Mission Bancorp Reports Second Quarter Earnings of $7.3 Million. Annualized Deposit Growth of 19%.

Rhea-AI Summary

Mission Bancorp (OTC Pink: MSBC) reported Q2 2024 net income of $7.3 million, or $2.73 per diluted share, unchanged from Q1 2024 but down 5.2% from Q2 2023. Key highlights include:

- Gross loans increased 5.9% YoY to $1.23 billion
- Total deposits grew 7.5% YoY to $1.48 billion
- Net interest margin was 4.47%, down from 4.68% in Q2 2023
- Efficiency ratio increased to 47.3% from 42.9% in Q2 2023
- Community Bank Leverage Ratio improved to 11.81%

The bank faced industry challenges but reported strong deposit growth. Credit quality remained strong with nonaccrual loans at 0.04% of total gross loans. Mission Bancorp was included in American Banker's list of top 20 performing publicly traded banks under $2 billion in assets.

Positive

• Gross loans increased 5.9% year-over-year to $1.23 billion
• Total deposits grew 7.5% year-over-year to $1.48 billion
• Community Bank Leverage Ratio improved to 11.81%, well above the 9.00% requirement
• Credit quality remained strong with nonaccrual loans at only 0.04% of total gross loans
• Included in American Banker's list of top 20 performing publicly traded banks under $2 billion in assets

Negative

• Net income decreased 5.2% compared to Q2 2023
• Net interest margin declined to 4.47% from 4.68% in Q2 2023
• Efficiency ratio increased to 47.3% from 42.9% in Q2 2023
• Non-interest expense increased by 13.7% compared to Q2 2023

BAKERSFIELD, Calif., July 29, 2024 /PRNewswire/ -- Mission Bancorp ("Mission" or the "Company") (OTC Pink: MSBC), a bank holding company and parent of Mission Bank (the "Bank"), reported unaudited net income available to common shareholders of $7.3 million, or $2.73 per diluted common share, for the second quarter of 2024, compared to net income available to common shareholders of $7.7 million, or $2.91 per diluted common share, for the second quarter of 2023, and net income available to common shareholders of $7.3 million, or $2.77 per diluted common share, for the linked quarter.

"We face the same industry challenges as our peers, yet we have been able to report tremendous deposit growth this quarter. We are proud of our team's focus on providing exceptional customer service; the hard work is evident in our results," said A.J. Antongiovanni, President, and Chief Executive Officer of Mission Bancorp. Mr. Antongiovanni continued, "Although we see economic challenges and uncertainty around interest rates in the future, our fortress balance sheet will allow us to weather the storm if the road gets rocky."

Second Quarter 2024 Financial Highlights

• Gross loans increased by $68.5 million, or 5.9%, to $1.23 billion as of June 30, 2024, compared to $1.16 billion at June 30, 2023, and increased by 0.2% or $2.1 million compared to March 31, 2024, balances.
• Total deposits increased by $103.4 million, or 7.5%, to $1.48 billion as of June 30, 2024, compared with $1.38 billion a year earlier, and increased by $67.8 million, or 4.8%, from $1.42 billion as of March 31, 2024. Noninterest-bearing deposits were $619.3 million and represent 41.7% of total deposits at June 30, 2024.
• The allowance for credit losses ("ACL") as a percentage of gross loans increased from 1.48% at June 30, 2023, to 1.52% at June 30, 2024.
• Credit quality remains strong with nonaccrual loans representing 0.04% of total gross loans at June 30, 2024, up from 0.00% as of June 30, 2023.
• The Community Bank Leverage Ratio for the Bank as of June 30, 2024, was 11.81%, compared to 10.97% at June 30, 2023.
• We are happy to report our inclusion in American Banker's list of the 20 top-performing publicly traded banks under $2 billion in assets.

Net Income Available to Common Shareholders

Net income available to common shareholders for the second quarter of 2024 was $7.3 million, or $2.73 per diluted common share, compared with $7.3 million, or $2.77 per diluted common share, for the linked quarter ended March 31, 2024. Net income available to common shareholders was $7.7 million, or $2.91 per diluted common share, for the second quarter of 2023. Net income available to common shareholders was unchanged compared to the linked quarter, and decreased $0.4 million, or 5.2%, compared to the same prior year period.

Notable variances comparing to the linked quarter include a decrease in net interest income, and increased non-interest expense, which were partially offset by a decrease in the provision for credit losses. Compared to the second quarter of 2023, non-interest expense and the provision for income taxes increased, which were partially offset by a decrease in the provision for credit losses and increases in net interest income and non-interest income.

Net Interest Income

Net interest income was $17.5 million, or 4.47%, of average earning assets ("net interest margin"), for the second quarter of 2024, compared with $17.1 million, or a net interest margin of 4.68%, for the same period a year earlier, and $17.7 million, or a net interest margin of 4.55%, for the quarter ended March 31, 2024.

Net interest income increased by $0.4 million, or 2.4%, compared to the same prior year period primarily driven by growth in the Company's loan portfolio and interest-bearing deposits in other banks, along with an increase in yields on earning assets. Loan interest income and fee accretion increased by $2.4 million compared to the second quarter of 2023. Additionally, the Company also experienced increased interest income from interest earning deposits in other banks and investment securities of $0.7 million and $0.1 million, respectively. Offsetting these increases, interest expense for the current quarter increased $2.9 million, compared to the same prior year period, primarily due to increased balances and costs of interest-bearing deposits.

Net interest income decreased for the quarter ended June 30, 2024, compared to the linked quarter by $0.2 million, or 1.2%, due primarily to an increase in interest expense on deposits which more than offset an increase in interest income. Interest expense on deposits increased $0.6 million, for the current quarter, compared to the linked quarter, due to increased costs on interest bearing deposits and higher average balances. Interest on other borrowings decreased by $0.2 million during the current quarter due to the maturity of a one-year term borrowing facility. Interest income increased $0.3 million, for the current quarter, compared to the linked quarter, primarily due to both growth in average quarterly balances and higher yields on loans.

The net interest margin was 4.47% for the quarter ended June 30, 2024, compared to 4.68% for the same prior year period, and 4.55% for the linked quarter ended March 31, 2024. Asset yields have increased 46 basis points, but the cost of funds has risen 73 basis points, contributing to the year-over-year 21 basis point decline in the quarterly net interest margin. Additionally, average interest-bearing liabilities have grown $121.6 million, outpacing the growth in average interest-earning assets of $109.2 million, when compared to the same prior year period.

The yield on loans, investment securities, and interest earning deposits in other banks have increased by 40 basis points to 6.50%, 54 basis points to 4.19%, and 33 basis points to 5.37%, respectively, when compared to the same prior year period. Additionally, average balances on loans increased $77.1 million, or 6.72%, average balances on investment securities declined $20.0 million, or 7.80%, and average balances on interest bearing deposits in other banks increased $51.6 million, or 111.6%, when compared to the same prior year period.

The 8 basis point decrease in the net interest margin for the second quarter of 2024, compared to the linked quarter, is primarily attributable to higher costs on interest-bearing liabilities and higher average balances of interest-bearing deposits. The Company's costs of interest-bearing liabilities increased 21 basis points outpacing the 4 basis point rise on earning asset yields, which led to net interest margin compression during the quarter. The average balances of interest-bearing deposits increased $23.3 million and other borrowings decreased by $13.3 million, while the average balances of loans increased $17.3 million, average investment securities decreased $2.6 million, and average interest earning deposits in other banks decreased by $5.5 million during the quarter.

The cost of interest-bearing deposits increased 26 basis points to 2.91% for the quarter ended June 30, 2024, compared to the linked quarter ended March 31, 2024, and 117 basis points, compared to the same prior year period.  The increase in the Company's cost of funds is attributable to the "higher for longer" rate environment and increased competition for deposits in general. The Bank has continued to grow its total deposit accounts through new customer acquisition and expansion of existing relationships over the last year, however, our clients have also continued to optimize their operating account balances in order to maximize their interest-bearing balances, leading to a decline in the percentage of non-interest-bearing deposits of total deposits. Additionally, Mission continues to outperform peers by achieving lower deposit costs than peer averages. Compared to a peer group consisting of all California Commercial Banks from S&P Capital IQ as of March 31, 2024, Mission's cost of funds rose 15% less than the 86 basis point peer average when compared to the same prior year period.

For the six months ended June 30, 2024, the Company's net interest margin decreased 21 basis points to 4.51%, compared to 4.72% for the six months ended June 30, 2023. The decline in net interest margin is the result of a 126 basis point increase in the cost of total interest-bearing liabilities and $152.3 million growth in average interest-bearing liability balances, which outpaced the 57 basis point increase in earning asset yields and the $122.7 million growth in average earning asset balances.

In the third quarter of 2023 the Company entered into two pay-fixed, receive floating, interest rate swap contracts with notional balances totaling $108.0 million, to hedge future interest rate increases. These swap contracts consist of a $50.0 million hedge on the commercial real estate loan portfolio with a three-year maturity and a $58.0 million hedge on the municipal investment security portfolio with a five-year maturity. For both the current quarter ending on June 30, 2024, and the linked quarter ending on March 31, 2024, the interest rate swap contract associated with the loan portfolio generated an additional $0.1 million in interest income and added 5 basis points to loan yields. For the current quarter, the interest rate swap contract on the investment securities portfolio added $0.2 million in interest income and added 40 basis points to investment securities yields, compared to $0.2 million and 38 basis points for the prior quarter ended March 31, 2024. The interest rate swap contracts on the loan and investment securities portfolios generated $0.4 million total of additional interest income and 10 basis points of additional earning asset yield during the quarter ended June 30, 2024.

Provision for Credit Losses

There was no provision for credit loss recorded for the quarter ending June 30, 2024, compared to $0.7 million for the linked-quarter and $0.5 million for the same period a year ago. The Company's quarterly credit loss provisions over the past year have been recorded primarily to account for growth in the loan portfolio and changes in macro-economic conditions which impact the calculated ACL under the current expected credit loss ("CECL") model, rather than in response to changing conditions in the Company's loan portfolio, which have remained stable, demonstrating a low credit risk profile during the past twelve months.

Non-Interest Income

Non-interest income for the second quarter of 2024 was $1.6 million, relatively unchanged when compared to the linked quarter, and up from $1.4 million for the same period a year earlier. Notable variances when compared to the linked quarter were decreases in SBA servicing fees and gain on sale of loans, which were partially offset by increases in Farmer Mac referral and servicing fee income, and service charges, fees, and other income. The increase in non-interest income when compared to the same period a year earlier was primarily due to increases in Farmer Mac referral and servicing fee income and SBA servicing fees and gain on sale of loans, which were partially offset by a loss on sale of securities reported in the current period and a gain on sale of premises and equipment recorded in the second quarter of 2023.

Non-Interest Expense

Non-interest expense increased by $0.5 million, or 6.1%, to $9.0 million for the quarter ended June 30, 2024, compared to $8.5 million for the linked quarter, and increased by $1.1 million, or 13.7%, compared to $7.9 million for the quarter ended June 30, 2024.

The increase in non-interest expense for the first quarter of 2024 compared to the linked quarter was primarily due to a $0.4 million increase in professional services expense associated with elevated legal and consulting fees.

The increase in non-interest expense for the second quarter of 2024 compared to the second quarter of 2023 was primarily due to a $0.6 million increase in salaries and benefits expense and a $0.3 million increase in other expenses. The increase in salaries and benefits expense is associated with increased base compensation, incentive compensation accruals, and payroll taxes. The increase in other expenses is primarily due to increased loan and deposit processing costs, higher Director fees, and additional operational losses.

Operating Efficiency

The Company's operating efficiency ratio increased to 47.3% for the second quarter of 2024, compared to 42.9% for the second quarter of 2023, and increased from 44.0% compared to the linked quarter. Total non-interest expense as a percentage of average assets, another measure of the Company's efficiency, was 2.19% for the second quarter of 2024, compared to 2.06% for the second quarter of 2023, and 2.08% for the quarter ended March 31, 2024.

Income Taxes

Income tax expense was $2.8 million for the second quarter of 2024, compared to $2.4 million for the quarter ended June 30, 2023, and relatively unchanged for the linked quarter ended March 31, 2024. The Company's effective tax rate for the second quarter of 2024 was 27.5%, compared to 24.1% for the same period a year ago, and unchanged from the quarter ended March 31, 2024. 

Asset and Equity Returns

The return on average equity for the second quarter of 2024 was 17.4%, down from 22.7% for the same prior year period, and down from 18.4% for the linked quarter. The quarterly return on average assets for the second quarter of 2024 was 1.77%, down from 1.99% for the same prior year period, and down from 1.80% for the linked quarter.

The decline in the quarterly returns on both average equity and average assets for the quarter ended June 30, 2024, compared to the second quarter of 2023, is primarily attributable to the 24.4% growth in average equity and the 7.07% growth in average assets, coupled with a 5.17% decline in quarterly net income.

The decrease in the current quarterly return on average equity, as compared to the linked quarter is primarily attributable to the 4.87% growth in average equity. The decline in the quarterly return on average assets, compared to the linked quarter, is primarily attributable to a 0.86% decline in quarterly net income.

Balance Sheet

Total assets increased by $114.3 million, or 7.2%, to $1.69 billion at June 30, 2024, compared to June 30, 2023, and increased by $53.6 million, or 3.3%, compared to March 31, 2024. Cash and cash equivalents increased by $59.1 million, or 49.8%, to $177.8 million at June 30, 2024, compared to the same prior year period, and increased by $58.8 million, or 49.4%, compared to March 31, 2024. The significant increase in the Company's cash position over the last year is primarily the result of deposit growth, earnings, and bond portfolio repayment and amortization, which outpaced loan portfolio growth. The increase in the Company's cash position over the past quarter is primarily due to robust deposit growth, net of the Federal Reserve Bank borrowing facility repayment upon maturity, which outpaced loan growth for the quarter.

Investment securities decreased by $18.1 million or 7.2%, to $234.1 million at June 30, 2024, compared to $242.7 million at June 30, 2023, and decreased by $6.3 million, or 2.6%, compared to $240.4 million at March 31, 2024. The decrease in the investment securities portfolio over the past year and quarter is attributable to repayments and amortization of the bond portfolio.

Loans increased by $68.5 million, or 5.9%, to $1.23 billion at June 30, 2024, compared to June 30, 2023, and increased by $2.1 million, or 0.2%, compared to March 31, 2024. Loan growth during the last year has been diversified across the portfolio, with notable growth in owner and non-owner occupied commercial real estate, agricultural production, and residential 1 to 4 family units segments of the loan portfolio, which were partially offset by the contraction in loans secured by farmland and construction and land development loans. Loan growth during the last quarter has been concentrated in owner and non-owner occupied commercial real estate and agricultural production segments of the loan portfolio, which were partially offset by decreases in commercial and industrial loans and loans secured by farmland.

Total deposits increased by $103.4 million, or 4.8%, to $1.48 billion as of June 30, 2024, from $1.38 billion as of June 30, 2023, and increased by $67.8 million, or 4.8%, from $1.42 billion at March 31, 2024. Noninterest-bearing deposits decreased by $44.1 million, or 6.7%, during the last year, and increased by $6.4 million, or 1.0%, since March 31, 2024. The decrease in noninterest bearing deposits experienced over the last year is attributable to both cash utilization by business customers as well as the migration of funds to interest bearing accounts for yield. Noninterest-bearing deposits represented 41.7% of total deposits on June 30, 2024.

Total shareholders' equity was $173.6 million at June 30, 2024, an increase of $34.5 million, or 24.8%, compared to June 30, 2023, and an increase of $8.6 million, or 5.2%, compared to March 31, 2024, due primarily to quarterly earnings, net of changes in accumulated other comprehensive income or loss. The accumulated other comprehensive loss component of equity decreased $0.6 million during the past quarter due to a $0.5 million decrease in the accumulated other comprehensive loss on the investment securities portfolio and a $0.1 million increase in the accumulated other comprehensive gain associated with the interest rate swap contract, which is a hedge on interest rates of the investment securities portfolio. The accumulated other comprehensive loss decreased by $2.2 million during the past year resulting from a $1.6 million decrease in the accumulated other comprehensive loss on the investment securities portfolio and a $0.6 million increase in the accumulated other comprehensive gain associated with the interest rate swap contract.

Nonperforming assets were $0.5 million at June 30, 2024, down from $0.7 million at March 31, 2024, and up from $0.1 million at June 30, 2023. Nonperforming assets as a percentage of total assets were 0.03% at June 30, 2024, down from 0.04% at March 31, 2024, and up from 0.00% at June 30, 2023. Non-accrual loans currently recorded have been fully reserved for, in line with Management's prudent credit management standards.

Allowance for Credit Losses

The allowance for credit losses ("ACL") as a percentage of gross loans decreased to 1.52% at June 30, 2024, from 1.54% at March 31, 2024, and increased from 1.48% at June 30, 2023. The rise in our ACL as a percentage of gross loans over the last twelve months is a result of prudent management amid ongoing economic uncertainties stemming from sustained inflationary pressures and elevated interest rates.

Regulatory Capital

The Bank's reported regulatory capital ratio exceeded the ratio generally required to be considered a "well capitalized" financial institution for regulatory purposes. The Community Bank Leverage Ratio for the Bank was 11.81%, at June 30, 2024, compared with the requirement of 9.00% to generally be considered a "well capitalized" financial institution for regulatory purposes. The Bank's Community Bank Leverage ratio has increased by 84 basis points from 10.97%, and increased by 22 basis points from 11.59%, as of the periods ended June 30, 2023, and March 31, 2024, respectively. Strong earnings over the past year and quarter outpaced the growth in average assets, resulting in an increase in regulatory capital ratios.

Stock Repurchase Program

The Company announced on April 29, 2024, the extension of its plan Rule 10b5-1 (the "2022 10b5-1 Plan") to facilitate the repurchase of its common stock. Pursuant to the 2022 10b5-1 Plan, a maximum of $1.0 million of the Company's common stock may be repurchased by the Company. The previous extension under the Plan expired on April 26, 2024, and the Company extended the Plan for an additional six months, through October 25, 2024. The Company may suspend or discontinue the Plan at any time. Hilltop Securities, Inc. is acting as the Company's agent to purchase its shares on pre-arranged terms pursuant to the 2022 10b5-1 Plan.

The Company did not purchase any shares under the 2022 10b5-1 Plan during the second quarter of 2024. Since Plan inception the Company has repurchased 4,066 shares at an average price of $82.62.

About Mission Bancorp and Mission Bank

With $1.7 billion in assets, Mission Bancorp is headquartered in Bakersfield, California and is the holding company of four wholly owned subsidiaries, Mission Bank, Mission 1031 Exchange, LLC, Mission Community Development, LLC, and Nosbig 88, Inc. Mission Bank has eight Business Banking Centers, serving the greater areas of Bakersfield, Lancaster, San Luis Obispo, Stockton, Ventura, and Visalia, California. Visit Mission Bank online at www.missionbank.bank. By including the foregoing website address, Mission Bancorp does not intend to, and shall not be deemed to incorporate by reference any material contained therein.

Forward Looking Statements

This press release may contain forward-looking statements that are subject to risks and uncertainties. Such risks and uncertainties may include but are not necessarily limited to fluctuations in interest rates, inflation, rapid and/or unanticipated deposit withdrawals, the unavailability of sources of liquidity, additional regulatory requirements that may be imposed on community banks or banks in general, general and industry-specific changes in market conditions, investor reaction to industry developments, government regulations and general economic conditions, and competition within the business areas in which the bank is conducting its operations, including the real estate market in California and other factors beyond the bank's control. Such risks and uncertainties could cause results for subsequent interim periods or for the entire year to differ materially from those indicated. Readers should not place undue reliance on the forward-looking statements, which reflect management's view only as of the date hereof. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances.

MISSION BANCORP
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Dollars in thousands)
															Variance
							June 30, 2024		March 31, 2024		December 31, 2023		June 30, 2023		06/24 - 03/24		06/24 - 06/23
Assets
	Cash and due from banks						$                           47,615		$                           37,978		$                           39,516		$                           56,165		$                 9,637		$                (8,550)
	Interest earning deposits in other banks						130,188		81,010		110,267		62,557		49,178		67,631
		Total cash and cash equivalents					177,803		118,988		149,783		118,722		58,815		59,081
	Interest earning deposits maturing over ninety days						490		490		490		980		-		(490)
	Investment securities available-for-sale, at fair value						234,130		240,382		242,681		252,205		(6,252)		(18,075)
	Loans						1,231,905		1,229,803		1,210,416		1,163,416		2,102		68,489
	Allowance for credit losses						(18,669)		(18,931)		(18,206)		(17,203)		262		(1,466)
	Loans, net						1,213,236		1,210,872		1,192,210		1,146,213		2,364		67,023
	Premises and equipment, net						2,997		3,133		3,175		3,282		(136)		(285)
	Bank owned life insurance						21,588		21,435		21,285		21,006		153		582
	Deferred tax asset, net						15,230		15,501		15,594		15,280		(271)		(50)
	Interest receivable and other assets						28,284		29,320		26,751		21,732		(1,036)		6,552
Total Assets							$                       1,693,758		$                       1,640,121		$                       1,651,969		$                       1,579,420		$                53,637		$              114,338
Liabilities and Shareholders' Equity
	Deposits
		Noninterest-bearing demand					$                         619,278		$                         612,876		$                         645,256		$                         663,396		$                 6,402		$              (44,118)
		Interest bearing					865,448		804,088		791,511		717,952		61,360		147,496
			Total deposits				1,484,726		1,416,964		1,436,767		1,381,348		67,762		103,378
		Other borrowings					-		20,000		20,000		20,000		(20,000)		(20,000)
		Subordinated debentures, net of issuance costs					21,898		21,881		21,863		21,828		17		70
		Interest payable and other liabilities					13,502		16,215		16,625		17,070		(2,713)		(3,568)
Total Liabilities							1,520,126		1,475,060		1,495,255		1,440,246		45,066		79,880
Shareholders' Equity
		Common stock					88,880		77,743		76,965		76,464		11,137		12,416
		Retained earnings					102,738		105,953		98,605		82,847		(3,215)		19,891
		Accumulated other comprehensive loss					(17,986)		(18,635)		(18,856)		(20,137)		649		2,151
			Total shareholders' equity				173,632		165,061		156,714		139,174		8,571		34,458
	Total Liabilities and Shareholders' Equity						$                       1,693,758		$                       1,640,121		$                       1,651,969		$                       1,579,420		$                53,637		$              114,338
SBA Paycheck Protection Program Loans							559		597		645		741		(38)		(182)

 

MISSION BANCORP
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(Dollars in thousands)
						Three Months Ended										Six Months Ended
												Variance								Variance
						June 30, 2024		March 31, 2024		June 30, 2023		06/24 - 03/24		06/24 - 06/23		June 30, 2024		June 30, 2023		06/24 - 06/23
Interest and Dividend Income
	Loans					$                             19,790		$                             19,319		$                             17,428		$                   471		$                 2,362		$                             39,108		$                             33,156		$                 5,952
	Investment securities					2,458		2,584		2,332		(126)		126		5,043		4,519		524
	Other					1,568		1,597		783		(29)		785		3,165		1,770		1,395
		Total interest and dividend income				23,816		23,500		20,543		316		3,273		47,316		39,445		7,871
Interest Expense
	Other deposits					5,244		4,622		2,956		622		2,288		9,866		4,618		5,248
	Time deposits					729		675		55		54		674		1,404		90		1,314
		Total interest expense on deposits				5,973		5,297		3,011		676		2,962		11,270		4,708		6,562
	Other borrowings					80		234		186		(154)		(106)		315		337		(22)
	Subordinated debentures					268		268		268		-		-		535		535		-
		Total interest expense				6,321		5,799		3,465		522		2,856		12,120		5,580		6,540
Net Interest Income						17,495		17,701		17,078		(206)		417		35,196		33,865		1,331
Provision for Credit Losses						-		(675)		(450)		675		450		(675)		(1,000)		325
Net Interest Income After Provision
	for Credit Losses					17,495		17,026		16,628		469		867		34,521		32,865		1,656
Non-Interest Income
	Gain on sale of premises and equipment					-		-		26		-		(26)		-		254		(254)
	Service charges, fees and other income					980		942		967		38		13		1,922		1,940		(18)
	Farmer Mac referral and servicing fees					334		293		237		41		97		626		494		132
	SBA servicing fees and gain on sale of loans					266		375		191		(109)		75		641		267		374
	Loss on sale of securities					(20)		(11)		-		(9)		(20)		(31)		(320)		289
		Total non-interest income				1,560		1,599		1,421		(39)		139		3,158		2,635		523
Non-Interest Expense
	Salaries and benefits					5,385		5,402		4,781		(17)		604		10,787		9,613		1,174
	Professional services					1,336		975		1,214		361		122		2,311		2,273		38
	Occupancy and equipment					588		572		545		16		43		1,160		1,158		2
	Data processing and communication					404		397		354		7		50		801		713		88
	Other					1,300		1,148		1,035		152		265		2,448		1,967		481
		Total non-interest expense				9,013		8,494		7,929		519		1,084		17,507		15,724		1,783
Net Income Before Provision for Income Taxes						10,042		10,131		10,120		(89)		(78)		20,172		19,776		396
Provision for Income Taxes						2,757		2,783		2,438		(26)		319		5,540		5,065		475
Net Income						$                              7,285		$                              7,348		$                              7,682		$                    (63)		$                  (397)		$                             14,632		$                             14,711		$                    (79)

 

MISSION BANCORP
FINANCIAL HIGHLIGHTS
(Unaudited)
(Dollars in thousands, except per share data)
				As of or for the Three Months Ended
				June 30, 2024		March 31, 2024		December 31, 2023		June 30, 2023
Ratio of total loans to total deposits				82.97 %		86.79 %		84.25 %		84.22 %
Return on average assets				1.77 %		1.80 %		1.89 %		1.99 %
Return on average equity				17.35 %		18.36 %		20.87 %		22.69 %
Net interest margin				4.47 %		4.55 %		4.58 %		4.68 %
Efficiency ratio				47.30 %		44.01 %		41.68 %		42.86 %
Non-interest expense as a percent of average assets				2.19 %		2.08 %		1.94 %		2.06 %
Non-interest income as a percent of average assets				0.38 %		0.39 %		0.33 %		0.37 %
Community Bank Leverage Ratio				11.81 %		11.59 %		11.33 %		10.97 %
Weighted average shares outstanding - basic*				2,629,647		2,611,832		2,599,743		2,629,647
Weighted average shares outstanding - diluted*				2,671,703		2,656,774		2,669,704		2,639,744
Shares outstanding at period end - basic*				2,633,312		2,622,649		2,599,531		2,600,110
Earnings per share - basic				$                                2.77		$                                2.81		$                                2.99		$                                2.92
Earnings per share - diluted				$                                2.73		$                                2.77		$                                2.91		$                                2.91
Total assets				$                        1,693,758		$                        1,640,121		$                         1,651,969		$                        1,579,420
Loans and leases net of deferred fees				$                        1,231,905		$                        1,229,803		$                         1,210,416		$                        1,163,416
Noninterest-bearing demand deposits				$                           619,278		$                           612,876		$                           645,256		$                           663,396
Total deposits				$                        1,484,726		$                        1,416,964		$                         1,436,767		$                        1,381,348
Noninterest-bearing deposits as a percentage total deposits				41.71 %		43.25 %		44.91 %		48.03 %
Average total assets				$                        1,655,220		$                        1,645,777		$                         1,633,606		$                        1,545,957
Average total equity				$                           168,845		$                           160,998		$                           147,914		$                           135,776
Shareholders' equity / total assets				10.25 %		10.06 %		9.49 %		8.81 %
Book value per share				$                              65.94		$                              62.94		$                              60.29		$                              53.53
*Outstanding shares adjusted for 5% dividend declared on April 25, 2024.

 

MISSION BANCORP
AVERAGE BALANCES AND RATES
(Unaudited)
(Dollars in thousands)
					For the Quarter Ended				For the Quarter Ended				For the Quarter Ended
					June 30, 2024				March 31, 2024				June 30, 2023
					Average	Income /	Yield /		Average	Income /	Yield /		Average	Income /	Yield /
					Balance	Expense	Rate		Balance	Expense	Rate		Balance	Expense	Rate
Assets
	Interest earning deposits in other banks				$                  103,840	$       1,386	5.37 %		$                  109,357	$       1,442	5.31 %		$                    52,199	$          655	5.04 %
	Investment securities				236,055	2,458	4.19 %		238,677	2,584	4.36 %		256,025	2,332	3.65 %
	Loans				1,223,791	19,790	6.50 %		1,206,486	19,319	6.44 %		1,146,727	17,428	6.10 %
	Other earning assets				9,000	182	8.17 %		8,971	155	6.92 %		8,533	128	6.01 %
		Total Earning Assets			1,572,686	23,816	6.09 %		1,563,491	23,500	6.05 %		1,463,484	20,543	5.63 %
	Non-interest earning assets				82,534				82,286				82,473
		Total Assets			$                1,655,220				$                1,645,777				$                1,545,957
Liabilities and Capital
	Interest-bearing deposits
		Interest-bearing transaction accounts			$                  701,837	$       5,169	2.96 %		$                  684,759	$       4,498	2.64 %		$                  638,970	$       2,932	1.84 %
		Time deposits			76,666	729	3.83 %		73,280	675	3.71 %		26,197	55	0.84 %
		1031 Exchange deposits			47,730	74	0.62 %		44,932	124	1.11 %		30,315	24	0.32 %
			Total interest-bearing deposits		826,233	5,972	2.91 %		802,971	5,297	2.65 %		695,482	3,011	1.74 %
	Borrowed funds
		Other borrowings			6,651	81	4.87 %		20,000	234	4.71 %		15,824	186	4.72 %
		Subordinated debt			21,888	268	4.92 %		21,870	268	4.92 %		21,817	268	4.92 %
			Total interest-bearing liabilities		854,772	6,321	2.97 %		844,841	5,799	2.76 %		733,123	3,465	1.90 %
	Noninterest-bearing deposits				616,242				622,225				661,669
			Total Funding		1,471,014	6,321	1.73 %		1,467,066	5,799	1.59 %		1,394,792	3,465	1.00 %
	Other noninterest-bearing liabilities				15,361				17,713				15,388
		Total Liabilities			1,486,375				1,484,779				1,410,180
		Total Capital			168,845				160,998				135,777
			Total Liabilities and Capital		$                1,655,220				$                1,645,777				$                1,545,957
	Net Interest Margin				4.47 %				4.55 %				4.68 %
	Net Interest Spread				4.36 %				4.46 %				4.63 %

 

MISSION BANCORP
AVERAGE BALANCES AND RATES
(Unaudited)
(Dollars in thousands)
					For the Six Months Ended				For the Six Months Ended
					June 30, 2024				June 30, 2023
					Average	Income /	Yield /		Average	Income /	Yield /
					Balance	Expense	Rate		Balance	Expense	Rate
Assets
	Interest earning deposits in other banks				$                  106,599	$       2,828	5.34 %		$                    66,804	$       1,543	4.66 %
	Investment securities				237,366	5,043	4.27 %		254,772	4,518	3.58 %
	Loans				1,215,138	39,108	6.47 %		1,115,790	33,156	5.99 %
	Other earning assets				8,986	337	7.54 %		7,992	228	5.74 %
		Total Earning Assets			1,568,089	47,316	6.07 %		1,445,358	39,445	5.50 %
	Non-interest earning assets				82,409				83,173
		Total Assets			$                1,650,498				$                1,528,531
Liabilities and Capital
	Interest-bearing deposits
		Interest-bearing transaction accounts			$                  693,298	$       9,668	2.80 %		$                  605,313	$       4,589	1.53 %
		Time deposits			74,973	1,404	3.77 %		25,149	90	0.72 %
		1031 Exchange deposits			46,331	198	0.86 %		31,604	29	0.19 %
			Total interest-bearing deposits		814,602	11,270	2.78 %		662,066	4,708	1.43 %
	Borrowed funds
		Other borrowings			13,325	315	4.75 %		13,657	337	4.97 %
		Subordinated debt			21,879	535	4.92 %		21,808	535	4.95 %
			Total interest-bearing liabilities		849,806	12,120	2.87 %		697,531	5,580	1.61 %
	Noninterest-bearing deposits				619,233				684,269
			Total Funding		1,469,039	12,120	1.66 %		1,381,800	5,580	0.81 %
	Other noninterest-bearing liabilities				16,538				14,836
		Total Liabilities			1,485,577				1,396,636
		Total Capital			164,921				131,895
			Total Liabilities and Capital		$                1,650,498				$                1,528,531
	Net Interest Margin				4.51 %				4.72 %
	Net Interest Spread				4.41 %				4.69 %

 

MISSION BANCORP
LOAN DETAIL
(Unaudited)
(Dollars in thousands)
															Variance
							June 30, 2024		March 31, 2024		December 31, 2023		June 30, 2023		06/24 - 03/24		06/24 - 06/23
	Loans
		Construction and land development					$                   50,664		$                      50,727		$                      49,682		$                      53,393		$                        (63)		$                    (2,729)
		Secured by farmland					132,898		141,391		142,778		138,581		(8,493)		(5,683)
		Residential 1 to 4 units					52,022		49,902		49,299		45,210		2,120		6,812
		Multi-family					34,016		35,857		35,808		34,370		(1,841)		(354)
		Owner occupied commercial real estate					516,043		503,491		493,706		475,269		12,552		40,774
		Non-owner occupied commercial real estate					193,357		188,085		183,047		182,892		5,272		10,465
		Commercial and industrial					159,636		173,185		165,455		155,507		(13,549)		4,129
		Agricultural production					95,702		89,406		92,679		79,470		6,296		16,232
		Other loans					120		165		233		1,176		(45)		(1,056)
		Net Deferred Fees-Costs					(2,553)		(2,406)		(2,271)		(2,451)		(147)		(102)
			Total Loans				$               1,231,905	#	$                 1,229,803		$                 1,210,416		$                 1,163,417		$                     2,102		$                   68,488

 

MISSION BANCORP
Credit Quality
(Unaudited)
(Dollars in thousands)
						June 30, 2024		March 31, 2024		December 31, 2023		June 30, 2023
Asset quality
Loans past due 90 days or more and accruing interest						$                         -		$                            -		$                            -		$                        104
Nonaccrual loans						$                     489		$                        714		$                        350		$                            -
Restructured loans
	Nonperforming restructured loans					$                         -		$                            -		$                            -		$                            -
	Performing restructured loans					$                         -		$                            -		$                            -		$                            -
Other real estate owned						$                         -		$                            -		$                            -		$                            -
Total nonperforming assets						$                     489		$                        714		$                        350		$                            -
Allowance for credit losses to total loans						1.52 %		1.54 %		1.50 %		1.48 %
Allowance for credit losses to nonperforming loans						3817.79 %		2651.40 %		5201.71 %		N/A
Nonaccrual loans to total loans						0.04 %		0.06 %		0.03 %		0.00 %
Nonperforming assets to total assets						0.03 %		0.04 %		0.02 %		0.00 %

 

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SOURCE Mission Bank

FAQ

What was Mission Bancorp's (MSBC) net income for Q2 2024?

Mission Bancorp (MSBC) reported net income of $7.3 million, or $2.73 per diluted share, for Q2 2024.

How much did Mission Bancorp's (MSBC) total deposits grow in Q2 2024?

Mission Bancorp's (MSBC) total deposits increased by $103.4 million, or 7.5%, to $1.48 billion as of June 30, 2024, compared to the same period last year.

What was Mission Bancorp's (MSBC) net interest margin in Q2 2024?

Mission Bancorp's (MSBC) net interest margin was 4.47% for Q2 2024, down from 4.68% in Q2 2023.

How did Mission Bancorp's (MSBC) loan portfolio perform in Q2 2024?

Mission Bancorp's (MSBC) gross loans increased by $68.5 million, or 5.9%, to $1.23 billion as of June 30, 2024, compared to the same period last year.

What was Mission Bancorp's (MSBC) Community Bank Leverage Ratio as of June 30, 2024?

Mission Bancorp's (MSBC) Community Bank Leverage Ratio was 11.81% as of June 30, 2024, well above the 9.00% requirement to be considered 'well capitalized'.