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Mission Valley Bank’s stocks rise with new plan

Posted: August 8, 2012 2:00 a.m.
Updated: August 8, 2012 2:00 a.m.
 

Mission Valley Bank’s stocks rose Tuesday after reporting its second-quarter results and announcing it had decided to address some lingering credit issues that could not be resolved in the near term, by writing-down non-performing assets and selling them at a discount in the third quarter 2012.


While the community-based bank reported mixed second-quarter results, it issued a statement that deposits grew to more than $199 million, which is 5.13 percent more than the same period in 2011. Deposits are also up more than $11 million from year-end 2011.


Net loans also began a steady rebound, growing to more than $180 million in the second quarter, nearly 3 percent higher than $175 million reported during the same period in 2011, and up more than 6 percent — or nearly $11 million — from year-end. The bank reported that it continues to see a steady decline in problem assets. Other operating income also rose by more than 11 percent from the previous year to nearly $1.3 million.


Mission Valley reported it recently experienced a “significant” upturn in borrower interest, particularly within the SBA and Accounts Receivable Lending Divisions, which indicate a positive impact on the bank’s bottom line throughout the remainder of 2012, said Tamara Gurney, president and CEO.


“As 2012 progresses, we are encouraged as we continue to see a slight increase in activity throughout the local small business community,” Gurney said.


In June, the bank wrote-down troublesome credits and marked the notes for sale during third quarter. As a result, Mission Valley placed another $577,000 into Loan Loss Reserves, which resulted in a small loss of $42,000 for the second quarter.


“While it is always disappointing to report a loss such as this, we are eager to move forward and anticipate that these steps will have a positive impact on Mission Valley’s performance for the remainder of 2012 and beyond,” Gurney said.


Shares of stock traded at $5.20, up nearly 1 percent, at close of trading Tuesday.

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