#United States #earnings report #Mission Bank #Bakersfield #Mission Bancorp

Mission Bancorp Reports Strong Q4 and Annual Earnings for 2024

Mission Bancorp, the parent company of Mission Bank, has announced its financial results for the fourth quarter and the entire year of 2024. The bank reported a net income of $7.7 million for the fourth quarter, equating to $2.85 per diluted share. This is a slight decrease from the $7.8 million reported in Q4 2023. However, the annual earnings for 2024 totaled $30.1 million, demonstrating resilience in a competitive banking landscape marked by heightened interest rates.

President and CEO AJ Antongiovanni expressed pride in the quarterly results, noting a sustained deposit growth of 14.8% in 2024, equating to a significant increase of $212.6 million in total deposits, which reached $1.65 billion by year-end. This growth underscores the bank's ability to attract and retain customers despite the challenges posed by elevated rates and strong competition, including from government entities like the US Treasury.

Financial Highlights

The fourth quarter results highlighted several key financial metrics for Mission Bancorp:

• - Gross loans rose to $1.29 billion, reflecting a 6.6% year-over-year increase.
• - Noninterest-bearing deposits contributed to 39.2% of total deposits.
• - The allowance for credit losses remained stable at 1.50%, showcasing the bank's effective risk management strategies.

Antongiovanni shared, "Our hard-working bankers and their dedication to providing concierge-level services have made this year a celebration of success. We are also grateful for the trust our customers place in us, which has been instrumental in achieving these results."

Insights into Income and Expenses

Further analysis of the income statement reveals that net interest income for Q4 2024 was $17.7 million, which reflects a net interest margin of 3.96%. This was a slight decline from the previous year's margin due to rising interest expenses on deposits, but was partially offset by increased interest income stemming from growth in the bank's loan portfolio.

Meanwhile, non-interest income decreased to $1.6 million for Q4 2024, primarily due to lower SBA servicing fees and gains from loan sales. However, non-interest income for the full year rose by 33.5% compared to the previous year, underlining a robust operational performance.

Non-Interest Expense Management

In terms of expenses, Mission Bancorp successfully lowered its non-interest expenses by 11.9% in Q4 to $8.1 million, largely due to reduced legal and personnel costs. Comparatively, the overall non-interest expenses for 2024 increased to $34.9 million from $31.6 million in the prior year, attributed primarily to rising salaries and related benefits from new hire activity.

Outlook and Future Planning

As Mission Bancorp looks to grow, it continues investing in customer acquisition and retention programs, advancing its digital banking capabilities, and enhancing branch services to ensure a competitive edge in the banking sector. The recently extended stock repurchase program signals the company’s commitment to shareholder returns as well as its confidence in future growth.

In conclusion, 2024 has proven to be a landmark year for Mission Bancorp, with substantial financial achievements that set a promising foundation for 2025. With increasing deposits, stable credit quality, and effective expense management, the bank appears well-positioned to navigate ongoing market challenges while continuing to meet customer needs effectively.

For more details on Mission Bancorp and its initiatives, visit Mission Bank's official website.