The bank, and their parent company Mission Valley Bankcorp, have announced that their first quarter earnings are up 490 percent from 2008.
“We are very pleased with the company’s performance during the first quarter of 2009,” said Tamara Gurney, President and CEO of Mission Valley Bankcorp. “Hard work, coupled with our commitment to ‘sticking to the basics of banking’ has enabled Mission Valley to achieve significant growth despite these difficult economic times. Loans are up more than 17% to $189 million (an increase of $28 million over the $161 million reported at March 31, 2008). Deposits increased more than $38 million to slightly over $197 million, a 24.5% improvement from the year prior. As a result, total assets grew to more than $257 million – a 29% increase over the $200 million reported at the same time last year. Even more impressive, net income increased more than 490% to $366,000 at March 31, 2009 from $62,000 reported at March 31, 2008.”
Mission Valley Bankcorp has made changes within their business to try and combat the falling numbers across the country and it seems to be working.
“This significant increase in net income may seem extraordinary, particularly in light of the protracted downturn in the economy as well as the ongoing challenges facing the financial services industry,” Gurney continued. “However, management believes it is the result of a number of strategic decisions made over the past 18 months in response to the changing financial landscape. Expansion of the Bank’s Specialized Lending Division into accounts receivable and formula-based lending has contributed, not only through increased loan growth and revenues, but also allowing the Bank to assist businesses that are struggling with cash flow and that may not otherwise qualify for financing. In addition, Mission Valley Bank received approval to become a ‘settlement bank’ for merchant bankcard processing. This designation allows the Bank to provide direct processing services for Independent Sales Organizations as well as our own clientele, thereby enhancing our operating and fee income.”
Despite the positive numbers and activity the bank is keeping a watchful eye on the market and bracing for losses.
“While we are pleased with our first quarter results, we remain mindful of the current economic climate and the potential impact that further deterioration in commercial real estate and continued growth in unemployment could have on the Bank,” said Gurney. Delinquencies within our loan portfolio remain low, particularly as compared to the overall industry. However, as a result of the economic condition in which we operate as well as our own extensive analysis and stress testing of our loan portfolio, we believe it is prudent to reserve for (potential) loan losses at an accelerated rate, thereby allowing us an ample cushion in the event losses do occur. This, coupled with our dedication to keeping in close contact with our borrowers, staying aware of their individual situations and working with them to provide appropriate solutions, will help to further insulate our Bank from significant losses due to the current state of our economy.”
Mission Valley Bank is a full-service, independent, commercial bank specializing in serving small and middle market businesses in the San Fernando & Santa Clarita Valleys. A full service, community based, business bank, the Bank was chartered in July 2001.