Mission Valley Bancorp Announces Improved Earnings for 2010

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Feb 07, 2011, 08:00 ET

SUN VALLEY, Calif., Feb. 7, 2011 /PRNewswire/ -- President & CEO Tamara Gurney of Mission Valley Bancorp (parent company of Mission Valley Bank (OTC Bulletin Board: MVLY)) stated today, "We are pleased to report that the company closed the year with earnings of $859,000, representing a 229% increase from year-end 2009."

"In light of the economic challenges faced during the year, we are particularly pleased to report these improved earnings for 2010. As a community based business bank, Mission Valley is a direct reflection of the communities we serve. We have not waivered from our commitment to stand by our clients, and we continue to work with them through these difficult days. Unfortunately, this dedication to our clients and our community comes at a significant cost – placing an additional $2.4 million toward provision for loan losses during the course of the year. Net income (including the $2.4 million in pre-tax provision expense) closed the year at $859,000 bearing a strong testament to the fact that our 'earning engine' remains solid and well positioned to see us through the impending economic recovery".

During 2010, Mission Valley experienced steady decreases in non-performing loan ratios with classified loans down by 30% and non performing loans reduced by more than 15%. Additionally, Mission Valley continues to maintain its Well Capitalized position, with a Tier 1 Risk-Based Asset ratio of 18.4% (far exceeding the federal guideline of 10% to maintain Well Capitalized status).

Gurney continued, "As Mission Valley enters our 10th year of operation, 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 (continuing to carefully monitor our portfolio) we are also looking forward with anticipation to the year ahead. These economic 'upturns' allow us to refocus a bit more toward growth and financial performance. During the coming year, our team is dedicated to deepening existing relationships, growing our client base and providing innovative financing solutions to an even greater number of businesses throughout the markets we serve."

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