SOURCE: Sierra Vista Bank

Sierra Vista Bank

July 28, 2015 22:45 ET

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 2nd 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 1st 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 3rd 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 2nd 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 2nd 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 2nd 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 2nd 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 2nd 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 2nd 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 2nd 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 %
                                         
                                         

Contact Information

  • Contacts:
    Gary D. Gall
    President/CEO
    Sierra Vista Bank
    (916) 850-1500
    Email Contact

    Lesa Fynes
    EVP/CFO
    Sierra Vista Bank
    (916) 850-1505
    Email Contact