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CHICO, Calif.--([ BUSINESS WIRE ])--Golden Valley Bank (OTCBB: GVYB), headquartered in Chico, California today reported its first quarter 2012 financial results.

First Quarter 2012 Highlights:

• Pretax income of $311,381, representing a 47.4% increase over the first quarter of 2011
• Assets up $18.9 million or 18.3% over the first quarter of 2011
• Deposits up $17.7 million or 20.5% over the first quarter of 2011
• Loans up $8.1 million or 11.9% over the first quarter of 2011

Mark Francis, Chief Executive Officer, commented, aWe are very pleased with our first quarter results. The 47.4% increase in year-over-year pretax earnings was driven by the 11.9% growth in loans funded by low cost core deposit growth. Net income after tax was $188,380 or 12.6% greater than the 2011 first quarter earnings. We sincerely appreciate the continued support of the citizens of Chico and the confidence shown in choosing Golden Valley for all of their banking needs.a

The Bankas first quarter annualized return on average assets (ROAA) improved from 0.82% in 2011 to 1.08% in 2012 on a pretax basis and the annualized return on average equity (ROAE) improved from 5.44% in the first quarter of 2011 to 7.45% in 2012 also on a pretax basis.

Asset quality continues to be excellent as only .69% of total assets are considered to be non-performing. By comparison, the industry average was 3.00% of total assets for the Bankas national peer group, based on data provided as of December 31, 2011 (the most recent data available). The company has set aside over $1.6 million in loan loss reserves to protect it from future economic uncertainties. Golden Valley continues to be a well capitalized bank and far exceeds minimum regulatory requirements.

Golden Valley Bank is a locally owned and operated commercial bank serving the needs of individuals and businesses in northern California. The Bank has a full service office in Chico, California and a Loan Production Office in Redding, California. For more information regarding the Bank please call at (530) 894-1000 or visit [ www.goldenvalleybank.com ].

Forward-Looking Statements

Statements concerning future performance, developments or events, expectations for growth and income forecasts, and any other guidance on future periods, constitute forward-looking statements that are subject to a number of risks and uncertainties. Actual results are pre-fiscal year-end audit and may differ materially from stated expectations. Specific factors include, but are not limited to, loan production, balance sheet management, expanded net interest margin, the ability to control costs and expenses, interest rate changes and financial policies of the United States government and general economic conditions. The Bank disclaims any obligation to update any such factors.