SUN VALLEY, Calif.,
May 9, 2013 /PRNewswire/ -- Mission
Valley Bancorp – (parent company of Mission Valley Bank (OTCBB:
MVLY.OB)), reports first quarter (March 31,
2013) un-audited earnings of $318,000.
President and CEO Tamara Gurney
stated, "I am pleased to report that 2013 is off to a strong start
having closed the 1st Quarter with net income of
$318,000, representing a 194%
increase over the same period in 2012. While there are
a number of contributing factors to this improved performance,
first and foremost is improved credit quality. The health of
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 March 31, 2013 was
$5.2 million or 2.98% of total loans
compared to $5.6 million or 3.09% of
total loans as of March 31,
2012. Couple this with a 25% decrease in interest expense as
well as a slight improvement in other income and operating expense,
it was a very respectable 1st Quarter."
Gurney continued, "Total deposits surpassed $249 million and assets grew to almost
$289 million at March 31, 2013. A portion of this increase was
due to a short term, $34 million
deposit that was held until early April. While not expected
to reoccur, this transaction is reflected in both deposits and
assets at quarter end. Total deposits and assets have since
readjusted. By removing this short term transaction from the
equation, you'll find that deposits increased 11% and assets held
steady reflecting a 1% increase despite Mission Valley paying off
its last FHLB advance of $5 million
during the quarter, further decreasing interest expense. Net loans
contracted slightly to $171 million,
down 3.5% from March 31, 2012, though
net interest income after provision performed well, up 12%,
reaching $2.7 million from the
$2.4 million reported for the same
period of 2012."
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 14.1%, 17.8%, and 19.1%,
respectively, as of March 31, 2013.
Regulatory requirements for a "well-capitalized bank" are 5%, 6%,
and 10%, respectively.
Gurney continued, "At Mission Valley we have met the challenges
presented, due to the economic downturn, head on. Knowing
that compressed margins, decreased loan demand and increased
regulatory restrictions are part of our business landscape for the
foreseeable future, we opted to work toward positioning our bank to
thrive despite the economic climate. We have streamlined our
operations and successfully launched several less traditional
revenue streams including a growing Merchant Bankcard Processing
division, Accounts Receivable Financing and a robust SBA Lending
Division. We are excited by the momentum we are experiencing
within all of these areas and are looking forward to continued
progress in 2013."
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