Tri-Valley Bank Announces Fourth Quarter 2012 Earnings

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

“We continue to make significant positive strides toward increased heath and attainment of sustainable profitability as indicated by the results of the fourth quarter and for the year of 2012.”

• Asset Growth: Total assets at December 31, 2012 were $97 million, a $3.3 million increase from $93.7 million at the end of the third quarter 2012 and an increase of $19.4 million over the $77.6 million in total assets at December 31, 2011.
• Loan Growth: Total net loans at December 31, 2012 were $63 million, an increase of $14.9 million over December 31, 2011 and an increase of $1.6 million over the third quarter of 2012.
• Loan Delinquencies: As of December 31, 2012, there was one loan more than 30 days past due totaling $118,000 which was also on non-accrual. Total loans on non-accrual amounted to $1.4 million, representing continued improvement over $1.5mm at the end of the third quarter 2012. All loans on non-accrual are now current.
• Deposit Growth: Total deposits as of December 31, 2012 were $87.1 million, up from $81.2 million at the end of the third quarter 2012 and up from $66.6 million a year ago at December 31, 2011. The growth year over year includes $5.2 million in non-interest bearing accounts and $20.3 million in core interest bearing accounts with a decline in non-core deposits of $5.0 million.
• Reduced Loan Loss Provision: The bank’s positive trend in loan loss provision requirements continued for the seventh consecutive quarter. Net of recoveries. charge-offs totaled $266,000 for the year of 2012. No additional provision was needed for the year ended December 31, 2012.
• Net Loss: Net loss for the fourth quarter of 2012 was $193,000 representing continued improvement over the net loss of $497,000 for the third quarter of 2012 and over the net loss of $763,000 for the fourth quarter of 2011. The net loss year to date for 2012 was $1,373,000, an improvement of $570,000 over the 2011 net loss of $1,943,000.
• Tier 1 Leverage Ratio: As of the quarter ending December 31, 2012 the Tier 1 leverage ratio was 10.2% an increase over 9.5% at the fourth quarter of 2011. The increase is due to the successful completion of both a private placement and rights offering for no par common stock during the year.

“We continue to make significant positive strides toward increased heath and attainment of sustainable profitability as indicated by the results of the fourth quarter and for the year of 2012.” said Arnold Grisham, CEO and chairman. “We have again increased our core deposits while reducing our non-core accounts. Resulting in improved client relationships and greater market share in the market areas we serve. The relocation of our Livermore office has been a success in gaining us greater exposure and improving our accessibility for both current and prospective clients”.

“Equally important, are management’s efforts to resolve the bank’s credit quality issues as is evident in the continued declining non-performing loan balances,” said Grisham. “Loan growth for 2012 is viewed as positive for both the bank, with the fierce competition for quality loans in our market, and for the economy as we see businesses increasingly re-entering the market. We remain optimistic about the future and we believe the recovery in the Tri-Valley economy will continue to outpace the national economy.”

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 Bank’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 management’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.

	Unaudited			Audited			Change 4Q12 to 4Q11					Unaudited			Change 4Q12 to 3Q12
Tri-Valley Bank	Year and Quarter Ending December 31, 2012			Year Ending December 31, 2011			Amount			%		Quarter Ending September 30, 2012			Amount			%
Assets:
Cash & Cash Equivalents		12,953			17,733			(4,780	)	-27	%		10,252			2,701		26	%
Securities & Correspondent Stock		18,416			8,656			9,760		113	%		19,389			(973	)	-5	%
Loans, net of fees		64,480			50,035			14,445		29	%		62,936			1,544		2	%
Allowance for Loan Losses		(1,516	)		(1,932	)		416		-22	%		(1,521	)		5		0	%
Other Assets		2,674			3,122			(448	)	-14	%		2,653			21		1	%
Total Assets	$	97,007		$	77,614		$	19,393		25	%	$	93,709		$	3,298		4	%
Liabilities and Stockholders' Equity
Total Deposits		87,117			66,603			20,514		31	%		81,181			5,936		7	%
Borrowings & Other Liabilities		158			3,681			(3,523	)	-96	%		2,676			(2,518	)	-94	%
Total Liabilities		87,275			70,284			16,991		24	%		83,857			3,418		4	%
								-								-
Stockholders' Equity:		9,732			7,330			2,402		33	%		9,852			(120	)	-1	%
Total Liabilities & Stockholders' Equity	$	97,007		$	77,614		$	19,393		25	%	$	93,709		$	3,298		4	%

Tri-Valley Bank	Unaudited Quarter Ending						Chg Fr. Prior Quarter					Unaudited Quarter Ending						Chg Fr. Prior Year Qtr					Unaudited Year to Date Ending			Audited Year to Date Ending			Chg Fr. Prior YTD
	Q412			Q312			Amount			%		Q412			Q411			Amount			%		December 31, 2012			December 31, 2011			Amount			%
Revenue, after Credit Provision
Total Interest Income	$	833		$	819		$	14		2	%	$	833		$	617		$	216		35	%	$	3,175		$	2,795		$	380		14	%
Total Interest Expense		89			117			(28	)	-24	%		89			105			(16	)	-15	%		405			447			(42	)	-9	%
Net Interest Income		744			702			42		6	%		744			512			232		45	%		2,770			2,348			422		18	%
Less: Provision for Loan Losses		-			(150	)		150		-100	%		-			-			-		-100	%		(150	)		140			(290	)	-207	%
Net Interest Income after Provision		744			852			(108	)	-13	%		744			512			232		45	%		2,920			2,208			712		32	%
Total Noninterest Income		46			(317	)		363		-115	%		46			(37	)		83		-224	%		(177	)		102			(279	)	-274	%
Total Revenue after Cr. Provision	$	790		$	535		$	255		48	%	$	790		$	475		$	315		66	%	$	2,743		$	2,310		$	433		19	%
Noninterest Expense:
Salaries and Benefits	$	551		$	585		$	(34	)	-6	%	$	551		$	595		$	(44	)	-7	%	$	2,319		$	2,166		$	153		7	%
Occupancy		100			137			(37	)	-27	%		100			191			(91	)	-48	%		496			587			(91	)	-16	%
DP/IT/Network*		81			84			(3	)	-4	%		81			97			(16	)	-16	%		323			353			(30	)	-8	%
Audit/Accounting/Legal/Professional Fees		94			80			14		18	%		94			88			6		7	%		359			423			(64	)	-15	%
Insurance/Regulatory		77			68			9		13	%		77			70			7		10	%		276			287			(11	)	-4	%
Other Expense		80			77			3		4	%		80			197			(117	)	-59	%		342			436			(94	)	-22	%
Total Noninterest Expense	$	983		$	1,031		$	(48	)	-5	%	$	983		$	1,238		$	(255	)	-21	%	$	4,115		$	4,252		$	(137	)	-3	%
Income Tax		1			1			-		-			1			1			-		-			1			1			-		-
Net Income (Loss)	$	(193	)	$	(497	)	$	303		-61	%	$	(193	)	$	(763	)	$	570		-75	%	$	(1,373	)	$	(1,943	)	$	570		-29	%
Basic Loss per Share*	$	(0.01	)	$	(0.02	)	$	0.01		-50	%	$	(0.01	)	$	(0.03	)	$	0.02		-67	%	$	(0.07	)	$	(0.10	)	$	0.03		-30	%
*Restated with shares outstanding post private placement and rights offering.