Local bank serving the Santa Clarita and San Fernando Valleys, Mission Valley Bank, earned their highest third quarter net income since being founded in 2001.
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Mission Valley President and CEO Tamara Gurney announced Thursday that the company earned $1,195,000 for the period that ended Sept. 30, more than two times the Sept. 30, 2012 amount.
“I am pleased to report that 2013 continues to be a strong year for Mission Valley Bancorp,” Gurney said. “Net income of $1,195,000–after provision for income taxes–represents the best September 30 close in the history of our company, marking our second consecutive record quarter for the year.”
Gurney attributed Mission Valley Bank’s success to multiple things, including their less traditional services, including merchant bankcard processing, specialized lending solutions and streamlined operations.
Total deposits were up by more than 13 percent, from $203 million in 2012 to $230 million in 2013, Gurney said.
Loan production remained steady, while net interest income increased by more than 18 percent.
“Couple this with a 22 percent decrease in interest expense as well as continued and significant improvement in operating expense–down by $477,000 from the same period a year prior– Mission Valley achieved favorable year-over-year improvements in operating performance,” Gurney said.
Mission Valley capital ratios exceed regulatory requirements with Tier 1 Leverage, Tier 1 Risk-based Capital and Total Risk-based Capital Ratios of 13.8 percent, 17.9 percent, and 19.1 percent, respectively, as of Sept. 30.
Regulatory requirements for a “well-capitalized bank” are five percent, six percent, and 10 percent, respectively. Mission Valley’s reserve for loan losses as of Sept. 30 was $4.8 million, or 2.67 percent of total loans, compared to $5.3 million or 3.02 percent of total loans as of Sept. 30.
“We continue to see positive indicators throughout the business communities we serve,” Gurney said. “Continued improvement being seen in activity, sales and employment are all very encouraging and while we remain cautious, we are looking ahead with anticipation and the expectation of continued steady improvement for our Bank, our community, our shareholders and our nation.”
About Mission Valley Bank
Mission Valley Bank is a full-service, independent, commercial bank specializing in the banking needs of small to medium businesses in the San Fernando and Santa Clarita Valleys. Mission Valley 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.
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Source: Santa Clarita News