Mission Bancorp Reports Annualized Deposit Growth of 7% and All- time Record Quarterly Earnings of $8.0 million for Third Quarter of 2023, an increase of 25% year over year.

Rhea-AI Summary

Mission Bancorp reports unaudited net income of $8.0 million for Q3 2023. Gross loans increase by 10.1% to $1.16 billion. Total deposits decrease by 1.2% to $1.41 billion. Net interest income increases by 19.0% to $17.9 million. Provision for credit losses decreases to $0.2 million. Non-interest income is $1.4 million.

Positive

• Mission Bancorp reports unaudited net income of $8.0 million for Q3 2023, an increase of 25.0% compared to Q3 2022.
• Gross loans increase by 10.1% to $1.16 billion, indicating growth in lending activity.
• Net interest income increases by 19.0% to $17.9 million, driven by higher yields on loans and earning assets.
• Provision for credit losses decreases to $0.2 million, suggesting improved credit quality.
• Non-interest income is $1.4 million, contributing to overall revenue.

Negative

• Total deposits decrease by 1.2% to $1.41 billion, indicating a decline in customer deposits.
• Non-interest income is relatively low at $1.4 million, potentially impacting overall revenue.
• The provision for credit losses is recorded at $0.2 million, suggesting potential credit risk.

BAKERSFIELD, Calif., Oct. 23, 2023 /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 $8.0 million, or $3.22 per basic common share, for the third quarter of 2023, compared to net income available to common shareholders of $6.4 million, or $2.63 per basic common share, for the third quarter of 2022, and net income available to common shareholders of $7.7 million, or $3.12 per basic common share, for the linked quarter.

"Mission continues to set new records for earnings despite the challenging interest rate environment and current state of the banking industry. For the third quarter, the Company generated record earnings of $8.0 million," said A.J. Antongiovanni, President, and Chief Executive Officer of Mission Bancorp. Mr. Antongiovanni continued, "Our business banking model generates genuine customer relationships resulting in a stable and growing core deposit base, which holds up well in this rate environment. While many bank's earnings are under pressure due to shrinking net interest margins, our margin has improved significantly over the last year, rising from 4.06% for the third quarter of 2022 to 4.67% for the current quarter." Mr. Antongiovanni concluded, "Deposits grew by a 7.0% annualized rate over the third quarter, and we continue to have ample liquidity to address lending demand for our customers."

Third Quarter 2023 Financial Highlights

• Gross loans increased by $106.9 million, or 10.1%, to $1.16 billion as of September 30, 2023, compared to $1.05 billion at September 30, 2022, and declined by $3.1 million, or 0.3%, compared to $1.16 billion at June 30, 2023.
  
  
• Total deposits decreased by $16.4 million, or 1.2%, to $1.41 billion as of September 30, 2023, compared with $1.42 billion a year earlier, and increased by $24.4 million, or 1.8%, from $1.38 billion as of June 30, 2023. Noninterest-bearing deposits were $655.5 million and represent 46.6% of total deposits at September 30, 2023.
  
  
• The allowance for credit losses ("ACL") as a percentage of gross loans increased from 1.38% at September 30, 2022, to 1.53% at September 30, 2023.
  
  
• Credit quality remains pristine with nonaccrual loans representing 0.00% of total gross loans at September 30, 2023, down from 0.01% as of September 30, 2022.
  
  
• The Community Bank Leverage Ratio for the Bank as of September 30, 2023, was 11.05%, compared to 9.32% at September 30, 2022.

Net Income Available to Common Shareholders

Net income available to common shareholders for the third quarter of 2023 was $8.0 million, or $3.22 per basic common share, compared with $7.7 million, or $3.12 per basic common share, for the linked quarter ended June 30, 2023. Net income available to common shareholders was $6.4 million, or $2.63 per basic common share, for the third quarter of 2022. Net income available to common shareholders increased $0.3 million, or 3.8%, compared to the linked quarter, and $1.6 million, or 25.0%, compared to the same prior year period.

Notable trends comparing to the linked quarter include increases in net interest income, driven primarily by average balance growth and increased yields on loan and interest-bearing cash balances, and decreased provision for credit losses, which were offset by an increase in the provision for income taxes. Compared to the third quarter of 2022, net interest income increased and the provision for credit losses decreased, which were partially offset by increases in non-interest expense and the provision for income taxes.

Net income available to common shareholders for the nine months ended September 30, 2023, increased by $6.0 million, or 36.1%, and was $22.7 million, or $9.22 per basic common share, compared to $16.7 million, or $6.89 per basic common share for the nine months ended September 30, 2022. Compared to the nine months ended September 30, 2022, an increase in net interest income and decline in the provision for credit losses more than offset an increase in non-interest expense and decline in non-interest income. If the net income available to common shareholders for the nine months ended September 30, 2022, was adjusted to remove the gain on sale of our Ridgecrest Business Banking Center, recorded in June of 2022, net income available to common shareholders for the nine months ended September 30, 2023, would have increased by $7.2 million, or 46.1%, compared to the nine months ended September 30, 2022.

Net Interest Income

Net interest income was $17.9 million, or 4.67%, of average earning assets ("net interest margin"), for the third quarter of 2023, compared with $15.0 million, or a net interest margin of 4.06%, for the same period a year earlier, and $17.1 million, or a net interest margin of 4.68%, for the quarter ended June 30, 2023.

Net interest income increased by $2.9 million, or 19.0%, compared to the same prior year period driven by a shift in the Company's earning asset mix to higher yielding loans along with a significant increase in yields on earning assets. Loan interest income and fee accretion from the third quarter of 2022 to the current quarter increased by $5.0 million. In addition to the increase in loan interest income, the Company also experienced increased interest income from investment securities of $1.2 million. Offsetting these increases, interest expense for the current quarter increased $3.6 million, compared to the same prior year period, attributable to a $3.3 million increase in interest expense on deposits and a $0.2 million increase in other borrowing expenses.

Net interest income increased for the quarter ended September 30, 2023, compared to the linked quarter by $0.8 million, or 4.9%, due primarily to increases in loan interest income and other interest income of $0.8 million, each. The increase in loan interest income and other interest income is attributable to an increase in average quarterly balances of loans and interest-bearing cash, and higher yields on each of those asset classes. Interest expense increased $1.0 million, for the current quarter, compared to the linked quarter, due to increased costs on interest-bearing liabilities and higher average balances.

The net interest margin was 4.67% for the quarter ended September 30, 2023, compared to 4.06% for the same prior year period, and 4.68% for the linked quarter ended June 30, 2023. Asset yields have increased 153 basis points, while the cost of funds has only risen 97 basis points leading to the year- over-year 61 basis point increase in the net interest margin. The yield on loans, investment securities, and interest earning deposits in other banks have increased by 104 basis points to 6.26%, 176 basis points to 4.01%, and 314 basis points to 5.30%, respectively. Additionally, average balances on loans increased $146.3 million, or 14.5%, average balances on investment securities increased $24.9 million, or 11.2%, and average balances on interest bearing deposits in other banks declined $121.3 million, or 53.3%, when compared to the same prior year period.

The 1 basis point decrease in the net interest margin for the second quarter of 2023, compared to the linked quarter is primarily attributable to both higher average balances and costs of interest-bearing liabilities. While the Company remains asset sensitive and yields on earning assets increased 19 basis points since the second quarter, average interest-bearing liabilities balances and costs increased by $51.0 million, and 34 basis points, respectively, which led to nominal net interest margin compression during the quarter. The average interest earning deposits in other banks increased by $54.2 million and average balances on loans increased $11.9 million, funded by strong deposit growth during the quarter.

The cost of interest-bearing deposits increased 35 basis points to 2.09% for the quarter ended September 30, 2023, compared to the linked quarter ended June 30, 2023, and 174 basis points, compared to the same prior year period.

In the third quarter of 2023 the Company entered into two pay-fixed, receive floating, interest rate swap contracts 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 the quarter ending on September 30, 2023, the interest rate swap contract associated with the loan portfolio generated an additional $0.1 million in loan interest income, resulting in 4 basis points of additional yield on loans. The interest rate swap contract on the investment securities portfolio added $0.2 million to investment securities interest income, yielding an additional 28 basis points on that portfolio. Combined, the interest rate swap contracts generated $0.3 million of additional interest income and 7 basis points of additional earning asset yield during the quarter ended September 30, 2023.

Provision for Credit Losses

A $0.2 million provision for credit losses was recorded for the quarter ended September 30, 2023, compared to $0.5 million for the linked-quarter and $1.1 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. Additionally, loan recoveries of $0.3 million recorded during the current quarter reduced the amount of required provision for credit losses.

Non-Interest Income

Non-interest income for the third quarter of 2023 was $1.4 million, relatively unchanged when compared to the linked quarter, and the same period a year earlier. Notable variances comparing to the same prior year period were decreases in service charges, fees, and other income, offset by increased SBA servicing fees, and gain on sale of loans and Farmer Mac referral and servicing fees.

Non-interest income decreased $2.3 million, or 36.3%, to $4.1 million during the nine months ended September 30, 2023, compared to the nine months ended September 30, 2022. The decrease in non- interest income is primarily due to the recording of the $1.6 million gain on sale of our Ridgecrest Business Banking Center in the prior year period. When adjusted for the gain on sale of the business banking center, non-interest income decreased $0.7 million, which is primarily due to decreased service charges, fees, and other income, and the loss on sale of securities, which were partially offset by increased gain on sale premises and equipment, SBA servicing fees, and the gain on sale of loans.

Non-Interest Expense

Non-interest expense was stable and remained at $7.9 million for the quarter ended September 30, 2023, when compared to the linked quarter, and increased by $1.4 million, or 21.7%, compared to $6.5 million for the quarter ended September 30, 2022. Notable variances comparing to the linked quarter were decreased salaries and benefits expense, offset by increases in professional services expenses and occupancy and equipment expenses.

The increase in non-interest expense for the third quarter of 2023 compared to the third quarter of 2022 was primarily due to a $0.7 million increase in salaries and benefits expense and a $0.4 million increase in professional services expense. The largest component of the increase in salaries and benefits expense was increased base compensation expense and associated payroll taxes. The year over year quarterly increase in professional services is primarily attributable to an increase in legal fees and marketing expenses.

Operating Efficiency

The Company's operating efficiency ratio increased to 40.9% for the third quarter of 2023, compared to 39.5% for the third quarter of 2022, and decreased from 42.9% compared to the linked quarter. Total non-interest expense as a percentage of average assets, another measure of the Company's efficiency, was 1.95% for the third quarter of 2023, compared to 1.66% for the third quarter of 2022, and 2.06% for the quarter ended June 30, 2023.

Income Taxes

Income tax expense was $3.3 million for the third quarter of 2023, compared to $2.5 million for the quarter ended September 30, 2022, and $2.4 million for the linked quarter ended June 30, 2023. The Company's effective tax rate for the third quarter of 2023 was 29.1%, compared to 28.1% for the same period a year ago, and 24.1% for the quarter ended June 30, 2023. Income tax expense and the effective tax rate for the linked quarter were reduced due to tax deductions attributable to the exercise of stock options.

Asset and Equity Returns

The return on average equity for the third quarter of 2023 was 22.1%, up from 21.7% for the same prior year period, and down from 22.7% for the linked quarter. The quarterly return on average assets for the third quarter of 2023 was 1.97%, increasing from 1.63% for the same prior year period, and declining from 1.99% for the linked quarter.

The rise in returns on both average equity and average assets for the quarter ended September 30, 2023, compared to the third quarter of 2022, are primarily attributable to the 25.0% increase in net income for the current quarter, compared to the same prior year period, which has outpaced the growth in both average assets and average equity.

The decrease in returns on both average equity and average assets for the quarter ended September 30, 2023, compared to the linked quarter is primarily attributable to average asset and average equity growth, which outpaced the 3.8% increase in net income.

Balance Sheet

Total assets increased by $43.8 million, or 2.8%, to $1.62 billion at September 30, 2023, compared to September 30, 2022, and increased by $35.7 million, or 2.3%, compared to June 30, 2023. Cash and cash equivalents decreased by $79.7 million, or 32.3%, to $167.2 million at September 30, 2023, compared to the same prior year period, and increased by $48.5 million, or 40.8%, compared to June 30, 2023. The decline in the Company's cash position over the last year is primarily the result of loan growth, and to a lesser extent, growth in the investment securities portfolio, which significantly outpaced deposit growth. The increase in the Company's cash position over the past quarter is primarily due to strong deposit growth and continued strong earnings.

Investment securities increased by $9.8 million or 4.3%, to $238.1 million at September 30, 2023, compared to $228.3 million at September 30, 2022, and decreased by $14.1 million, or 5.6%, compared to $252.2 million at June 30, 2023. The decrease in the investment securities portfolio during the third quarter of 2023, compared to the linked quarter, is primarily attributable to repayments, amortization, and the increase in unrealized losses on the investment portfolio attributable to the continued increase in capital market interest rates of various terms across the yield curve. The increase in the investment securities portfolio over the past year is attributable to new bond purchases, net of repayments, amortization, and the increase in unrealized losses of the investment portfolio attributable to the rise in interest rates. The rise in interest rates has made it attractive to deploy excess liquidity to purchase higher yielding variable rate bonds over the past year.

Loans increased by $106.9 million, or 10.1%, to $1.16 billion at September 30, 2023, compared to September 30, 2022, and declined by $3.1 million, or 0.3%, compared to June 30, 2023. Loan growth during the last year has been concentrated in the owner and non-owner occupied commercial real estate, secured by farmland, and commercial and industrial segments of the loan portfolio, which were partially offset by the contraction in construction and land development loans. Loans declined during the current quarter with decreases concentrated in construction and land development, non-owner occupied commercial real estate, and agricultural production segments of the loan portfolio, partially offset by growth in owner occupied commercial real estate and commercial and industrial loans. As of September 30, 2023, a negative adjustment of $0.6 million was applied to the carrying value of the loans associated with the interest rate swap contract.

Total deposits decreased by $16.4 million, or 1.2%, to $1.41 billion as of September 30, 2023, from $1.42 billion as of September 30, 2022, and increased by $24.4 million, or 1.8%, from $1.38 billion at June 30, 2023. Noninterest-bearing deposits decreased by $115.2 million, or 14.9%, during the last year, and by $7.9 million, or 1.2%, since June 30, 2023. 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 in search of higher yields. Noninterest-bearing deposits represented 46.6% of total deposits on September 30, 2023.

Total shareholders' equity was $144.7 million at September 30, 2023, an increase of $29.6 million, or 25.8%, compared to September 30, 2022, and an increase of $5.5 million, or 3.9%, compared to June 30, 2023, due primarily to quarterly earnings, net of changes in accumulated other comprehensive income or loss. The accumulated other comprehensive loss component of equity increased $2.8 million during the past quarter, due to a $3.8 million increase in the accumulated other comprehensive loss on the investment securities portfolio, partially offset by a $1.0 million increase in the accumulated other comprehensive income associated with the interest rate swap contract on the investment securities portfolio. The accumulated other comprehensive loss increased by $0.2 million during the past year. The increase in accumulated other comprehensive loss is the result of a decline in the fair market value of our securities portfolio attributable to the rise in interest rates and not related to credit quality.

The Company continues to have excellent credit quality with zero nonperforming assets at September 30,  2023,  unchanged  from  June  30,  2023,  and  down  from  0.01%  at  September  30, 2022. Nonperforming assets remain at the lowest level reached in the last several years, at 0.00% of total assets as of September 30, 2023, unchanged from both June 30, 2023, and September 30, 2022.

Allowance for Credit Losses

The Company recognized a one-time cumulative adjustment to retained earnings of $1.4 million associated with the January 1, 2023, transition to the current expected credit loss ("CECL") model. The transition adjustment is the difference between the allowance for loan losses and allowance for unfunded commitments calculated under the incurred loss model at December 31, 2022, and the new allowance for credit losses ("ACL") and allowance for unfunded commitments calculated under the CECL methodology at the beginning of 2023. The ACL transition adjustment represents 4.8% of the total allowance for credit losses, or 7 basis points as a percentage of gross loans, as of the quarter ended September 30, 2023.

The ACL as a percentage of gross loans increased to 1.53% at September 30, 2023, from 1.48% at June 30, 2023, due to relatively stable economic conditions and loan portfolio credit quality over the past quarter.

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 11.05%, at September 30, 2023, 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 173 basis points from 9.32%, and increased by 8 basis points from 10.97%, as of the periods ended September 30, 2022, and June 30, 2023, 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 May 2, 2023, 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 Plan extension will expire on October 27, 2023, and the Company plans to extend the Plan for an additional six months, through April 26, 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 2023 the Company repurchased 77 shares under the 2022 10b5-1 Plan at an average price of $79.50. Since Plan inception the Company has repurchased 3,566 shares at an average price of $83.06.

About Mission Bancorp and Mission Bank

With $1.6 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, 2023			June 30, 2023		December 31, 2022			September 30, 2022			09/23 - 06/23		09/23 - 09/22
Assets
Cash and due from banks	$	55,737		$56,373		$	43,224		$	45,761		$                          (636)		$                       9,976
Interest earning deposits in other banks		111,459		62,349			89,062			201,169		49,110		(89,710)
Total cash and cash equivalents		167,196		118,722			132,286			246,930		48,474		(79,734)
Interest earning deposits maturing over ninety days		490		980			1,721			490		(490)		-
Investment securities available-for-sale, at fair value		238,090		252,205			250,328			228,297		(14,115)		9,793
Loans		1,160,351		1,163,416			1,069,384			1,053,459		(3,065)		106,892
Allowance for credit losses		(17,804)		(17,203)			(14,849)			(14,498)		(601)		(3,306)
Loan, net		1,142,547		1,146,213			1,054,535			1,038,961		(3,666)		103,586
Premises and equipment, net		3,246		3,282			3,112			3,279		(36)		(33)
Bank owned life insurance		21,139		21,006			20,606			20,483		133		656
Deferred tax asset, net		16,543		15,280			15,250			14,343		1,263		2,200
Interest receivable and other assets		25,862		21,732			18,688			18,507		4,130		7,355
Total Assets	$	1,615,113		$                   1,579,420		$	1,496,526		$	1,571,290		$                    35,693		$                     43,823
Liabilities and Shareholders' Equity
Deposits
Noninterest-bearing demand	$	655,459		$                      663,396		$	717,754		$	770,663		$                     (7,937)		$                   (115,204)
Interest bearing		750,260		717,952			621,289			651,468		32,308		98,792
Total deposits		1,405,719		1,381,348			1,339,043			1,422,131		24,371		(16,412)
Other borrowings		20,000		20,000			-			-		-		20,000
Subordinated debentures, net of issuance costs		21,845		21,828			21,792			21,774		17		71
Interest payable and other liabilities		22,883		17,070			11,906			12,356		5,813		10,527
Total Liabilities		1,470,447		1,440,246			1,372,741			1,456,261		30,201		14,186
Shareholders' Equity
Common stock		76,738		76,464			65,272			65,306		274		11,432
Retained earnings		90,823		82,847			79,986			72,402		7,976		18,421
Accumulated other comprehensive loss		(22,895)		(20,137)			(21,473)			(22,679)		(2,758)		(216)
Total shareholders' equity		144,666		139,174			123,785			115,029		5,492		29,637
Total Liabilities and Shareholders' Equity	$	1,615,113		$                  1,579,420		$	1,496,526		$	1,571,290		$                    35,693		$                     43,823
SBA Paycheck Protection Program Loans		693		741			884			836		(48)		(191)

 

MISSION BANCORP
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(Dollars in thousands)
		Three Months Ended								Variance					Nine Months Ended					Variance
		September 30, 2023		June 30, 2023			September 30, 2022			09/23 - 06/23		09/23 - 09/22			September 30, 2023			September 30, 2022		09/23 - 09/22
Interest and Dividend Income Loans	$	18,273		$                    17,428		$	13,314			$845		$                     4,959		$	51,429		$	35,034		$                   16,395
Investment securities		2,503		2,332			1,265			171		1,238			7,022			3,095		3,927
Other		1,547		783			1,313			764		234			3,318			2,122		1,196
Total interest and dividend income		22,323		20,543			15,892			1,780		6,431			61,769			40,251		21,518
Interest Expense
Other deposits		3,615		2,956			567			659		3,048			8,233			1,204		7,029
Time deposits		296		55			11			241		285			386			53		333
Total interest expense on deposits		3,911		3,011			578			900		3,333			8,619			1,257		7,362
Other borrowings		237		186			-			51		237			574			-		574
Subordinated debentures		268		268			268			-		-			803			803		-
Total interest expense		4,416		3,465			846			951		3,570			9,996			2,060		7,936
Net Interest Income		17,907		17,078			15,046			829		2,861			51,773			38,191		13,582
Provision for Credit Losses		(170)		(450)			(1,098)			280		928			(1,170)			(2,644)		1,474
Net Interest Income After Provision for Credit Losses		17,737		16,628			13,948			1,109		3,789			50,603			35,547		15,056
Non-Interest Income Gain on sale of premises and equipment		26		26			26			-		-			281			79		202
Gain on sale of branch		-		-			-			-		-			-			1,623		(1,623)
Service charges, fees and other income		1,016		967			1,116			49		(100)			2,955			3,659		(704)
Farmer Mac referral and servicing fees		280		237			238			43		42			774			795		(21)
SBA servicing fees and gain on sale of loans		115		191			50			(76)		65			382			237		145
Loss on sale of securities		-		-			-			-		-			(320)			-		(320)
Total non-interest income		1,437		1,421			1,430			16		7			4,072			6,393		(2,321)
Non-Interest Expense
Salaries and benefits		4,608		4,781			3,875			(173)		733			14,221			11,743		2,478
Professional services		1,296		1,214			915			82		381			3,568			2,263		1,305
Occupancy and equipment		604		545			548			59		56			1,762			1,574		188
Data processing and communication		366		354			354			12		12			1,079			1,074		5
Other		1,043		1,035			811			8		232			3,012			2,377		635
Total non-interest expense		7,917		7,929			6,503			(12)		1,414			23,642			19,031		4,611
Net Income Before Provision for Income Taxes		11,257		10,120			8,875			1,137		2,382			31,033			22,909		8,124
Provision for Income Taxes		3,281		2,438			2,492			(843)		(789)			8,346			6,239		2,107
Net Income	$	7,976		$                      7,682		$	6,383			$                       294		$                     1,593		$	22,687		$	16,670		$                     6,017

 

 

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 Nine Months Ended
		September 30, 2023		June 30, 2023			December 31, 2022			September 30, 2022			September 30, 2023			September 30, 2022
Ratio of net loans to total deposits		81.28 %		82.98 %			78.75 %			73.06 %			81.28 %			73.06 %
Return on average assets		1.97 %		1.99 %			1.95 %			1.63 %			1.95 %			1.45 %
Return on average equity		22.12 %		22.69 %			25.56 %			21.73 %			22.36 %			19.09 %
Net interest margin		4.67 %		4.68 %			4.64 %			4.06 %			4.71 %			3.51 %
Efficiency ratio		40.93 %		42.86 %			40.84 %			39.47 %			42.34 %			42.69 %
Non-interest expense as a percent of average assets		1.95 %		2.06 %			1.96 %			1.66 %			2.03 %			1.66 %
Non-interest income as a percent of average assets		0.35 %		0.37 %			0.42 %			0.37 %			0.35 %			0.56 %
Community Bank Leverage Ratio		11.05 %		10.97 %			10.09 %			9.32 %			11.05 %			9.32 %
Weighted average shares outstanding - basic*		2,476,278		2,465,034			2,427,692			2,426,890			2,459,516			2,419,865
Shares outstanding at period end - basic*		2,476,308		2,476,295			2,426,557			2,427,753			2,476,308			2,427,753
Earnings per share - basic	$	3.22		$                            3.12		$	3.12		$	2.63		$	9.22		$	6.89
Total assets	$	1,615,113		$                   1,579,420		$	1,496,526		$	1,571,290		$	1,615,113		$	1,571,290
Loans and leases net of deferred fees	$	1,160,351		$                   1,163,416		$	1,069,384		$	1,053,459		$	1,160,351		$	1,053,459
Noninterest-bearing demand deposits	$	655,459		$                      663,396		$	717,754		$	770,663		$	655,459		$	770,663
Total deposits	$	1,405,719		$                   1,381,348		$	1,339,043		$	1,422,131		$	1,405,719		$	1,422,131
Noninterest-bearing deposits as a percentage total deposits		46.63 %		48.03 %			53.60 %			54.19 %			46.63 %			54.19 %
Average total assets	$	1,608,872		$                   1,545,957		$	1,542,912		$	1,551,959		$	1,555,606		$	1,533,717
Average total equity	$	143,026		$                      135,776		$	117,738		$	116,526		$	135,646		$	116,738
Shareholders' equity / total assets		8.96 %		8.81 %			8.27 %			7.32 %			8.96 %			7.32 %
Book value per share	$	58.42		$                          56.20		$	51.01		$	47.38		$	58.42		$	47.38

*Outstanding shares adjusted for 5% dividend declared on April 27, 2023.

 

MISSION BANCORP
AVERAGE BALANCES AND RATES
(Unaudited)
(Dollars in thousands)
	For the Quarter Ended				For the Quarter Ended				For the Quarter Ended
	September 30, 2023				June 30, 2023				September 30, 2022
	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	$                           106,227	$            1,418	5.30 %		$                            51,990	$               655	5.06 %		$                          227,555	$            1,234	2.16 %
Investment securities	247,655	2,503	4.01 %		256,025	2,332	3.65 %		222,712	1,265	2.25 %
Loans	1,158,638	18,273	6.26 %		1,146,727	17,428	6.10 %		1,012,304	13,314	5.22 %
Other earning assets	8,843	129	5.77 %		8,533	128	6.01 %		7,394	79	4.27 %
Total Earning Assets	1,521,363	22,323	5.82 %		1,463,275	20,543	5.63 %		1,469,965	15,892	4.29 %
Non-interest earning assets	87,509				82,682				81,994
Total Assets	$                       1,608,872				$                      1,545,957				$                      1,551,959
Liabilities and Capital
Interest-bearing deposits
Interest-bearing transaction accounts	$                          670,458	$           3,590	2.12 %		$                          638,970	$           2,932	1.84 %		$                          559,454	$              567	0.40 %
Time deposits	44,157	296	2.66 %		26,197	55	0.84 %		20,713	11	0.21 %
1031 Exchange deposits	27,650	25	0.36 %		30,315	24	0.32 %		74,605	-	0.00 %
Total interest-bearing deposits	742,265	3,911	2.09 %		695,482	3,011	1.74 %		654,772	578	0.35 %
Borrowed funds
Other borrowings	20,000	237	4.70 %		15,824	186	4.72 %		-	-	0.00 %
Subordinated debt	21,835	268	4.86 %		21,817	268	4.93 %		21,764	268	4.88 %
Total interest-bearing liabilities	784,100	4,416	2.23 %		733,123	3,465	1.89 %		676,536	846	0.50 %
Noninterest-bearing deposits	662,222				661,669				748,354
Total Funding	1,446,322	4,416	1.21 %		1,394,792	3,465	1.00 %		1,424,890	846	0.24 %
Other noninterest-bearing liabilities	19,524				15,388				10,543
Total Liabilities	1,465,846				1,410,180				1,435,433
Total Capital	143,026				135,777				116,526
Total Liabilities and Capital	$                      1,608,872				$                      1,545,957				$                      1,551,959
Net Interest Margin	4.67 %	4.68 %				4.06 %
Net Interest Spread	4.61 %	4.63 %				4.05 %

 

MISSION BANCORP
LOAN DETAIL
(Unaudited)
(Dollars in thousands)
											Variance
	September 30, 2023			June 30, 2023			December 31, 2022		September 30, 2022		09/23 - 06/23		09/23 - 09/22
Loans
Construction and land development	$                            41,970		$	53,393		$	61,621		$                         68,246		$                          (11,423)		$                          (26,276)
Secured by farmland	139,630			138,581			118,085		113,610		1,049		26,019
Residential 1 to 4 units	48,059			45,210			44,595		40,219		2,849		7,840
Home equity lines of credit	-			-			53		53		-		(53)
Multi-family	36,084			34,370			31,590		20,879		1,714		15,206
Owner occupied commercial real estate	484,497			475,269			450,721		446,477		9,228		38,020
Non-owner occupied commercial real estate	175,520			180,206			157,343		152,314		(4,686)		23,206
Commercial and industrial	159,993			155,507			130,222		138,520		4,486		21,473
Agricultural production	75,620			79,470			75,771		74,596		(3,850)		1,024
Other loans	(1,022)			1,410			(617)		(1,456)		(2,431)		433
Total Loans	$                     1,160,351		$	1,163,416		$	1,069,384		$                      1,053,458		$                            (3,065)		$                         106,892

 

MISSION BANCORP
Credit Quality
(Unaudited)
(Dollars in thousands)
	September 30, 2023			June 30, 2023			December 31, 2022			September 30, 2022
Asset quality
Loans past due 90 days or more and accruing interest	$	-		$	104		$	-		$	-
Nonaccrual loans	$	-		$	-		$	58		$	62
Restructured loans
Nonperforming restructured loans	$	-		$	-		$	58		$	62
Performing restructured loans	$	-		$	-		$	-		$	-
Other real estate owned	$	-		$	-		$	-		$	-
Total nonperforming assets	$	-		$	-		$	58		$	62
Allowance for credit losses to total loans		1.53 %			1.48 %			1.39 %			1.38 %
Allowance for credit losses to nonperforming loans		N/A			N/A			25602 %			23384 %
Nonaccrual loans to total loans		0.00 %			0.00 %			0.01 %			0.01 %
Nonperforming assets to total assets		0.00 %			0.00 %			0.00 %			0.00 %

 

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SOURCE Mission Bank

FAQ

What is the net income of Mission Bancorp for Q3 2023?

The net income of Mission Bancorp for Q3 2023 is $8.0 million.

How much did gross loans increase by?

Gross loans increased by 10.1% to $1.16 billion.

What is the net interest income for Q3 2023?

The net interest income for Q3 2023 is $17.9 million.

What is the provision for credit losses for Q3 2023?

The provision for credit losses for Q3 2023 is $0.2 million.

What is the non-interest income for Q3 2023?

The non-interest income for Q3 2023 is $1.4 million.