SOURCE: Sierra Vista Bank

Sierra Vista Bank

October 20, 2015 19:55 ET

Sierra Vista Bank Reports 3rd Quarter 2015 Financial Results

FOLSOM, CA--(Marketwired - Oct 20, 2015) - Sierra Vista Bank (OTCBB: SVBA) today reported Pre-tax profits for the 3rd Quarter of 2015 totaled $296,000 compared to $166,000 for the same quarter a year ago, an increase of 78.3%. Year to date Pre-tax income for 2015 totaled $716,000 compared to $696,000 for the first nine months of 2014. The Bank opened its third branch in Fair Oaks at the end of June 2014, which initially had a negative impact on earnings. The Bank has been able to realize the benefits related to the successful growth in deposits and loans at the Fair Oaks location in 2015. After just fifteen months of operations, the Fair Oaks office has reached $25.4 million in deposits.

Net income for the 3rd Quarter of 2015 totaled $173,000, compared to net income of $90,000 for the same period a year ago, an increase of 92.2%. This also represented an increase of 31.1% over the $132,000 in net profits made in the 2nd Quarter of 2015. Net income year to date was $418,000, compared to $388,000 for the first nine months of 2014, an increase of 7.7%. 

The Bank's total assets grew $7.4 million during the 3rd Quarter 2015 and $27.1 million over the last year to a total of $148.4 million, representing a 22.3% increase over the previous year. Loans increased $12.3 million in the 3rd Quarter to $112.6 million, an increase of 12.2% during the quarter and 30.9% over the past year. Total deposits increased $4.1 million in the 3rd Quarter and $23.5 million over the last year to $127.0 million, a 22.7% increase over September 30, 2014. The 3rd Quarter 2015 financial results are preliminary and unaudited. "It is great to experience both loan and deposit growth that is getting stronger and stronger," stated Gary D. Gall, President/CEO. "It is having a significant impact on our earnings stream."

Net interest income for the first 9 months of 2015 totaled $4,037,000 compared to $3,555,000 in the first 9 months of 2014, an increase of 13.6%. Sierra Vista Bank continues to show a strong net interest margin which equaled 4.24% for the 3rd Quarter 2015, with a yield on earning assets of 4.53% and a total cost of funds of 0.31%. Non-interest bearing deposits totaled $39.0 million as of the end of the 3rd Quarter 2015, an increase of 37.6% over the same point last year. Non-interest bearing deposits ended the quarter at 30.7% of total deposits. "The Bank is pleased with the increase in core non-interest bearing deposits and will continue to focus on growth in that area," stated Lesa Fynes, EVP/CFO. 

Non-interest income totaled $151,000 for the quarter, representing an increase of 22.8% over the same period in 2014.

Capital levels at September 30, 2015 remain above the regulatory "well-capitalized" minimum levels:

  • The Tier 1 Leverage ratio: 12.12%
  • The Common Equity Tier 1 Capital ratio: 14.84%
  • The Tier 1 Capital ratio: 14.84%
  • The Total Capital ratio: 16.09% 

The Bank experienced growth of $1.3 million in Shareholders' Equity to a total of $17.5 million during the 12 months since September 30, 2014.

Credit quality continued to improve during the quarter. The Bank passed $30,000 in provisions for loan losses during the 3rd Quarter of 2015 due to loan growth. The allowance for loan losses equaled 1.35% of total loans as of September 30, 2015. Non-performing assets continued to decline, totaling $931,000 as of September 30, 2015, compared to $1.0 million for the same period last year. Non-performing loans to total loans as a ratio decreased to .53% at quarter end, compared to 1.18% on September 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)   9/30/15     6/30/15     9/30/14  
ASSETS                        
Cash and due from banks   $ 3,392     $ 3,565     $ 2,831  
Federal funds sold     4,580       11,560       9,885  
Investment securities, available-for-sale     20,703       18,746       17,135  
                         
Gross loans     112,571       100,309       85,992  
  Net deferred (fees)     193       114       18  
  Allowance for loan losses     (1,520 )     (1,447 )     (1,486 )
      Net loans     111,244       98,976       84,524  
Premises and equipment, net     941       948       915  
Accrued interest receivable     463       454       320  
Other real estate     339       0       0  
Other assets     6,764       6,782       5,760  
TOTAL ASSETS   $ 148,426     $ 141,031     $ 121,370  
                         
LIABILITIES AND STOCKHOLDERS' EQUITY                        
Non-interest bearing demand deposits   $ 38,981     $ 36,077     $ 28,332  
Interest bearing demand deposits     4,930       5,465       5,451  
Savings and money market deposits     24,087       21,911       16,018  
Time deposits     58,992       59,414       53,716  
TOTAL DEPOSITS     126,990       122,867       103,517  
                         
FHLB borrowings     3,000       0       1,000  
Accrued interest payable     52       41       49  
Accounts payable and other liabilities     902       904       574  
TOTAL LIABILITIES     130,944       123,812       105,140  
                         
Common stock     21,796       21,786       21,252  
Additional paid-in capital     377       377       377  
Accumulated deficit     (4,696 )     (4,893 )     (5,297 )
Accumulated other comprehensive income     5       (51 )     (102 )
TOTAL STOCKHOLDERS' EQUITY     17,482       17,219       16,230  
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY   $ 148,426     $ 141,031     $ 121,370  
                         
                         
   
SIERRA VISTA BANK  
CONSOLIDATED INCOME STATEMENTS  
(unaudited)  
   
   
    For the Three Months Ended:     For the Nine Months Ended:  
($000s, except per share data)   9/30/15     6/30/15     9/30/14     9/30/15     9/30/14  
Interest income                                        
  Loans   $ 1,414     $ 1,296     $ 1,199     $ 3,955     $ 3,487  
  Investment securities     101       133       111       346       310  
  Federal Funds sold     7       7       9       21       18  
    Total interest income     1,522       1,436       1,319       4,322       3,815  
                                         
Interest expense                                        
  Deposits     98       97       100       284       257  
  FHLB borrowings     0       0       1       1       3  
    Total interest expense     98       97       101       285       260  
    Net interest income     1,424       1,339       1,218       4,037       3,555  
Provision for loan and lease losses     30       15       0       45       0  
    Net interest income after provision for loan losses     1,394       1,324       1,218       3,992       3,555  
                                         
Noninterest income                                        
  Customer service and other fees     126       101       98       323       244  
  Gain (loss) on sale of loans     25       33       25       63       104  
  Gain (loss) on sale of other real estate     0       0       0       0       0  
  Gain (loss) on available-for-sale securities     0       0       0       0       0  
    Total non-interest income     151       134       123       386       348  
                                         
Noninterest expense                                        
  Salaries and employee benefits     650       639       623       1,871       1,708  
  Occupancy and equipment     234       233       197       689       547  
  Other general and administrative     365       360       355       1,102       952  
    Total non-interest expense     1,249       1,232       1,175       3,662       3,207  
                                         
  Income (loss) before taxes   $ 296     $ 226     $ 166     $ 716     $ 696  
  Taxes     123       94       76       298       308  
  Net income (loss)   $ 173     $ 132     $ 90     $ 418     $ 388  
                                         
Earnings (loss) per share   $ 0.04     $ 0.03     $ 0.02     $ 0.10     $ 0.10  
Tangible book value per share   $ 4.17     $ 4.12     $ 4.04     $ 4.17     $ 4.04  
Net interest margin     4.24 %     4.23 %     4.28 %     4.28 %     4.57 %
                                         
Asset Quality:                                        
Non-performing loans to total loans     0.53 %     0.94 %     1.18 %     0.53 %     1.18 %
Non-performing assets to total loans and ORE     0.82 %     0.94 %     1.18 %     0.82 %     1.18 %
Non-performing assets to total assets     0.63 %     0.67 %     0.84 %     0.63 %     0.84 %
Allowance for loan losses to total loans     1.35 %     1.44 %     1.73 %     1.35 %     1.73 %
Allowance for loan losses to non-performing loans     257.19 %     152.96 %     145.83 %     257.19 %     145.83 %
Other real estate   $ 339     $ 0     $ 0     $ 339     $ 0  
                                         
Selected Financial Ratios:                                        
Tier 1 leverage capital ratio     12.12 %     12.59 %     13.54 %     12.12 %     13.54 %
Tier 1 capital ratio     14.84 %     15.92 %     18.57 %     14.84 %     18.57 %
Total capital ratio     16.09 %     17.17 %     19.83 %     16.09 %     19.83 %
                                         

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