Mission Valley Bancorp has announced net income for the first quarter of 2023 was $1.7 million, or $0.51 per diluted share, compared to net income of $1.3 million, or $0.39 per diluted share, for the first quarter of 2022.
The first-quarter net income was an increase of 33.10% compared to the first quarter of 2022. Net Interest Income was $5.9 million for the first quarter of 2023, an increase of $2 million, or 50.97%, compared to the first quarter of 2022.
The bank also reported $10.6 million in Small Business Administration loans were sold resulting in gain on sale of $0.7 million in the first quarter of 2023, compared to $23.9 million in SBA loans sold and gain on sale of $1.8 million in the first quarter of 2022.
On April 10, Mission Valley Bank, a wholly owned subsidiary of Mission Valley Bancorp, was awarded a $5 million grant from the U.S. Treasury as part of the Community Development Financial Institutions Equitable Recovery Program, which aims to help CDFI’s further their mission of helping low- and low-to-moderate income communities recover from the impact of COVID-19.
The ERP grant award proceeds are anticipated to be received in late second quarter to early third quarter of 2023 after execution of the grant agreement. The utilization of the grant proceeds and recognition into income would be subject to eligible activities, performance conditions and reporting in accordance with the ERP program.
“We are pleased to report strong operating results for the first quarter of 2023 despite the challenging headwinds faced by the banking industry from the recent bank failures,” President and CEO Tamara Gurney said in a prepared statement. “We were able to achieve these results due to the strong foundation established over the past years, and because our business model is primarily focused on serving small businesses in our local communities, fundamentally different than the banks that failed recently.”
Gurney added: “We continue to believe that we are well positioned to withstand the current and potential changes that the remainder of 2023 may bring based on our strong balance sheet, capital and liquidity positions, and the proactive measures that we have taken to bolster our liquidity and deposit funding sources.”
She continued, “We are proud and honored that our bank was awarded the CDFI ERP grant in the amount of $5 million, which was in the fourth highest award tier with awards ranging from $0.5 million to $6.2 million. We will be able to determine the performance conditions and accounting treatment for the grant once the grant agreement is made available in June 2023 with grant proceeds expected after the grant agreement is executed. These funds will further support the bank’s efforts to assist small businesses and our local communities.”