SUN VALLEY, Calif.,
Aug. 17 /PRNewswire-FirstCall/ --
President & CEO Tamara Gurney of
Mission Valley Bancorp (OTC Bulletin Board: MVLY), the parent
company of Mission Valley Bank, stated today, "We are a
community-based business bank dedicated to doing all we can to work
with our clients and assist them through the difficulties
associated with the current economy. As such, Mission Valley
is a direct reflection of the companies and communities we serve.
As 2010 progresses and many of our customers continue to
struggle with the economy, it is clear that our Bank must continue
to increase reserves to cover potential losses in our loan
portfolio."
"During the 2nd Quarter of 2010, we increased our provision for
possible loan losses by more than $1.4
million – this is in addition to the $752,000 that was placed into reserves during the
first quarter of the year – bringing our current reserve total to
more than $5.8 million. Our
ability to continue to shore up reserves to these levels is made
possible solely due to the fact that the bank's Net Operating
Income (before taxes and provision for possible loan losses)
remains strong, reaching $1.4 million
year to date."
Gurney continued, "We remain committed to our decision to assist
our clients through these difficult days – though it is a decision
that unfortunately comes at a significant (though we believe
temporary) cost – our continuing need to increase reserves.
Each dollar put toward reserves comes directly off of our
bottom line – so, despite our solid performance through the first
six months of the year, Mission Valley Bancorp is reporting a loss
of $329,000 through the 2nd quarter
of 2010."
"While disappointed to report this loss, we remain committed to
doing all we can to work through this period side by side with our
clients. As testament to our philosophy, the majority of our
portfolio is 'paying as agreed' and Mission Valley continues to
experience marked decreases in both classified and delinquent loan
ratios. In fact, during the past 6 months classified loans
are down by nearly 12% and delinquencies by more than 17%.
Additionally, we are beginning to hear much more positive
news from the local business community. Although we remain
cautious, these are positive indicators. 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 increases to (or positive) net income through
the remainder of 2010."
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
Copyright . 17 PR Newswire
