Mission Valley Bancorp Reports Strong Net Income Growth in Q3 2025
On October 30, 2025, Mission Valley Bancorp, trading as OTCQX: MVLY, shared impressive financial results for the third quarter, marking a significant improvement from the previous year. The company recorded a net income of $2.1 million, translating to $0.62 per diluted share, compared to $1.4 million or $0.42 per diluted share in Q3 of 2024.
The growth can be attributed to strong core earnings and the recent opening of Mission Valley Bank's newest branch in Arcadia on September 8, 2025. Tamara Gurney, the President and CEO, underscored the strategic importance of this branch, highlighting Arcadia's strong deposit growth potential. This expansion aligns with Mission Valley's geographic growth strategy, serving existing customers and capitalizing on local market opportunities in the San Gabriel Valley.
As of September 30, 2025, Mission Valley Bancorp's total assets stood at $715 million, reflecting a 5.57% increase since December 31, 2024. Gross loans increased by 5.63%, resulting in $577.8 million. Total deposits also rose, amounting to $564.3 million, indicating a healthy growth trend in customer savings and business deposits.
In terms of asset quality, the bank managed to achieve $60,000 in net recoveries from previously charged-off loans, which is favorable compared to $100,000 in net charge-offs during the same period in 2024. However, loans past due increased to $8.6 million and classified loans stood at $25.4 million as of September 30, showing some areas of concern, yet a decrease in non-accrual loans was observed compared to the prior period.
Mission Valley Bancorp's capital ratios remain robust, with a Common Equity Tier 1 Capital Ratio of 10.47% and a Tier 1 Capital Ratio of 11.41%, indicating strong capital management and regulatory compliance. The company's available borrowing capacity was listed at $194.9 million, slightly decreased from past levels, while the unpledged investment securities recorded a total of $45.6 million.
Overall, Mission Valley Bancorp's third quarter reflects a strong operational performance along with a strategic focus on growth, particularly in expanding its SBA lending programs and continuing to strengthen its market position in California. Investors and stakeholders can look forward to further developments, as the bank is poised to leverage its growth momentum in the upcoming periods. Mission Valley Bancorp has established itself as a solid player in the banking landscape, particularly for small to medium-sized enterprises, as it continues to cater to the evolving needs of its clientele.
The growth can be attributed to strong core earnings and the recent opening of Mission Valley Bank's newest branch in Arcadia on September 8, 2025. Tamara Gurney, the President and CEO, underscored the strategic importance of this branch, highlighting Arcadia's strong deposit growth potential. This expansion aligns with Mission Valley's geographic growth strategy, serving existing customers and capitalizing on local market opportunities in the San Gabriel Valley.
Financial Highlights
- - Net Interest Income for Q3 reached $7.8 million, an increase of 13.04% from the previous year, showcasing robust loan demand.
- - The Net Interest Margin rose slightly to 4.54%, up from 4.49% the year prior, reflecting effective interest rate management.
- - Non-Interest Income was reported at $2.8 million, a 33.33% increase, further illustrating strong operational performance.
- - Notably, the bank successfully sold $17.9 million in SBA loans, resulting in a gain on sale of $0.9 million compared to the previous year’s sales of $9 million and $0.5 million gain.
Balance Sheet Overview
As of September 30, 2025, Mission Valley Bancorp's total assets stood at $715 million, reflecting a 5.57% increase since December 31, 2024. Gross loans increased by 5.63%, resulting in $577.8 million. Total deposits also rose, amounting to $564.3 million, indicating a healthy growth trend in customer savings and business deposits.
Asset Quality Assessment
In terms of asset quality, the bank managed to achieve $60,000 in net recoveries from previously charged-off loans, which is favorable compared to $100,000 in net charge-offs during the same period in 2024. However, loans past due increased to $8.6 million and classified loans stood at $25.4 million as of September 30, showing some areas of concern, yet a decrease in non-accrual loans was observed compared to the prior period.
Capital Position
Mission Valley Bancorp's capital ratios remain robust, with a Common Equity Tier 1 Capital Ratio of 10.47% and a Tier 1 Capital Ratio of 11.41%, indicating strong capital management and regulatory compliance. The company's available borrowing capacity was listed at $194.9 million, slightly decreased from past levels, while the unpledged investment securities recorded a total of $45.6 million.
Overall, Mission Valley Bancorp's third quarter reflects a strong operational performance along with a strategic focus on growth, particularly in expanding its SBA lending programs and continuing to strengthen its market position in California. Investors and stakeholders can look forward to further developments, as the bank is poised to leverage its growth momentum in the upcoming periods. Mission Valley Bancorp has established itself as a solid player in the banking landscape, particularly for small to medium-sized enterprises, as it continues to cater to the evolving needs of its clientele.
Topics Financial Services & Investing）
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