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.