Sierra Vista Bank Reports 1st Quarter 2015 Financial Results -- Deposits Surge

FOLSOM, CA--(Marketwired - Apr 30, 2015) - Sierra Vista Bank (OTCQB: SVBA) today reported net income for the 1^st Quarter of $113,000, compared to net income of $176,000 for the same period last year. Earnings for the 1^st Quarter 2015 were impacted by the opening of the Bank's 3^rd branch in June 2014 as well as the current interest rate environment.

Total assets grew $15.2 million during the 1^st Quarter 2015 to $136.9 million, representing a 12.5% increase over the previous quarter and a 30.7% increase over the previous year. Loans increased $6.2 million in the first three months of 2015 to $91.7 million, an increase of 7.2% during the 1^st Quarter and 20.6% over the past year. Total deposits increased $15.5 million in the 1^st Quarter to $119.1 million, a 15.0% increase over the year-end level. This represented a very significant increase of 37.4% over the past year. The Bank ended the quarter without any borrowings. The 1^st Quarter 2015 financial results are preliminary and unaudited. "We are very pleased with the strong growth in core deposits. The Bank continues to experience improvement in our deposit mix resulting in a lower overall cost of funds," stated Gary D. Gall, President/CEO.

Sierra Vista Bank continued to show a strong net interest margin of 4.36% for the 1^st Quarter 2015, with a yield on earning assets of 4.67% and a total cost of funds of 0.33%. "The Bank's growth in the 1^st Quarter of 2015 in non-interest bearing accounts totaled $6.3 million to $36.6 million. This made a significant contribution in maintaining our strong net interest margin," stated Lesa Fynes, EVP/CFO. "Non-interest bearing deposits ended the Quarter at 30.8% of total deposits as the Bank remains focused on growing its core business."

Capital levels at March 31, 2015 remain above the regulatory "well-capitalized" minimum levels:

• The Tier 1 Leverage Capital ratio: 13.25%
• The Tier 1 Risk Based Capital ratio: 16.79%
• The Total Risk Based Capital ratio: 18.04%

Due to continued improvement in credit quality, the Bank did not pass a provision for loan losses in the 1^st Quarter of 2015. The allowance for loan losses was 1.54% of total loans as of March 31, 2015. Non-performing assets continued to decline, totaling $971,000 as of March 31, 2015, compared to $1.1 million at the same point last year. Non-performing loans to total loans as a ratio decreased to 1.06% at March 31, 2015 compared to 1.46% on March 31, 2014. All non-accruing loans are paid current under their original terms or are paying as agreed under forbearance agreements.

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.