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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
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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.
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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.
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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.
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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.
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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) | |||||||||||||||||||||
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| | | | | | | | | | | | | | | | 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 | |||||||
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| 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 | |||||||||
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| | | | | | | | | | | | | | | | | | | ||||
| SBA Paycheck Protection Program Loans | 597 | | 645 | | 693 | | 789 | | (48) | | (192) | ||||||||||
| MISSION BANCORP | ||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||||||
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| | | | | | | 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) | ||||||||||
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| | | | | As of or for the Three Months Ended | ||||||
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| | | | | 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