Tri-Valley Bank Announces Third Quarter 2011 Earnings

SAN RAMON, Calif.--([ BUSINESS WIRE ])--Tri-Valley Bank (OTCBB:TRVB) today announced unaudited earnings for the third quarter of 2011. Financial performance highlights for the quarter ending September 30, 2011, include the following:

"Every member of our Board has made a financial commitment, through this stock offering, to the bankas future. Each of us believes in this bank and this community."

Assets grew during the third quarter of 2011 to $82 million, up from $70 million at year-end 2010 and up from $80 million at the end of the second quarter 2011. With the growth from the first three quarters of 2011, the bankas assets have rebounded to the $82 million in assets reported in the second quarter of 2010.

With a focus on growing core deposits, the total deposits grew to $66 million, up from $55 million at year-end 2010 and slightly down from $68 million at the end of the second quarter 2011.

Loans, net of allowance for loan losses, decreased to $50 million from $55 million at year-end 2010 and from $59 million at the end of the third quarter 2010 but remained flat over the second quarter of 2011.

The $438,000 net loss for the third quarter of 2011 reflects improvement over the $652,000 net loss for the third quarter 2010. As does the $1.2 million net loss year to date for 2011 reflect improvement over the $1.6 million net loss for the same period of 2010.

Significant efforts made toward working out non-performing loans has resulted in a reduction in the loan loss provision from $576,000 for the third quarter of 2010 to $0 for the third quarter of 2011 and from $954,000 for the first nine months of 2010 to $140,000 for the same period of 2011. Non-performing assets declined from $8.7 million in the previous quarter of 2011 and from $6.9 million for the same period of 2010 to $6.2 million in the current quarter. The ratio of the non-performing loans to capital and allowance for loan loss reserves declined from 131% in the second quarter of 2011 to 60% in the third quarter of 2011.
The Tier 1 leverage ratio increased to 9.7% as compared 6.7% at year end 2010 and 5.7% at June 30, 2011, due to the successful completion of the first tranche of the Private Placement Memorandum.

aThe trends for the past three quarters continue to be positive and reflect the efforts made by the Board and Management to address loan issues quickly and efficiently, focus on growth in core deposits and position the bank for the future,asaid David Greiner, president and chief executive officer.

aWe believe our ability to raise capital is an indication of the faith the community has in both the Bank and the industry. We are looking forward to the future,a said Arnold Grisham, Chairman of the Board.

	Audited		Un-Audited				Q311 vs. Q410					Q311 vs. Q211
Tri-Valley Bank	Q410		Q211		Q311		Amount			%		Amount			%

Assets:
Cash & Cash Equivalents		7,466	$	20,135	$	21,861		14,395		193	%		1,726		8	%
Securities & Correspondent Stock		5,519		6,429		8,446		2,927		53	%		2,017		24	%
Loans, net		54,692		49,737		49,810		(4,882	)	-9	%		73			%
Other Assets		2,675		3,876		1,592		(1,083	)	-40	%		(2,284	)	-143	%
Total Assets	$	70,352	$	80,177	$	81,709	$	11,357		16	%	$	1,532		2	%

Liabilities and Stockholders' Equity
Total Deposits		55,424		68,074		66,030		10,606		19	%		(2,044	)	-3	%
Borrowings & Other Liabilities		9,733		7,654		7,650		(2,083	)	-21	%		(4	)		%
Total Liabilities		65,157		75,728		73,680		8,523		13	%		(2,048	)	-3	%

Stockholders' Equity:		5,195		4,449		8,029		2,834		55	%		3,580		45	%
Total Liabilities & Stockholders' Equity	$	70,352	$	80,177	$	81,709	$	11,357		16	%	$	1,532		2	%

Tri-Valley Bank	Unaudited			Audited								Unaudited			Audited
	Prior Year Quarter						Chg Fr. Prior Year					Year to Date						Chg Fr. Prior Qtr
	Q311			Q310			Amount			%		Q311			Q310			Amount			%
Revenue, after Credit Provision
Total Interest Income	$	685		$	876		$	(191	)	-22	%	$	2,146		$	2,798		$	(652	)	-23	%
Total Interest Expense		115			134			(19	)	-14	%		342			541			(199	)	-37	%
Net Interest Income		570			742			(172	)	-23	%		1,804			2,257			(453	)	-20	%
Less: Provision for Loan Losses		-			576			(576	)	-100	%		140			954			(814	)	-85	%
Net Interest Income after Provision		570			166			404		243	%		1,664			1,303			361		28	%
Total Noninterest Income		64			226			(162	)	-72	%		171			308			(137	)	-44	%
Total Revenue after Cr. Provision	$	634		$	392		$	242		62	%	$	1,835		$	1,611		$	224		14	%

Noninterest Expense:
Compensation, excl. FASB91 and stock options	$	607		$	472		$	135		29	%	$	1,695		$	1,541		$	154		10	%
FASB91 cost deferrals		(76	)		(32	)		(44	)	138	%		(136	)		(127	)		(9	)	7	%
Occupancy		132			156			(24	)	-15	%		395			471			(76	)	-16	%
Insurance/Regulatory		67			87			(20	)	-23	%		396			297			99		33	%
Other Expense		336			338			(2	)	-1	%		654			950			(296	)	-31	%
Total Noninterest Expense, excl. stock options		1,066			1,021			45		4	%		3,004			3,132			(128	)	-4	%
Stock Option Expense		6			23			(17	)	-74	%		11			82			(71	)	-87	%
Total Noninterest Expense	$	1,072		$	1,044		$	28		3	%	$	3,015		$	3,214		$	(199	)	-6	%

Income Tax		-			-			-		-			1			1			-		-
Net Income (Loss)	$	(438	)	$	(652	)	$	214		-33	%	$	(1,179	)	$	(1,604	)	$	423		-26	%

Inc. Bef. Credit Provision - Qtr	$	(438	)	$	(76	)	$	(362	)	476	%	$	(1,039	)	$	(650	)	$	(389	)	-60	%

Private Placement

Tri-Valley Bank previously 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. The placement is progressing as planned with the first tranche of $4,000,000 closing on September 8, 2011.

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 $50,000. 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 close on December 31, 2011.

He added, aEvery member of our Board has made a financial commitment, through this stock offering, to the bankas future. Each of us believes in this bank and this community.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 Bankas 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 managementas 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.

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Tri-Valley Bank Announces Third Quarter 2011 Earnings