2. 1st Valley Bank, Inc.
• Established in 1956
• Formerly known as Rural Bank of Kapatagan
Valley, Inc. (RUBANKA)
• The biggest in Northwestern Mindanao.
• Rated A+(rb) by the PhilRatings system.
• Hall of Fame Awardee, Most Outstanding RB,
National Level by Land Bank of the Philippines
• 80% of the branches are in the rural areas.
1st Valley Bank, Inc.
4. MF Programs with MABS
• FAME (Financial Assistance to Micro-
Entrepreneurs)
Introduced in July 1999
• MAP (Micro-Agri Loan Product)
Started in 2004.
• Mobile banking technology- sinceJuly 2006
(TextAPayment; TextADeposit; TextASalary)
1st Valley Bank, Inc.
5. Microfinance Operations
(as of Dec 2008)
No. of Branches 19
No. of Account Specialists 26
No. of Borrowers 4,387
Loan Portfolio Balance P47.74 M
Cum. No. of Clients Served 10,920
Cum. No. Loans Disbursed since 1999 49,676
Cum. Amount of Loans Disbursed P782.78 M
No. of micro-deposit accounts 89,109
Total amount of micro-deposits P105.69M
Portfolio-at-Risk Rate, 30 days (PARR30) 2.75%
1st Valley Bank, Inc.
6. Selected Bankwide Indicators
1999 Net Change
Performance Data (start of MF Dec.08 1999 to
Operations) Dec2008
Branch offices 6 19 183%
No. of employees 79 327 314%
Total Resources P251.17 M P2.68B 1066%
Total Loans P217.02 M P2.16B 895%
Total Deposits P88.42 M P1.56B 1664%
Total Capital P46.99 M P354.97 M 655%
Net Income, after Tax P6.51 M P 64.73 M 894%
1st Valley Bank, Inc.
8. Legacy Issue:
Lower Client's Trust in the RB Industry
Massive Withdrawals - Bank Run
Liquidity Problems
Recapitalization / Prohibited from Operating
1st Valley Bank, Inc.
10. 1VB STRATEGIES
• Robust Organizational Structure
• Generalist vs Specialist
• Increase the number of training focusing on
Operational Efficiency
• Realign Targets
1st Valley Bank, Inc.
11. Other Initiatives
• Review Priority Programs
• Regularly Monitor Controllable Expenses
• Intensify recovery of foreclosed assets
and other collectibles
• Widen sourcing of credit lines
• Prepare Notes for Rediscounting
• And Training…Training… Training…
and a lot more to be done
1st Valley Bank, Inc.
12. It’s Time to Go Back to Basics:
• Zero Tolerance to delinquency
• Start small loans, step up
• Shorter terms for fast recovery of funds
• Small frequent amortization payments
• Focus on character and cash flow rather
than collateral
• Strict adherence to policies and standards
• Take care of your staff, they are your
business centers
1st Valley Bank, Inc.