Tri-Valley Bank Announces Second Quarter 2017 Earnings and Reversal of Deferred Tax Asset Valuation Allowance

SAN RAMON, Calif.--(BUSINESS WIRE)--Tri-Valley Bank (OTC:TRVB) today announced record unaudited year-to-date pre-tax net income of $621,000 for the first six months ended June 30, 2017 and record after tax net income of $3,303,000. Financial performance highlights include the following:

• Net Income: Year-to-date pre-tax net income at June 30, 2017 was $621,000, an improvement of $384,000 compared to year-to-date pre-tax net income of $237,000 at June 30, 2016. Year-to-date after tax net income for the six months ending June 30, 2017 was $3,303,000 compared to year-to-date after tax net income of $237,000 for the six months ending June 30, 2016. 2017 after tax net income includes a net tax benefit of $2,682,000 relating to the reversal of the remaining deferred tax asset valuation allowance less the estimated tax expense for 2017 earnings.
• Loans: Total loans as of June 30, 2017 reached a record $121.2 million, an annual increase of 20%, or $20.5 million compared to June 30, 2016, and a quarterly increase of $2.4 million over total loans at March 31, 2017.
• Deposits: Total deposits as of June 30, 2017 reached a record $127.6 million, an increase of 18%, or $19.6 million, compared to June 30, 2016, and a quarterly increase of $6.1 million over total deposits at March 31, 2017.
• Loan Delinquencies: As of June 30, 2017, there were no loans past due 30+ days, and no loans on non-accrual.
• The reversal of the remaining deferred tax asset valuation allowance in the period increases book value per share to $0.51 at June 30, 2017 from $0.43 at December 31, 2016. Total equity was $20.0 million at June 30, 2017, a $3.2 million increase from March 31, 2017.

“The Bank’s record loan and deposit balances, balance sheet improvement and increase in earnings show the continued financial strengthening of our company and sets the stage for continued growth,” said Arnold Grisham, Chairman, President and CEO. “We are pleased to service the markets of Livermore, and the 680 and 880 East Bay corridors, and are proud to provide banking services to a full range of professionals and business owners, non-profit organizations and property management companies.”

Tri-Valley Bank	Unaudited			Unaudited			Change					Unaudited			Change
Balance Sheet (rounded to thousands)	Quarter Ending			Quarter Ending			1Q17 to 2Q17					Quarter Ending			2Q16 to 2Q17
	June 30, 2017			March 31, 2017			Amount			%		June 30, 2016			Amount			%
Assets:
Cash & Cash Equivalents		13,041			8,886			4,154		47	%		11,960			1,081		9	%
Securities & Correspondent Stock		6,839			6,861			(21	)	0	%		7,470			(631	)	-8	%
Loans, net of fees		121,230			118,854			2,376		2	%		100,768			20,462		20	%
Allowance for Loan Losses		(1,933	)		(1,921	)		(12	)	1	%		(1,559	)		(374	)	24	%
Deferred Tax and Other Assets		8,536			5,708			2,829		50	%		2,508			6,028		240	%
Total Assets	$	147,713		$	138,388		$	9,325		7	%	$	121,148		$	26,565		22	%
Liabilities and Stockholders' Equity
Total Deposits		127,605			121,467			6,139		5	%		108,044			19,561		18	%
Borrowings & Other Liabilities		103			71			31		44	%		127			(24	)	-19	%
Total Liabilities		127,708			121,538			6,170		5	%		108,171			19,537		18	%
Stockholders' Equity:		20,005			16,850			3,156		19	%		12,977			7,028		54	%
Total Liabilities & Stockholders' Equity	$	147,713		$	138,388		$	9,325		7	%	$	121,148		$	26,565		22	%

Tri-Valley Bank	Unaudited										Unaudited
Income Statement (rounded to thousands)	Quarter Ending					Chg Fr. Prior Quarter					Year to Date Ending					Chg Fr. Prior YTD
	Q2 17			Q1 17		Amount			%		Q2 17			Q2 16		Amount			%
Total Interest Income	$	1,365		$	1,425	$	(60	)	-4	%	$	2,789		$	2,239	$	550		25	%
Less: Total Interest Expense		109			94		15		16	%		202			155		47		30	%
Net Interest Income		1,256			1,331		(75	)	-6	%		2,587			2,084		503		24	%
Less: Provision for Loan Losses		-			-		-		0	%		-			-		-		0	%
Net Interest Income after Provision		1,256			1,331		(75	)	-6	%		2,587			2,084		503		24	%
Total Noninterest Income		36			34		2		7	%		70			71		(1	)	-2	%
Total Revenue after Cr. Provision		1,292			1,365		(73	)	-5	%		2,657			2,155		502		23	%
Total Noninterest Expense		1,021			1,015		6		1	%		2,036			1,918		118		6	%
Income Before Tax		271			350		(79	)	-23	%		621			237		384		162	%
Income Tax		(2,793	)		111		(2,904	)	-2618	%		(2,682	)		-		(2,682	)	N/M
Net Income	$	3,064		$	239	$	2,825		1181	%	$	3,303		$	237	$	3,066		1294	%
Basic Income per Share	$	0.078		$	0.006	$	0.072		1164	%	$	0.085		$	0.006	$	0.079		1310	%

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 of 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.