Mission Bancorp Reports Industry Leading Annual Loan Growth of 13.2%, Quarterly Earnings of $8.2 Million up 6.3% over Fourth Quarter of 2024.

Rhea-AI Summary

Mission Bancorp (OTC Pink: MSBC) reported fourth-quarter 2025 net income available to common shareholders of $8.2 million ($2.88 diluted EPS), a 6.3% increase year-over-year. Gross loans grew 13.2% YoY to $1.46 billion, supporting net interest margin expansion to 4.31%. Full-year 2025 net income was $27.1 million vs. $30.1 million in 2024.

Positive

• Loans +13.2% YoY to $1.46 billion
• Net interest income +14.1% YoY supporting margin expansion
• Net interest margin 4.31% for Q4 2025

Negative

• Full-year net income down 10.2% to $27.1 million
• Non-interest expense +20.8% for 2025 driven by one-time charges
• Provision for credit losses rose to $1.2M in Q4 2025

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BAKERSFIELD, Calif., Jan. 30, 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 $8.2 million, or $2.88 per diluted common share, for the fourth quarter of 2025, compared to net income available to common shareholders of $7.7 million, or $2.72 per diluted common share, for the fourth quarter of 2024, and net income available to common shareholders of $8.6 million, or $3.05 per diluted common share, for the linked quarter. Unaudited net income for the year 2025 was $27.1 million, or $9.55 per diluted common share, compared to net income available to common shareholders of $30.1 million for 2024, or $10.73 per diluted common share.

"We are pleased to announce a strong close to 2025 with 13.2% loan growth year-over-year, contributing to margin expansion in all four quarters of 2025" said Mission Bank President and CEO A.J. Antongiovanni. "That growth, combined with an improving yield curve, allowed us to increase net interest income in the fourth quarter and year-over-year despite the Fed's continuing interest rate cuts. We are also happy to report fourth quarter earnings of $8.2 million, representing a 6.3% increase over the same quarter last year. As we kick off 2026, we are proud to announce the onboarding of our new team in North San Luis Obispo County. Led by Mark Pearce, a 30-year industry veteran, this expansion strengthens our existing services to farmers, ranchers, and business owners on the Central Coast."

Fourth Quarter 2025 Financial Highlights

• Gross loans increased by $169.9 million, or 13.2%, to $1.46 billion as of December 31, 2025, compared to $1.29 billion as of December 31, 2024, and increased by $44.1 million, or 3.1%, compared to September 30, 2025, balances.
• Total deposits increased by $7.0 million, or 0.4%, to $1.66 billion as of December 31, 2025, compared to $1.65 billion a year earlier, and decreased by $72.8 million, or 4.2%, from $1.73 billion as of September 30, 2025. Non-interest-bearing deposits were $662.8 million and represent 40.0% of total deposits as of December 31, 2025.
• The allowance for credit losses ("ACL") as a percentage of gross loans was unchanged at 1.50% as of December 31, 2025, compared to December 31, 2024.
• Credit quality remains strong with nonaccrual loans representing 0.18% of total gross loans as of December 31, 2025, up from 0.08% as of December 31, 2024.
• The Community Bank Leverage Ratio for the Bank as of December 31, 2025, was 11.61%, compared to 11.07% as of December 31, 2024.

Net Income Available to Common Shareholders

Net income available to common shareholders for the fourth quarter of 2025 was $8.2 million, or $2.88 per diluted common share, compared with $8.6 million, or $3.05 per diluted common share, for the linked quarter ended September 30, 2025. Net income available to common shareholders was $7.7 million, or $2.72 per diluted common share, for the fourth quarter of 2024. Net income available to common shareholders decreased $0.5 million, or 5.6%, compared to the linked quarter, and increased by $0.5 million, or 6.3%, compared to the same prior year period.

Notable variances compared to the linked quarter include an increase in credit loss expense, along with a decrease in non-interest income, and an increase in net interest income. Compared to the fourth quarter of 2024, an increase in net interest income was partially offset by higher non-interest expense and credit loss expense.

Net income available to common shareholders for the twelve months ended December 31, 2025, decreased by $3.1 million, or 10.2%, and was $27.1 million, or $9.55 per diluted common share, compared to $30.1 million, or $10.73 per diluted common share for the twelve months ended December 31, 2024. Compared to the twelve months ended December 31, 2024, increases in net interest income were more than offset by higher non-interest expense, which was primarily driven by one-time, non-recurring charges recognized in the second quarter, and an increase in credit loss expense.

Net Interest Income

Net interest income was $20.2 million, or 4.31%, of average earning assets ("net interest margin"), for the fourth quarter of 2025, compared with $17.7 million, or a net interest margin of 3.96%, for the same prior year period, and $20.0 million, or a net interest margin of 4.27%, for the quarter ended September 30, 2025.

Net interest income increased by $2.5 million, or 14.1%, compared to the same prior year period, primarily due to growth in the Company's loan portfolio, a marginal increase in loan yields, and lower deposit funding costs. Loan interest income and fee accretion increased by $2.7 million compared to the fourth quarter of 2024, partially offset by $1.4 million lower interest income on interest earning deposits in other banks and $0.2 million lower interest income on investment securities. Additionally, interest expense declined $1.3 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 increased by $0.3 million, or 1.3%, for the quarter ended December 31, 2025, compared to the linked quarter, reflecting reduced deposit funding costs and a favorable shift in the asset mix toward higher yielding loans, which partially offset the impact of lower overall earning asset yields. Interest expense declined $0.9 million compared to the linked quarter, primarily due to lower deposit costs and lower average balances on interest-bearing deposits. Interest income on interest earning deposits in other banks declined $0.5 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.

The net interest margin was 4.31% for the quarter ended December 31, 2025, compared to 3.96% for the same prior year period, and 4.27% for the linked quarter ended September 30, 2025. During the past year, the cost of interest-bearing liabilities has declined 56 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 35 basis point year-over-year increase 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, 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 4 basis point increase in the net interest margin for the fourth quarter of 2025, compared to the linked quarter, primarily reflects a 25 basis point decline in interest-bearing deposit costs, which more than offset the 15 basis point decline in earning asset yields. 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 by 5 basis points to 6.43%, while the yield on interest earning deposits in other banks and investment securities decreased by 79 basis points to 3.98%, and by 38 basis points to 3.54%, respectively, compared to the same prior year period. Additionally, average balances on loans increased $157.0 million, or 12.5%, average balances on interest earning deposits in other banks decreased $85.1 million, or 31.4%, and average balances on investment securities increased $5.6 million, or 2.3%. The cost of interest-bearing deposits decreased 55 basis points to 2.65%, while the average balances of interest-bearing deposits increased $30.3 million, or 3.0%. The cost of subordinated debentures decreased 75 basis points to 4.11%, and average balances decreased $9.9 million, or 45.4%.

For the quarter ended December 31, 2025, the yield on loans decreased by 14 basis points to 6.43%, while the yield on interest earning deposits in other banks and investment securities decreased by 44 basis points to 3.98%, and 34 basis points to 3.54%, respectively, compared to the linked quarter. Average balances on loans increased $36.5 million, or 2.65%, average balances on interest earning deposits in other banks and investment securities decreased $29.8 million, or 13.8%, and $1.9 million, or 0.76%, respectively. The cost of interest-bearing deposits decreased 25 basis points to 2.65%, and average balances on interest-bearing deposits decreased $31.1 million, or 2.93%.

The cost of funds was 1.63% for the quarter ended December 31, 2025, a decrease of 36 basis points compared to 1.99%, for the same prior year period, and a 19 basis point decrease compared to 1.82%, for the linked quarter ended September 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 provided 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 clients have continued to be rate sensitive opting for higher yielding investment options.

For the twelve months ending December 31, 2025, the Company's net interest income increased $5.0 million to $76.1 million, while the net interest margin declined 13 basis points to 4.18%, compared to net interest income of $71.1 million and net interest margin of 4.31%, for the twelve months ended December 31, 2024. The decline in net interest margin is primarily the result of a 16 basis point decrease in earning asset yields, which outpaced the 14 basis point decline in the cost of total interest-bearing liabilities.

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 a nominal amount of interest income for the fourth quarter of 2025, compared to $0.1 million for the linked quarter, and $0.2 million for the fourth quarter of the prior year. Combined, the interest rate swap contracts on the loan and investment securities portfolios generated $0.4 million total of additional interest income and 2 basis points of additional earning asset yield during the year ended December 31, 2025, compared to $1.3 million total of additional interest income and 9 basis points of additional earning asset yield during the year ended December 31, 2024.

Provision for Credit Losses

A $1.2 million provision for credit losses was recorded for the quarter ended December 31, 2025, compared to $0.5 million for the linked quarter, and $0.4 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 have remained stable, demonstrating a low credit risk profile during the past twelve months. The provision recorded during the fourth quarter included additions to specific reserves on a limited number of impaired loans.

Non-Interest Income

Non-interest income decreased $0.3 million, or 17.8%, to $1.5 million for the quarter ended December 31, 2025, compared to $1.9 million for the linked quarter, and decreased $0.1 million, or 5.5%, compared to $1.6 million for the same prior year period. Compared to the linked quarter, declines in SBA servicing fees and gain on sale of loans, as well as service charges, fees and other income, were partially offset by an increase in Farmer Mac referral and servicing fee income. When compared to the same prior year period, the decrease was primarily due to a $0.1 million decline in SBA servicing fees and gain on sale of loans. SBA sales activity during the quarter was partially impacted by the federal government shutdown.

Non-interest income decreased $0.5 million, or 6.4%, to $6.8 million during the twelve months ended December 31, 2025, compared to the twelve months ending December 31, 2024. The decline in non-interest income was primarily due to lower SBA servicing fees and gain on sale of loans, which were partially offset by an increase in service charges, fees, and other income.

Non-Interest Expense

Non-interest expense was $9.1 million for the quarter ended December 31, 2025, materially unchanged when compared to the linked quarter, and increased $1.0 million, or 11.8%, compared to $8.1 million for the quarter ended December 31, 2024.

Notable variances compared to the linked quarter include decreases in other expenses and salaries and benefits expense, partially offset by increases in professional services and data processing and communication expenses. The increase in non-interest expense for the fourth quarter of 2025 compared to the same prior year period was primarily due to a $0.8 million increase in salaries and benefits expense attributable to new hires, net of terminations, higher base compensation and associated payroll taxes, increased incentive compensation accruals, and higher group insurance costs.

Non-interest expense increased $7.2 million, or 20.8%, to $42.1 million for the twelve months ended December 31, 2025, compared to $34.9 million for 2024. The increase in non-interest expense was primarily driven by a $5.2 million increase in other expenses associated with non-recurring charges recorded during the second quarter of 2025, and a $2.2 million increase in salaries and benefits expense attributable to new hire activity, net of terminations, higher base compensation, and increased incentive compensation accruals.

Operating Efficiency

The Company's operating efficiency ratio decreased to 41.8% for the fourth quarter of 2025, compared to 42.0% for the fourth quarter of 2024, and increased compared to 41.7% 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 fourth quarter of 2025, compared to 1.74% for the fourth quarter of 2024, and unchanged compared to the quarter ended September 30, 2025.

The Company's operating efficiency ratio for the twelve months ended December 31, 2025, was 50.8%, up from 44.5% for the prior twelve months ended December 31, 2024. Total non-interest expense as a percentage of average assets for the twelve months ended December 31, 2025, was 2.21% up from 2.01% for the prior twelve months ended December 31, 2024.

Income Taxes

Income tax expense was $3.4 million for the fourth quarter of 2025, compared to $3.2 million for the quarter ended December 31, 2024, and $3.6 million for the linked quarter ended September 30, 2025. The Company's effective tax rate for the fourth quarter of 2025 was 29.1%, unchanged compared to the same prior year period, and 29.6% for the quarter ended September 30, 2025. 

Income tax expense was $11.2 million for the year ended December 31, 2025, compared to $11.9 million from the prior year. The Company's effective tax rate for the year ended December 31, 2025, was 29.2%, compared to 28.3% for the prior year.

Asset and Equity Returns

The return on average equity for the fourth quarter of 2025 was 14.9%, down from 16.3% for the same prior year period, and down from 16.7% for the linked quarter. The quarterly return on average assets for the fourth quarter of 2025 was 1.66%, up from 1.64% from the same prior year period, and down from 1.77% for the linked quarter.

The decline in the quarterly return on average equity for the quarter ended December 31, 2025, 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 December 31, 2025, is primarily attributable to growth in quarterly net income outpacing average asset growth. Compared to the same prior year period, average equity grew 16.0%, quarterly net income grew 6.33%, and average assets grew at 4.21%.

The decline in quarterly returns on both average equity and average assets for the quarter ended December 31, 2025, compared to the linked quarter, is primarily attributable to the growth in quarterly average equity and quarterly average assets coupled with a marginal decline in quarterly net income.

The annual return on average equity for the twelve months ended December 31, 2025, was 13.3%, down from 17.3% for the twelve months ended December 31, 2024. The annual return on average assets for the twelve months ended December 31, 2025, was 1.42%, down from 1.74% for the prior year. The decline in returns is primarily attributable to the growth in average assets and average equity coupled with a decline in net income.

Balance Sheet

Total assets increased by $27.6 million, or 1.5%, to $1.90 billion as of December 31, 2025, compared to December 31, 2024, and decreased by $63.3 million, or 3.2%, compared to September 30, 2025. Cash and cash equivalents decreased by $140.2 million, or 47.8%, to $153.3 million as of December 31, 2025, compared to the same prior year period, and decreased by $100.4 million, or 39.6%, compared to September 30, 2025.

The decrease in the Company's cash position over the past year reflects robust loan growth, which outpaced strong earnings growth and marginal deposit growth. The decrease in the Company's cash position over the past quarter reflects deposit outflows and continued strong lending activity, which outpaced earnings.

Investment securities decreased by $2.3 million or 0.9%, to $242.7 million as of December 31, 2025, compared to $244.9 million as of December 31, 2024, and decreased by $5.4 million, or 2.2%, compared to $248.1 million as of September 30, 2025. The decline in the investment securities portfolio over the past year primarily reflects normal repayment and amortization of the bond portfolio and a decline in unrealized losses on the investment securities portfolio attributable to market rate changes. Earlier in the year the Company also deployed excess liquidity into new, higher yielding securities to supplement lending demand. The decrease in the investment portfolio during the fourth quarter of 2025, compared to the linked quarter, reflected normal repayment and amortization of the bond portfolio and a decline in unrealized losses on the investment securities portfolio attributable to market rate changes during the quarter.

Loans increased by $169.9 million, or 13.2%, to $1.46 billion as of December 31, 2025, compared to December 31, 2024, and increased by $44.1 million, or 3.1%, compared to September 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, loans secured by farmland, and multi-family loans. Loan growth during the last quarter reflected a diversified mix across almost every loan category, offset only by contraction in non-owner occupied commercial real estate loans.

Total deposits increased by $7.0 million, or 0.4%, to $1.66 billion as of December 31, 2025, from $1.65 billion as of December 31, 2024, and decreased by $72.8 million, or 4.2%, compared to September 30, 2025. Non-interest-bearing deposits increased by $16.7 million, or 2.6%, during the last year, and decreased by $8.5 million, or 1.3%, since September 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 new account openings. More recently, however, deposit trends reflect increased rate sensitivity amid changes in the interest rate environment following Federal Reserve rate cuts. Some customers have reallocated excess liquidity toward higher yielding investment opportunities. Non-interest-bearing deposits represented 40.0% of total deposits on December 31, 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 $220.3 million as of December 31, 2025, an increase of $30.8 million, or 16.3%, compared to December 31, 2024, and an increase of $8.6 million, or 4.0%, compared to September 30, 2025, primarily due to quarterly earnings, net of changes in accumulated other comprehensive loss. The accumulated other comprehensive loss component of equity decreased by $4.1 million during the year, primarily reflecting a $4.9 million decrease in unrealized losses on the investment securities portfolio, partially offset by a $0.8 million increase in unrealized losses on the interest rate swap contracts. The accumulated other comprehensive loss component of equity decreased by $1.1 million during the quarter due to a decline in the unrealized losses on the investment securities portfolio.

Allowance for Credit Losses and Credit Quality

The ACL as a percentage of gross loans increased modestly to 1.50% as of December 31, 2025, from 1.47% as of September 30, 2025, and is unchanged from December 31, 2024. The ACL as a percentage of gross loans over the past twelve months has not fluctuated, reflecting the stable credit profile of the loan portfolio.

Nonperforming assets were $2.6 million as of December 31, 2025, up from $0.7 million as of September 30, 2025, and up from $1.1 million as of December 31, 2024. Nonperforming assets as a percentage of total assets were 0.14% as of December 31, 2025, up from 0.04% as of September 30, 2025, and up from 0.06% as of December 31, 2024.

Regulatory Capital

The Bank's reported regulatory capital ratio exceeded the ratio generally required to be considered a "well capitalized" financial institution for regulatory purposes. The Community Bank Leverage Ratio for the Bank was 11.61%, as of December 31, 2025, compared with the requirement of 9.00% to generally be considered a "well capitalized" financial institution for regulatory purposes. The Bank's Community Bank Leverage ratio has increased by 54 and 32 basis points, from 11.07% and 11.29%, as of the periods ended December 31, 2024, and September 30, 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

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 previous extension under the Plan expired on October 23, 2025, and the Company extended the Plan for an additional six months, through April 23, 2026. 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 fourth quarter of 2025 the Company repurchased 11,501 shares under the 2022 10b5-1 Plan at an average price of $94.91. Since Plan inception the Company has repurchased 32,926 shares at an average price of $92.17.

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 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
							December 31, 2025		September 30, 2025		June 30, 2025		December 31, 2024		12/25 - 09/25		12/25 - 12/24
Assets
	Cash and due from banks						$                        45,285		$                        45,853		$                        65,425		$                        46,596		$                 (568)		$               (1,311)
	Interest earning deposits in other banks						107,983		207,788		136,406		246,872		(99,805)		(138,889)
		Total cash and cash equivalents					153,268		253,641		201,831		293,468		(100,373)		(140,200)
	Interest earning deposits maturing over ninety days						490		490		490		490		-		-
	Investment securities available-for-sale, at fair value						242,660		248,109		250,199		244,922		(5,449)		(2,262)
	Loans						1,460,676		1,416,607		1,355,615		1,290,802		44,069		169,874
	Allowance for credit losses						(21,909)		(20,799)		(20,332)		(19,423)		(1,110)		(2,486)
	Loans, net						1,438,767		1,395,808		1,335,283		1,271,379		42,959		167,388
	Premises and equipment, net						2,636		2,762		2,855		2,785		(126)		(149)
	Bank owned life insurance						22,534		22,372		22,211		21,899		162		635
	Deferred tax asset, net						15,346		15,027		16,595		16,364		319		(1,018)
	Interest receivable and other assets						27,754		28,575		29,277		24,549		(821)		3,205
Total Assets							$                   1,903,455		$                   1,966,784		$                   1,858,741		$                   1,875,856		$           (63,329)		$              27,599
Liabilities and Shareholders' Equity
	Deposits
		Noninterest-bearing demand					$                      662,809		$                      671,285		$                      635,530		$                      646,129		$              (8,476)		$              16,680
		Interest bearing					993,554		1,057,847		992,734		1,003,196		(64,293)		(9,642)
			Total deposits				1,656,363		1,729,132		1,628,264		1,649,325		(72,769)		7,038
		Other borrowings					-		-		-		-		-		-
		Subordinated debentures, net of issuance costs					11,988		11,977		11,966		21,934		11		(9,946)
		Interest payable and other liabilities					14,800		13,929		19,183		15,111		871		(311)
Total Liabilities							1,683,151		1,755,038		1,659,413		1,686,370		(71,887)		(3,219)
Shareholders' Equity
		Common stock					100,846		101,495		101,331		89,496		(649)		11,350
		Retained earnings					133,594		125,444		116,806		118,248		8,150		15,346
		Accumulated other comprehensive loss					(14,136)		(15,193)		(18,809)		(18,258)		1,057		4,122
			Total shareholders' equity				220,304		211,746		199,328		189,486		8,558		30,818
	Total Liabilities and Shareholders' Equity						$                   1,903,455		$                   1,966,784		$                   1,858,741		$                   1,875,856		$            (63,329)		$              27,599
SBA Paycheck Protection Program Loans							257		306		355		452		(49)		(195)

 

MISSION BANCORP
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(Dollars in thousands)
						For the Three Months Ended										For the Twelve Months Ended
												Variance								Variance
						December 31, 2025		September 30, 2025		December 31, 2024		12/25 - 09/25		12/25 - 12/24		December 31, 2025		December 31, 2024		12/25 - 12/24
Interest and Dividend Income
	Loans					$                             22,969		$                             22,867		$                             20,233		$                    102		$                 2,736		$                             87,289		$                             79,820		$                 7,469
	Investment securities					2,200		2,430		2,374		(230)		(174)		9,413		9,958		(545)
	Other					2,075		2,566		3,433		(491)		(1,358)		9,871		9,378		493
		Total interest and dividend income				27,244		27,863		26,040		(619)		1,204		106,573		99,156		7,417
Interest Expense
	Other deposits					6,534		7,244		7,044		(710)		(510)		27,386		23,304		4,082
	Time deposits					350		509		991		(159)		(641)		2,325		3,334		(1,009)
		Total interest expense on deposits				6,884		7,753		8,035		(869)		(1,151)		29,711		26,638		3,073
	Other borrowings					-		-		-		-		-		-		315		(315)
	Subordinated debentures					124		124		268		-		(144)		717		1,071		(354)
		Total interest expense				7,008		7,877		8,303		(869)		(1,295)		30,428		28,024		2,404
Net Interest Income						20,236		19,986		17,737		250		2,499		76,145		71,132		5,013
Credit Loss Expense						1,166		466		400		700		766		2,537		1,469		1,068
Net Interest Income After Provision
	for Credit Losses					19,070		19,520		17,337		(450)		1,733		73,608		69,663		3,945
Non-Interest Income
	Service charges, fees and other income					1,073		1,195		1,078		(122)		(5)		4,489		4,083		406
	Farmer Mac referral and servicing fees					390		293		363		97		27		1,358		1,335		23
	SBA servicing fees and gain on sale of loans					57		362		168		(305)		(111)		964		1,841		(877)
	Loss on sale of securities					-		-		-		-		-		(49)		(31)		(18)
		Total non-interest income				1,520		1,850		1,609		(330)		(89)		6,762		7,228		(466)
Non-Interest Expense
	Salaries and benefits					5,835		5,915		5,047		(80)		788		23,416		21,236		2,180
	Professional services					1,109		1,010		1,018		99		91		4,717		4,884		(167)
	Occupancy and equipment					591		599		571		(8)		20		2,349		2,321		28
	Data processing and communication					441		380		402		61		39		1,569		1,621		(52)
	Other					1,112		1,197		1,093		(85)		19		10,052		4,803		5,249
		Total non-interest expense				9,088		9,101		8,131		(13)		957		42,103		34,865		7,238
Net Income Before Provision for Income Taxes						11,502		12,269		10,815		(767)		687		38,267		42,026		(3,759)
Provision for Income Taxes						3,352		3,631		3,150		(279)		202		11,191		11,884		(693)
Net Income						$                              8,150		$                              8,638		$                              7,665		$                  (488)		$                    485		$                             27,076		$                             30,142		$                (3,066)

 

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 Twelve Months Ended
				December 31, 2025		September 30, 2025		June 30, 2025		December 31, 2024		December 31, 2025		December 31, 2024
Ratio of total loans to total deposits				88.19 %		81.93 %		83.26 %		78.26 %		88.19 %		78.26 %
Return on average assets				1.66 %		1.77 %		0.67 %		1.64 %		1.42 %		1.74 %
Return on average equity				14.88 %		16.71 %		6.28 %		16.27 %		13.26 %		17.31 %
Net interest margin				4.31 %		4.27 %		4.07 %		3.96 %		4.18 %		4.31 %
Efficiency ratio				41.77 %		41.68 %		73.82 %		42.03 %		50.78 %		44.49 %
Non-interest expense as a percent of average assets				1.86 %		1.86 %		3.15 %		1.74 %		2.21 %		2.01 %
Non-interest income as a percent of average assets				0.31 %		0.38 %		0.39 %		0.34 %		0.36 %		0.42 %
Community Bank Leverage Ratio				11.61 %		11.29 %		11.43 %		11.07 %		11.61 %		11.07 %
Weighted average shares outstanding - basic*				2,777,105		2,780,215		2,783,721		2,767,351		2,779,402		2,758,993
Weighted average shares outstanding - diluted*				2,832,578		2,835,258		2,834,836		2,821,693		2,833,772		2,807,909
Shares outstanding at period end - basic*				2,770,207		2,778,818		2,780,875		2,768,438		2,770,207		2,768,438
Earnings per share - basic				$                                  2.93		$                                  3.11		$                                  1.13		$                                  2.77		$                                 9.74		$                                10.93
Earnings per share - diluted				$                                  2.88		$                                  3.05		$                                  1.11		$                                  2.72		$                                 9.55		$                                10.73
Total assets				$                         1,903,455		$                         1,966,784		$                         1,858,741		$                         1,875,856		$                        1,903,455		$                         1,875,856
Loans and leases net of deferred fees				$                         1,460,676		$                         1,416,607		$                         1,355,615		$                         1,290,802		$                        1,460,676		$                         1,290,802
Noninterest-bearing demand deposits				$                            662,809		$                            671,285		$                            635,530		$                            646,129		$                           662,809		$                            646,129
Total deposits				$                         1,656,363		$                         1,729,132		$                         1,628,264		$                         1,649,325		$                        1,656,363		$                         1,649,325
Noninterest-bearing deposits as a percentage total deposits				40.02 %		38.82 %		39.03 %		39.18 %		40.02 %		39.18 %
Average total assets				$                         1,942,161		$                         1,940,923		$                         1,868,348		$                         1,863,633		$                        1,904,395		$                         1,732,472
Average total equity				$                            217,268		$                            205,128		$                            200,310		$                            187,377		$                           204,119		$                            174,122
Shareholders' equity / total assets				11.57 %		10.77 %		10.72 %		10.10 %		11.57 %		10.10 %
Book value per share				$                                79.53		$                                76.20		$                                71.68		$                               68.44		$                               79.53		$                                68.44
*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
					December 31, 2025				September 30, 2025				December 31, 2024
					Average	Income /	Yield /		Average	Income /	Yield /		Average	Income /	Yield /
					Balance	Expense	Rate		Balance	Expense	Rate		Balance	Expense	Rate
Assets
	Interest earning deposits in other banks				$                  185,641	$       1,862	3.98 %		$                  215,393	$       2,396	4.42 %		$                  270,707	$       3,246	4.77 %
	Investment securities				246,307	2,200	3.54 %		248,188	2,430	3.88 %		240,752	2,374	3.92 %
	Loans				1,417,946	22,969	6.43 %		1,381,406	22,867	6.57 %		1,260,935	20,233	6.38 %
	Other earning assets				11,039	213	7.66 %		10,846	170	6.22 %		9,014	187	8.24 %
		Total Earning Assets			1,860,933	27,244	5.81 %		1,855,833	27,863	5.96 %		1,781,408	26,040	5.82 %
	Non-interest earning assets				81,228				85,090				82,225
		Total Assets			$                1,942,161				$                1,940,923				$                1,863,633
Liabilities and Capital
	Interest-bearing deposits
		Interest-bearing transaction accounts			$                  952,088	$       6,504	2.71 %		$                  945,762	$       7,224	3.03 %		$                  848,398	$       6,922	3.25 %
		Time deposits			49,906	350	2.78 %		64,596	509	3.13 %		96,336	991	4.09 %
		1031 Exchange deposits			28,630	30	0.42 %		51,365	20	0.15 %		55,580	122	0.88 %
			Total interest-bearing deposits		1,030,624	6,884	2.65 %		1,061,723	7,753	2.90 %		1,000,314	8,035	3.20 %
	Borrowed funds
		Other borrowings			-	-	-		3	-	0.00 %		-	-	-
		Subordinated debt			11,982	124	4.11 %		11,971	124	4.11 %		21,923	268	4.86 %
			Total interest-bearing liabilities		1,042,606	7,008	2.67 %		1,073,697	7,877	2.91 %		1,022,237	8,303	3.23 %
	Noninterest-bearing deposits				666,460				643,854				636,043
			Total Funding		1,709,066	7,008	1.63 %		1,717,551	7,877	1.82 %		1,658,280	8,303	1.99 %
	Other noninterest-bearing liabilities				15,827				18,244				17,976
		Total Liabilities			1,724,893				1,735,795				1,676,256
		Total Capital			217,268				205,128				187,377
			Total Liabilities and Capital		$                1,942,161				$                1,940,923				$                1,863,633
	Net Interest Margin				4.31 %				4.27 %				3.96 %
	Net Interest Spread				4.18 %				4.14 %				3.82 %

 

MISSION BANCORP
AVERAGE BALANCES AND RATES
(Unaudited)
(Dollars in thousands)
					As of or for the Twelve Months Ended				As of or for the Twelve Months Ended
					December 31, 2025				December 31, 2024
					Average	Income /	Yield /		Average	Income /	Yield /
					Balance	Expense	Rate		Balance	Expense	Rate
Assets
	Interest earning deposits in other banks				$                   211,536	$       9,149	4.33 %		$                   169,248	$        8,707	5.14 %
	Investment securities				245,764	9,413	3.83 %		237,390	9,958	4.19 %
	Loans				1,353,251	87,289	6.45 %		1,234,063	79,820	6.47 %
	Other earning assets				9,993	722	7.23 %		8,998	671	7.45 %
		Total Earning Assets			1,820,544	106,573	5.85 %		1,649,699	99,156	6.01 %
	Non-interest earning assets				83,851				82,773
		Total Assets			$                1,904,395				$                1,732,472
Liabilities and Capital
	Interest-bearing deposits
		Interest-bearing transaction accounts			$                   921,765	$      27,255	2.96 %		$                   757,039	$      22,810	3.01 %
		Time deposits			69,840	2,325	3.33 %		84,089	3,334	3.96 %
		1031 Exchange deposits			37,697	131	0.35 %		50,344	494	0.98 %
			Total interest-bearing deposits		1,029,302	29,711	2.89 %		891,472	26,638	2.99 %
	Borrowed funds
		Other borrowings			1	-	-		6,626	315	4.75 %
		Subordinated debt			15,771	717	4.55 %		21,897	1,071	4.89 %
			Total interest-bearing liabilities		1,045,074	30,428	2.91 %		919,995	28,024	3.05 %
	Noninterest-bearing deposits				638,381				621,709
			Total Funding		1,683,455	30,428	1.81 %		1,541,704	28,024	1.82 %
	Other noninterest-bearing liabilities				16,821				16,646
		Total Liabilities			1,700,276				1,558,350
		Total Capital			204,119				174,122
			Total Liabilities and Capital		$                1,904,395				$                1,732,472
	Net Interest Margin				4.18 %				4.31 %
	Net Interest Spread				4.05 %				4.19 %

 

MISSION BANCORP
LOAN DETAIL
(Unaudited)
(Dollars in thousands)
															Variance
							December 31, 2025		September 30, 2025		June 30, 2025		December 31, 2024		12/25 - 09/25		12/25 - 12/24
	Loans
		Construction and land development					$                   66,699		$                      63,454		$                      45,471		$                      59,474		$                     3,245		$                      7,225
		Secured by farmland					169,321		155,882		154,032		137,376		13,439		31,945
		Residential 1 to 4 units					67,567		67,517		65,603		61,596		50		5,971
		Multi-family					78,342		72,470		67,589		47,050		5,872		31,292
		Owner occupied commercial real estate					525,130		515,348		504,883		525,745		9,782		(615)
		Non-owner occupied commercial real estate					256,052		257,864		242,205		195,339		(1,812)		60,713
		Commercial and industrial					203,716		194,741		184,405		170,433		8,975		33,283
		Agricultural production					95,964		92,042		92,609		95,669		3,922		295
		Other loans					934		239		1,611		684		694		250
		Net Deferred Fees-Costs					(3,049)		(2,951)		(2,793)		(2,564)		(98)		(485)
			Total Loans				$               1,460,676	#	$                 1,416,607		$                 1,355,615		$                 1,290,802		$                   44,069		$                  169,874

 

MISSION BANCORP
Credit Quality
(Unaudited)
(Dollars in thousands)
						December 31, 2025		September 30, 2025		June 30, 2025		December 31, 2024
Asset quality
Loans past due 90 days or more and accruing interest						$                             -		$                             -		$                             -		$                             -
Nonaccrual loans						$                     2,624		$                        717		$                     1,698		$                     1,062
Restructured loans
	Nonperforming restructured loans					$                             -		$                             -		$                             -		$                             -
	Performing restructured loans					$                             -		$                             -		$                             -		$                             -
Other real estate owned						$                             -		$                             -		$                             -		$                             -
Total nonperforming assets						$                     2,624		$                        717		$                     1,698		$                     1,062
Allowance for credit losses to total loans						1.50 %		1.47 %		1.50 %		1.50 %
Allowance for credit losses to nonperforming loans						834.95 %		2901.06 %		1197.41 %		1828.91 %
Nonaccrual loans to total loans						0.18 %		0.05 %		0.13 %		0.08 %
Nonperforming assets to total assets						0.14 %		0.04 %		0.09 %		0.06 %

 

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SOURCE Mission Bank

FAQ

What were Mission Bancorp (MSBC) earnings per share for Q4 2025?

MSBC reported $2.88 diluted EPS for Q4 2025. According to Mission, this compares to $2.72 in Q4 2024 and reflects higher net interest income partially offset by increased non-interest expense and credit loss provisions.

What drove Mission Bancorp's 13.2% loan growth in 2025 (MSBC)?

Loan growth was primarily organic, rising 13.2% YoY to $1.46 billion. According to Mission, higher demand for lending and targeted regional expansion supported increases in average loan balances and a favorable asset mix.

How did loan growth affect Mission Bancorp's net interest margin (MSBC)?

Stronger loan volumes helped lift the net interest margin to 4.31% in Q4 2025. According to Mission, loan mix shifted to higher-yielding loans while deposit costs fell, expanding margin despite lower yields on some earning assets.

Why did Mission Bancorp's full-year net income decline in 2025 (MSBC)?

Full-year net income fell 10.2% to $27.1 million. According to Mission, one-time non-recurring charges and higher credit loss provisions more than offset increases in net interest income for the year.

What is Mission Bancorp's credit reserve and overall credit quality (MSBC)?

The allowance for credit losses remained 1.50% of gross loans and nonaccrual loans were 0.18% of gross loans as of Dec 31, 2025. According to Mission, provisions reflected loan growth and CECL-model macro adjustments rather than broad portfolio deterioration.