Tri-Valley Bank Announces 3Q2010 Results

Tri-Valley Bank (OTCBB:TRVB), announced today a 3^rd quarter loss of $678, with a year to date loss of $1,605. This compares to respective losses of $1,697 and $2,299 for comparable periods in 2009. The improvement was due to lower provisions for loan losses and lower discretionary expenses.

The Bank has been focused on improving the yields of earning assets and lowering its cost of funds. The result has been an improvement in the NIM to 3.95% from 3.50% over the past 4 quarters. The subsequent decrease in assets was the result of a planned reduction in higher cost liabilities.

During the quarter, the Bank announced the signing of a Stock Purchase Agreement with a group of private investors. The group will invest $10,000 in the Bank with the purchase of common stock at $0.70 per share. The agreement also contemplates that these individuals will make a tender offer to existing shareholders at $0.70 per share and that separately the Bank will conduct a rights offering to the existing shareholders opting not to tender their shares. The transaction is expected to close by the end of the year and is subject to regulatory approval.

	Audited								Q310 vs. Q409				Q310 vs. Q210
	Q409		Q110		Q210		Q310		Amount		%		Amount		%
	(A)		(B)		(C)		(D)		(E)		(F)		(G)		(H)
Assets:
Cash & Cash Equivalents		4,775		10,697		6,840		8,234	3,460		72	%	1,394		20	%
Securities & Correspondent Stock		10,377		10,073		8,679		8,256	(2,120	)	-20	%	(422	)	-5	%
Loans, net		69,745		66,957		62,948		58,729	(11,016	)	-16	%	(4,218	)	-7	%
Other Assets		2,340		1,437		3,809		1,209	(1,131	)	-48	%	(2,600	)	-68	%
Total Assets	$	87,237	$	89,165	$	82,275	$	76,429	(10,808	)	-12	%	(5,846	)	-7	%

Liabilities and Stockholders' Equity
Total Deposits		77,073		76,234		69,827		62,614	(14,459	)	-19	%	(7,213	)	-10	%
Borrowings & Other Liabilities		2,228		5,236		5,383		7,208	4,980		223	%	1,825		34	%
Total Liabilities		79,301		81,470		75,210		69,822	(9,479	)	-12	%	(5,388	)	-7	%
Stockholders' Equity:		7,936		7,695		7,065		6,607	(1,329	)	-17	%	(458	)	-6	%
Total Liabilities & Stockholders' Equity	$	87,237	$	89,165	$	82,274	$	76,429	(10,808	)	-12	%	(5,846	)	-7	%

	Year-to-Date						Chg Fr. Prior Year					Quarter						Chg Fr. Prior Year
	Q310			Q309			Amount			%		Q310			Q309			Amount			%
	(A)			(B)			(C)			(D)		(E)			(F)			(G)			(H)
Revenue, after Credit Provision
Total Interest Income		2,797			3,457			(660	)	-24	%		876			1,113			(237	)	-27	%
Total Interest Expense		541			994			(453	)	-84	%		134			302			(169	)	-126	%
Net Interest Income		2,256			2,463			(207	)	-9	%		742			810			(68	)	-9	%
Provision for Loan Losses		954			2,011			1,057		111	%		576			1,611			1,035		180	%
Net Interest Income after Provision		1,302			452			850		65	%		166			(800	)		966		583	%
Total Noninterest Income		308			120			188		61	%		227			33			194		85	%
Total Revenue after Cr. Provision		1,610			572			1,038		64	%		392			(767	)		1,160		296	%

Noninterest Expense:
Compensation, excl. FASB91 and stock options		1,540			1,706			165		11	%		472			544			72		15	%
FASB91 cost deferrals		(127	)		(78	)		49		-38	%		(32	)		(31	)		1		-3	%
Occupancy		470			519			48		10	%		156			165			9		6	%
Insurance/Regulatory		297			147			(150	)	-51	%		87			43			(44	)	-51	%
Other Expense		869			638			(231	)	-27	%		314			179			(134	)	-43	%
Total Noninterest Expense, excl. stock options		3,050			2,931			(119	)	-4	%		996			899			(97	)	-10	%
Stock Option Expense		82			(60	)		(143	)	-174	%		23			30			7		32	%
Total Noninterest Expense		3,132			2,871			(261	)	-8	%		1,019			930			(89	)	-9	%

Income Bef. Tax & Restructuring Costs		(1,522	)		(2,299	)		777		-51	%		(627	)		(1,697	)		1,070		-171	%
Restructuring Costs		83			-			(83	)	-100	%		51			-			(51	)	-100	%
Income Tax		1			1			-			%		-			-			-
Net Income (Loss)	$	(1,605	)	$	(2,299	)	$	694		-43	%	$	(678	)	$	(1,697	)	$	1,019		-150	%

Visit Tri-Valley Banka�s website at: [ www.trivalleybank.com ]

This release may contain certain forward-looking statements that are based on management's current expectations regarding economic, legislative, and regulatory issues that may impact the Bank's earnings in future periods. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words "believe," "expect," "intend," "estimate" or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could" or "may." Factors that could cause future results to vary materially from current management expectations include, but are not limited to, general economic conditions, changes in interest rates, deposit flows, real estate values, and competition; changes in accounting principles, policies or guidelines; changes in legislation or regulation; and other economic, competitive, governmental, regulatory and technological factors affecting the Bank's operations, pricing, products and services. These and other important factors are detailed in various Federal Deposit Insurance Corporation filings made periodically by the Bank, copies of which are available from the Bank without charge. The Bank undertakes no obligation to release publicly the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events.

Contributing Sources

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Tri-Valley Bank Announces 3Q2010 Results