Mission Bancorp Reports First Quarter Earnings of $7.3 Million. Annual Loan Growth of 8.9%.

Rhea-AI Summary

Mission Bancorp reported first-quarter earnings of $7.3 million with annual loan growth of 8.9%. The net income available to common shareholders was $2.90 per diluted common share, showing a strong start to the year. Despite challenges in the banking industry due to inflationary pressures and competition for deposits, Mission maintained conservative balance sheet management and ample liquidity. Key financial highlights include gross loans increasing by $100.2 million, total deposits increasing by $59.7 million, and non-interest-bearing deposits representing 43.3% of total deposits. The ACL as a percentage of gross loans increased to 1.54%. Net interest income was $17.7 million, with a net interest margin of 4.54%. Non-interest income was $1.6 million, and non-interest expense increased by $0.5 million. The operating efficiency ratio was 44.0%, and the return on average equity was 18.3%. Total assets increased by $92.6 million, and total shareholders' equity was $165.1 million. The ACL increased to 1.54% to address ongoing economic uncertainties. The Bank's Community Bank Leverage Ratio was 11.59%, exceeding the requirement to be considered a 'well-capitalized' financial institution.

Positive

• Gross loans increased by $100.2 million, or 8.9%, to $1.23 billion as of March 31, 2024.
• Total deposits increased by $59.7 million, or 4.4%, to $1.42 billion as of March 31, 2024.
• Noninterest-bearing deposits were $612.9 million, representing 43.3% of total deposits at March 31, 2024.
• The ACL as a percentage of gross loans increased to 1.54% at March 31, 2024.
• Net interest income was $17.7 million, with a net interest margin of 4.54% for the first quarter of 2024.
• Non-interest income for the first quarter of 2024 was $1.6 million.
• Non-interest expense increased by $0.5 million to $8.5 million for the quarter ended March 31, 2024.
• The Company's operating efficiency ratio increased to 44.0% for the first quarter of 2024.
• The return on average equity for the first quarter of 2024 was 18.3%.
• Total assets increased by $92.6 million to $1.64 billion at March 31, 2024.
• The ACL increased to 1.54% to address ongoing economic uncertainties.
• The Bank's Community Bank Leverage Ratio was 11.59%, exceeding the requirement to be considered a 'well-capitalized' financial institution.

Negative

• None.

BAKERSFIELD, Calif., April 22, 2024 /PRNewswire/ -- Mission Bancorp ("Mission" or the "Company") (OTC Pink: MSBC), a bank holding company and parent of Mission Bank (the "Bank"), reported unaudited net income available to common shareholders of $7.3 million, or $2.90 per diluted common share, for the first quarter of 2024, compared to net income available to common shareholders of $7.0 million, or $2.79 per diluted common share, for the first quarter of 2023, and net income available to common shareholders of $7.8 million, or $3.09 per diluted common share, for the linked quarter.

"We are pleased to report a strong start to the year generating net income of $7.3 million. Earnings continue to be fueled and supported by our robust loan growth," said A.J. Antongiovanni, President, and Chief Executive Officer of Mission Bancorp. Mr. Antongiovanni continued, "Despite the challenging environment for the banking industry, Mission has been able to serve our customer's demands due to our conservative balance sheet management and ample liquidity. The inflationary environment continues to impact the banking industry as a whole, lowering margins and intensifying the competition for deposits. Our commitment to our customer relationship and conservative principles will allow us to continue to drive industry leading results amid uncertain economic conditions."

First Quarter 2024 Financial Highlights

• Gross loans increased by $100.2 million, or 8.9%, to $1.23 billion as of March 31, 2024, compared to $1.13 billion at March 31, 2023, and increased by $19.4 million, or 1.6%, compared to $1.21 billion at December 31, 2023.
• Total deposits increased by $59.7 million, or 4.4%, to $1.42 billion as of March 31, 2024, compared with $1.36 billion a year earlier, and decreased by $19.8 million, or 1.4%, from $1.44 billion as of December 31, 2023. Noninterest-bearing deposits were $612.9 million and represent 43.3% of total deposits at March 31, 2024.
• The allowance for credit losses ("ACL") as a percentage of gross loans increased from 1.47% at March 31, 2023, to 1.54% at March 31, 2024.
• Credit quality remains strong with nonaccrual loans representing 0.06% of total gross loans at March 31, 2024, up from 0.00% as of March 31, 2023.
• The Community Bank Leverage Ratio for the Bank as of March 31, 2024, was 11.59%, compared to 10.70% at March 31, 2023.

Net Income Available to Common Shareholders

Net income available to common shareholders for the first quarter of 2024 was $7.3 million, or $2.90 per diluted common share, compared with $7.8 million, or $3.09 per diluted common share, for the linked quarter ended December 31, 2023. Net income available to common shareholders was $7.0 million, or $2.79 per diluted common share, for the first quarter of 2023. Net income available to common shareholders decreased $0.4 million, or 5.6%, compared to the linked quarter, and increased $0.3 million, or 4.5%, compared to the same prior year period.

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

Net Interest Income

Net interest income was $17.7 million, or 4.54%, of average earning assets ("net interest margin"), for the first quarter of 2024, compared with $16.8 million, or a net interest margin of 4.78%, for the same period a year earlier, and $17.8 million, or a net interest margin of 4.58%, for the quarter ended December 31, 2023.

Net interest income increased by $0.9 million, or 5.4%, compared to the same prior year period driven by growth in the Company's total earning assets along with a significant increase in yields on earning assets. Loan interest income and fee accretion from the first quarter of 2023 to the current quarter increased by $3.6 million. In addition to the increase in loan interest income, the Company also experienced increased interest income from interest earning deposits in other banks and investment securities of $0.6 million and $0.4 million, respectively. Offsetting these increases, interest expense for the current quarter increased $3.7 million, compared to the same prior year period, primarily due to a $3.6 million increase in interest expense on deposits.

Net interest income decreased for the quarter ended March 31, 2024, compared to the linked quarter by $0.1 million, or 0.7%, due primarily to increased interest expense on deposits which outpaced increased interest income. Interest expense on deposits increased $0.6 million, for the current quarter, compared to the linked quarter, due to increased costs on interest bearing deposits and higher average balances. Interest income increased $0.5 million, for the current quarter, compared to the linked quarter, primarily due to a shift in the earning asset mix to higher yielding loans, increased yields on loans, and growth in average quarterly loan balances.

The net interest margin was 4.54% for the quarter ended March 31, 2024, compared to 4.78% for the same prior year period, and 4.58% for the linked quarter ended December 31, 2023. Asset yields have increased 67 basis points, but the cost of funds has risen 96 basis points leading to the year-over-year 24 basis point decline in the quarterly net interest margin. Average interest-bearing liabilities have grown $183.3 million outpacing the growth in average interest-earning assets of $136.5 million, when compared to the same prior year period. It is worth noting that the significant rise in the Company's cost of funds was expected given we remain in a "higher for longer" rate environment with increased competition and non-interest bearing deposits shifting into interest bearing accounts; however, comparing to a peer group consisting of all California Commercial Banks from S&P Capital IQ as of December 31, 2023, Mission's cost of funds had risen 36% less than the group average of 132 basis points, while still achieving annual deposit growth of 7.3% for 2023.

The yield on loans, investment securities, and interest earning deposits in other banks have increased by 56 basis points to 6.44%, 86 basis points to 4.36%, and 88 basis points to 5.31%, respectively. Additionally, average balances on loans increased $122.0 million, or 11.3%, average balances on investment securities declined $14.9 million, or 5.9%, and average balances on interest bearing deposits in other banks increased $27.8 million, or 34.2%, when compared to the same prior year period.

The 4 basis point decrease in the net interest margin for the first quarter of 2024, compared to the linked quarter is primarily attributable to both higher average balances and costs of interest-bearing liabilities. The Company's yields on earning assets increased 13 basis points since the fourth quarter, average interest-bearing liabilities balances and costs increased by $25.0 million and 24 basis points, respectively, which led to net interest margin compression during the quarter. The average balances on loans increased $31.0 million, average investment securities increased $3.9 million, while average interest earning deposits in other banks decreased by $15.4 million during the quarter.

The cost of interest-bearing deposits increased 25 basis points to 2.65% for the quarter ended March 31, 2024, compared to the linked quarter ended December 31, 2023, and 155 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 with notional balances totaling $108.0 million, to hedge future interest rate increases. These swap contracts consist of a $50.0 million hedge on the commercial real estate loan portfolio with a three-year maturity and a $58.0 million hedge on the municipal investment security portfolio with a five-year maturity. For the quarter ending on March 31, 2024, the interest rate swap contract associated with the loan portfolio generated an additional $0.1 million in loan interest income and added 5 basis points to the yield on loans, compared to $0.2 million and 5 basis points for the linked quarter, respectively. The interest rate swap contract on the investment securities portfolio added $0.2 million in investment securities interest income and added 38 basis points to the yield on investment securities, compared to $0.2 million and 42 basis points for the prior quarter ended December 31, 2023, respectively. Combined, the interest rate swap contracts generated $0.4 million of additional interest income and 10 basis points of additional earning asset yield during the quarter ended March 31, 2024.

Provision for Credit Losses

A $0.7 million provision for credit losses was recorded for the quarter ended March 31, 2024, compared to $0.3 million for the linked-quarter and $0.6 million for the same period a year ago. The Company's quarterly credit loss provisions over the past year have been recorded primarily to account for growth in the loan portfolio and changes in macro-economic conditions which impact the calculated ACL under the current expected credit loss ("CECL") model, rather than in response to changing conditions in the Company's loan portfolio, which have remained stable, demonstrating a low credit risk profile during the past twelve months.

Non-Interest Income

Non-interest income for the first quarter of 2024 was $1.6 million, compared to $1.3 million for the linked quarter, and $1.2 million for the same period a year earlier. The increase in non-interest income when compared to the linked quarter is primarily attributable to a decrease in loss on sale of securities associated with a $0.4 million loss recorded in the linked quarter and increase in SBA servicing fees and gain on sale of loans, which were partially offset by decreased service charges, fees, and other income. The increase in non-interest income when compared to the same period a year earlier was primarily due to a decrease in loss on sale of securities associated with a $0.3 million loss recorded in the same prior year period, and increase in SBA servicing fees and gain on sale of loans, which was partially offset by a decrease in gain on sale of premises and equipment associated with a gain recorded in the same prior year period.

Non-Interest Expense

Non-interest expense increased by $0.5 million, or 6.4%, to $8.5 million for the quarter ended March 31, 2024, compared to $8.0 million for the linked quarter, and increased by $0.7 million, or 9.0%, compared to $7.8 million for the quarter ended March 31, 2023.

The increase in non-interest expense for the first quarter of 2024 compared to the linked quarter was primarily due to a $0.9 million increase in salaries and benefits expense, partially offset by a $0.3 million decrease in professional services expense. The increase in salaries and benefits expense was primarily the result of estimated employee incentive compensation accruals and payroll taxes. The decrease in professional services expense was primarily due to decreased legal expenses and other professional services.

The increase in non-interest expense for the first quarter of 2024 compared to the first quarter of 2023 was primarily due to a $0.6 million increase in salaries and benefits expense associated with increased base compensation expense, payroll taxes, and estimated employee incentive compensation accruals.

Operating Efficiency

The Company's operating efficiency ratio increased to 44.0% for the first quarter of 2024, compared to 43.3% for the first quarter of 2023, and increased from 41.7% compared to the linked quarter. Total non-interest expense as a percentage of average assets, another measure of the Company's efficiency, was 2.07% for the first quarter of 2024, compared to 2.09% for the first quarter of 2023, and 1.94% for the quarter ended December 31, 2023.

Income Taxes

Income tax expense was $2.8 million for the first quarter of 2024, compared to $2.6 million for the quarter ended March 31, 2023, and $3.1 million for the linked quarter ended December 31, 2023. The Company's effective tax rate for the first quarter of 2024 was 27.5%, compared to 27.2% for the same period a year ago, and 28.8% for the quarter ended December 31, 2023. 

Asset and Equity Returns

The return on average equity for the first quarter of 2024 was 18.3%, down from 22.3% for the same prior year period, and down from 20.9% for the linked quarter. The quarterly return on average assets for the first quarter of 2024 was 1.79%, declining from 1.89% for both the same prior year period, and the linked quarter.

The decline in quarterly returns on both average equity and average assets for the quarter ended March 31, 2024, compared to the first quarter of 2023, is primarily attributable to the 25.8% growth in average equity and the 8.9% growth in average assets, which outpaced the 4.5% increase in quarterly net income.

The decrease in quarterly returns on both average equity and average assets for the quarter ended March 31, 2024, compared to the linked quarter, is primarily attributable the 5.6% decrease in net income.

Balance Sheet

Total assets increased by $92.6 million, or 6.0%, to $1.64 billion at March 31, 2024, compared to March 31, 2023, and decreased by $11.8 million, or 0.7%, compared to December 31, 2023. Cash and cash equivalents increased by $2.9 million, or 1.6%, to $119.0 million at March 31, 2024, compared to the same prior year period, and decreased by $30.8 million, or 20.5%, compared to December 31, 2023. The nominal increase in the Company's cash position over the last year is primarily the result of deposit growth, earnings, and bond portfolio repayment and amortization, which narrowly outpaced loan portfolio growth. The decrease in the Company's cash position over the past quarter is primarily due to loan growth, which outpaced deposit growth for the quarter.

Investment securities decreased by $18.7 million or 7.2%, to $240.4 million at March 31, 2024, compared to $259.1 million at March 31, 2023, and decreased by $2.3 million, or 0.9%, compared to $242.7 million at December 31, 2023. The decrease in the investment securities portfolio over the past year is attributable to repayments and amortization of the bond portfolio to supplement significant lending demand. The decrease in the investment securities portfolio during the first quarter of 2024, compared to the linked quarter is primarily attributable to bond portfolio repayments and amortization.

Loans increased by $100.2 million, or 8.9%, to $1.23 billion at March 31, 2024, compared to March 31, 2023, and increased by $19.4 million, or 1.6%, compared to December 31, 2023. Loan growth during the last year has been diversified across the portfolio, with notable growth primarily concentrated in owner and non-owner occupied commercial real estate, commercial and industrial, and agricultural production segments of the loan portfolio, which were partially offset by the contraction in construction and land development loans. Loan growth during the last quarter has been primarily concentrated in owner and non-owner occupied commercial real estate and commercial and industrial segments of the loan portfolio, which were partially offset by a decrease in agricultural production loans.

Total deposits increased by $59.7 million, or 4.4%, to $1.42 billion as of March 31, 2024, from $1.36 billion as of March 31, 2023, and decreased by $19.8 million, or 1.4%, from $1.44 billion at December 31, 2023. Noninterest-bearing deposits decreased by $78.8 million, or 11.4%, during the last year, and by $32.4 million, or 5.0%, since December 31, 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 43.25% of total deposits on March 31, 2024.

Total shareholders' equity was $165.1 million at March 31, 2024, an increase of $33.3 million, or 25.2%, compared to March 31, 2023, and an increase of $8.3 million, or 5.3%, compared to December 31, 2023, due primarily to quarterly earnings, net of changes in accumulated other comprehensive income or loss. The accumulated other comprehensive loss component of equity decreased $0.2 million during the past quarter due to a $0.8 million increase in the accumulated other comprehensive gain associated with the interest rate swap contract which is a hedge on interest rates of the investment securities portfolio, partially offset by a $0.6 million decrease in the accumulated other comprehensive loss on the investment securities portfolio. The accumulated other comprehensive loss decreased by $0.8 million during the past year resulting from an increase in the fair market value of the interest rate swap contract on the investment securities portfolio, and to a lesser extent, an increase in the fair market value of our securities portfolio, attributable to interest rates and not related to credit quality.

Nonperforming assets were $0.7 million at Mach 31, 2024, up from $0.4 million at December 31, 2023, and up from $0.1 million at March 31, 2023. Nonperforming assets as a percentage of total assets were 0.04% at March 31, 2024, up from 0.02% at December 31, 2023, and up from 0.00% at March 31, 2023. Non-accrual loans currently recorded have been fully reserved for, in line with Management's prudent credit management standards.

Allowance for Credit Losses

The allowance for credit losses ("ACL") as a percentage of gross loans increased to 1.54% at March 31, 2024, from 1.50% at December 31, 2023, and from 1.47% at March 31, 2023. The rise in our ACL as a percentage of gross loans over the last twelve months is a result of prudent management amid ongoing economic uncertainties stemming from sustained inflationary pressures and elevated interest rates. The increase illustrates Management's proactive approach to risk management and ensures resilience in dynamic market conditions.

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 11.59%, at March 31, 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 89 basis points from 10.70%, and increased by 26 basis points from 11.33%, as of the periods ended March 31, 2023, and December 31, 2023, respectively. Strong earnings over the past year and quarter outpaced the growth in average assets, resulting in an increase in regulatory capital ratios.

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
							March 31, 2024		December 31, 2023		September 30, 2023		March 31, 2023		03/24 - 12/23		03/24 - 03/23
Assets
	Cash and due from banks						$                           38,142		$                           39,679		$                           55,737		$                           48,207		$                (1,537)		$              (10,065)
	Interest earning deposits in other banks						80,846		110,104		111,459		67,862		(29,258)		12,984
		Total cash and cash equivalents					118,988		149,783		167,196		116,069		(30,795)		2,919
	Interest earning deposits maturing over ninety days						490		490		490		1,470		-		(980)
	Investment securities available-for-sale, at fair value						240,382		242,681		238,090		259,114		(2,299)		(18,732)
	Loans						1,229,803		1,210,416		1,160,351		1,129,607		19,387		100,196
	Allowance for credit losses						(18,931)		(18,206)		(17,804)		(16,602)		(725)		(2,329)
	Loan, net						1,210,872		1,192,210		1,142,547		1,113,005		18,662		97,867
	Premises and equipment, net						3,133		3,175		3,246		3,033		(42)		100
	Bank owned life insurance						21,435		21,285		21,139		20,730		150		705
	Deferred tax asset, net						15,501		15,594		16,543		14,995		(93)		506
	Interest receivable and other assets						29,320		26,751		25,862		19,076		2,569		10,244
Total Assets							$                       1,640,121		$                       1,651,969		$                       1,615,113		$                       1,547,492		$              (11,848)		$                92,629
Liabilities and Shareholders' Equity
	Deposits
		Noninterest-bearing demand					$                         612,876		$                         645,256		$                         655,459		$                         691,722		$              (32,380)		$              (78,846)
		Interest bearing					804,088		791,511		750,260		665,546		12,577		138,542
			Total deposits				1,416,964		1,436,767		1,405,719		1,357,268		(19,803)		59,696
		Other borrowings					20,000		20,000		20,000		25,000		-		(5,000)
		Subordinated debentures, net of issuance costs					21,881		21,863		21,845		21,810		18		71
		Interest payable and other liabilities					16,215		16,625		22,883		11,615		(410)		4,600
Total Liabilities							1,475,060		1,495,255		1,470,447		1,415,693		(20,195)		59,367
Shareholders' Equity
		Common stock					77,743		76,965		76,738		65,646		778		12,097
		Retained earnings					105,953		98,605		90,823		85,609		7,348		20,344
		Accumulated other comprehensive loss					(18,635)		(18,856)		(22,895)		(19,456)		221		821
			Total shareholders' equity				165,061		156,714		144,666		131,799		8,347		33,262
	Total Liabilities and Shareholders' Equity						$                       1,640,121		$                       1,651,969		$                       1,615,113		$                       1,547,492		$              (11,848)		$                92,629
SBA Paycheck Protection Program Loans							597		645		693		789		(48)		(192)

 

MISSION BANCORP
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(Dollars in thousands)
						Three Months Ended
												Variance
						March 31, 2024		December 31, 2023		March 31, 2023		03/24 - 12/23		03/24 - 03/23
Interest and Dividend Income
	Loans					$                             19,319		$                             18,521		$                             15,728		$                   798		$                 3,591
	Investment securities					2,584		2,583		2,187		1		397
	Other					1,597		1,925		988		(328)		609
		Total interest and dividend income				23,500		23,029		18,903		471		4,597
Interest Expense
	Other deposits					4,622		4,241		1,662		381		2,960
	Time deposits					675		466		35		209		640
		Total interest expense on deposits				5,297		4,707		1,697		590		3,600
	Other borrowings					234		237		151		(3)		83
	Subordinated debentures					268		268		268		-		-
		Total interest expense				5,799		5,212		2,116		587		3,683
Net Interest Income						17,701		17,817		16,787		(116)		914
Provision for Credit Losses						(675)		(250)		(550)		(425)		(125)
Net Interest Income After Provision
	for Credit Losses					17,026		17,567		16,237		(541)		789
Non-Interest Income
	Gain (loss) on sale of premises and equipment					-		26		228		(26)		(228)
	Gain on sale of branch					-		-		-		-		-
	Service charges, fees and other income					942		1,200		971		(258)		(29)
	Farmer Mac referral and servicing fees					293		389		258		(96)		35
	SBA servicing fees and gain on sale of loans					375		146		77		229		298
	Loss on sale of securities					(11)		(417)		(320)		406		309
		Total non-interest income				1,599		1,344		1,214		255		385
Non-Interest Expense
	Salaries and benefits					5,402		4,498		4,831		904		571
	Professional services					975		1,319		1,059		(344)		(84)
	Occupancy and equipment					572		587		613		(15)		(41)
	Data processing and communication					397		431		358		(34)		39
	Other					1,148		1,151		934		(3)		214
		Total non-interest expense				8,494		7,986		7,795		508		699
Net Income Before Provision for Income Taxes						10,131		10,925		9,656		(794)		475
Provision for Income Taxes						2,783		3,143		2,627		(360)		156
Net Income						$                              7,348		$                              7,782		$                              7,029		$                  (434)		$                    319

 

MISSION BANCORP
FINANCIAL HIGHLIGHTS
(Unaudited)
(Dollars in thousands, except per share data)
				As of or for the Three Months Ended
				March 31, 2024		December 31, 2023		September 30, 2023		March 31, 2023
Ratio of total loans to total deposits				86.79 %		84.25 %		82.54 %		83.23 %
Return on average assets				1.79 %		1.89 %		1.97 %		1.89 %
Return on average equity				18.31 %		20.87 %		22.12 %		22.28 %
Net interest margin				4.54 %		4.58 %		4.67 %		4.78 %
Efficiency ratio				44.01 %		41.68 %		40.93 %		43.30 %
Non-interest expense as a percent of average assets				2.07 %		1.94 %		1.95 %		2.09 %
Non-interest income as a percent of average assets				0.39 %		0.33 %		0.35 %		0.33 %
Community Bank Leverage Ratio				11.59 %		11.33 %		11.05 %		10.70 %
Weighted average shares outstanding - basic*				2,487,459		2,475,946		2,476,278		2,436,932
Weighted average shares outstanding - diluted*				2,530,261		2,522,119		2,520,175		2,517,472
Shares outstanding at period end - basic*				2,475,744		2,475,744		2,476,308		2,441,965
Earnings per share - basic				$                                 2.95		$                                 3.14		$                                  3.22		$                                 2.88
Earnings per share - diluted				$                                 2.90		$                                 3.09		$                                  3.16		$                                 2.79
Total assets				$                        1,640,121		$                        1,651,969		$                         1,615,113		$                        1,547,492
Loans and leases net of deferred fees				$                        1,229,803		$                        1,210,416		$                         1,160,351		$                        1,129,607
Noninterest-bearing demand deposits				$                           612,876		$                           645,256		$                            655,459		$                           691,722
Total deposits				$                        1,416,964		$                        1,436,767		$                         1,405,719		$                        1,357,268
Noninterest-bearing deposits as a percentage total deposits				43.25 %		44.91 %		46.63 %		50.96 %
Average total assets				$                        1,645,777		$                        1,633,606		$                         1,608,872		$                        1,510,912
Average total equity				$                           160,998		$                           147,914		$                            143,026		$                           127,971
Shareholders' equity / total assets				10.06 %		9.49 %		8.96 %		8.52 %
Book value per share				$                               66.67		$                               63.30		$                                58.42		$                               53.97
*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
					March 31, 2024				December 31, 2023				March 31, 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				$                  109,193	$       1,442	5.31 %		$                  124,623	$       1,736	5.53 %		$                    81,362	$          888	4.43 %
	Investment securities				238,677	2,584	4.36 %		234,766	2,583	4.37 %		253,506	2,187	3.50 %
	Loans				1,206,486	19,319	6.44 %		1,175,505	18,521	6.25 %		1,084,510	15,728	5.88 %
	Other earning assets				8,971	155	6.92 %		8,926	189	8.42 %		7,445	100	5.43 %
		Total Earning Assets			1,563,327	23,500	6.05 %		1,543,820	23,029	5.92 %		1,426,823	18,903	5.38 %
	Non-interest earning assets				82,450				89,786				84,089
		Total Assets			$                1,645,777				$                1,633,606				$                1,510,912
Liabilities and Capital
	Interest-bearing deposits
		Interest-bearing transaction accounts			$                  684,759	$       4,498	2.64 %		$                  682,671	$       4,145	2.41 %		$                  571,281	$       1,657	1.18 %
		Time deposits			73,280	675	3.71 %		57,985	466	3.19 %		24,088	35	0.59 %
		1031 Exchange deposits			44,932	124	1.11 %		37,324	96	1.02 %		32,907	5	0.06 %
			Total interest-bearing deposits		802,971	5,297	2.65 %		777,980	4,707	2.40 %		628,276	1,697	1.10 %
	Borrowed funds
		Other borrowings			20,000	234	4.71 %		20,000	237	4.70 %		11,467	151	5.33 %
		Subordinated debt			21,870	268	4.92 %		21,852	268	4.86 %		21,799	268	4.99 %
			Total interest-bearing liabilities		844,841	5,799	2.76 %		819,832	5,212	2.52 %		661,542	2,116	1.30 %
	Noninterest-bearing deposits				622,225				648,784				707,121
			Total Funding		1,467,066	5,799	1.59 %		1,468,616	5,212	1.41 %		1,368,663	2,116	0.63 %
	Other noninterest-bearing liabilities				17,713				17,076				14,278
		Total Liabilities			1,484,779				1,485,692				1,382,941
		Total Capital			160,998				147,914				127,971
			Total Liabilities and Capital		$                1,645,777				$                1,633,606				$                1,510,912
	Net Interest Margin				4.54 %				4.58 %				4.78 %
	Net Interest Spread				4.46 %				4.51 %				4.75 %

 

MISSION BANCORP
LOAN DETAIL
(Unaudited)
(Dollars in thousands)
															Variance
							March 31, 2024		December 31, 2023		September 30, 2023		March 31, 2023		03/24 - 12/23		03/24 - 03/23
	Loans
		Construction and land development					$                   50,727		$                      49,682		$                      41,970		$                      55,065		$                     1,045		$                    (4,338)
		Secured by farmland					141,391		142,778		140,194		134,616		(1,387)		6,775
		Residential 1 to 4 units					49,902		49,299		48,059		41,116		603		8,786
		Multi-family					35,857		35,808		36,084		35,239		49		618
		Owner occupied commercial real estate					503,491		493,706		484,497		468,039		9,785		35,452
		Non-owner occupied commercial real estate					188,085		183,047		175,520		177,371		5,038		10,714
		Commercial and industrial					173,185		165,455		160,397		141,510		7,730		31,675
		Agricultural production					89,406		92,679		75,620		79,071		(3,273)		10,335
		Other loans					165		233		270		140		(68)		25
		Net Deferred Fees-Costs					(2,406)		(2,271)		(2,260)		(2,560)		(135)		154
		Total Loans					$               1,229,803		$                 1,210,416		$                 1,160,351		$                 1,129,607		$                   19,387		$                  100,196

 

MISSION BANCORP
Credit Quality
(Unaudited)
(Dollars in thousands)
						March 31, 2024		December 31, 2023		September 30, 2023		March 31, 2023
Asset quality
Loans past due 90 days or more and accruing interest						$                          -		$                             -		$                            -		$                        104
Nonaccrual loans						$                     714		$                        350		$                            -		$                          53
Restructured loans
	Nonperforming restructured loans					$                          -		$                             -		$                            -		$                          53
	Performing restructured loans					$                          -		$                             -		$                            -		$                             -
Other real estate owned						$                          -		$                             -		$                            -		$                             -
Total nonperforming assets						$                     714		$                        350		$                            -		$                          53
Allowance for credit losses to total loans						1.54 %		1.50 %		1.53 %		1.47 %
Allowance for credit losses to nonperforming loans						2651.40 %		5201.71 %		N/A		31325 %
Nonaccrual loans to total loans						0.06 %		0.03 %		0.00 %		0.00 %
Nonperforming assets to total assets						0.04 %		0.02 %		0.00 %		0.00 %

 

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SOURCE Mission Bank

FAQ

What were Mission Bancorp's first quarter earnings in 2024?

Mission Bancorp reported first-quarter earnings of $7.3 million.

How much did gross loans increase by as of March 31, 2024?

Gross loans increased by $100.2 million, or 8.9%, to $1.23 billion.

What was the ACL as a percentage of gross loans at March 31, 2024?

The ACL as a percentage of gross loans increased to 1.54% at March 31, 2024.

What was the net interest income for the first quarter of 2024?

Net interest income was $17.7 million, with a net interest margin of 4.54%.

What was the return on average equity for the first quarter of 2024?

The return on average equity for the first quarter of 2024 was 18.3%.