Mission Bancorp Reports Third Quarter Earnings of $7.8 Million. Annualized Deposit Growth of 33%.

Rhea-AI Summary

Mission Bancorp (OTC Pink: MSBC) reported Q3 2024 net income of $7.8 million, or $2.93 per diluted share, compared to $8.0 million in Q3 2023 and $7.3 million in Q2 2024. Key highlights include:

- Gross loans increased 7.3% YoY to $1.24 billion

- Total deposits grew 14.4% YoY to $1.61 billion, with 33% annualized growth in Q3

- Net interest income was $18.2 million, with a 4.31% net interest margin

- Non-interest income increased 71.3% YoY to $2.5 million

- Credit quality remains strong with nonaccrual loans at 0.03% of total gross loans

- The Bank's Community Bank Leverage Ratio was 11.41%

Mission Bancorp continues to show strong deposit growth and stable earnings despite the challenging rate environment.

Positive

• Total deposits increased by 14.4% YoY to $1.61 billion, with 33% annualized growth in Q3
• Gross loans grew by 7.3% YoY to $1.24 billion
• Non-interest income increased 71.3% YoY to $2.5 million
• Net interest income rose to $18.2 million, up 1.6% YoY
• Credit quality remains strong with nonaccrual loans at only 0.03% of total gross loans
• The Bank's Community Bank Leverage Ratio improved to 11.41% from 11.05% YoY

Negative

• Net income decreased slightly by 1.6% YoY to $7.8 million
• Net interest margin declined to 4.31% from 4.67% YoY
• Cost of funds increased to 1.93%, up 72 basis points YoY
• Non-interest expense increased by 16.5% YoY to $9.2 million
• Operating efficiency ratio increased to 44.7% from 40.9% YoY

BAKERSFIELD, Calif., Oct. 21, 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 $7.8 million, or $2.93 per diluted common share, for the third quarter of 2024, compared to net income available to common shareholders of $8.0 million, or $3.01 per diluted common share, for the third quarter of 2023, and net income available to common shareholders of $7.3 million, or $2.73 per diluted common share, for the linked quarter.

"In a time when many of our competitors face shrinking deposit balances and limited growth, the team at Mission Bank is countering the industry trend. On the deposit side we have seen double digit annualized growth for the past two periods, including 33% annualized growth in the 3rd quarter, despite the challenging rate environment.  With change predicted for the future, it is our goal to maintain our positive trajectory and we will do that by nurturing the strong client relationships that have helped us reach these impressive heights." said AJ Antongiovanni, President, and Chief Executive Officer of Mission Bancorp. "We are reporting strong earnings of $7.8 million, an increase of $0.6 million sequentially. These figures are the result of the hard work and determination of our entire team, including our SBA division who has already achieved a record setting year, boosting non-interest income, and supporting our Q3 earnings growth." 

Third Quarter 2024 Financial Highlights

• Gross loans increased by $84.5 million, or 7.3%, to $1.24 billion as of September 30, 2024, compared to $1.16 billion at September 30, 2023, and increased by 1.0%, or $12.9 million, compared to June 30, 2024, balances.
• Total deposits increased by $202.1 million, or 14.4%, to $1.61 billion as of September 30, 2024, compared with $1.41 billion a year earlier, and increased by $123.1 million, or 8.3%, from $1.48 billion as of June 30, 2024. Noninterest-bearing deposits were $627.4 million and represent 39.0% of total deposits at September 30, 2024.
• The allowance for credit losses ("ACL") as a percentage of gross loans was 1.53% as of September 30, 2024, unchanged compared to September 30, 2023.
• Credit quality remains strong with nonaccrual loans representing 0.03% of total gross loans at September 30, 2024, up from 0.00% as of September 30, 2023.
• The Community Bank Leverage Ratio for the Bank as of September 30, 2024, was 11.41%, compared to 11.05% at September 30, 2023.

Net Income Available to Common Shareholders

Net income available to common shareholders for the third quarter of 2024 was $7.8 million, or $2.93 per diluted common share, compared with $7.3 million, or $2.73 per diluted common share, for the linked quarter ended June 30, 2024. Net income available to common shareholders was $8.0 million, or $3.01 per diluted common share, for the third quarter of 2024. Net income available to common shareholders increased $0.6 million, or 7.7%, compared to the linked quarter, and decreased $0.1 million, or 1.6%, compared to the same prior year period.

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

Net Interest Income

Net interest income was $18.2 million, or 4.31%, of average earning assets ("net interest margin"), for the third quarter of 2024, compared with $17.9 million, or a net interest margin of 4.67%, for the same period a year earlier, and $17.5 million, or a net interest margin of 4.47%, for the quarter ended June 30, 2024.

Net interest income increased by $0.3 million, or 1.6%, compared to the same prior year period, primarily driven by growth in the Company's loan portfolio and interest-earning deposits in other banks, coupled with an increase in yields on earning assets. Loan interest income and fee accretion increased by $2.2 million compared to the third quarter of 2023. Additionally, the Company also experienced increased interest income from interest earning deposits in other banks of $1.2 million. Offsetting these increases, interest expense for the current quarter increased $3.2 million, compared to the same prior year period, primarily due to increased balances and costs of interest-bearing deposits, net of decreased costs associated with other borrowings.

Net interest income increased for the quarter ended September 30, 2024, compared to the linked quarter by $0.7 million, or 4.0%, due primarily to an increase in interest income on earning assets which were partially offset by an increase in interest expense on deposits. Interest income increased $2.0 million, for the current quarter, compared to the linked quarter, primarily due to average balance growth on interest earning deposits in other banks and loans. Interest expense on deposits increased $1.4 million, for the current quarter, compared to the linked quarter, due to higher average balances and increased costs on interest bearing deposits. Interest on other borrowings decreased by $0.1 million during the current quarter due to the maturity of a one-year term borrowing facility.

The net interest margin was 4.31% for the quarter ended September 30, 2024, compared to 4.67% for the same prior year period, and 4.47% for the linked quarter ended June 30, 2024. During the past year, asset yields have increased 29 basis points, but the cost of funds has risen 72 basis points, contributing to the 36 basis point decline in the quarterly net interest margin. Additionally, average interest-bearing liabilities have grown $172.5 million, outpacing the growth in average interest-earning assets of $158.5 million, when compared to the same prior year period.

The 16 basis point decrease in the net interest margin for the third quarter of 2024, compared to the linked quarter, is primarily attributable to the 19 basis point increase in the Company's cost of interest-bearing liabilities, outpacing the 2 basis point rise on earning asset yields, which led to net interest margin compression during the quarter. Compared to the linked quarter, the average balances of interest-bearing liabilities increased 11.9%, outpacing the growth in interest-earning assets of 6.8%.

The yield on loans, interest earning deposits in other banks, and investment securities, have increased by 29 basis points to 6.55%, 15 basis points to 5.45%, and 31 basis points to 4.32%, respectively, compared to the same prior year period. Additionally, average balances on loans increased $86.0 million, or 7.42%, average balances on interest earning deposits in other banks increased $85.9 million, or 80.7%, and average balances on investment securities declined $13.6 million, or 5.48%, compared to the same prior year period. The cost of interest-bearing deposits increased 103 basis points to 3.12%, while the average balances of interest-bearing deposits increased $192.4 million, compared to the same period last year.

The yield on loans, interest earning deposits in other banks, and investment securities, increased by 5 basis points to 6.55%, 8 basis points to 5.45%, and 13 basis points to 4.32%, respectively, for the quarter ended September 30, 2024, compared to the linked quarter. Additionally, average balances on loans increased $20.8 million, or 1.7%, average balances on interest earning deposits in other banks increased $88.5 million, or 85.2%, and average balances on investment securities declined $2.0 million, or 0.8%, compared to the linked quarter. The cost of interest-bearing deposits increased 21 basis points to 3.12%, while the average balances on interest-bearing deposits increased $108.5 million, compared to the linked quarter.

The cost of funds was 1.93% for the quarter ended September 30, 2024, an increase of 72 basis points compared to 1.21%, for the same prior year period, and an increase of 20 basis points compared to 1.73%, for the linked quarter ended June 30, 2024. The increase in the Company's cost of funds is attributable to the higher short term 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 the proportion of operating account balances versus interest-bearing balances, leading to a decline in the percentage of non-interest-bearing deposits of total deposits and increase the cost of deposits. However, 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 June 30, 2024, Mission's cost of funds for the second quarter of 2024, was 54 basis points lower than the 2.27% peer average.

For the nine months ended September 30, 2024, the Company's net interest income increased $1.6 million to $53.4 million, while the net interest margin decreased 27 basis points to 4.44%, compared to net interest income of $51.8 million and net interest margin of 4.71%, for the nine months ended September 30, 2023. The decline in net interest margin is the result of a 113 basis point increase in the cost of total interest-bearing liabilities and $159.0 million growth in average interest-bearing liability balances, which outpaced the 47 basis point increase in earning asset yields and the $134.6 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 on a portion of its fixed rate loan and investment securities portfolios. For the current quarter ending on September 30, 2024, the linked quarter and the third quarter of 2023, the interest rate swap contract associated with the loan portfolio generated an additional $0.1 million in interest income. For the current quarter ending on September 30, 2024, the linked quarter and the third quarter of 2023, the interest rate swap contract associated with the investment securities portfolio generated an additional $0.2 million in interest income. 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 September 30, 2024, compared to $0.3 million total additional interest income and 7 basis points of additional earning asset yield for the same prior year period.

Provision for Credit Losses

A $0.4 million provision for credit losses was recorded for the quarter ended September 30, 2024, compared to no provision for the linked quarter, and $0.2 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 increased $0.9 million, or 57.8%, to $2.5 million for the quarter ended September 30, 2024, compared to $1.6 million in the linked quarter, and increased by $1.0 million, or 71.3%, compared to $1.4 million for the same period a year earlier. Notable variances when compared to the linked quarter were increases in SBA servicing fees and gain on sale of loans and service charges, fees, and other income. The increase in non-interest income when compared to the same prior year period was primarily due to increases in SBA servicing fees and gain on sale of loans.

Non-Interest Expense

Non-interest expense increased by $0.2 million, or 2.4%, to $9.2 million for the quarter ended September 30, 2024, compared to $9.0 million for the linked quarter, and increased by $1.3 million, or 16.5%, compared to $7.9 million for the quarter ended September 30, 2023.

The increase in non-interest expense for the third quarter of 2024 compared to the linked quarter was primarily due to a $0.2 million increase in professional services expense.

The increase in non-interest expense for the third quarter of 2024 compared to the third quarter of 2023 was primarily due to a $0.8 million increase in salaries and benefits expense attributable to new hires, net of terminations, increased base compensation, and increased incentive compensation accruals, a $0.3 million increase in professional services expense, and a $0.2 million increase in other expenses.

Operating Efficiency

The Company's operating efficiency ratio increased to 44.7% for the third quarter of 2024, compared to 40.9% for the third quarter of 2023, and decreased from 47.3% compared to the linked quarter. Total non-interest expense as a percentage of average assets, another measure of the Company's efficiency, was 2.08% for the third quarter of 2024, compared to 1.95% for the third quarter of 2023, and 2.19% for the quarter ended June 30, 2024.

Income Taxes

Income tax expense was $3.2 million for the third quarter of 2024, compared to $3.3 million for the quarter ended September 30, 2023, and $2.8 million for the linked quarter ended June 30, 2024. The Company's effective tax rate for the third quarter of 2024 was 28.9%, compared to 29.1% for the same period a year ago, and 27.5% for the quarter ended June 30, 2024. 

Asset and Equity Returns

The return on average equity for the third quarter of 2024 was 17.4%, down from 22.1% for the same prior year period, and relatively unchanged when compared to the linked quarter. The quarterly return on average assets for the third quarter of 2024 was 1.77%, down from 1.97% for the same prior year period, and unchanged when compared to the linked quarter.

The decline in the quarterly returns on both average equity and average assets for the quarter ended September 30, 2024, compared to the third quarter of 2023, is primarily attributable to the 25.2% growth in average equity and the 9.61% growth in average assets, coupled with a 1.64% decline in quarterly net income.

The return on average equity and the return on average assets for the third quarter of 2024 was consistent with the linked quarter, as net income growth marginally outpaced the growth in quarterly average equity and quarterly average assets. Net income increased 7.69% compared to the linked quarter, while average equity and average asset growth were 6.05% and 6.54%, respectively.

Balance Sheet

Total assets increased by $215.6 million, or 13.4%, to $1.83 billion at September 30, 2024, compared to September 30, 2023, and increased by $137.0 million, or 8.1%, compared to June 30, 2024. Cash and cash equivalents increased by $138.1 million, or 82.6%, to $305.3 million at September 30, 2024, compared to the same prior year period, and increased by $127.4 million, or 71.7%, compared to June 30, 2024. The significant increase in the Company's cash position over the last year is primarily the result of deposit growth, net of the Federal Reserve Bank borrowing facility repayment upon maturity, and earnings, which outpaced loan portfolio growth. The increase in the Company's cash position over the past quarter is primarily due to robust deposit growth, which outpaced loan portfolio growth for the quarter.

Investment securities decreased by $3.9 million or 1.7%, to $234.1 million at September 30, 2024, compared to $238.1 million at September 30, 2023, and were relatively unchanged compared to June 30, 2024. The decrease in the investment securities portfolio over the past year is attributable to repayments and amortization of the bond portfolio, net of decreased unrealized losses on the investment securities portfolio attributable to market rate changes during the last year.

Loans increased by $84.5 million, or 7.3%, to $1.24 billion at September 30, 2024, compared to September 30, 2023, and increased by $12.9 million, or 1.0%, compared to June 30, 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, construction and land development, and agricultural production segments of the loan portfolio, which were partially offset by the contraction in loans secured by farmland. Loan growth during the last quarter has been concentrated in owner occupied commercial real estate, multi-family, and construction and land development segments of the loan portfolio, which were partially offset by decreases in agricultural production loans and non-owner occupied commercial real estate loans.

Total deposits increased by $202.1 million, or 14.4%, to $1.61 billion as of September 30, 2024, from $1.41 billion as of September 30, 2023, and increased by $123.1 million, or 8.3%, from $1.48 billion at June 30, 2024. Noninterest-bearing deposits decreased by $28.1 million, or 4.3%, during the last year, and increased by $8.1 million, or 1.3%, since June 30, 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 39.0% of total deposits on September 30, 2024.

Total shareholders' equity was $184.8 million at September 30, 2024, an increase of $40.1 million, or 27.7%, compared to September 30, 2023, and an increase of $11.2 million, or 8.1%, compared to June 30, 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 $3.0 million during the past quarter due to a $4.3 million decrease in the accumulated other comprehensive loss on the investment securities portfolio, partially offset by a $1.3 million increase in the accumulated other comprehensive loss 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 $7.9 million during the past year resulting from a $9.7 million decrease in the accumulated other comprehensive loss on the investment securities portfolio, partially offset by a $1.8 million increase in the accumulated other comprehensive loss associated with the interest rate swap contract. The decline in accumulated other comprehensive loss is the result of an increase in the fair market value of our securities portfolio attributable to the decline in interest rates and not related to credit quality.

Nonperforming assets were $0.4 million at September 30, 2024, down from $0.5 million at June 30, 2024, and up from $0 at September 30, 2023. Nonperforming assets as a percentage of total assets were 0.02% at September 30, 2024, down from 0.03% at June 30, 2024, and up from 0.00% at September 30, 2023. Non-accrual loans currently recorded have 100% of their balances individually reserved for with allowances for credit losses.

Allowance for Credit Losses

The allowance for credit losses ("ACL") as a percentage of gross loans increased to 1.53% at September 30, 2024, from 1.52% at June 30, 2024, and was unchanged from September 30, 2023. The relatively unchanged ACL as a percentage of gross loans over the last twelve months reflects the credit quality strength of the loan portfolio and prudent management amid ongoing economic uncertainties stemming from sustain inflationary pressures and elevated 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 11.41%, at September 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 36 basis points from 11.05%, and decreased by 40 basis points from 11.81%, as of the periods ended September 30, 2023, and June 30, 2024, respectively. Strong earnings over the past year outpaced the growth in average assets, resulting in an increase in regulatory capital ratios; while earnings have remained strong during the current quarter, the growth in average assets, coupled with dividends paid to the Company during 2024, have resulted in a decrease in regulatory capital ratios compared to the linked quarter.

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.

During the third quarter of 2024 the Company repurchased 1,615 shares under the 2022 10b5-1 Plan at an average price of $86.39. Since Plan inception the Company has repurchased 5,681 shares at an average price of $83.69.

About Mission Bancorp and Mission Bank

With $1.8 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
							September 30, 2024		June 30, 2024		December 31, 2023		September 30, 2023		09/24 - 06/24		09/24 - 09/23
Assets
	Cash and due from banks						$                            52,843		$                             47,615		$                            39,516		$                            55,534		$                  5,228		$                 (2,691)
	Interest earning deposits in other banks						252,409		130,188		110,267		111,662		122,221		140,747
		Total cash and cash equivalents					305,252		177,803		149,783		167,196		127,449		138,056
	Interest earning deposits maturing over ninety days						490		490		490		490		-		-
	Investment securities available-for-sale, at fair value						234,146		234,130		242,681		238,090		16		(3,944)
	Loans						1,244,803		1,231,905		1,210,416		1,160,351		12,898		84,452
	Allowance for credit losses						(19,022)		(18,669)		(18,206)		(17,804)		(353)		(1,218)
	Loans, net						1,225,781		1,213,236		1,192,210		1,142,547		12,545		83,234
	Premises and equipment, net						2,873		2,997		3,175		3,246		(124)		(373)
	Bank owned life insurance						21,743		21,588		21,285		21,139		155		604
	Deferred tax asset, net						13,909		15,230		15,594		16,543		(1,321)		(2,634)
	Interest receivable and other assets						26,566		28,284		26,751		25,862		(1,718)		704
Total Assets							$                        1,830,760		$                        1,693,758		$                        1,651,969		$                        1,615,113		$               137,002		$               215,647
Liabilities and Shareholders' Equity
	Deposits
		Noninterest-bearing demand					$                          627,404		$                           619,278		$                          645,256		$                          655,459		$                  8,126		$               (28,055)
		Interest bearing					980,406		865,448		791,511		750,260		114,958		230,146
			Total deposits				1,607,810		1,484,726		1,436,767		1,405,719		123,084		202,091
		Other borrowings					-		-		20,000		20,000		-		(20,000)
		Subordinated debentures, net of issuance costs					21,916		21,898		21,863		21,845		18		71
		Interest payable and other liabilities					16,249		13,502		16,625		22,883		2,747		(6,634)
Total Liabilities							1,645,975		1,520,126		1,495,255		1,470,447		125,849		175,528
Shareholders' Equity
		Common stock					89,182		88,880		76,965		76,738		302		12,444
		Retained earnings					110,583		102,738		98,605		90,823		7,845		19,760
		Accumulated other comprehensive loss					(14,980)		(17,986)		(18,856)		(22,895)		3,006		7,915
			Total shareholders' equity				184,785		173,632		156,714		144,666		11,153		40,119
	Total Liabilities and Shareholders' Equity						$                        1,830,760		$                        1,693,758		$                        1,651,969		$                        1,615,113		$               137,002		$               215,647
SBA Paycheck Protection Program Loans							501		559		645		693		(58)		(192)

 

MISSION BANCORP
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(Dollars in thousands)
						Three Months Ended										For the Nine Months Ended
												Variance								Variance
						September 30, 2024		June 30, 2024		September 30, 2023		09/24 - 06/24		09/24 - 09/23		September 30, 2024		September 30, 2023		09/24 - 09/23
Interest and Dividend Income
	Loans					$                              20,479		$                              19,790		$                              18,273		$                     689		$                  2,206		$                              59,587		$                              51,429		$                  8,158
	Investment securities					2,541		2,458		2,503		83		38		7,584		7,022		562
	Other					2,780		1,568		1,547		1,212		1,233		5,945		3,318		2,627
		Total interest and dividend income				25,800		23,816		22,323		1,984		3,477		73,116		61,769		11,347
Interest Expense
	Other deposits					6,395		5,244		3,615		1,151		2,780		16,260		8,233		8,027
	Time deposits					938		729		296		209		642		2,343		386		1,957
		Total interest expense on deposits				7,333		5,973		3,911		1,360		3,422		18,603		8,619		9,984
	Other borrowings					-		80		237		(80)		(237)		315		574		(259)
	Subordinated debentures					268		268		268		-		-		803		803		-
		Total interest expense				7,601		6,321		4,416		1,280		3,185		19,721		9,996		9,725
Net Interest Income						18,199		17,495		17,907		704		292		53,395		51,773		1,622
Provision for Credit Losses						(394)		-		(170)		(394)		(224)		(1,069)		(1,170)		101
Net Interest Income After Provision
	for Credit Losses					17,805		17,495		17,737		310		68		52,326		50,603		1,723
Non-Interest Income
	Gain on sale of premises and equipment					-		-		26		-		(26)		-		281		(281)
	Service charges, fees and other income					1,084		980		1,016		104		68		3,006		2,955		51
	Farmer Mac referral and servicing fees					345		334		280		11		65		971		774		197
	SBA servicing fees and gain on sale of loans					1,032		266		115		766		917		1,673		382		1,291
	Loss on sale of securities					-		(20)		-		20		-		(31)		(320)		289
		Total non-interest income				2,461		1,560		1,437		901		1,024		5,619		4,072		1,547
Non-Interest Expense
	Salaries and benefits					5,402		5,385		4,608		17		794		16,189		14,221		1,968
	Professional services					1,555		1,336		1,296		219		259		3,866		3,568		298
	Occupancy and equipment					589		588		604		1		(15)		1,750		1,762		(12)
	Data processing and communication					418		404		366		14		52		1,219		1,079		140
	Other					1,263		1,300		1,043		(37)		220		3,710		3,012		698
		Total non-interest expense				9,227		9,013		7,917		214		1,310		26,734		23,642		3,092
Net Income Before Provision for Income Taxes						11,039		10,042		11,257		997		(218)		31,211		31,033		178
Provision for Income Taxes						3,194		2,757		3,281		437		(87)		8,734		8,346		388
Net Income						$                                7,845		$                                7,285		$                                7,976		$                     560		$                    (131)		$                              22,477		$                              22,687		$                    (210)

 

MISSION BANCORP
FINANCIAL HIGHLIGHTS
(Unaudited)
(Dollars in thousands, except per share data)
				As of or for the Three Months Ended								For the Nine Months Ended
				September 30, 2024		June 30, 2024		December 31, 2023		September 30, 2023		September 30, 2024		September 30, 2023
Ratio of total loans to total deposits				77.42 %		82.97 %		84.25 %		82.54 %		77.42 %		82.54 %
Return on average assets				1.77 %		1.77 %		1.89 %		1.97 %		1.78 %		1.95 %
Return on average equity				17.43 %		17.35 %		20.87 %		22.12 %		17.70 %		22.36 %
Net interest margin				4.31 %		4.47 %		4.58 %		4.67 %		4.44 %		4.71 %
Efficiency ratio				44.66 %		47.30 %		41.68 %		40.93 %		45.30 %		42.34 %
Non-interest expense as a percent of average assets				2.08 %		2.19 %		1.94 %		1.95 %		2.12 %		2.03 %
Non-interest income as a percent of average assets				0.56 %		0.38 %		0.33 %		0.35 %		0.44 %		0.35 %
Community Bank Leverage Ratio				11.41 %		11.81 %		11.33 %		11.05 %		11.41 %		11.05 %
Weighted average shares outstanding - basic*				2,633,827		2,629,647		2,599,743		2,600,092		2,624,939		2,582,491
Weighted average shares outstanding - diluted*				2,678,045		2,671,703		2,669,704		2,646,221		2,668,914		2,633,539
Shares outstanding at period end - basic*				2,633,627		2,633,312		2,599,531		2,600,123		2,633,627		2,600,123
Earnings per share - basic				$                                  2.98		$                                  2.77		$                                  2.99		$                                  3.07		$                                  8.56		$                                  8.78
Earnings per share - diluted				$                                  2.93		$                                  2.73		$                                  2.91		$                                  3.01		$                                  8.42		$                                  8.61
Total assets				$                         1,830,760		$                         1,693,758		$                         1,651,969		$                         1,615,113		$                         1,830,760		$                          1,615,113
Loans and leases net of deferred fees				$                         1,244,803		$                         1,231,905		$                         1,210,416		$                         1,160,351		$                         1,244,803		$                          1,160,351
Noninterest-bearing demand deposits				$                            627,404		$                            619,278		$                            645,256		$                            655,459		$                            627,404		$                             655,459
Total deposits				$                         1,607,810		$                         1,484,726		$                         1,436,767		$                         1,405,719		$                         1,607,810		$                          1,405,719
Noninterest-bearing deposits as a percentage total deposits				39.02 %		41.71 %		44.91 %		46.63 %		39.02 %		46.63 %
Average total assets				$                         1,763,476		$                         1,655,220		$                         1,633,606		$                         1,608,872		$                         1,688,433		$                          1,555,606
Average total equity				$                            179,068		$                            168,845		$                            147,914		$                            143,026		$                            169,671		$                             135,646
Shareholders' equity / total assets				10.09 %		10.25 %		9.49 %		8.96 %		10.09 %		8.96 %
Book value per share				$                                70.16		$                                65.94		$                                60.29		$                                55.64		$                                70.16		$                                55.64
*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
					September 30, 2024				June 30, 2024				September 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				$                   192,320	$        2,634	5.45 %		$                   103,840	$        1,386	5.37 %		$                   106,432	$        1,418	5.30 %
	Investment securities				234,076	2,541	4.32 %		236,055	2,458	4.19 %		247,655	2,503	4.01 %
	Loans				1,244,631	20,479	6.55 %		1,223,791	19,790	6.50 %		1,158,638	18,273	6.26 %
	Other earning assets				9,003	146	6.48 %		9,000	182	8.17 %		8,843	129	5.77 %
		Total Earning Assets			1,680,030	25,800	6.11 %		1,572,686	23,816	6.09 %		1,521,568	22,323	5.82 %
	Non-interest earning assets				83,446				82,534				87,304
		Total Assets			$                 1,763,476				$                 1,655,220				$                 1,608,872
Liabilities and Capital
	Interest-bearing deposits
		Interest-bearing transaction accounts			$                   791,777	$        6,221	3.13 %		$                   701,837	$        5,169	2.96 %		$                   670,458	$        3,590	2.12 %
		Time deposits			89,877	938	4.15 %		76,666	729	3.83 %		44,157	296	2.66 %
		1031 Exchange deposits			53,047	174	1.30 %		47,730	74	0.62 %		27,650	25	0.36 %
			Total interest-bearing deposits		934,701	7,333	3.12 %		826,233	5,972	2.91 %		742,265	3,911	2.09 %
	Borrowed funds
		Other borrowings			-	-	0.00 %		6,651	81	4.87 %		20,000	237	4.70 %
		Subordinated debt			21,905	268	4.86 %		21,888	268	4.92 %		21,835	268	4.86 %
			Total interest-bearing liabilities		956,606	7,601	3.16 %		854,772	6,321	2.97 %		784,100	4,416	2.23 %
	Noninterest-bearing deposits				612,272				616,242				662,222
			Total Funding		1,568,878	7,601	1.93 %		1,471,014	6,321	1.73 %		1,446,322	4,416	1.21 %
	Other noninterest-bearing liabilities				15,530				15,361				19,524
		Total Liabilities			1,584,408				1,486,375				1,465,846
		Total Capital			179,068				168,845				143,026
			Total Liabilities and Capital		$                 1,763,476				$                 1,655,220				$                 1,608,872
	Net Interest Margin				4.31 %				4.47 %				4.67 %
	Net Interest Spread				4.18 %				4.36 %				4.61 %

 

MISSION BANCORP
AVERAGE BALANCES AND RATES
(Unaudited)
(Dollars in thousands)
					For the Nine Months Ended				For the Nine Months Ended
					September 30, 2024				September 30, 2023
					Average	Income /	Yield /		Average	Income /	Yield /
					Balance	Expense	Rate		Balance	Expense	Rate
Assets
	Interest earning deposits in other banks				$                   135,381	$        5,462	5.39 %		$                     80,159	$        2,962	4.94 %
	Investment securities				236,261	7,584	4.29 %		252,373	7,022	3.72 %
	Loans				1,225,041	59,587	6.50 %		1,130,230	51,429	6.08 %
	Other earning assets				8,991	483	7.19 %		8,279	356	5.75 %
		Total Earning Assets			1,605,674	73,116	6.08 %		1,471,041	61,769	5.61 %
	Non-interest earning assets				82,759				84,565
		Total Assets			$                 1,688,433				$                 1,555,606
Liabilities and Capital
	Interest-bearing deposits
		Interest-bearing transaction accounts			$                   726,364	$      15,888	2.92 %		$                   627,266	$        8,179	1.74 %
		Time deposits			79,977	2,343	3.91 %		31,554	386	1.63 %
		1031 Exchange deposits			48,586	372	1.02 %		30,272	54	0.24 %
			Total interest-bearing deposits		854,927	18,603	2.91 %		689,092	8,619	1.67 %
	Borrowed funds
		Other borrowings			8,851	315	4.75 %		15,795	574	4.86 %
		Subordinated debt			21,888	803	4.90 %		21,817	803	4.92 %
			Total interest-bearing liabilities		885,666	19,721	2.97 %		726,704	9,996	1.84 %
	Noninterest-bearing deposits				616,896				676,839
			Total Funding		1,502,562	19,721	1.75 %		1,403,543	9,996	0.95 %
	Other noninterest-bearing liabilities				16,200				16,417
		Total Liabilities			1,518,762				1,419,960
		Total Capital			169,671				135,646
			Total Liabilities and Capital		$                 1,688,433				$                 1,555,606
	Net Interest Margin				4.44 %				4.71 %
	Net Interest Spread				4.33 %				4.66 %

 

LOAN DETAIL
(Unaudited)
(Dollars in thousands)
															Variance
							September 30, 2024		June 30, 2024		December 31, 2023		September 30, 2023		09/24 - 06/24		09/24 - 09/23
	Loans
		Construction and land development					$                    56,554		$                       50,664		$                       49,682		$                       41,970		$                      5,890		$                    14,584
		Secured by farmland					133,597		132,898		142,778		140,040		699		(6,443)
		Residential 1 to 4 units					51,834		52,022		49,299		48,625		(188)		3,209
		Multi-family					40,770		34,016		35,808		36,084		6,754		4,686
		Owner occupied commercial real estate					524,860		516,043		493,706		484,497		8,817		40,363
		Non-owner occupied commercial real estate					190,642		193,357		183,047		175,520		(2,715)		15,122
		Commercial and industrial					160,887		159,636		165,455		159,993		1,251		894
		Agricultural production					88,060		95,702		92,679		75,620		(7,642)		12,440
		Other loans					129		120		233		262		9		(133)
		Net Deferred Fees-Costs					(2,530)		(2,553)		(2,271)		(2,260)		23		(270)
		Total Loans					$                1,244,803		$                  1,231,905		$                  1,210,416		$                  1,160,351		$                    12,898		$                    84,452

 

MISSION BANCORP
Credit Quality
(Unaudited)
(Dollars in thousands)
						September 30, 2024		June 30, 2024		December 31, 2023		September 30, 2023
Asset quality
Loans past due 90 days or more and accruing interest						$                           -		$                              -		$                             -		$                             -
Nonaccrual loans						$                      399		$                         489		$                        350		$                             -
Restructured loans
	Nonperforming restructured loans					$                           -		$                              -		$                             -		$                             -
	Performing restructured loans					$                           -		$                              -		$                             -		$                             -
Other real estate owned						$                           -		$                              -		$                             -		$                             -
Total nonperforming assets						$                      399		$                         489		$                        350		$                             -
Allowance for credit losses to total loans						1.53 %		1.52 %		1.50 %		1.53 %
Allowance for credit losses to nonperforming loans						4767.42 %		3817.79 %		5201.71 %		N/A
Nonaccrual loans to total loans						0.03 %		0.04 %		0.03 %		0.00 %
Nonperforming assets to total assets						0.02 %		0.03 %		0.02 %		0.00 %

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/mission-bancorp-reports-third-quarter-earnings-of-7-8-million-annualized-deposit-growth-of-33-302282275.html

SOURCE Mission Bank

FAQ

What was Mission Bancorp's (MSBC) net income for Q3 2024?

Mission Bancorp reported net income of $7.8 million, or $2.93 per diluted share, for the third quarter of 2024.

How much did Mission Bancorp's (MSBC) total deposits grow in Q3 2024?

Total deposits increased by 14.4% year-over-year to $1.61 billion, with a 33% annualized growth rate in the third quarter of 2024.

What was Mission Bancorp's (MSBC) net interest margin in Q3 2024?

Mission Bancorp's net interest margin was 4.31% for the third quarter of 2024.

How did Mission Bancorp's (MSBC) loan portfolio perform in Q3 2024?

Gross loans increased by 7.3% year-over-year to $1.24 billion as of September 30, 2024.

What was Mission Bancorp's (MSBC) credit quality status in Q3 2024?

Credit quality remained strong with nonaccrual loans representing only 0.03% of total gross loans as of September 30, 2024.