SUN VALLEY, Calif., Sept. 9 /PRNewswire/ -- President & CEO Tamara Gurney of Mission Valley Bancorp (BULLETIN BOARD: MVLY) the parent company of Mission Valley Bank announced today, "I am very pleased to share that on Friday, August 20, 2010, Mission Valley Bancorp completed an exchange of its TARP / CPP capital into the Community Development Capital Initiative (CDCI) program."
Mission Valley Bancorp was able to participate in this limited program because the bank has been recognized as a CDFI (Community Development Financial Institution) since 2006. The CDFI Fund was created for the purpose of promoting economic revitalization and community development through investment in, and assistance to, community development financial institutions (CDFIs). In turn, CDFIs leverage private capital to respond to demand for affordable financial products and services in economically distressed markets. CDFIs respond to this demand through the provision of loans, investments, training, technical assistance and basic financial services such as checking or savings accounts.
Gurney continued, "This capital exchange is beneficial to Mission Valley on a number of levels. First and foremost -- receiving approval for an exchange of this nature demonstrates that both the Federal Reserve and the U.S. Treasury have confidence in our Bank and in our ability to appropriately utilize this capital to the benefit of the communities we serve over the 'long haul.' Additionally, because the CDCI program provides less costly and more efficient capital, Mission Valley will realize an annual decrease in interest expense of more than $165,000, having a very positive effect on net operating income and shareholder value."
"We are a community based business bank dedicated to working diligently with our clients and assisting them through the difficulties associated with the current economy. This capital exchange enhances our ability to keep doing what we do best - assist in the growth and successes of our clients and our communities."
Mission Valley continues to exceed all requirements as a well-capitalized institution with Tier 1 Capital to Assets of 13.2% with strong reserves of 2.98% of total loans and solid core revenue generation.
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.
http://www.missionvalleybank.com/
Member FDIC
Mission Valley Bancorp
CONTACT: Tamara Gurney, CEO of Mission Valley Bancorp, +1-818-394-2330
Web Site: http://www.missionvalleybank.com/
