Mission Valley Bancorp Announces Improved Earnings for 2011 (Unaudited)
SUN VALLEY, Calif., Feb. 23, 2012 /PRNewswire/ -- President & CEO Tamara Gurney of Mission Valley Bancorp – (parent company of Mission Valley Bank (OTCBB: MVLY.OB)) announced unaudited financial results for the year ended December 31, 2011, reporting net income of $1,154,000 – a 34% increase over year-end 2010.
"We are very pleased to report that Mission Valley Bancorp achieved these solid, improved earnings for 2011 despite the continuing economic uncertainty. The overall fiscal environment of recent years has led us to look at our business differently than ever before. Decreased margins and weak loan demand, coupled with ever increasing regulatory requirements have created an environment in which a community bank must think outside of the box to thrive and Mission Valley has embraced this environment. Our staff and management team have worked in unison developing innovative ways to streamline operations while at the same time continuing to build upon an infrastructure that positions us to succeed regardless of the economic climate."
In recent years Mission Valley Bank has enhanced its Specialized Lending Division, created a highly respected Accounts Receivable Lending Department, strengthened its Underwriting Team, made the strategic decision to further develop our Merchant Bankcard Processing capabilities and most recently, put into place a team of in-house Investment Specialists.
Gurney continued "The current financial landscape is different than ever before and we are all adjusting to this "new normal." Economic uncertainty has prompted many borrowers to payoff debt as quickly as possible. As Trusted Advisors to our clients, we recognize that this is a sound decision and are quick to support it, though the impact to production is significant. During 2011 Mission Valley experienced a decrease in several key areas – Net Loans decreased by 8.9%, Total Deposits by 3.1% and Total Assets by 3.7% – much of this the direct result of loan payoffs. However, even with the decreases experienced in these key areas, the company increased profitability by more than 34%. As important, during 2011 Mission Valley experienced marked improvement in other key areas with regard to the health of our portfolio: Non-Performing Loan Ratios were greatly improved with classified loans decreasing by nearly $4 million or 22% and non-performing loans decreasing by more than $650,000 or 10%. Additionally, Mission Valley continues to maintain its Well Capitalized position with a Total Risk-Based Asset ratio of 19.9% (far exceeding the federal guideline of 10% to maintain Well Capitalized status)."
Gurney concludes, "We continue to see positive indicators throughout the business communities we serve. The slight increases being seen in activity, sales and employment are all very encouraging and while we remain cautious, we are looking ahead with anticipation and the expectation of continued steady improvement for our Bank, our Community, our Shareholders and our Nation."
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.
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.
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