Golden Valley Bank Reports Second Quarter Results

Golden Valley Bank (OTC Markets: GVYB), headquartered in Chico, California today reported second quarter 2020 net profit of $988,245, and year to date net profit of $2,146,201, 22% and 43.9% increases from the same period last year. On a pre-tax basis, earnings were $1,414,245 for the quarter ending June 30, 2020 compared to $1,112,075 for the same period in 2019, a 27% increase. For the first six months of 2020 pre-tax earnings were $3,062,201 compared to $2,046,960 for the same period in 2019, a 49.6%

Second Quarter 2020 financial highlights compared to the second quarter of 2019 include:

• Assets up $69.8 million to $416.4 million, or 20.1%
• Loans up $117.4 million to $280.7 million, or 71.9%
• Deposits up $46.6 million to $355.3 million, or 15.1%

"Our financial results continue to be very good and we are being recognized by banking organizations as a top performer in our industry. However, we are taking precautions for the future as the national and local economic situation is certainly precarious," said Mark Francis, President and Chief Executive Officer.

"Our staff showed their commitment and dedication to our local communities by working around the clock to submit over 450 Small Business Administration Paycheck Protection Plan loans during the second quarter getting funds to businesses as quickly as possible. We've kept our doors open throughout this challenging time and we've proven that we have the best bankers in town," added Francis.

Asset quality continues to be excellent as only .04% of total assets are considered to be non-performing. By comparison, the average was .88% of total assets for the Bank's national peer group, based on data provided as of March 31, 2020 (the most recent data available). The company has set aside $3.0 million in loan loss reserves to protect it from future economic uncertainties and is prepared to increase that amount substantially with little to no effect on continuing revenues should economic conditions were to erode. 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.

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

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.