In the second quarter of 2021, Mission Valley Bank, which has a location in Santa Clarita, had an income of $1.6 million, an increase of $1.2 million compared to the same time frame last year.

The bank, which has a branch in Santa Clarita, announced its increase in earnings Monday, crediting a growth in loans and the sale of Paycheck Protection Program (PPP) loans as reasons for the rise in income.

“We are very pleased to report strong second quarter results highlighted by the significant non-PPP loan growth and the execution of the sale of round two PPP loans, which frees up resources to support our continued loan growth,” said Tamara Gurney, president and CEO of Mission Valley Bank.

In June 2021, $38.9 million worth of PPP loans were sold, providing Mission Valley Bank with a gain of $747 thousand, according to Mission Valley Bank representatives.

$7 million worth in Small Business Administration loans were sold in the second quarter of 2020, providing the bank with $662 thousand, representatives said.

Gross loans, excluding PPP loans, were $286.3 million as of June 30, 2021, an increase of 6 percent or 4 percent compared to March 31, 2021 and Dec. 31, 2020, respectively, according to Mission Valley Bank.

Net interest income increased nearly 11 percent compared to the second quarter of 2020, representatives said.

PPP loan principal forgiveness totaled $23.3 million in the second quarter of 2021 resulting in $273 thousand in additional net deferred fees recognized into interest income during the quarter. $18.6 million in PPP loans remain outstanding, according to representatives.

There was no provision for loan losses in the second quarter of 2021 compared to $800 thousand in the second quarter of 2020, according to Mission Valley Bank

$138 thousand were recovered from charged-off loans during the second quarter of 2021, compared to $351 thousand in charge-offs in the second quarter of 2020, Mission Valley Bank representatives said.

Capital ratios are still strong as of June 30, 2021 as reflected by Total Leverage Ratio of 11 percent, Common Equity Tier 1 Capital Ratio of 14 percent, Tier 1 Capital Ratio of 16 percent, and Total Risk Based Capital of 17 percent, according to officials.

A $1.8 million dollar grant is set to be given to the bank under the United States Department of Treasury’s Community Development Financial Institution (CDFI) Rapid Response Program, according to Mission Valley Bank.

The program is meant to help CDFIs like Mission Valley Bank respond to pandemic challenges in distressed and underserved communities.

“2021 continues to be a very positive year for the Company,” Gurney said. “Mission Valley’s primary focus continues to be leveraging our strong capital base and solid platform, while continuing to invest in the resources necessary to create long term franchise value for our shareholders, team members, clients and community.”

For more information on Mission Valley Bank, click here.

KHTS FM 98.1 and AM 1220 is Santa Clarita’s only local radio station. KHTS mixes in a combination of news, traffic, sports, and features along with your favorite adult contemporary hits. Santa Clarita news and features are delivered throughout the day over our airwaves, on our website and through a variety of social media platforms. Our KHTS national award-winning daily news briefs are now read daily by 34,000+ residents. A vibrant member of the Santa Clarita community, the KHTS broadcast signal reaches all of the Santa Clarita Valley and parts of the high desert communities located in the Antelope Valley. The station streams its talk shows over the web, reaching a potentially worldwide audience. Follow @KHTSRadio on Facebook, Twitter, and Instagram.