Mission Bancorp Reports First Quarter Earnings of $7.7 Million, a 7% Increase Year Over Year, and Annual Loan Growth of 14.5%. Announces Extension of Stock Repurchase Plan and Declares 5.00% Annual Stock Dividend.

Apr 27 2026 21:30 BST

BAKERSFIELD, Calif. , April 27, 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 $7.7 million, or $2.58 per diluted common share, for the first quarter of 2026, compared to net income available to common shareholders of $7.2 million, or $2.41 per diluted common share, for the first quarter of 2025, and net income available to common shareholders of $8.2 million, or $2.74 per diluted common share, for the linked quarter.

"Mission Bank is proud to report solid first quarter results with net income of $7.7 million, a 7% increase year over year, and annual loan growth of 14.5%." says Mission Bank President and CEO A.J. Antongiovanni. "Our strategy of focusing on the highest quality of business in each of our markets continues to pay off with strong loan growth and modest deposit growth leading to moderate net interest margin expansion despite challenging times. We are excited for new opportunities in the second quarter as we open a lending and deposit production center in North San Luis Obispo County and a Business Banking Center in Westlake Village. Our superior service and relationship-driven business model has proved successful at scale, and we are looking forward to deepening our relationships in every community we serve."

First Quarter 2026 Financial Highlights

Gross loans increased by $188.9 million, or 14.5%, to $1.49 billion as of March 31, 2026, compared to $1.30 billion as of March 31, 2025, and increased by $27.0 million, or 1.8%, compared to December 31, 2025, balances.
Total deposits increased by $15.8 million, or 1.0%, to $1.67 billion as of March 31, 2026, compared to $1.65 billion a year earlier, and increased by $11.7 million, or 0.7%, from $1.66 billion as of December 31, 2025. Non-interest-bearing deposits were $647.0 million and represent 38.8% of total deposits as of March 31, 2026.
The allowance for credit losses ("ACL") as a percentage of gross loans declined from 1.50% as of December 31, 2025, to 1.35% as of March 31, 2026.
Credit quality remains strong with nonaccrual loans representing 0.01% of total gross loans as of March 31, 2026, down from 0.18% as of December 31, 2025.
The Community Bank Leverage Ratio for the Bank as of March 31, 2026, was 12.19%, compared to 11.47% as of March 31, 2025.

Net Income Available to Common Shareholders

Net income available to common shareholders for the first quarter of 2026 was $7.7 million, or $2.58 per diluted common share, compared with $8.2 million, or $2.74 per diluted common share, for the linked quarter ended December 31, 2025. Net income available to common shareholders was $7.2 million, or $2.41 per diluted common share, for the first quarter of 2025. Net income available to common shareholders decreased $0.5 million, or 6.1%, compared to the linked quarter, and increased by $0.5 million, or 7.0%, compared to the same prior year period.

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

Net Interest Income

Net interest income was $19.8 million, or 4.39%, of average earning assets ("net interest margin"), for the first quarter of 2026, compared with $17.8 million, or a net interest margin of 4.06%, for the same prior year period, and $20.2 million, or a net interest margin of 4.31%, for the quarter ended December 31, 2025.

Net interest income increased by $1.9 million, or 10.8%, compared to the same prior year period, primarily due to growth in the Company's loan portfolio coupled with relatively stable loan yields, and lower funding costs. Loan interest income and fee accretion increased by $2.5 million compared to the first quarter of 2025, partially offset by $1.4 million lower interest income on interest earning deposits in other banks and $0.3 million lower interest income on investment securities. Additionally, interest expense declined $1.0 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 decreased by $0.5 million, or 2.4%, for the quarter ended March 31, 2026, compared to the linked quarter, primarily reflecting a lower number of days in the period, along with lower yields on certain interest earning assets, particularly interest earning deposits in other banks and investment securities, which were partially offset by a favorable shift in earning-asset mix toward higher yielding loans and reduced deposit costs. Interest income on interest earning deposits in other banks declined $0.8 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. Interest expense declined $0.4 million compared to the linked quarter, primarily due to lower deposit costs and lower average balances on interest-bearing deposits.

The net interest margin was 4.39% for the quarter ended March 31, 2026, compared to 4.06% for the same prior year period, and 4.31% for the linked quarter ended December 31, 2025. During the past year, the cost of interest-bearing liabilities declined 43 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 33 basis point year-over-year expansion in the quarterly net interest margin. The Federal Reserve began lowering rates in the latter half of 2024, 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 8 basis point increase in the net interest margin for the first quarter of 2026, compared to the linked quarter, primarily reflects a modest increase in earning asset yields, combined with a continued favorable shift in the earning-asset mix toward higher yielding loans. These benefits were further supported by a decline in interest bearing deposit costs.

The yield on loans, interest earning deposits in other banks, and investment securities decreased by 4 basis points to 6.37%, 70 basis points to 3.70%, and 50 basis points to 3.42%, respectively, compared to the same prior year period. Additionally, average balances on loans increased $169.7 million, or 13.1%, average balances on interest earning deposits in other banks decreased $128.4 million, or 55.3%, and average balances on investment securities were relatively unchanged. The cost of interest-bearing deposits decreased 41 basis points to 2.59%, while the average balances of interest-bearing deposits increased $8.7 million, or 0.86%. The cost of subordinated debentures decreased 76 basis points to 4.19%, and average balances decreased $9.9 million, or 45.3%.

For the quarter ended March 31, 2026, the yield on loans, interest bearing deposits in other banks, and investment securities decreased by 6 basis points to 6.37%, 28 basis points to 3.70%, and 12 basis points to 3.42%, respectively, compared to the linked quarter. Average balances on loans increased $50.7 million, or 3.57%, average balances on interest earning deposits in other banks and investment securities decreased $82.0 million, or 44.2%, and $4.8 million, or 1.96%, respectively. The cost of interest-bearing deposits decreased 6 basis points to 2.59%, and average balances on interest-bearing deposits decreased $15.1 million, or 1.47%.

The cost of funds was 1.61% for the quarter ending March 31, 2026, a decrease of 28 basis points compared to 1.89%, for the same prior year period, and a 2 basis point decrease compared to 1.63%, for the linked quarter ending December 31, 2025. The decrease in the Company's cost of funds is generally attributable to recent Federal Reserve rate cuts, which has provided some relief in deposit cost pressures. The Bank has continued to grow its total deposit accounts through both new customer acquisition and the expansion of existing relationships over the past year. At the same time, some rate-sensitive clients have opted for higher yielding investment options.

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

Provision for Credit Losses

A $0.7 million provision for credit losses was recorded for the quarter ended March 31, 2026, compared to $1.2 million for the linked quarter, and $0.2 million for the same prior year period. The Company's quarterly credit loss provisions over the past year have been recorded primarily to account for loan growth and changes in macro-economic conditions, which impact the calculated ACL under the current expected credit loss ("CECL") model, rather than in response to changing conditions in the Company's loan portfolio, which has remained stable, demonstrating a low credit risk profile during the past twelve months. During the first quarter, certain loans for which specific reserves were recorded in prior quarters were charged off, consistent with the Company's established credit risk management framework.

Non-Interest Income

Non-interest income increased $0.1 million, or 4.9%, to $1.6 million for the quarter ended March 31, 2026, compared to $1.5 million for the linked quarter, and was relatively unchanged compared to the same prior year period. Compared to the linked quarter, increases in SBA servicing fees and gain on sale of loans were partially offset by lower service charges, fees and other income, as well as a decline in Farmer Mac referral and servicing fee income. When compared to the same prior year period, increases in SBA servicing fees and gain on sale of loans and Farmer Mac referral and servicing fee income were largely offset by a decline in service charges, fees and other income. SBA sales activity during the prior quarter was partially impacted by the federal government shutdown.

Non-Interest Expense

Non-interest expense increased by $0.9 million, or 10.3%, to $10.0 million for the quarter ended March 31, 2026, compared to $9.1 million for the linked quarter, and increased by $0.8 million, or 8.6%, compared to $9.2 million for the quarter ended March 31, 2025.

The increase in non-interest expense for the first quarter of 2026, compared to the linked quarter, was primarily due to a $0.9 million increase in salaries and benefits expense, driven by higher beginning-of-year payroll taxes, increased stock-based compensation, and other compensation accruals. Additionally, base compensation and benefits costs attributable to new hires in our North San Luis Obispo County office, contributed to the increase in non-interest expense.

The increase in non-interest expense for the first quarter of 2026 compared to the same prior year period was primarily due to an $0.8 million increase in salaries and benefits expense attributable to new hires, including the North San Luis Obispo County team, net of terminations, along with higher incentive compensation, equity compensation, and related payroll taxes and benefit expenses.

Operating Efficiency

The Company's operating efficiency ratio decreased to 46.9% for the first quarter of 2026, compared to 47.5% for the first quarter of 2025, and increased compared to 41.8% for the linked quarter. Total non-interest expense as a percentage of average assets, another measure of the Company's efficiency, was 2.13% for the first quarter of 2026, compared to 2.01% for the first quarter of 2025, and 1.86% compared to the quarter ended December 31, 2025.

Income Taxes

Income tax expense was $3.0 million for the first quarter of 2026, compared to $2.9 million for the quarter ended March 31, 2025, and $3.4 million for the linked quarter ended December 31, 2025. The Company's effective tax rate for the first quarter of 2026 was 27.9%, compared to 28.8% for the same prior year period, and 29.1% for the quarter ending December 31, 2025.

Asset and Equity Returns

The return on average equity for the first quarter of 2026 was 13.8%, down from 15.0% for the same prior year period, and down from 14.9% for the linked quarter. The quarterly return on average assets for the first quarter of 2026 was 1.63%, up from 1.56% from the same prior year period, and down from 1.66% for the linked quarter.

The decline in the quarterly return on average equity for the quarter ended March 31, 2026, 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 March 31, 2026, is primarily attributable to growth in quarterly net income outpacing average asset growth. Compared to the same prior year period, average equity grew 16.7%, quarterly net income grew 7.0%, and average assets grew 2.11%.

The decline in quarterly returns on both average equity and average assets for the quarter ended March 31, 2026, compared to the linked quarter, is primarily attributable to the marginal decline in quarterly net income, combined with growth in quarterly average equity and a reduction in quarterly average assets.

Balance Sheet

Total assets increased by $37.0 million, or 2.0%, to $1.92 billion as of March 31, 2026, compared to March 31, 2025, and increased by $20.8 million, or 1.1%, compared to December 31, 2025. Cash and cash equivalents decreased by $150.9 million, or 50.2%, to $149.7 million as of March 31, 2026, compared to the same prior year period, and decreased by $3.6 million, or 2.4%, compared to December 31, 2025.

The decrease in the Company's cash position over the past year reflects robust loan growth, which outpaced deposit growth, along with the repayment of subordinated debentures. The decrease in the Company's cash position over the past quarter reflects continued strong lending activity, which outpaced deposit growth.

Investment securities decreased by $3.2 million or 1.3%, to $238.7 million as of March 31, 2026, compared to $241.9 million as of March 31, 2025, and decreased by $3.9 million, or 1.6%, compared to $242.7 million as of December 31, 2025. The decline in the investment securities portfolio over the past year primarily reflects normal repayment and amortization of the bond portfolio, net of a decline in unrealized losses on the investment securities portfolio attributable to market rate changes. During the year, the Company continued to selectively deploy excess liquidity into higher yielding investment securities. The decrease in the investment portfolio during the first quarter of 2026, compared to the linked quarter, reflected normal repayment and amortization of the bond portfolio and a marginal decline in unrealized losses on the investment securities portfolio attributable to market rate changes during the quarter.

Loans increased by $188.9 million, or 14.5%, to $1.49 billion as of March 31, 2026, compared to March 31, 2025, and increased by $27.0 million, or 1.8%, compared to December 31, 2025. Loan growth during the last year reflected a diversified mix across almost every loan category, offset only by contraction in agricultural production loans. Loan growth during the last quarter was concentrated in construction and land development, commercial real estate, and loans secured by farmland, with notable contractions in agricultural production and residential 1 to 4 family loans.

Total deposits increased by $15.8 million, or 1.0%, to $1.67 billion as of March 31, 2026, from $1.65 billion as of March 31, 2025, and increased by $11.7 million, or 0.7%, compared to December 31, 2025. Non-interest-bearing deposits increased by $20.3 million, or 3.2%, during the last year, and decreased by $15.8 million, or 2.4%, since December 31, 2025. The increase in deposits over the past year reflects an increase in average balances among existing customers, a declining account closure ratio, and stable new account openings. Non-interest-bearing deposits represented 38.8% of total deposits on March 31, 2026.

During the quarter ended June 30, 2025, the Company repaid $10 million of subordinated debentures at the end of their fixed term, resulting in a year over year decline in subordinated debentures.

Total shareholders' equity was $228.9 million as of March 31, 2026, an increase of $31.2 million, or 15.8%, compared to March 31, 2025, and an increase of $8.6 million, or 3.9%, compared to December 31, 2025, primarily due to quarterly earnings, net of changes in accumulated other comprehensive loss. The accumulated other comprehensive loss component of equity decreased by $3.7 million during the year, primarily reflecting a $5.3 million decline in unrealized losses on the investment securities portfolio. The accumulated other comprehensive loss component of equity decreased by $0.4 million during the quarter due to a decline in the unrealized losses on the interest rate swap contracts.

Allowance for Credit Losses and Credit Quality

The ACL as a percentage of gross loans decreased to 1.35% as of March 31, 2026, from 1.50% as of December 31, 2025, and 1.51% from March 31, 2025. The ACL as a percentage of gross loans decreased during the quarter, due to charge-offs of previously established specific reserves on individually analyzed loans, while the overall credit profile of the loan portfolio has remained stable over the past twelve months.

Nonperforming assets were $0.1 million as of March 31, 2026, down from $2.6 million as of December 31, 2025, and down from $0.9 million as of March 31, 2025. Nonperforming assets as a percentage of total assets were 0.01% as of March 31, 2026, down from 0.14% as of December 31, 2025, and down from 0.05% as of March 31, 2025.

Regulatory Capital

The Bank's reported regulatory capital ratio exceeded the ratio generally required to be considered a "well capitalized" financial institution for regulatory purposes. The Community Bank Leverage Ratio for the Bank was 12.19%, as of March 31, 2026, compared with the requirement of 9.00% to generally be considered a "well capitalized" financial institution for regulatory purposes. The Bank's Community Bank Leverage ratio has increased by 72 and 58 basis points, from 11.47% and 11.61%, as of the periods ended March 31, 2025, and December 31, 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 and Stock Dividend

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 2022 10b5-1 Plan was set to expire on April 23, 2026, and has been extended for an additional 6 months through October 22, 2026. In connection with the extension, the Company has increased the Plan's authorized common stock repurchase amount by $1.95 million, bringing the total authorized repurchase to a maximum of $4.95 million. Remaining funds associated with the prior authorization will be removed from the Plan and 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 first quarter of 2026 the Company repurchased 1,650 shares under the 2022 10b5-1 Plan at an average price of $94.50. Since Plan inception the Company has repurchased 34,576 shares at an average price of $92.28.

Recognizing another year of strong performance and execution, the Company has declared a 5.00% stock dividend, which will be issued on June 1, 2026 ("the Effective Date"), to shareholders of record as of May 18, 2026 ("the Record Date"). The financial results, including earnings per share, and book value per share, reported in this press release have been adjusted to reflect the impact of the 5% stock dividend.

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

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

								Variance
				March 31, 2026	December 31, 2025	September 30, 2025	March 31, 2025	03/26 - 12/25	03/26 - 03/25
Assets
	Cash and due from banks			$ 49,126	$ 45,285	$ 45,853	$ 50,339	$ 3,841	$ (1,213)
	Interest earning deposits in other banks			100,536	107,983	207,788	250,205	(7,447)	(149,669)
		Total cash and cash equivalents		149,662	153,268	253,641	300,544	(3,606)	(150,882)
	Interest earning deposits maturing over ninety days			245	490	490	490	(245)	(245)
	Investment securities available-for-sale, at fair value			238,742	242,660	248,109	241,925	(3,918)	(3,183)
	Loans			1,487,673	1,460,676	1,416,607	1,298,780	26,997	188,893
	Allowance for credit losses			(20,122)	(21,909)	(20,799)	(19,580)	1,787	(542)
	Loans, net			1,467,551	1,438,767	1,395,808	1,279,200	28,784	188,351
	Premises and equipment, net			2,632	2,636	2,762	2,855	(4)	(223)
	Bank owned life insurance			22,694	22,534	22,372	22,054	160	640
	Deferred tax asset, net			15,187	15,346	15,027	16,046	(159)	(859)
	Interest receivable and other assets			27,493	27,754	28,575	24,119	(261)	3,374
Total Assets				$ 1,924,206	$ 1,903,455	$ 1,966,784	$ 1,887,233	$ 20,751	$ 36,973

Liabilities and Shareholders' Equity
	Deposits
		Noninterest-bearing demand		$ 647,042	$ 662,809	$ 671,285	$ 626,723	$ (15,767)	$ 20,319
		Interest bearing		1,021,068	993,554	1,057,847	1,025,549	27,514	(4,481)
			Total deposits	1,668,110	1,656,363	1,729,132	1,652,272	11,747	15,838
		Subordinated debentures, net of issuance costs		11,999	11,988	11,977	21,952	11	(9,953)
		Interest payable and other liabilities		15,199	14,800	13,929	15,282	399	(83)
Total Liabilities				1,695,308	1,683,151	1,755,038	1,689,506	12,157	5,802

Shareholders' Equity
		Common stock		101,404	100,846	101,495	89,829	558	11,575
		Retained earnings		141,250	133,594	125,444	125,400	7,656	15,850
		Accumulated other comprehensive loss		(13,756)	(14,136)	(15,193)	(17,502)	380	3,746
			Total shareholders' equity	228,898	220,304	211,746	197,727	8,594	31,171
	Total Liabilities and Shareholders' Equity			$ 1,924,206	$ 1,903,455	$ 1,966,784	$ 1,887,233	$ 20,751	$ 36,973


SBA Paycheck Protection Program Loans				81	257	306	414	(176)	(333)

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


			For the Three Months Ended
			For the Three Months Ended			Variance
			March 31, 2026	December 31, 2025	March 31, 2025	03/26 - 12/25	03/26 - 03/25
Interest and Dividend Income
	Loans		$ 23,069	$ 22,969	$ 20,533	$ 100	$ 2,536
	Investment securities		2,034	2,200	2,334	(166)	(300)
	Other		1,262	2,075	2,673	(813)	(1,411)
		Total interest and dividend income	26,365	27,244	25,540	(879)	825
Interest Expense
	Other deposits		6,180	6,534	6,587	(354)	(407)
	Time deposits		303	350	859	(47)	(556)
		Total interest expense on deposits	6,483	6,884	7,446	(401)	(963)
	Subordinated debentures		124	124	268	-	(144)
		Total interest expense	6,607	7,008	7,714	(401)	(1,107)
Net Interest Income			19,758	20,236	17,826	(478)	1,932
Credit Loss Expense			709	1,166	155	(457)	554
Net Interest Income After Provision
	for Credit Losses		19,049	19,070	17,671	(21)	1,378

Non-Interest Income
	Gain on sale of premises and equipment		-	-	2	-	(2)
	Service charges, fees and other income		947	1,073	1,065	(126)	(118)
	Farmer Mac referral and servicing fees		305	390	287	(85)	18
	SBA servicing fees and gain on sale of loans		343	57	240	286	103
		Total non-interest income	1,595	1,520	1,594	75	1
Non-Interest Expense
	Salaries and benefits		6,701	5,835	5,935	866	766
	Professional services		1,019	1,109	1,039	(90)	(20)
	Occupancy and equipment		579	591	576	(12)	3
	Data processing and communication		401	441	367	(40)	34
	Other		1,322	1,112	1,310	210	12
		Total non-interest expense	10,022	9,088	9,227	934	795
Net Income Before Provision for Income Taxes			10,622	11,502	10,038	(880)	584
Provision for Income Taxes			2,966	3,352	2,886	(386)	80
Net Income			$ 7,656	$ 8,150	$ 7,152	$ (494)	$ 504

MISSION BANCORP
FINANCIAL HIGHLIGHTS
(Unaudited)
(Dollars in thousands, except per share data)

	As of or for the Three Months Ended

	March 31, 2026	December 31, 2025	September 30, 2025	March 31, 2025

Ratio of total loans to total deposits	89.18 %	88.19 %	81.93 %	78.61 %
Return on average assets	1.63 %	1.66 %	1.77 %	1.56 %
Return on average equity	13.75 %	14.88 %	16.71 %	14.99 %

Net interest margin	4.39 %	4.31 %	4.27 %	4.06 %
Efficiency ratio	46.93 %	41.77 %	41.68 %	47.51 %
Non-interest expense as a percent of average assets	2.13 %	1.86 %	1.86 %	2.01 %
Non-interest income as a percent of average assets	0.34 %	0.31 %	0.38 %	0.35 %
Community Bank Leverage Ratio	12.19 %	11.61 %	11.29 %	11.47 %

Weighted average shares outstanding - basic*	2,915,833	2,915,960	2,919,226	2,915,337
Weighted average shares outstanding - diluted*	2,973,018	2,974,207	2,977,021	2,965,721
Shares outstanding at period end - basic*	2,924,017	2,908,717	2,917,759	2,925,878
Earnings per share - basic	$ 2.63	$ 2.80	$ 2.96	$ 2.45
Earnings per share - diluted	$ 2.58	$ 2.74	$ 2.90	$ 2.41

Total assets	$ 1,924,206	$ 1,903,455	$ 1,966,784	$ 1,887,233
Loans and leases net of deferred fees	$ 1,487,673	$ 1,460,676	$ 1,416,607	$ 1,298,780
Noninterest-bearing demand deposits	$ 647,042	$ 662,809	$ 671,285	$ 626,723
Total deposits	$ 1,668,110	$ 1,656,363	$ 1,729,132	$ 1,652,272
Noninterest-bearing deposits as a percentage total deposits	38.79 %	40.02 %	38.82 %	37.93 %

Average total assets	$ 1,904,171	$ 1,942,161	$ 1,940,923	$ 1,864,899
Average total equity	$ 225,734	$ 217,268	$ 205,128	$ 193,498

Shareholders' equity / total assets	11.90 %	11.57 %	10.77 %	10.48 %
Book value per share	$ 78.28	$ 75.74	$ 72.57	$ 67.58

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

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

				For the Quarter Ended			For the Quarter Ended			For the Quarter Ended
				March 31, 2026			December 31, 2025			March 31, 2025

				Average	Income /	Yield /	Average	Income /	Yield /	Average	Income /	Yield /
				Balance	Expense	Rate	Balance	Expense	Rate	Balance	Expense	Rate
Assets
	Interest earning deposits in other banks			$ 103,689	$ 945	3.70 %	$ 185,641	$ 1,862	3.98 %	$ 232,078	$ 2,519	4.40 %
	Investment securities			241,475	2,034	3.42 %	246,307	2,200	3.54 %	241,737	2,334	3.92 %
	Loans			1,468,635	23,069	6.37 %	1,417,946	22,969	6.43 %	1,298,947	20,533	6.41 %
	Other earning assets			11,047	317	11.64 %	11,039	213	7.66 %	9,026	154	6.92 %

		Total Earning Assets		1,824,846	26,365	5.86 %	1,860,933	27,244	5.81 %	1,781,788	25,540	5.81 %
	Non-interest earning assets			79,325			81,228			83,111
		Total Assets		$ 1,904,171			$ 1,942,161			$ 1,864,899

Liabilities and Capital
	Interest-bearing deposits
		Interest-bearing transaction accounts		$ 939,521	$ 6,128	2.65 %	$ 952,088	$ 6,504	2.71 %	$ 878,043	$ 6,541	3.02 %
		Time deposits		47,374	303	2.59 %	49,906	350	2.78 %	92,409	859	3.77 %
		1031 Exchange deposits		28,630	52	0.74 %	28,630	30	0.42 %	36,369	46	0.51 %
			Total interest-bearing deposits	1,015,525	6,483	2.59 %	1,030,624	6,884	2.65 %	1,006,821	7,446	3.00 %
	Borrowed funds
		Subordinated debt		11,992	124	4.19 %	11,982	124	4.11 %	21,941	268	4.95 %
			Total interest-bearing liabilities	1,027,517	6,607	2.61 %	1,042,606	7,008	2.67 %	1,028,762	7,714	3.04 %
	Noninterest-bearing deposits			634,081			666,460			625,981
			Total Funding	1,661,598	6,607	1.61 %	1,709,066	7,008	1.63 %	1,654,743	7,714	1.89 %
	Other noninterest-bearing liabilities			16,839			15,827			16,658
		Total Liabilities		1,678,437			1,724,893			1,671,401
		Total Capital		225,734			217,268			193,498
			Total Liabilities and Capital	$ 1,904,171			$ 1,942,161			$ 1,864,899

	Net Interest Margin			4.39 %			4.31 %			4.06 %
	Net Interest Spread			4.25 %			4.18 %			3.92 %

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

								Variance
				March 31, 2026	December 31, 2025	September 30, 2025	March 31, 2025	03/26 - 12/25	03/26 - 03/25
	Loans
		Construction and land development		$ 85,555	$ 66,699	$ 63,454	$ 64,330	$ 18,856	$ 21,225
		Secured by farmland		174,088	169,321	155,882	138,903	4,767	35,185
		Residential 1 to 4 units		63,520	67,567	67,517	60,385	(4,047)	3,135
		Multi-family		80,771	78,342	72,470	57,367	2,429	23,404
		Owner occupied commercial real estate		532,534	525,130	515,348	498,524	7,404	34,010
		Non-owner occupied commercial real estate		265,092	256,052	257,864	217,358	9,040	47,734
		Commercial and industrial		200,915	203,716	194,741	172,577	(2,801)	28,338
		Agricultural production		88,053	95,964	92,042	91,585	(7,911)	(3,532)
		Other loans		194	934	240	328	(740)	(134)
		Net deferred fees-costs		(3,049)	(3,049)	(2,951)	(2,577)	-	(472)
			Total Loans	$ 1,487,673	$ 1,460,676	$ 1,416,607	$ 1,298,780	$ 26,997	$ 188,893

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

		March 31, 2026	December 31, 2025	September 30, 2025	March 31, 2025
Asset quality
Loans past due 90 days or more and accruing interest		$ -	$ -	$ -	$ -
Nonaccrual loans		$ 130	$ 2,624	$ 717	$ 871
Restructured loans
	Nonperforming restructured loans	$ -	$ -	$ -	$ -
	Performing restructured loans	$ -	$ -	$ -	$ -
Other real estate owned		$ -	$ -	$ -	$ -
Total nonperforming assets		$ 130	$ 2,624	$ 717	$ 871

Allowance for credit losses to total loans		1.35 %	1.50 %	1.47 %	1.51 %
Allowance for credit losses to nonperforming loans		15478.46 %	834.95 %	2901.06 %	2247.99 %
Nonaccrual loans to total loans		0.01 %	0.18 %	0.05 %	0.07 %
Nonperforming assets to total assets		0.01 %	0.14 %	0.04 %	0.05 %

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SOURCE Mission Bank

Company Announcements

Mission Bancorp Reports First Quarter Earnings of $7.7 Million, a 7% Increase Year Over Year, and Annual Loan Growth of 14.5%. Announces Extension of Stock Repurchase Plan and Declares 5.00% Annual Stock Dividend.