Mountain Pacific Bancorp, Inc. Announces 4th Quarter 2022 Results
Everett, WA, February 07, 2023 --(PR.com)-- Mountain Pacific Bancorp, Inc. (OTC Pink: MPCB) the holding company for Mountain Pacific Bank (the Bank), today announced unaudited financial results for the fourth quarter ended December 31, 2022.
Mountain Pacific Bancorp, Inc. consolidated net income before tax of $3.9 million in the fourth quarter of 2022, bringing consolidated net income before tax for the year to $9.6 million. Book value per share increased to $8.42 per share at the end of 2022, compared to $7.93 at Q3 2022, and $7.49 at the end of 2021.
Mountain Pacific Bank (the Bank) closed out the year strong, recognizing net income before tax of $4.0 million in the fourth quarter of 2022, bringing net income before tax for the year to $10.2 million, which was the Bank’s most profitable year in its history. This was also the third year in a row of record earnings for the Bank.
Chairman Rick Pedack noted, “The Board is proud of the performance posted in 2022 and recognizes the important contribution every member of the team made to achieve the results.”
The Company’s loan portfolio ended the period at $469.3 million. This represented growth in the loan portfolio of $6.5 million over the prior quarter, and a decrease of $125 thousand from last year. Total deposits ended the year at $490.7 million which is a decrease of $35.2 million from last year. The decline in deposits was centered in Time Deposits which decreased $40.3 million in 2022. The Bank experienced a decrease in deposit balances in 2022 as deposit pricing pressures continued and customers sought higher yields. The Bank ended the year with no FHLB borrowings after paying off $24.5 million in advances during the first half of the year. “Our team continues to find opportunities working with businesses in our communities by providing our extraordinary customer service,” stated Mark Duffy, President.
Credit quality and portfolio performance both remain strong, and the Bank continues to fund the allowance for loan loss to withstand any downturn in the economy. At year-end, the allowance was $9.7 million. Mr. Duffy commented, “Our credit culture is to work proactively with our customers, so we recognize the risks they face as well as they do. This helps to minimize credit losses and provides for the best outcomes for everyone.” The Bank will implement CECL at the beginning of 2023.
Net Interest Income
Net interest income increased to $22.8 million for the year ended December 31, 2022, compared to $19.9 million for 2021.
Provision for credit losses
The Company recorded a $1.8 million provision for credit losses for the twelve months ended December 31, 2022, compared to $2.4 million for the twelve months last year. The Bank has performed ALLL analysis in both current methodology and under the new CECL standard that the Bank will adopt in 2023.
Non-Interest Income
Non-interest income for the year ended December 31, 2022, was $3.6 million compared to $5.0 million for the year ended December 31, 2021. The significant decrease in Non-Interest Income year over year was primarily driven by lower gain on sale of loans of $1.3 million in 2022 compared to $2.7 million in 2021 this was partially offset by an increase in service fees of $1.8 million in 2022 compared to $1.7 in 2021.
Non-Interest Expense
Non-interest expense was $15.0 million for the year ended December 31, 2022, compared to $13.5 million for 2021. The increase in expenses were primarily driven by a $1.6 million increase in Salary and Employee Benefits. The Bank’s efficiency ratio was strong at 59.7% for the year, which compares very favorably to our peers.
Balance Sheet
The Company had total assets as of year-end 2022 of $563.7 million compared to $617.2 million as of December 31, 2021.
Total loans on December 31, 2022, were $469.3 million compared to $469.4 million as of December 31, 2021.
The investment portfolio ended the year at $16.7 million down from $20.1 million at the end of 2021.
Total deposits were $490.7 million as of December 31, 2022, compared to total deposits of $526.0 million as of year-end 2021.
Credit Quality
The allowance for loan losses was $9.7 million, or 2.09% of loans as of December 31, 2022, compared to $8.7 million or 1.87% of loans as of December 31, 2021. There were $7.1 million in nonperforming assets as of December 31, 2022, compared to $7.4 million in nonperforming assets as of December 31, 2021.
Capital
As of December 31, 2022, shareholders’ equity totaled $56.4 million compared to $49.4 million as of December 31, 2021. Accumulated other comprehensive loss was $1.8 million at year end as a result of rising interest rates in 2022 affecting the value of the investment portfolio. Capital ratios continue to exceed regulatory requirements, with total risk-based capital substantially above well-capitalized regulatory requirements.
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.
Mountain Pacific Bancorp, Inc. consolidated net income before tax of $3.9 million in the fourth quarter of 2022, bringing consolidated net income before tax for the year to $9.6 million. Book value per share increased to $8.42 per share at the end of 2022, compared to $7.93 at Q3 2022, and $7.49 at the end of 2021.
Mountain Pacific Bank (the Bank) closed out the year strong, recognizing net income before tax of $4.0 million in the fourth quarter of 2022, bringing net income before tax for the year to $10.2 million, which was the Bank’s most profitable year in its history. This was also the third year in a row of record earnings for the Bank.
Chairman Rick Pedack noted, “The Board is proud of the performance posted in 2022 and recognizes the important contribution every member of the team made to achieve the results.”
The Company’s loan portfolio ended the period at $469.3 million. This represented growth in the loan portfolio of $6.5 million over the prior quarter, and a decrease of $125 thousand from last year. Total deposits ended the year at $490.7 million which is a decrease of $35.2 million from last year. The decline in deposits was centered in Time Deposits which decreased $40.3 million in 2022. The Bank experienced a decrease in deposit balances in 2022 as deposit pricing pressures continued and customers sought higher yields. The Bank ended the year with no FHLB borrowings after paying off $24.5 million in advances during the first half of the year. “Our team continues to find opportunities working with businesses in our communities by providing our extraordinary customer service,” stated Mark Duffy, President.
Credit quality and portfolio performance both remain strong, and the Bank continues to fund the allowance for loan loss to withstand any downturn in the economy. At year-end, the allowance was $9.7 million. Mr. Duffy commented, “Our credit culture is to work proactively with our customers, so we recognize the risks they face as well as they do. This helps to minimize credit losses and provides for the best outcomes for everyone.” The Bank will implement CECL at the beginning of 2023.
Net Interest Income
Net interest income increased to $22.8 million for the year ended December 31, 2022, compared to $19.9 million for 2021.
Provision for credit losses
The Company recorded a $1.8 million provision for credit losses for the twelve months ended December 31, 2022, compared to $2.4 million for the twelve months last year. The Bank has performed ALLL analysis in both current methodology and under the new CECL standard that the Bank will adopt in 2023.
Non-Interest Income
Non-interest income for the year ended December 31, 2022, was $3.6 million compared to $5.0 million for the year ended December 31, 2021. The significant decrease in Non-Interest Income year over year was primarily driven by lower gain on sale of loans of $1.3 million in 2022 compared to $2.7 million in 2021 this was partially offset by an increase in service fees of $1.8 million in 2022 compared to $1.7 in 2021.
Non-Interest Expense
Non-interest expense was $15.0 million for the year ended December 31, 2022, compared to $13.5 million for 2021. The increase in expenses were primarily driven by a $1.6 million increase in Salary and Employee Benefits. The Bank’s efficiency ratio was strong at 59.7% for the year, which compares very favorably to our peers.
Balance Sheet
The Company had total assets as of year-end 2022 of $563.7 million compared to $617.2 million as of December 31, 2021.
Total loans on December 31, 2022, were $469.3 million compared to $469.4 million as of December 31, 2021.
The investment portfolio ended the year at $16.7 million down from $20.1 million at the end of 2021.
Total deposits were $490.7 million as of December 31, 2022, compared to total deposits of $526.0 million as of year-end 2021.
Credit Quality
The allowance for loan losses was $9.7 million, or 2.09% of loans as of December 31, 2022, compared to $8.7 million or 1.87% of loans as of December 31, 2021. There were $7.1 million in nonperforming assets as of December 31, 2022, compared to $7.4 million in nonperforming assets as of December 31, 2021.
Capital
As of December 31, 2022, shareholders’ equity totaled $56.4 million compared to $49.4 million as of December 31, 2021. Accumulated other comprehensive loss was $1.8 million at year end as a result of rising interest rates in 2022 affecting the value of the investment portfolio. Capital ratios continue to exceed regulatory requirements, with total risk-based capital substantially above well-capitalized regulatory requirements.
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.
Contact
Mountain Pacific Bancorp
Mark Duffy
425-263-3500
www.mp.bank
Mark Duffy
425-263-3500
www.mp.bank
Contact
Categories