Mission Bancorp Reports Third Quarter Earnings Of $7.8 Million. Annualized Deposit Growth Of 33%.


(MENAFN- PR Newswire) BAKERSFIELD, Calif., Oct. 21, 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 $7.8 million, or $2.93 per diluted common share, for the third quarter of 2024, compared to net income available to common shareholders of $8.0 million, or $3.01 per diluted common share, for the third quarter of 2023, and net income available to common shareholders of $7.3 million, or $2.73 per diluted common share, for the linked quarter.

"In a time when many of our competitors face shrinking deposit balances and limited growth, the team at Mission Bank is countering the industry trend. On the deposit side we have seen double digit annualized growth for the past two periods, including 33% annualized growth in the 3rd
quarter, despite the challenging rate environment.
With change predicted for the future, it is our goal to maintain our positive trajectory and we will do that by nurturing the strong client relationships that have helped us reach these impressive heights." said AJ Antongiovanni, President, and Chief Executive Officer of Mission Bancorp. "We are reporting strong earnings of $7.8 million, an increase of $0.6 million sequentially. These figures are the result of the hard work and determination of our entire team, including our SBA division who has already achieved a record setting year, boosting non-interest income, and supporting our Q3 earnings growth."

Third Quarter 2024 Financial Highlights

  • Gross loans increased by $84.5 million, or 7.3%, to $1.24 billion as of September 30, 2024, compared to $1.16 billion at September 30, 2023, and increased by 1.0%, or $12.9 million, compared to June 30, 2024, balances.
  • Total deposits increased by $202.1 million, or 14.4%, to $1.61 billion as of September 30, 2024, compared with $1.41 billion a year earlier, and increased by $123.1 million, or 8.3%, from $1.48 billion as of June 30, 2024. Noninterest-bearing deposits were $627.4 million and represent 39.0% of total deposits at September 30, 2024.
  • The allowance for credit losses ("ACL") as a percentage of gross loans was 1.53% as of September 30, 2024, unchanged compared to September 30, 2023.
  • Credit quality remains strong with nonaccrual loans representing 0.03% of total gross loans at September 30, 2024, up from 0.00% as of September 30, 2023.
  • The Community Bank Leverage Ratio for the Bank as of September 30, 2024, was 11.41%, compared to 11.05% at September 30, 2023.

Net Income Available to Common Shareholders

Net income available to common shareholders for the third quarter of 2024 was $7.8 million, or $2.93 per diluted common share, compared with $7.3 million, or $2.73 per diluted common share, for the linked quarter ended June 30, 2024. Net income available to common shareholders was $8.0 million, or $3.01 per diluted common share, for the third quarter of 2024. Net income available to common shareholders increased $0.6 million, or 7.7%, compared to the linked quarter, and decreased $0.1 million, or 1.6%, compared to the same prior year period.

Notable variances comparing to the linked quarter include an increase in non-interest income and net interest income, which were partially offset by an increase in the provision for credit losses, the provision for income taxes, and non-interest expense. Compared to the third quarter of 2023, increases in non-interest expense and the provision for credit losses were partially offset by increases in non-interest income and net interest income.

Net Interest Income

Net interest income was $18.2 million, or 4.31%, of average earning assets ("net interest margin"), for the third quarter of 2024, compared with $17.9 million, or a net interest margin of 4.67%, for the same period a year earlier, and $17.5 million, or a net interest margin of 4.47%, for the quarter ended June 30, 2024.

Net interest income increased by $0.3 million, or 1.6%, compared to the same prior year period, primarily driven by growth in the Company's loan portfolio and interest-earning deposits in other banks, coupled with an increase in yields on earning assets. Loan interest income and fee accretion increased by $2.2 million compared to the third quarter of 2023. Additionally, the Company also experienced increased interest income from interest earning deposits in other banks of $1.2 million. Offsetting these increases, interest expense for the current quarter increased $3.2 million, compared to the same prior year period, primarily due to increased balances and costs of interest-bearing deposits, net of decreased costs associated with other borrowings.

Net interest income increased for the quarter ended September 30, 2024, compared to the linked quarter by $0.7 million, or 4.0%, due primarily to an increase in interest income on earning assets which were partially offset by an increase in interest expense on deposits. Interest income increased $2.0 million, for the current quarter, compared to the linked quarter, primarily due to average balance growth on interest earning deposits in other banks and loans. Interest expense on deposits increased $1.4 million, for the current quarter, compared to the linked quarter, due to higher average balances and increased costs on interest bearing deposits. Interest on other borrowings decreased by $0.1 million during the current quarter due to the maturity of a one-year term borrowing facility.

The net interest margin was 4.31% for the quarter ended September 30, 2024, compared to 4.67% for the same prior year period, and 4.47% for the linked quarter ended June 30, 2024. During the past year, asset yields have increased 29 basis points, but the cost of funds has risen 72 basis points, contributing to the 36 basis point decline in the quarterly net interest margin. Additionally, average interest-bearing liabilities have grown $172.5 million, outpacing the growth in average interest-earning assets of $158.5 million, when compared to the same prior year period.

The 16 basis point decrease in the net interest margin for the third quarter of 2024, compared to the linked quarter, is primarily attributable to the 19 basis point increase in the Company's cost of interest-bearing liabilities, outpacing the 2 basis point rise on earning asset yields, which led to net interest margin compression during the quarter. Compared to the linked quarter, the average balances of interest-bearing liabilities increased 11.9%, outpacing the growth in interest-earning assets of 6.8%.

The yield on loans, interest earning deposits in other banks, and investment securities, have increased by 29 basis points to 6.55%, 15 basis points to 5.45%, and 31 basis points to 4.32%, respectively, compared to the same prior year period. Additionally, average balances on loans increased $86.0 million, or 7.42%, average balances on interest earning deposits in other banks increased $85.9 million, or 80.7%, and average balances on investment securities declined $13.6 million, or 5.48%, compared to the same prior year period. The cost of interest-bearing deposits increased 103 basis points to 3.12%, while the average balances of interest-bearing deposits increased $192.4 million, compared to the same period last year.

The yield on loans, interest earning deposits in other banks, and investment securities, increased by 5 basis points to 6.55%, 8 basis points to 5.45%, and 13 basis points to 4.32%, respectively, for the quarter ended September 30, 2024, compared to the linked quarter. Additionally, average balances on loans increased $20.8 million, or 1.7%, average balances on interest earning deposits in other banks increased $88.5 million, or 85.2%, and average balances on investment securities declined $2.0 million, or 0.8%, compared to the linked quarter. The cost of interest-bearing deposits increased 21 basis points to 3.12%, while the average balances on interest-bearing deposits increased $108.5 million, compared to the linked quarter.

The cost of funds was 1.93% for the quarter ended September 30, 2024, an increase of 72 basis points compared to 1.21%, for the same prior year period, and an increase of 20 basis points compared to 1.73%, for the linked quarter ended June 30, 2024. The increase in the Company's cost of funds is attributable to the higher short term 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 the proportion of operating account balances versus interest-bearing balances, leading to a decline in the percentage of non-interest-bearing deposits of total deposits and increase the cost of deposits. 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 June 30, 2024, Mission's cost of funds for the second quarter of 2024, was 54 basis points lower than the 2.27% peer average.

For the nine months ended September 30, 2024, the Company's net interest income increased $1.6 million to $53.4 million, while the net interest margin decreased 27 basis points to 4.44%, compared to net interest income of $51.8 million and net interest margin of 4.71%, for the nine months ended September 30, 2023. The decline in net interest margin is the result of a 113 basis point increase in the cost of total interest-bearing liabilities and $159.0 million growth in average interest-bearing liability balances, which outpaced the 47 basis point increase in earning asset yields and the $134.6 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 on a portion of its fixed rate loan and investment securities portfolios. For the current quarter ending on September 30, 2024, the linked quarter and the third quarter of 2023, the interest rate swap contract associated with the loan portfolio generated an additional $0.1 million in interest income. For the current quarter ending on September 30, 2024, the linked quarter and the third quarter of 2023, the interest rate swap contract associated with the investment securities portfolio generated an additional $0.2 million in interest income. 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 September 30, 2024, compared to $0.3 million total additional interest income and 7 basis points of additional earning asset yield for the same prior year period.

Provision for Credit Losses

A $0.4 million provision for credit losses was recorded for the quarter ended September 30, 2024, compared to no provision for the linked quarter, and $0.2 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 increased $0.9 million, or 57.8%, to $2.5 million for the quarter ended September 30, 2024, compared to $1.6 million in the linked quarter, and increased by $1.0 million, or 71.3%, compared to $1.4 million for the same period a year earlier. Notable variances when compared to the linked quarter were increases in SBA servicing fees and gain on sale of loans and service charges, fees, and other income. The increase in non-interest income when compared to the same prior year period was primarily due to increases in SBA servicing fees and gain on sale of loans.

Non-Interest Expense

Non-interest expense increased by $0.2 million, or 2.4%, to $9.2 million for the quarter ended September 30, 2024, compared to $9.0 million for the linked quarter, and increased by $1.3 million, or 16.5%, compared to $7.9 million for the quarter ended September 30, 2023.

The increase in non-interest expense for the third quarter of 2024 compared to the linked quarter was primarily due to a $0.2 million increase in professional services expense.

The increase in non-interest expense for the third quarter of 2024 compared to the third quarter of 2023 was primarily due to a $0.8 million increase in salaries and benefits expense attributable to new hires, net of terminations, increased base compensation, and increased incentive compensation accruals, a $0.3 million increase in professional services expense, and a $0.2 million increase in other expenses.

Operating Efficiency

The Company's operating efficiency ratio increased to 44.7% for the third quarter of 2024, compared to 40.9% for the third quarter of 2023, and decreased from 47.3% compared to the linked quarter. Total non-interest expense as a percentage of average assets, another measure of the Company's efficiency, was 2.08% for the third quarter of 2024, compared to 1.95% for the third quarter of 2023, and 2.19% for the quarter ended June 30, 2024.

Income Taxes

Income tax expense was $3.2 million for the third quarter of 2024, compared to $3.3 million for the quarter ended September 30, 2023, and $2.8 million for the linked quarter ended June 30, 2024. The Company's effective tax rate for the third quarter of 2024 was 28.9%, compared to 29.1% for the same period a year ago, and 27.5% for the quarter ended June 30, 2024.

Asset and Equity Returns

The return on average equity for the third quarter of 2024 was 17.4%, down from 22.1% for the same prior year period, and relatively unchanged when compared to the linked quarter. The quarterly return on average assets for the third quarter of 2024 was 1.77%, down from 1.97% for the same prior year period, and unchanged when compared to the linked quarter.

The decline in the quarterly returns on both average equity and average assets for the quarter ended September 30, 2024, compared to the third quarter of 2023, is primarily attributable to the 25.2% growth in average equity and the 9.61% growth in average assets, coupled with a 1.64% decline in quarterly net income.

The return on average equity and the return on average assets for the third quarter of 2024 was consistent with the linked quarter, as net income growth marginally outpaced the growth in quarterly average equity and quarterly average assets. Net income increased 7.69% compared to the linked quarter, while average equity and average asset growth were 6.05% and 6.54%, respectively.

Balance Sheet

Total assets increased by $215.6 million, or 13.4%, to $1.83 billion at September 30, 2024, compared to September 30, 2023, and increased by $137.0 million, or 8.1%, compared to June 30, 2024. Cash and cash equivalents increased by $138.1 million, or 82.6%, to $305.3 million at September 30, 2024, compared to the same prior year period, and increased by $127.4 million, or 71.7%, compared to June 30, 2024. The significant increase in the Company's cash position over the last year is primarily the result of deposit growth, net of the Federal Reserve Bank borrowing facility repayment upon maturity, and earnings, which outpaced loan portfolio growth. The increase in the Company's cash position over the past quarter is primarily due to robust deposit growth, which outpaced loan portfolio growth for the quarter.

Investment securities decreased by $3.9 million or 1.7%, to $234.1 million at September 30, 2024, compared to $238.1 million at September 30, 2023, and were relatively unchanged compared to June 30, 2024. The decrease in the investment securities portfolio over the past year is attributable to repayments and amortization of the bond portfolio, net of decreased unrealized losses on the investment securities portfolio attributable to market rate changes during the last year.

Loans increased by $84.5 million, or 7.3%, to $1.24 billion at September 30, 2024, compared to September 30, 2023, and increased by $12.9 million, or 1.0%, compared to June 30, 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, construction and land development, and agricultural production 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 concentrated in owner occupied commercial real estate, multi-family, and construction and land development segments of the loan portfolio, which were partially offset by decreases in agricultural production loans and non-owner occupied commercial real estate loans.

Total deposits increased by $202.1 million, or 14.4%, to $1.61 billion as of September 30, 2024, from $1.41 billion as of September 30, 2023, and increased by $123.1 million, or 8.3%, from $1.48 billion at June 30, 2024. Noninterest-bearing deposits decreased by $28.1 million, or 4.3%, during the last year, and increased by $8.1 million, or 1.3%, since June 30, 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 39.0% of total deposits on September 30, 2024.

Total shareholders' equity was $184.8 million at September 30, 2024, an increase of $40.1 million, or 27.7%, compared to September 30, 2023, and an increase of $11.2 million, or 8.1%, compared to June 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 decreased $3.0 million during the past quarter due to a $4.3 million decrease in the accumulated other comprehensive loss on the investment securities portfolio, partially offset by a $1.3 million increase in the accumulated other comprehensive loss 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 $7.9 million during the past year resulting from a $9.7 million decrease in the accumulated other comprehensive loss on the investment securities portfolio, partially offset by a $1.8 million increase in the accumulated other comprehensive loss associated with the interest rate swap contract. The decline in accumulated other comprehensive loss is the result of an increase in the fair market value of our securities portfolio attributable to the decline in interest rates and not related to credit quality.

Nonperforming assets were $0.4 million at September 30, 2024, down from $0.5 million at June 30, 2024, and up from $0 at September 30, 2023. Nonperforming assets as a percentage of total assets were 0.02% at September 30, 2024, down from 0.03% at June 30, 2024, and up from 0.00% at September 30, 2023. Non-accrual loans currently recorded have 100% of their balances individually reserved for with allowances for credit losses.

Allowance for Credit Losses

The allowance for credit losses ("ACL") as a percentage of gross loans increased to 1.53% at September 30, 2024, from 1.52% at June 30, 2024, and was unchanged from September 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 11.41%, at September 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 36 basis points from 11.05%, and decreased by 40 basis points from 11.81%, as of the periods ended September 30, 2023, and June 30, 2024, respectively. Strong earnings over the past year outpaced the growth in average assets, resulting in an increase in regulatory capital ratios; while earnings have remained strong during the current quarter, the growth in average assets, coupled with dividends paid to the Company during 2024, have resulted in a decrease in regulatory capital ratios compared to the linked quarter.

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.

During the third quarter of 2024 the Company repurchased 1,615 shares under the 2022 10b5-1 Plan at an average price of $86.39. Since Plan inception the Company has repurchased 5,681 shares at an average price of $83.69.

About Mission
Bancorp and Mission Bank

With $1.8 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 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








September 30, 2024


June 30, 2024


December 31, 2023


September 30, 2023


09/24 - 06/24


09/24 - 09/23

Assets


















Cash and due from banks



$






52,843


$






47,615


$






39,516


$






55,534


$




5,228


$



(2,691)


Interest earning deposits in other banks


252,409


130,188


110,267


111,662


122,221


140,747



Total cash and cash equivalents


305,252


177,803


149,783


167,196


127,449


138,056


Interest earning deposits maturing over ninety days

490


490


490


490


-


-


Investment securities available-for-sale, at fair value

234,146


234,130


242,681


238,090


16


(3,944)


Loans





1,244,803


1,231,905


1,210,416


1,160,351


12,898


84,452


Allowance for credit losses



(19,022)


(18,669)


(18,206)


(17,804)


(353)


(1,218)


Loans, net




1,225,781


1,213,236


1,192,210


1,142,547


12,545


83,234


Premises and equipment, net



2,873


2,997


3,175


3,246


(124)


(373)


Bank owned life insurance



21,743


21,588


21,285


21,139


155


604


Deferred tax asset, net



13,909


15,230


15,594


16,543


(1,321)


(2,634)


Interest receivable and other assets


26,566


28,284


26,751


25,862


(1,718)


704

Total Assets




$





1,830,760


$





1,693,758


$





1,651,969


$





1,615,113


$



137,002


$



215,647



















Liabilities and Shareholders' Equity














Deposits

















Noninterest-bearing demand


$






627,404


$






619,278


$






645,256


$






655,459


$




8,126


$



(28,055)



Interest bearing



980,406


865,448


791,511


750,260


114,958


230,146




Total deposits



1,607,810


1,484,726


1,436,767


1,405,719


123,084


202,091



Other borrowings



-


-


20,000


20,000


-


(20,000)



Subordinated debentures, net of issuance costs

21,916


21,898


21,863


21,845


18


71



Interest payable and other liabilities


16,249


13,502


16,625


22,883


2,747


(6,634)

Total Liabilities




1,645,975


1,520,126


1,495,255


1,470,447


125,849


175,528



















Shareholders' Equity

















Common stock



89,182


88,880


76,965


76,738


302


12,444



Retained earnings



110,583


102,738


98,605


90,823


7,845


19,760



Accumulated other comprehensive loss


(14,980)


(17,986)


(18,856)


(22,895)


3,006


7,915




Total shareholders' equity


184,785


173,632


156,714


144,666


11,153


40,119


Total Liabilities and Shareholders' Equity

$





1,830,760


$





1,693,758


$





1,651,969


$





1,615,113


$



137,002


$



215,647





































SBA Paycheck Protection Program Loans


501


559


645


693


(58)


(192)

MISSION BANCORP

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

(Dollars in thousands)


















































Three Months Ended







For the Nine Months Ended










Variance



Variance







September 30, 2024


June 30, 2024


September 30, 2023


09/24 - 06/24


09/24 - 09/23


September 30, 2024


September 30, 2023


09/24 - 09/23

Interest and Dividend Income


















Loans




$







20,479


$







19,790


$







18,273


$




689


$




2,206


$







59,587


$







51,429


$




8,158


Investment securities


2,541


2,458


2,503


83


38


7,584


7,022


562


Other




2,780


1,568


1,547


1,212


1,233


5,945


3,318


2,627



Total interest and dividend income

25,800


23,816


22,323


1,984


3,477


73,116


61,769


11,347

Interest Expense



















Other deposits



6,395


5,244


3,615


1,151


2,780


16,260


8,233


8,027


Time deposits



938


729


296


209


642


2,343


386


1,957



Total interest expense on deposits

7,333


5,973


3,911


1,360


3,422


18,603


8,619


9,984


Other borrowings



-


80


237


(80)


(237)


315


574


(259)


Subordinated debentures


268


268


268


-


-


803


803


-



Total interest expense


7,601


6,321


4,416


1,280


3,185


19,721


9,996


9,725

Net Interest Income



18,199


17,495


17,907


704


292


53,395


51,773


1,622

Provision for Credit Losses


(394)


-


(170)


(394)


(224)


(1,069)


(1,170)


101

Net Interest Income After Provision

















for Credit Losses



17,805


17,495


17,737


310


68


52,326


50,603


1,723






















Non-Interest Income



















Gain on sale of premises and equipment

-


-


26


-


(26)


-


281


(281)


Service charges, fees and other income

1,084


980


1,016


104


68


3,006


2,955


51


Farmer Mac referral and servicing fees

345


334


280


11


65


971


774


197


SBA servicing fees and gain on sale of loans

1,032


266


115


766


917


1,673


382


1,291


Loss on sale of securities


-


(20)


-


20


-


(31)


(320)


289



Total non-interest income


2,461


1,560


1,437


901


1,024


5,619


4,072


1,547

Non-Interest Expense


















Salaries and benefits


5,402


5,385


4,608


17


794


16,189


14,221


1,968


Professional services


1,555


1,336


1,296


219


259


3,866


3,568


298


Occupancy and equipment


589


588


604


1


(15)


1,750


1,762


(12)


Data processing and communication

418


404


366


14


52


1,219


1,079


140


Other




1,263


1,300


1,043


(37)


220


3,710


3,012


698



Total non-interest expense


9,227


9,013


7,917


214


1,310


26,734


23,642


3,092

Net Income Before Provision for Income Taxes

11,039


10,042


11,257


997


(218)


31,211


31,033


178

Provision for Income Taxes


3,194


2,757


3,281


437


(87)


8,734


8,346


388

Net Income



$







7,845


$







7,285


$







7,976


$




560


$




(131)


$







22,477


$







22,687


$




(210)

MISSION BANCORP

FINANCIAL HIGHLIGHTS

(Unaudited)

(Dollars in thousands, except per share data)




















As of or for the Three Months Ended


For the Nine Months Ended




















September 30, 2024


June 30, 2024


December 31, 2023


September 30, 2023


September 30, 2024


September 30, 2023
















Ratio of total loans to total deposits

77.42
%


82.97
%


84.25
%


82.54
%


77.42
%


82.54
%

Return on average assets


1.77
%


1.77
%


1.89
%


1.97
%


1.78
%


1.95
%

Return on average equity


17.43
%


17.35
%


20.87
%


22.12
%


17.70
%


22.36
%
















Net interest margin



4.31
%


4.47
%


4.58
%


4.67
%


4.44
%


4.71
%

Efficiency ratio



44.66
%


47.30
%


41.68
%


40.93
%


45.30
%


42.34
%

Non-interest expense as a percent of average assets

2.08
%


2.19
%


1.94
%


1.95
%


2.12
%


2.03
%

Non-interest income as a percent of average assets

0.56
%


0.38
%


0.33
%


0.35
%


0.44
%


0.35
%

Community Bank Leverage Ratio


11.41
%


11.81
%


11.33
%


11.05
%


11.41
%


11.05
%
















Weighted average shares outstanding - basic*

2,633,827


2,629,647


2,599,743


2,600,092


2,624,939


2,582,491

Weighted average shares outstanding - diluted*

2,678,045


2,671,703


2,669,704


2,646,221


2,668,914


2,633,539

Shares outstanding at period end - basic*

2,633,627


2,633,312


2,599,531


2,600,123


2,633,627


2,600,123

Earnings per share - basic


$








2.98


$








2.77


$








2.99


$








3.07


$








8.56


$








8.78

Earnings per share - diluted


$








2.93


$








2.73


$








2.91


$








3.01


$








8.42


$








8.61
















Total assets



$

1,830,760


$

1,693,758


$

1,651,969


$

1,615,113


$

1,830,760


$






1,615,113

Loans and leases net of deferred fees

$

1,244,803


$

1,231,905


$

1,210,416


$

1,160,351


$

1,244,803


$






1,160,351

Noninterest-bearing demand deposits

$






627,404


$






619,278


$

645,256


$






655,459


$






627,404


$






655,459

Total deposits



$

1,607,810


$

1,484,726


$

1,436,767


$

1,405,719


$

1,607,810


$






1,405,719

Noninterest-bearing deposits as a percentage total deposits

39.02
%


41.71
%


44.91
%


46.63
%


39.02
%


46.63
%
















Average total assets



$

1,763,476


$

1,655,220


$

1,633,606


$

1,608,872


$

1,688,433


$






1,555,606

Average total equity



$






179,068


$






168,845


$

147,914


$






143,026


$






169,671


$






135,646
















Shareholders' equity / total assets


10.09
%


10.25
%


9.49
%


8.96
%


10.09
%


8.96
%

Book value per share



$







70.16


$







65.94


$







60.29


$







55.64


$







70.16


$







55.64
















*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






September 30, 2024


June 30, 2024


September 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


$




192,320

$

2,634

5.45
%


$




103,840

$

1,386

5.37
%


$




106,432

$

1,418

5.30
%


Investment securities



234,076

2,541

4.32
%


236,055

2,458

4.19
%


247,655

2,503

4.01
%


Loans




1,244,631

20,479

6.55
%


1,223,791

19,790

6.50
%


1,158,638

18,273

6.26
%


Other earning assets



9,003

146

6.48
%


9,000

182

8.17
%


8,843

129

5.77
%



















Total Earning Assets


1,680,030

25,800

6.11
%


1,572,686

23,816

6.09
%


1,521,568

22,323

5.82
%


Non-interest earning assets


83,446




82,534




87,304





Total Assets



$



1,763,476




$



1,655,220




$



1,608,872



















Liabilities and Capital















Interest-bearing deposits















Interest-bearing transaction accounts


$




791,777

$

6,221

3.13
%


$




701,837

$

5,169

2.96
%


$




670,458

$

3,590

2.12
%



Time deposits


89,877

938

4.15
%


76,666

729

3.83
%


44,157

296

2.66
%



1031 Exchange deposits


53,047

174

1.30
%


47,730

74

0.62
%


27,650

25

0.36
%




Total interest-bearing deposits


934,701

7,333

3.12
%


826,233

5,972

2.91
%


742,265

3,911

2.09
%


Borrowed funds
















Other borrowings


-

-

0.00
%


6,651

81

4.87
%


20,000

237

4.70
%



Subordinated debt


21,905

268

4.86
%


21,888

268

4.92
%


21,835

268

4.86
%




Total interest-bearing liabilities


956,606

7,601

3.16
%


854,772

6,321

2.97
%


784,100

4,416

2.23
%


Noninterest-bearing deposits


612,272




616,242




662,222






Total Funding


1,568,878

7,601

1.93
%


1,471,014

6,321

1.73
%


1,446,322

4,416

1.21
%


Other noninterest-bearing liabilities


15,530




15,361




19,524





Total Liabilities


1,584,408




1,486,375




1,465,846





Total Capital


179,068




168,845




143,026






Total Liabilities and Capital


$



1,763,476




$



1,655,220




$



1,608,872




















Net Interest Margin



4.31
%




4.47
%




4.67
%




Net Interest Spread



4.18
%




4.36
%




4.61
%



MISSION BANCORP

AVERAGE BALANCES AND RATES

(Unaudited)

(Dollars in thousands)


















For the Nine Months Ended


For the Nine Months Ended






September 30, 2024


September 30, 2023


















Average

Income /

Yield /


Average

Income /

Yield /






Balance

Expense

Rate


Balance

Expense

Rate

Assets












Interest earning deposits in other banks


$




135,381

$

5,462

5.39
%


$




80,159

$

2,962

4.94
%


Investment securities



236,261

7,584

4.29
%


252,373

7,022

3.72
%


Loans




1,225,041

59,587

6.50
%


1,130,230

51,429

6.08
%


Other earning assets



8,991

483

7.19
%


8,279

356

5.75
%















Total Earning Assets


1,605,674

73,116

6.08
%


1,471,041

61,769

5.61
%


Non-interest earning assets


82,759




84,565





Total Assets



$



1,688,433




$



1,555,606















Liabilities and Capital











Interest-bearing deposits











Interest-bearing transaction accounts


$




726,364

$

15,888

2.92
%


$




627,266

$

8,179

1.74
%



Time deposits


79,977

2,343

3.91
%


31,554

386

1.63
%



1031 Exchange deposits


48,586

372

1.02
%


30,272

54

0.24
%




Total interest-bearing deposits


854,927

18,603

2.91
%


689,092

8,619

1.67
%


Borrowed funds












Other borrowings


8,851

315

4.75
%


15,795

574

4.86
%



Subordinated debt


21,888

803

4.90
%


21,817

803

4.92
%




Total interest-bearing liabilities


885,666

19,721

2.97
%


726,704

9,996

1.84
%


Noninterest-bearing deposits


616,896




676,839






Total Funding


1,502,562

19,721

1.75
%


1,403,543

9,996

0.95
%


Other noninterest-bearing liabilities


16,200




16,417





Total Liabilities


1,518,762




1,419,960





Total Capital


169,671




135,646






Total Liabilities and Capital


$



1,688,433




$



1,555,606
















Net Interest Margin



4.44
%




4.71
%




Net Interest Spread



4.33
%




4.66
%



LOAN DETAIL

(Unaudited)

(Dollars in thousands)






















Variance








September 30, 2024


June 30, 2024


December 31, 2023


September 30, 2023


09/24 - 06/24


09/24 - 09/23


Loans


















Construction and land development


$




56,554


$





50,664


$





49,682


$





41,970


$





5,890


$




14,584



Secured by farmland



133,597


132,898


142,778


140,040


699


(6,443)



Residential 1 to 4 units



51,834


52,022


49,299


48,625


(188)


3,209



Multi-family




40,770


34,016


35,808


36,084


6,754


4,686



Owner occupied commercial real estate

524,860


516,043


493,706


484,497


8,817


40,363



Non-owner occupied commercial real estate

190,642


193,357


183,047


175,520


(2,715)


15,122



Commercial and industrial



160,887


159,636


165,455


159,993


1,251


894



Agricultural production



88,060


95,702


92,679


75,620


(7,642)


12,440



Other loans




129


120


233


262


9


(133)



Net Deferred Fees-Costs





(2,530)


(2,553)


(2,271)


(2,260)


23


(270)




Total Loans



$



1,244,803


$




1,231,905


$




1,210,416


$




1,160,351


$




12,898


$




84,452

MISSION BANCORP

Credit Quality

(Unaudited)

(Dollars in thousands)




















September 30, 2024


June 30, 2024


December 31, 2023


September 30, 2023

Asset quality












Loans past due 90 days or more and accruing interest


$






-


$







-


$






-


$






-

Nonaccrual loans





$

399


$

489


$

350


$






-

Restructured loans













Nonperforming restructured loans



$






-


$







-


$






-


$






-


Performing restructured loans



$






-


$







-


$






-


$






-

Other real estate owned




$






-


$







-


$






-


$






-

Total nonperforming assets




$

399


$

489


$

350


$






-














Allowance for credit losses to total loans



1.53
%


1.52
%


1.50
%


1.53
%

Allowance for credit losses to nonperforming loans


4767.42
%


3817.79
%


5201.71
%


N/A

Nonaccrual loans to total loans




0.03
%


0.04
%


0.03
%


0.00
%

Nonperforming assets to total assets



0.02
%


0.03
%


0.02
%


0.00
%

SOURCE Mission Bank

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