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SAN RAMON, Calif.--([ BUSINESS WIRE ])--Tri-Valley Bank (OTCBB:TRVB) today announced unaudited earnings for the year ended December 31, 2011. Financial performance highlights include the following:

"The trends for 2011 were positive and reflect significant progress in reducing non-performing loans, increasing core deposits as well as capital. We have also successfully reduced reliance on borrowed funds and non-core deposits. The Bank positioned itself to successfully build on this strengthened infrastructure"

• Asset Growth: Assets grew during 2011 to $78 million, up from $70 million as of December 31, 2010. The growth was accompanied by a decline in borrowings from $9.5 million at year-end 2010 to $3.5 million at year-end 2011. Loans, net of allowance for loan losses, decreased to $48 million from $55 million at year-end 2010 and from $50 million at the end of the third quarter 2011.
• Deposit Growth: Total deposits grew to $67 million, up from $55 million at year-end 2010. The average cost of funds declined from $.79 in 2010 to $.63 in 2011.
• Asset Quality: Non-performing assets, including OREO, totaled $6.9 million at year-end 2010 and peaked at $9.1 million in April 2011. As a result of concentrated efforts by management, non-performing assets at year-end 2011 were reduced to $3.1 million. As of December 31, 2011, the bank had three loans on non-accrual for a total of $802,000, down from a peak of $7.5 million in May 2011. The ratio of the non-performing assets to capital and allowance for loan loss reserves declined from 90 percent at year-end 2010 to 34 percent at year-end 2011.

• Net Loss Improvement: The $763,000 net loss for the fourth quarter of 2011 and $1.9 million net loss for calendar 2011 reflects improvement over the $1.3 million net loss for the same quarter of 2010, and $3 million net loss for the calendar year 2010.
• Loan Loss Provision: Significant efforts made toward working out non-performing loans have resulted in a reduction in the loan loss provision from $1.9 million in 2010 to $140,000 for 2011. No reserve was required for the last three quarters of 2011.
• Tier 1 Leverage Ratio: The Tier 1 leverage ratio increased to 9.1 percent at year-end 2011 as compared to 6.7 percent at year-end 2010 due to the successful completion of the first tranche of the Private Placement.

aThe trends for 2011 were positive and reflect significant progress in reducing non-performing loans, increasing core deposits as well as capital. We have also successfully reduced reliance on borrowed funds and non-core deposits. The Bank positioned itself to successfully build on this strengthened infrastructure,asaid Arnold Grisham, chairman, president and CEO.

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 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 Grisham. 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 March 31, 2012.

He added, aEvery member of our Board is making 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.