Mission Valley Bancorp on Friday announced a profitable quarter based on a grant from the Treasury Department.
The Sun Valley bank reported net income of $1.7 million (52 cents a share) for the third quarter, compared to net income of $2,000 (0 cents) for the same quarter a year ago.
The bank received a $1.8 million grant from the Department of Treasury’s CDFI Rapid Response Program “after meeting the performance goals and measures of the grant award agreement,” according to the company. The grant is part of a federal program to support community development financial institutions during the pandemic.
During the quarter, the bank processed $18.3 million in Payroll Protection Program loan principal forgiveness, which resulted in $134,000 in fees for the bank.
“Our strong third quarter results were highlighted by core loan growth, excluding PPP loan activity, of $17.7 million, or 26.42 percent annualized, and continued improvement in credit quality,” said Chief Executive Tamara Gurney in a statement. “Additionally, the third quarter results were bolstered by the impact of the $1.8 million CDFI RRP grant.”
Shares of Mission Valley (MVLY) closed Friday up 30 cents, or 2 percent, to $14.80 on the over-the-counter market.