SUN VALLEY, Calif.,
July 22, 2013 /PRNewswire/ -- Mission
Valley Bancorp (OTCBB: MVLY.OB) President & CEO
Tamara Gurney announced today that
the company achieved record second quarter earnings of $947,000 (after provision for income taxes), up
more than twentyfold from June 30,
2012.
President and CEO Tamara Gurney
stated, "I am pleased to report that 2013 continues to be a strong
year for Mission Valley Bancorp. Net income of $947,000 after provision for income taxes
represents the best June
30th close in the history of our company.
While there are a number of contributing factors to this improved
performance, two key contributors are expense reductions and
improved credit quality. We are beginning to see the benefits
of a number of cost cutting decisions that have been implemented
over the past several months. In addition, as a result of
focused and proactive credit management, our loan portfolio is such
that there was no need to place additional funds in reserve for the
quarter. The Bank's reserve for loan losses as of June 30, 2013 was $5.2
million or 3.00% of total loans compared to $5.4 million or 2.94% of total loans as of
June 30, 2012."
Gurney continued, "Total deposits reached $216 million, up 8.5% from $199 million reported for the same period the
previous year. While loan production remained steady
throughout the quarter, gross loans were down by 7.4% to
$172 million from $185 million the year prior. This was
driven by several factors, including the ongoing economic
conditions that have caused an increase in loan payoffs and
pay-downs as well as our continuing efforts to work through
resolving problem credits. Net interest income grew slightly
to $5.7 million at quarter end from
the $5.6 million reported June, 30,
2012, and total assets reached more than $255 million up from $247
million reported in June 2012. Couple this with a 25%
decrease in interest expense as well as continued improvement in
operating expenses; it was a robust and promising 2nd
Quarter."
Mission Valley capital ratios continue to far exceed regulatory
requirements with Tier 1 Leverage, Tier 1 Risk-based Capital and
Total Risk-based Capital Ratios of 14.2%, 19.0%, and 20.3%,
respectively, as of June 30, 2013.
Regulatory requirements for a "well-capitalized bank" are 5%, 6%,
and 10%, respectively.
Gurney continued, "Mission Valley is 'fiscally fit', our loan
portfolio is steadily improving, expenses are down and revenue is
up. Having streamlined our operations while successfully
building upon our less traditional revenue streams, including a
growing Merchant Bankcard Processing division, Accounts Receivable
Financing and a robust SBA Lending unit, we are well positioned to
continue along our path of renewed profitability and long-term
growth."
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