Mission Valley Bank reported a $1.2 million net income in their second quarter of 2020 amid the COVID-19 pandemic, officials said.
Mission Valley Bancorp announced Thursday net income of $1.2 million, or $0.38 per diluted share, through the second quarter of 2020. This is compared to net income of $1.5 million, or $0.47 per diluted share, through the second quarter of 2019.
“In an extremely challenging period, Mission Valley delivered for our clients, our employees, our shareholders and our communities,” said Tamara Gurney, resident and CEO. “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.”
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, according to a statement from the bank.
Gross loans outstanding totaled $334.3 million, an increase of $90.8 million, or 37.30 percent, over June 30, 2019 and $68.0 million, or 25.52 percent from December 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 percent over June 30, 2019 and $91.7 million, or 30.46 percent from December 31, 2019. Assets totaled $510.1 million at June 30, 2020, an increase of $172.5 million, or 51.09 percent, over June 30, 2019, and $152.2 million, or 42.54 percent from December 31, 2019.
Capital ratios remain strong at June 30, 2020 as reflected by Total Leverage Ratio of 9.3 percent, Common Equity Tier 1 Capital Ratio of 13.2 percent, Tier 1 Capital ratio of 13.2 percent, and Total Risk Based Capital of 16.4 percent, which continue to place the company in the “Well Capitalized” category for regulatory purposes.
“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,” Gurney concluded.Do you have a news tip? Call us at (661) 298-1220, or send an email to firstname.lastname@example.org. Don’t miss a thing. Get breaking KHTS Santa Clarita News Alerts delivered right to your inbox. Report a typo or error, email Corrections@hometownstation.com
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