The parent of Mission Valley Bank on Thursday reported second quarter net income of $1.2 million, down from $1.5 million in the same quarter last year. The decrease was attributable to an $837,000 provision for possible loan losses because of the COVID-19 pandemic, although that was partly offset by a $262,000 increase in non-interest income and a $143,000 decrease in non-interest expense.
On a per-share basis, net income equaled 38 cents for the quarter that ended June 30, down from 47 cents in the same quarter last year.
Despite the decrease in net income, Mission Valley Bancorp reported much higher loan, deposit and asset growth. The federal Paycheck Protection Program was one big reason: PPP loans funded in the second quarter totaled $69.9 million with deferred loan origination fees (net of costs) of $2.1 million.
The bank company, based in Sun Valley, reported gross loans outstanding of $334 million on June 30, an increase of 37 percent from one year earlier. Total deposits were $393 million, an increase of 38 percent, and assets totaled $510 million, an increase of 51 percent.
Capital ratios remain high; the bank company is in the “well capitalized” category for regulatory purposes.
Tamara Gurney, the president and chief executive, said, “In an extremely challenging period, Mission Valley delivered for our clients, our employees, our shareholders and our communities. 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.”
Mission Valley’s stock closed at $9, up 25 cents or nearly 3 percent on Thursday, a day when the overall markets were mostly down.