Mission Bancorp Posts Record $9.2 Million Profit in Third Quarter
Key Facts
Mission Bancorp said on October 26 that unaudited net income available to common shareholders was $9.2 million, or $3.05 per diluted share, in the third quarter of 2026. That compares with $8.6 million and $2.90 per share in the same period last year. Earnings also exceeded the second-quarter level, when net income was $8.2 million and earnings per share were $2.74. The company said net income increased $0.5 million, or 6.1%, year over year, and $1.0 million, or 11.6%, from the previous quarter. The results came alongside higher net interest income, as the company continued to grow deposits and loans.
Net interest income was $21.6 million in the third quarter, compared with $20.0 million a year earlier and $20.4 million in the previous quarter. The net interest margin reached 4.38%, up from 4.27% in the third quarter of 2025 and 4.35% in the second quarter of 2026. The company attributed the 8.2% year-over-year increase in net interest income mainly to loan portfolio growth and lower funding costs. It said those factors outweighed the effect of lower yields on interest-earning assets after the Federal Reserve cut interest rates in late 2025. The comparison puts the margin improvement on an upward annual and quarterly trajectory, alongside an expansion in interest income.
Total deposits reached $1.81 billion on September 30, up $84.9 million, or 4.9%, from a year earlier and $62.7 million, or 3.6%, from June 30. Noninterest-bearing deposits accounted for 38.7% of the total, or $701.7 million. Management described deposit growth as 14% on an annualized basis, a measure that differs from the actual 4.9% increase in the deposit balance over the year. The company attributed the increase to higher average balances among existing customers, a lower account closure rate and stable new account openings. Chief Executive AJ Antongiovanni said annualized deposit growth accompanied a year-over-year increase in loans of more than $107 million.
Gross loans totaled $1.52 billion at the end of September, up $107.3 million, or 7.6%, from a year earlier. They fell $6.3 million, or 0.4%, from the end of June, underscoring the difference between the annual growth pace and the latest quarterly change. Antongiovanni said the company had expanded its presence in existing markets and opened a new office in Fresno over the past two quarters, adding that the office was driving growth. He also said the quarter's results reflected the strength of the company's team and customer relationships. Mission Bancorp's assets totaled $2.07 billion on September 30, up 5.4% year over year and 2.9% from June.
Noninterest expense rose to $10.1 million in the third quarter, up $1.0 million, or 10.7%, from $9.1 million in the same period last year. On a quarterly basis, expenses increased $0.2 million, or 1.8%, from $9.9 million in the second quarter. The company recorded a provision for credit losses of $0.5 million, matching the provision in the same period last year and below $0.8 million in the previous quarter. The company attributed the latest provisions mainly to loan growth and macroeconomic changes. On capital, the bank's leverage ratio was 12.22% on September 30, compared with 11.29% a year earlier; the company said the ratio generally required for an institution to be described as “well capitalized” is above 8.00%.
The company extended its 2022 share repurchase plan, implemented under Rule 10b5-1, by six months through April 22, 2027. The plan allows repurchases of up to $4.95 million of common stock, while the company retains the right to suspend or terminate it at any time. Mission Bancorp made no purchases under the plan during the third quarter. Since the plan began, it has repurchased 37,576 shares at an average price of $93.10 per share. Antongiovanni said inflation and higher interest rates could contribute to an economic slowdown, pointing to risks around the business outlook, while the plan extension was included in the earnings announcement published on October 26.