Published: July 29, 2009

Tri-Valley Bank Announces 2Q Results

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SAN RAMON, Calif. - (BUSINESS WIRE) - Tri-Valley Bank (OTCBB:TRVB) announced today a net loss for the second quarter of $439.4M or $0.86 per share. The results reflect an additional provision for loan losses, $400.0M, due to the remargining of specific assets. Real estate values, in certain markets, reached new lows necessitating a readjustment of specific loan balances in order to maintain parity with current valuations. The net operating loss before provision continues to show improvement through lower non-interest expenses and a continued decrease in interest expense.

($000's)	Q108	Q208	Q308	Q408	Q109	Q209

Net Operating Loss Before Provision	$263.7	$238.6	$262.0	$206.1	$163.2	$39.4

Provision	0	$178.1	$1,297.2	$825.0	0	$400.0

Net Operating Loss	$263.7	$416.7	$1,559.2	$1,031.1	$163.2	$439.4

Non-Interest Expense/ Average Assets	5.85%	5.55%	5.07%	5.00%	4.42%	3.60%

COF	3.24%	2.64%	2.23%	1.86%	1.68%	1.64%

Asset growth, although modest, reached $97.3 millions at quarter end. Growth has been driven by an increase in deposits, particularly by growth in non-interest bearing deposits. Improving the deposit mix has been an essential component, in the continued growth of key measurement ratios.

($000's)	Q108	Q208	Q308	Q408	Q109	Q209

Assets	$92.4	$97.0	$96.3	$93.7	$94.9	$97.3

Non-Interest Bearing Deposits	$9.8	$12.2	$10.3	$11.5	$10.4	$13.9

Total Deposits	$74.9	$79.9	$80.7	$69.4	$76.2	$81.1

Non-Interest Bearing Total Deposits	13.1%	15.3%	12.8%	16.6%	13.6%	17.1%

Liquidity	16.9%	10.2%	10.6%	3.5%	8.2%	12.9%

Loan outstandings are being managed to year-end levels, as part of a strategy to boost liquidity and maintain higher capital levels. As non-performers have risen the provision has been adjusted to keep pace. The steady quarter by quarter increase in NPL's is reflective of the global economic recession and its affect on the local real estate markets.

($000's)	Q108	Q208	Q308	Q408	Q109	Q209

Net Loans Outstanding	$73,602	$80,009	$78,854	$81,263	$77,009	$75,013

Non-Performing Loans	$161	$418	$2,565	$2,398	$3,602	$2,225

Restructured Performing Loans	0	0	0	0	0	$2,962

Total Non-Performing Loans	$161	$418	$2,565	$2,398	$3,602	$5,187

($000's)	Q108	Q208	Q308	Q408	Q109	Q209

NPL's / Loans Outstanding	0.2%	.5%	3.2%	3.0%	4.7%	6.9%

Allowance for Loan Losses	$.9	$1.0	$1.4	$1.8	$1.8	$1.8

ALLL % of Total Loans	1.22%	1.25%	1.77%	2.21%	2.33%	2.41%

" Credit quality remains our number one concern," said David P. Greiner, President and CEO. "We have 271 performing loans and 5 non-accrual credits. However, those 5 credits represent 6.9% of the net portfolio and have significantly impacted our otherwise fine performance in piloting the Bank toward profitability. Our core beliefs remain unchanged. We are continuing to focus on relationship deposit growth, credit quality and superior customer service. Those are the cornerstones of which we will continue to build this franchise."

	Audited						Q209 vs. Q408				Q209 vs. Q109						Q209 vs. Q208
(000's)	Q408		Q109		Q209		Amount		%		Amount		%		Q208		Amount		%
	(A)		(B)		(C)		(D)		(E)		(F)		(G)		(H)		(I)		(J)
Assets:
Cash & Cash Equivalents		2,462		5,413		9,338	6,876		279	%	3,925		73	%		6,899	2,439		35	%
Securities & Correspondent Stock		8,874		11,091		11,899	3,025		34	%	808		7	%		8,905	2,994		34	%
Loans, net		81,263		77,009		75,013	(6,250	)	-8	%	(1,995	)	-3	%		80,009	(4,996	)	-6	%
Other Assets		1,179		1,417		1,023	(156	)	-13	%	(394	)	-28	%		1,278	(255	)	-20	%
Total Assets	$	93,778	$	94,930	$	97,273	3,496		4	%	2,343		2	%	$	97,092	182		0	%

Liabilities and Stockholders' Equity
Total Deposits		69,387		76,215		81,125	11,738		17	%	4,910		6	%		79,890	1,235		2	%
Borrowings & Other Liabilities		12,817		7,329		5,364	(7,454	)	-58	%	(1,965	)	-27	%		3,380	1,984		59	%
Total Liabilities		82,205		83,544		86,489	4,284		5	%	2,945		4	%		83,270	3,219		4	%

Stockholders' Equity:		11,573		11,385		10,784	(789	)	-7	%	(601	)	-5	%		13,822	(3,037	)	-22	%
Total Liabilities & Stockholders' Equity	$	93,778	$	94,929	$	97,273	3,496		4	%	2,344		2	%	$	97,092	182		0	%

	Year-to-Date						Chg Fr. Prior Year					Quarter						Chg Fr. Prior Year
(000's)	Q208			Q209			Amount			%		Q208			Q209			Amount			%
	(A)			(B)			(C)			(D)		(E)			(F)			(G)			(H)
Revenue, after Credit Provision
Total Interest Income		3,018			2,345			(673	)	-22	%		1,451			1,155			(296	)	-20	%
Total Interest Expense		1,138			692			(446	)	-39	%		531			346			(185	)	-35	%
Net Interest Income		1,880			1,653			(227	)	-12	%		921			810			(111	)	-12	%
Provision for Loan Losses		162			400			238		147	%		168			400			232		139	%
Net Interest Income after Provision		1,718			1,253			(466	)	-27	%		753			410			(343	)	-46	%
Total Noninterest Income		132			87			(45	)	-34	%		93			34			(59	)	-63	%
Total Revenue after Cr. Provision		1,851			1,340			(511	)	-28	%		846			444			(402	)	-48	%

Noninterest Expense:
Compensation, excl. FASB91 and stock options		1,271			1,162			(109	)	-9	%		629			563			(67	)	-11	%
FASB91 cost deferrals		(38	)		(47	)		(9	)	24	%		(60	)		(20	)		40		-67	%
Occupancy		330			354			24		7	%		171			176			5		3	%
Insurance/Regulatory		45			104			59		131	%		23			40			17		73	%
Other Expense		453			459			6		1	%		264			243			(22	)	-8	%
Total Noninterest Expense, excl. stock options		2,060			2,032			(29	)	-1	%		1,027			1,002			(26	)	-3	%
Stock Option Expense		470			(91	)		(561	)	-119	%		235			(119	)		(354	)	-151	%
Total Noninterest Expense		2,530			1,941			(589	)	-23	%		1,262			882			(380	)	-30	%

Income Before Income Tax Expense		(679	)		(601	)		78		-11	%		(416	)		(438	)		(22	)	5	%
Income Tax		1			1			-		0	%		-			1			1
Net Income (Loss)	$	(680	)	$	(602	)	$	78		-11	%	$	(416	)	$	(439	)	$	(23	)	5	%

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

This release may contain certain forward-looking statements that are based on management's current expectations regarding economic, legislative, and regulatory issues that may impact the Bank's earnings in future periods. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words "believe," "expect," "intend," "estimate" or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could" or "may." Factors that could cause future results to vary materially from current management expectations include, but are not limited to, general economic conditions, changes in interest rates, deposit flows, real estate values, and competition; changes in accounting principles, policies or guidelines; changes in legislation or regulation; and other economic, competitive, governmental, regulatory and technological factors affecting the Bank's operations, pricing, products and services. These and other important factors are detailed in various Federal Deposit Insurance Corporation filings made periodically by the Bank, copies of which are available from the Bank without charge. The Bank undertakes no obligation to release publicly the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events.

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

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Tri-Valley Bank Announces 2Q Results

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