SOURCE: Sierra Vista Bank

Sierra Vista Bank

July 20, 2016 20:00 ET

Sierra Vista Bank Reports 2nd Quarter 2016 Financial Results

FOLSOM, CA--(Marketwired - Jul 20, 2016) - Sierra Vista Bank (OTCBB: SVBA) today reported pre-tax profits for the 2nd Quarter of 2016 totaled $240,000 compared to $226,000 for the same quarter a year ago, an increase of 6.2%. Net income for the 2nd Quarter of 2016 totaled $131,000, compared to net income of $132,000 for the same period a year ago, a decrease of .8%. Pre-tax earnings year to date were $455,000 compared to $420,000 for the first half of 2015, an increase of 8.3%. Net income year to date was $249,000 compared to $245,000 for the same period one year ago. The 2nd Quarter pre-tax income number includes strategic expenses totaling $129,000 related to the pending merger transaction with Central Valley Community Bancorp and Central Valley Community Bank announced on April 28, 2016.

The Bank's total assets grew $1.1 million during the 2nd Quarter 2016 and $16.2 million over the last year to a total of $157.3 million, representing an 11.5% increase over the previous year. Loans increased $2.5 million in the 2nd Quarter and $21.5 million over the last year to $121.8 million, an increase of 21.4% over the past year. Total deposits decreased $2.4 million in the 2nd Quarter, but increased $9.5 million over the last year to $132.4 million, a 7.7% increase over June 30, 2015. The 2nd Quarter 2016 financial results are preliminary and unaudited. 

Net interest income for the 2nd Quarter 2016 totaled $1,670,000 compared to $1,339,000 for the same period in 2015, an increase of 24.7%. Sierra Vista Bank continues to show a strong net interest margin which equaled 4.47% for the 2nd Quarter 2016, with a yield on earning assets of 4.73% and a total cost of funds of 0.28%. Non-interest bearing deposits totaled $47.6 million as of the end of the 2nd Quarter 2016, an increase of 32.0% over the same point last year. Non-interest bearing deposits ended the quarter at 36.0% of total deposits.

Capital levels at June 30, 2016 remain above the regulatory "well-capitalized" minimum levels:

  • The Tier 1 Leverage ratio: 10.00%
  • The Common Equity Tier 1 Capital ratio: 12.42%
  • The Tier 1 Capital ratio: 12.42%
  • The Total Capital ratio: 13.68% 

The Bank experienced growth of $358,000 in Shareholders' Equity to a total of $18.4 million during the 3 months since March 31, 2016.

Credit quality continued to improve in the 2nd Quarter 2016, with non-performing assets decreasing to $204,000 as of June 30, 2016, compared to $946,000 for the same period last year. Non-performing loans to total loans as a ratio decreased to .17% at quarter end, compared to .94% on June 30, 2015. The Bank passed $50,000 in loan loss provision during the 2nd Quarter, had $12,000 in charge offs, and realized $12,000 in loan loss recoveries. The allowance for loan losses equaled 1.43% of total loans as of June 30, 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)   6/30/16     3/31/16     6/30/15  
ASSETS                  
Cash and due from banks   $ 4,430     $ 3,866     $ 3,565  
Federal funds sold     4,845       3,745       11,560  
Investment securities, available-for-sale     20,546       23,371       18,746  
                         
Gross loans     121,809       119,342       100,309  
  Net deferred (fees)     105       177       114  
  Allowance for loan losses     (1,741 )     (1,691 )     (1,447 )
    Net loans     120,173       117,828       98,976  
Premises and equipment, net     861       923       948  
Accrued interest receivable     562       493       454  
Other real estate     0       0       0  
Other assets     5,842       5,891       6,782  
TOTAL ASSETS   $ 157,259     $ 156,117     $ 141,031  
                         
LIABILITIES AND STOCKHOLDERS' EQUITY                        
Noninterest-bearing demand deposits   $ 47,613     $ 44,900     $ 36,077  
Interest-bearing demand deposits     7,639       6,999       5,465  
Savings and money market deposits     28,969       29,149       21,911  
Time deposits     48,149       53,698       59,414  
TOTAL DEPOSITS     132,370       134,746       122,867  
                         
FHLB borrowings     6,000       3,000       0  
Accrued interest payable     44       50       41  
Accounts payable and other liabilities     434       268       904  
TOTAL LIABILITIES     138,848       138,064       123,812  
                         
Common stock     22,034       21,885       21,786  
Additional paid-in capital     377       377       377  
Accumulated deficit     (4,062 )     (4,218 )     (4,893 )
Accumulated other comprehensive income     62       9       (51 )
    TOTAL STOCKHOLDERS' EQUITY     18,411       18,053       17,219  
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY   $ 157,259     $ 156,117     $ 141,031  
   
   
SIERRA VISTA BANK  
CONSOLIDATED INCOME STATEMENTS  
(unaudited)  
   
    For the Three Months Ended:     For the Six Months Ended:  
($000s, except per share data)   6/30/16     3/31/16     6/30/15     6/30/16     6/30/15  
Interest income                              
  Loans   $ 1,625     $ 1,544     $ 1,296     $ 3,168     $ 2,541  
  Investment securities     135       129       133       265       245  
  Federal Funds sold     7       12       7       19       14  
    Total interest income     1,767       1,685       1,436       3,452       2,800  
                                         
Interest expense                                        
  Deposits     94       100       97       193       186  
  FHLB borrowings     3       3       0       7       1  
    Total interest expense     97       103       97       200       187  
    Net interest income     1,670       1,582       1,339       3,252       2,613  
Provision for loan and lease losses     50       50       15       100       15  
    Net interest income after provision for loan losses     1,620       1,532       1,324       3,152       2,598  
                                         
Noninterest income                                        
  Customer service and other fees     97       99       101       196       196  
  Gain (loss) on sale of loans     0       0       33       0       39  
  Gain (loss) on sale of other real estate     0       0       0       0       0  
  Gain (loss) on available-for-sale securities     76       0       0       76       0  
    Total noninterest income     173       99       134       272       235  
                                         
Noninterest expense                                        
  Salaries and employee benefits     820       788       639       1,608       1,220  
  Occupancy and equipment     254       247       233       501       455  
  Other general and administrative     479       380       360       860       738  
    Total noninterest expense     1,553       1,415       1,232       2,969       2,413  
                                         
    Income (loss) before taxes   $ 240     $ 216     $ 226     $ 455     $ 420  
    Taxes     109       97       94       206       175  
    Net income (loss)   $ 131     $ 119     $ 132     $ 249     $ 245  
                                         
Earnings (loss) per share   $ 0.03     $ 0.03     $ 0.03     $ 0.06     $ 0.06  
Tangible book value per share   $ 4.25     $ 4.26     $ 4.12     $ 4.25     $ 4.12  
Net interest margin     4.47 %     4.30 %     4.23 %     4.39 %     4.30 %
                                         
Asset Quality:                                        
Non-performing loans to total loans     0.17 %     0.18 %     0.94 %     0.17 %     0.94 %
Non-performing assets to total loans and ORE     0.17 %     0.18 %     0.94 %     0.17 %     0.94 %
Non-performing assets to total assets     0.13 %     0.14 %     0.67 %     0.13 %     0.67 %
Allowance for loan losses to total loans     1.43 %     1.42 %     1.44 %     1.43 %     1.44 %
Allowance for loan losses to non-performing loans     853.43 %     786.51 %     152.96 %     853.43 %     152.96 %
Other real estate   $ 0     $ 0     $ 0     $ 0     $ 0  
                                         
Selected Financial Ratios:                                        
Regulatory Tier 1 leverage capital ratio     10.00 %     9.93 %     10.49 %     10.00 %     10.49 %
Regulatory Tier 1 risk-based capital ratio     12.42 %     12.28 %     12.95 %     12.42 %     12.95 %
Regulatory Total risk-based capital ratio     13.68 %     13.55 %     14.20 %     13.68 %     14.20 %
                                         

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