Mission Bancorp, which has business banking offices in Ventura and San Luis Obispo, set a new all-time record for net income when it announced its third quarter financial results.

The bank reported a net income of $4.2 million, or $2.07 per basic common share, compared to the net income of $3.7 million, or $1.85 per basic common share, for the same quarter a year before.

A.J. Antongiovanni, the president and CEO of Mission Bancorp, attributed the growth to deposit growth.

“Our deposits grew by $74 million at an annualized rate of over 30% during the third quarter with the majority of that growth in non-interest-bearing accounts,” Antongiovanni said in an Oct. 29 news release. “The continued success in deposit generation is further testament to the execution of our core business banking strategy and the byproduct of that success is the achievement of a record-setting quarterly net income of $4.2 million.”  

The bank’s net income interest growth was achieved despite a decline in net interest margin, which was down more than 100 points compared to the same time the year before. Mission Bancorp said the decline in capital market interest rates and surge in liquidity from PPP funding led to the impact on the margin.

Mission Bancorp also saw increased expenses in salaries and benefits expenses. This was the first full quarter of operations for the new business banking team in SLO, and the bank incurred expenses while it was building the team there.