SUN VALLEY, Calif.,
April 26 /PRNewswire-FirstCall/ --
Mission Valley Bancorp – (parent company of Mission Valley Bank
(OTC Bulletin Board: MVLY)), today announced the company's
March 31, 2010 (unaudited) earnings
of $36,000. This earnings
report comes after the company closed 2009 reporting a net loss for
the year of $667,000 (December 31, 2009).
President & CEO, Tamara
Gurney stated, "We are pleased to report these modest
earnings for the first quarter of 2010 after what was a difficult
year for the industry and for most financial institutions. In
the latter part of 2009 the Bank experienced a significant increase
in problem loans, resulting in a provision for potential loan loss
expense of almost $5.4 million for
the year. While posting our first loss since the bank opened
in 2001 is unfortunate, it is important to note that core earnings
(Net Operating Income before taxes and provision for potential loan
losses) for 2009 reached $3.1
million, representing a 70% increase over the $1.8 million achieved the previous year.
Likewise, for the first quarter of 2010, Net Operating Income
before taxes and provision for potential loan losses was
$753,000, representing a 12% increase
over the same period as last year.
"During the first quarter of 2010 alone, Mission Valley saw a
decline in our classified and delinquent loan ratios, reducing
classified loans by nearly 12% and delinquencies by 6%. Although we
remain cautious, these are positive indicators that 2010 should
prove to be a better year for both our bank and our clients.
As we continue to work through these issues with our clients,
we anticipate the need for additional provisions for possible loan
losses may be reduced, thereby resulting in continued increases to
net income through 2010."
Mission Valley continues to exceed all requirements as a
well-capitalized institution with strong reserves and revenue
generation. The Company raised an additional $4.58 million through the issuance of preferred
stock in a private placement that closed at year end. Gurney
noted, "The entire offering was subscribed to by directors and
existing shareholders of Common stock, demonstrating their
confidence in the Company's ability to navigate the challenges
ahead. The additional capital brought the Company's Tier I
Capital to Assets ratio to 12.7% providing a further cushion to
assist in managing our asset quality issues."
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
SOURCE Mission Valley Bancorp