Mission Bancorp Surpasses $2.0 Billion in Total Assets, Second Quarter Earnings of $8.2 Million and Annual Loan and Deposit Growth of 12.9% and 7.6%.

Q: How did Mission Bancorp’s loans and deposits grow in the year to Q2 2026 (MSBC)?

Mission Bancorp’s gross loans grew 12.9% year-over-year to $1.53 billion , while total deposits increased 7.6% to $1.75 billion . According to Mission Bancorp, non-interest-bearing deposits rose 9.4% and represented 39.7% of total deposits at June 30, 2026.

Q: What was Mission Bancorp’s net interest margin in Q2 2026 and how did it change (MSBC)?

Mission Bancorp reported a Q2 2026 net interest margin of 4.35% . According to Mission Bancorp, this was 28 basis points higher than the 4.07% margin a year earlier, but 4 basis points lower than the 4.39% margin recorded in the first quarter of 2026.

Q: What are Mission Bancorp’s Q2 2026 profitability ratios, including ROA and ROE (MSBC)?

Mission Bancorp’s Q2 2026 return on average assets was 1.67% and return on average equity was 14.1% . According to Mission Bancorp, both ratios increased versus the prior year period, primarily due to higher quarterly net income and the absence of prior one-time expenses.

Q: How strong is Mission Bancorp’s credit quality as of Q2 2026 (MSBC)?

Mission Bancorp reported nonaccrual loans at 0.02% of total gross loans as of June 30, 2026. According to Mission Bancorp, the allowance for credit losses was 1.37% of gross loans, and quarterly provisions mainly reflected loan growth and macroeconomic assumptions rather than deteriorating portfolio performance.

Q: What was Mission Bancorp’s efficiency ratio and cost management in Q2 2026 (MSBC)?

Mission Bancorp’s Q2 2026 operating efficiency ratio was 44.8% , significantly better than 73.8% a year earlier. According to Mission Bancorp, total non-interest expense fell 32.6% year-over-year to $9.9 million, largely due to the absence of prior one-time, non-recurring items.

Q: Did Mission Bancorp surpass $2 billion in assets in Q2 2026, and what drove it (MSBC)?

Mission Bancorp’s total assets reached $2.01 billion as of June 30, 2026, surpassing the $2.0 billion mark. According to Mission Bancorp, asset growth of 8.4% year-over-year was driven by strong loan expansion and deposit inflows, alongside higher cash and stable liquidity levels.

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Mission Bancorp (OTC: MSBC) reported unaudited second quarter 2026 net income available to common shareholders of $8.2 million, or $2.73 per diluted share, up from $3.1 million, or $1.05, a year earlier and $7.7 million, or $2.58, in the prior quarter. According to Mission Bancorp, total assets rose to $2.01 billion, loans increased 12.9% year-over-year to $1.53 billion, and deposits grew 7.6% to $1.75 billion, including 9.4% growth in non-interest-bearing balances, which now represent 39.7% of deposits.

Net interest income reached $20.4 million with a 4.35% net interest margin, 28 basis points higher than a year ago. The efficiency ratio improved to 44.8%, while quarterly return on average assets was 1.67% and return on average equity was 14.1%. Credit quality metrics remained strong, with nonaccrual loans at 0.02% of gross loans and a Community Bank Leverage Ratio of 12.22% at the bank level.

Positive

Net income $8.2M, up 161.8% YoY and 7.2% QoQ
Loans $1.53B, up 12.9% YoY and 2.9% QoQ
Deposits $1.75B, up 7.6% YoY and 5.0% QoQ
Net interest income $20.4M, up 12.9% YoY; NIM +28 bps YoY
Efficiency ratio 44.8%, improved from 73.8% a year earlier
ROA 1.67% and ROE 14.1%, both higher than prior year
Nonaccrual loans 0.02% of gross loans; leverage ratio 12.22%

Negative

Net interest margin 4.35%, down 4 bps from prior quarter
Non-interest income $1.7M, down 7.4% YoY
Provision for credit losses $0.8M in Q2 2026
Cost of funds 1.64%, up 3 bps QoQ
Cost of subordinated debentures 6.32%, up 165–213 bps versus comparisons
Investment securities $231.8M, with higher unrealized losses this quarter

News Market Reaction – MSBC

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In the Jul 21 session, MSBC gained 0.71%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

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07/20/2026 - 04:30 PM

BAKERSFIELD, Calif., July 20, 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 $2.73 per diluted common share, for the second quarter of 2026, compared to net income available to common shareholders of $3.1 million, or $1.05 per diluted common share, for the second quarter of 2025, and net income available to common shareholders of $7.7 million, or $2.58 per diluted common share, for the linked quarter.

"We have seen another quarter of strong performance with results that have propelled us beyond the $2.0 billion asset mark," said Mission Bank President and CEO A.J. Antongiovanni. "We are reporting second quarter earnings of $8.2 million and annual loan and deposit growth of 12.9% and 7.6%, respectively. We have also generated 9.4% year-over-year growth in non-interest-bearing deposits, further proving the strength and efficacy of our relationship-driven business model and commitment to high-touch personal service. I would like to thank the dedicated team members who helped us reach this milestone. We have bolstered the overall strength of our balance sheet and are well positioned for the second half of the year."

Second Quarter 2026 Financial Highlights

Gross loans increased by $174.6 million, or 12.9%, to $1.53 billion as of June 30, 2026, compared to $1.36 billion as of June 30, 2025, and increased by $42.5 million, or 2.9%, compared to balances as of March 31, 2026.
Total deposits increased by $123.0 million, or 7.6%, to $1.75 billion as of June 30, 2026, compared to $1.63 billion a year earlier, and increased by $83.2 million, or 5.0%, from $1.67 billion as of March 31, 2026. Non-interest-bearing deposits were $695.1 million and represent 39.7% of total deposits as of June 30, 2026.
The allowance for credit losses ("ACL") as a percentage of gross loans rose from 1.35% as of March 31, 2026, to 1.37% as of June 30, 2026.
Credit quality remains strong with nonaccrual loans representing 0.02% of total gross loans as of June 30, 2026, up from 0.01% as of March 31, 2026.
The Community Bank Leverage Ratio for the Bank as of June 30, 2026, was 12.22%, compared to 11.43% as of June 30, 2025.

Net Income Available to Common Shareholders

Net income available to common shareholders for the second quarter of 2026 was $8.2 million, or $2.73 per diluted common share, compared with $7.7 million, or $2.58 per diluted common share, for the linked quarter ended March 31, 2026. Net income available to common shareholders was $3.1 million, or $1.05 per diluted common share, for the second quarter of 2025. Net income available to common shareholders increased $0.6 million, or 7.2%, compared to the linked quarter, and increased by $5.1 million, or 161.8%, compared to the same prior year period.

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

Net Interest Income

Net interest income was $20.4 million, or 4.35%, of average earning assets ("net interest margin"), for the second quarter of 2026, compared with $18.1 million, or a net interest margin of 4.07%, for the same prior year period, and $19.8 million, or a net interest margin of 4.39%, for the quarter ended March 31, 2026.

Net interest income increased by $2.3 million, or 12.9%, compared to the same prior year period, primarily due to growth in the Company's loan portfolio coupled with relatively stable loan yields, and lower funding costs. Loan interest income and fee accretion increased by $3.1 million compared to the second quarter of 2025, partially offset by $1.2 million lower interest income on interest earning deposits in other banks and $0.4 million lower interest income on investment securities. Additionally, interest expense declined $0.8 million compared to the same prior year period, primarily due to lower deposit costs.

Net interest income increased by $0.7 million, or 3.4%, for the quarter ended June 30, 2026, compared to the linked quarter, primarily reflecting continued loan growth, higher average balances in interest earning deposits, and one additional day in the period, partially offset by higher average interest-bearing deposit balances while funding costs remained relatively stable. Interest income on loans rose $1.0 million, primarily driven by higher average balances and rates, and interest income on interest earning deposits in other banks rose $0.1 million, primarily due to higher average balances. Interest expense rose $0.4 million compared to the linked quarter, primarily due to higher average balances on interest-bearing deposits.

The net interest margin was 4.35% for the quarter ended June 30, 2026, compared to 4.07% for the same prior year period, and 4.39% for the linked quarter ended March 31, 2026. During the past year, the cost of interest-bearing liabilities declined 40 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 yields and a 28 basis point year-over-year expansion in the quarterly net interest margin. The Federal Reserve has maintained a data-dependent approach to monetary policy following the 175 basis point reduction in the federal funds rate from its recent peak range. The lower rate environment has continued to support reduced funding costs, while sustained loan growth has helped maintain earning asset yields and net interest margin expansion.

The 4 basis point decrease in the net interest margin for the second quarter of 2026, compared to the linked quarter, primarily reflects a modest decrease in earning asset yields, combined with a modest increase in funding costs, primarily reflecting the repricing of subordinated debt following its transition to a floating-rate index. These impacts were partially offset by an improved non-interest-bearing demand deposit ratio.

The yield on loans increased 1 basis point to 6.40%, while the yield on interest earning deposits in other banks and investment securities decreased by 77 basis points to 3.69%, and 49 basis points to 3.49%, respectively, compared to the same prior year period. Additionally, our earning asset mix improved due to an increase in the average balances on loans of $195.0 million, or 14.9%, while the average balances on interest earning deposits in other banks decreased $84.3 million, or 39.5%, and average balances on investment securities decreased $10.8 million, or 4.37%. The cost of interest-bearing deposits decreased 41 basis points to 2.60%, while the average balances of interest-bearing deposits increased $35.4 million, or 3.48%. The cost of subordinated debentures increased 165 basis points to 6.32%, and average balances decreased $5.3 million, or 30.8%.

For the quarter ended June 30, 2026, the yield on loans and the yield on investment securities increased by 3 basis points to 6.40%, and 7 basis points to 3.49%, respectively, while the yield on interest bearing deposits in other banks decreased 1 basis point to 3.69%, compared to the linked quarter. Average balances on loans increased $39.4 million, or 2.68%, and average balances on interest earning deposits in other banks increased $25.5 million, or 24.6%, while average balances on investment securities decreased $5.5 million, or 2.29%. The cost of interest-bearing deposits increased 1 basis point to 2.60%, and average balances on interest-bearing deposits increased $37.3 million, or 3.67%. The cost of subordinated debentures increased 213 basis points to 6.32%, and average balances were relatively unchanged.

The cost of funds was 1.64% for the quarter ending June 30, 2026, a decrease of 26 basis points compared to 1.90%, for the same prior year period, and a 3 basis point increase compared to 1.61%, for the linked quarter ended March 31, 2026. The decrease in the Company's cost of funds over the last year is generally attributable to the lower short term rate environment, which has provided some relief in deposit cost pressures. The Bank has continued to grow its total deposit accounts through both new customer acquisition and the expansion of existing relationships over the past year. At the same time, some rate-sensitive clients have opted for higher yielding investment options.

The Company holds two pay-fixed, receive floating, interest rate swap contracts, with notional balances totaling $108 million, to hedge against rising rates on a portion of its fixed rate loan and investment securities portfolios. Combined, interest rate swap contracts incurred $0.1 million of interest expense for the second quarter of 2026, relatively unchanged compared to the linked quarter, and contributed $0.1 million of interest income for the second quarter of 2025.

Provision for Credit Losses

A $0.8 million provision for credit losses was recorded for the quarter ended June 30, 2026, compared to $0.7 million for the linked quarter, and $0.8 million for the same prior year period. The Company's quarterly credit loss provisions over the past year have been recorded primarily to account for loan growth and changes in macro-economic conditions, which impact the calculated ACL under the current expected credit loss ("CECL") model, rather than in response to changing conditions in the Company's loan portfolio, which has remained stable, demonstrating a low credit risk profile during the past twelve months.

Non-Interest Income

Non-interest income increased $0.1 million, or 4.4%, to $1.7 million for the quarter ended June 30, 2026, compared to $1.6 million for the linked quarter, and decreased $0.1 million, or 7.4%, compared to $1.8 million for the same prior year period. Compared to the linked quarter, increases in service charges, fees and other income and higher Farmer Mac referral and servicing fee income were partially offset by lower SBA servicing fees and gain on sale of loans. Compared to the same prior year period, the decline was primarily due to SBA servicing fees and gain on sale of loans.

Non-Interest Expense

Non-interest expense decreased by $0.1 million, or 1.3%, to $9.9 million for the quarter ended June 30, 2026, compared to $10.0 million for the linked quarter, and decreased by $4.8 million, or 32.6%, compared to $14.7 million for the quarter ended June 30, 2025.

The decrease in non-interest expense for the second quarter of 2026, compared to the linked quarter, was primarily due to a $0.3 million decline in salaries and benefits expense attributable to higher deferred salary loan origination costs and lower payroll taxes, compensation accruals, and benefits expenses, partially offset by higher base salary and other compensation expense. Additionally, a $0.1 million increase in professional services was driven by higher loan related legal and consulting services.

The decrease in non-interest expense for the second quarter of 2026 compared to the same prior year period was primarily due to a $5.1 million decline in other expense attributable to one-time, non-recurring items. Excluding the one-time, non-recurring items recognized during the second quarter of 2025, non-interest expense increased $0.3 million compared to the same prior year period, primarily reflecting a $0.6 million increase in salaries and benefits expense associated with new hire activity, including the North San Luis Obispo County team, net of terminations, together with higher base compensation, payroll taxes, bank owned life insurance accruals, and incentive compensation accruals. These increases were partially offset by a $0.4 million decline in professional services resulting from lower legal fees.

Operating Efficiency

The Company's operating efficiency ratio decreased to 44.8% for the second quarter of 2026, compared to 73.8% for the second quarter of 2025, and 46.9% for the linked quarter. Total non-interest expense as a percentage of average assets, another measure of the Company's efficiency, was 2.02% for the second quarter of 2026, compared to 3.15% for the second quarter of 2025, and 2.13% compared to the quarter ended March 31, 2026.

Income Taxes

Income tax expense was $3.2 million for the second quarter of 2026, compared to $1.3 million for the quarter ended June 30, 2025, and $3.0 million for the linked quarter ended March 31, 2026. The Company's effective tax rate for the second quarter of 2026 was 28.3%, compared to 29.7% for the same prior year period, and 27.9% for the quarter ended March 31, 2026.

Asset and Equity Returns

The return on average equity for the second quarter of 2026 was 14.1%, up from 6.28% for the same prior year period, and 13.8% for the linked quarter. The quarterly return on average assets for the second quarter of 2026 was 1.67%, up from 0.67% from the same prior year period, and 1.63% for the linked quarter.

The increase in the quarterly returns on both average equity and average assets for the quarter ended June 30, 2026, compared to the same prior year period, was primarily attributable to higher quarterly net income, reflecting the absence of one-time, non-recurring expenses recognized during the same prior year period. Compared to the same prior year period, average equity increased 16.7% and average assets increased 5.42%. The Company's capital accumulation rate over the past few years has outpaced its' earnings growth rate, resulting in declining equity returns.

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

Balance Sheet

Total assets increased by $155.8 million, or 8.4%, to $2.01 billion as of June 30, 2026, compared to June 30, 2025, and increased by $90.3 million, or 4.7%, compared to March 31, 2026. Cash and cash equivalents were nearly unchanged at $201.6 million as of June 30, 2026, compared to the same prior year period, and increased by $52.2 million, or 34.9%, compared to March 31, 2026.

The increase in the Company's cash position over the past quarter primarily reflects strong deposit growth, which exceeded continued robust loan growth.

Investment securities decreased by $18.4 million, or 7.3%, to $231.8 million as of June 30, 2026, compared to $250.2 million as of June 30, 2025, and decreased by $6.9 million, or 2.9%, compared to $238.7 million as of March 31, 2026. The decline in the investment securities portfolio over the past year primarily reflects normal repayment and amortization of the bond portfolio, net of a decline in unrealized losses on the investment securities portfolio attributable to market rate changes. During the year, the Company continued to utilize cash flows generated from its investment portfolio to support robust loan growth while maintaining a strong liquidity position. The decrease in the investment portfolio during the second quarter of 2026, compared to the linked quarter, reflected normal repayment and amortization of the bond portfolio and a rise in unrealized losses on the investment securities portfolio attributable to market rate changes during the quarter.

Loans increased by $174.6 million, or 12.9%, to $1.53 billion as of June 30, 2026, compared to June 30, 2025, and increased by $42.5 million, or 2.9%, compared to March 31, 2026. Loan growth during the last year reflected broad-based growth across nearly every loan category, offset by contraction in agricultural production and residential 1 to 4 family loans. Loan growth during the last quarter was concentrated in commercial real estate, commercial and industrial, and construction and land development, with a notable contraction in residential 1 to 4 family loans.

Total deposits increased by $123.0 million, or 7.6%, to $1.75 billion as of June 30, 2026, from $1.63 billion as of June 30, 2025, and increased by $83.2 million, or 5.0%, compared to March 31, 2026. Non-interest-bearing deposits increased by $59.6 million, or 9.4%, during the last year, and increased by $48.1 million, or 7.4%, since March 31, 2026. The increase in deposits over the past year reflects an increase in average balances among existing customers, a declining account closure ratio, and stable new account openings. Non-interest-bearing deposits represented 39.7% of total deposits on June 30, 2026.

Total shareholders' equity was $237.2 million as of June 30, 2026, an increase of $37.8 million, or 19.0%, compared to June 30, 2025, and an increase of $8.3 million, or 3.6%, compared to March 31, 2026, primarily due to quarterly earnings, net of changes in accumulated other comprehensive loss. The accumulated other comprehensive loss component of equity decreased by $4.9 million during the year, primarily reflecting a $4.3 million decline in unrealized losses on the investment securities portfolio. The accumulated other comprehensive loss component of equity increased by $0.2 million during the quarter due to a rise in the unrealized losses on the investment securities portfolio, partially offset by a decline in the unrealized losses on the interest rate swap contracts.

Allowance for Credit Losses and Credit Quality

The ACL as a percentage of gross loans increased to 1.37% as of June 30, 2026, from 1.35% as of March 31, 2026, and decreased from 1.50% as of June 30, 2025. The ACL as a percentage of gross loans decreased during the last year, due to charge-offs on loans that previously carried specific reserves on individually analyzed loans, while the overall credit quality of the loan portfolio has remained stable.

Nonperforming assets were $0.3 million as of June 30, 2026, up from $0.1 million as of March 31, 2026, and down from $1.7 million as of June 30, 2025. Nonperforming assets as a percentage of total assets were 0.02% as of June 30, 2026, up from 0.01% as of March 31, 2026, and down from 0.09% as of June 30, 2025.

Regulatory Capital

The Bank's reported regulatory capital ratio exceeded the ratio generally required to be considered a "well capitalized" financial institution for regulatory purposes. The Community Bank Leverage Ratio for the Bank was 12.22%, as of June 30, 2026, compared with the requirement of 9.00% to generally be considered a "well capitalized" financial institution for regulatory purposes. The Bank's Community Bank Leverage ratio has increased by 79 and 3 basis points, from 11.43% and 12.19%, as of the periods ended June 30, 2025, and March 31, 2026, 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 April 27, 2026, 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 $4.95 million of the Company's common stock may be repurchased by the Company. The previous extension under the Plan was set to expire on April 23, 2026, and the Company extended the Plan for an additional six months through October 22, 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 second quarter of 2026 the Company repurchased 3,000 shares under the 2022 10b5-1 Plan at an average price of $102.50. Since Plan inception the Company has repurchased 37,576 shares at an average price of $93.10.

About Mission Bancorp and Mission Bank

With $2.0 billion in assets, Mission Bancorp is headquartered in Bakersfield, California and is the holding company of three wholly owned subsidiaries, Mission Bank, Mission 1031 Exchange, LLC, and Mission Community Development, LLC. Mission Bank has eight Business Banking Centers, serving the greater areas of Bakersfield, Lancaster, San Luis Obispo, Ventura, Visalia, and Westlake Village, California. In addition, the Bank operates a production office in North San Luis Obispo, California. Visit Mission Bank online at www.missionbank.bank. By including the foregoing website address, Mission Bancorp does not intend to and shall not be deemed to incorporate by reference any material contained therein.

Forward Looking Statements

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

MISSION BANCORP
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Dollars in thousands)

								Variance
				June 30, 2026	March 31, 2026	December 31, 2025	June 30, 2025	06/26 - 03/26	06/26 - 06/25
Assets
	Cash and due from banks			$ 55,623	$ 49,126	$ 45,285	$ 65,425	$ 6,497	$ (9,802)
	Interest earning deposits in other banks			145,965	100,291	107,983	136,406	45,674	9,559
		Total cash and cash equivalents		201,588	149,417	153,268	201,831	52,171	(243)
	Interest earning deposits maturing over ninety days			245	490	490	490	(245)	(245)
	Investment securities available-for-sale, at fair value			231,814	238,742	242,660	250,199	(6,928)	(18,385)
	Loans			1,530,176	1,487,673	1,460,676	1,355,615	42,503	174,561
	Allowance for credit losses			(20,908)	(20,122)	(21,909)	(20,332)	(786)	(576)
	Loans, net			1,509,268	1,467,551	1,438,767	1,335,283	41,717	173,985
	Premises and equipment, net			2,937	2,632	2,636	2,855	305	82
	Bank owned life insurance			22,859	22,694	22,534	22,211	165	648
	Deferred tax asset, net			15,254	15,187	15,346	16,595	67	(1,341)
	Interest receivable and other assets			30,557	27,493	27,754	29,277	3,064	1,280
Total Assets				$ 2,014,522	$ 1,924,206	$ 1,903,455	$ 1,858,741	$ 90,316	$ 155,781

Liabilities and Shareholders' Equity
	Deposits
		Noninterest-bearing demand		$ 695,127	$ 647,042	$ 662,809	$ 635,530	$ 48,085	$ 59,597
		Interest bearing		1,056,179	1,021,068	993,554	992,734	35,111	63,445
			Total deposits	1,751,306	1,668,110	1,656,363	1,628,264	83,196	123,042
		Subordinated debentures, net of issuance costs		12,000	11,999	11,988	11,966	1	34
		Interest payable and other liabilities		14,056	15,199	14,800	19,183	(1,143)	(5,127)
Total Liabilities				1,777,362	1,695,308	1,683,151	1,659,413	82,054	117,949

Shareholders' Equity
		Common stock		114,964	101,404	100,846	101,331	13,560	13,633
		Retained earnings		136,112	141,250	133,594	116,806	(5,138)	19,306
		Accumulated other comprehensive loss		(13,916)	(13,756)	(14,136)	(18,809)	(160)	4,893
			Total shareholders' equity	237,160	228,898	220,304	199,328	8,262	37,832
	Total Liabilities and Shareholders' Equity			$ 2,014,522	$ 1,924,206	$ 1,903,455	$ 1,858,741	$ 90,316	$ 155,781


SBA Paycheck Protection Program Loans				58	81	257	355	(23)	(297)

MISSION BANCORP
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(Dollars in thousands)


			For the Three Months Ended					For the Six Months Ended
			For the Three Months Ended			Variance		For the Six Months Ended		Variance
			June 30, 2026	March 31, 2026	June 30, 2025	06/26 - 03/26	06/26 - 06/25	June 30, 2026	June 30, 2025	06/26 - 06/25
Interest and Dividend Income
	Loans		$ 24,045	$ 23,069	$ 20,920	$ 976	$ 3,125	$ 47,115	$ 41,454	$ 5,661
	Investment securities		2,054	2,034	2,449	20	(395)	4,088	4,782	(694)
	Other		1,356	1,262	2,558	94	(1,202)	2,617	5,231	(2,614)
		Total interest and dividend income	27,455	26,365	25,927	1,090	1,528	53,820	51,467	2,353
Interest Expense
	Other deposits		6,511	6,180	7,020	331	(509)	12,692	13,607	(915)
	Time deposits		320	303	608	17	(288)	622	1,466	(844)
		Total interest expense on deposits	6,831	6,483	7,628	348	(797)	13,314	15,073	(1,759)
	Subordinated debentures		189	124	202	65	(13)	313	470	(157)
		Total interest expense	7,020	6,607	7,830	413	(810)	13,627	15,543	(1,916)
Net Interest Income			20,435	19,758	18,097	677	2,338	40,193	35,924	4,269
Credit Loss Expense			754	709	750	45	4	1,463	906	557
Net Interest Income After Provision
	for Credit Losses		19,681	19,049	17,347	632	2,334	38,730	35,018	3,712

Non-Interest Income
	Service charges, fees and other income		1,114	947	1,153	167	(39)	2,061	2,221	(160)
	Farmer Mac referral and servicing fees		381	305	389	76	(8)	686	675	11
	SBA servicing fees and gain on sale of loans		170	343	305	(173)	(135)	513	544	(31)
		Total non-interest income	1,665	1,595	1,798	70	(133)	3,260	3,391	(131)
Non-Interest Expense
	Salaries and benefits		6,353	6,701	5,732	(348)	621	13,053	11,666	1,387
	Professional services		1,165	1,019	1,558	146	(393)	2,185	2,597	(412)
	Occupancy and equipment		653	579	583	74	70	1,232	1,159	73
	Data processing and communication		401	401	382	-	19	802	748	54
	Other		1,324	1,322	6,431	2	(5,107)	2,646	7,742	(5,096)
		Total non-interest expense	9,896	10,022	14,686	(126)	(4,790)	19,918	23,912	(3,994)
Net Income Before Provision for Income Taxes			11,450	10,622	4,459	828	6,991	22,072	14,497	7,575
Provision for Income Taxes			3,241	2,966	1,323	275	1,918	6,207	4,209	1,998
Net Income			$ 8,209	$ 7,656	$ 3,136	$ 553	$ 5,073	$ 15,865	$ 10,288	$ 5,577

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 Six Months Ended

	June 30, 2026	March 31, 2026	December 31, 2025	June 30, 2025	June 30, 2026	June 30, 2025

Ratio of total loans to total deposits	87.37 %	89.18 %	88.19 %	83.26 %	87.37 %	83.26 %
Return on average assets	1.67 %	1.63 %	1.66 %	0.67 %	1.65 %	1.11 %
Return on average equity	14.09 %	13.75 %	14.88 %	6.28 %	13.93 %	10.54 %

Net interest margin	4.35 %	4.39 %	4.31 %	4.07 %	4.37 %	4.07 %
Efficiency ratio	44.78 %	46.93 %	41.77 %	73.82 %	45.84 %	60.82 %
Non-interest expense as a percent of average assets	2.02 %	2.13 %	1.86 %	3.15 %	2.07 %	2.58 %
Non-interest income as a percent of average assets	0.34 %	0.34 %	0.31 %	0.39 %	0.34 %	0.37 %
Community Bank Leverage Ratio	12.22 %	12.19 %	11.61 %	11.43 %	12.22 %	11.43 %

Weighted average shares outstanding - basic*	2,930,498	2,915,833	2,915,960	2,922,907	2,923,206	2,919,164
Weighted average shares outstanding - diluted*	3,006,517	2,973,018	2,974,207	2,976,578	2,995,784	2,972,876
Shares outstanding at period end - basic*	2,932,608	2,924,017	2,908,717	2,919,919	2,932,608	2,919,919
Earnings per share - basic	$ 2.80	$ 2.63	$ 2.80	$ 1.07	$ 5.43	$ 3.52
Earnings per share - diluted	$ 2.73	$ 2.58	$ 2.74	$ 1.05	$ 5.30	$ 3.46

Total assets	$ 2,014,522	$ 1,924,206	$ 1,903,455	$ 1,858,741	$ 2,014,522	$ 1,858,741
Loans and leases net of deferred fees	$ 1,530,176	$ 1,487,673	$ 1,460,676	$ 1,355,615	$ 1,530,176	$ 1,355,615
Noninterest-bearing demand deposits	$ 695,127	$ 647,042	$ 662,809	$ 635,530	$ 695,127	$ 635,530
Total deposits	$ 1,751,306	$ 1,668,110	$ 1,656,363	$ 1,628,264	$ 1,751,306	$ 1,628,264
Noninterest-bearing deposits as a percentage total deposits	39.69 %	38.79 %	40.02 %	39.03 %	39.69 %	39.03 %

Average total assets	$ 1,969,666	$ 1,904,171	$ 1,942,161	$ 1,868,348	$ 1,937,100	$ 1,866,633
Average total equity	$ 233,667	$ 225,734	$ 217,268	$ 200,310	$ 229,723	$ 196,923

Shareholders' equity / total assets	11.77 %	11.90 %	11.57 %	10.72 %	11.77 %	10.72 %
Book value per share	$ 80.87	$ 78.28	$ 75.74	$ 68.26	$ 80.87	$ 68.26


*Outstanding shares adjusted for 5% dividend declared on April 23, 2026.

MISSION BANCORP
AVERAGE BALANCES AND RATES
(Unaudited)
(Dollars in thousands)

				For the Quarter Ended			For the Quarter Ended			For the Quarter Ended
				June 30, 2026			March 31, 2026			June 30, 2025

				Average	Income /	Yield /	Average	Income /	Yield /	Average	Income /	Yield /
				Balance	Expense	Rate	Balance	Expense	Rate	Balance	Expense	Rate
Assets
	Interest earning deposits in other banks			$ 129,158	$ 1,187	3.69 %	$ 103,689	$ 945	3.70 %	$ 213,500	$ 2,373	4.46 %
	Investment securities			235,957	2,054	3.49 %	241,475	2,034	3.42 %	246,748	2,449	3.98 %
	Loans			1,508,065	24,045	6.40 %	1,468,635	23,069	6.37 %	1,313,087	20,920	6.39 %
	Other earning assets			11,558	169	5.86 %	11,047	317	11.64 %	9,027	185	8.22 %

		Total Earning Assets		1,884,738	27,455	5.84 %	1,824,846	26,365	5.86 %	1,782,362	25,927	5.83 %
	Non-interest earning assets			84,928			79,325			85,986
		Total Assets		$ 1,969,666			$ 1,904,171			$ 1,868,348

Liabilities and Capital
	Interest-bearing deposits
		Interest-bearing transaction accounts		$ 973,432	$ 6,476	2.67 %	$ 939,521	$ 6,128	2.65 %	$ 910,089	$ 6,985	3.08 %
		Time deposits		52,559	320	2.44 %	47,374	303	2.59 %	72,975	608	3.34 %
		1031 Exchange deposits		26,788	35	0.52 %	28,630	52	0.74 %	34,358	35	0.41 %
			Total interest-bearing deposits	1,052,779	6,831	2.60 %	1,015,525	6,483	2.59 %	1,017,422	7,628	3.01 %
	Borrowed funds
		Subordinated debt		11,999	189	6.32 %	11,992	124	4.19 %	17,343	202	4.67 %
			Total interest-bearing liabilities	1,064,778	7,020	2.64 %	1,027,517	6,607	2.61 %	1,034,765	7,830	3.04 %
	Noninterest-bearing deposits			654,505			634,081			616,724
			Total Funding	1,719,283	7,020	1.64 %	1,661,598	6,607	1.61 %	1,651,489	7,830	1.90 %
	Other noninterest-bearing liabilities			16,716			16,839			16,549
		Total Liabilities		1,735,999			1,678,437			1,668,038
		Total Capital		233,667			225,734			200,310
			Total Liabilities and Capital	$ 1,969,666			$ 1,904,171			$ 1,868,348

	Net Interest Margin			4.35 %			4.39 %			4.07 %
	Net Interest Spread			4.21 %			4.25 %			3.93 %

MISSION BANCORP
AVERAGE BALANCES AND RATES
(Unaudited)
(Dollars in thousands)

				As of or for the Six Months Ended			As of or for the Six Months Ended
				June 30, 2026			June 30, 2025

				Average	Income /	Yield /	Average	Income /	Yield /
				Balance	Expense	Rate	Balance	Expense	Rate
Assets
	Interest earning deposits in other banks			$ 116,494	$ 2,132	3.69 %	$ 222,737	$ 4,891	4.43 %
	Investment securities			238,701	4,088	3.45 %	244,256	4,782	3.95 %
	Loans			1,488,459	47,115	6.38 %	1,306,056	41,454	6.40 %
	Other earning assets			11,304	485	8.65 %	9,027	340	7.60 %

		Total Earning Assets		1,854,958	53,820	5.85 %	1,782,076	51,467	5.82 %
	Non-interest earning assets			82,142			84,557
		Total Assets		$ 1,937,100			$ 1,866,633

Liabilities and Capital
	Interest-bearing deposits
		Interest-bearing transaction accounts		$ 956,570	$ 12,605	2.66 %	$ 894,154	$ 13,526	3.05 %
		Time deposits		49,981	622	2.51 %	82,638	1,466	3.58 %
		1031 Exchange deposits		27,704	87	0.63 %	35,359	81	0.46 %
			Total interest-bearing deposits	1,034,255	13,314	2.60 %	1,012,151	15,073	3.00 %
	Borrowed funds
		Subordinated debt		11,996	313	5.26 %	19,629	470	4.83 %
			Total interest-bearing liabilities	1,046,251	13,627	2.63 %	1,031,780	15,543	3.04 %
	Noninterest-bearing deposits			644,349			621,327
			Total Funding	1,690,600	13,627	1.63 %	1,653,107	15,543	1.90 %
	Other noninterest-bearing liabilities			16,777			16,603
		Total Liabilities		1,707,377			1,669,710
		Total Capital		229,723			196,923
			Total Liabilities and Capital	$ 1,937,100			$ 1,866,633

	Net Interest Margin			4.37 %			4.07 %
	Net Interest Spread			4.23 %			3.93 %

MISSION BANCORP
LOAN DETAIL
(Unaudited)
(Dollars in thousands)

							Variance
			June 30, 2026	March 31, 2026	December 31, 2025	June 30, 2025	06/26 - 03/26	06/26 - 06/25
Loans
	Construction and land development		$ 93,193	$ 85,555	$ 66,699	$ 45,471	$ 7,638	$ 47,722
	Secured by farmland		173,808	174,088	169,321	154,032	(280)	19,776
	Residential 1 to 4 units		61,912	63,520	67,567	65,603	(1,608)	(3,691)
	Multi-family		81,168	80,771	78,342	67,589	397	13,579
	Owner occupied commercial real estate		532,321	532,534	525,130	504,883	(213)	27,438
	Non-owner occupied commercial real estate		282,009	265,092	256,052	242,205	16,917	39,804
	Commercial and industrial		218,763	200,915	203,716	184,405	17,848	34,358
	Agricultural production		89,765	88,053	95,964	92,609	1,712	(2,844)
	Other loans		243	194	934	1,611	49	(1,368)
	Net deferred fees-costs		(3,006)	(3,049)	(3,049)	(2,793)	43	(213)
		Total Loans	$ 1,530,176	$ 1,487,673	$ 1,460,676	$ 1,355,615	$ 42,503	$ 174,561

MISSION BANCORP
Credit Quality
(Unaudited)
(Dollars in thousands)

		June 30, 2026	March 31, 2026	December 31, 2025	June 30, 2025
Asset quality
Loans past due 90 days or more and accruing interest		$ -	$ -	$ -	$ -
Nonaccrual loans		$ 305	$ 130	$ 2,624	$ 1,698
Restructured loans
	Nonperforming restructured loans	$ -	$ -	$ -	$ -
	Performing restructured loans	$ -	$ -	$ -	$ -
Other real estate owned		$ -	$ -	$ -	$ -
Total nonperforming assets		$ 305	$ 130	$ 2,624	$ 1,698

Allowance for credit losses to total loans		1.37 %	1.35 %	1.50 %	1.50 %
Allowance for credit losses to nonperforming loans		6855.08 %	15478.46 %	834.95 %	1197.41 %
Nonaccrual loans to total loans		0.02 %	0.01 %	0.18 %	0.13 %
Nonperforming assets to total assets		0.02 %	0.01 %	0.14 %	0.09 %

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SOURCE Mission Bank

FAQ

What were Mission Bancorp (OTC: MSBC) Q2 2026 earnings and EPS?

Mission Bancorp reported Q2 2026 net income available to common shareholders of $8.2 million, or $2.73 per diluted share. According to Mission Bancorp, this compares with $3.1 million, or $1.05 per diluted share, in Q2 2025 and $7.7 million, or $2.58, in Q1 2026.

How did Mission Bancorp’s loans and deposits grow in the year to Q2 2026 (MSBC)?

Mission Bancorp’s gross loans grew 12.9% year-over-year to $1.53 billion, while total deposits increased 7.6% to $1.75 billion. According to Mission Bancorp, non-interest-bearing deposits rose 9.4% and represented 39.7% of total deposits at June 30, 2026.

What was Mission Bancorp’s net interest margin in Q2 2026 and how did it change (MSBC)?

Mission Bancorp reported a Q2 2026 net interest margin of 4.35%. According to Mission Bancorp, this was 28 basis points higher than the 4.07% margin a year earlier, but 4 basis points lower than the 4.39% margin recorded in the first quarter of 2026.

What are Mission Bancorp’s Q2 2026 profitability ratios, including ROA and ROE (MSBC)?

Mission Bancorp’s Q2 2026 return on average assets was 1.67% and return on average equity was 14.1%. According to Mission Bancorp, both ratios increased versus the prior year period, primarily due to higher quarterly net income and the absence of prior one-time expenses.

How strong is Mission Bancorp’s credit quality as of Q2 2026 (MSBC)?

Mission Bancorp reported nonaccrual loans at 0.02% of total gross loans as of June 30, 2026. According to Mission Bancorp, the allowance for credit losses was 1.37% of gross loans, and quarterly provisions mainly reflected loan growth and macroeconomic assumptions rather than deteriorating portfolio performance.

What was Mission Bancorp’s efficiency ratio and cost management in Q2 2026 (MSBC)?

Mission Bancorp’s Q2 2026 operating efficiency ratio was 44.8%, significantly better than 73.8% a year earlier. According to Mission Bancorp, total non-interest expense fell 32.6% year-over-year to $9.9 million, largely due to the absence of prior one-time, non-recurring items.

Did Mission Bancorp surpass $2 billion in assets in Q2 2026, and what drove it (MSBC)?

Mission Bancorp’s total assets reached $2.01 billion as of June 30, 2026, surpassing the $2.0 billion mark. According to Mission Bancorp, asset growth of 8.4% year-over-year was driven by strong loan expansion and deposit inflows, alongside higher cash and stable liquidity levels.