#United States #Business Growth #Mission Valley Bancorp #Sun Valley #2025 Earnings

Mission Valley Bancorp Reports First Quarter Results

In a recent announcement, Mission Valley Bancorp (OTCQX: MVLY) revealed its impressive first quarter results for 2025. The bank reported a net income of $1.6 million, equating to $0.47 per diluted share. While this marks a slight decrease from the $1.7 million net income in the same quarter last year, the findings reflect the company's resilient performance amid a competitive market.

Financial Overview

Tamara Gurney, President and CEO, expressed pride in the institution’s steady growth, particularly highlighting a $40.7 million increase in deposits attributed to successful core deposit initiatives. Furthermore, the bank continues to maintain robust credit quality, carefully monitoring its loan portfolio against potential external risks, including tariff impacts.

In terms of operating revenue, Mission Valley reported a net interest income of $7.8 million, which reflects a 15.89% increase compared to the first quarter of 2024. The net interest margin also improved, reaching 4.87%, a jump from 4.34% during the same time last year.

Dividend Announcement

Adding to the positive news, the board announced a cash dividend of $0.15 per share, set to be paid on or about June 2, 2025. This marks the fourth consecutive year of dividend payments, demonstrating the company's commitment to rewarding its shareholders.

Balance Sheet Highlights

As of March 31, 2025, Mission Valley Bancorp reported total assets of $706.3 million, an increase of $29.0 million or 4.28% since the end of 2024. The loan portfolio also witnessed growth, with gross loans rising to $561.3 million, up by $14.3 million or 2.61% compared to previous quarters.

Total deposits reached $592.0 million, a significant rise of $40.7 million or 7.38% over the previous quarter. This uptick underscores the growing trust clients place in Mission Valley's banking capabilities. However, it’s important to note the drop in brokered deposits, which decreased by 27.05% and now stands at $43.7 million.

Asset Quality and Credit

Maintaining asset quality remains a priority for Mission Valley. The bank reported $24,000 in net recoveries from previously charged-off loans in Q1 2025, a slight increase from $20,000 during the same quarter last year. Additionally, past due loans decreased to $4.7 million, down from $5.3 million at year-end 2024, while classified loans improved significantly.

Consequently, the allowance for credit losses stood at $8.3 million, reflecting 1.48% of gross loans, consistent with the previous period. The bank also recognized a provision for credit losses of $0.2 million this quarter.

Capital and Liquidity Position

Mission Valley’s capital position remains robust, evident from its leverage ratio of 10.11% and total risk-based capital ratio of 12.35%. Furthermore, as of March 31, 2025, the available borrowing capacity reached $211.5 million, indicating a healthy liquidity position for future endeavors.

Company Background

Established in 2001, Mission Valley Bancorp is headquartered in Sun Valley, California, and operates two wholly-owned subsidiaries, Mission Valley Bank and Mission SBA Loan Servicing LLC. The bank is dedicated to serving small to medium-sized businesses and has been a key player in facilitating SBA lending services since the inception of its LSP in March 2021.

Looking Ahead

With a positive outlook highlighted by strong results in the first quarter, Mission Valley Bancorp is poised for continued growth in 2025. The company’s proactive approach to managing risks while fostering deposit growth is a testament to its commitment to the local economies it serves. Stakeholders can anticipate further announcements as the bank navigates through the year, aiming to build on its solid foundation.