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 2^nd 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 2^nd 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 2^nd 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 2^nd 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 2^nd 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 2^nd Quarter, but increased $9.5 million over the last year to $132.4 million, a 7.7% increase over June 30, 2015. The 2^nd Quarter 2016 financial results are preliminary and unaudited. 

Net interest income for the 2^nd 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 2^nd 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 2^nd 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 2^nd 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 2^nd 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	%