Mission Bancorp reported second-quarter 2026 net income available to common shareholders of $8.2 million, or $2.73 per diluted share. This compared with $3.1 million, or $1.05 per diluted share, during the same quarter last year and $7.7 million, or $2.58 per diluted share, in the first quarter of 2026.
Net income increased by approximately $5.1 million, or 161.8%, from the prior-year quarter. Compared with the first quarter, earnings rose by approximately $600,000, or 7.2%.
Mission Bancorp’s total assets reached approximately $2.01 billion as of June 30, 2026, representing an increase of 8.4% from a year earlier. The Bakersfield, California-based company is the holding company for Mission Bank, Mission 1031 Exchange and Mission Community Development.
Gross loans increased 12.9% year over year to approximately $1.53 billion. Loan balances also grew by $42.5 million, or 2.9%, from the end of the first quarter, with recent growth concentrated in commercial real estate, commercial and industrial lending, and construction and land development.
Total deposits rose 7.6% from a year earlier to approximately $1.75 billion. Non-interest-bearing deposits reached $695.1 million and represented 39.7% of total deposits at the end of the quarter.
Net interest income increased 12.9% year over year to $20.4 million. The improvement was driven primarily by loan growth, relatively stable loan yields and lower funding costs.
Mission Bancorp reported a net interest margin of 4.35%, compared with 4.07% in the prior-year quarter and 4.39% in the first quarter. The year-over-year expansion reflected a shift toward higher-yielding loans and a 40-basis-point decline in the cost of interest-bearing liabilities.
Non-interest expense declined 32.6% from the prior-year quarter to $9.9 million, primarily because the earlier period included one-time expenses. Excluding those items, expenses increased modestly as Mission Bancorp invested in hiring and employee compensation.
The company’s efficiency ratio improved to 44.8% from 73.8% a year earlier and 46.9% in the first quarter. A lower efficiency ratio generally indicates that a bank is spending less to generate each dollar of revenue.
Credit quality remained strong, with nonaccrual loans representing 0.02% of total gross loans. Nonperforming assets totaled approximately $305,000, or 0.02% of total assets, while the allowance for credit losses equaled 1.37% of gross loans.
Mission Bank’s Community Bank Leverage Ratio increased to 12.22%, remaining above the 9% level generally required to be considered well capitalized. Total shareholders’ equity rose 19% year over year to approximately $237.2 million.
During the quarter, Mission Bancorp repurchased 3,000 shares at an average price of $102.50 under its existing stock repurchase plan. Since the plan began, the company has repurchased 37,576 shares at an average price of $93.10.
KEY QUOTE:
“We have seen another quarter of strong performance with results that have propelled us beyond the $2.0 billion asset mark. We are reporting second quarter earnings of $8.2 million and annual loan and deposit growth of 12.9% and 7.6%, respectively.”
“We have also generated 9.4% year-over-year growth in non-interest-bearing deposits, further proving the strength and efficacy of our relationship-driven business model and commitment to high-touch personal service. I would like to thank the dedicated team members who helped us reach this milestone. We have bolstered the overall strength of our balance sheet and are well positioned for the second half of the year.”
A.J. Antongiovanni, President and CEO of Mission Bank
