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