Sierra Vista Bank Reports 3rd Quarter 2015 Financial Results

FOLSOM, CA--(Marketwired - Oct 20, 2015) - Sierra Vista Bank (OTCBB: SVBA) today reported Pre-tax profits for the 3^rd Quarter of 2015 totaled $296,000 compared to $166,000 for the same quarter a year ago, an increase of 78.3%. Year to date Pre-tax income for 2015 totaled $716,000 compared to $696,000 for the first nine months of 2014. The Bank opened its third branch in Fair Oaks at the end of June 2014, which initially had a negative impact on earnings. The Bank has been able to realize the benefits related to the successful growth in deposits and loans at the Fair Oaks location in 2015. After just fifteen months of operations, the Fair Oaks office has reached $25.4 million in deposits.

Net income for the 3^rd Quarter of 2015 totaled $173,000, compared to net income of $90,000 for the same period a year ago, an increase of 92.2%. This also represented an increase of 31.1% over the $132,000 in net profits made in the 2^nd Quarter of 2015. Net income year to date was $418,000, compared to $388,000 for the first nine months of 2014, an increase of 7.7%. 

The Bank's total assets grew $7.4 million during the 3^rd Quarter 2015 and $27.1 million over the last year to a total of $148.4 million, representing a 22.3% increase over the previous year. Loans increased $12.3 million in the 3^rd Quarter to $112.6 million, an increase of 12.2% during the quarter and 30.9% over the past year. Total deposits increased $4.1 million in the 3^rd Quarter and $23.5 million over the last year to $127.0 million, a 22.7% increase over September 30, 2014. The 3^rd Quarter 2015 financial results are preliminary and unaudited. "It is great to experience both loan and deposit growth that is getting stronger and stronger," stated Gary D. Gall, President/CEO. "It is having a significant impact on our earnings stream."

Net interest income for the first 9 months of 2015 totaled $4,037,000 compared to $3,555,000 in the first 9 months of 2014, an increase of 13.6%. Sierra Vista Bank continues to show a strong net interest margin which equaled 4.24% for the 3^rd Quarter 2015, with a yield on earning assets of 4.53% and a total cost of funds of 0.31%. Non-interest bearing deposits totaled $39.0 million as of the end of the 3^rd Quarter 2015, an increase of 37.6% over the same point last year. Non-interest bearing deposits ended the quarter at 30.7% of total deposits. "The Bank is pleased with the increase in core non-interest bearing deposits and will continue to focus on growth in that area," stated Lesa Fynes, EVP/CFO. 

Non-interest income totaled $151,000 for the quarter, representing an increase of 22.8% over the same period in 2014.

Capital levels at September 30, 2015 remain above the regulatory "well-capitalized" minimum levels:

• The Tier 1 Leverage ratio: 12.12%
• The Common Equity Tier 1 Capital ratio: 14.84%
• The Tier 1 Capital ratio: 14.84%
• The Total Capital ratio: 16.09% 
  
  

The Bank experienced growth of $1.3 million in Shareholders' Equity to a total of $17.5 million during the 12 months since September 30, 2014.

Credit quality continued to improve during the quarter. The Bank passed $30,000 in provisions for loan losses during the 3^rd Quarter of 2015 due to loan growth. The allowance for loan losses equaled 1.35% of total loans as of September 30, 2015. Non-performing assets continued to decline, totaling $931,000 as of September 30, 2015, compared to $1.0 million for the same period last year. Non-performing loans to total loans as a ratio decreased to .53% at quarter end, compared to 1.18% on September 30, 2014. 

About Sierra Vista Bank
Sierra Vista Bank is a locally owned community bank, headquartered at 1710 Prairie City Road in Folsom, California since March 2007. The Bank has a branch located in the Sam's Town Center in Cameron Park, and opened its newest branch in Fair Oaks Village in June 2014. The Bank prides itself on serving the financial needs of small businesses and professionals in Folsom and throughout the Highway 50 Corridor while remaining committed to community philanthropy. Additional information about Sierra Vista Bank can be found at www.sierravistabank.com or by calling (916) 850-1500.

Forward Looking Statement:

In addition to historical information, this press release may contain forward looking statements, such as, among others, statements about plans, expectations and goals concerning future growth and performance. Forward-looking statements are subject to risks and uncertainties. Such risks and uncertainties may include but are not necessarily limited to fluctuations in interest rates, inflation, government regulations and general economic conditions, including the real estate market in California and other factors beyond the Bank's control. Such risks and uncertainties could cause results for subsequent periods or years to differ materially from those indicated. Readers should not place undue reliance on forward-looking statements, which reflect management's view only as of the date hereof. The Bank undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances.

SIERRA VISTA BANK
CONSOLIDATED BALANCE SHEETS
(unaudited)
($000s)					9/30/15				6/30/15				9/30/14
ASSETS
Cash and due from banks					$	3,392			$	3,565			$	2,831
Federal funds sold						4,580				11,560				9,885
Investment securities, available-for-sale						20,703				18,746				17,135
Gross loans						112,571				100,309				85,992
	Net deferred (fees)					193				114				18
	Allowance for loan losses					(1,520	)			(1,447	)			(1,486	)
			Net loans			111,244				98,976				84,524
Premises and equipment, net						941				948				915
Accrued interest receivable						463				454				320
Other real estate						339				0				0
Other assets						6,764				6,782				5,760
TOTAL ASSETS					$	148,426			$	141,031			$	121,370
LIABILITIES AND STOCKHOLDERS' EQUITY
Non-interest bearing demand deposits					$	38,981			$	36,077			$	28,332
Interest bearing demand deposits						4,930				5,465				5,451
Savings and money market deposits						24,087				21,911				16,018
Time deposits						58,992				59,414				53,716
TOTAL DEPOSITS						126,990				122,867				103,517
FHLB borrowings						3,000				0				1,000
Accrued interest payable						52				41				49
Accounts payable and other liabilities						902				904				574
TOTAL LIABILITIES						130,944				123,812				105,140
Common stock						21,796				21,786				21,252
Additional paid-in capital						377				377				377
Accumulated deficit						(4,696	)			(4,893	)			(5,297	)
Accumulated other comprehensive income						5				(51	)			(102	)
TOTAL STOCKHOLDERS' EQUITY						17,482				17,219				16,230
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY					$	148,426			$	141,031			$	121,370

SIERRA VISTA BANK
CONSOLIDATED INCOME STATEMENTS
(unaudited)
				For the Three Months Ended:												For the Nine Months Ended:
($000s, except per share data)				9/30/15				6/30/15				9/30/14				9/30/15				9/30/14
Interest income
	Loans			$	1,414			$	1,296			$	1,199			$	3,955			$	3,487
	Investment securities				101				133				111				346				310
	Federal Funds sold				7				7				9				21				18
		Total interest income			1,522				1,436				1,319				4,322				3,815
Interest expense
	Deposits				98				97				100				284				257
	FHLB borrowings				0				0				1				1				3
		Total interest expense			98				97				101				285				260
		Net interest income			1,424				1,339				1,218				4,037				3,555
Provision for loan and lease losses					30				15				0				45				0
		Net interest income after provision for loan losses			1,394				1,324				1,218				3,992				3,555
Noninterest income
	Customer service and other fees				126				101				98				323				244
	Gain (loss) on sale of loans				25				33				25				63				104
	Gain (loss) on sale of other real estate				0				0				0				0				0
	Gain (loss) on available-for-sale securities				0				0				0				0				0
		Total non-interest income			151				134				123				386				348
Noninterest expense
	Salaries and employee benefits				650				639				623				1,871				1,708
	Occupancy and equipment				234				233				197				689				547
	Other general and administrative				365				360				355				1,102				952
		Total non-interest expense			1,249				1,232				1,175				3,662				3,207
	Income (loss) before taxes			$	296			$	226			$	166			$	716			$	696
	Taxes				123				94				76				298				308
	Net income (loss)			$	173			$	132			$	90			$	418			$	388
Earnings (loss) per share				$	0.04			$	0.03			$	0.02			$	0.10			$	0.10
Tangible book value per share				$	4.17			$	4.12			$	4.04			$	4.17			$	4.04
Net interest margin					4.24	%			4.23	%			4.28	%			4.28	%			4.57	%
Asset Quality:
Non-performing loans to total loans					0.53	%			0.94	%			1.18	%			0.53	%			1.18	%
Non-performing assets to total loans and ORE					0.82	%			0.94	%			1.18	%			0.82	%			1.18	%
Non-performing assets to total assets					0.63	%			0.67	%			0.84	%			0.63	%			0.84	%
Allowance for loan losses to total loans					1.35	%			1.44	%			1.73	%			1.35	%			1.73	%
Allowance for loan losses to non-performing loans					257.19	%			152.96	%			145.83	%			257.19	%			145.83	%
Other real estate				$	339			$	0			$	0			$	339			$	0
Selected Financial Ratios:
Tier 1 leverage capital ratio					12.12	%			12.59	%			13.54	%			12.12	%			13.54	%
Tier 1 capital ratio					14.84	%			15.92	%			18.57	%			14.84	%			18.57	%
Total capital ratio					16.09	%			17.17	%			19.83	%			16.09	%			19.83	%