Mission Valley Bancorp Announces Earnings For 2014
SUN VALLEY, Calif., March 18, 2015 /PRNewswire/ -- President & CEO Tamara Gurney of Mission Valley Bancorp – (parent company of Mission Valley Bank) announced un-audited financial results for the year ended December 31, 2014, reporting net income of $1,733,000.
"As 2014 progressed, Mission Valley Bank experienced a continual pickup in quality loan demand, resulting in an increase of $20.6 million in net loans by December 31, 2014, which represents a 12.35% growth in net loans. This suggests that business owners have a growing confidence in the economy and are beginning to make capital investments and expand their businesses. There was a slight drop in total deposits at year end 2014 resulting in cash on hand (in the form of Fed Funds Sold) to be redeployed to fund this increased loan demand. As a result, we did experience a slight drop in total assets of 2% to $265 million at year end 2014 from the $270 million reported at December 31, 2013."
Gurney continued, "Also notable, other income grew more than 18%, reaching $3.2 million as of December 31, 2014 as compared to the $2.7 million reported at year end 2013. This improvement is a direct result of the emphasis placed on our less traditional revenue streams including Accounts Receivable Financing, Merchant Bankcard Processing and the sale of SBA Loans in the secondary market."
The net decrease in total deposits of 2.0% to $224 million at year-end 2014 resulted primarily from interest bearing deposits decreasing to $125 million or 7% at December 31, 2014 while non-interest bearing deposits increased by almost 6% to $99.1 million for the year. This resulted in a 36.9% improvement in interest expense – down $376,000 to $644,000 at December 31, 2014 from $1,020,000 at December 31, 2013. Net Interest income also decreased slightly by 3.35% as maturing and renewing loans re-priced to lower rate notes. Mission Valley continues to maintain a Well Capitalized position with a Total Risk-Based Asset ratio of 18.5% – far exceeding the federal guideline of 10% to maintain Well Capitalized status.
Gurney continued, "Like most small businesses, continuous advances in technology coupled with the effects of the lingering recession have impacted the way we do business. With the lease on our Valencia branch office expiring in early 2015, the Bank has taken the opportunity to reduce operating expenses by closing the branch and consolidating it into the Centre Pointe location located less than 5 miles to the East. Leveraging technology, reallocating and balancing responsibilities, and even down-sizing when it makes sense has become commonplace across all industries. This move, coupled with the convenience of Remote Deposit and Online Banking, allows us time to thoughtfully consider a location that will best serve the needs of all of our Santa Clarita Valley area clients going forward."
About Mission Valley Bank
Mission Valley Bank is a full-service, independent, commercial bank specializing in the banking needs of small to medium businesses in the San Fernando & Santa Clarita Valleys. The Bank was chartered in July 2001, with a vision of local ownership and a commitment to providing financial solutions to meet the needs of its clients.
Forward-looking statements:
Certain matters discussed in this news release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based upon current management expectations and, therefore, are subject to certain risks and uncertainties that could cause actual results, performance, or achievements to differ materially from those expressed, suggested, or implied by the forward-looking statements. Forward-looking statements are effective only as of the date that they are made and Mission Valley Bank assumes no obligation to update this information.
SOURCE Mission Valley Bancorp
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