Mission Valley Bancorp Reports Solid Third Quarter 2024 Results, Core Earnings Remain Strong
Mission Valley Bancorp (MVLY), the parent company of Mission Valley Bank, announced its third-quarter 2024 financial results today, highlighting the strength of its core earnings amidst a challenging economic environment. The company reported a net income of $1.4 million, or $0.42 per diluted share, for the quarter, a decrease compared to the $4.6 million, or $1.40 per diluted share, earned in the same period last year.
While the net income declined, it’s important to note that the third quarter of 2023 benefited from a $3.5 million grant income, net of tax, from the U.S. Treasury under the Community Development Financial Institutions (CDFI) Equitable Recovery Program (ERP). Excluding this one-time grant, the company’s core earnings remained strong, demonstrating its continued financial stability and resilience.
Key Highlights of the Third Quarter 2024:
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Net Interest Income:
Mission Valley Bancorp reported $6.9 million in net interest income for the third quarter, representing a 9.89% increase compared to the same period in 2023. This growth indicates the company’s success in managing its interest-earning assets and liabilities effectively.*
Net Interest Margin:
The bank’s net interest margin was 4.49% for the third quarter, slightly lower than the 4.54% reported in the third quarter of 2023. This minor decrease reflects the current interest rate environment.*
Non-Interest Income:
Non-interest income for the quarter came in at $2.1 million, a significant decrease of 69.83% compared to the third quarter of 2023. This decline was primarily attributed to the absence of the CDFI ERP grant income received in the prior year.*
Loan Growth:
Mission Valley Bancorp continued to demonstrate strong loan growth, with gross loans reaching $536.1 million as of September 30, 2024, an increase of 3.30% compared to December 31, 2023. This growth reflects the bank’s commitment to supporting small and medium businesses in its local markets.*
Deposit Growth:
Total deposits also saw positive growth, reaching $547.6 million as of September 30, 2024, an increase of 4.44% compared to December 31, 2023. This growth signifies the bank’s ability to attract and retain customer deposits.Focus on Core Business and Continued Growth:
Mission Valley Bancorp remains focused on its core business strategy of serving the banking needs of small to medium businesses. The company’s recent expansion into the city of Burbank with a new full-service branch demonstrates its commitment to growing its presence in the San Fernando and Santa Clarita Valleys.
Strong Capital Position:
The bank continues to maintain a strong capital position, with a Leverage Ratio of 10.35%, Common Equity Tier 1 Capital Ratio of 10.26%, Tier 1 Capital ratio of 11.25%, and Total Risk Based Capital Ratio of 12.47%. This robust capital base positions the bank for continued growth and stability.
Outlook for the Future:
Tamara Gurney, President and Chief Executive Officer of Mission Valley Bancorp, expressed confidence in the bank’s future prospects. She highlighted the company’s strong core earnings, continued growth in loans and deposits, and commitment to expanding its geographic reach. The company’s focus on serving the banking needs of small and medium businesses in its local markets positions it for continued success in the years to come.
