BAKERSFIELD, Calif., Jan. 30, 2026 /PRNewswire/ -- Mission Bancorp ("Mission" or the "Company") (OTC Pink: MSBC), a bank holding company and parent of Mission Bank (the "Bank"), reported unaudited net income available to common shareholders of $8.2 million, or $2.88 per diluted common share, for the fourth quarter of 2025, compared to net income available to common shareholders of $7.7 million, or $2.72 per diluted common share, for the fourth quarter of 2024, and net income available to common shareholders of $8.6 million, or $3.05 per diluted common share, for the linked quarter. Unaudited net income for the year 2025 was $27.1 million, or $9.55 per diluted common share, compared to net income available to common shareholders of $30.1 million for 2024, or $10.73 per diluted common share.
"We are pleased to announce a strong close to 2025 with 13.2% loan growth year-over-year, contributing to margin expansion in all four quarters of 2025" said Mission Bank President and CEO A.J. Antongiovanni. "That growth, combined with an improving yield curve, allowed us to increase net interest income in the fourth quarter and year-over-year despite the Fed's continuing interest rate cuts. We are also happy to report fourth quarter earnings of $8.2 million, representing a 6.3% increase over the same quarter last year. As we kick off 2026, we are proud to announce the onboarding of our new team in North San Luis Obispo County. Led by Mark Pearce, a 30-year industry veteran, this expansion strengthens our existing services to farmers, ranchers, and business owners on the Central Coast."
Fourth Quarter 2025 Financial Highlights
- Gross loans increased by $169.9 million, or 13.2%, to $1.46 billion as of December 31, 2025, compared to $1.29 billion as of December 31, 2024, and increased by $44.1 million, or 3.1%, compared to September 30, 2025, balances.
- Total deposits increased by $7.0 million, or 0.4%, to $1.66 billion as of December 31, 2025, compared to $1.65 billion a year earlier, and decreased by $72.8 million, or 4.2%, from $1.73 billion as of September 30, 2025. Non-interest-bearing deposits were $662.8 million and represent 40.0% of total deposits as of December 31, 2025.
- The allowance for credit losses ("ACL") as a percentage of gross loans was unchanged at 1.50% as of December 31, 2025, compared to December 31, 2024.
- Credit quality remains strong with nonaccrual loans representing 0.18% of total gross loans as of December 31, 2025, up from 0.08% as of December 31, 2024.
- The Community Bank Leverage Ratio for the Bank as of December 31, 2025, was 11.61%, compared to 11.07% as of December 31, 2024.
Net Income Available to Common Shareholders
Net income available to common shareholders for the fourth quarter of 2025 was $8.2 million, or $2.88 per diluted common share, compared with $8.6 million, or $3.05 per diluted common share, for the linked quarter ended September 30, 2025. Net income available to common shareholders was $7.7 million, or $2.72 per diluted common share, for the fourth quarter of 2024. Net income available to common shareholders decreased $0.5 million, or 5.6%, compared to the linked quarter, and increased by $0.5 million, or 6.3%, compared to the same prior year period.
Notable variances compared to the linked quarter include an increase in credit loss expense, along with a decrease in non-interest income, and an increase in net interest income. Compared to the fourth quarter of 2024, an increase in net interest income was partially offset by higher non-interest expense and credit loss expense.
Net income available to common shareholders for the twelve months ended December 31, 2025, decreased by $3.1 million, or 10.2%, and was $27.1 million, or $9.55 per diluted common share, compared to $30.1 million, or $10.73 per diluted common share for the twelve months ended December 31, 2024. Compared to the twelve months ended December 31, 2024, increases in net interest income were more than offset by higher non-interest expense, which was primarily driven by one-time, non-recurring charges recognized in the second quarter, and an increase in credit loss expense.
Net Interest Income
Net interest income was $20.2 million, or 4.31%, of average earning assets ("net interest margin"), for the fourth quarter of 2025, compared with $17.7 million, or a net interest margin of 3.96%, for the same prior year period, and $20.0 million, or a net interest margin of 4.27%, for the quarter ended September 30, 2025.
Net interest income increased by $2.5 million, or 14.1%, compared to the same prior year period, primarily due to growth in the Company's loan portfolio, a marginal increase in loan yields, and lower deposit funding costs. Loan interest income and fee accretion increased by $2.7 million compared to the fourth quarter of 2024, partially offset by $1.4 million lower interest income on interest earning deposits in other banks and $0.2 million lower interest income on investment securities. Additionally, interest expense declined $1.3 million compared to the same prior year period, primarily due to lower deposit costs, and lower average balances and rates paid for subordinated debentures.
Net interest income increased by $0.3 million, or 1.3%, for the quarter ended December 31, 2025, compared to the linked quarter, reflecting reduced deposit funding costs and a favorable shift in the asset mix toward higher yielding loans, which partially offset the impact of lower overall earning asset yields. Interest expense declined $0.9 million compared to the linked quarter, primarily due to lower deposit costs and lower average balances on interest-bearing deposits. Interest income on interest earning deposits in other banks declined $0.5 million, primarily due to lower average balances and rates, and interest income on investment securities declined $0.2 million, reflecting lower yields, while interest income on loans rose $0.1 million, driven by higher average balances that offset lower loan yields.
The net interest margin was 4.31% for the quarter ended December 31, 2025, compared to 3.96% for the same prior year period, and 4.27% for the linked quarter ended September 30, 2025. During the past year, the cost of interest-bearing liabilities has declined 56 basis points, while a continued shift in earning-asset mix toward higher yielding loans offset lower yields on other earning assets, resulting in relatively stable earning asset yield and a 35 basis point year-over-year increase in the quarterly net interest margin. The Federal Reserve began lowering rates in the latter half of 2024 and resumed rate cuts in September of 2025, lowering the federal funds rate 175 basis points from its peak range, impacting the shorter end of the yield curve and reducing yields on interest-bearing deposits in other banks as well as the Company's variable rate loans and investment securities. These rate reductions also resulted in lower deposit costs, which, combined with robust loan growth, supported earning asset yields resulting in net interest margin expansion.
The 4 basis point increase in the net interest margin for the fourth quarter of 2025, compared to the linked quarter, primarily reflects a 25 basis point decline in interest-bearing deposit costs, which more than offset the 15 basis point decline in earning asset yields. The significant growth in the loan portfolio and continued demand are expected to help mitigate the impact of recent rate reductions on net interest margin.
The yield on loans increased by 5 basis points to 6.43%, while the yield on interest earning deposits in other banks and investment securities decreased by 79 basis points to 3.98%, and by 38 basis points to 3.54%, respectively, compared to the same prior year period. Additionally, average balances on loans increased $157.0 million, or 12.5%, average balances on interest earning deposits in other banks decreased $85.1 million, or 31.4%, and average balances on investment securities increased $5.6 million, or 2.3%. The cost of interest-bearing deposits decreased 55 basis points to 2.65%, while the average balances of interest-bearing deposits increased $30.3 million, or 3.0%. The cost of subordinated debentures decreased 75 basis points to 4.11%, and average balances decreased $9.9 million, or 45.4%.
For the quarter ended December 31, 2025, the yield on loans decreased by 14 basis points to 6.43%, while the yield on interest earning deposits in other banks and investment securities decreased by 44 basis points to 3.98%, and 34 basis points to 3.54%, respectively, compared to the linked quarter. Average balances on loans increased $36.5 million, or 2.65%, average balances on interest earning deposits in other banks and investment securities decreased $29.8 million, or 13.8%, and $1.9 million, or 0.76%, respectively. The cost of interest-bearing deposits decreased 25 basis points to 2.65%, and average balances on interest-bearing deposits decreased $31.1 million, or 2.93%.
The cost of funds was 1.63% for the quarter ended December 31, 2025, a decrease of 36 basis points compared to 1.99%, for the same prior year period, and a 19 basis point decrease compared to 1.82%, for the linked quarter ended September 30, 2025. The decrease in the Company's cost of funds is generally attributable to recent Federal Reserve rate cuts, lowering the short-term rate environment which has provided relief in deposit cost pressures. The Bank has continued to grow its total deposit accounts through both new customer acquisition and the expansion of existing relationships over the past year. At the same time, some clients have continued to be rate sensitive opting for higher yielding investment options.
For the twelve months ending December 31, 2025, the Company's net interest income increased $5.0 million to $76.1 million, while the net interest margin declined 13 basis points to 4.18%, compared to net interest income of $71.1 million and net interest margin of 4.31%, for the twelve months ended December 31, 2024. The decline in net interest margin is primarily the result of a 16 basis point decrease in earning asset yields, which outpaced the 14 basis point decline in the cost of total interest-bearing liabilities.
The Company holds two pay-fixed, receive floating, interest rate swap contracts with notional balances totaling $108 million to hedge against rising rates on a portion of its fixed rate loan and investment securities portfolios. Combined, interest rate swap contracts generated a nominal amount of interest income for the fourth quarter of 2025, compared to $0.1 million for the linked quarter, and $0.2 million for the fourth quarter of the prior year. Combined, the interest rate swap contracts on the loan and investment securities portfolios generated $0.4 million total of additional interest income and 2 basis points of additional earning asset yield during the year ended December 31, 2025, compared to $1.3 million total of additional interest income and 9 basis points of additional earning asset yield during the year ended December 31, 2024.
Provision for Credit Losses
A $1.2 million provision for credit losses was recorded for the quarter ended December 31, 2025, compared to $0.5 million for the linked quarter, and $0.4 million for the same prior year period. The Company's quarterly credit loss provisions over the past year have been recorded primarily to account for loan growth and changes in macro-economic conditions, which impact the calculated ACL under the current expected credit loss ("CECL") model, rather than in response to changing conditions in the Company's loan portfolio, which have remained stable, demonstrating a low credit risk profile during the past twelve months. The provision recorded during the fourth quarter included additions to specific reserves on a limited number of impaired loans.
Non-Interest Income
Non-interest income decreased $0.3 million, or 17.8%, to $1.5 million for the quarter ended December 31, 2025, compared to $1.9 million for the linked quarter, and decreased $0.1 million, or 5.5%, compared to $1.6 million for the same prior year period. Compared to the linked quarter, declines in SBA servicing fees and gain on sale of loans, as well as service charges, fees and other income, were partially offset by an increase in Farmer Mac referral and servicing fee income. When compared to the same prior year period, the decrease was primarily due to a $0.1 million decline in SBA servicing fees and gain on sale of loans. SBA sales activity during the quarter was partially impacted by the federal government shutdown.
Non-interest income decreased $0.5 million, or 6.4%, to $6.8 million during the twelve months ended December 31, 2025, compared to the twelve months ending December 31, 2024. The decline in non-interest income was primarily due to lower SBA servicing fees and gain on sale of loans, which were partially offset by an increase in service charges, fees, and other income.
Non-Interest Expense
Non-interest expense was $9.1 million for the quarter ended December 31, 2025, materially unchanged when compared to the linked quarter, and increased $1.0 million, or 11.8%, compared to $8.1 million for the quarter ended December 31, 2024.
Notable variances compared to the linked quarter include decreases in other expenses and salaries and benefits expense, partially offset by increases in professional services and data processing and communication expenses. The increase in non-interest expense for the fourth quarter of 2025 compared to the same prior year period was primarily due to a $0.8 million increase in salaries and benefits expense attributable to new hires, net of terminations, higher base compensation and associated payroll taxes, increased incentive compensation accruals, and higher group insurance costs.
Non-interest expense increased $7.2 million, or 20.8%, to $42.1 million for the twelve months ended December 31, 2025, compared to $34.9 million for 2024. The increase in non-interest expense was primarily driven by a $5.2 million increase in other expenses associated with non-recurring charges recorded during the second quarter of 2025, and a $2.2 million increase in salaries and benefits expense attributable to new hire activity, net of terminations, higher base compensation, and increased incentive compensation accruals.
Operating Efficiency
The Company's operating efficiency ratio decreased to 41.8% for the fourth quarter of 2025, compared to 42.0% for the fourth quarter of 2024, and increased compared to 41.7% for the linked quarter. Total non-interest expense as a percentage of average assets, another measure of the Company's efficiency, was 1.86% for the fourth quarter of 2025, compared to 1.74% for the fourth quarter of 2024, and unchanged compared to the quarter ended September 30, 2025.
The Company's operating efficiency ratio for the twelve months ended December 31, 2025, was 50.8%, up from 44.5% for the prior twelve months ended December 31, 2024. Total non-interest expense as a percentage of average assets for the twelve months ended December 31, 2025, was 2.21% up from 2.01% for the prior twelve months ended December 31, 2024.
Income Taxes
Income tax expense was $3.4 million for the fourth quarter of 2025, compared to $3.2 million for the quarter ended December 31, 2024, and $3.6 million for the linked quarter ended September 30, 2025. The Company's effective tax rate for the fourth quarter of 2025 was 29.1%, unchanged compared to the same prior year period, and 29.6% for the quarter ended September 30, 2025.
Income tax expense was $11.2 million for the year ended December 31, 2025, compared to $11.9 million from the prior year. The Company's effective tax rate for the year ended December 31, 2025, was 29.2%, compared to 28.3% for the prior year.
Asset and Equity Returns
The return on average equity for the fourth quarter of 2025 was 14.9%, down from 16.3% for the same prior year period, and down from 16.7% for the linked quarter. The quarterly return on average assets for the fourth quarter of 2025 was 1.66%, up from 1.64% from the same prior year period, and down from 1.77% for the linked quarter.
The decline in the quarterly return on average equity for the quarter ended December 31, 2025, compared to the same prior year period, is primarily attributable to the growth in average equity outpacing the growth in quarterly net income, while the rise in quarterly return on average assets for the quarter ended December 31, 2025, is primarily attributable to growth in quarterly net income outpacing average asset growth. Compared to the same prior year period, average equity grew 16.0%, quarterly net income grew 6.33%, and average assets grew at 4.21%.
The decline in quarterly returns on both average equity and average assets for the quarter ended December 31, 2025, compared to the linked quarter, is primarily attributable to the growth in quarterly average equity and quarterly average assets coupled with a marginal decline in quarterly net income.
The annual return on average equity for the twelve months ended December 31, 2025, was 13.3%, down from 17.3% for the twelve months ended December 31, 2024. The annual return on average assets for the twelve months ended December 31, 2025, was 1.42%, down from 1.74% for the prior year. The decline in returns is primarily attributable to the growth in average assets and average equity coupled with a decline in net income.
Balance Sheet
Total assets increased by $27.6 million, or 1.5%, to $1.90 billion as of December 31, 2025, compared to December 31, 2024, and decreased by $63.3 million, or 3.2%, compared to September 30, 2025. Cash and cash equivalents decreased by $140.2 million, or 47.8%, to $153.3 million as of December 31, 2025, compared to the same prior year period, and decreased by $100.4 million, or 39.6%, compared to September 30, 2025.
The decrease in the Company's cash position over the past year reflects robust loan growth, which outpaced strong earnings growth and marginal deposit growth. The decrease in the Company's cash position over the past quarter reflects deposit outflows and continued strong lending activity, which outpaced earnings.
Investment securities decreased by $2.3 million or 0.9%, to $242.7 million as of December 31, 2025, compared to $244.9 million as of December 31, 2024, and decreased by $5.4 million, or 2.2%, compared to $248.1 million as of September 30, 2025. The decline in the investment securities portfolio over the past year primarily reflects normal repayment and amortization of the bond portfolio and a decline in unrealized losses on the investment securities portfolio attributable to market rate changes. Earlier in the year the Company also deployed excess liquidity into new, higher yielding securities to supplement lending demand. The decrease in the investment portfolio during the fourth quarter of 2025, compared to the linked quarter, reflected normal repayment and amortization of the bond portfolio and a decline in unrealized losses on the investment securities portfolio attributable to market rate changes during the quarter.
Loans increased by $169.9 million, or 13.2%, to $1.46 billion as of December 31, 2025, compared to December 31, 2024, and increased by $44.1 million, or 3.1%, compared to September 30, 2025. Loan growth during the last year has been diversified across the portfolio, with notable growth in non-owner occupied commercial real estate, commercial and industrial, loans secured by farmland, and multi-family loans. Loan growth during the last quarter reflected a diversified mix across almost every loan category, offset only by contraction in non-owner occupied commercial real estate loans.
Total deposits increased by $7.0 million, or 0.4%, to $1.66 billion as of December 31, 2025, from $1.65 billion as of December 31, 2024, and decreased by $72.8 million, or 4.2%, compared to September 30, 2025. Non-interest-bearing deposits increased by $16.7 million, or 2.6%, during the last year, and decreased by $8.5 million, or 1.3%, since September 30, 2025. The increase in deposits over the past year reflects an increase in average balances among existing customers, a lower account closure ratio, and stable new account openings. More recently, however, deposit trends reflect increased rate sensitivity amid changes in the interest rate environment following Federal Reserve rate cuts. Some customers have reallocated excess liquidity toward higher yielding investment opportunities. Non-interest-bearing deposits represented 40.0% of total deposits on December 31, 2025.
During the quarter ended June 30, 2025, the Company repaid $10 million of subordinated debentures at the end of their fixed term on May 20, 2025, resulting in a year over year decline in subordinated debentures.
Total shareholders' equity was $220.3 million as of December 31, 2025, an increase of $30.8 million, or 16.3%, compared to December 31, 2024, and an increase of $8.6 million, or 4.0%, compared to September 30, 2025, primarily due to quarterly earnings, net of changes in accumulated other comprehensive loss. The accumulated other comprehensive loss component of equity decreased by $4.1 million during the year, primarily reflecting a $4.9 million decrease in unrealized losses on the investment securities portfolio, partially offset by a $0.8 million increase in unrealized losses on the interest rate swap contracts. The accumulated other comprehensive loss component of equity decreased by $1.1 million during the quarter due to a decline in the unrealized losses on the investment securities portfolio.
Allowance for Credit Losses and Credit Quality
The ACL as a percentage of gross loans increased modestly to 1.50% as of December 31, 2025, from 1.47% as of September 30, 2025, and is unchanged from December 31, 2024. The ACL as a percentage of gross loans over the past twelve months has not fluctuated, reflecting the stable credit profile of the loan portfolio.
Nonperforming assets were $2.6 million as of December 31, 2025, up from $0.7 million as of September 30, 2025, and up from $1.1 million as of December 31, 2024. Nonperforming assets as a percentage of total assets were 0.14% as of December 31, 2025, up from 0.04% as of September 30, 2025, and up from 0.06% as of December 31, 2024.
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 11.61%, as of December 31, 2025, 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 54 and 32 basis points, from 11.07% and 11.29%, as of the periods ended December 31, 2024, and September 30, 2025, respectively. During the past year, earnings growth outpaced the combined impact of growth in average assets and dividends paid by the Bank to the Company, resulting in an increase in the Bank's Community Bank Leverage ratio compared to the prior year.
Stock Repurchase Program
On October 27, 2025, the Company announced the extension of its plan Rule 10b5-1 (the "2022 10b5-1 Plan") to facilitate the repurchase of its common stock. Pursuant to the 2022 10b5-1 Plan, a maximum of $3.0 million of the Company's common stock may be repurchased by the Company. The previous extension under the Plan expired on October 23, 2025, and the Company extended the Plan for an additional six months, through April 23, 2026. The Company may suspend or discontinue the Plan at any time. Hilltop Securities, Inc. is acting as the Company's agent to purchase its shares on pre-arranged terms pursuant to the 2022 10b5-1 Plan.
During the fourth quarter of 2025 the Company repurchased 11,501 shares under the 2022 10b5-1 Plan at an average price of $94.91. Since Plan inception the Company has repurchased 32,926 shares at an average price of $92.17.
About Mission Bancorp and Mission Bank
With $1.9 billion in assets, Mission Bancorp is headquartered in Bakersfield, California and is the holding company of three wholly owned subsidiaries, Mission Bank, Mission 1031 Exchange, LLC, and Mission Community Development, LLC. Mission Bank has seven Business Banking Centers, serving the greater areas of Bakersfield, Lancaster, San Luis Obispo, 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
December 31, 2025 September 30, 2025 June 30, 2025 December 31, 2024 12/25 -09/25 12/25 -12/24
Assets
Cash and due from banks $45,285 $45,853 $65,425 $46,596 $(568) $(1,311)
Interest earning deposits in
other banks 107,983 207,788 136,406 246,872 (99,805) (138,889)
Total cash and cash equivalents 153,268 253,641 201,831 293,468 (100,373) (140,200)
Interest earning deposits
maturing over ninety days 490 490 490 490
Investment securities
available-for-sale, at fair
value 242,660 248,109 250,199 244,922 (5,449) (2,262)
Loans 1,460,676 1,416,607 1,355,615 1,290,802 44,069 169,874
Allowance for credit losses (21,909) (20,799) (20,332) (19,423) (1,110) (2,486)
Loans, net 1,438,767 1,395,808 1,335,283 1,271,379 42,959 167,388
Premises and equipment, net 2,636 2,762 2,855 2,785 (126) (149)
Bank owned life insurance 22,534 22,372 22,211 21,899 162 635
Deferred tax asset, net 15,346 15,027 16,595 16,364 319 (1,018)
Interest receivable and other
assets 27,754 28,575 29,277 24,549 (821) 3,205
Total Assets $1,903,455 $1,966,784 $1,858,741 $1,875,856 $(63,329) $27,599
Liabilities and Shareholders' Equity
Deposits
Noninterest-bearing demand $662,809 $671,285 $635,530 $646,129 $(8,476) $16,680
Interest bearing 993,554 1,057,847 992,734 1,003,196 (64,293) (9,642)
Total deposits 1,656,363 1,729,132 1,628,264 1,649,325 (72,769) 7,038
Other borrowings
Subordinated debentures, net of
issuance costs 11,988 11,977 11,966 21,934 11 (9,946)
Interest payable and other
liabilities 14,800 13,929 19,183 15,111 871 (311)
Total Liabilities 1,683,151 1,755,038 1,659,413 1,686,370 (71,887) (3,219)
Shareholders' Equity
Common stock 100,846 101,495 101,331 89,496 (649) 11,350
Retained earnings 133,594 125,444 116,806 118,248 8,150 15,346
Accumulated other comprehensive
loss (14,136) (15,193) (18,809) (18,258) 1,057 4,122
Total shareholders' equity 220,304 211,746 199,328 189,486 8,558 30,818
Total Liabilities and
Shareholders' Equity $1,903,455 $1,966,784 $1,858,741 $1,875,856 $(63,329) $27,599
SBA Paycheck Protection Program Loans 257 306 355 452 (49) (195)
MISSION BANCORP
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(Dollars in thousands)
For the Three Months Ended For the Twelve Months Ended
Variance Variance
December 31, 2025 September 30, 2025 December 31, 2024 12/25 -09/25 12/25 -12/24 December 31, 2025 December 31, 2024 12/25 -12/24
Interest and Dividend Income
Loans $22,969 $22,867 $20,233 $102 $2,736 $87,289 $79,820 $7,469
Investment
securities 2,200 2,430 2,374 (230) (174) 9,413 9,958 (545)
Other 2,075 2,566 3,433 (491) (1,358) 9,871 9,378 493
Total interest
and dividend
income 27,244 27,863 26,040 (619) 1,204 106,573 99,156 7,417
Interest Expense
Other
deposits 6,534 7,244 7,044 (710) (510) 27,386 23,304 4,082
Time
deposits 350 509 991 (159) (641) 2,325 3,334 (1,009)
Total interest
expense on
deposits 6,884 7,753 8,035 (869) (1,151) 29,711 26,638 3,073
Other
borrowings 315 (315)
Subordinated
debentures 124 124 268 (144) 717 1,071 (354)
Total interest
expense 7,008 7,877 8,303 (869) (1,295) 30,428 28,024 2,404
Net Interest Income 20,236 19,986 17,737 250 2,499 76,145 71,132 5,013
Credit Loss Expense 1,166 466 400 700 766 2,537 1,469 1,068
Net Interest Income After Provision
for Credit
Losses 19,070 19,520 17,337 (450) 1,733 73,608 69,663 3,945
Non-Interest Income
Service
charges, fees
and other
income 1,073 1,195 1,078 (122) (5) 4,489 4,083 406
Farmer Mac
referral and
servicing
fees 390 293 363 97 27 1,358 1,335 23
SBA servicing
fees and gain
on sale of
loans 57 362 168 (305) (111) 964 1,841 (877)
Loss on sale
of securities (49) (31) (18)
Total non-
interest
income 1,520 1,850 1,609 (330) (89) 6,762 7,228 (466)
Non-Interest Expense
Salaries and
benefits 5,835 5,915 5,047 (80) 788 23,416 21,236 2,180
Professional
services 1,109 1,010 1,018 99 91 4,717 4,884 (167)
Occupancy and
equipment 591 599 571 (8) 20 2,349 2,321 28
Data
processing
and
communication 441 380 402 61 39 1,569 1,621 (52)
Other 1,112 1,197 1,093 (85) 19 10,052 4,803 5,249
Total non-
interest
expense 9,088 9,101 8,131 (13) 957 42,103 34,865 7,238
Net Income Before Provision for Income Taxes 11,502 12,269 10,815 (767) 687 38,267 42,026 (3,759)
Provision for Income Taxes 3,352 3,631 3,150 (279) 202 11,191 11,884 (693)
Net Income $8,150 $8,638 $7,665 $(488) $485 $27,076 $30,142 $(3,066)
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 Twelve Months Ended
December 31, 2025 September 30, 2025 June 30, 2025 December 31, 2024 December 31, 2025 December 31, 2024
Ratio of total loans to total deposits 88.19 % 81.93 % 83.26 % 78.26 % 88.19 % 78.26 %
Return on average assets 1.66 % 1.77 % 0.67 % 1.64 % 1.42 % 1.74 %
Return on average equity 14.88 % 16.71 % 6.28 % 16.27 % 13.26 % 17.31 %
Net interest margin 4.31 % 4.27 % 4.07 % 3.96 % 4.18 % 4.31 %
Efficiency ratio 41.77 % 41.68 % 73.82 % 42.03 % 50.78 % 44.49 %
Non-interest expense as a percent of average assets 1.86 % 1.86 % 3.15 % 1.74 % 2.21 % 2.01 %
Non-interest income as a percent of average assets 0.31 % 0.38 % 0.39 % 0.34 % 0.36 % 0.42 %
Community Bank Leverage Ratio 11.61 % 11.29 % 11.43 % 11.07 % 11.61 % 11.07 %
Weighted average shares outstanding - basic* 2,777,105 2,780,215 2,783,721 2,767,351 2,779,402 2,758,993
Weighted average shares outstanding - diluted* 2,832,578 2,835,258 2,834,836 2,821,693 2,833,772 2,807,909
Shares outstanding at period end - basic* 2,770,207 2,778,818 2,780,875 2,768,438 2,770,207 2,768,438
Earnings per share - basic $2.93 $3.11 $1.13 $2.77 $9.74 $10.93
Earnings per share - diluted $2.88 $3.05 $1.11 $2.72 $9.55 $10.73
Total assets $1,903,455 $1,966,784 $1,858,741 $1,875,856 $1,903,455 $1,875,856
Loans and leases net of deferred fees $1,460,676 $1,416,607 $1,355,615 $1,290,802 $1,460,676 $1,290,802
Noninterest-bearing demand deposits $662,809 $671,285 $635,530 $646,129 $662,809 $646,129
Total deposits $1,656,363 $1,729,132 $1,628,264 $1,649,325 $1,656,363 $1,649,325
Noninterest-bearing deposits as a percentage total deposits 40.02 % 38.82 % 39.03 % 39.18 % 40.02 % 39.18 %
Average total assets $1,942,161 $1,940,923 $1,868,348 $1,863,633 $1,904,395 $1,732,472
Average total equity $217,268 $205,128 $200,310 $187,377 $204,119 $174,122
Shareholders' equity / total assets 11.57 % 10.77 % 10.72 % 10.10 % 11.57 % 10.10 %
Book value per share $79.53 $76.20 $71.68 $68.44 $79.53 $68.44
*Outstanding shares adjusted for 5% dividend declared on April 24, 2025.
MISSION BANCORP
AVERAGE BALANCES AND RATES
(Unaudited)
(Dollars in thousands)
For the Quarter Ended For the Quarter Ended For the Quarter Ended
December 31, 2025 September 30, 2025 December 31, 2024
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 $185,641 $1,862 3.98 % $215,393 $2,396 4.42 % $270,707 $3,246 4.77 %
Investment securities 246,307 2,200 3.54 % 248,188 2,430 3.88 % 240,752 2,374 3.92 %
Loans 1,417,946 22,969 6.43 % 1,381,406 22,867 6.57 % 1,260,935 20,233 6.38 %
Other earning
assets 11,039 213 7.66 % 10,846 170 6.22 % 9,014 187 8.24 %
Total Earning Assets 1,860,933 27,244 5.81 % 1,855,833 27,863 5.96 % 1,781,408 26,040 5.82 %
Non-interest earning assets 81,228 85,090 82,225
Total Assets $1,942,161 $1,940,923 $1,863,633
Liabilities and Capital
Interest-bearing deposits
Interest-bearing transaction
accounts $952,088 $6,504 2.71 % $945,762 $7,224 3.03 % $848,398 $6,922 3.25 %
Time deposits 49,906 350 2.78 % 64,596 509 3.13 % 96,336 991 4.09 %
1031 Exchange deposits 28,630 30 0.42 % 51,365 20 0.15 % 55,580 122 0.88 %
Total interest-bearing
deposits 1,030,624 6,884 2.65 % 1,061,723 7,753 2.90 % 1,000,314 8,035 3.20 %
Borrowed funds
Other borrowings 3 0.00 %
Subordinated debt 11,982 124 4.11 % 11,971 124 4.11 % 21,923 268 4.86 %
Total interest-bearing
liabilities 1,042,606 7,008 2.67 % 1,073,697 7,877 2.91 % 1,022,237 8,303 3.23 %
Noninterest-bearing deposits 666,460 643,854 636,043
Total Funding 1,709,066 7,008 1.63 % 1,717,551 7,877 1.82 % 1,658,280 8,303 1.99 %
Other noninterest-bearing liabilities 15,827 18,244 17,976
Total Liabilities 1,724,893 1,735,795 1,676,256
Total Capital 217,268 205,128 187,377
Total Liabilities and
Capital $1,942,161 $1,940,923 $1,863,633
Net Interest
Margin 4.31 % 4.27 % 3.96 %
Net Interest
Spread 4.18 % 4.14 % 3.82 %
MISSION BANCORP
AVERAGE BALANCES AND RATES
(Unaudited)
(Dollars in thousands)
As of or for the Twelve Months Ended As of or for the Twelve Months Ended
December 31, 2025 December 31, 2024
Average Income / Yield / Average Income / Yield /
Balance Expense Rate Balance Expense Rate
Assets
Interest earning deposits in other banks $211,536 $9,149 4.33 % $169,248 $8,707 5.14 %
Investment securities 245,764 9,413 3.83 % 237,390 9,958 4.19 %
Loans 1,353,251 87,289 6.45 % 1,234,063 79,820 6.47 %
Other earning
assets 9,993 722 7.23 % 8,998 671 7.45 %
Total Earning Assets 1,820,544 106,573 5.85 % 1,649,699 99,156 6.01 %
Non-interest earning assets 83,851 82,773
Total Assets $1,904,395 $1,732,472
Liabilities and Capital
Interest-bearing deposits
Interest-bearing transaction
accounts $921,765 $27,255 2.96 % $757,039 $22,810 3.01 %
Time deposits 69,840 2,325 3.33 % 84,089 3,334 3.96 %
1031 Exchange deposits 37,697 131 0.35 % 50,344 494 0.98 %
Total interest-bearing
deposits 1,029,302 29,711 2.89 % 891,472 26,638 2.99 %
Borrowed funds
Other borrowings 1 6,626 315 4.75 %
Subordinated debt 15,771 717 4.55 % 21,897 1,071 4.89 %
Total interest-bearing
liabilities 1,045,074 30,428 2.91 % 919,995 28,024 3.05 %
Noninterest-bearing deposits 638,381 621,709
Total Funding 1,683,455 30,428 1.81 % 1,541,704 28,024 1.82 %
Other noninterest-bearing liabilities 16,821 16,646
Total Liabilities 1,700,276 1,558,350
Total Capital 204,119 174,122
Total Liabilities and
Capital $1,904,395 $1,732,472
Net Interest
Margin 4.18 % 4.31 %
Net Interest
Spread 4.05 % 4.19 %
MISSION BANCORP
LOAN DETAIL
(Unaudited)
(Dollars in thousands)
Variance
December 31, 2025 September 30, 2025 June 30, 2025 December 31, 2024 12/25 -09/25 12/25 -12/24
Loans
Construction and land
development $66,699 $63,454 $45,471 $59,474 $3,245 $7,225
Secured by farmland 169,321 155,882 154,032 137,376 13,439 31,945
Residential 1 to 4 units 67,567 67,517 65,603 61,596 50 5,971
Multi-family 78,342 72,470 67,589 47,050 5,872 31,292
Owner occupied commercial
real estate 525,130 515,348 504,883 525,745 9,782 (615)
Non-owner occupied
commercial real estate 256,052 257,864 242,205 195,339 (1,812) 60,713
Commercial and industrial 203,716 194,741 184,405 170,433 8,975 33,283
Agricultural production 95,964 92,042 92,609 95,669 3,922 295
Other loans 934 239 1,611 684 694 250
Net Deferred Fees-
Costs (3,049) (2,951) (2,793) (2,564) (98) (485)
Total
Loans $1,460,676 # $1,416,607 $1,355,615 $1,290,802 $44,069 $169,874
MISSION BANCORP
Credit Quality
(Unaudited)
(Dollars in thousands)
December 31, 2025 September 30, 2025 June 30, 2025 December 31, 2024
Asset quality
Loans past due 90 days or more and accruing interest
$ -
$ -
$ -
$ -
Nonaccrual loans $2,624 $717 $1,698 $1,062
Restructured loans
Nonperforming restructured
loans
$ -
$ -
$ -
$ -
Performing restructured
loans
$ -
$ -
$ -
$ -
Other real estate owned
$ -
$ -
$ -
$ -
Total nonperforming assets $2,624 $717 $1,698 $1,062
Allowance for credit losses to total loans 1.50 % 1.47 % 1.50 % 1.50 %
Allowance for credit losses to nonperforming loans 834.95 % 2901.06 % 1197.41 % 1828.91 %
Nonaccrual loans to total loans 0.18 % 0.05 % 0.13 % 0.08 %
Nonperforming assets to total assets 0.14 % 0.04 % 0.09 % 0.06 %
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SOURCE Mission Bank
A.J. Antongiovanni, President, and Chief Executive Officer, 661.859.2517; Jason Castle, Chief Operating Officer, and Chief Financial Officer, 661.437.4418