FOLSOM, Calif., July 12, 2012 (GLOBE NEWSWIRE) -- Sierra Vista Bank (OTCBB:SVBA) today reported earnings of $105,000, or $0.05 per share compared to a loss of $15,000 ($0.01 per share) one year earlier and a loss of $697,000 ($0.35 per share) the previous quarter. The quarter reflected a strong net interest margin, continued growth in demand deposits, and stable asset quality. All financial results are preliminary and unaudited.
Additionally, the Bank reported an extension of its ongoing common stock offering to August 24, 2012.
"Our net interest margins remain well above average, as we continue to build on our large balance of non-interest bearing deposits," said Gregory Patton, President and CEO. Sierra Vista's net interest margin was 4.88% in the second quarter, up 7 basis points from the previous quarter, well above the 3.72% net interest margin reported in the first quarter by the 703 banks in the SNL Financial Micro-Cap Index.
"We have continued our outreach into the greater Sacramento and Folsom market," Patton continued. "More customers are banking with Sierra Vista, and we are able to increasingly fund our lending activities with low-cost transaction deposits."
Financial Highlights (at or for the quarter ended June 30, 2012)
- The net interest margin was 4.88% for the second quarter versus 4.81% the previous quarter.
- Non-interest bearing deposits represented over 34% of total deposits at June 30, 2012.
- Operating expenses were down to $974,000 in the second quarter, versus $993,000 one quarter earlier.
- Provisions for loan losses declined to $80,000, well below the previous quarter of $810,000 and $125,000 one year earlier.
- Capital levels continued to remain well above the regulatory "well-capitalized" minimum levels:
- The Tier 1 Leverage Capital ratio was 9.25% compared to 9.02% one quarter earlier.
- The Tier 1 Risk Based Capital ratio was 12.99% compared to 12.56% a quarter earlier.
- The Total Risk Based Capital ratio was 14.25% compared to 13.84% at March 31, 2012.
- Book value was $3.73 per share compared to $3.68 per share at March 31, 2012.
- Non-performing assets as a percent of total assets were 5.01% compared to 5.68% one quarter earlier.
Sierra Vista had total assets of $78.5 million at June 30, 2012, compared to $82.7 million at March 31, 2012, reflecting the reduction in Federal funds sold and the repayment of Federal Home Loan Bank borrowings. Net loans totaled $54.4 million at the end of June compared to $55.2 million at March 31, 2012. Deposits totaled $70.6 million at June 30, 2012, compared to $72.9 million at March 31, 2012. Non-interest bearing deposits grew to $24.1 million or 34.1% of total deposits at June 30, 2012, compared to $23.8 million or 32.6% of total deposits at March 31, 2012.
"With the exception of $134,000, all non-accruing loans are either paying as agreed and current, or paying as agreed under forbearance agreements," noted Lesa Fynes, Chief Financial Officer. "We charged-off the two loans related to the large provision taken last quarter. Additionally, we were able to repay $2.0 million in FHLB Advances during the quarter largely with new non-interest bearing deposits."
Non-performing assets totaled $3.93 million at the end of June 2012 compared to $4.41 million at the end of December 2011. Non-performing assets include loans classified as non-accrual of $2.35 million and real estate owned of $1.58 million at June 31, 2012. The real estate owned balance of $1.58 million includes the Bank's headquarters valued at $1.47 million.
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 and has a branch located in the Sam's Town Center in Cameron Park. 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 includes forward-looking statements, such as statements regarding increases in non-interest income, future profitability, the bank's ability to address challenges impacting economy in which it operates and future loan losses, which reflect management's current expectations for the bank's future financial results and business prospects. Forward-looking statements are inherently subject to risks and uncertainties, and actual results could differ materially from those currently anticipated due to a number of factors, which include, but are not limited to: (a) changes in competitive pressures among depository and other financial institutions or in the bank's ability to compete effectively against larger financial institutions in its banking market; (b) actions of government regulators or changes in laws, regulations or accounting standards, that adversely affect the bank's business; (c) changes in interest rates and/or inflation; (d) changes in general economic or business conditions and the real estate market in the bank's market; and (e) other unexpected developments or changes in the bank's business or its customers' businesses. Such risks and uncertainties could cause results for subsequent interim periods or for the entire year to differ materially from those indicated. You should not place undue reliance on the 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) | 6/30/12 | 3/31/12 | 6/30/11 |
| ASSETS | |||
| Cash and due from banks | $ 3,480 | $ 2,771 | $ 2,501 |
| Federal funds sold | 4,445 | 7,590 | 6,660 |
| Investment securities, available-for-sale | 12,921 | 13,898 | 12,415 |
| -- | |||
| Gross loans | 55,844 | 57,166 | 62,782 |
| Net deferred (fees) | (23) | (17) | (42) |
| Allowance for loan losses | (1,381) | (1,966) | (1,655) |
| Net loans | 54,440 | 55,183 | 61,085 |
| Premises and equipment, net | 786 | 809 | 899 |
| Accrued interest receivable | 295 | 292 | 253 |
| Other real estate | 1,581 | 1,581 | 389 |
| Other assets | 579 | 593 | 407 |
| TOTAL ASSETS | $ 78,527 | $ 82,717 | $ 84,609 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||
| Noninterest-bearing demand deposits | $ 24,059 | $ 23,826 | $ 21,762 |
| Interest-bearing demand deposits | 2,110 | 2,273 | 1,840 |
| Savings and money market deposits | 13,659 | 13,515 | 16,215 |
| Time deposits | 30,758 | 33,308 | 35,395 |
| TOTAL DEPOSITS | 70,586 | 72,922 | 75,212 |
| FHLB borrowings | -- | 2,000 | 1,000 |
| Accrued interest payable | 25 | 37 | 43 |
| Accounts payable and other liabilities | 332 | 347 | 363 |
| TOTAL LIABILITIES | 70,943 | 75,306 | 76,618 |
| Common stock | 17,727 | 17,727 | 17,727 |
| Additional paid-in capital | 377 | 377 | 377 |
| Accumulated deficit | (10,588) | (10,695) | (10,211) |
| Accumulated other comprehensive income | 68 | 2 | 98 |
| TOTAL STOCKHOLDERS' EQUITY | 7,584 | 7,411 | 7,991 |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 78,527 | $ 82,717 | $ 84,609 |
| SIERRA VISTA BANK | |||||
| CONSOLIDATED INCOME STATEMENTS | |||||
| (unaudited) | |||||
| For the Three Months Ended: | For the Six Months Ended: | ||||
| ($000s, except per share data) | 6/30/12 | 3/31/12 | 6/30/11 | 6/30/12 | 6/30/11 |
| Interest income | |||||
| Loans | $ 896 | $ 930 | $ 1,022 | $ 1,826 | $ 2,129 |
| Investment securities | 83 | 74 | 95 | 157 | 179 |
| Federal Funds sold | 3 | 4 | 4 | 7 | 6 |
| Total interest income | 982 | 1,008 | 1,121 | 1,990 | 2,314 |
| Interest expense | |||||
| Deposits | 55 | 68 | 118 | 123 | 252 |
| FHLB borrowings | -- | 1 | 5 | 1 | 11 |
| Total interest expense | 55 | 69 | 123 | 124 | 263 |
| Net interest income | 927 | 939 | 998 | 1,866 | 2,051 |
| Provision for loan and lease losses | 80 | 810 | 125 | 890 | 255 |
| Net interest income after provision for loan losses | 847 | 129 | 873 | 976 | 1,796 |
| Noninterest income | |||||
| Customer service and other fees | 124 | 86 | 58 | 210 | 118 |
| Gain on sale of loans | -- | -- | -- | -- | 14 |
| Gain (loss) on sale of other real estate | -- | 56 | -- | 56 | (1) |
| Gain (loss) on available-for-sale securities | 108 | 25 | -- | 133 | -- |
| Total noninterest income | 232 | 167 | 58 | 399 | 131 |
| Noninterest expense | |||||
| Salaries and employee benefits | 539 | 523 | 468 | 1,062 | 953 |
| Occupancy and equipment | 151 | 155 | 166 | 306 | 337 |
| Other general and administrative | 284 | 315 | 312 | 599 | 674 |
| Total noninterest expense | 974 | 993 | 946 | 1,967 | 1,964 |
| Net income (loss) | $ 105 | $ (697) | $ (15) | $ (592) | $ (37) |
| Earnings (loss) per share | $ 0.05 | $ (0.35) | $ (0.01) | $ (0.29) | $ (0.02) |
| Tangible book value per share | $ 3.73 | $ 3.68 | $ 3.92 | $ 3.73 | $ 3.92 |
| Net interest margin | 4.88% | 4.81% | 4.90% | 4.88% | 4.90% |
| Asset Quality: | |||||
| Non-performing loans to total loans | 4.21% | 5.46% | 3.99% | 4.21% | 3.99% |
| Non-performing assets to total loans and ORE | 6.85% | 8.00% | 4.58% | 6.85% | 4.58% |
| Non-performing assets to total assets | 5.01% | 5.68% | 3.42% | 5.01% | 3.42% |
| Allowance for loan losses to total loans | 2.47% | 3.44% | 2.64% | 2.47% | 2.64% |
| Allowance for loan losses to non-performing loans | 58.69% | 63.01% | 66.15% | 58.69% | 66.15% |
| Other real estate | $ 1,581 | $ 1,581 | $ 389 | $ 1,581 | $ 389 |
| Selected Financial Ratios: | |||||
| Tier 1 leverage capital ratio | 9.25% | 9.02% | 9.33% | 9.25% | 9.33% |
| Tier 1 risk-based capital ratio | 12.99% | 12.56% | 12.61% | 12.99% | 12.61% |
| Total risk-based capital ratio | 14.25% | 13.84% | 13.88% | 14.25% | 13.88% |