Mission Bancorp Reports First Quarter Earnings Of $7.2 Million.

(MENAFN- PR Newswire)

BAKERSFIELD, Calif., April 21, 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 $7.2 million, or $2.66 per diluted common share, for the first quarter of 2025, compared to net income available to common shareholders of $7.3 million, or $2.77 per diluted common share, for the first quarter of 2024, and net income available to common shareholders of $7.7 million, or $2.85 per diluted common share, for the linked quarter.

"The Company achieved strong results with year-over-year loan and deposit growth of 6% and 17%, respectively. Net income of $7.2 million is flat year over year; due to our asset sensitive balance sheet we saw a shrinking net interest margin, which offset the growth in loans and deposits," said Mission Bank President and CEO AJ Antongiovanni. Antongiovanni continued, "Historically we see limited deposit and loan growth in Q1 which is true of this year, but if we look back to Q1 2024 our loan growth and deposit growth is incredibly strong and that's the true indication of Mission's healthy trajectory. Looking forward, the unknown impacts of tariffs and the resulting uncertainty in the markets could impact our industry and the industries of our customers, but Mission Bank is ready. We have strong capital levels and reserves compared to our peers and are prepared to navigate the economic instability that could arise. I want to thank our customers for continuing this journey with us, the strength of our partnerships and your integrity set Mission Bank apart from the rest."

First Quarter 2025 Financial Highlights

• Gross loans increased by $69.0 million, or 5.6%, to $1.30 billion as of March 31, 2025, compared to $1.23 billion as of March 31, 2024 and increased by $8.0 million, or 0.6%, compared to December 31, 2024, balances.
  
• Total deposits increased by $235.3 million, or 16.6%, to $1.65 billion as of March 31, 2025, compared with $1.42 billion a year earlier, and increased by $2.9 million, or 0.2%, from $1.65 billion as of December 31, 2024. Noninterest-bearing deposits were $626.7 million and represent 37.9% of total deposits as of March 31, 2025.
  
• The allowance for credit losses ("ACL") as a percentage of gross loans declined from 1.54% as of March 31, 2024, to 1.51% as of March 31, 2025.
  
• Credit quality remains strong with nonaccrual loans representing 0.07% of total gross loans as of March 31, 2025, up from 0.06% as of March 31, 2024.
  
• The Community Bank Leverage Ratio for the Bank as of March 31, 2025, was 11.47%, compared to 11.59% as of March 31, 2024.

Net Income Available to Common Shareholders

Net income available to common shareholders for the first quarter of 2025 was $7.2 million, or $2.66 per diluted common share, compared with $7.7 million, or $2.85 per diluted common share, for the linked quarter ended December 31, 2024. Net income available to common shareholders was $7.3 million, or $2.77 per diluted common share, for the first quarter of 2024. Net income available to common shareholders decreased $0.5 million, or 6.7%, compared to the linked quarter, and decreased $0.2 million, or 2.7%, compared to the same prior year period.

Notable variances compared to the linked quarter include an increase in non-interest expense, partially offset by a decrease in the provision for credit losses. Compared to the first quarter of 2024, an increase in non-interest expense was partially offset by a decrease in the provision for credit losses and an increase in net interest income.

Net Interest Income

Net interest income was $17.8 million, or 4.06%, of average earning assets ("net interest margin"), for the first quarter of 2025, compared with $17.7 million, or a net interest margin of 4.55%, for the same period a year earlier, and $17.7 million, or a net interest margin of 3.96%, for the quarter ended December 31, 2024.

Net interest income increased nominally by $0.1 million, or 0.7%, compared to the same prior year period, due primarily to an increase in interest income, which was partially offset by an increase in interest expense. Loan interest income and fee accretion increased by $1.2 million compared to the same prior year, due primarily to growth in the loan portfolio coupled with a relatively stable yield on loans. Additionally, interest income from interest earning deposits in other banks increased by $1.1 million, due primarily to growth in interest earning cash balances, partially offset by a decline in yields. Interest expense increased $1.9 million compared to the first quarter of 2024, due to average balance growth and increased costs on interest-bearing deposits, net of decreased costs associated with other borrowings.

Net interest income increased nominally by $0.1 million, or 0.5%, for the quarter ended March 2025, compared to the linked quarter, due primarily to a decrease in interest expense on deposits which more than offset a decrease in interest income. Interest expense on deposits decreased $0.6 million, for the current quarter, compared to the linked quarter, due to decreased costs on interest bearing deposits and marginally higher average balances. Interest income decreased $0.5 million for the current quarter, compared to the linked quarter, due primarily to lower average balances and yields on interest earning deposits in other banks, partially offset by higher average balances and yields on loans.

The net interest margin was 4.06% for the quarter ended March 31, 2025, compared to 4.55% for the same prior year period, and 3.96% for the linked quarter ended December 31, 2024. During the past year, asset yields have declined 24 basis points while the cost of interest-bearing liabilities has risen 28 basis points, contributing to the 49 basis point decline in the quarterly net interest margin. The Federal Reserve began lowering rates in the latter half of 2024, 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. Additionally, the average balances of interest-bearing liabilities increased 21.8%, outpacing the growth in interest-earning assets of 14.0% over the last year, thereby lowering the Company's net interest margin.

The 10 basis point increase in the net interest margin for the first quarter of 2025, compared to the linked quarter, was primarily driven by a 19 basis point decline in the Company's cost of interest-bearing liabilities, while earning asset yields remained relatively stable, resulting in net interest margin expansion. The reduction in funding costs was in response to the recent decline in short term capital markets interest rates.

The yield on loans, interest earning deposits in other banks, and investment securities, decreased by 3 basis points to 6.41%, 91 basis points to 4.40%, and by 44 basis points to 3.92%, respectively, compared to the same prior year period. Additionally, average balances on loans increased $92.5 million, or 7.66%, average balances on interest earning deposits in other banks increased $122.9 million, or 112.6%, and average balances on investment securities increased $3.1 million, or 1.28%, compared to the same prior year period. The cost of interest-bearing deposits increased 35 basis points to 3.00%, while the average balances of interest-bearing deposits increased $203.9 million, or 25.4%, compared to the same period last year.

The yield on loans increased by 3 basis points to 6.41%, while the yield on interest earning deposits in other banks decreased by 37 basis points to 4.40%, and the yield on investment securities was unchanged, for the quarter ended March 31, 2025, compared to the linked quarter. Additionally, average balances on loans increased $38.0 million, or 3.01%, average balances on interest earning deposits in other banks decreased $38.6 million, or 14.3%, and average balances on investment securities increased $1.0 million, or 0.41%, compared to the linked quarter. The cost of interest-bearing deposits decreased 20 basis points to 3.00%, while the average balances on interest-bearing deposits increased $6.5 million, or 0.65%, compared to the linked quarter.

The cost of funds was 1.89% for the quarter ended March 31, 2025, an increase of 30 basis points compared to 1.59%, for the same prior year period, and a decrease of 10 basis points compared to 1.99%, for the linked quarter ended December 31, 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 both new customer acquisition and expansion of existing relationships over the past year. At the same time, our clients have continued to optimize the proportion of their operating account balances versus interest-bearing account balances. More recently, Federal Reserve rate cutting has helped alleviate some of the pressure on the cost of interest-bearing balances, providing modest relief in the competitive deposit environment. 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 December 31, 2024, Mission's cost of funds for the fourth quarter of 2024, was 20 basis points lower than the 2.19% peer average.

The Company holds two pay-fixed, receive floating, interest rate swap contracts with notional balances totaling $108 million, executed in the third quarter of 2023 to hedge against rising rates on a portion of its fixed rate loan and investment securities portfolios. Combined, for the first quarter of 2025, the linked quarter, and the first quarter of 2024, the interest rate swap contracts generated an additional $0.1 million, $0.2 million, and $0.4 million in interest income, respectively.

Provision for Credit Losses

A $0.2 million provision for credit losses was recorded for the quarter ended March 31, 2025, compared to $0.4 million for the linked quarter, and $0.7 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 remained consistent at $1.6 million for the quarter ended March 31, 2025, compared to the linked quarter, and the same period a year earlier. Compared to the linked quarter, notable variances include a decrease in Farmer Mac referral and servicing fees and an increase in SBA servicing fees and gain on sale. When compared to the same prior year period, notable variances include a decrease in SBA servicing fees and gain on sale of loans and an increase on service charges, fees, and other income.

Non-Interest Expense

Non-interest expense increased by $1.1 million, or 13.5%, to $9.2 million for the quarter ended March 31, 2025, compared to $8.1 million for the linked quarter, and increased by $0.7 million, or 8.6%, compared to $8.5 million for the quarter ended March 31, 2024.

The increase in non-interest expense for the first quarter of 2025, compared to the linked quarter, was primarily due to a $0.9 million increase in salaries and benefits expense, associated with increases in employee incentive compensation accruals, payroll taxes attributable to the resumption of accruals at the beginning of the year, deferred salary loan origination costs, and equity compensation expense.

The increase in non-interest expense for the first quarter of 2025 compared to the same period a year ago, was primarily due to a $0.5 million increase in salaries and benefits expense, primarily driven by higher employee compensation, including higher base compensation expense and associated payroll taxes, incentive compensation accruals, and employee 401(k) matching contributions, partially offset by lower temporary labor costs.

Operating Efficiency

The Company's operating efficiency ratio increased to 47.5% for the first quarter of 2025, compared to 44.0% for the first quarter of 2024, and 42.0% for the linked quarter. Total non-interest expense as a percentage of average assets, another measure of the Company's efficiency, was 2.01% for the first quarter of 2025, compared to 2.08% for the first quarter of 2024, and 1.74% for the quarter ended December 31, 2024.

Income Taxes

Income tax expense was $2.9 million for the first quarter of 2025, compared to $2.8 million for the quarter ended March 31, 2024, and $3.2 million for the linked quarter ended December 31, 2024. The Company's effective tax rate for the first quarter of 2025 was 28.8%, compared to 27.5% for the same period a year ago, and 29.1% for the quarter ended December 31, 2024.

Asset and Equity Returns

The return on average equity for the first quarter of 2025 was 15.0%, down from 18.4% for the same prior year period, and down from 16.3% for the linked quarter. The quarterly return on average assets for the first quarter of 2025 was 1.56%, down from 1.80% for the same prior year period, and down from 1.64% for the linked quarter.

The decline in the quarterly returns on both average equity and average assets for the quarter ended March 31, 2025, compared to the first quarter of 2024, is primarily attributable to the 20.2% growth in average equity and the 13.3% growth in average assets.

The decline in the quarterly returns on both average equity and average assets for the first quarter of 2025, compared to the linked quarter, is primarily attributable to the growth in quarterly average equity and quarterly average assets coupled with a decline in quarterly net income.

Balance Sheet

Total assets increased by $247.1 million, or 15.1%, to $1.89 billion as of March 31, 2025, compared to March 31, 2024, and increased by $11.4 million, or 0.6%, compared to December 31, 2024. Cash and cash equivalents increased by $181.6 million, or 152.6%, to $300.5 million as of March 31, 2025, compared to the same prior year period, and increased by $7.1 million, or 2.4%, compared to December 31, 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 increase in the Company's cash position over the past quarter is primarily due to continued strong earnings and deposit growth supported by the repayment and amortization of the investment portfolio, which outpaced loan portfolio growth.

Investment securities increased by $1.5 million or 0.6%, to $241.9 million as of March 31, 2025, compared to $240.4 million as of March 31, 2024, and decreased by $3.0 million, or 1.2%, compared to $244.9 million on December 31, 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 a decrease in unrealized losses on the investment securities portfolio attributable to market rate changes during the year, net of the repayment and amortization of the bond portfolio. The decrease in the investment portfolio during the first quarter of 2025, compared to the linked quarter, is generally attributable to the repayment and amortization of the bond portfolio, net of decreased unrealized losses on the investment securities portfolio attributable to market rate changes during the quarter.

Loans increased by $69.0 million, or 5.6%, to $1.30 billion as of March 31, 2025, compared to March 31, 2024, and increased by $8.0 million, or 0.6%, compared to December 31, 2024. Loan growth during the last year has been concentrated in non-owner occupied commercial real estate, multi-family, residential 1 to 4 units, and construction and land development segments of the loan portfolio, which were partially offset by the contraction in owner occupied commercial real estate and loans secured by farmland. Loan growth during the last quarter has been concentrated in non-owner occupied commercial real estate and multi-family loan segments of the loan portfolio, which were partially offset by the contraction in owner occupied commercial real estate and agricultural production loans.

Total deposits increased by $235.3 million, or 16.6%, to $1.65 billion as of March 31, 2025, from $1.42 billion as of March 31, 2024, and was relatively unchanged from December 31, 2024. Noninterest-bearing deposits increased by $13.8 million, or 2.3%, during the last year, and decreased by $19.4 million, or 3.0%, since December 31, 2024. The increase in non-interest-bearing deposits experienced over the last year is attributable to an increase in new account openings and the stabilization of deposit costs. However, non-interest-bearing accounts decreased during the last quarter, primarily due to cash utilization and cyclical fluctuations such as tax planning activities. Noninterest-bearing deposits represented 37.9% of total deposits on March 31, 2025.

Total shareholders' equity was $197.7 million as of March 31, 2025, an increase of $32.7 million, or 19.8%, compared to March 31, 2024, and an increase of $8.2 million, or 4.3%, compared to December 31, 2024, due primarily to quarterly earnings, net of changes in accumulated other comprehensive loss. The accumulated other comprehensive loss component of equity decreased $1.1 million during the past year resulting from a $1.7 million decrease in the accumulated other comprehensive loss on the investment securities portfolio, partially offset by a $0.6 million increase in the accumulated other comprehensive loss associated with the interest rate swap contract. The accumulated other comprehensive loss component of equity decreased $0.8 million during the quarter attributable to a $1.3 million decrease in the accumulated other comprehensive loss on the investment securities portfolio, partially offset by a $0.5 million increase in the accumulated other comprehensive loss associated with the swap contract. The decline in accumulated other comprehensive loss is primarily the result of an increase in the fair market value of our investment securities portfolio attributable to a decline in interest rates and not related to credit quality.

Allowance for Credit Losses and Credit Quality

The allowance for credit losses ("ACL") as a percentage of gross loans increased to 1.51% as of March 31, 2025, from 1.50% as of December 31, 2024, and declined from 1.54% as of March 31, 2024. The nominal decline in the ACL as a percentage of gross loans over the last twelve months reflects the continued stable credit profile of the loan portfolio and the relative stability of the factors that are inputs for the ACL model.

Nonperforming assets were $0.9 million on March 31, 2025, down from $1.1 million on December 31, 2024, and up from $0.7 million on March 31, 2024. Nonperforming assets as a percentage of total assets were 0.05% as of March 31, 2025, down from 0.06% as of December 31, 2024, and up from 0.04% as of March 31, 2024.

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 11.47%, as of March 31, 2025, 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 12 basis points from 11.59%, and increased by 40 basis points from 11.07%, as of the periods ended March 31, 2024, and December 31, 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 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 first quarter of 2025 the Company repurchased 4,728 shares under the 2022 10b5-1 Plan at an average price of $96.16. Since Plan inception the Company has repurchased 12,499 shares at an average price of $89.18.

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 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
							March 31, 2025		December 31, 2024		September 30, 2024		March 31, 2024		03/25 - 12/24		03/25 - 03/24
Assets
	Cash and due from banks				$ 50,339		$ 46,596		$ 53,048		$ 38,183		$ 3,743		$ 12,156
	Interest earning deposits in other banks			250,205		246,872		252,204		80,805		3,333		169,400
		Total cash and cash equivalents			300,544		293,468		305,252		118,988		7,076		181,556
	Interest earning deposits maturing over ninety days		490		490		490		490		-		-
	Investment securities available-for-sale, at fair value		241,925		244,922		234,146		240,382		(2,997)		1,543
	Loans					1,298,780		1,290,802		1,244,803		1,229,803		7,978		68,977
	Allowance for credit losses				(19,580)		(19,423)		(19,022)		(18,931)		(157)		(649)
	Loans, net					1,279,200		1,271,379		1,225,781		1,210,872		7,821		68,328
	Premises and equipment, net				2,855		2,785		2,873		3,133		70		(278)
	Bank owned life insurance				22,054		21,899		21,743		21,435		155		619
	Deferred tax asset, net				16,046		16,364		13,909		15,501		(318)		545
	Interest receivable and other assets			24,119		24,549		26,566		29,320		(430)		(5,201)
Total Assets					$ 1,887,233		$ 1,875,856		$ 1,830,760		$ 1,640,121		$ 11,377		$ 247,112
Liabilities and Shareholders' Equity
	Deposits
		Noninterest-bearing demand			$ 626,723		$ 646,129		$ 627,404		$ 612,876		$ (19,406)		$ 13,847
		Interest bearing				1,025,549		1,003,196		980,406		804,088		22,353		221,461
			Total deposits				1,652,272		1,649,325		1,607,810		1,416,964		2,947		235,308
		Other borrowings				-		-		-		20,000		-		(20,000)
		Subordinated debentures, net of issuance costs		21,952		21,934		21,916		21,881		18		71
		Interest payable and other liabilities			15,282		15,111		16,249		16,215		171		(933)
Total Liabilities					1,689,506		1,686,370		1,645,975		1,475,060		3,136		214,446
Shareholders' Equity
		Common stock				89,829		89,496		89,182		77,743		333		12,086
		Retained earnings				125,400		118,248		110,583		105,953		7,152		19,447
		Accumulated other comprehensive loss			(17,502)		(18,258)		(14,980)		(18,635)		756		1,133
			Total shareholders' equity			197,727		189,486		184,785		165,061		8,241		32,666
	Total Liabilities and Shareholders' Equity			$ 1,887,233		$ 1,875,856		$ 1,830,760		$ 1,640,121		$ 11,377		$ 247,112
SBA Paycheck Protection Program Loans			414		452		501		597		(38)		(183)

MISSION BANCORP
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(Dollars in thousands)
						Three Months Ended
							Variance
						March 31, 2025		December 31, 2024		March 31, 2024		03/25 - 12/24		03/25 - 03/24
Interest and Dividend Income
	Loans				$ 20,533		$ 20,233		$ 19,319		$ 300		$ 1,214
	Investment securities			2,334		2,374		2,584		(40)		(250)
	Other				2,673		3,433		1,597		(760)		1,076
		Total interest and dividend income		25,540		26,040		23,500		(500)		2,040
Interest Expense
	Other deposits			6,587		7,044		4,622		(457)		1,965
	Time deposits			859		991		675		(132)		184
		Total interest expense on deposits		7,446		8,035		5,297		(589)		2,149
	Other borrowings			-		-		234		-		(234)
	Subordinated debentures			268		268		268		-		-
		Total interest expense			7,714		8,303		5,799		(589)		1,915
Net Interest Income			17,826		17,737		17,701		89		125
Provision for Credit Losses			155		400		675		(245)		(520)
Net Interest Income After Provision
	for Credit Losses			17,671		17,337		17,026		334		645
Non-Interest Income
	Gain on sale of premises and equipment		2		-		-		2		2
	Service charges, fees and other income		1,065		1,078		942		(13)		123
	Farmer Mac referral and servicing fees		287		363		293		(76)		(6)
	SBA servicing fees and gain on sale of loans		240		168		375		72		(135)
	Loss on sale of securities			-		-		(11)		-		11
		Total non-interest income		1,594		1,609		1,599		(15)		(5)
Non-Interest Expense
	Salaries and benefits			5,935		5,047		5,402		888		533
	Professional services			1,039		1,018		975		21		64
	Occupancy and equipment			576		571		572		5		4
	Data processing and communication		367		402		397		(35)		(30)
	Other				1,310		1,093		1,148		217		162
		Total non-interest expense		9,227		8,131		8,494		1,096		733
Net Income Before Provision for Income Taxes	10,038		10,815		10,131		(777)		(93)
Provision for Income Taxes			2,886		3,150		2,783		(264)		103
Net Income				$ 7,152		$ 7,665		$ 7,348		$ (513)		$ (196)

MISSION BANCORP
FINANCIAL HIGHLIGHTS
(Unaudited)
(Dollars in thousands, except per share data)
				As of or for the Three Months Ended
				March 31, 2025		December 31, 2024		September 30, 2024		March 31, 2024
Ratio of total loans to total deposits		78.61 %		78.26 %		77.42 %		86.79 %
Return on average assets			1.56 %		1.64 %		1.77 %		1.80 %
Return on average equity			14.99 %		16.27 %		17.43 %		18.36 %
Net interest margin			4.06 %		3.96 %		4.31 %		4.55 %
Efficiency ratio				47.51 %		42.03 %		44.66 %		44.01 %
Non-interest expense as a percent of average assets	2.01 %		1.74 %		2.08 %		2.08 %
Non-interest income as a percent of average assets	0.35 %		0.34 %		0.56 %		0.39 %
Community Bank Leverage Ratio			11.47 %		11.07 %		11.41 %		11.59 %
Weighted average shares outstanding - basic*		2,644,296		2,635,572		2,633,827		2,611,832
Weighted average shares outstanding - diluted*		2,689,996		2,687,327		2,678,045		2,656,774
Shares outstanding at period end - basic*		2,653,857		2,636,608		2,633,627		2,622,649
Earnings per share - basic			$ 2.70		$ 2.91		$ 2.98		$ 2.81
Earnings per share - diluted			$ 2.66		$ 2.85		$ 2.93		$ 2.77
Total assets				$ 1,887,233		$ 1,875,856		$ 1,830,760		$ 1,640,121
Loans and leases net of deferred fees		$ 1,298,780		$ 1,290,802		$ 1,244,803		$ 1,229,803
Noninterest-bearing demand deposits		$ 626,723		$ 646,129		$ 627,404		$ 612,876
Total deposits				$ 1,652,272		$ 1,649,325		$ 1,607,810		$ 1,416,964
Noninterest-bearing deposits as a percentage total deposits	37.93 %		39.18 %		39.02 %		43.25 %
Average total assets			$ 1,864,899		$ 1,863,633		$ 1,763,476		$ 1,645,777
Average total equity			$ 193,498		$ 187,377		$ 179,068		$ 160,998
Shareholders' equity / total assets			10.48 %		10.10 %		10.09 %		10.06 %
Book value per share			$ 74.51		$ 71.87		$ 70.16		$ 62.94
*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
					March 31, 2025		December 31, 2024		March 31, 2024
					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		$ 232,078	$ 2,519	4.40 %		$ 270,702	$ 3,246	4.77 %		$ 109,152	$ 1,442	5.31 %
	Investment securities			241,737	2,334	3.92 %		240,752	2,374	3.92 %		238,677	2,584	4.36 %
	Loans				1,298,947	20,533	6.41 %		1,260,935	20,233	6.38 %		1,206,486	19,319	6.44 %
	Other earning assets			9,026	154	6.92 %		9,014	187	8.24 %		8,971	155	6.92 %
		Total Earning Assets		1,781,788	25,540	5.81 %		1,781,403	26,040	5.82 %		1,563,286	23,500	6.05 %
	Non-interest earning assets			83,111				82,230				82,491
		Total Assets			$ 1,864,899				$ 1,863,633				$ 1,645,777
Liabilities and Capital
	Interest-bearing deposits
		Interest-bearing transaction accounts		$ 878,043	$ 6,541	3.02 %		$ 848,398	$ 6,922	3.25 %		$ 684,759	$ 4,498	2.64 %
		Time deposits			92,409	859	3.77 %		96,336	991	4.09 %		73,280	675	3.70 %
		1031 Exchange deposits		36,369	46	0.51 %		55,580	122	0.88 %		44,932	124	1.11 %
			Total interest-bearing deposits		1,006,821	7,446	3.00 %		1,000,314	8,035	3.20 %		802,971	5,297	2.65 %
	Borrowed funds
		Other borrowings			-	-	0.00 %		-	-	0.00 %		20,000	234	4.71 %
		Subordinated debt			21,941	268	4.95 %		21,923	268	4.86 %		21,870	268	4.92 %
			Total interest-bearing liabilities		1,028,762	7,714	3.04 %		1,022,237	8,303	3.23 %		844,841	5,799	2.76 %
	Noninterest-bearing deposits			625,981				636,043				622,225
			Total Funding		1,654,743	7,714	1.89 %		1,658,280	8,303	1.99 %		1,467,066	5,799	1.59 %
	Other noninterest-bearing liabilities		16,658				17,976				17,713
		Total Liabilities			1,671,401				1,676,256				1,484,779
		Total Capital			193,498				187,377				160,998
			Total Liabilities and Capital		$ 1,864,899				$ 1,863,633				$ 1,645,777
	Net Interest Margin			4.06 %				3.96 %				4.55 %
	Net Interest Spread			3.92 %				3.82 %				4.46 %

MISSION BANCORP
LOAN DETAIL
(Unaudited)
(Dollars in thousands)
			Variance
							March 31, 2025		December 31, 2024		September 30, 2024		March 31, 2024		03/25 - 12/24		03/25 - 03/24
	Loans
		Construction and land development			$ 64,330		$ 59,474		$ 56,554		$ 50,727		$ 4,856		$ 13,603
		Secured by farmland				138,903		137,376		133,597		141,391		1,527		(2,488)
		Residential 1 to 4 units				60,385		61,596		51,834		49,902		(1,211)		10,483
		Multi-family				57,367		47,050		40,770		35,857		10,317		21,510
		Owner occupied commercial real estate			498,524		525,745		524,860		503,491		(27,221)		(4,967)
		Non-owner occupied commercial real estate		217,358		195,339		190,642		188,085		22,019		29,273
		Commercial and industrial			172,577		170,433		160,887		173,185		2,144		(608)
		Agricultural production			91,585		95,669		88,060		89,406		(4,084)		2,179
		Other loans				328		684		129		165		(356)		163
		Net Deferred Fees-Costs				(2,577)		(2,564)		(2,530)		(2,406)		(13)		(171)
			Total Loans				$ 1,298,780	#	$ 1,290,802		$ 1,244,803		$ 1,229,803		$ 7,978		$ 68,977

MISSION BANCORP
Credit Quality
(Unaudited)
(Dollars in thousands)
						March 31, 2025		December 31, 2024		September 30, 2024		March 31, 2024
Asset quality
Loans past due 90 days or more and accruing interest			$ -		$ -		$ -		$ -
Nonaccrual loans					$ 871		$ 1,062		$ 399		$ 714
Restructured loans
	Nonperforming restructured loans				$ -		$ -		$ -		$ -
	Performing restructured loans				$ -		$ -		$ -		$ -
Other real estate owned					$ -		$ -		$ -		$ -
Total nonperforming assets					$ 871		$ 1,062		$ 399		$ 714
Allowance for credit losses to total loans				1.51 %		1.50 %		1.53 %		1.54 %
Allowance for credit losses to nonperforming loans				2247.99 %		1828.91 %		4767.42 %		2651.40 %
Nonaccrual loans to total loans					0.07 %		0.08 %		0.03 %		0.06 %
Nonperforming assets to total assets				0.05 %		0.06 %		0.02 %		0.04 %

SOURCE Mission Bank

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