |
||||||||||||
|
Credit Quality |
||||||||||||
|
(Unaudited) |
||||||||||||
|
(Dollars in thousands) |
||||||||||||
|
December 31, 2024 |
September 30, 2024 |
June 30, 2024 |
December 31, 2023 |
|||||||||
|
Asset quality |
||||||||||||
|
Loans past due 90 days or more and accruing interest |
$ – |
$ – |
$ – |
$ – |
||||||||
|
Nonaccrual loans |
$ 1,062 |
$ 399 |
$ 489 |
$ 350 |
||||||||
|
Restructured loans |
||||||||||||
|
Nonperforming restructured loans |
$ – |
$ – |
$ – |
$ – |
||||||||
|
Performing restructured loans |
$ – |
$ – |
$ – |
$ – |
||||||||
|
Other real estate owned |
$ – |
$ – |
$ – |
$ – |
||||||||
|
Total nonperforming assets |
$ 1,062 |
$ 399 |
$ 489 |
$ 350 |
||||||||
|
Allowance for credit losses to total loans |
1.50 % |
1.53 % |
1.52 % |
1.50 % |
||||||||
|
Allowance for credit losses to nonperforming loans |
1828.91 % |
4767.42 % |
3817.79 % |
5201.71 % |
||||||||
|
Nonaccrual loans to total loans |
0.08 % |
0.03 % |
0.04 % |
0.03 % |
||||||||
|
Nonperforming assets to total assets |
0.06 % |
0.02 % |
0.03 % |
0.02 % |
||||||||
SOURCE Mission Bank