Mission Valley Bancorp Releases First Quarter Results

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May 12, 2011, 09:00 ET

SUN VALLEY, Calif., May 12, 2011 /PRNewswire/ -- Mission Valley Bancorp – (parent company of Mission Valley Bank (OTCBB: MVLY)), today announced the company's March 31, 2011 (unaudited) earnings of $150,000 – representing more than a 400% improvement from the same period in 2010.

"We are pleased to report these improved (yet modest) earnings for the first quarter of 2011, as they support our view that despite the languishing economy, Mission Valley has returned to a steady course of performance and profitability." President and CEO, Tamara Gurney stated, "Despite the slight drop in Total Assets, our earning engine remains robust and allows us the flexibility to address any developing credit issues swiftly and in the best interest of both the Bank and our clients. For example, as a result of the continuing decline of commercial real estate valuations throughout the region, Mission Valley found it necessary to place an additional $641,000 toward loan loss reserves during the 1st Quarter. Our company's solid core earnings enabled us to do so and still report respectable earnings for the quarter."

Mission Valley continues to far exceed all requirements as a well-capitalized institution with a Tier 1 Capital to Assets Ratio of 17.8% which provides significant insulation to assist in managing whatever asset quality issues that may arise as the economy continues to rebuild.

Gurney concluded, "Although we remain cautious, we are beginning to see signs of steady improvement in the economy and believe that 2011 should prove to be a better year for both our Bank and our clients. We look forward to seeing the positive impact of this continued steady improvement of the economy on the financial performance of our clients, our company and our community."

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