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Tri-Valley Bank Announces First Quarter 2011 Earnings and Stock Offering

^{Published on 2011-05-12 16:20:35 - Market Wire}
 

SAN RAMON, Calif.--([ BUSINESS WIRE ])--Tri-Valley Bank (OTCBB:TRVB) today announced earnings for the first quarter of 2011. Financial performance highlights for the first three months of the year ending March 31, 2011, include the following:

"We would like to see local people have this opportunity, rather than a Wall Street investment banker."

• Assets grew during the first quarter to $71.7 million, up from $70.3 million at year-end 2010 and down from $89.2 million at the end of first quarter in 2010.
• Deposits grew to $57.7 million, up from $55.4 million at year-end and down from $76.2 million at the end of first quarter 2010.
• Loans, net of allowance for loan losses, decreased to $53.2 million from $54.6 million at year-end 2010 and from $67.0 million at the end of first quarter 2010.
• There was a net loss for the first quarter of $324,000 better than the net loss of $344,000 for the first quarter of 2010 and from the fourth quarter 2010 net loss of $1.3 million.
• Compared to the fourth quarter of 2010, there was an improvement in net interest income of $12,000 and in operating expenses of $183, 000 along with a reduction in the loan loss provision of $777,000.
• The Tier 1 leverage ratio decreased slightly to 6.59% on March 31, 2011 from 6.67% on December 31, 2010.

aThe loss for this quarter is marginally better than first quarter 2010, primarily because of expense controls we implemented that were commensurate with the reduction in revenue,a said David Greiner, CEO and president. aOur bank has met the challenges of the recent economic downturn and we have emerged with a clear, revitalized focus on our future,a added Greiner. aWe have made progress this quarter and plan to build upon that foundation throughout the year. We believe in our customers and the prospects of increased business opportunities that will come from the resurgent strength of local East Bay economies.a

Leadership Appointments

Earlier this month the bank announced the election of a new chairman, former Federal Reserve Board member and banking executive Arnold Grisham, and the appointment of three new directors to the banka™s board. The new board members are Dr. James DeLano, a partner in the Bishop Ranch Veterinary Center, the largest veterinary general practice in the East Bay; Guy Rounsaville, an attorney and director of diversity for the law firm of Allen Matkins, which has offices throughout California; and Lou Cosso, a retired Wells Fargo Bank executive. aThese new directors are leaders in their industries and bring to our board a deep level of experience in business, banking and technology,a said Greiner.

Private Placement

Tri-Valley Bank also announced a Private Placement offering of up to 20,000,000 shares of common stock to accredited investors, as defined in Regulation D of the US Securities and Exchange Commission. The offering price is $0.35 per share.

aWe are conducting the Private Placement to increase our regulatory capital levels, to support growth and for general corporate purposes,a said Greiner. The minimum purchase per investor is 285,714 shares, or $100,000. Sales will be limited so that no single investor will own, either directly or indirectly, more than 9.99 percent of the number of shares outstanding, following this Private Placement, including shares held prior to this offering. The Private Placement is scheduled to end on September 30, 2011.

aWe want to maintain a diverse group of investors, and we want this bank to be community owned,a said Greiner. aWe would like to see local people have this opportunity, rather than a Wall Street investment banker.a

He added, aEvery member of our Board is making a financial commitment, through this stock offering, to the banka™s future. Each of us believes in putting our money where our mouth is.a

This release may contain forward-looking statements, such as, among others, statements about plans, expectations and goals concerning growth and improvement. Forward-looking statements are subject to risks and uncertainties. Such risks and uncertainties may include but are not necessarily limited to fluctuations in interest rates, inflation, government regulations and general economic conditions, including the real estate market in California and in the East Bay region on Northern California in particular and other factors beyond the Banka™s control. Such risks and uncertainties could cause results for subsequent interim periods or for the entire year to differ materially from those indicated. Readers should not place undue reliance on the forward-looking statements, which reflect managementa™s view only as of the date hereof. The Bank undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances.