SUN VALLEY, Calif., Oct. 26 /PRNewswire-FirstCall/ -- President & CEO Tamara Gurney of Mission Valley Bancorp (OTC Bulletin Board: MVLY), the parent company of Mission Valley Bank, stated today, "I am pleased to report that Mission Valley experienced a strong 3rd Quarter with earnings for the period in excess of $325,000. This represents a quarter to quarter improvement of more than 288% over the same period of 2009. These results indicate the Company's return to profitability, despite placing an additional $194,000 toward provision for loan losses.
"While measurable change in the economic climate remains to be seen – our improved performance, coupled with strong portfolio management and a solid capital position strengthens our resolve that the worst is behind us. We believe that as the economy continues its slow recovery, Mission Valley is well positioned for future growth and improved profitability for our shareholders. Representative of the beginnings of economic stabilization, over the last 9 months we have continued to experience steady decreases in both classified and delinquent loan ratios with classified loans down by 14.7% and delinquencies reduced by 17%.
"Throughout 2010 Mission Valley has continued to lend and to attract new clients, enabling us to reach a Net Operating Income (before taxes and provision for potential loan losses) of more than $2.1 million through September 30, 2010. Our 3rd Quarter earnings of $325,000 have gone a long way toward offsetting the $329,000 loss reported for the 2nd Quarter 2010, enabling us to close the 3rd Quarter with the reported small loss of only $4,000 year to date."
During the 3rd Quarter of 2010 Mission Valley Bancorp received $4,836,000 in capital via the Community Development Capital Initiative (CDCI) program as well as approval to exchange the bank's existing TARP funding for the more favorably structured CDCI funds, both transactions representing a strong 'vote of confidence' from the U.S. Treasury and Federal Reserve.
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.
SOURCE Mission Valley Bancorp