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SAN RAMON, Calif.--([ BUSINESS WIRE ])--Tri-Valley Bank (OTCBB:TRVB) today announced unaudited earnings for the first quarter ended March 31, 2012. Financial performance highlights include the following:

"We are conducting the Private Placement to increase our core capital levels, to support the growth needed to achieve our objectives"

• Asset Growth: Assets grew during the first quarter of 2012 to $82 million, up from $78 million as of December 31, 2011, and up from $72 million in first quarter of 2011. A $4 million increase in deposit balances since 2011 year-end are a key component of this growth. Loans grew by $7 million over the same period.

• Loan Delinquencies: As of March 31, 2012, the bank had no loans delinquent over 30 days, five loans on non-accrual for a total of $1.9 million and one OREO property with a market value of $2.3 million. All five loans on non-accrual are current. At the end of the fourth quarter 2011, December 31, 2011, the bank had no loan delinquencies over 30 days; three loans on non-accrual for a total of $802,000 and the same OREO property at a market value of $2.3 million.
• Deposit Growth: Total deposits grew to $70 million, up from $66 million at year-end 2011, and up from $58 million at the end of the first quarter of 2011. The largest segment of deposit growth during this period occurred in money market accounts, which comprised $2.5 million of the $5 million in growth.

• Net Loss Improvement: A net loss of $404,000 for the first quarter of 2012 reflects significant improvement over the $763,000 net loss for the fourth quarter of 2011. The improvement was due to improved asset quality and earning asset growth, as well as reduced non-interest expenses and cost of funds. The average cost of funds decreased from $0.63 at year-end 2011 to $0.56 as of March 31, 2012.
• Reduced Loan Loss Provision: Significant efforts in managing the bankas loan portfolio have resulted in a continued reduction in the required loan loss provision. Non-performing loans totaled $1.9 million as of March 31, 2012 down from $8.3 million on April 30, 2011. No provision was required for the first quarter of 2012 while $140,000 was required for the first quarter 2011. No loss provision was required for the last three quarters of 2011.
• Tier 1 Leverage Ratio: The Tier 1 leverage ratio increased from 9.1 percent at year-end 2011 to 9.2 percent as of the first quarter of 2012 due to continued success in raising capital under the Private Placement Memorandum. In addition to the $4 million raised in the first tranche of the Private Placement Memorandum in 2011, the bank has raised an additional $1.3 million under the second tranche, as of the date of this release.

aThe first quarter of 2012 confirms board and management commitment to continuing progress begun in 2011,a said Arnold Grisham, chairman, president and CEO. aThe first quarter of 2012 also reflects positive trends in income-generating, performing assets, core deposit growth and increased capital, as well as reductions in cost of funds and non-interest expenses. The bank is positioned to make major steps toward accomplishing its goal to become the premier community bank serving the East Bay,ahe said.

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 and the first tranche of $4,000,000 closed on September 8, 2011.

aWe are conducting the Private Placement to increase our core capital levels, to support the growth needed to achieve our objectives,a said Grisham. The minimum purchase per investor is $50,000. Sales will be limited such that no single investor will own, either directly or indirectly, more than 9.99 percent of the shares outstanding, following this Private Placement, including shares outstanding prior to this offering. The Private Placement is scheduled to close on June 30, 2012.

aEvery member of our board and management believes we can be successful in this environment as a result of the commitment from our customers, our staff and our community.asaid Grisham.

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.