#United States #Bakersfield #financial report #Mission Bancorp #A.J. Antongiovanni

Mission Bancorp's Financial Performance Overview

Bakersfield, California — In its latest financial statement, Mission Bancorp announced a net income of $3.1 million for the second quarter of 2025. This figure translates to $1.11 per diluted common share, highlighting a decrease compared to the previous year's $7.3 million, or $2.60 per share. The bank's performance reflects an annualized loan growth rate of an impressive 18%, evidencing robust demand in the lending market despite a backdrop of challenges such as elevated lending rates and macroeconomic uncertainties.

Key Highlights from the Financial Report

Chief Executive Officer A.J. Antongiovanni elaborated on the financial results, noting that the lower income was primarily influenced by several one-time, non-recurring expenses. Notable factors included:

• - Increased provisions for credit losses due to unexpected loan growth
• - Expenses related to litigation settlements
• - Initial costs associated with opening a new loan production office in Westlake Village
• - Tax-loss harvesting aimed at optimizing the company's tax position

Antongiovanni expressed optimism about the second quarter's performance, stating that despite these challenges, the bank achieved significant loan demand, contributing to the 18% growth in loans. He emphasized that this growth was achieved through a relationship-focused model that prioritizes customer service, even in a climate of economic uncertainty marked by inflation and tariff discussions.

Financial Metrics Detailed

In particular, gross loans rose by $123.7 million, reaching $1.36 billion as of June 30, 2025, a 10% increase from June 30, 2024. Additionally, total deposits grew by $143.5 million to a total of $1.63 billion year-over-year, with non-interest-bearing deposits accounting for approximately 39% of the total deposits.

The bank maintained a healthy credit quality, with nonaccrual loans standing at a mere 0.13% of total gross loans, slightly higher than the previous year's figure of 0.04%. The allowance for credit losses was reported at 1.50% of gross loans, down from 1.52% a year prior, exhibiting the bank's stable credit profile amidst growing loan volumes.

Revenue Streams and Expenses

For the quarter, net interest income reached $18.1 million, representing a net interest margin of 4.07%. This figure saw a decline when compared to the same quarter last year but reflects an increase from the previous quarter, attributed mainly to an uptick in interest income despite a rise in interest expenses due to competition for deposits. The latest data indicates the cost of interest-bearing deposits surged slightly to 3.01%.

Strategic Outlook

Looking ahead, Antongiovanni remained positive about the financial trajectory, asserting that the successful navigation of non-recurring expenses positions the bank favorably for future normalization of earnings. Continued loan growth is projected, and efforts will persist in geographic expansion alongside a commitment to enhancing service delivery.

“Despite the unforeseen hurdles, including high interest rates and sluggish project developments, we see a promising horizon ahead for Mission Bancorp,” said Antongiovanni. “Our focus remains on building customer relationships and investing in our future.”

Conclusion

In summary, Mission Bancorp's Q2 2025 results underscore the bank's ability to adapt and flourish in challenging markets, spotlighting its commitment to growth and customer service excellence. As they move past the recent one-time financial challenges, stakeholders appear optimistic about the bank's operational strategy and performance in the upcoming quarters.