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Tri-Valley Bank Announces Third Quarter 2012 Earnings

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SAN RAMON, Calif.--(BUSINESS WIRE)--

Tri-Valley Bank (OTCBB: TRVB) today announced unaudited earnings for the third quarter ended Sept. 30, 2012. Financial performance highlights include the following:

  • Asset Growth: Total assets at the end of the third quarter were $93.7 million, a decline from $103.4 million in the second quarter which was expected by the bank due to the scheduled third-quarter outflow of a large, short-term deposit that had been made in the second quarter. The bank's second quarter earnings release reported this anticipated third-quarter fall back in assets. Total third quarter 2012 assets of $93.7 million were up significantly from third quarter 2011 total assets of $81.7 million.
  • Loan Delinquencies: As of September 30, 2012, there were two loans more than 30 days past due totaling $315,000. Both loans are now current. Total loans on non-accrual amounted to $1.5 million, a favorable comparison to $5.5 million at Sept. 30, 2011. All loans on non-accrual are now current.
  • Deposit Growth: Total deposits at the end of the third quarter were $81.1 million, down from $91.9 million at the end of the second quarter and up from $66.0 million a year ago at the end of the third quarter 2011. This fluctuation, as with asset growth, was due to the expected withdrawal during the third quarter of a large, short-term deposit made during the second quarter.
  • Reduced Loan Loss Provision: The bank's positive trend in loan loss provision requirements continued for the third consecutive quarter, despite a small net charge-off of $12,000. No additional provision was needed for the quarter ended Sept. 30, 2012.
  • Net Loss: Net loss for the third quarter was $497,000 largely as the result of a $345,000 write-down on our only OREO property as we marked it to market based on a recent appraisal. The net loss for the second quarter of 2012 was $279,000.
  • Tier 1 Leverage Ratio: During the third quarter the Tier 1 leverage ratio decreased to 9.5 percent from 10.5 percent the previous quarter primarily due to the inflated average assets resulting from the large deposit fluctuation mentioned above.

“We have had several positive indicators during this quarter,” said Arnold Grisham, CEO and chairman. “We have had a significant increase in demand deposits this quarter. Our checking account deposits totaled $23.1 million in the third quarter of 2012 compared to $19.2 million in the second quarter of 2012. We are experiencing a combination of new customer deposit business and an increasing “wallet share” of deposit business from existing customers.

“Equally important, the bank's management's efforts to resolve the bank's credit quality issues are evident in the declining non-performing loan balances,” said Grisham. “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.

                                                                     
              Change           Change           Change
Unaudited Audited 3Q12 to 4Q11 Unaudited 3Q12 to 2Q12 Unaudited 3Q12 to 3Q11
Tri-Valley Bank Quarter Ending Year Ending Amount     %

Quarter Ending

Amount     % Quarter Ending Amount     %
          September 30, 2012     December 31, 2011             June 30, 2012             September 30, 2011            
Assets:
Cash & Cash Equivalents 10,252 17,733 (7,481 ) -42 % 26,413 (16,161 ) -61 % 21,861 (11,609 ) -53 %
Securities & Correspondent Stock 19,389 8,656 10,733 124 % 12,429 6,960 56 % 8,446 10,943 130 %
Loans, net of fees 62,936 50,035 12,901 26 % 63,324 (388 ) -1 % 52,121 10,815 21 %
Allowance for Loan Losses (1,521 ) (1,932 ) 411 -21 % (1,683 ) 162 -10 % (2,311 ) 790 -34 %
Other Assets   2,653         3,122         (469 ) -15 %   3,003         (350 ) -12 %   1,592         1,061   67 %
Total Assets $ 93,709       $ 77,614       $ 16,095   21 % $ 103,486       $ (9,777 ) -9 % $ 81,709       $ 12,000   15 %
 
Liabilities and Stockholders' Equity
Total Deposits 81,181 66,603 14,578 22 % 91,917 (10,736 ) -12 % 66,030 15,151 23 %
Borrowings & Other Liabilities   2,676         3,681         (1,005 ) -27 %   2,631         45   2 %   7,650         (4,974 ) -65 %
Total Liabilities 83,857 70,284 13,573 19 % 94,548 (10,691 ) -11 % 73,680 10,177 14 %
- - -
Stockholders' Equity:   9,852         7,330         2,522   34 %   8,938         914   10 %   8,029         1,823   23 %
Total Liabilities & Stockholders' Equity $ 93,709       $ 77,614       $ 16,095   21 % $ 103,486       $ (9,777 ) -9 % $ 81,709       $ 12,000   15 %
 
                                                                   
  Tri-Valley Bank     Unaudited             Unaudited             Unaudited      

Quarter Ending

Chg Fr. Prior Quarter

Quarter Ending

Chg Fr. Prior Year Qtr

Year to Date Ending

Chg Fr. Prior YTD

Q312

 

Q212

Amount

%

Q312

 

Q311

Amount

%

Q312

 

Q311

Amount

%

  Revenue, after Credit Provision                                                                
Total Interest Income $ 819 $ 793 $ 26 3% $ 819 $ 680 $ 139 20% $ 2,342 $ 2,146 $ 196 9%
Total Interest Expense 117   99     18 18% 117   115     2 2% 316   342     (26) -8%
Net Interest Income 702 694 8 1% 702 565 137 24% 2,026 1,804 222 12%
Less: Provision for Loan Losses (150) - (150) -100% (150) - (150) -100% (150) 140 (290) -207%
Net Interest Income after Provision 852 694 158 23% 852 565 287 51% 2,176 1,664 512 31%
Total Noninterest Income (317)   53     (370) -698% (317)   69     (386) -559% (223)   171     (394) -230%
Total Revenue after Cr. Provision $ 535 $ 747 $ (212) -28% $ 535 $ 634 $ (99) -16% $ 1,953 $ 1,835 $ 118 6%
 
Noninterest Expense:
Salaries and Benefits $ 585 $ 575 $ 10 2% $ 585 $ 572 $ 13 2% $ 1,768 $ 1,571 $ 197 13%
Occupancy 137 125 12 10% 137 132 5 4% 396 395 $ 1 0%
DP/IT/Network* 84 66 18 27% 84 193 (109) -56% 242 256 (153) -39%
Audit/Accounting/Legal/Professional Fees* 80 100 (20) -20% 80 15 65 433% 266 336 10 4%
Insurance/Regulatory 68 65 3 5% 68 67 1 1% 199 396 (137) -41%
Other Expense 77   94     (17) -18% 77   92     (15) -16% 260   59     (136) -34%
Total Noninterest Expense $ 1,031 $ 1,025 $ 6 1% $ 1,031 $ 1,071 $ (40) -4% $ 3,131 $ 3,013 $ 3,072 5207%
 
Income Tax 1   1     -   - 1   1     -   - 1   1     -   -
Net Income (Loss) $ (497)   $ (279)     $ (218)   78% $ (497)   $ (438)     $ (59)   13% $ (1,179)   $ (1,179)     $ (2,954)   -295400%
 
Basic Loss per Share** $ (0.02) $ (0.02) $ - 0% $ (0.02) $ (0.03) $ 0.01 -33% $ (0.07) $ (0.07) $ - 0%
 
* Approximately $75,000 in expense were reclassified from Professional Fees to Network expenses in 3Q211.
**Restated with shares outstanding post private placement

Tri-Valley Bank
Arnold T. Grisham, 925-791-4365
Chairman, President & CEO

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