Mission Valley Bancorp Announces Improved 2nd Quarter Earnings

SUN VALLEY, Calif., July 18, 2011 /PRNewswire/ -- Mission Valley Bancorp (parent company of Mission Valley Bank (OTCBB: MVLY.OB)), today announced the company's June 30, 2011 year to date earnings of $490,000 (unaudited) – representing an $819,000 increase over the same period in 2010.

"As Mission Valley celebrates its 10th year serving the financial needs of the San Fernando and Santa Clarita Valleys, we are pleased to report these improved earnings for the second quarter of 2011 as they continue to support Mission Valley's outlook that our organization has returned to a steady course of performance and profitability." President and CEO, Tamara Gurney stated, "While assets have dipped slightly (1.07%), our earning engine is strong and continues to provide us the necessary flexibility to address any developing credit issues swiftly and in the best interest of both the Bank and our clients. It should be noted that the change in net income overall was positively impacted by the reduced need in provision for loan loss for the comparable periods - $637,000 for YTD June 30, 2011 compared to $2,122,000 for YTD June 30, 2010."

Gurney continued, "Our credit portfolio continues to improve, as demonstrated by the fact that non-performing loans to total loans have decreased to 2.32% (from 4.84% at June 30, 2010) and non-performing assets to total assets are currently at 1.66% (from 3.43% for the same period last year). Both are strong indicators that MVB has turned a very positive corner."

Mission Valley continues to far exceed all requirements as a well-capitalized institution with a Tier 1 Risk Based Capital to Assets Ratio of 18.2%, providing significant insulation to assist in managing whatever asset quality issues that may arise as our community continues to rebuild.

Gurney concluded, "Although we remain cautious, we continue to see the early signs of steady improvement in the economy and we trust that 2011 will maintain its course as a much improved year for our Bank and our clients. We look forward to seeing the positive impact of this continued steady improvement of our 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

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SOURCE Mission Valley Bancorp

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