The Mission Valley Bancorp announced a successful second quarter of 2019, achieving a net interest income over 5 percent higher than the first two quarters of 2018.

Bank officials state that this success is the result of strategic decisions to focus on increasing central and sustainable revenue sources, as opposed to reliance on one-time gains.

Mission Valley Bancorp announced Wednesday a net income of $1.5 million ($0.47 per diluted share), through the second quarter of 2019 compared to a net income of $2.171 million ($0.68 per diluted share) through the second quarter of 2018.

“Mission Valley’s performance during the first half of 2019 reflected management’s focus on enhancing the bank’s true franchise value by growing core, sustainable, top-line revenue sources, while decreasing reliance on one-time income sources such as gain on SBA loan sales,” said Tamara Gurney, president and CEO.

The primary driver of the year-over-year variance was the fact that gain on sale of loans totaled $93,000 in the first two quarters of 2019, compared to $664,000 in the first two quarters of 2018.

“Additionally, our strong liquidity and capital positions allowed us to pay down over $3 million in principal on outstanding debt at the holding company, substantially reducing our interest costs going forward,” said Gurney.

• Net interest income before provision for loan and lease losses rose $388,000 to $7.4 million, an increase of 5.56 percent compared to the first two quarters of 2018.
• Total loans outstanding, excluding loans held for sale, totaled $239.9 million in the second quarter. This is an increase of $24.6 million (11.44 percent) over second quarter 2018 and a slight decrease of $3.7 million (1.47 percent) from fourth quarter 2018.
• Assets totaled $337.6 million at June 30, 2019, an increase of $17.2 million, (5.37  percent) over second quarter 2018, and a decrease of $13.3 million, (3.80 percent) from fourth quarter 2018.
• Total deposits were $284.8 million, an increase of $17.8 million (6.67 percent) over second quarter 2018 and a decrease of $11.9 million (4.02 percent) from fourth quarter 2018, primarily due to tax payments made by clients.
• Capital ratios remain strong as of June 30 as reflected by Total Leverage Ratio of 12.1 percent, Common Equity Tier 1 Capital Ratio of 12.5 percent, Tier 1 Capital ratio of 14.6 percent, and total risk-based Capital of 15.9 percent.
• Paid down outstanding debt $3.2 million during the second quarter, resulting in annualized interest savings in excess of $167,000.

“Mission Valley is a relationship-driven, community-based business bank.  We have a sound, diversified balance sheet, a solid capital base to carry us forward and a tremendous team focused on building Mission Valley Bank into a premier business bank,” Gurney concluded. “We are well-positioned to maintain our course of steady and controlled growth throughout 2019 and beyond.”

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