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Mission Valley Bank reports its Q1 earnings are way up

Bank reports a 194 percent increase over Q1 in 2012

Posted: May 10, 2013 2:00 a.m.
Updated: May 10, 2013 2:00 a.m.
 

Mission Valley Bank reported its first quarter earnings of $318,000 on Thursday. The quarterly earnings report is un-audited, the bank said.

The first quarter earnings represented a 194 percent increase over the same period in 2012, said Tamara Gurney, president and CEO.

There are a number of factors accounting for the improved performance, she said. But, improved credit quality is the primary reason.

“The health of our loan portfolio is such that there was no need to place additional funds in reserve for the quarter,” Gurney said.

The bank also reported its reserve for loan losses as of March 31 as $5.2 million, or 2.98 percent of total loans compared to $5.6 million or 3.09 percent of total loans during the same period in 2012.

There was also a 25 percent decrease in interest expense, Gurney said and a slight improvement in other income and operating expenses. The bank also streamlined its operations; she said but did not elaborate what those actions were.

Mission Valley Bank also launched several less traditional revenue streams including a Merchant Bankcard Processing division, Accounts Receivable Financing and a SBA Lending Division.

“We are excited by the momentum we are experiencing within all of these areas and are looking forward to continued progress in 2013,” Gurney said.

Total deposits surpassed $249 million and assets grew to almost $289 million in the first quarter the bank reported. A portion of this increase was due to a short-term $34 million deposit that was held until early April.

Net loans contracted slightly to $171 million, down 3.5 percent from March 31, 2012, though net interest income was up 12 percent, reaching $2.7 million from the $2.4 million reported for the same period of 2012, the bank reported.

Mission Valley capital ratios continue to exceed regulatory requirements, well above the requirements for a “well-capitalized bank,” at 10 percent, Gurney said.

“At Mission Valley we have met the challenges presented, due to the economic downturn, head on,” she said. “Knowing that compressed margins, decreased loan demand and increased regulatory restrictions are part of our business landscape for the foreseeable future, we opted to work toward positioning our bank to thrive despite the economic climate.

 

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