Mission Bancorp Reports First Quarter Earnings of $7.7 Million, a 7% Increase Year Over Year, and Annual Loan Growth of 14.5%. Announces Extension of Stock Repurchase Plan and Declares 5.00% Annual Stock Dividend.

Rhea-AI Summary

Mission Bancorp (OTC Pink: MSBC) reported net income available to common shareholders of $7.7 million for Q1 2026, a 7% year‑over‑year increase, and announced a stock repurchase plan extension plus a 5.00% annual stock dividend. Gross loans grew 14.5% YoY to $1.49 billion, total deposits were $1.67 billion, and net interest margin was 4.39%. The company noted modest deposit growth, rising non‑interest expense, and an ACL of 1.35% as of March 31, 2026.

Positive

• Net income $7.7M, +7% YoY
• Gross loans +14.5% YoY to $1.49B
• Net interest margin 4.39%, +33 bps YoY
• Non‑interest‑bearing deposits 38.8% of total deposits
• Community Bank Leverage Ratio 12.19%

Negative

• Quarterly net income down 6.1% vs linked quarter
• Non‑interest expense increased 10.3% to $10.0M
• Return on average equity declined to 13.8%
• Allowance for credit losses ratio declined to 1.35%

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BAKERSFIELD, Calif., April 27, 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 $7.7 million, or $2.58 per diluted common share, for the first quarter of 2026, compared to net income available to common shareholders of $7.2 million, or $2.41 per diluted common share, for the first 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.

"Mission Bank is proud to report solid first quarter results with net income of $7.7 million, a 7% increase year over year, and annual loan growth of 14.5%." says Mission Bank President and CEO A.J. Antongiovanni. "Our strategy of focusing on the highest quality of business in each of our markets continues to pay off with strong loan growth and modest deposit growth leading to moderate net interest margin expansion despite challenging times.  We are excited for new opportunities in the second quarter as we open a lending and deposit production center in North San Luis Obispo County and a Business Banking Center in Westlake Village. Our superior service and relationship-driven business model has proved successful at scale, and we are looking forward to deepening our relationships in every community we serve."

First Quarter 2026 Financial Highlights

• Gross loans increased by $188.9 million, or 14.5%, to $1.49 billion as of March 31, 2026, compared to $1.30 billion as of March 31, 2025, and increased by $27.0 million, or 1.8%, compared to December 31, 2025, balances.
• Total deposits increased by $15.8 million, or 1.0%, to $1.67 billion as of March 31, 2026, compared to $1.65 billion a year earlier, and increased by $11.7 million, or 0.7%, from $1.66 billion as of December 31, 2025. Non-interest-bearing deposits were $647.0 million and represent 38.8% of total deposits as of March 31, 2026.
• The allowance for credit losses ("ACL") as a percentage of gross loans declined from 1.50% as of December 31, 2025, to 1.35% as of March 31, 2026.
• Credit quality remains strong with nonaccrual loans representing 0.01% of total gross loans as of March 31, 2026, down from 0.18% as of December 31, 2025.
• The Community Bank Leverage Ratio for the Bank as of March 31, 2026, was 12.19%, compared to 11.47% as of March 31, 2025.

Net Income Available to Common Shareholders

Net income available to common shareholders for the first quarter of 2026 was $7.7 million, or $2.58 per diluted common share, compared with $8.2 million, or $2.74 per diluted common share, for the linked quarter ended December 31, 2025. Net income available to common shareholders was $7.2 million, or $2.41 per diluted common share, for the first quarter of 2025. Net income available to common shareholders decreased $0.5 million, or 6.1%, compared to the linked quarter, and increased by $0.5 million, or 7.0%, compared to the same prior year period.

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

Net Interest Income

Net interest income was $19.8 million, or 4.39%, of average earning assets ("net interest margin"), for the first quarter of 2026, compared with $17.8 million, or a net interest margin of 4.06%, for the same prior year period, and $20.2 million, or a net interest margin of 4.31%, for the quarter ended December 31, 2025.

Net interest income increased by $1.9 million, or 10.8%, compared to the same prior year period, primarily due to growth in the Company's loan portfolio coupled with relatively stable loan yields, and lower funding costs. Loan interest income and fee accretion increased by $2.5 million compared to the first quarter of 2025, partially offset by $1.4 million lower interest income on interest earning deposits in other banks and $0.3 million lower interest income on investment securities. Additionally, interest expense declined $1.0 million compared to the same prior year period, primarily due to lower deposit costs, and lower average balances and rates paid for subordinated debentures.

Net interest income decreased by $0.5 million, or 2.4%, for the quarter ended March 31, 2026, compared to the linked quarter, primarily reflecting a lower number of days in the period, along with lower yields on certain interest earning assets, particularly interest earning deposits in other banks and investment securities, which were partially offset by a favorable shift in earning-asset mix toward higher yielding loans and reduced deposit costs. Interest income on interest earning deposits in other banks declined $0.8 million, primarily due to lower average balances and rates, and interest income on investment securities declined $0.2 million, reflecting lower yields, while interest income on loans rose $0.1 million, driven by higher average balances that offset lower loan yields. Interest expense declined $0.4 million compared to the linked quarter, primarily due to lower deposit costs and lower average balances on interest-bearing deposits.

The net interest margin was 4.39% for the quarter ended March 31, 2026, compared to 4.06% for the same prior year period, and 4.31% for the linked quarter ended December 31, 2025. During the past year, the cost of interest-bearing liabilities declined 43 basis points, while a continued shift in earning-asset mix toward higher yielding loans offset lower yields on other earning assets, resulting in relatively stable earning asset yield and a 33 basis point year-over-year expansion in the quarterly net interest margin. The Federal Reserve began lowering rates in the latter half of 2024, lowering the federal funds rate 175 basis points from its peak range, 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. These rate reductions also resulted in lower deposit costs, which, combined with robust loan growth, supported earning asset yields resulting in net interest margin expansion.

The 8 basis point increase in the net interest margin for the first quarter of 2026, compared to the linked quarter, primarily reflects a modest increase in earning asset yields, combined with a continued favorable shift in the earning-asset mix toward higher yielding loans. These benefits were further supported by a decline in interest bearing deposit costs.

The yield on loans, interest earning deposits in other banks, and investment securities decreased by 4 basis points to 6.37%, 70 basis points to 3.70%, and 50 basis points to 3.42%, respectively, compared to the same prior year period. Additionally, average balances on loans increased $169.7 million, or 13.1%, average balances on interest earning deposits in other banks decreased $128.4 million, or 55.3%, and average balances on investment securities were relatively unchanged. The cost of interest-bearing deposits decreased 41 basis points to 2.59%, while the average balances of interest-bearing deposits increased $8.7 million, or 0.86%. The cost of subordinated debentures decreased 76 basis points to 4.19%, and average balances decreased $9.9 million, or 45.3%.

For the quarter ended March 31, 2026, the yield on loans, interest bearing deposits in other banks, and investment securities decreased by 6 basis points to 6.37%, 28 basis points to 3.70%, and 12 basis points to 3.42%, respectively, compared to the linked quarter. Average balances on loans increased $50.7 million, or 3.57%, average balances on interest earning deposits in other banks and investment securities decreased $82.0 million, or 44.2%, and $4.8 million, or 1.96%, respectively. The cost of interest-bearing deposits decreased 6 basis points to 2.59%, and average balances on interest-bearing deposits decreased $15.1 million, or 1.47%.

The cost of funds was 1.61% for the quarter ending March 31, 2026, a decrease of 28 basis points compared to 1.89%, for the same prior year period, and a 2 basis point decrease compared to 1.63%, for the linked quarter ending December 31, 2025. The decrease in the Company's cost of funds is generally attributable to recent Federal Reserve rate cuts, which has provided some relief in deposit cost pressures. 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.

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 contributed $0.1 million of interest expense for the first quarter of 2026, compared to a nominal amount for the linked quarter, and $0.1 million interest income for the first quarter of the prior year.

Provision for Credit Losses

A $0.7 million provision for credit losses was recorded for the quarter ended March 31, 2026, compared to $1.2 million for the linked quarter, and $0.2 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. During the first quarter, certain loans for which specific reserves were recorded in prior quarters were charged off, consistent with the Company's established credit risk management framework.

Non-Interest Income

Non-interest income increased $0.1 million, or 4.9%, to $1.6 million for the quarter ended March 31, 2026, compared to $1.5 million for the linked quarter, and was relatively unchanged compared to the same prior year period. Compared to the linked quarter, increases in SBA servicing fees and gain on sale of loans were partially offset by lower service charges, fees and other income, as well as a decline in Farmer Mac referral and servicing fee income. When compared to the same prior year period, increases in SBA servicing fees and gain on sale of loans and Farmer Mac referral and servicing fee income were largely offset by a decline in service charges, fees and other income. SBA sales activity during the prior quarter was partially impacted by the federal government shutdown.

Non-Interest Expense

Non-interest expense increased by $0.9 million, or 10.3%, to $10.0 million for the quarter ended March 31, 2026, compared to $9.1 million for the linked quarter, and increased by $0.8 million, or 8.6%, compared to $9.2 million for the quarter ended March 31, 2025.

The increase in non-interest expense for the first quarter of 2026, compared to the linked quarter, was primarily due to a $0.9 million increase in salaries and benefits expense, driven by higher beginning-of-year payroll taxes, increased stock-based compensation, and other compensation accruals. Additionally, base compensation and benefits costs attributable to new hires in our North San Luis Obispo County office, contributed to the increase in non-interest expense.

The increase in non-interest expense for the first quarter of 2026 compared to the same prior year period was primarily due to an $0.8 million increase in salaries and benefits expense attributable to new hires, including the North San Luis Obispo County team, net of terminations, along with higher incentive compensation, equity compensation, and related payroll taxes and benefit expenses.

Operating Efficiency

The Company's operating efficiency ratio decreased to 46.9% for the first quarter of 2026, compared to 47.5% for the first quarter of 2025, and increased compared to 41.8% for the linked quarter. Total non-interest expense as a percentage of average assets, another measure of the Company's efficiency, was 2.13% for the first quarter of 2026, compared to 2.01% for the first quarter of 2025, and 1.86% compared to the quarter ended December 31, 2025.

Income Taxes

Income tax expense was $3.0 million for the first quarter of 2026, compared to $2.9 million for the quarter ended March 31, 2025, and $3.4 million for the linked quarter ended December 31, 2025. The Company's effective tax rate for the first quarter of 2026 was 27.9%, compared to 28.8% for the same prior year period, and 29.1% for the quarter ending December 31, 2025. 

Asset and Equity Returns

The return on average equity for the first quarter of 2026 was 13.8%, down from 15.0% for the same prior year period, and down from 14.9% for the linked quarter. The quarterly return on average assets for the first quarter of 2026 was 1.63%, up from 1.56% from the same prior year period, and down from 1.66% for the linked quarter.

The decline in the quarterly return on average equity for the quarter ended March 31, 2026, compared to the same prior year period, is primarily attributable to the growth in average equity outpacing the growth in quarterly net income, while the rise in quarterly return on average assets for the quarter ended March 31, 2026, is primarily attributable to growth in quarterly net income outpacing average asset growth. Compared to the same prior year period, average equity grew 16.7%, quarterly net income grew 7.0%, and average assets grew 2.11%.

The decline in quarterly returns on both average equity and average assets for the quarter ended March 31, 2026, compared to the linked quarter, is primarily attributable to the marginal decline in quarterly net income, combined with growth in quarterly average equity and a reduction in quarterly average assets.

Balance Sheet

Total assets increased by $37.0 million, or 2.0%, to $1.92 billion as of March 31, 2026, compared to March 31, 2025, and increased by $20.8 million, or 1.1%, compared to December 31, 2025. Cash and cash equivalents decreased by $150.9 million, or 50.2%, to $149.7 million as of March 31, 2026, compared to the same prior year period, and decreased by $3.6 million, or 2.4%, compared to December 31, 2025.

The decrease in the Company's cash position over the past year reflects robust loan growth, which outpaced deposit growth, along with the repayment of subordinated debentures. The decrease in the Company's cash position over the past quarter reflects continued strong lending activity, which outpaced deposit growth.

Investment securities decreased by $3.2 million or 1.3%, to $238.7 million as of March 31, 2026, compared to $241.9 million as of March 31, 2025, and decreased by $3.9 million, or 1.6%, compared to $242.7 million as of December 31, 2025. The decline in the investment securities portfolio over the past year primarily 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 year, the Company continued to selectively deploy excess liquidity into higher yielding investment securities. The decrease in the investment portfolio during the first quarter of 2026, compared to the linked quarter, reflected normal repayment and amortization of the bond portfolio and a marginal decline in unrealized losses on the investment securities portfolio attributable to market rate changes during the quarter.

Loans increased by $188.9 million, or 14.5%, to $1.49 billion as of March 31, 2026, compared to March 31, 2025, and increased by $27.0 million, or 1.8%, compared to December 31, 2025. Loan growth during the last year reflected a diversified mix across almost every loan category, offset only by contraction in agricultural production loans. Loan growth during the last quarter was concentrated in construction and land development, commercial real estate, and loans secured by farmland, with notable contractions in agricultural production and residential 1 to 4 family loans.

Total deposits increased by $15.8 million, or 1.0%, to $1.67 billion as of March 31, 2026, from $1.65 billion as of March 31, 2025, and increased by $11.7 million, or 0.7%, compared to December 31, 2025. Non-interest-bearing deposits increased by $20.3 million, or 3.2%, during the last year, and decreased by $15.8 million, or 2.4%, since December 31, 2025. 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 38.8% of total deposits on March 31, 2026.

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

Total shareholders' equity was $228.9 million as of March 31, 2026, an increase of $31.2 million, or 15.8%, compared to March 31, 2025, and an increase of $8.6 million, or 3.9%, compared to December 31, 2025, primarily due to quarterly earnings, net of changes in accumulated other comprehensive loss. The accumulated other comprehensive loss component of equity decreased by $3.7 million during the year, primarily reflecting a $5.3 million decline in unrealized losses on the investment securities portfolio. The accumulated other comprehensive loss component of equity decreased by $0.4 million during the quarter due to a decline in the unrealized losses on the interest rate swap contracts.

Allowance for Credit Losses and Credit Quality

The ACL as a percentage of gross loans decreased to 1.35% as of March 31, 2026, from 1.50% as of December 31, 2025, and 1.51% from March 31, 2025. The ACL as a percentage of gross loans decreased during the quarter, due to charge-offs of previously established specific reserves on individually analyzed loans, while the overall credit profile of the loan portfolio has remained stable over the past twelve months.

Nonperforming assets were $0.1 million as of March 31, 2026, down from $2.6 million as of December 31, 2025, and down from $0.9 million as of March 31, 2025. Nonperforming assets as a percentage of total assets were 0.01% as of March 31, 2026, down from 0.14% as of December 31, 2025, and down from 0.05% as of March 31, 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 12.19%, as of March 31, 2026, 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 72 and 58 basis points, from 11.47% and 11.61%, as of the periods ended March 31, 2025, and December 31, 2025, respectively. 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 and Stock Dividend

On October 27, 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 2022 10b5-1 Plan was set to expire on April 23, 2026, and has been extended for an additional 6 months through October 22, 2026. In connection with the extension, the Company has increased the Plan's authorized common stock repurchase amount by $1.95 million, bringing the total authorized repurchase to a maximum of $4.95 million. Remaining funds associated with the prior authorization will be removed from the Plan and the Company may suspend or discontinue the Plan at any time. Hilltop Securities, Inc. is acting as the Company's agent to purchase its shares on pre-arranged terms pursuant to the 2022 10b5-1 Plan. During the first quarter of 2026 the Company repurchased 1,650 shares under the 2022 10b5-1 Plan at an average price of $94.50. Since Plan inception the Company has repurchased 34,576 shares at an average price of $92.28.

Recognizing another year of strong performance and execution, the Company has declared a 5.00% stock dividend, which will be issued on June 1, 2026 ("the Effective Date"), to shareholders of record as of May 18, 2026 ("the Record Date"). The financial results, including earnings per share, and book value per share, reported in this press release have been adjusted to reflect the impact of the 5% stock dividend.

About Mission Bancorp and Mission Bank

With $1.9 billion in assets, Mission Bancorp is headquartered in Bakersfield, California and is the holding company of three wholly owned subsidiaries, Mission Bank, Mission 1031 Exchange, LLC, and Mission Community Development, LLC. Mission Bank has seven Business Banking Centers, serving the greater areas of Bakersfield, Lancaster, San Luis Obispo, 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 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
							March 31, 2026		December 31, 2025		September 30, 2025		March 31, 2025		03/26 - 12/25		03/26 - 03/25
Assets
	Cash and due from banks						$                             49,126		$                             45,285		$                             45,853		$                             50,339		$                  3,841		$                 (1,213)
	Interest earning deposits in other banks						100,536		107,983		207,788		250,205		(7,447)		(149,669)
		Total cash and cash equivalents					149,662		153,268		253,641		300,544		(3,606)		(150,882)
	Interest earning deposits maturing over ninety days						245		490		490		490		(245)		(245)
	Investment securities available-for-sale, at fair value						238,742		242,660		248,109		241,925		(3,918)		(3,183)
	Loans						1,487,673		1,460,676		1,416,607		1,298,780		26,997		188,893
	Allowance for credit losses						(20,122)		(21,909)		(20,799)		(19,580)		1,787		(542)
	Loans, net						1,467,551		1,438,767		1,395,808		1,279,200		28,784		188,351
	Premises and equipment, net						2,632		2,636		2,762		2,855		(4)		(223)
	Bank owned life insurance						22,694		22,534		22,372		22,054		160		640
	Deferred tax asset, net						15,187		15,346		15,027		16,046		(159)		(859)
	Interest receivable and other assets						27,493		27,754		28,575		24,119		(261)		3,374
Total Assets							$                        1,924,206		$                        1,903,455		$                        1,966,784		$                        1,887,233		$                 20,751		$                 36,973
Liabilities and Shareholders' Equity
	Deposits
		Noninterest-bearing demand					$                           647,042		$                           662,809		$                           671,285		$                           626,723		$               (15,767)		$                 20,319
		Interest bearing					1,021,068		993,554		1,057,847		1,025,549		27,514		(4,481)
			Total deposits				1,668,110		1,656,363		1,729,132		1,652,272		11,747		15,838
		Subordinated debentures, net of issuance costs					11,999		11,988		11,977		21,952		11		(9,953)
		Interest payable and other liabilities					15,199		14,800		13,929		15,282		399		(83)
Total Liabilities							1,695,308		1,683,151		1,755,038		1,689,506		12,157		5,802
Shareholders' Equity
		Common stock					101,404		100,846		101,495		89,829		558		11,575
		Retained earnings					141,250		133,594		125,444		125,400		7,656		15,850
		Accumulated other comprehensive loss					(13,756)		(14,136)		(15,193)		(17,502)		380		3,746
			Total shareholders' equity				228,898		220,304		211,746		197,727		8,594		31,171
	Total Liabilities and Shareholders' Equity						$                        1,924,206		$                        1,903,455		$                        1,966,784		$                        1,887,233		$                 20,751		$                 36,973
SBA Paycheck Protection Program Loans							81		257		306		414		(176)		(333)

 

MISSION BANCORP
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(Dollars in thousands)
						For the Three Months Ended
												Variance
						March 31, 2026		December 31, 2025		March 31, 2025		03/26 - 12/25		03/26 - 03/25
Interest and Dividend Income
	Loans					$                              23,069		$                              22,969		$                              20,533		$                     100		$                  2,536
	Investment securities					2,034		2,200		2,334		(166)		(300)
	Other					1,262		2,075		2,673		(813)		(1,411)
		Total interest and dividend income				26,365		27,244		25,540		(879)		825
Interest Expense
	Other deposits					6,180		6,534		6,587		(354)		(407)
	Time deposits					303		350		859		(47)		(556)
		Total interest expense on deposits				6,483		6,884		7,446		(401)		(963)
	Subordinated debentures					124		124		268		-		(144)
		Total interest expense				6,607		7,008		7,714		(401)		(1,107)
Net Interest Income						19,758		20,236		17,826		(478)		1,932
Credit Loss Expense						709		1,166		155		(457)		554
Net Interest Income After Provision
	for Credit Losses					19,049		19,070		17,671		(21)		1,378
Non-Interest Income
	Gain on sale of premises and equipment					-		-		2		-		(2)
	Service charges, fees and other income					947		1,073		1,065		(126)		(118)
	Farmer Mac referral and servicing fees					305		390		287		(85)		18
	SBA servicing fees and gain on sale of loans					343		57		240		286		103
		Total non-interest income				1,595		1,520		1,594		75		1
Non-Interest Expense
	Salaries and benefits					6,701		5,835		5,935		866		766
	Professional services					1,019		1,109		1,039		(90)		(20)
	Occupancy and equipment					579		591		576		(12)		3
	Data processing and communication					401		441		367		(40)		34
	Other					1,322		1,112		1,310		210		12
		Total non-interest expense				10,022		9,088		9,227		934		795
Net Income Before Provision for Income Taxes						10,622		11,502		10,038		(880)		584
Provision for Income Taxes						2,966		3,352		2,886		(386)		80
Net Income						$                                7,656		$                                8,150		$                                7,152		$                   (494)		$                     504

 

MISSION BANCORP
FINANCIAL HIGHLIGHTS
(Unaudited)
(Dollars in thousands, except per share data)
				As of or for the Three Months Ended
				March 31, 2026		December 31, 2025		September 30, 2025		March 31, 2025
Ratio of total loans to total deposits				89.18 %		88.19 %		81.93 %		78.61 %
Return on average assets				1.63 %		1.66 %		1.77 %		1.56 %
Return on average equity				13.75 %		14.88 %		16.71 %		14.99 %
Net interest margin				4.39 %		4.31 %		4.27 %		4.06 %
Efficiency ratio				46.93 %		41.77 %		41.68 %		47.51 %
Non-interest expense as a percent of average assets				2.13 %		1.86 %		1.86 %		2.01 %
Non-interest income as a percent of average assets				0.34 %		0.31 %		0.38 %		0.35 %
Community Bank Leverage Ratio				12.19 %		11.61 %		11.29 %		11.47 %
Weighted average shares outstanding - basic*				2,915,833		2,915,960		2,919,226		2,915,337
Weighted average shares outstanding - diluted*				2,973,018		2,974,207		2,977,021		2,965,721
Shares outstanding at period end - basic*				2,924,017		2,908,717		2,917,759		2,925,878
Earnings per share - basic				$                                   2.63		$                                   2.80		$                                   2.96		$                                   2.45
Earnings per share - diluted				$                                   2.58		$                                   2.74		$                                   2.90		$                                   2.41
Total assets				$                          1,924,206		$                          1,903,455		$                          1,966,784		$                          1,887,233
Loans and leases net of deferred fees				$                          1,487,673		$                          1,460,676		$                          1,416,607		$                          1,298,780
Noninterest-bearing demand deposits				$                             647,042		$                             662,809		$                             671,285		$                             626,723
Total deposits				$                          1,668,110		$                          1,656,363		$                          1,729,132		$                          1,652,272
Noninterest-bearing deposits as a percentage total deposits				38.79 %		40.02 %		38.82 %		37.93 %
Average total assets				$                          1,904,171		$                          1,942,161		$                          1,940,923		$                          1,864,899
Average total equity				$                             225,734		$                             217,268		$                             205,128		$                             193,498
Shareholders' equity / total assets				11.90 %		11.57 %		10.77 %		10.48 %
Book value per share				$                                 78.28		$                                 75.74		$                                 72.57		$                                 67.58
*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
					March 31, 2026				December 31, 2025				March 31, 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				$                   103,689	$           945	3.70 %		$                   185,641	$        1,862	3.98 %		$                   232,078	$        2,519	4.40 %
	Investment securities				241,475	2,034	3.42 %		246,307	2,200	3.54 %		241,737	2,334	3.92 %
	Loans				1,468,635	23,069	6.37 %		1,417,946	22,969	6.43 %		1,298,947	20,533	6.41 %
	Other earning assets				11,047	317	11.64 %		11,039	213	7.66 %		9,026	154	6.92 %
		Total Earning Assets			1,824,846	26,365	5.86 %		1,860,933	27,244	5.81 %		1,781,788	25,540	5.81 %
	Non-interest earning assets				79,325				81,228				83,111
		Total Assets			$                1,904,171				$                1,942,161				$                1,864,899
Liabilities and Capital
	Interest-bearing deposits
		Interest-bearing transaction accounts			$                   939,521	$        6,128	2.65 %		$                   952,088	$        6,504	2.71 %		$                   878,043	$        6,541	3.02 %
		Time deposits			47,374	303	2.59 %		49,906	350	2.78 %		92,409	859	3.77 %
		1031 Exchange deposits			28,630	52	0.74 %		28,630	30	0.42 %		36,369	46	0.51 %
			Total interest-bearing deposits		1,015,525	6,483	2.59 %		1,030,624	6,884	2.65 %		1,006,821	7,446	3.00 %
	Borrowed funds
		Subordinated debt			11,992	124	4.19 %		11,982	124	4.11 %		21,941	268	4.95 %
			Total interest-bearing liabilities		1,027,517	6,607	2.61 %		1,042,606	7,008	2.67 %		1,028,762	7,714	3.04 %
	Noninterest-bearing deposits				634,081				666,460				625,981
			Total Funding		1,661,598	6,607	1.61 %		1,709,066	7,008	1.63 %		1,654,743	7,714	1.89 %
	Other noninterest-bearing liabilities				16,839				15,827				16,658
		Total Liabilities			1,678,437				1,724,893				1,671,401
		Total Capital			225,734				217,268				193,498
			Total Liabilities and Capital		$                1,904,171				$                1,942,161				$                1,864,899
	Net Interest Margin				4.39 %				4.31 %				4.06 %
	Net Interest Spread				4.25 %				4.18 %				3.92 %

 

MISSION BANCORP
LOAN DETAIL
(Unaudited)
(Dollars in thousands)
															Variance
							March 31, 2026		December 31, 2025		September 30, 2025		March 31, 2025		03/26 - 12/25		03/26 - 03/25
	Loans
		Construction and land development					$                    85,555		$                       66,699		$                       63,454		$                       64,330		$                    18,856		$                    21,225
		Secured by farmland					174,088		169,321		155,882		138,903		4,767		35,185
		Residential 1 to 4 units					63,520		67,567		67,517		60,385		(4,047)		3,135
		Multi-family					80,771		78,342		72,470		57,367		2,429		23,404
		Owner occupied commercial real estate					532,534		525,130		515,348		498,524		7,404		34,010
		Non-owner occupied commercial real estate					265,092		256,052		257,864		217,358		9,040		47,734
		Commercial and industrial					200,915		203,716		194,741		172,577		(2,801)		28,338
		Agricultural production					88,053		95,964		92,042		91,585		(7,911)		(3,532)
		Other loans					194		934		240		328		(740)		(134)
		Net deferred fees-costs					(3,049)		(3,049)		(2,951)		(2,577)		-		(472)
			Total Loans				$                1,487,673		$                  1,460,676		$                  1,416,607		$                  1,298,780		$                    26,997		$                   188,893

 

MISSION BANCORP
Credit Quality
(Unaudited)
(Dollars in thousands)
						March 31, 2026		December 31, 2025		September 30, 2025		March 31, 2025
Asset quality
Loans past due 90 days or more and accruing interest						$                           -		$                              -		$                             -		$                             -
Nonaccrual loans						$                      130		$                      2,624		$                        717		$                        871
Restructured loans
	Nonperforming restructured loans					$                           -		$                              -		$                             -		$                             -
	Performing restructured loans					$                           -		$                              -		$                             -		$                             -
Other real estate owned						$                           -		$                              -		$                             -		$                             -
Total nonperforming assets						$                      130		$                      2,624		$                        717		$                        871
Allowance for credit losses to total loans						1.35 %		1.50 %		1.47 %		1.51 %
Allowance for credit losses to nonperforming loans						15478.46 %		834.95 %		2901.06 %		2247.99 %
Nonaccrual loans to total loans						0.01 %		0.18 %		0.05 %		0.07 %
Nonperforming assets to total assets						0.01 %		0.14 %		0.04 %		0.05 %

 

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SOURCE Mission Bank

FAQ

What did Mission Bancorp (MSBC) report for Q1 2026 net income?

Mission reported $7.7 million net income available to common shareholders for Q1 2026. According to the company, this represents a 7% increase year‑over‑year compared with Q1 2025 and a 6.1% decrease versus the linked quarter.

How much did Mission Bancorp (MSBC) loans grow in Q1 2026?

Loans increased 14.5% year‑over‑year to $1.49 billion as of March 31, 2026. According to the company, gross loans rose $188.9 million versus March 31, 2025 and $27.0 million versus December 31, 2025.

What dividend and buyback actions did Mission Bancorp (MSBC) announce on April 27, 2026?

The company declared a 5.00% annual stock dividend and extended its stock repurchase plan. According to the company, these actions reflect capital return intentions while supporting shareholder value.

What were Mission Bancorp's (MSBC) funding and deposit trends in Q1 2026?

Total deposits were $1.67 billion, up 1.0% year‑over‑year, with non‑interest‑bearing deposits at $647.0 million (38.8%). According to the company, deposit growth was modest while loan growth outpaced deposits.

Why did Mission Bancorp's (MSBC) net interest margin change in Q1 2026?

Net interest margin was 4.39% for Q1 2026, up mainly from asset mix shift toward loans and lower deposit costs. According to the company, Fed rate cuts and higher loan balances supported margin expansion.