Mission Valley Bancorp President & CEO Tamara Gurney announced a net income of $2.17 million for the period ending June 30, 2018 this week.

“Mission Valley Bancorp closed the second quarter of 2018 with net earnings of $2,171,000,” Gurney said. “While strong, these earnings reflect a slight decrease of 1.9 percent from the record earnings of $2,213,000 posted for June 30, 2017.”

During the third quarter of 2017, Mission Valley restored its $10.3 million Community Capital Investment (CDCI) to the Treasury due to the upcoming 9 percent rate increase in 2018, according to Gurney.

“With interest rates steadily rising, the company deemed it prudent to replace the CDCI investment with short-term private debt at then lower interest rates,” Gurney said. “As expected, other interest expense rose by more than 293 percent, closing the six months ending June 30, 2018 at $378,000, up $282,000 from the $96,000 reported at June 30, 2017.”  

On the other hand, the total interest income was positively impacted by the steady interest rates with a $523,000 or 7.5 percent increase from the same time last year. However, the interest expense on deposits went down to $167,000, a decrease of 8 percent, or $15,000.

“In spite of the significant increase in total interest expense, net interest income increased by 4.7 percent, closing the first half of 2018 at $6.97 million, up from the $6.66 million reported on June 30, 2017,” said Gurney. “As a result of tax reform implemented in the fourth quarter of 2017, earnings per share improved to $0.68 as of June 30, 2018, up from the $0.67 reported at June 30, 2017.”

Gain on sale of SBA loans in the secondary market decreased during the first half of the year, closing June at $664,000, as compared to $781,000 for the same period in 2017 as the organization chose to retain some of the loans available for sale through the quarter’s end.

Other operating income declined by $159,000 as a result of variations in net servicing, merchant and interchange fees. Therefore total other income closed the second quarter at $2.14 million, down 10.9 percent compared to the $2.40 million reported as of June 30, 2017.  

On the balance sheet, net loans closed the second quarter at $230.7 million, compared to $242.4 million at year end, December 31, 2017. Total assets closed the second quarter of 2018 at $319.5 million, as compared to $330.4 million reported December 31, 2017. Total deposits closed the second quarter of 2018 at $267 million, as compared to $280.2 million as of December 31, 2017.   

These results were driven by various factors, including an uptick in unscheduled loan payoffs and large tax payments due from several client relationships.

Both Mission Valley Bancorp and Mission Valley Bank capital ratios continue to exceed regulatory requirements, with Mission Valley Bancorp reporting a total leverage ratio of 11.7 percent, common equity tier 1 capital ratio of 12.5 percent, tier 1 capital ratio of 14.7 percent, and a total capital ratio of 16.0 percent.  

Likewise, Mission Valley Bank reported a total leverage ratio of 14 percent, common equity tier 1 capital ratio of 17.7 percent, tier 1 capital ratio of 17.7 percent, and a total capital ratio of 18.9 percent.

Regulatory requirements for a “well-capitalized bank” are 5 percent, 6.5 percent, 8 percent and 10 percent, respectively.

“Mission Valley is a relationship-driven, community-based business bank dedicated to maintaining our high touch, personal service culture while providing state-of-the-art technologies to our clients, including robust online and mobile banking platforms,” said Gurney. “We have an extraordinary team, committed to ensuring that we do what is right for our clients, our shareholders and the communities we serve. The combination of a sound, diversified balance sheet, solid capital base, and strong team continue to steer our course of steady and controlled growth throughout the remainder 2018 and beyond.”

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. 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.

For more information about Mission Valley Bank, click here.

Forward-looking statements:

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.

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