Mission Valley Bancorp Releases 2009 Results and Reports First Quarter 2010 Results

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Apr 26, 2010, 02:21 ET

SUN VALLEY, Calif., April 26 /PRNewswire-FirstCall/ -- Mission Valley Bancorp – (parent company of Mission Valley Bank (OTC Bulletin Board: MVLY)), today announced the company's March 31, 2010 (unaudited) earnings of $36,000. This earnings report comes after the company closed 2009 reporting a net loss for the year of $667,000 (December 31, 2009).

President & CEO, Tamara Gurney stated, "We are pleased to report these modest earnings for the first quarter of 2010 after what was a difficult year for the industry and for most financial institutions. In the latter part of 2009 the Bank experienced a significant increase in problem loans, resulting in a provision for potential loan loss expense of almost $5.4 million for the year. While posting our first loss since the bank opened in 2001 is unfortunate, it is important to note that core earnings (Net Operating Income before taxes and provision for potential loan losses) for 2009 reached $3.1 million, representing a 70% increase over the $1.8 million achieved the previous year. Likewise, for the first quarter of 2010, Net Operating Income before taxes and provision for potential loan losses was $753,000, representing a 12% increase over the same period as last year.

"During the first quarter of 2010 alone, Mission Valley saw a decline in our classified and delinquent loan ratios, reducing classified loans by nearly 12% and delinquencies by 6%. Although we remain cautious, these are positive indicators that 2010 should prove to be a better year for both our bank and our clients. 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 continued increases to net income through 2010."

Mission Valley continues to exceed all requirements as a well-capitalized institution with strong reserves and revenue generation. The Company raised an additional $4.58 million through the issuance of preferred stock in a private placement that closed at year end. Gurney noted, "The entire offering was subscribed to by directors and existing shareholders of Common stock, demonstrating their confidence in the Company's ability to navigate the challenges ahead. The additional capital brought the Company's Tier I Capital to Assets ratio to 12.7% providing a further cushion to assist in managing our asset quality issues."

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