Sierra Vista Bank Reports 1st Quarter 2016 Financial Results

FOLSOM, CA--(Marketwired - Apr 19, 2016) -  Sierra Vista Bank (OTCBB: SVBA) today reported Pre-tax profits for the 1^st Quarter of 2016 totaled $216,000 compared to $194,000 for the same quarter a year ago, an increase of 11.3%. Net income for the 1^st Quarter of 2016 totaled $119,000, compared to net income of $113,000 for the same period a year ago, an increase of 5.3%. 

The Bank's total assets grew $1.2 million during the 1^st Quarter 2016 and $19.2 million over the last year to a total of $156.1 million, representing a 14.0% increase over the previous year. Loans increased $5.8 million in the 1^st Quarter and $27.6 million over the last year to $119.3 million, an increase of 30.1% over the past year. Total deposits increased $1.4 million in the 1^st Quarter and $15.7 million over the last year to $134.7 million, a 13.2% increase over March 31, 2015. The 1^st Quarter 2016 financial results are preliminary and unaudited. 

Net interest income for the 1^st Quarter 2016 totaled $1,582,000, compared to $1,274,000 for the same period in 2015, an increase of 24.2%. Sierra Vista Bank continues to show a strong net interest margin which equaled 4.30% for the 1^st Quarter 2016, with a yield on earning assets of 4.58% and a total cost of funds of 0.30%. Non-interest bearing deposits totaled $44.9 million as of the end of the 1^st Quarter 2016, an increase of 22.6% over the same point last year. Non-interest bearing deposits ended the quarter at 33.3% of total deposits. "The Bank has continued to experience core deposit and loan growth over the past 12 months," stated Gary D. Gall, President/CEO. "We are pleased with the results and its impact on the Bank's overall profitability."

Capital levels at March 31, 2016 remain above the regulatory "well-capitalized" minimum levels:

• The Tier 1 Leverage ratio: 9.93%
• The Common Equity Tier 1 Capital ratio: 12.28%
• The Tier 1 Capital ratio: 12.28%
• The Total Capital ratio: 13.55% 

The Bank experienced growth of $222,000 in Shareholders' Equity to a total of $18.1 million during the 3 months since December 31, 2015.

Credit quality continued to improve in the 1^st Quarter 2016, with non-performing assets decreasing to $215,000 as of March 31, 2016, compared to $971,000 for the same period last year. Non-performing loans to total loans as a ratio decreased to .18% at quarter end, compared to 1.06% on March 31, 2015. The Bank passed $50,000 in loan loss provision during the 1^st Quarter, had no charge offs, and realized $12,000 in loan loss recoveries. The allowance for loan losses equaled 1.42% of total loans as of March 31, 2016.

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)				3/31/16				12/31/15				3/31/15
ASSETS
Cash and due from banks				$	3,866			$	3,307			$	3,580
Federal funds sold					3,745				11,835				15,265
Investment securities, available-for-sale					23,371				19,756				19,602
Gross loans					119,342				113,586				91,734
	Net deferred (fees)				177				200				51
	Allowance for loan losses				(1,691	)			(1,629	)			(1,412	)
		Net loans			117,828				112,157				90,373
Premises and equipment, net					923				979				1,003
Accrued interest receivable					493				469				394
Other real estate					0				0				0
Other assets					5,891				6,419				6,701
TOTAL ASSETS				$	156,117			$	154,922			$	136,918
LIABILITIES AND STOCKHOLDERS' EQUITY
Noninterest-bearing demand deposits				$	44,900			$	44,326			$	36,614
Interest-bearing demand deposits					6,999				7,398				5,511
Savings and money market deposits					29,149				23,074				19,894
Time deposits					53,698				58,540				57,035
TOTAL DEPOSITS					134,746				133,338				119,054
FHLB borrowings					3,000				3,000				0
Accrued interest payable					50				38				53
Accounts payable and other liabilities					268				715				676
TOTAL LIABILITIES					138,064				137,091				119,783
Common stock					21,885				21,883				21,759
Additional paid-in capital					377				377				377
Accumulated deficit					(4,218	)			(4,361	)			(5,050	)
Accumulated other comprehensive income					9				(68	)			49
TOTAL STOCKHOLDERS' EQUITY					18,053				17,831				17,135
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY				$	156,117			$	154,922			$	136,918

SIERRA VISTA BANK
CONSOLIDATED INCOME STATEMENTS
(unaudited)
				For the Three Months Ended:
($000s, except per share data)				3/31/16				12/31/15				3/31/15
Interest income
	Loans			$	1,544			$	1,672			$	1,245
	Investment securities				129				108				112
	Federal Funds sold				12				7				7
		Total interest income			1,685				1,787				1,364
Interest expense
	Deposits				100				99				89
	FHLB borrowings				3				1				1
		Total interest expense			103				100				90
		Net interest income			1,582				1,687				1,274
Provision for loan and lease losses					50				0				0
		Net interest income after provision for loan losses			1,532				1,687				1,274
Noninterest income
	Customer service and other fees				99				105				95
	Gain (loss) on sale of loans				0				0				6
	Gain (loss) on sale of other real estate				0				33				0
	Gain (loss) on available-for-sale securities				0				0				0
		Total noninterest income			99				138				101
Noninterest expense
	Salaries and employee benefits				788				702				581
	Occupancy and equipment				247				235				222
	Other general and administrative				380				355				378
		Total noninterest expense			1,415				1,292				1,181
		Income (loss) before taxes		$	216			$	533			$	194
		Taxes			97				221				81
		Net income (loss)		$	119			$	312			$	113
Earnings (loss) per share				$	0.03			$	0.07			$	0.03
Tangible book value per share				$	4.26			$	4.22			$	4.09
Net interest margin					4.30	%			4.65	%			4.36	%
Asset Quality:
Non-performing loans to total loans					0.18	%			0.21	%			1.06	%
Non-performing assets to total loans and ORE					0.18	%			0.21	%			1.06	%
Non-performing assets to total assets					0.14	%			0.15	%			0.71	%
Allowance for loan losses to total loans					1.42	%			1.43	%			1.54	%
Allowance for loan losses to non-performing loans					786.51	%			699.14	%			145.42	%
Other real estate				$	0			$	0			$	0
Selected Financial Ratios:
Regulatory Tier 1 leverage capital ratio					9.93	%			10.01	%			11.03	%
Regulatory Tier 1 risk-based capital ratio					12.28	%			12.48	%			13.62	%
Regulatory Total risk-based capital ratio					13.55	%			13.75	%			14.87	%