Mission Valley Bancorp announced Thursday net income of $1.2 million, or $0.38 per diluted share, through the second quarter of 2020 compared to net income of $1.5 million, or $0.47 per diluted share, through the second quarter of 2019.
The year over year variance was primarily attributable to the $837 thousand increase in provision for loan and lease losses due to the impact of COVID-19 compared to the same period in 2019, partially offset by the $262 thousand increase in non-interest income, and $143 thousand decrease in non-interest expense compared to the same period in 2019.
June 30, 2020 Second Quarter Highlights
– Gross loans outstanding totaled $334.3 million, an increase of $90.8 million, or 37.30%, over June 30, 2019 and $68.0 million, or 25.52% from Dec. 31, 2019.
– SBA Paycheck Protection Program (“PPP”) loans funded in the second quarter of 2020 totaled $69.9 million with deferred loan origination fees (net of costs) of $2.1 million, which contributed $318 thousand to interest and fees on loans in the quarter.
– Total deposits were $392.9 million, an increase of $108.1 million, or 37.95% over June 30, 2019 and $91.7 million, or 30.46% from Dec. 31, 2019.
– Assets totaled $510.1 million at June 30, 2020, an increase of $172.5 million, or 51.09%, over June 30, 2019, and $152.2 million, or 42.54% from Dec. 31, 2019.
– Capital ratios remain strong at June 30, 2020 as reflected by Total Leverage Ratio of 9.3%, Common Equity Tier 1 Capital Ratio of 13.2%, Tier 1 Capital ratio of 13.2%, and Total Risk Based Capital of 16.4%, which continue to place the Company in the “Well Capitalized” category for regulatory purposes.
Tamara Gurney, President and CEO, stated, “In an extremely challenging period, Mission Valley delivered for our clients, our employees, our shareholders and our communities. We provided $70 million in PPP loans, grew our total assets to over $500 million from record loan and deposit growth largely driven by the impact of PPP loans, strengthened our balance sheet by increasing liquidity, reserves, and capital, and invested in technology and equipment to keep our employees safe.”
Gurney concluded, “Our strong balance sheet and liquidity position will allow Mission Valley to be a source of strength and support for our clients and communities for a long time.”
About Mission Valley Bank
Mission Valley Bank is a full-service, independent, commercial bank specializing in the banking needs of small to medium businesses. Mission Valley Bank has full service branches in the San Fernando & Santa Clarita Valleys as well as a Loan Production Office located in the South Bay. The Bank was chartered in July 2001, with a vision of local ownership and a commitment to providing financial solutions to meet the needs of its clients.
Certain matters discussed in this news release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based upon current management expectations and, therefore, are subject to certain risks and uncertainties that could cause actual results, performance, or achievements to differ materially from those expressed, suggested, or implied by the forward-looking statements. Forward-looking statements are effective only as of the date that they are made and Mission Valley Bank assumes no obligation to update this information. For more information, visit www.MissionValleyBank.com.