Mission Bancorp Reports All-Time Record Quarterly Earnings of $9.2 Million for the Third Quarter of 2026, an Increase of 6% Year over Year. Annualized Total Deposit Growth of 14%. Announces Extension of Stock Repurchase Plan.

Deposit growth and a wider net interest margin accompanied higher operating expenses and a sequential decline in gross loans.

Rhea-AI Summary

Mission Bancorp (MSBC) reported record third-quarter 2026 net income available to common shareholders of $9.2 million, up 6.1% year over year. Diluted earnings per share were $3.05, compared with $2.90 a year earlier and $2.74 in the linked quarter. Net interest income reached $21.6 million, with net interest margin rising to 4.38% from 4.27% a year earlier.

At September 30, deposits totaled $1.81 billion, up 4.9% year over year and 3.6% from June 30. Gross loans reached $1.52 billion, up 7.6% annually but down 0.4% sequentially. Non-interest expense rose 10.7% annually to $10.1 million. Nonaccrual loans increased to 0.06% of gross loans from 0.02% in June, while the Bank's Community Bank Leverage Ratio reached 12.22%, versus 11.29% a year earlier. Mission also announced an extension of its stock repurchase plan.

16 points · 0 major

MixediHow this balance works

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0 major · 11 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointCommon shareholders' quarterly net income reached $9.2 million, up 6.1% annually and 11.6% sequentially.
• Moderate pointQuarterly net interest income increased to $21.6 million, up 8.2% annually and 5.8% sequentially.
• Moderate pointDeposits reached $1.81 billion, up 4.9% annually and 3.6% from June 30, 2026.
• Moderate pointGross loans reached $1.52 billion, up 7.6% annually but down 0.4% from June 30, 2026.
• Minor pointDiluted quarterly earnings reached $3.05 per share, versus $2.90 a year earlier and $2.74 sequentially.

11 minor points

• Minor pointNet interest margin widened to 4.38%, versus 4.27% a year earlier and 4.35% sequentially.
• Minor pointBank Community Bank Leverage Ratio rose to 12.22%, versus 11.29% at September 30, 2025.
• Minor pointSubordinated debt was retired during the third quarter of 2026, reducing associated interest expense.
• Minor pointCredit-loss provision declined to $0.5 million, versus $0.8 million sequentially; unchanged from a year earlier.
• Minor pointQuarterly non-interest income rose 10.7% sequentially to $1.8 million, versus $1.9 million a year earlier.
• Minor pointCost of funds fell to 1.63%, versus 1.82% a year earlier and 1.64% sequentially.
• Minor pointInterest-bearing deposit costs fell 24 basis points annually to 2.66%, but rose 6 basis points sequentially.
• Minor pointReturn on average assets increased to 1.78%, versus 1.77% a year earlier and 1.67% sequentially.
• Minor pointTotal assets reached $2.07 billion, up 5.4% annually and 2.9% from June 30, 2026.
• Minor pointCash and cash equivalents increased 8.5% annually and 36.7% from June 30, 2026.
• Minor point. Forward-looking: it has not happened yet and may not happen.Mission announced an extension of its stock repurchase plan.

Negative

• Moderate pointQuarterly non-interest expense rose to $10.1 million, up 10.7% annually and 1.8% sequentially.
• Minor pointNonaccrual loans increased to 0.06% of gross loans, from 0.02% at June 30, 2026.
• Minor pointReturn on average equity was 15.0%, below 16.7% a year earlier but above 14.1% sequentially.
• Minor pointOperating efficiency ratio reached 43.0%, worse than 41.7% a year earlier but better than 44.8% sequentially.
• Minor pointNon-interest expense averaged 1.96% of average assets, versus 1.86% annually and 2.02% sequentially.

6 minor points

• Minor pointQuarterly income tax expense rose to $3.7 million, versus $3.6 million annually and $3.2 million sequentially.
• Minor pointInvestment securities declined 11.2% annually to $220.3 million, partly reflecting increased unrealized losses.
• Minor pointLoan yield fell 9 basis points annually to 6.48%, although it rose 8 basis points sequentially.
• Minor pointOther-bank deposit yield fell 68 basis points annually to 3.73%, although it rose 4 basis points sequentially.
• Minor pointInvestment securities yield fell to 3.41%, down 47 basis points annually and 8 basis points sequentially.
• Minor pointInterest-rate swaps incurred $17 thousand quarterly interest expense, versus $87 thousand sequentially and $110 thousand income annually.

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BAKERSFIELD, Calif., Oct. 26, 2026 /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 $9.2 million, or $3.05 per diluted common share, for the third quarter of 2026, compared to net income available to common shareholders of $8.6 million, or $2.90 per diluted common share, for the third quarter of 2025, and net income available to common shareholders of $8.2 million, or $2.74 per diluted common share, for the linked quarter.

"We are proud to report record earnings of $9.2 million for the third quarter as well as annualized total deposit growth of 14% and over $107 million in loan growth year over year," said Mission Bank President and CEO AJ Antongiovanni. "These results can be attributed to the strength of our team and the deep, personal relationships we have built with our customers. Over the last couple quarters, we have increased our presence in existing markets and opened a new office in the Fresno market, which is driving growth. Our success is directly tied to the depositors and borrowers who come to Mission seeking a relationship where bankers are knowledgeable and local. Looking forward, the impacts of rising inflation and interest rates could contribute to an economic slowdown. However, we proceed with confidence in the strength of our team and balance sheet. We are well positioned to navigate the financial headwinds that could impact the broader market."

Third Quarter 2026 Financial Highlights

• Gross loans increased by $107.3 million, or 7.6%, to $1.52 billion as of September 30, 2026, compared to $1.42 billion as of September 30, 2025, and decreased by $6.3 million, or 0.4%, compared to balances as of June 30, 2026.

• Total deposits increased by $84.9 million, or 4.9%, to $1.81 billion as of September 30, 2026, compared to $1.73 billion a year earlier, and increased by $62.7 million, or 3.6%, from $1.75 billion as of June 30, 2026. Non-interest-bearing deposits were $701.7 million and represent 38.7% of total deposits as of September 30, 2026.

• The allowance for credit losses ("ACL") as a percentage of gross loans rose from 1.37% as of June 30, 2026, to 1.38% as of September 30, 2026.

• Credit quality remains strong with nonaccrual loans representing 0.06% of total gross loans as of September 30, 2026, up from 0.02% as of June 30, 2026.

• The Community Bank Leverage Ratio for the Bank as of September 30, 2026, was 12.22%, compared to 11.29% as of September 30, 2025.

Net Income Available to Common Shareholders

Net income available to common shareholders for the third quarter of 2026 was $9.2 million, or $3.05 per diluted common share, compared with $8.2 million, or $2.74 per diluted common share, for the linked quarter ended June 30, 2026. Net income available to common shareholders was $8.6 million, or $2.90 per diluted common share, for the third quarter of 2025. Net income available to common shareholders increased $1.0 million, or 11.6%, compared to the linked quarter, and increased by $0.5 million, or 6.1%, compared to the same prior year period.

Notable variances compared to the linked quarter include increases in net interest income and non-interest income, along with a decrease in the provision for credit losses, which were partially offset by an increase in the provision for income taxes and non-interest expense. Compared to the third quarter of 2025, an increase in net interest income was partially offset by an increase in non-interest expense.

Net Interest Income

Net interest income was $21.6 million, or 4.38%, of average earning assets ("net interest margin"), for the third quarter of 2026, compared with $20.0 million, or a net interest margin of 4.27%, for the same prior year period, and $20.4 million, or a net interest margin of 4.35%, for the quarter ended June 30, 2026.

Net interest income increased by $1.6 million, or 8.2%, compared to the same prior year period, primarily due to growth in the Company's loan portfolio and lower funding costs, which more than offset declining earning asset yields following Federal Reserve rate reductions during the latter part of 2025. Loan interest income and fee accretion for the current quarter increased by $2.2 million compared to the third quarter of 2025, partially offset by a decline of $0.6 million in interest income on interest earning deposits in other banks and a $0.5 million decline in interest income on investment securities. Additionally, interest expense declined $0.5 million compared to the same prior year period, primarily due to lower deposit costs and the retirement of subordinated debt during the third quarter of 2026.

Net interest income increased by $1.2 million, or 5.8%, for the quarter ended September 30, 2026, compared to the linked quarter, primarily due to higher average loan balances and yields and increased average balances on interest earning deposits in other banks, partially offset by higher interest expense. Interest income on loans rose $1.0 million, primarily driven by higher average balances and yields, while interest income on interest earning deposits in other banks rose $0.5 million, primarily due to higher average balances. Interest expense increased $0.3 million compared to the linked quarter, primarily due to higher average balances on interest-bearing deposits, partially offset by savings from the retirement of subordinated debt during the quarter. 

The net interest margin was 4.38% for the quarter ended September 30, 2026, compared to 4.27% for the same prior year period, and 4.35% for the linked quarter ended June 30, 2026. During the past year, the cost of interest-bearing liabilities declined 24 basis points, while the yield on earning assets declined 10 basis points resulting in an 11 basis point year-over-year expansion in the quarterly net interest margin. Following rate reductions during the latter part of 2025, the Federal Reserve increased the federal funds rate by 25 basis points in September 2026 amid persistent inflationary pressures. The effects of prior Federal Reserve rate reductions have continued to support lower funding costs, while sustained loan growth and a favorable earning-asset mix have helped mitigate the impact of declining earning asset yields on net interest margin.

The 3 basis point increase in the net interest margin for the third quarter of 2026, compared to the linked quarter, primarily reflects a modest increase in earning asset yields, driven by higher loan yields, partially offset by a shift in earning asset mix toward lower-yielding interest-earning deposits in other banks. Funding costs remained relatively stable, as higher interest expense associated with higher average-interest bearing deposit balances were partially offset by savings from the retirement of subordinated debt during the quarter.

The yield on loans decreased 9 basis points to 6.48%, while the yield on interest earning deposits in other banks and investment securities decreased by 68 basis points to 3.73%, and 47 basis points to 3.41%, respectively, compared to the same prior year period. Additionally, our earning asset mix improved due to an increase in the average balances on loans of $153.6 million, or 11.1%, while the average balances on interest earning deposits in other banks decreased $31.5 million, or 14.6%, and average balances on investment securities decreased $20.2 million, or 8.2%. The cost of interest-bearing deposits decreased 24 basis points to 2.66%, while the average balances of interest-bearing deposits increased $28.5 million, or 2.7%. Average subordinated debt balances declined following the retirement of subordinated debt during the third quarter of 2026.

For the quarter ended September 30, 2026, the yield on loans increased 8 basis points to 6.48%, while the yield on interest-earning deposits in other banks increased 4 basis points to 3.73%, and the yield on investment securities decreased 8 basis points to 3.41%, compared to the linked quarter. Average balances on loans increased $26.9 million, or 1.8%, and average balances on interest-earning deposits in other banks increased $54.7 million, or 42.4%, while average investment securities' balances decreased $8.0 million, or 3.4%. The cost of interest-bearing deposits increased 6 basis points to 2.66%, and average interest-bearing deposits increased $37.4 million, or 3.6%. Average subordinated debt balances decreased $10.2 million following the retirement of subordinated debt during the quarter.

The cost of funds was 1.63% for the quarter ending September 30, 2026, a decrease of 19 basis points compared to 1.82%, for the same prior year period, and a 1 basis point decrease compared to 1.64%, for the linked quarter ended June 30, 2026. The decrease in the Company's cost of funds over the last year is primarily attributable to lower deposit costs following Federal Reserve rate reductions during the latter part of 2025, along with reduced subordinated debt expense. 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, some rate-sensitive clients have opted for higher yielding investment options.

During the third quarter of 2026, one of the Company's pay-fixed, receive-floating, interest rate swaps used to hedge interest rate risk for the loan portfolio matured, while its existing swap associated with the investment securities portfolio remains outstanding. Additionally, the Company entered into a new forward-starting pay-fixed, receive-floating, interest rate swap agreement associated with the investment securities portfolio. As of September 30, 2026, the Company maintained interest rate swap agreements with notional balances totaling $93 million, to hedge against rising rates on a portion of its fixed rate investment securities portfolio. Combined, interest rate swap contracts incurred $17 thousand of interest expense for the third quarter of 2026, compared to $87 thousand in interest expense for the linked quarter and $110 thousand in interest income for the third quarter of 2025.

Provision for Credit Losses

A $0.5 million provision for credit losses was recorded for the quarter ended September 30, 2026, compared to $0.8 million for the linked quarter, and $0.5 million for the same prior year period. 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 has remained stable, demonstrating a low credit risk profile during the past twelve months.

Non-Interest Income

Non-interest income increased $0.2 million, or 10.7%, to $1.8 million for the quarter ended September 30, 2026, compared to $1.7 million for the linked quarter, and remained relatively stable compared to $1.9 million for the same prior year period. Compared to the linked quarter, modest increases in SBA servicing fees and gain on sale of loans, service charges, fees and other income, and higher Farmer Mac referral and servicing fee income contributed to the increase. Compared to the same prior year period, higher Farmer Mac referral and servicing fee income was offset by lower SBA servicing fees and gain on sale of loans and service charges, fees and other income.

Non-Interest Expense

Non-interest expense increased by $0.2 million, or 1.8%, to $10.1 million for the quarter ended September 30, 2026, compared to $9.9 million for the linked quarter, and increased by $1.0 million, or 10.7%, compared to $9.1 million for the quarter ended September 30, 2025.

The increase in non-interest expense for the third quarter of 2026, compared to the linked quarter, was primarily due to a $0.1 million increase in professional services expense attributable to higher consulting and other professional services costs.

The increase in non-interest expense for the third quarter of 2026 compared to the same prior year period was primarily due to a $0.5 million increase in salaries and benefits expense associated with new hire activity, including the North San Luis Obispo County team as well as increases in bank-owned life insurance accruals, and other payroll related accruals. These increases were partially offset by higher deferred salary loan origination costs. Additionally, professional services expense increased $0.3 million attributable to higher consulting and other professional services costs.

Operating Efficiency

The Company's operating efficiency ratio increased to 43.0% for the third quarter of 2026, compared to 41.7% for the third quarter of 2025, and decreased from 44.8% for the linked quarter. Total non-interest expense as a percentage of average assets, another measure of the Company's efficiency, was 1.96% for the third quarter of 2026, compared to 1.86% for the third quarter of 2025, and 2.02% compared to the quarter ended June 30, 2026.

Income Taxes

Income tax expense was $3.7 million for the third quarter of 2026, compared to $3.6 million for the quarter ended September 30, 2025, and $3.2 million for the linked quarter ended June 30, 2026. The Company's effective tax rate for the third quarter of 2026 was 28.9%, compared to 29.6% for the same prior year period, and 28.3% for the quarter ended June 30, 2026. 

Asset and Equity Returns

The return on average equity for the third quarter of 2026 was 15.0%, down from 16.7% for the same prior year period, and 14.1% for the linked quarter. The quarterly return on average assets for the third quarter of 2026 was 1.78%, up from 1.77% from the same prior year period, and 1.67% for the linked quarter.

The decline in quarterly return on average equity for the quarter ended September 30, 2026, compared to the same prior year period, was primarily attributable to growth in average equity outpacing earnings growth, while the increase in return on average assets was attributable to higher quarterly net income outpacing growth in average assets. Compared to the same prior year period, average equity increased 17.9%, while average assets increased 5.4%.

The increase in quarterly returns on both average equity and average assets for the quarter ended September 30, 2026, compared to the linked quarter, is primarily attributable to higher quarterly net income, which outpaced growth in average equity and average assets.

Balance Sheet

Total assets increased by $105.9 million, or 5.4%, to $2.07 billion as of September 30, 2026, compared to September 30, 2025, and increased by $58.2 million, or 2.9%, compared to June 30, 2026. Cash and cash equivalents increased by $21.5 million, or 8.5%, compared to the same prior year period, and increased by $73.8 million, or 36.7%, compared to June 30, 2026.

The increase in the Company's cash position over the past quarter primarily reflects continued strong deposit growth, coupled with a modest decline in outstanding loan balances.

Investment securities decreased by $27.8 million, or 11.2%, to $220.3 million as of September 30, 2026, compared to $248.1 million as of September 30, 2025, and decreased by $11.6 million, or 5.0%, compared to $231.8 million as of June 30, 2026. The decline in the investment securities portfolio over the past year primarily reflects repayment and amortization of the bond portfolio and an increase in the unrealized losses on the investment securities portfolio attributable to market rate changes. During the year, the Company continued to utilize cash flows generated from its investment portfolio to support robust loan growth while maintaining a strong liquidity position. The decrease in the investment portfolio during the third quarter of 2026, compared to the linked quarter, reflected normal repayment and amortization of the bond portfolio, along with an increase in unrealized losses on the investment securities portfolio attributable to market rate changes during the quarter.

Loans increased by $107.3 million, or 7.6%, to $1.52 billion as of September 30, 2026, compared to September 30, 2025, and decreased by $6.3 million, or 0.4%, compared to June 30, 2026. Loan growth during the last year reflected broad-based growth across nearly every loan category, offset by contraction in commercial and industrial and residential 1 to 4 family loans. The modest loan decline during the last quarter was concentrated in commercial and industrial and construction and land development, partially offset by notable growth in agricultural production and commercial real estate loans.

Total deposits increased by $84.9 million, or 4.9%, to $1.81 billion as of September 30, 2026, from $1.73 billion as of September 30, 2025, and increased by $62.7 million, or 3.6%, compared to June 30, 2026. Non-interest-bearing deposits increased by $30.4 million, or 4.5%, during the last year, and increased by $6.6 million, or 1.0%, since June 30, 2026. The increase in deposits over the past year reflects an increase in average balances among existing customers, a declining account closure ratio, and stable new account openings. Non-interest-bearing deposits represented 38.7% of total deposits on September 30, 2026.

Total shareholders' equity was $243.3 million as of September 30, 2026, an increase of $31.6 million, or 14.9%, compared to September 30, 2025, and an increase of $6.2 million, or 2.6%, compared to June 30, 2026, primarily due to accumulated earnings, net of changes in accumulated other comprehensive loss. The accumulated other comprehensive loss component of equity increased by $2.1 million during the past year, primarily reflecting a $3.4 million increase in unrealized losses on the investment securities portfolio, partially offset by a $1.3 million increase in the unrealized gain on the interest rate swap contracts. The accumulated other comprehensive loss component of equity increased by $3.4 million during the quarter due to a $4.1 million increase in the unrealized losses on the investment securities portfolio, partially offset by a $0.7 million increase in the unrealized gain on the interest rate swap contracts.

Allowance for Credit Losses and Credit Quality

The ACL as a percentage of gross loans increased to 1.38% as of September 30, 2026, from 1.37% as of June 30, 2026, and decreased from 1.47% as of September 30, 2025. The ACL as a percentage of gross loans decreased during the last year, due to charge-offs on loans that previously carried specific reserves on individually analyzed loans, while the overall credit quality of the loan portfolio has remained stable.

Nonperforming assets were $0.9 million as of September 30, 2026, up from $0.3 million as of June 30, 2026, and up from $0.7 million as of September 30, 2025. Nonperforming assets as a percentage of total assets were 0.05% as of September 30, 2026, up from 0.02% as of June 30, 2026, and up from 0.04% as of September 30, 2025.

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 12.22%, as of September 30, 2026, compared with the requirement of greater than 8.00% to generally be considered a "well capitalized" financial institution for regulatory purposes. The Bank's Community Bank Leverage ratio has increased by 93 basis points from 11.29% as September 30, 2025, and remained unchanged from June 30, 2026. During the past year, earnings growth outpaced the combined impact of growth in average assets and dividends paid by the Bank to the Company, resulting in an increase in the Bank's Community Bank Leverage ratio compared to the prior year.

Stock Repurchase Program

On October 26, 2026, the Company announced the extension of its Rule 10b5-1 Plan (the "2022 10b5-1 Plan") to facilitate the repurchase of its common stock. Pursuant to the 2022 10b5-1 Plan, a maximum of $4.95 million of the Company's common stock may be repurchased by the Company. The previous extension under the Plan was set to expire on October 22, 2026, and the Company extended the Plan for an additional six months through April 22, 2027. 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.

There were no shares repurchased under the 2022 10b5-1 Plan during the third quarter of 2026. Since Plan inception the Company has repurchased 37,576 shares at an average price of $93.10.

About Mission Bancorp and Mission Bank

With $2.1 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, Ventura, Visalia, and Westlake Village, California. In addition, the Bank operates two production offices in North San Luis Obispo, and Fresno, 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 includes "forward-looking statements," as such term is defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on the current beliefs of the Company's directors and executive officers (collectively, "Management"), as well as assumptions made by and information currently available to the Company's Management. All statements regarding the Company's business strategy and plans and objectives of Management of the Company for future operations, are forward-looking statements. When used in this press release, the words "anticipate," "believe," "estimate," "expect" and "intend" and words or phrases of similar meaning, as they relate to the Company or the Company's Management, are intended to identify forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. Important factors that could cause actual results to differ materially from the Company's expectations ("cautionary statements") are loan losses, rapid and unanticipated deposit withdrawals, unavailability of sources of liquidity, additional regulatory requirements that may be imposed on community banks or banks generally, changes in interest rates, loss of key personnel, lower lending limits and capital than competitors, regulatory restrictions and oversight of the Company, the secure and effective implementation of technology, risks related to the local and national economy, changes in real estate values, the Company's implementation of its business plans and management of growth, loan performance, interest rates, and regulatory matters, the effects of trade, monetary and fiscal policies, inflation, and changes in accounting policies and practices. Based upon changing conditions, if any one or more of these risks or uncertainties materialize, or if any underlying assumptions prove incorrect, actual results may vary materially from those described as anticipated, believed, estimated, expected, or intended. The Company does not intend to update these forward-looking statements.

MISSION BANCORP
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Dollars in thousands)
															Variance
							September 30, 2026		June 30, 2026		December 31, 2025		September 30, 2025		09/26 - 06/26		09/26 - 09/25
Assets
	Cash and due from banks						$                             44,180		$                             55,623		$                             45,285		$                             45,853		$               (11,443)		$                 (1,673)
	Interest earning deposits in other banks						231,004		145,965		107,983		207,788		85,039		23,216
		Total cash and cash equivalents					275,184		201,588		153,268		253,641		73,596		21,543
	Interest earning deposits maturing over ninety days						-		245		490		490		(245)		(490)
	Investment securities available-for-sale, at fair value						220,263		231,814		242,660		248,109		(11,551)		(27,846)
	Loans						1,523,900		1,530,176		1,460,676		1,416,607		(6,276)		107,293
	Allowance for credit losses						(21,088)		(20,908)		(21,909)		(20,799)		(180)		(289)
	Loans, net						1,502,812		1,509,268		1,438,767		1,395,808		(6,456)		107,004
	Premises and equipment, net						3,151		2,937		2,636		2,762		214		389
	Bank owned life insurance						23,027		22,859		22,534		22,372		168		655
	Deferred tax asset, net						16,555		15,254		15,346		15,027		1,301		1,528
	Interest receivable and other assets						31,695		30,557		27,754		28,575		1,138		3,120
Total Assets							$                        2,072,687		$                        2,014,522		$                        1,903,455		$                        1,966,784		$                 58,165		$               105,903
Liabilities and Shareholders' Equity
	Deposits
		Noninterest-bearing demand					$                           701,731		$                           695,127		$                           662,809		$                           671,285		$                  6,604		$                 30,446
		Interest bearing					1,112,267		1,056,179		993,554		1,057,847		56,088		54,420
			Total deposits				1,813,998		1,751,306		1,656,363		1,729,132		62,692		84,866
		Subordinated debentures, net of issuance costs					-		12,000		11,988		11,977		(12,000)		(11,977)
		Interest payable and other liabilities					15,364		14,056		14,800		13,929		1,308		1,435
Total Liabilities							1,829,362		1,777,362		1,683,151		1,755,038		52,000		74,324
Shareholders' Equity
		Common stock					115,355		114,964		100,846		101,495		391		13,860
		Retained earnings					145,276		136,112		133,594		125,444		9,164		19,832
		Accumulated other comprehensive loss					(17,306)		(13,916)		(14,136)		(15,193)		(3,390)		(2,113)
			Total shareholders' equity				243,325		237,160		220,304		211,746		6,165		31,579
	Total Liabilities and Shareholders' Equity						$                        2,072,687		$                        2,014,522		$                        1,903,455		$                        1,966,784		$                 58,165		$               105,903
SBA Paycheck Protection Program Loans							40		58		257		306		(18)		(266)

 

MISSION BANCORP
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(Dollars in thousands)
						For the Three Months Ended										For the Nine Months Ended
												Variance								Variance
						September 30, 2026		June 30, 2026		September 30, 2025		09/26 - 06/26		09/26 - 09/25		September 30, 2026		September 30, 2025		09/26 - 09/25
Interest and Dividend Income
	Loans					$                     25,076		$                       24,045		$                       22,867		$             1,031		$             2,209		$                        72,190		$                       64,321		$            7,869
	Investment securities					1,959		2,054		2,430		(95)		(471)		6,047		7,213		(1,166)
	Other					1,927		1,356		2,566		571		(639)		4,545		7,796		(3,251)
		Total interest and dividend income				28,962		27,455		27,863		1,507		1,099		82,782		79,330		3,452
Interest Expense
	Other deposits					6,984		6,511		7,244		473		(260)		19,675		20,852		(1,177)
	Time deposits					323		320		509		3		(186)		946		1,975		(1,029)
		Total interest expense on deposits				7,307		6,831		7,753		476		(446)		20,621		22,827		(2,206)
	Subordinated debentures					31		189		124		(158)		(93)		344		593		(249)
		Total interest expense				7,338		7,020		7,877		318		(539)		20,965		23,420		(2,455)
Net Interest Income						21,624		20,435		19,986		1,189		1,638		61,817		55,910		5,907
Credit Loss Expense						502		754		466		(252)		36		1,965		1,371		594
Net Interest Income After Provision
	for Credit Losses					21,122		19,681		19,520		1,441		1,602		59,852		54,539		5,313
Non-Interest Income
	Service charges, fees and other income					1,169		1,114		1,195		55		(26)		3,230		3,414		(184)
	Farmer Mac referral and servicing fees					434		381		293		53		141		1,119		969		150
	SBA servicing fees and gain on sale of loans					240		170		362		70		(122)		753		907		(154)
	Loss on sale of securities					-		-		-		-		-		-		(49)		49
		Total non-interest income				1,843		1,665		1,850		178		(7)		5,102		5,241		(139)
Non-Interest Expense
	Salaries and benefits					6,387		6,353		5,915		34		472		19,440		17,581		1,859
	Professional services					1,283		1,165		1,010		118		273		3,468		3,607		(139)
	Occupancy and equipment					693		653		599		40		94		1,925		1,758		167
	Data processing and communication					431		401		380		30		51		1,232		1,128		104
	Other					1,285		1,324		1,197		(39)		88		3,931		8,941		(5,010)
		Total non-interest expense				10,079		9,896		9,101		183		978		29,996		33,015		(3,019)
Net Income Before Provision for Income Taxes						12,886		11,450		12,269		1,436		617		34,958		26,765		8,193
Provision for Income Taxes						3,721		3,241		3,631		480		90		9,928		7,839		2,089
Net Income						$                        9,165		$                          8,209		$                          8,638		$               956		$                527		$                       25,030		$                       18,926		$            6,104

 

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, 2026		June 30, 2026		December 31, 2025		September 30, 2025		September 30, 2026		September 30, 2025
Ratio of total loans to total deposits				84.01 %		87.37 %		88.19 %		81.93 %		84.01 %		81.93 %
Return on average assets				1.78 %		1.67 %		1.66 %		1.77 %		1.70 %		1.34 %
Return on average equity				15.03 %		14.09 %		14.88 %		16.71 %		14.31 %		12.67 %
Net interest margin				4.38 %		4.35 %		4.31 %		4.27 %		4.37 %		4.14 %
Efficiency ratio				42.95 %		44.78 %		41.77 %		41.68 %		44.82 %		53.99 %
Non-interest expense as a percent of average assets				1.96 %		2.02 %		1.86 %		1.86 %		2.03 %		2.33 %
Non-interest income as a percent of average assets				0.36 %		0.34 %		0.31 %		0.38 %		0.35 %		0.37 %
Community Bank Leverage Ratio				12.22 %		12.22 %		11.61 %		11.29 %		12.22 %		11.29 %
Weighted average shares outstanding - basic*				2,935,921		2,930,564		2,915,960		2,919,226		2,927,517		2,919,185
Weighted average shares outstanding - diluted*				3,007,626		2,990,720		2,974,207		2,977,021		2,987,971		2,975,856
Shares outstanding at period end - basic*				2,936,229		2,933,802		2,908,717		2,917,759		2,936,229		2,917,759
Earnings per share - basic				$                                   3.12		$                                   2.80		$                                   2.80		$                                   2.96		$                                   8.55		$                                   6.48
Earnings per share - diluted				$                                   3.05		$                                   2.74		$                                   2.74		$                                   2.90		$                                   8.38		$                                   6.36
Total assets				$                          2,072,687		$                          2,014,522		$                          1,903,455		$                          1,966,784		$                          2,072,687		$                          1,966,784
Loans and leases net of deferred fees				$                          1,523,900		$                          1,530,176		$                          1,460,676		$                          1,416,607		$                          1,523,900		$                          1,416,607
Noninterest-bearing demand deposits				$                             701,731		$                             695,127		$                             662,809		$                             671,285		$                             701,731		$                             671,285
Total deposits				$                          1,813,998		$                          1,751,306		$                          1,656,363		$                          1,729,132		$                          1,813,998		$                          1,729,132
Noninterest-bearing deposits as a percentage total deposits				38.68 %		39.69 %		40.02 %		38.82 %		38.68 %		38.82 %
Average total assets				$                          2,045,034		$                          1,969,666		$                          1,942,161		$                          1,940,923		$                          1,973,473		$                          1,891,668
Average total equity				$                             241,916		$                             233,667		$                             217,268		$                             205,128		$                             233,832		$                             199,688
Shareholders' equity / total assets				11.74 %		11.77 %		11.57 %		10.77 %		11.74 %		10.77 %
Book value per share				$                                 82.87		$                                 80.84		$                                 75.74		$                                 72.57		$                                 82.87		$                                 72.57
*Outstanding shares adjusted for 5% dividend declared on April 23, 2026.

 

MISSION BANCORP
AVERAGE BALANCES AND RATES
(Unaudited)
(Dollars in thousands)
					For the Quarter Ended				For the Quarter Ended				For the Quarter Ended
					September 30, 2026				June 30, 2026				September 30, 2025
					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				$                    183,886	$        1,729	3.73 %		$                   129,158	$        1,187	3.69 %		$                    215,393	$        2,396	4.42 %
	Investment securities				227,939	1,959	3.41 %		235,957	2,054	3.49 %		248,188	2,430	3.88 %
	Loans				1,534,978	25,076	6.48 %		1,508,065	24,045	6.40 %		1,381,406	22,867	6.57 %
	Other earning assets				12,462	198	6.30 %		11,558	169	5.86 %		10,846	170	6.22 %
		Total Earning Assets			1,959,265	28,962	5.86 %		1,884,738	27,455	5.84 %		1,855,833	27,863	5.96 %
	Non-interest earning assets				85,769				84,928				85,090
		Total Assets			$                 2,045,034				$                 1,969,666				$                 1,940,923
Liabilities and Capital
	Interest-bearing deposits
		Interest-bearing transaction accounts			$                 1,026,187	$        6,984	2.70 %		$                    973,432	$        6,476	2.67 %		$                    945,762	$        7,224	3.03 %
		Time deposits			51,287	323	2.50 %		52,559	320	2.44 %		64,596	509	3.13 %
		1031 Exchange deposits			12,731	-	0.00 %		26,788	35	0.52 %		51,365	20	0.15 %
			Total interest-bearing deposits		1,090,205	7,307	2.66 %		1,052,779	6,831	2.60 %		1,061,723	7,753	2.90 %
	Borrowed funds
		Other borrowings			-	-	0.00 %		-	-	0.00 %		3	-	4.87 %
		Subordinated debt			1,826	31	6.74 %		11,999	189	6.32 %		11,971	124	4.11 %
			Total interest-bearing liabilities		1,092,031	7,338	2.67 %		1,064,778	7,020	2.64 %		1,073,697	7,877	2.91 %
	Noninterest-bearing deposits				694,882				654,505				643,854
			Total Funding		1,786,913	7,338	1.63 %		1,719,283	7,020	1.64 %		1,717,551	7,877	1.82 %
	Other noninterest-bearing liabilities				16,205				16,716				18,244
		Total Liabilities			1,803,118				1,735,999				1,735,795
		Total Capital			241,916				233,667				205,128
			Total Liabilities and Capital		$                 2,045,034				$                 1,969,666				$                 1,940,923
	Net Interest Margin				4.38 %				4.35 %				4.27 %
	Net Interest Spread				4.24 %				4.21 %				4.14 %

 

MISSION BANCORP
AVERAGE BALANCES AND RATES
(Unaudited)
(Dollars in thousands)
					As of or for the Nine Months Ended				As of or for the Nine Months Ended
					September 30, 2026				September 30, 2025
					Average	Income /	Yield /		Average	Income /	Yield /
					Balance	Expense	Rate		Balance	Expense	Rate
Assets
	Interest earning deposits in other banks				$                    139,205	$        3,862	3.71 %		$                    220,263	$        7,287	4.42 %
	Investment securities				235,074	6,047	3.44 %		245,581	7,213	3.93 %
	Loans				1,504,136	72,190	6.42 %		1,331,449	64,321	6.46 %
	Other earning assets				11,694	683	7.81 %		9,640	509	7.06 %
		Total Earning Assets			1,890,109	82,782	5.86 %		1,806,933	79,330	5.87 %
	Non-interest earning assets				83,364				84,735
		Total Assets			$                 1,973,473				$                 1,891,668
Liabilities and Capital
	Interest-bearing deposits
		Interest-bearing transaction accounts			$                    980,031	$      19,589	2.67 %		$                    911,546	$      20,751	3.04 %
		Time deposits			50,421	946	2.51 %		76,558	1,975	3.45 %
		1031 Exchange deposits			22,658	87	0.51 %		40,753	101	0.33 %
			Total interest-bearing deposits		1,053,110	20,622	2.62 %		1,028,857	22,827	2.97 %
	Borrowed funds
		Other borrowings			-	-	0.00 %		1	-	0.00 %
		Subordinated debt			8,568	344	5.37 %		17,048	593	4.65 %
			Total interest-bearing liabilities		1,061,678	20,966	2.64 %		1,045,906	23,420	2.99 %
	Noninterest-bearing deposits				661,379				628,918
			Total Funding		1,723,057	20,966	1.63 %		1,674,824	23,420	1.87 %
	Other noninterest-bearing liabilities				16,584				17,156
		Total Liabilities			1,739,641				1,691,980
		Total Capital			233,832				199,688
			Total Liabilities and Capital		$                 1,973,473				$                 1,891,668
	Net Interest Margin				4.37 %				4.14 %
	Net Interest Spread				4.23 %				4.00 %

 

MISSION BANCORP
LOAN DETAIL
(Unaudited)
(Dollars in thousands)
															Variance
							September 30, 2026		June 30, 2026		December 31, 2025		September 30, 2025		09/26 - 06/26		09/26 - 09/25
	Loans
		Construction and land development					$                    72,535		$                       93,193		$                       66,699		$                       63,454		$                   (20,658)		$                      9,081
		Secured by farmland					171,702		173,808		169,321		155,882		(2,106)		15,820
		Residential 1 to 4 units					65,677		61,912		67,567		67,517		3,765		(1,840)
		Multi-family					82,357		81,168		78,342		72,470		1,189		9,887
		Owner occupied commercial real estate					540,780		532,321		525,130		515,348		8,459		25,432
		Non-owner occupied commercial real estate					296,660		282,009		256,052		257,864		14,651		38,796
		Commercial and industrial					191,325		218,763		203,716		194,741		(27,438)		(3,416)
		Agricultural production					105,638		89,765		95,964		92,042		15,873		13,596
		Other loans					161		243		934		239		(82)		(78)
		Net deferred fees-costs					(2,935)		(3,006)		(3,049)		(2,951)		71		16
			Total Loans				$                1,523,900		$                  1,530,176		$                  1,460,676		$                  1,416,607		$                     (6,276)		$                   107,293

 

MISSION BANCORP
Credit Quality
(Unaudited)
(Dollars in thousands)
						September 30, 2026		June 30, 2026		December 31, 2025		September 30, 2025
Asset quality
Loans past due 90 days or more and accruing interest						$                              -		$                              -		$                             -		$                             -
Nonaccrual loans						$                         934		$                         305		$                     2,624		$                        717
Restructured loans
	Nonperforming restructured loans					$                              -		$                              -		$                             -		$                             -
	Performing restructured loans					$                              -		$                              -		$                             -		$                             -
Other real estate owned						$                              -		$                              -		$                             -		$                             -
Total nonperforming assets						$                         934		$                         305		$                     2,624		$                        717
Allowance for credit losses to total loans						1.38 %		1.37 %		1.50 %		1.47 %
Allowance for credit losses to nonperforming loans						2258.66 %		6855.08 %		834.95 %		2901.06 %
Nonaccrual loans to total loans						0.06 %		0.02 %		0.18 %		0.05 %
Nonperforming assets to total assets						0.05 %		0.02 %		0.14 %		0.04 %

 

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SOURCE Mission Bank

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Mission Bancorp's third-quarter 2026 earnings?

Mission Bancorp reported unaudited net income available to common shareholders of $9.2 million, or $3.05 per diluted common share. This compares with $8.6 million, or $2.90 per diluted common share, in the third quarter of 2025 and $8.2 million, or $2.74 per diluted common share, in the linked quarter.

How is Mission Bancorp hedging interest-rate risk in its investment securities portfolio?

Mission maintained interest-rate swap agreements with $93 million in notional balances at September 30, 2026, to hedge rising rates on part of its fixed-rate investment securities portfolio. During the quarter, it entered a new forward-starting agreement that pays a fixed rate and receives a floating rate. A loan-portfolio swap matured, while an existing investment-securities swap remained outstanding.

Why did Mission Bancorp record a credit-loss provision in the third quarter of 2026?

Mission attributed its quarterly credit-loss provisions over the past year primarily to loan growth and changes in macroeconomic conditions, rather than changing loan-portfolio conditions. The third-quarter provision was $0.5 million. Its allowance for credit losses rose to 1.38% of gross loans at September 30, 2026, from 1.37% at June 30.