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 www.missionbank.bank. By including the foregoing website address, Mission Bancorp does not intend to, and shall not be deemed to incorporate by reference any material contained therein.
Forward Looking Statements
This press release may contain forward-looking statements that are subject to risks and uncertainties. Such risks and uncertainties may include but are not necessarily limited to fluctuations in interest rates, inflation, rapid and/or unanticipated deposit withdrawals, the unavailability of sources of liquidity, additional regulatory requirements that may be imposed on community banks or banks in general, general and industry-specific changes in market conditions, investor reaction to industry developments, government regulations and general economic conditions, and competition within the business areas in which the bank is conducting its operations, including the real estate market in California and other factors beyond the bank’s control. Such risks and uncertainties could cause results for subsequent interim periods or for the entire year to differ materially from those indicated. Readers should not place undue reliance on the forward-looking statements, which reflect management’s view only as of the date hereof. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances.
MISSION BANCORP
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Dollars in thousands)
Variance
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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