Sierra Vista Bank Reports 2nd Quarter 2015 Financial Results

FOLSOM, CA--(Marketwired - Jul 28, 2015) - Sierra Vista Bank (OTCQB: SVBA) today reported net income for the 2^nd Quarter of $132,000, compared to net income of $122,000 for the same period a year ago, representing an increase of 8.2%. This also represented an increase of 16.8% over the $113,000 profit made in the 1^st Quarter of 2015. Net income year to date was $245,000, compared to $298,000 for the first half of 2014. Earnings for the first half of 2015 were impacted by the opening of the Bank's 3^rd branch in June 2014 as well as the current interest rate environment. The Bank is pleased to report that our Fair Oaks office has shown significant growth in its first twelve months of operation and ended the quarter with over $22.1 million in deposits.

The Bank's total assets grew $4.1 million during the 2^nd Quarter 2015 and $26.5 million over the last year to a total of $141.0 million, representing a 23.2% increase over the previous year. Loans increased $8.6 million in the 2^nd Quarter to $100.3 million, an increase of 9.3% during the quarter and 24.4% over the past year. Total deposits increased $3.8 million in the 2^nd Quarter and $25.9 million over the last year to $122.9 million, a 26.7% increase over June 30, 2014. The Bank ended the quarter without any borrowings. The 2^nd Quarter 2015 financial results are preliminary and unaudited. "We are very pleased with our solid growth in core deposits and loans resulting in a strong net interest margin which ranks at the top of the Bank's peer group," stated Gary D. Gall, President/CEO. 

Sierra Vista Bank continues to show a strong net interest margin which equaled 4.23% for the 2^nd Quarter 2015, with a yield on earning assets of 4.53% and a total cost of funds of 0.33%. Non-interest bearing deposits totaled $36.1 million as of the end of the 2^nd Quarter 2015, an increase of 42.0% over the same point last year. "This has made a significant contribution to our net interest income which will continue to have a positive impact on earnings," stated Lesa Fynes, EVP/CFO. "Non-interest bearing deposits ended the quarter at 29.4% of total deposits as the Bank remains focused on growing its core business."

Non-interest income totaled $134,000 for the quarter representing an increase of 76.3% over the same period in 2014.

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

• The Tier 1 Leverage ratio: 12.59%
• The Common Equity Tier 1 Capital ratio: 15.92%
• The Tier 1 Capital ratio: 15.92%
• The Total Capital ratio: 17.17% 

Credit quality continued to improve during the quarter. The Bank passed $15,000 in provisions for loan losses during the 2^nd Quarter of 2015 due to our loan growth. The allowance for loan losses equaled 1.44% of total loans as of June 30, 2015. Non-performing assets continued to decline, totaling $946,000 as of June 30, 2015, compared to $1.1 million for the same period last year. Non-performing loans to total loans as a ratio decreased to .94% at quarter end, compared to 1.35% on June 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)				6/30/15				3/31/15				6/30/14
ASSETS
Cash and due from banks				$	3,565			$	3,580			$	3,226
Federal funds sold					11,560				15,265				12,465
Investment securities, available-for-sale					18,746				19,602				14,459
Gross loans					100,309				91,734				80,633
	Net deferred (fees)				114				51				43
	Allowance for loan losses				(1,447	)			(1,412	)			(1,475	)
		Net loans			98,976				90,373				79,201
Premises and equipment, net					948				1,003				608
Accrued interest receivable					454				394				296
Other real estate					0				0				0
Other assets					6,782				6,701				4,260
TOTAL ASSETS				$	141,031			$	136,918			$	114,515
LIABILITIES AND STOCKHOLDERS' EQUITY
Non-interest bearing demand deposits				$	36,077			$	36,614			$	25,402
Interest bearing demand deposits					5,465				5,511				3,863
Savings and money market deposits					21,911				19,894				16,164
Time deposits					59,414				57,035				51,509
TOTAL DEPOSITS					122,867				119,054				96,938
FHLB borrowings					0				0				1,000
Accrued interest payable					41				53				35
Accounts payable and other liabilities					904				676				452
TOTAL LIABILITIES					123,812				119,783				98,425
Common stock					21,786				21,759				21,252
Additional paid-in capital					377				377				377
Accumulated deficit					(4,893	)			(5,050	)			(5,411	)
Accumulated other comprehensive income					(51	)			49				(128	)
TOTAL STOCKHOLDERS' EQUITY					17,219				17,135				16,090
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY				$	141,031			$	136,918			$	114,515

SIERRA VISTA BANK
CONSOLIDATED INCOME STATEMENTS
(unaudited)
				For the Three Months Ended:												For the Six Months Ended:
($000s, except per share data)				6/30/15				3/31/15				6/30/14				6/30/15				6/30/14
Interest income
	Loans			$	1,296			$	1,245			$	1,150			$	2,541			$	2,289
	Investment securities				133				112				95				245				199
	Federal Funds sold				7				7				5				14				9
		Total interest income			1,436				1,364				1,250				2,800				2,497
Interest expense
	Deposits				97				89				78				186				157
	FHLB borrowings				-				1				1				1				2
		Total interest expense			97				90				79				187				159
		Net interest income			1,339				1,274				1,171				2,613				2,338
Provision for loan and lease losses					15				0				0				15				0
		Net interest income after provision for loan losses			1,324				1,274				1,171				2,598				2,338
Noninterest income
	Customer service and other fees				101				95				74				196				147
	Gain (loss) on sale of loans				33				6				0				39				79
	Gain (loss) on sale of other real estate				0				0				0				0				0
	Gain (loss) on available-for-sale securities				0				0				2				0				(1	)
		Total non-interest income			134				101				76				235				225
Noninterest expense
	Salaries and employee benefits				639				581				560				1,220				1,086
	Occupancy and equipment				233				222				166				455				350
	Other general and administrative				360				378				301				738				597
		Total non-interest expense			1,232				1,181				1,027				2,413				2,033
		Income (loss) before taxes		$	226			$	194			$	220			$	420			$	530
		Taxes			94				81				98				175				232
		Net income (loss)		$	132			$	113			$	122			$	245			$	298
Earnings (loss) per share				$	0.03			$	0.03			$	0.03			$	0.06			$	0.07
Tangible book value per share				$	4.12			$	4.09			$	4.01			$	4.12			$	4.01
Net interest margin					4.23	%			4.36	%			4.66	%			4.30	%			4.71	%
Asset Quality:
Non-performing loans to total loans					0.94	%			1.06	%			1.35	%			0.94	%			1.35	%
Non-performing assets to total loans and ORE					0.94	%			1.06	%			1.35	%			0.94	%			1.35	%
Non-performing assets to total assets					0.67	%			0.71	%			0.95	%			0.67	%			0.95	%
Allowance for loan losses to total loans					1.44	%			1.54	%			1.83	%			1.44	%			1.83	%
Allowance for loan losses to non-performing loans					152.96	%			145.42	%			135.69	%			152.96	%			135.69	%
Other real estate				$	0			$	0			$	0			$	0			$	0
Selected Financial Ratios:
Tier 1 leverage capital ratio					12.59	%			13.25	%			15.08	%			12.59	%			15.08	%
Tier 1 risk-based capital ratio					15.92	%			16.79	%			19.46	%			15.92	%			19.46	%
Total risk-based capital ratio					17.17	%			18.04	%			20.72	%			17.17	%			20.72	%