SUN VALLEY, Calif.,
Sept. 9 /PRNewswire/ -- President
& CEO Tamara Gurney of Mission
Valley Bancorp (OTC Bulletin Board: MVLY) the parent company of
Mission Valley Bank announced today, "I am very pleased to share
that on Friday, August 20, 2010,
Mission Valley Bancorp completed an exchange of its TARP / CPP
capital into the Community Development Capital Initiative (CDCI)
program."
Mission Valley Bancorp was able to participate in this limited
program because the bank has been recognized as a CDFI (Community
Development Financial Institution) since 2006. The CDFI Fund
was created for the purpose of promoting economic revitalization
and community development through investment in, and assistance to,
community development financial institutions (CDFIs). In turn,
CDFIs leverage private capital to respond to demand for affordable
financial products and services in economically distressed markets.
CDFIs respond to this demand through the provision of loans,
investments, training, technical assistance and basic financial
services such as checking or savings accounts.
Gurney continued, "This capital exchange is beneficial to
Mission Valley on a number of levels. First and foremost --
receiving approval for an exchange of this nature demonstrates that
both the Federal Reserve and the U.S. Treasury have confidence in
our Bank and in our ability to appropriately utilize this capital
to the benefit of the communities we serve over the 'long haul.'
Additionally, because the CDCI program provides less costly
and more efficient capital, Mission Valley will realize an annual
decrease in interest expense of more than $165,000, having a very positive effect on net
operating income and shareholder value."
"We are a community based business bank dedicated to working
diligently with our clients and assisting them through the
difficulties associated with the current economy. This
capital exchange enhances our ability to keep doing what we do best
– assist in the growth and successes of our clients and our
communities."
Mission Valley continues to exceed all requirements as a
well-capitalized institution with Tier 1 Capital to Assets of 13.2%
with strong reserves of 2.98% 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
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