Tri-Valley Bank Announces Third Quarter 2008 Results

SAN RAMON, Calif.--(Business Wire)--
Tri-Valley Bank (OTCBB:TRVB), today announced its financial
results for the quarter ended September 30, 2008.

Total assets increased to $97.6 million as of September 30, 2008,
an increase of $12.2 million or 14% over the same period in 2007.
Notwithstanding a tightening of credit in the market place, the Bank's
total loans reached $80 million for the period, an increase of 10%
over 3rd quarter 2007.

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Change
Audited Q308 vs. Q307
Q307 Q407 Q108 Q208 Q308 Amount %
------- ------- ------- ------- -------
(A) (B) (C) (D) (E) (F) (G)
Assets:
--------------
Cash & Cash
Equivalents
Equivalents $5,425 $1,018 $10,172 $6,899 $7,606 2,181 40.2%
Securities &
Correspondent
Stock 6,062 6,734 7,449 8,905 8,710 2,648 43.7%
Loans, net 72,517 76,838 73,602 80,009 79,963 7,446 10.3%
Other Assets 1,387 1,378 1,233 1,279 1,308 (79) -5.7%
--------------------------------------- -------
Total Assets $85,390 $85,967 $92,456 $97,092 $97,586 $12,196 14.3%
======================================= =======
Liabilities
and
Stockholders'
Equity
--------------
Total Deposits 67,875 63,702 74,922 79,890 80,679 12,804 18.9%
Borrowings &
other
liabilities 3,427 8,186 3,367 3,380 3,376 (51) -1.5%
--------------------------------------- -------
Total
Liabilities 71,301 71,888 78,289 83,270 84,055 12,753 17.9%
Stockholders'
Equity:
--------------
Common Stock &
Paid in
Capital 19,459 19,694 19,929 20,164 20,332 872 4.5%
Accumulated
Deficit (5,349) (5,558) (5,822) (6,239) (6,690) (1,340) 25.1%
Accum. Other
comprehensive
gain(loss) (21) (57) 59 (104) (111) (90) 418.9%
--------------------------------------- -------
Stockholders'
Equity: 14,089 14,080 14,167 13,822 13,531 (558) -4.0%
--------------------------------------- -------
Total
Liabilities &
Stockholders'
Equity $85,390 $85,967 $92,456 $97,092 $97,586 $12,196 14.3%
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For the period the Bank recorded a net loss of $1.1 million, an
increase of 10% over the similar period in 2007. The loss increased
because of growth in non-interest expenses and a deterioration in
credit quality.

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Chg. From Prior
Year
Y-T-D Y-T-D YTD
---------------
Q307 Q308 Amount %
---------- ----------
(A) (B) (C) (D)
Revenue after Credit Provision
Total Interest Income 4,402.4 4,643.9 241.5 5.5%
Total Interest Expense 1,689.3 1,601.7 (87.6) -5.2%
--------------------- --------
Net Interest Income 2,713.1 3,042.2 329.1 12.1%
Provision for Loan Losses 253.4 430.8 177.4 70.0%
--------------------- --------
Net Interest Income after
Provision 2,459.8 2,611.4 151.7 6.2%
Non-interest Income 54.4 162.4 108.1 198.8%
--------------------- --------
Total Revenue after Credit
Provision 2,514.1 2,773.8 259.7 10.3%
Noninterest Expense:
Compensation, excl. FASB91
and stock options 1,671.9 1,925.4 253.5 15.2%
FASB91 cost deferrals (39.4) 45.6 85.0 nmv
Occupancy 447.0 495.8 48.7 10.9%
Other Expense 762.6 800.2 37.6 4.9%
--------------------- --------
Total Noninterest Expense,
excl. stock options 2,842.1 3,266.9 424.9 15.0%
Stock Option Expense 695.9 637.5 (58.4) -8.4%
--------------------- --------
Total Noninterest Expense 3,537.9 3,904.4 366.5 10.4%
Income Before Income Tax
Expense (1,023.8) (1,130.6) (106.8) 10.4%
Income Tax - 0.8 0.8 nmv
--------------------- --------
Net Income (Loss) $(1,023.8) $(1,131.4) $(107.6) 10.5%
===================== ========
Net Inc. Bef. Stock Options $ (327.9) $ (493.9) (166.0) 50.6%

Chg. From Prior
Year
QTR
----------------
Q307 Q308 Amount %
--------- ---------
(E) (F) ( G) (H)
Revenue after Credit Provision
Total Interest Income 1,623.1 1,524.9 (98.3) -6.1%
Total Interest Expense 628.4 464.1 (164.3) -26.1%
------------------- --------
Net Interest Income 994.7 1,060.8 66.1 6.6%
Provision for Loan Losses 104.8 269.1 164.3 156.7%
------------------- --------
Net Interest Income after
Provision 889.9 791.7 (98.2) -11.0%
Non-interest Income 31.3 29.9 (1.4) -4.4%
------------------- --------
Total Revenue after Credit
Provision 921.2 821.6 (99.6) -10.8%
Noninterest Expense:
Compensation, excl. FASB91
and stock options 579.6 654.7 75.1 13.0%
FASB91 cost deferrals (20.7) (17.8) 2.8 nmv
Occupancy 162.3 166.0 3.6 2.2%
Other Expense 207.3 302.3 95.0 45.8%
------------------- --------
Total Noninterest Expense, excl.
stock options 928.5 1,105.1 176.6 19.0%
Stock Option Expense 227.6 167.5 (60.0) -26.4%
------------------- --------
Total Noninterest Expense 1,156.1 1,272.7 116.6 10.1%
Income Before Income Tax Expense (234.9) (451.1) (216.2) 92.0%
Income Tax - - - nmv
------------------- --------
Net Income (Loss) $ (234.9) $ (451.1) $(216.2) 92.0%
=================== ========
Net Inc. Bef. Stock Options $ (7.3) $ (283.5) (276.2) 3764.7%
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"While the financial markets have created economic uncertainty our
3rd quarter results indicate a continued improvement in market share.
Our focus remains centered in core deposit growth, credit quality and
superior customer service. All of which create the cornerstones which
will drive shareholder value and earnings growth," said David P.
Greiner, President and CEO.

"The Bank's asset quality reflects the local economy," said
President Greiner, "We increased our loan loss reserve anticipating a
slower economy in our market and we continue to closely monitor the
health of our loan portfolio".

Tri-Valley Bank is headquartered in San Ramon and maintains an
office in Livermore. The Bank's principal focus is to provide premier
financial services to individuals, small and middle market commercial
businesses, as well as executives and professionals located in its
market communities.

Visit Tri-Valley Bank's website at: www.trivalleybank.com.

Tri-Valley Bank
David P. Greiner, 925-791-4343
President and CEO

Copyright Business Wire 2008