Mission Valley Bank posted net earnings Thursday of $1.154 million for the year ending Dec. 31, a 34 percent improvement over 2010.
Headquartered in the San Fernando Valley, Mission Valley is a three-branch bank with offices in Valencia, Centre Pointe (Saugus) and Sun Valley.
Despite an 8.9-percent decrease in net loans, a 3.1-percent decrease in total deposits and a 3.7-percent decrease in total assets, Mission Valley recorded the gains by streamlining operations and reducing nonperforming loans to $650,000, or 10 percent of the portfolio.
“The overall fiscal environment of recent years has led us to look at our business differently than ever before,” CEO Tamara Gurney said in a statement. “Decreased margins and weak loan demand, coupled with ever increasing regulatory requirements have created an environment in which a community bank must think outside of the box to thrive, and Mission Valley has embraced this environment. Our staff and management team have worked in unison developing innovative ways to streamline operations while at the same time continuing to build upon an infrastructure that positions us to succeed regardless of the economic climate.”
She says she sees signs of improvement in the local economy.
“The slight increases being seen in activity, sales and employment are all very encouraging, and while we remain cautious, we are looking ahead with anticipation and the expectation of continued steady improvement,” Gurney said.
Mission Valley maintains a total risk-based asset ratio of 19.9 percent, she said, ahead of the 10 percent guideline for a “well capitalized” bank.