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Mountain Pacific Bancorp Reports Financial Results for the Six Months Ended June 30, 2020

August 20, 2020
EVERETT, WA – Mountain Pacific Bancorp (OTC Pink: MPCB) announced today its financial results for the second quarter ended June 30, 2020.

The Company reported net income of $2,050,000 for the six months ended June 30, 2020 compared to net income of $1,760,000 for the same period last year. Earnings per share were $0.31 for the three months ended June 30, 2020 compared to $0.28 for the same period last year.

The return on average assets for the six months ended June 30, 2020 and 2019 were .97% and 1.08%, respectively. The net interest margin was 3.60% for the six months ended June 30, 2020 compared to 4.15% for the same period last year and the efficiency ratio improved to 57.98% for the six months ended June 30, 2020 compared to 67.82% for the same period last year.

President, Mark Duffy, stated, “Processing over 480 PPP loans totaling over $75.7 million resulted in tremendous growth in loans and deposits year to date. This translated into solid earnings year to date.”

Net Interest Income

Net interest income increased to $7,012,295 for the six months ended June 30, 2020 compared to $6,078,983 for the same period last year.

Provision for credit losses

The Company recorded a $975,000 provision for credit losses for the six months ended June 30, 2020 compared to $200,000 for the same quarter last year. The increase year over year is due to COVID19’s impact on the economy and the long term influence it may have on our loan portfolio.

Non-Interest Income

Non-interest income for the six months ended June 30, 2020 was $1,484,187 compared to $1,300,747 for the six months ended June 30, 2019.

Non-Interest Expense

Non-interest expense was $4,926,482 for the six months ended June 30, 2020 compared to $5,004,730 for the same period last year.

Balance Sheet

The Company had total assets at June 30, 2020 of $505.0 million compared to $331.2 million at June 30, 2019.

Total loans on June 30, 2020 were $411.2 million compared to $269.7 million at June 30, 2019.

Total deposits were $373.8 million at June 30, 2020 compared to total deposits of $278.2 million at June 30, 2019.

Credit Quality

The allowance for loan losses was $5,344,079, or 1.30% of loans at June 30, 2020, compared to $4,064,683 or 1.51% of loans at June 30, 2019. Excluding SBA PPP loans of $75.8 million, reserves are 1.59% as of June 30, 2020. There were $3,098,302 in nonperforming assets at June 30, 2020 and $9,140,616 in nonperforming assets at June 30, 2019.

Capital

At June 30, 2020, shareholders’ equity totaled $39.4 million compared to $34.1 million at June 30, 2019. Book value per share was $6.04 per share at June 30, 2020 compared to $5.37 per share at June 30, 2019.

About Mountain Pacific Bancorp

Mountain Pacific Bancorp, a bank holding company headquartered in Everett, Washington, serves Snohomish, King and Skagit counties communities through its wholly-owned subsidiary, Mountain Pacific Bank with a headquarters office in Everett and three banking offices in Lynnwood, Ballard and Burlington. The Bank provides commercial banking services to small and mid-size businesses, including professional service firms, real estate developers and investors and not-for-profit organizations and to their owners and other individuals. Additional information about the Bank is available on its website at www.mp.bank

Forward-Looking Statements

This press release contains forward-looking statements. These forward-looking statements involve risks and uncertainties and are based on the beliefs and assumptions of the management of Mountain Pacific Bancorp and on information available to management at the time these statements were made. There are a number of factors, many of which are beyond Mountain Pacific Bancorp’s control, which could cause actual conditions, events or results to differ significantly from those described in the forward-looking statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among others, the following possibilities: (1) competitive pressures among depository and other financial institutions may increase significantly; (2) revenues may be lower than expected; (3) changes in the interest rate environment may reduce interest margins; (4) general economic conditions, either nationally or regionally, may be less favorable than expected, resulting in, among other things, a deterioration in credit quality and/or a reduced demand for credit; (5) legislative or regulatory changes, including changes in accounting standards and tax laws, may adversely affect the businesses in which Mountain Pacific Bancorp is engaged; (6) competitors may have greater financial resources and develop products that enable such competitors to compete more successfully than Mountain Pacific Bancorp; and (7) adverse changes may occur in the securities markets or with respect to inflation. Forward-looking statements speak only as of the date they are made. Except as required by law, Mountain Pacific Bancorp does not undertake to update forward-looking statements to reflect subsequent circumstances or events.

CARES Act SBA Programs

Paycheck Protection Program: This loan program provides loan forgiveness for retaining employees by temporarily expanding the traditional SBA 7(a) loan program. We are working on a checklist (for required documentation) and an application packet. We will post that information here.

EIDL Loan Advance: This loan advance will provide up to $10,000 of economic relief to businesses that are currently experiencing temporary difficulties. (links to https://mp.bank/sba-disaster-loans-for-covid-19/)

SBA Express Bridge Loans: Enables small businesses who currently have a business relationship with an SBA Express Lender to access up to $25,000 quickly.

SBA Debt Relief: The SBA is providing a financial reprieve to small businesses during the COVID-19 pandemic.

Mountain Pacific Bank will be helping small businesses in our local communities with these loan programs. If you are out of our geographical footprint you will need to go to your local bank. Details of eligibility and administration of this assistance from SBA are still being addressed by the SBA. We will update this information as we get new information.

Covid-19: A Message from Mark Duffy, CEO

Throughout our history, the communities Mountain Pacific Bank serves have seen lots of ups and downs. Through it all, we have always stood ready to assist our customers and communities in which we serve. Building relationships with customers since 2006 has taught us that people need us the most when times are most challenging, and our customers know that Mountain Pacific Bank will do what is right.

At Mountain Pacific Bank, the well-being of our customers, employees, and community is very important to us and we are here to support you and your business. We intend to keep our branches open, if feasibly possible, using the drive-up only to protect both staff and customers.

To protect you and our employees, we are limiting our branch lobbies to appointments only. Those customers wanting to open an account, access safe deposit box, or meet with a banker in person are asked to call 425.263.3500 or your local branch to setup an appointment.

Of course, meeting your needs is always important to us. We are well staffed and banking business is taking place as usual. We hope you will continue to contact your Relationship Manager by phone or email as you do regularly. We also encourage you to leverage our digital options that allow you to access your accounts to view balances, make transfers, make mobile deposits, or send payments via our P2P feature. All these great features and more are available via our mobile app or online at https://mp.bank/

As our communities continue to be impacted, we will assess the capacity and abilities of our branches to serve the needs of our customers. We will be sure to post information and updates to our website and social media channels as decisions are made.

We apologize for any inconveniences and we appreciate your flexibility and understanding during this unusual time. It is our goal to continue to provide the highest quality customer service and support.

As always, thank you for the opportunity to serve you. For specific questions related to COVID-19, please see Our FAQs.

Wishing you and your family health and safety,
Mark Duffy

COVID-19

We are monitoring the latest news about COVID-19 and taking all necessary precautions. We are following Center for Disease Control (CDC) guidelines to appropriately respond to this potential public health threat.

All of our branch drive-ups are open during regular business hours. Our lobbies are currently closed.

COVID-19 FAQ’s

Is the bank open for business?
YES! We are here and ready to assist you. We intend to keep our branches open if feasibly possible, using the drive-up to protect both staff and customers. To protect you and our employees, we are limiting our branch lobbies to appointments only. Customers wanting to open an account, access safe deposit box, or meet with a banker in person are asked to please call 425.263.3500 or their local branch to schedule an appointment.

As our communities continue to be impacted, we will continually assess the capacity and abilities of our branches to serve the needs of our customers. We will be sure to post information and updates to our website and social media channels as decisions are made. We apologize for any inconveniences and we appreciate your flexibility and understanding during this unusual time. It is our goal to continue to provide the highest quality customer service and support.

Are we going to be adjusting our branch hours or reducing staff?
No. At the present time we have no plan or intention of doing either.

If at any point, we deem the risk outweighs the need to keep branches or departments open we will take appropriate action which could include limiting staffing and/or reducing hours. Our branch locations and departments have taken the recommended precaution very seriously and have adopted rigorous cleaning and social distancing standards to ensure the safety and health of each other.

Keeping your money safe.
Despite the disruption that COVID-19 is causing to our economy, you can rest assured that your hard-earned money is safe and secure at Mountain Pacific Bank. There is no need to withdraw large amounts of cash or take other extreme financial measures. The best place for your money is in a safe and sound financial institution, where the FDIC insures it. The following is a recent quote from the Chairman of the FDIC, Jelena McWilliams.

“I want to underscore that our banks are safe,” said Chairman McWilliams. “Your FDIC-insured deposits are safe. […] The FDIC was borne out of a crisis, and it has witnessed many crises. We will get through this one together. Since 1933, no depositor has ever lost a penny in an FDIC-insured institution, and that will not change.”

If you have questions about FDIC insurance or would like to discuss in more detail, please reach out to one of our branch representatives who can estimate your insurance needs and help restructure your accounts to ensure maximum insurance coverage. Many of your questions can be answered by visiting FDIC FAQ’s for Bank Customers.

Mountain Pacific Bank continues to be in strong financial position and remains well capitalized. The Bank’s financial statements are posted at https://mp.bank/investor-relations/.

As always, our CEO, Mark Duffy is available to contact at 425.263.3524, and is more than happy to take any phone call from customer’s concerned about the financial condition of the bank.

How can I access my funds?
The branch drive-ups remain open during normal business hours. Mountain Pacific Bank customers also have access to free ATM withdrawals at any ATM, anywhere you are.

We would like to encourage customers to leverage the digital services Mountain Pacific Bank has to offer clients. These services allow for 24/7 secure access to your accounts without requiring an in-person visit to the branch. Our mobile app and free online banking services at https://mp.bank/ offer you the opportunity to check balances, transfer funds, deposit checks, pay bills or locate the nearest ATM.

Business clients are offered the same mobile and online banking services plus the use of wire and ACH features.

Bank anytime, anywhere, including the comfort of your home, with the convenient online and mobile banking services, visit Enroll Now or download the MPB Mobile app today.

Who should I contact if I have questions about my loan?
Please contact your Loan Officer. You can locate their contact information for your Loan Officer at Mountain Pacific Bank Lenders

Concerns about the ability to make your loan payment.
To alleviate the financial burden facing our consumer customers and commercial customers, Mountain Pacific Bank is offering 90-day interest only and deferral payments for those impacted. Please contact your loan officer. You can locate their contact information for your Loan Officer at Mountain Pacific Bank Lenders.

Do I qualify for one of the SBA Loans approved in the Stimulus Package?

Congress just passed the CARES Act which includes some SBA Loan Programs. One of the these is called the “Paycheck Protection Program”. As a Preferred SBA Lender Mountain Pacific Bank will be able to provide this loan to our customers. We will provide information regarding eligibility, how to apply and any documentation requirements as soon as it becomes available from the SBA. Please contact your Loan Officer or call 425.263.3500 to discuss.

Information on other SBA Loan Programs and Disaster Assistance in Response to the Coronavirus can be found at Small Business Association (SBA) Disaster Loan Assistance.

Mortgage and Home Equity needs.
Please contact our Mortgage Loan Officer, Tony Devery at tdevery@mp.bank or 425.214.4815.

Keeping your information safe.
Unfortunately, fraudsters may use the high stress of the COVID-19 outbreak as an opportunity to try to gain access to your personal information. Protect yourself from scams with the Link to Centers for Disease Control informational blog the Federal Trade Commission’s advice for consumers.

For your security, remember a Mountain Pacific Bank representative.
We will never reach out to you and ask for confidential information like your full Social Security number, login, password, identification number (PIN) or other confidential information.

Additional Resources:
Snohomish Health District
Washington State Department of Health
Centers for Disease Control and Prevention
World Health Organization SBA Disaster Loan Assistance
SBA Disaster Assistance in Response to the Coronavirus

SBA Disaster Loans for COVID-19

These are initial details from our Emergency Management Division (EMD) on the process for unlocking SBA Disaster Loans recently approved by Congress.

What does the new SBA disaster assistance mean for businesses in Washington?
New federal legislation and appropriations has opened up the possibility for small businesses to receive assistance for economic loss due to COVID-19. Details of eligibility and administration of this assistance from SBA are still being addressed by the SBA. However, some information from the traditional SBA Economic Injury Disaster Loan (EIDL) program will still apply for COVID-19.

  • If a small business has suffered substantial economic injury as a result of COVID-19, it may be eligible for financial assistance from the U.S. Small Business Administration.
  • Small businesses and small agricultural cooperatives that have suffered substantial economic injury may be eligible for the SBA’s Economic Injury Disaster Loan (EIDL) Program.
  • Substantial economic injury is the inability of a business to meet its obligations as they mature and to pay its ordinary and necessary operating expenses.
  • An EIDL can help meet necessary financial obligations that a business could have met had the disaster not occurred.
  • It provides relief from economic injury caused directly by the disaster and permits the business to maintain a reasonable working capital position during the period affected by the disaster.
  • The SBA provides EIDL assistance only to those businesses that SBA determines are unable to obtain credit elsewhere.
  • The loan amount will be based on the business’ actual economic injury and financial needs.
  • The interest rate on EIDLs cannot exceed 4 percent per year.
  • The term of the loans cannot exceed 30 years.
  • Terms and conditions will be determined by the business’ ability to repay the loan

How do counties apply for assistance?
To apply for this assistance, a county must provide one Economic Injury Worksheet for at least one business demonstrating economic loss due to COVID-19. There must be a minimum of five Economic Injury Worksheets submitted statewide for Washington to be eligible. If a county were to be approved for the SBA Economic Loss Declaration, then each contiguous county around the declared county would be eligible for SBA economic injury assistance.
We recommend counties begin collecting Economic Injury Worksheets as soon as possible. We ask counties to work with their cities and towns to collect the forms and submit them through the county to EMD. Counties please submit completed EIDL forms to HSDamage@mil.wa.gov and state your county name and EIDL in the subject line, e.g. “Snohomish County EIDL”.
Businesses can fill out the Estimated Disaster Economic Injury Worksheet for Business to use when applying for assistance through the SBA, which you can submit here:

ECC, Joint Information Center eccjic.activation@snoco.org and the ECC, Manager eccmanager.activation@snoco.org

When will more information be available?
Detailed SBA guidance for COVID-19 is still being developed by SBA and should be available in the next several days. As soon as further information is available, we’ll provide it to you. We ask that you work directly with Washington Emergency Management and not directly with SBA during this process.

Who is the best contact if counties have questions?
The contact for SBA at Washington Emergency Management Division is Travis Linares-Hengen: travis.linares-hengen@mil.wa.gov, (253) 512-7028.

Yazmin Mehdi (she/her)
Deputy District Director

MOUNTAIN PACIFIC BANK ANNOUNCES NEW BOARD MEMBER

– FOR IMMEDIATE RELEASE –

MOUNTAIN PACIFIC BANK ANNOUNCES NEW BOARD MEMBER
Joe Gaffney, Joins Board

EVERETT, WA – September 2019 – Mountain Pacific Bank is pleased to announce the addition of Joe Gaffney to its Board of Directors.

Mountain Pacific Bank President and CEO Mark Duffy commented, “I am really excited to have Joe Gaffney join our Board of Directors. His addition complements and strengthens the Board’s overall depth, knowledge, and oversight as Mountain Pacific continues to grow and increase its presence in the community.”

Mr. Gaffney is President of Gaffney Construction Inc; a local commercial construction company with deep roots in the Everett and Snohomish County community. His involvement in the community has included serving on the Boys and Girls Clubs of Snohomish County’s board of directors and serving a term as President. He is also an active member of the Rotary Club of Everett.

Raised in Everett, Mr. Gaffney graduated with from the Central Washington University with a degree in Construction Management.

ABOUT MOUNTAIN PACIFIC BANK
Mountain Pacific Bank is a full-service community bank, serving the financial needs of local businesses, professionals and individuals in Snohomish County. The bank is headquartered in Everett, Washington and operates branch offices in Everett, Lynnwood, Ballard, and Burlington coupled with a Mobile Branch for the convenience of its customers. More information about Mountain Pacific can be found at mp.bank.

Contact:

Mark Duffy, President/CEO

(425) 263-3524

 

Mountain Pacific Bank Opens Burlington Branch in Skagit County | 4/1/19

Mountain Pacific Bank opens its newest location in Burlington, WA at 110 Cascade Mall Drive. While this is Mountain Pacific’s first foray into Skagit County the bank continues its strong focus on the local community by bringing together an amazing group of talented bankers—all who have been an integral part of the Skagit community for years. It is their level of commitment to local business and the community that makes them a perfect fit.

The new branch services also includes our Mobile Branch—picking up your business deposits and saving you a trip to the bank.

You can reach the new branch by calling 360-953-5100 or reach out to any of the local bankers that make up the Burlington team:

John Howe
VP Branch Manager
360.953.5102
jhowe@mp.bank

Candice Hamilton
New Account Representative
360.953.5103
chamilton@mp.bank

Melissa Ferguson
Customer Service Manager
360.953.5104
mferguson@mp.bank

April Moore
Business Development\Mobile Driver
360.953.5105
amoore@mp.bank

Aracely Mentado
Customer Service Representative
360.953.5106
amentado@mp.bank

Tim Rawlins
SVP Market Manager
360.953.5107
trawlins@mp.bank

A Message from our President – 3/8/19

Dear Mountain Pacific Bank valued customers,

We are proud to announce that this past week we launched an entirely new website site and design to improve your overall online experience.

For your peace of mind and security, we have incorporated state of the art security technologies to our website.

Of note, our prior web address of “mountainpacificbank.com” will automatically redirect you to “mp.bank” – which is our new website landing page. The .bank domains are eligible only to qualified financial institutions.

We encourage each of you to simply access the Mountain Pacific Bank website through the new “mp.bank” site.  In addition, if you have us saved in your “Favorites” please update to reflect our new “mp.bank” site.

Our website is full of feature rich enhancements that we incorporated with you, the end user in mind.

With a quick and easy ADA (Americans with Disabilities Act) icon where you can now access, control and view content the way that you want it delivered. 

The website also provides a unified experience on all screens, utilizing responsive design knowhow – so whether you are on a pc, smart phone or tablet the Mountain Pacific Bank website will always present you with the same look, feel and familiarity.

Finally, we have built in navigational optimization that allows you to simply search and scroll through and to relevant topics delivered right at your fingertips – or at the very least a simple swipe of a fingertip.

Mountain Pacific Bank continues to challenge ourselves in delivering quality products and utmost customer service!

We would love to hear from you in how we may improve, so reach out to us directly at mail at info@mp.bank.

Regards,

Mark Duffy
President & CEO

Mountain Pacific Bank Announces New Board Member Kristi Henderson | 12/4/2018

Everett, Washington, December 2018  – Mountain Pacific Bank is pleased to announce the addition of Ms. Kristi Henderson to its Board of Directors.  Mountain Pacific Bank President and CEO Mark Duffy commented, “I am really excited to have someone with Ms. Henderson’s financial experience join our Board of Directors.  Her addition compliments and strengthens the Board’s overall depth, knowledge, and oversight as Mountain Pacific continues to grow and increase its presence in the community.”

Ms. Henderson has spent over ten years at Bauer Evans and Madrona Financial Services where she has been involved in tax planning, business accounting and financial advisory services. During her time at Bauer Evans, she has had experience performing audits and has helped clients through audits by various regulatory entities. Her involvement in the community has included coaching youth female athletes and serving on the board of directors for the Community Foundation of Snohomish County. 

Raised in Lake Stevens, Ms. Henderson graduated with honors from the University of Oregon, Lundquist College of Business. She holds positions as Chief Compliance Officer and Fund Manager and is a licensed Certified Public Accountant, Personal Financial Specialist and Certified Financial Planner and is a member of the American Institute of CPAs. 

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About Mountain Pacific Bank:

Mountain Pacific Bank is a full-service community bank, serving the financial needs of local businesses, professionals and individuals in Snohomish and King Counties. The bank is headquartered in Everett, Washington and operates branch offices in Everett, Lynnwood and the Ballard neighborhood of Seattle. The bank also provides Mobile Branch service throughout Snohomish County for the convenience of its customers. More information about Mountain Pacific can be found at www.mountainpacificbank.com.

Contact:

Mark Duffy, President
(425) 263-3524