SUN VALLEY, Calif.,
Aug. 7, 2012 /PRNewswire/ --
President & CEO Tamara Gurney of
Mission Valley Bancorp (OTCBB: MVLY.OB), the parent company of
Mission Valley Bank, stated today, "As 2012 progresses we are
encouraged as we continue to see a slight increase in activity
throughout the local small business community. At Mission
Valley we have recently experienced a significant upturn in
borrower interest, particularly within our SBA and Accounts
Receivable Lending Divisions and are confident that these
indicators will have a very positive impact on our bottom line
throughout the remainder of 2012 and beyond. As I have noted
before, Mission Valley is a community based business bank and as
such, a direct reflection of the companies and communities we
serve. While we are proud of the role we play in the success
of our clients – many are still struggling, making it clear that
while there are signs of economic improvement, Mission Valley must
continue to take proactive steps to maintain its position of
strength."
"The 2nd Quarter of 2012 has proven to be a 'mixed
bag.' Deposits grew 5.13% to more than $199 million from the $190
million reported at June 30,
2011 – and are up more than $11
million from year-end 2011. Net Loans also began a
steady rebound, growing by nearly 3% to more than $180 million at June 30,
2012 from $175 million
reported during the same period in 2011 – and up more than 6%
(nearly $11 million from year
end). Additionally, Other Operating Income also rose by more
than 11% from the previous year to $1,280,000. Most importantly, the Bank
continues to see a steady decline in problem assets.
Based on these positive factors and coupled with the strength of
the Bank's capital position, our Board of Directors and Management
Team made the decision to further address a few lingering credit
issues that could not be worked to resolution in the near
term. In June, we wrote-down these credits and marked the
notes to Market with the anticipation of selling these assets at a
discount during the third quarter. Our classified assets to
capital ratio declined by 9.78%, from 34.81% to 25.03% between
June 30, 2011 and June 30, 2012 and upon completion of the note
sale should further improve to 21.06%, barring any unforeseen
circumstances. This action will enable us to not only move
forward from these credits, but also free up internal resources to
focus on new and profitable relationship banking. In order to
facilitate these positive steps, MVB placed an additional
$577,000 into Loan Loss Reserves,
resulting in a small loss of $42,000
for the 2nd Quarter ended June
30, 2012."
Gurney continued, "While it is always disappointing to report a
loss such as this, we are eager to move forward and anticipate that
these steps will have a positive impact on Mission Valley's
performance for the remainder of 2012 and beyond.
Mission Valley remains strong – and we believe well
positioned to make tremendous strides in the months and years to
come."
Mission Valley continues to exceed all requirements as a
well-capitalized institution with Total Risk Based Capital Ratio of
19.1% with strong reserves of 2.66% of total loans and solid core
revenue generation.
About Mission Valley Bank
Mission Valley Bank is a full-service, independent, commercial
bank specializing in the banking needs of small to medium
businesses in the San Fernando & Santa Clarita Valleys. The
Bank was chartered in July 2001, with
a vision of local ownership and a commitment to providing financial
solutions to meet the needs of its clients.
Forward-looking statements:
Certain matters discussed in this news release constitute
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These statements are
based upon current management expectations and, therefore, are
subject to certain risks and uncertainties that could cause actual
results, performance, or achievements to differ materially from
those expressed, suggested, or implied by the forward-looking
statements. Forward-looking statements are effective only as of the
date that they are made and Mission Valley Bank assumes no
obligation to update this information.
www.MissionValleyBank.com
Member FDIC
SOURCE Mission Valley Bancorp
