#USA #Q2 2025 #Sun Valley #Profit Report #Mission Valley

Mission Valley Bancorp Reports Strong Earnings for Second Quarter 2025

Sun Valley, California – July 31, 2025
Mission Valley Bancorp, traded on OTCQX under the ticker MVLY, has announced favorable financial results for the second quarter of 2025. The bank reported a net income of $1.2 million, which equates to $0.37 per diluted share. This reflects a decrease from the previous year's second quarter, when net income was $2.0 million or $0.60 per diluted share. Despite these challenges, the bank demonstrated resilience with a total net income of $2.8 million or $0.84 per diluted share for the first half of the year, compared to $3.7 million or $1.10 for the same period last year.

Highlights and Key Metrics

Tamara Gurney, President and CEO of Mission Valley Bancorp, shared insights on this quarter's performance. She emphasized that the growth in core deposits, which stemmed from initiatives launched last year, was a significant factor in their results. Furthermore, the company reported several key metrics for Q2 2025:

• - Net Interest Income: Increased by $0.8 million, reaching $7.5 million, representing a notable growth of 11.94% compared to Q2 2024.
• - Net Interest Margin: Rose to 4.38%, a slight improvement over the previous year's 4.32%.
• - Non-Interest Income: Fell by $0.7 million to $2.2 million, down 24.14% year over year.
• - SBA Loans Sold: The company completed $14.3 million in SBA loans this quarter with a gain on sale of $0.7 million, a decrease from the prior year’s $21.7 million sale, which yielded a $1.1 million gain.
• - Fair Value Adjustments: The bank experienced a $0.5 million loss in the fair value of its SBA servicing assets, compared to a $0.1 million loss last year.
• - Dividends: A cash dividend of $0.15 per share was distributed on June 2, totaling $0.5 million for shareholders.

Balance and Asset Quality

As of June 30, 2025, Mission Valley Bancorp reported total assets of $740.6 million, indicating a $63.3 million increase since the end of 2024. The gross loans also saw significant growth, reaching $594.9 million, up 8.76% from $547.0 million. Meanwhile, total deposits registered at $599.4 million, an 8.72% rise compared to the previous year.

Despite the positive growth, the bank did face some challenges with asset quality. The second quarter saw $35,000 in net charge-offs compared to a recovery of $12,000 in the previous year. Additionally, reports show a total of $4.9 million in past due loans, slightly down from $5.3 million at the previous year's close. The allowance for credit losses stood at $8.3 million, which is 1.39% of gross loans.

Future Outlook

Looking ahead, Mission Valley Bancorp is optimistic about its growth trajectory. Ms. Gurney announced the opening of a new full-service branch in Arcadia, California, anticipated to launch in late Q3 or early Q4 2025. This expansion is part of their broader strategy to enhance service delivery and capitalize on growth opportunities in the San Gabriel Valley.

With a strong capital position highlighted by a Common Equity Tier 1 Capital Ratio of 9.94%, Mission Valley Bancorp is well-positioned to navigate the uncertain economic landscape and to continue serving its customers effectively.

In summary, while the bank faced some headwinds in terms of non-interest income and servicing asset value, the overall financial health remains strong, supported by strategic initiatives aimed at growth. Stakeholders are hopeful for the upcoming opportunities that lie ahead in the second half of 2025.

For more information, visit www.MissionValleyBank.com.