Mission Bancorp · OTC:MSBC

Mission Bancorp — Debt Investor Presentation (March 2021)

23 slides from Mission Bancorp's debt investor presentation, March 2021

  1. Slide 1: Mission Bancorp Private Placement of Subordinated Debt

    March 2021 Mission Bancorp Private Placement of Subordinated Debt Confidential Investor Presentation

  2. Slide 2: Legal Disclaimer

    . :: MISSION BANCORP Legal Disclaimer Mission Bancorp, Inc. (together withits wholly-owned banksubsidiary, Mission Bank, the “Company”) has preparedthis document andis furnishingit solely for generalinformational purposes andsolelyfor use by prospective participants in the proposedprivate placement

  3. Slide 3: Terms of the Proposed Offering

    . :: MISSION BANCORP Terms of the Proposed Offering Issuer Mission Bancorp (OTCPK: MSBC) Security Subordinated Notes due 2031 Amount $10 Million Security Rating Unrated Issuance Type Private Placement Offering Structure Fixed-to-Floating rate (Fixed during First Five Years) Term 10 Years No Call Per

  4. Slide 4: Experienced, High Achieving Leadership Team

    \I ION BA CORP Experienced, High Achieving Leadership Team Andrew Antongiovanni (age 42) Michael Congdon (age 55) President, CEO & Director SVP, Chief Credit Officer Years at MSBC: 18 Years at MSBC: 6 Years in financial services: 20 Years in financial services: 30+ Mr. Antongiovanni has been the Chi

  5. Slide 5: Mission Bancorp Overview: Commercial Bank Focus in Growing Markets

    \I ION BA CORP Mission Bancorp Overview: Commercial Bank Focus in Growing Markets Business Highlights Branch Map  Founded in 1998 in Bakersfield, CA as a state chartered bank with a focus on commercial banking  Holding company formed in 2001 and now has four subsidiaries ". -. f lll ,-+ ~  Missio

  6. Slide 6: Investment Highlights

    \ISSION BANCORP Investment Highlights 1 Exceptional financial performance: 1.4% ROAA and 17% ROAE in 2020 2 Foundation of low-cost, customer deposit funding: 0.12% cost of funds in 2020¹ 3 Proven dedication to superior credit quality & enterprise risk management: 0.01% NPA/A as of 12/31/20 4 Strong

  7. Slide 7: Mission Bancorp Milestones

    . :: MISSION BANCORP Mission Bancorp Milestones Founded 1998  Mission Bank opens for business with$5.2MM in assets ($5.0MM of capital raised) with a single branch headquartered indowntown Bakersfield, California ~ 2015  Farmer Mac program developed by Ag Division  Mission Bank achieves positive m

  8. Slide 8: Strong Support from Dedicated Board of Directors

    \I ION BA CORP Strong Support from Dedicated Board of Directors Board of Directors Year First Appointed Name Role Ownership %* Age Director Bruce Beretta Chairman 7% 67 1998 Andrew J. Antongiovanni CEO, Director 8% 42 2011 Bryan Batey Director 9% 58 2013 John Bidart Director 6% 45 2010 Arnold Cattan

  9. Slide 9: Strong Position in Legacy Markets, Growth Potential in New Markets

    \I ION BA CORP Strong Position in Legacy Markets, Growth Potential in New Markets 2021 2010-2021 2021-2026 Market Percent of Median Population Projected Change # Deposits Share U.S. Franchise Total Household Change Population HH Income MSA Rank Branches ($000) (%) (%) Population Income (%) (%) (%) B

  10. Slide 10: Balance Sheet Trends

    \I ION BA CORP Balance Sheet Trends CAGR Balance Sheet ($000) 2016 2017 2018 2019 2020 2016Y – 2020Y Key Highlights Assets Cash & Securities 158,776 146,014 120,270 173,352 450,622 23%  Non-interest bearing demand deposits grew Loans: Construction & Real Estate 323,530 390,415 440,941 484,977 546,0

  11. Slide 11: High Rates of Organic Growth

    . :: MISSION BANCORP High Rates of Organic Growth Total Deposits ($MM) Total Gross Loans ($MM) 51% $1,146 23% $806 18% $577 2% $591 28% I $759 17% $549 19% I $653 I PPP: $52 I $489 I 23% $469 I $380 I I 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 NOTE: FINANCIAL DATA AS OF DECEMBER 31, 2020 SO

  12. Slide 12: Commercial Lending Focus, Product Type and Geographic Diversification

    MISSION Bt\NCORP Commercial Lending Focus, Product Type and Geographic Diversification 2020Y Loan Composition by Type 2020Y Loan Composition by Region Agric Const & Other Prod Land Dev. 1% 4% 8% Tot 1-4 Fam Ventura 4% 21% C&I Loans Multifamily 18% 2% Total Stockton Gross 3% Central San Luis Valley L

  13. Slide 13: Disciplined Approach to Credit Selection and Oversight

    \IS ION BANCORP Disciplined Approach to Credit Selection and Oversight Credit Culture  Prudent risk management philosophy with a disciplined approach to credit lending and underwriting LTV Limits for Real Estate Secured Loans LTV Limit  Focused on making quality loans and maintaining a diversified

  14. Slide 14: Covid-19 Deferral Update: 99% Reduction in Deferrals

    \I ION BA CORP Covid-19 Deferral Update: 99% Reduction in Deferrals Modified Loans by Call Code at Deferral Date Reduction in Deferrals as of 12/31/2020 ■ 1-4 FAMILY RES 1ST LIEN SEC'D TERM LOANS - 1% 7% $135.4 O/O & NON O/O 14% ■ COMMERCIAL & INDUSTRIAL LOANS TO US ADDRESSES ■ MULTIFAMILY (5 OR MOR

  15. Slide 15: Track Record of Superior Credit Quality

    \I ION BA CORP Track Record of Superior Credit Quality NPAs / Assets (%) NCOs / Avg. Loans & Leases (%) Mission Bank Peer Median Mission Bank Peer Median 0.71 0.22 0.16 0.15 0.15 0.38 0.13 0.37 0.34 -----.J-o---------i-01------□ 0.27 0.24 0.03 0.03 0.00 0.01 0.14 0.11 .-----~- --=---__..--g--!""""""

  16. Slide 16: Exceptional, Low Cost, Customer Deposit Base

    \I ION BA CORP Exceptional, Low Cost, Customer Deposit Base As of 12/31/2020 Deposit Composition ($000) Balance % of Total Deposits Historical Cost of Funds¹ (%) Non-Interest Bearing Demand 655,021 57% Mission Bank Peer Median Money Market Accounts 310,643 27% 0.74 NOW Accounts 63,116 6% 0.55 Saving

  17. Slide 17: 2020 Highlights – Income statement

    \I ION BA CORP 2020 Highlights – Income statement CAGR Income Statement ($000) 2016 2017 2018 2019 2020 2016-2020 Key Highlights Interest Income Loans (Including Fees) 16,846 21,110 27,353 33,219 39,337 Cash & Securities Interest Income 1,739 1,908 2,384 3,211 2,606 Total Interest Income 18,585 23,0

  18. Slide 18: Leading NIM and Operating Efficiency Drive Superior Profit Performance

    \I ION BA CORP Leading NIM and Operating Efficiency Drive Superior Profit Performance ROAE (%) ROAA (%) Mission Bancorp --0- Peer Median Mission Bancorp Peer Median 21.4 18.1 1.90 1.78 16.9 1.45 11.4 12.2 1.05 1.02 1.37 1.36 12.3 11.0 0.94 1.02 9.3 8.4 8.7 0.90 T 2016Y 2017Y 2018Y 2019Y 2020Y 2016Y

  19. Slide 19: Securities Portfolio

    \IS ION BANCORP Securities Portfolio Investment Portfolio Characteristics (12/31/20) Agency Notes/Bonds - VR 2%  Book Value: $163MM Certificates of Deposit Structured CMBS - VR 8% - FR 7%  Market Value $166MM Structured CMBS - FR 7% CMBS Pools - Fixed  Effective Duration: 4.03 years Rate 3% SBA L

  20. Slide 20: Non-Interest Bearing Deposits & Commercial Loan Portfolio Contribute to Asset Sensitive Balance Sheet

    \I ION BA CORP Non-Interest Bearing Deposits & Commercial Loan Portfolio Contribute to Asset Sensitive Balance Sheet Parallel -200 bp -100 bp +100 bp +200 bp +300 bp Net Interest Income (0.9%) (0.3%) 10.5% 23.4% 36.7% Economic Value of Equity (6.2%) (6.8%) 27.1% 43.2% 58.3% ■ Net Interest Income ■ E

  21. Slide 21: Abundant Sources of Liquidity and Capital

    \I ION BA CORP Abundant Sources of Liquidity and Capital Loans / Deposits (%) Funding Sources¹ ($000) 12/31/2020 ■ Mission Bancorp Cash 292,141 93 81 86 78 Total Alternative Funding Sources² 477,884 70 Total Available Funding Sources 769,985  $2.5MM of cash at the Holding Company as of 12/31/2020 2

  22. Slide 22: Illustrative Pro Forma Capitalization

    \I ION BA CORP Illustrative Pro Forma Capitalization New Highlights Debt / Equity 12/31/2020 Issuance Pro Forma Subordinated Debt Total Holding Company Debt $10,000 $10,000 $10,000 $10,000 $20,000 $20,000  Low level of debt on a pro forma basis Holding Company Equity $102,130 $102,130  No current

  23. Slide 23: Thank you!

    Thank you! MISSION BANCORP 23

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