Mission Bancorp Reports All-Time Record Quarterly Earnings of $8.6 Million for the Third Quarter of 2025, an Increase of 10% Year Over Year. Annualized Noninterest-Bearing and Total Deposit Growth of Over 20%.

Rhea-AI Summary

Mission Bancorp (OTC Pink: MSBC) reported record third-quarter 2025 net income available to common shareholders of $8.6 million ($3.05 diluted), up 10.1% year-over-year and up 175.4% versus the linked quarter.

Key balance-sheet moves: gross loans rose 13.8% YoY to $1.42 billion, while total deposits were $1.73 billion (noninterest-bearing deposits $671.3 million, 38.8% of deposits). Management reported annualized noninterest-bearing and total deposit growth of 22% and 25%, respectively. Net interest margin was 4.27%; cost of funds fell and loan yields supported NII. Non-interest income declined 24.8% YoY; non-interest expense fell due to prior quarter non-recurring charges.

Positive

• Record quarterly earnings of $8.6 million
• Gross loans +13.8% YoY (+$171.8M) to $1.42 billion
• Annualized noninterest-bearing deposits growth 22%
• Annualized total deposit growth 25%
• Net interest income +10.4% QoQ
• Operating efficiency ratio improved to 41.7% (from 73.8% linked quarter)

Negative

• Non-interest income declined 24.8% YoY

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BAKERSFIELD, Calif., Oct. 20, 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 $8.6 million, or $3.05 per diluted common share, for the third quarter of 2025, compared to net income available to common shareholders of $7.8 million, or $2.79 per diluted common share, for the third quarter of 2024, and net income available to common shareholders of $3.1 million, or $1.11 per diluted common share, for the linked quarter.

"We are proud to report a record quarter, with earnings of $8.6 million," said A.J. Antongiovanni, President and Chief Executive Officer of Mission Bancorp. "At a time when the industry is facing headwinds in terms of growing deposits and loans, our relationship-driven banking model continues to prove successful, with loan growth at an annualized rate of 18%, noninterest-bearing and total deposits growing 22% and 25%, respectively.  Additionally, our net interest margin has grown as deposit costs have decreased, and we move funds out of cash and short-term investments into loans. Credit has been stable, although we proceed with caution as unemployment and inflation continue to trend upward.  Thank you to our customers and to our hard-working team, it is their partnership that has led the Company to these groundbreaking results."

Third Quarter 2025 Financial Highlights

• Gross loans increased by $171.8 million, or 13.8%, to $1.42 billion as of September 30, 2025, compared to $1.24 billion as of September 30, 2024, and increased by $61.0 million, or 4.5%, compared to June 30, 2025, balances.
  
  
• Total deposits increased by $121.3 million, or 7.5%, to $1.73 billion as of September 30, 2025, compared with $1.61 billion a year earlier, and increased by $100.9 million, or 6.2%, from $1.63 billion as of June 30, 2025. Noninterest-bearing deposits were $671.3 million and represent 38.8% of total deposits as of September 30, 2025.
  
  
• The allowance for credit losses ("ACL") as a percentage of gross loans declined from 1.53% as of September 30, 2024, to 1.47% as of September 30, 2025.
  
  
• Credit quality remains strong with nonaccrual loans representing 0.05% of total gross loans as of September 30, 2025, up from 0.03% as of September 30, 2024.
  
  
• The Community Bank Leverage Ratio for the Bank as of September 30, 2025, was 11.29%, compared to 11.41% as of September 30, 2024.

Net Income Available to Common Shareholders

Net income available to common shareholders for the third quarter of 2025 was $8.6 million, or $3.05 per diluted common share, compared with $3.1 million, or $1.11 per diluted common share, for the linked quarter ended June 30, 2025. Net income available to common shareholders was $7.8 million, or $2.79 per diluted common share, for the third quarter of 2024. Net income available to common shareholders increased $5.5 million, or 175.4%, compared to the linked quarter, and by $0.8 million, or 10.1%, compared to the same prior year period.

Notable variances compared to the linked quarter include a decrease in non-interest expense which was primarily driven by one-time, non-recurring charges recognized in the linked quarter, along with an increase in net interest income, and a decrease in credit loss expense. Compared to the third quarter of 2025, an increase in net interest income and a decrease in non-interest expense was partially offset by a decrease in non-interest income.

Net Interest Income

Net interest income was $20.0 million, or 4.27%, of average earning assets ("net interest margin"), for the third quarter of 2025, compared with $18.2 million, or a net interest margin of 4.31%, for the same period a year earlier, and $18.1 million, or a net interest margin of 4.07%, for the quarter ended June 30, 2025.

Net interest income increased by $1.8 million, or 9.8%, compared to the same prior year period, primarily driven by growth in the Company's loan portfolio and a marginal rise in yields on loans. Loan interest income and fee accretion increased by $2.4 million compared to the third quarter of 2024, partially offset by lower interest income on interest earning deposits in other banks and investment securities. Additionally, interest expense increased $0.3 million compared to the same prior year period, primarily due to average balance growth in interest-bearing transaction accounts, partially offset by lower rates paid for deposits and lower average balances and rates paid for subordinated debentures.

Net interest income increased by $1.9 million, or 10.4%, for the quarter ended September 30, 2025, compared to the linked quarter, primarily due to an increase in interest income on loans. Interest income on loans increased $1.9 million, for the current quarter, compared to the linked quarter, primarily due to both growth in average quarterly balances and an increase in loan yields. Interest expense increased marginally, compared to the linked quarter, due to increased average balances on interest-bearing transaction accounts, largely offset by lower rates paid for deposits and lower average balances and rates paid for subordinated debentures.

The net interest margin was 4.27% for the quarter ended September 30, 2025, compared to 4.31% for the same prior year period, and 4.07% for the linked quarter ended June 30, 2025. During the past year, the cost of interest-bearing liabilities and asset yields have declined 25 basis points and 15 basis points, respectively, contributing to the year-over-year 4 basis point decline in the quarterly net interest margin. The Federal Reserve began lowering rates in the latter half of 2024 and resumed rate cuts in September of 2025, impacting the shorter end of the yield curve and reducing yields on interest-bearing deposits in other banks as well as the Company's variable rate loans and investment securities. While deposit cost pressures have begun to ease, the growth in interest-bearing deposits has marginally compressed net interest margin.

The 20 basis point increase in the net interest margin for the third quarter of 2025, compared to the linked quarter, primarily reflects robust loan growth that outpaced the growth in interest-bearing deposits, along with a higher yield on loans. The margin was further supported by a decline in interest-bearing deposit costs and benefited from the first full quarter of interest expense savings following the repayment of subordinated debentures. The significant growth in the loan portfolio and continued demand are expected to help mitigate the impact of recent rate reductions on net interest margin.

The yield on loans increased 2 basis points to 6.57%, while the yield on interest earning deposits in other banks and investment securities decreased by 103 basis points to 4.42%, and by 44 basis points to 3.88%, respectively, compared to the same prior year period. Additionally, average balances on loans increased $136.8 million, or 11.0%, average balances on interest earning deposits in other banks increased $23.1 million, or 12.0%, and average balances on investment securities increased $14.1 million, or 6.0%. The cost of interest-bearing deposits decreased 22 basis points to 2.90%, while the average balances of interest-bearing deposits increased $127.0 million, or 13.6%. The cost of subordinated debentures decreased 76 basis points to 4.11%, and average balances decreased $9.9 million, or 45.4%.

For the quarter ended September 30, 2025, the yield on loans increased by 18 basis points to 6.57%, while the yield on investment securities and interest earning deposits in other banks decreased by 10 basis points to 3.88%, and 4 basis points to 4.42%, respectively, compared to the linked quarter. Average balances on loans increased $68.3 million, or 5.20%, average balances on investment securities increased $1.4 million, or 0.58%, and average balances on interest earning deposits in other banks increased $1.7 million, or 0.81%. The cost of interest-bearing deposits decreased 11 basis points to 2.90%, while average balances on interest-bearing deposits increased $44.3 million, or 4.35%. The cost of subordinated debentures decreased 56 basis points to 4.11%, and average balances decreased $5.4 million, or 31.0%, reflecting the first full quarter benefit in interest expense savings following the repayment of subordinated debentures.

The cost of funds was 1.82% for the quarter ended September 30, 2025, a decrease of 11 basis points compared to 1.93%, for the same prior year period, and an 8 basis point decrease compared to 1.90%, for the linked quarter ended June 30, 2025. The decrease in the Company's cost of funds is generally attributable to recent Federal Reserve rate cuts, lowering the short-term rate environment which has led to deposit cost pressure and competition relief experienced over the past couple of years. The Bank has continued to grow its total deposit accounts through both new customer acquisition and the 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.

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

Provision for Credit Losses

A $0.5 million provision for credit losses was recorded for the quarter ended September 30, 2025, compared to $0.8 million for the linked quarter, and $0.4 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 loan growth 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 was $1.9 million for the quarter ended September 30, 2025, relatively unchanged when compared to the linked quarter, and decreased $0.6 million, or 24.8%, compared to $2.5 million for the same period a year earlier. Compared to the linked quarter, an increase in SBA servicing fees and gain on sale of loans and a decrease in the loss on sale of securities, offset a decline in Farmer Mac referral and servicing fee income. When compared to the same prior year period, the decrease was primarily due to a $0.7 million decline in SBA servicing fees and gain on sale of loans.

Non-Interest Expense

Non-interest expense decreased by $5.6 million, or 38.0%, to $9.1 million for the quarter ended September 30, 2025, compared to $14.7 million for the linked quarter, and decreased marginally by $0.1 million, or 1.4%, compared to $9.2 million for the quarter ended September 30, 2024.

The decrease in non-interest expense for the third quarter of 2025, compared to the linked quarter, was primarily due to a $5.2 million decrease in other expenses primarily due to non-recurring charges recorded during the linked quarter; furthermore, a $0.5 million decrease in professional services, associated with reduced legal expenses, was partially offset by a $0.2 million increase in salaries and benefits expense, reflecting higher base compensation expense.

The marginal decrease in non-interest expense for the third quarter of 2025 compared to the same period a year ago, was primarily due to a $0.5 million decrease in professional services, associated with reduced legal expenses, which was largely offset by a $0.5 million increase in salaries and benefits expense, primarily driven by higher base compensation expense and associated payroll taxes, incentive compensation costs, and group insurance costs, which was partially offset by higher deferred salary loan origination costs and lower bank owned life insurance accruals.

Operating Efficiency

The Company's operating efficiency ratio decreased to 41.7% for the third quarter of 2025, compared to 44.7% for the third quarter of 2024, and 73.8% for the linked quarter. Total non-interest expense as a percentage of average assets, another measure of the Company's efficiency, was 1.86% for the third quarter of 2025, compared to 2.08% for the third quarter of 2024, and 3.15% for the quarter ended June 30, 2025.

Income Taxes

Income tax expense was $3.6 million for the third quarter of 2025, compared to $3.2 million for the quarter ended September 30, 2024, and $1.3 million for the linked quarter ended June 30, 2025. The Company's effective tax rate for the third quarter of 2025 was 29.6%, compared to 28.9% for the same period a year ago, and 29.7% for the quarter ended June 30, 2025. 

Asset and Equity Returns

The return on average equity for the third quarter of 2025 was 16.7%, down from 17.4% for the same prior year period, and up from 6.28% for the linked quarter. The quarterly return on average assets for the third quarter of 2025 was 1.77%, unchanged from the same prior year period, and up from 0.67% for the linked quarter.

The decline in the quarterly return on average equity for the quarter ended September 30, 2025, compared to the same prior year period, is primarily attributable to the growth in average equity outpacing the growth in quarterly net income. Average equity grew 14.6%, compared to the same prior year period, while quarterly net income grew 10.1%.

The rise in quarterly returns on both average equity and average assets for the quarter ended September 30, 2025, compared to the linked quarter, was driven by elevated net interest income and the return to normalized non-interest expense levels after non-recurring charges recorded during the linked quarter.

Balance Sheet

Total assets increased by $136.0 million, or 7.4%, to $1.97 billion as of September 30, 2025, compared to September 30, 2024, and increased by $108.0 million, or 5.8%, compared to June 30, 2025. Cash and cash equivalents decreased by $51.6 million, or 16.9%, to $253.6 million as of September 30, 2025, compared to the same prior year period, and increased by $51.8 million, or 25.7%, compared to June 30, 2025.

The decrease in the Company's cash position over the last year reflects robust loan growth and increased investment security balances, which outpaced strong deposit growth and earnings. The increase in the Company's cash position over the past quarter reflects robust deposit growth and earnings, which outpaced strong loan growth.

Investment securities increased by $14.0 million or 6.0%, to $248.1 million as of September 30, 2025, compared to $234.1 million as of September 30, 2024, and decreased by $2.1 million, or 0.8%, compared to $250.2 million as of June 30, 2025. The increase in the investment securities portfolio over the past year primarily reflects the deployment of excess liquidity into new, higher yielding securities, to supplement robust lending demand, net of repayment and amortization of the bond portfolio. The decrease in the investment portfolio during the third quarter of 2025, compared to the linked quarter, reflects normal repayment and amortization of the bond portfolio, net of a decline in unrealized losses on the investment securities portfolio attributable to market rate changes during the quarter.

Loans increased by $171.8 million, or 13.8%, to $1.42 billion as of September 30, 2025, compared to September 30, 2024, and increased by $61.0 million, or 4.5%, compared to June 30, 2025. Loan growth during the last year has been diversified across the portfolio, with notable growth in non-owner occupied commercial real estate, commercial and industrial, multi-family, and loans secured by farmland, which were partially offset by the contraction in owner occupied commercial real estate loans. Loan growth during the last quarter was concentrated in construction and land development non-owner and owner occupied commercial real estate, and commercial and industrial loans.

Total deposits increased by $121.3 million, or 7.5%, to $1.73 billion as of September 30, 2025, from $1.61 billion as of September 30, 2024, and increased by $100.9 million, or 6.2%, compared to June 30, 2025. Noninterest-bearing deposits increased by $43.9 million, or 7.0%, during the last year, and increased by $35.8 million, or 5.6%, since June 30, 2025. The increase in deposits over the past year reflects an increase in average balances among existing customers, a lower account closure ratio, and stable growth in new account openings. Noninterest-bearing deposits represented 38.8% of total deposits on September 30, 2025.

During the quarter ended June 30, 2025, the Company repaid $10 million of subordinated debentures at the end of their fixed term on May 20, 2025, resulting in a year over year decline in subordinated debentures.

Total shareholders' equity was $211.7 million as of September 30, 2025, an increase of $27.0 million, or 14.6%, compared to September 30, 2024, and an increase of $12.4 million, or 6.2%, compared to June 30, 2025, primarily due to quarterly earnings, net of changes in accumulated other comprehensive loss. The accumulated other comprehensive loss component of equity was relatively stable year over year, as a $0.5 million increase in the accumulated other comprehensive loss associated with the investment securities portfolio was partially offset by a $0.3 million decrease in the accumulated other comprehensive loss on the interest rate swap contracts. The accumulated other comprehensive loss component of equity decreased by $3.6 million during the quarter due to a decline in the accumulated other comprehensive loss on the investment securities portfolio. The change in the accumulated other comprehensive loss is primarily the result of movements in the fair market value of the investment securities portfolio attributable to interest rates and not related to credit quality.

Allowance for Credit Losses and Credit Quality

The ACL as a percentage of gross loans decreased to 1.47% as of September 30, 2025, from 1.50% as of June 30, 2025, and 1.53% as of September 30, 2024. The 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.

Nonperforming assets were $0.7 million as of September 30, 2025, down from $1.7 million as of June 30, 2025, and up from $0.4 million on September 30, 2024. Nonperforming assets as a percentage of total assets were 0.04% as of September 30, 2025, down from 0.09% as of June 30, 2025, and up from 0.02% as of September 30, 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 11.29%, as of September 30, 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 and 14 basis points, from 11.41% and 11.43%, as of the periods ended September 30, 2024, and June 30, 2025, respectively. During the last year, earnings growth was outpaced by the combined impact of growth in average assets and dividends paid by the Bank to the Company, resulting in a decrease in the Bank's Community Bank Leverage ratio compared to the prior year.

Stock Repurchase Program

On April 28, 2025, the Company announced 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 $3.0 million of the Company's common stock may be repurchased by the Company. The previous extension under the Plan expired on April 24, 2025, and the Company extended the Plan for an additional six months, through October 23, 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 third quarter of 2025 the Company repurchased 1,872 shares under the 2022 10b5-1 Plan at an average price of $93.73. Since Plan inception the Company has repurchased 21,425 shares at an average price of $90.70.

About Mission Bancorp and Mission Bank

With $2.0 billion in assets, Mission Bancorp is headquartered in Bakersfield, California and is the holding company of three wholly owned subsidiaries, Mission Bank, Mission 1031 Exchange, LLC, and Mission Community Development, LLC. 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, 2025		June 30, 2025		December 31, 2024		September 30, 2024		09/25 - 06/25		09/25 - 09/24
Assets
	Cash and due from banks				$                            45,853		$                            65,544		$                            46,596		$                            53,048		$              (19,691)		$                (7,195)
	Interest earning deposits in other banks				207,788		136,287		246,872		252,204		71,501		(44,416)
		Total cash and cash equivalents			253,641		201,831		293,468		305,252		51,810		(51,611)
	Interest earning deposits maturing over ninety days				490		490		490		490		-		-
	Investment securities available-for-sale, at fair value				248,109		250,199		244,922		234,146		(2,090)		13,963
	Loans				1,416,607		1,355,615		1,290,802		1,244,803		60,992		171,804
	Allowance for credit losses				(20,799)		(20,332)		(19,423)		(19,022)		(467)		(1,777)
	Loans, net				1,395,808		1,335,283		1,271,379		1,225,781		60,525		170,027
	Premises and equipment, net				2,762		2,855		2,785		2,873		(93)		(111)
	Bank owned life insurance				22,372		22,211		21,899		21,743		161		629
	Deferred tax asset, net				15,027		16,595		16,364		13,909		(1,568)		1,118
	Interest receivable and other assets				28,575		29,277		24,549		26,566		(702)		2,009
Total Assets					$                       1,966,784		$                       1,858,741		$                       1,875,856		$                       1,830,760		$              108,043		$              136,024
Liabilities and Shareholders' Equity
	Deposits
		Noninterest-bearing demand			$                          671,285		$                          635,530		$                          646,129		$                          627,404		$                35,755		$                43,881
		Interest bearing			1,057,847		992,734		1,003,196		980,406		65,113		77,441
			Total deposits		1,729,132		1,628,264		1,649,325		1,607,810		100,868		121,322
		Other borrowings			-		-		-		-		-		-
		Subordinated debentures, net of issuance costs			11,977		11,966		21,934		21,916		11		(9,939)
		Interest payable and other liabilities			13,929		19,183		15,111		16,249		(5,254)		(2,320)
Total Liabilities					1,755,038		1,659,413		1,686,370		1,645,975		95,625		109,063
Shareholders' Equity
		Common stock			101,495		101,331		89,496		89,182		164		12,313
		Retained earnings			125,444		116,806		118,248		110,583		8,638		14,861
		Accumulated other comprehensive loss			(15,193)		(18,809)		(18,258)		(14,980)		3,616		(213)
			Total shareholders' equity		211,746		199,328		189,486		184,785		12,418		26,961
	Total Liabilities and Shareholders' Equity				$                       1,966,784		$                       1,858,741		$                       1,875,856		$                       1,830,760		$              108,043		$              136,024
SBA Paycheck Protection Program Loans					306		355		452		501		(49)		(195)

 

MISSION BANCORP
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(Dollars in thousands)
				For the Three Months Ended										For the Nine Months Ended
										Variance								Variance
				September 30, 2025		June 30, 2025		September 30, 2024		09/25 - 06/25		09/25 - 09/24		September 30, 2025		September 30, 2024		09/25 - 09/24
Interest and Dividend Income
	Loans			$                             22,867		$                             20,920		$                             20,479		$                 1,947		$                 2,388		$                             64,321		$                             59,587		$                 4,734
	Investment securities			2,430		2,449		2,541		(19)		(111)		7,213		7,584		(371)
	Other			2,566		2,558		2,780		8		(214)		7,796		5,945		1,851
		Total interest and dividend income		27,863		25,927		25,800		1,936		2,063		79,330		73,116		6,214
Interest Expense
	Other deposits			7,244		7,020		6,395		224		849		20,852		16,260		4,592
	Time deposits			509		608		938		(99)		(429)		1,975		2,343		(368)
		Total interest expense on deposits		7,753		7,628		7,333		125		420		22,827		18,603		4,224
	Other borrowings			-		-		-		-		-		-		315		(315)
	Subordinated debentures			124		202		268		(78)		(144)		593		803		(210)
		Total interest expense		7,877		7,830		7,601		47		276		23,420		19,721		3,699
Net Interest Income				19,986		18,097		18,199		1,889		1,787		55,910		53,395		2,515
Credit Loss Expense				466		750		394		(284)		72		1,371		1,069		302
Net Interest Income After Provision
	for Credit Losses			19,520		17,347		17,805		2,173		1,715		54,539		52,326		2,213
Non-Interest Income
	Service charges, fees and other income			1,195		1,153		1,084		42		111		3,414		3,006		408
	Farmer Mac referral and servicing fees			293		389		345		(96)		(52)		969		971		(2)
	SBA servicing fees and gain on sale of loans			362		305		1,032		57		(670)		907		1,673		(766)
	Loss on sale of securities			-		(49)		-		49		-		(49)		(31)		(18)
		Total non-interest income		1,850		1,798		2,461		52		(611)		5,241		5,619		(378)
Non-Interest Expense
	Salaries and benefits			5,915		5,732		5,402		183		513		17,581		16,189		1,392
	Professional services			1,010		1,558		1,555		(548)		(545)		3,607		3,866		(259)
	Occupancy and equipment			599		583		589		16		10		1,758		1,750		8
	Data processing and communication			380		382		418		(2)		(38)		1,128		1,219		(91)
	Other			1,197		6,431		1,263		(5,234)		(66)		8,941		3,710		5,231
		Total non-interest expense		9,101		14,686		9,227		(5,585)		(126)		33,015		26,734		6,281
Net Income Before Provision for Income Taxes				12,269		4,459		11,039		7,810		1,230		26,765		31,211		(4,446)
Provision for Income Taxes				3,631		1,323		3,194		2,308		437		7,839		8,734		(895)
Net Income				$                               8,638		$                              3,136		$                              7,845		$                 5,502		$                    793		$                             18,926		$                             22,477		$                (3,551)

 

MISSION BANCORP
FINANCIAL HIGHLIGHTS
(Unaudited)
(Dollars in thousands, except per share data)
		As of or for the Three Months Ended								As of or for the Nine Months Ended
		September 30, 2025		June 30, 2025		December 31, 2024		September 30, 2024		September 30, 2025		September 30, 2024
Ratio of total loans to total deposits		81.93 %		83.26 %		78.26 %		77.42 %		81.93 %		77.42 %
Return on average assets		1.77 %		0.67 %		1.64 %		1.77 %		1.34 %		1.78 %
Return on average equity		16.71 %		6.28 %		16.27 %		17.43 %		12.67 %		17.70 %
Net interest margin		4.27 %		4.07 %		3.96 %		4.31 %		4.14 %		4.44 %
Efficiency ratio		41.68 %		73.82 %		42.03 %		44.66 %		53.99 %		45.30 %
Non-interest expense as a percent of average assets		1.86 %		3.15 %		1.74 %		2.08 %		2.33 %		2.12 %
Non-interest income as a percent of average assets		0.38 %		0.39 %		0.34 %		0.56 %		0.37 %		0.44 %
Community Bank Leverage Ratio		11.29 %		11.43 %		11.07 %		11.41 %		11.63 %		11.41 %
Weighted average shares outstanding - basic*		2,780,176		2,783,721		2,767,351		2,765,518		2,780,163		2,756,186
Weighted average shares outstanding - diluted*		2,835,219		2,834,836		2,821,693		2,811,947		2,834,136		2,802,360
Shares outstanding at period end - basic*		2,778,710		2,780,875		2,768,438		2,765,308		2,778,710		2,765,308
Earnings per share - basic		$                                3.11		$                                1.13		$                                2.77		$                                2.84		$                                6.81		$                                8.16
Earnings per share - diluted		$                                3.05		$                                1.11		$                                2.72		$                                2.79		$                                6.68		$                                8.02
Total assets		$                       1,966,784		$                       1,858,741		$                       1,875,856		$                       1,830,760		$                       1,966,784		$                       1,830,760
Loans and leases net of deferred fees		$                       1,416,607		$                       1,355,615		$                       1,290,802		$                       1,244,803		$                       1,416,607		$                       1,244,803
Noninterest-bearing demand deposits		$                          671,285		$                          635,530		$                          646,129		$                          627,404		$                          671,285		$                          627,404
Total deposits		$                       1,729,132		$                       1,628,264		$                       1,649,325		$                       1,607,810		$                       1,729,132		$                       1,607,810
Noninterest-bearing deposits as a percentage total deposits		38.82 %		39.03 %		39.18 %		39.02 %		38.82 %		39.02 %
Average total assets		$                       1,940,923		$                       1,868,348		$                       1,863,633		$                       1,763,476		$                       1,891,668		$                       1,688,433
Average total equity		$                          205,128		$                          200,310		$                          187,377		$                          179,068		$                          199,688		$                          169,671
Shareholders' equity / total assets		10.77 %		10.72 %		10.10 %		10.09 %		10.77 %		10.09 %
Book value per share		$                              76.20		$                              71.68		$                              68.44		$                              66.82		$                              76.20		$                              66.82

*Outstanding shares adjusted for 5% dividend declared on April 24, 2025.

 

MISSION BANCORP
AVERAGE BALANCES AND RATES
(Unaudited)
(Dollars in thousands)
					For the Quarter Ended				For the Quarter Ended				For the Quarter Ended
					September 30, 2025				June 30, 2025				September 30, 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				$                  215,227	$       2,396	4.42 %		$                  213,500	$       2,373	4.46 %		$                  192,115	$       2,634	5.45 %
	Investment securities				248,188	2,430	3.88 %		246,748	2,449	3.98 %		234,076	2,541	4.32 %
	Loans				1,381,406	22,867	6.57 %		1,313,087	20,920	6.39 %		1,244,631	20,479	6.55 %
	Other earning assets				10,846	170	6.22 %		9,027	185	8.22 %		9,003	146	6.45 %
		Total Earning Assets			1,855,667	27,863	5.96 %		1,782,362	25,927	5.83 %		1,679,825	25,800	6.11 %
	Non-interest earning assets				85,256				85,986				83,651
		Total Assets			$               1,940,923				$               1,868,348				$               1,763,476
Liabilities and Capital
	Interest-bearing deposits
		Interest-bearing transaction accounts			$                  945,762	$       7,224	3.03 %		$                  910,089	$       6,985	3.08 %		$                  791,777	$       6,221	3.13 %
		Time deposits			64,596	509	3.13 %		72,975	608	3.34 %		89,877	938	4.15 %
		1031 Exchange deposits			51,365	20	0.15 %		34,358	35	0.41 %		53,047	174	1.30 %
			Total interest-bearing deposits		1,061,723	7,753	2.90 %		1,017,422	7,628	3.01 %		934,701	7,333	3.12 %
	Borrowed funds
		Other borrowings			3	-	4.87 %		-	-	0.00 %		-	-	0.00 %
		Subordinated debt			11,971	124	4.11 %		17,343	202	4.67 %		21,905	268	4.87 %
			Total interest-bearing liabilities		1,073,697	7,877	2.91 %		1,034,765	7,830	3.04 %		956,606	7,601	3.16 %
	Noninterest-bearing deposits				643,854				616,724				612,272
			Total Funding		1,717,551	7,877	1.82 %		1,651,489	7,830	1.90 %		1,568,878	7,601	1.93 %
	Other noninterest-bearing liabilities				18,244				16,549				15,530
		Total Liabilities			1,735,795				1,668,038				1,584,408
		Total Capital			205,128				200,310				179,068
			Total Liabilities and Capital		$               1,940,923				$               1,868,348				$               1,763,476
	Net Interest Margin				4.27 %				4.07 %				4.31 %
	Net Interest Spread				4.14 %				3.93 %				4.18 %

 

MISSION BANCORP
AVERAGE BALANCES AND RATES
(Unaudited)
(Dollars in thousands)
					For the Nine Months Ended				For the Nine Months Ended
					September 30, 2025				September 30, 2024
					Average	Income /	Yield /		Average	Income /	Yield /
					Balance	Expense	Rate		Balance	Expense	Rate
Assets
	Interest earning deposits in other banks				$               220,206	$   7,287	4.42 %		$    135,176	$       5,462	5.40 %
	Investment securities				245,581	7,213	3.93 %		236,261	7,584	4.29 %
	Loans				1,331,449	64,321	6.46 %		1,225,041	59,587	6.50 %
	Other earning assets				9,640	509	7.06 %		8,991	483	7.18 %
		Total Earning Assets			1,806,876	79,330	5.87 %		1,605,469	73,116	6.08 %
	Non-interest earning assets				84,792				82,964
		Total Assets			$            1,891,668				$ 1,688,433
Liabilities and Capital
	Interest-bearing deposits
		Interest-bearing transaction accounts			$               911,546	$ 20,751	3.04 %		$    726,364	$      15,888	2.92 %
		Time deposits			76,558	1,975	3.45 %		79,977	2,343	3.91 %
		1031 Exchange deposits			40,753	101	0.33 %		48,586	372	1.02 %
			Total interest-bearing deposits		1,028,857	22,827	2.97 %		854,927	18,603	2.91 %
	Borrowed funds
		Other borrowings			1	-	0.00 %		8,851	315	4.75 %
		Subordinated debt			17,048	593	4.65 %		21,888	803	4.90 %
			Total interest-bearing liabilities		1,045,906	23,420	2.99 %		885,666	19,721	2.97 %
	Noninterest-bearing deposits				628,918				616,896
			Total Funding		1,674,824	23,420	1.87 %		1,502,562	19,721	1.75 %
	Other noninterest-bearing liabilities				17,156				16,200
		Total Liabilities			1,691,980				1,518,762
		Total Capital			199,688				169,671
			Total Liabilities and Capital		$            1,891,668				$ 1,688,433
	Net Interest Margin				4.14 %				4.44 %
	Net Interest Spread				4.00 %				4.33 %

 

MISSION BANCORP
LOAN DETAIL
(Unaudited)
(Dollars in thousands)
												Variance
				September 30, 2025		June 30, 2025		December 31, 2024		September 30, 2024		09/25 - 06/25		09/25 - 09/24
Loans
	Construction and land development			$                   63,454		$                      45,471		$                      59,474		$                      56,554		$                   17,983		$                     6,900
	Secured by farmland			155,882		154,032		137,376		133,597		1,850		22,285
	Residential 1 to 4 units			67,517		65,603		61,596		51,834		1,914		15,683
	Multi-family			72,470		67,589		47,050		40,770		4,881		31,700
	Owner occupied commercial real estate			515,348		504,883		525,745		524,860		10,465		(9,512)
	Non-owner occupied commercial real estate			257,864		242,205		195,339		190,642		15,659		67,222
	Commercial and industrial			194,741		184,405		170,433		160,887		10,336		33,854
	Agricultural production			92,042		92,609		95,669		88,060		(567)		3,982
	Other loans			239		1,611		684		129		(1,372)		110
	Net Deferred Fees-Costs			(2,951)		(2,793)		(2,564)		(2,530)		(158)		(421)
		Total Loans		$               1,416,607		$                 1,355,615		$                 1,290,802		$                 1,244,803		$                   60,992		$                  171,804

 

MISSION BANCORP
Credit Quality
(Unaudited)
(Dollars in thousands)
				September 30, 2025		June 30, 2025		December 31, 2024		September 30, 2024
Asset quality
Loans past due 90 days or more and accruing interest				$                            -		$                              -		$                              -		$                              -
Nonaccrual loans				$                       717		$                      1,698		$                      1,062		$                         399
Restructured loans
	Nonperforming restructured loans			$                            -		$                              -		$                              -		$                              -
	Performing restructured loans			$                            -		$                              -		$                              -		$                              -
Other real estate owned				$                            -		$                              -		$                              -		$                              -
Total nonperforming assets				$                       717		$                      1,698		$                      1,062		$                         399
Allowance for credit losses to total loans				1.47 %		1.50 %		1.50 %		1.53 %
Allowance for credit losses to nonperforming loans				2901.06 %		1197.41 %		1828.91 %		4767.42 %
Nonaccrual loans to total loans				0.05 %		0.13 %		0.08 %		0.03 %
Nonperforming assets to total assets				0.04 %		0.09 %		0.06 %		0.02 %

 

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SOURCE Mission Bank

FAQ

What were Mission Bancorp (MSBC) third-quarter 2025 earnings per share and net income?

Mission Bancorp reported net income available to common shareholders of $8.6 million, or $3.05 per diluted share for Q3 2025.

How much did Mission Bancorp (MSBC) loans grow in Q3 2025?

Gross loans increased $171.8 million, or 13.8% year-over-year to $1.42 billion as of September 30, 2025.

What deposit growth did Mission Bancorp (MSBC) report for Q3 2025?

Total deposits rose to $1.73 billion; management cited annualized noninterest-bearing and total deposit growth of 22% and 25%, respectively.

Did Mission Bancorp (MSBC) report changes in net interest margin or net interest income for Q3 2025?

Net interest margin was 4.27% for Q3 2025 and net interest income rose, including a 10.4% increase versus the linked quarter.

Why did Mission Bancorp (MSBC) non-interest expense decline in Q3 2025?

Non-interest expense fell primarily due to a $5.2 million decrease in other expenses driven by non-recurring charges recorded in the linked quarter.

How did Mission Bancorp (MSBC) perform on efficiency and credit metrics in Q3 2025?

The operating efficiency ratio improved to 41.7%; nonaccrual loans were 0.05% of gross loans and ACL was 1.47% of gross loans as of September 30, 2025.