Golden Valley Bank Reports Strong Earnings, Growth, and Dividend

Golden Valley Bank (OTCBB: GVYB), headquartered in Chico, California
today reported second quarter 2018 net profit of $591,012, and year to
date net profit of $1,144,734. This compares with 2017 second quarter
and year to date net profit of $469,712 and $833,898 respectively. On a
pre-tax basis, earnings were $816,012 for the quarter ending June 30,
2018 compared to $726,712 for the same period in 2017, a 12% increase.
For the first six months of 2018 pre-tax earnings were $1,566,734
compared to $1,264,898 for the same period in 2017, a 24% increase. The
new lower corporate tax rates signed into law in 2017 make the after-tax
comparison to 2018 less meaningful. The company also announced a $.05
per share second quarter cash dividend.

Second Quarter 2018 financial highlights included:

Asset quality continues to be excellent as less than one-tenth of one
percent of total assets are considered to be non-performing. By
comparison, the industry average was 0.89% of total assets for the
Bank’s national peer group, based on data provided as of March 31, 2018
(the most recent data available). The company has set aside $1.9 million
in loan loss reserves to protect it from future economic uncertainties.

Golden Valley continues to be a well capitalized bank and far exceeds
minimum regulatory requirements. More complete financial information can
be viewed on the Bank’s website at

Further, as previously announced, the Bank’s Board of Directors declared
a cash dividend for the second quarter of $0.05 per common share for
stockholders of record as of July 5, 2018. The payment date for the
dividend will be July 17, 2018.

“The team executed well in the first half of 2018, resulting in strong
year-over-year loan and deposit growth, solid revenues, and an expanding
net interest margin,” said Mark Francis, President and Chief Executive
Officer. “It was important for us to start 2018 by developing
substantial momentum in our core business lines. We continue to expand
our presence in the North Valley generating new business relationships
focused on business checking accounts, merchant services and quality

“As the local economy continues to strengthen, we are seeing
infrastructure projects and new business formation spurred on by tax
reform. We remain focused on expanding our franchise as we prepare our
full service office in Redding for a fall opening and will continue to
look for opportunities to grow while adding long-term value for our
shareholders,” added Francis.

Golden Valley Bank is a locally owned and operated commercial bank
serving the needs of individuals and businesses in northern California.
The Bank has a full service office in Chico, California and a Loan
Production Office in Redding, California. For more information regarding
the bank please call at (530) 894-1000 or visit

Forward-Looking Statements

Statements concerning future performance, developments or events,
expectations for growth and income forecasts, and any other guidance on
future periods, constitute forward-looking statements that are subject
to a number of risks and uncertainties. Actual results are pre-fiscal
year-end audit and may differ materially from stated expectations.
Specific factors include, but are not limited to, loan production,
balance sheet management, expanded net interest margin, the ability to
control costs and expenses, interest rate changes and financial policies
of the United States government and general economic conditions. The
Bank disclaims any obligation to update any such factors.

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