SAN RAMON, Calif.--(Business Wire)--
Tri-Valley Bank (OTCBB:TRVB), today issued a statement to reassure
its investors and customers of its stability.
Over the last several months, reports and stories have appeared in
local and national media asserting that many of the nation's financial
institutions are facing problems with poor credit quality. These
reported problems stem in large part from the sub-prime mortgage
meltdown affecting many of those institutions. These same reports have
in some cases suggested that this exposure could result in bank
failures. As an example, in the last several days investor and the
public's confidence in the health of the banking system has been
shaken by news of the $32 billion IndyMac Bank being taken over by the
FDIC. Additionally public confidence has been further shaken by
witnessing the market value of two huge mortgage organizations, Fannie
Mae and Freddie Mac (both Government Sponsored Entities or GSE's),
falling precipitously following reports of significant write downs in
the value of their mortgage portfolios.
We want to reassure you that the Board of Directors, the Executive
Management team, and all of the employees of Tri-Valley Bank maintain
an unwavering commitment and dedication to continuing to operate the
Bank as a long-term, sustainable financial institution whose key
objectives are to:
-- serve our customers and help them prosper in both good and
difficult times,
-- serve the communities in which we operate and help them
flourish,
-- maintain the fundamental principles under which we established
our organization, implementing strong risk management
practices to ensure risk tolerance is managed to within
acceptable parameters for the benefit of customers and
shareholders alike.
We just issued our second quarter 2008 press release which speaks
well of our sustained and successful efforts at building momentum for
a long-term profitability infrastructure and a sound and safe business
model. These are tough times in our economy, however our conservative
approach to banking is helping us greatly minimize risks for all of
our constituents: investors, clients, employees and regulators alike.
Among others our strengths include the following:
-- Our asset quality remains strong. We have not engaged in nor
are we exposed to the sub-prime mortgage market. We have no
intention to take on any such exposure. We believe that our
exposure to the residential mortgage market and potential
losses is extremely limited.
-- Our focus has been and continues to be commercial banking. In
so doing we have avoided and will continue to avoid the
volatility and risks typically associated with other bank
offerings.
-- As a commercial bank, we could face risk of loss from some of
our customers who are facing difficult times, however. To
mitigate these potential risks, we have maintained very strong
underwriting standards, and have purposefully not compromised
credit quality in order to produce portfolio and asset growth.
-- We have also conducted an extensive evaluation of our loan
portfolio to identify any credit risks that could be embedded
in that portfolio. As a result of our review, we believe that
any credit risk exposure is limited, manageable, and well
supported by our loan loss reserves. Our review confirmed that
the quality of our loan portfolio is consistent with our
fundamental principles and practices.
-- Our ability to generate liquidity remains strong as well, as
evidenced by the fact that we have little in the way of
brokered deposits, totaling just 7% of total deposits.
-- A key measure of our stability is also very well demonstrated
by the strength of our capital ratios. The most conservative
of these, Total Capital to Risk Weighted Assets, has
consistently outperformed the most stringent of regulatory
mandates: we are nearly 50% above the minimum regulatory
standard for being considered a "well-capitalized"
institution. As a well capitalized organization, we are poised
to withstand the challenges presented to institutions in these
tumultuous times.
We will continue to manage Tri-Valley Bank in a safe and sound
manner for the long-term benefit of our shareholders, our clients and
the communities we serve. We look forward to continuing to earn your
business and wish to extend our gratitude for your continued support.
Who we are. 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
Glen C. Terry, President and CEO, 925-791-4343
Copyright Business Wire 2008
