Sierra Vista Bank Reports 4th Quarter 2015 Financial Results

FOLSOM, CA--(Marketwired - Jan 19, 2016) - Sierra Vista Bank (OTCBB: SVBA) today reported Pre-tax profits for the 4^th Quarter of 2015 totaled $533,000 compared to $148,000 for the same quarter a year ago, an increase of 260%. Year to date Pre-tax income for 2015 totaled $1,249,000 compared to $844,000 for the year 2014, an increase of 48.0%. Sierra Vista opened its third branch in Fair Oaks at the end of June 2014, and the Bank has realized the benefits related to the successful growth in deposits and loans at the Fair Oaks location in 2015. After just eighteen months of operations, the Fair Oaks office has reached $31.6 million in deposits.

Net income for the 4^th Quarter of 2015 totaled $312,000, compared to net income of $87,000 for the same period a year ago, an increase of 258.6%. This also represented an increase of 80.3% over the $173,000 in net profits made in the 3^rd Quarter of 2015. Net income year to date was $730,000 in 2015, compared to $475,000 for the year 2014, an increase of 53.7%. 

The Bank's total assets grew $6.5 million during the 4^th Quarter 2015 and $33.2 million over the last year to a total of $154.9 million, representing a 27.3% increase over the previous year. Loans increased $1.0 million in the 4^th Quarter and $28.0 million over the last year to $113.6 million, an increase of 32.7% over the past year. Total deposits increased $6.3 million in the 4^th Quarter and $29.8 million over the last year to $133.3 million, a 28.8% increase over December 31, 2014. The 4^th Quarter 2015 financial results are preliminary and unaudited. "We are pleased to experience such solid growth in our balance sheet which has had a significant impact on our net interest income and operating efficiencies," stated Gary D. Gall, President/CEO. "Our bottom line has been positively impacted."

Net interest income for 2015 totaled $5,724,000 compared to $4,826,000 in 2014, an increase of 18.6%. Sierra Vista Bank continues to show a strong net interest margin which equaled 4.65% for the 4^th Quarter 2015, with a yield on earning assets of 4.93% and a total cost of funds of 0.29%. Non-interest bearing deposits totaled $44.3 million as of the end of the 4^th Quarter 2015, an increase of 46.4% over the same point last year. Non-interest bearing deposits ended the quarter at 33.2% of total deposits. 

Non-interest income totaled $138,000 for the 4^th Quarter 2015, representing an increase of 89.0% over the same period in 2014.

Capital levels at December 31, 2015 remain above the regulatory "well-capitalized" minimum levels:

• The Tier 1 Leverage ratio: 11.61%
• The Common Equity Tier 1 Capital ratio: 14.74%
• The Tier 1 Capital ratio: 14.74%
• The Total Capital ratio: 16.01% 

The Bank experienced growth of $1.4 million in Shareholders' Equity to a total of $17.8 million during the 12 months since December 31, 2014.

Credit quality continued to improve in 2015, with non-performing assets decreasing to $233,000 as of December 31, 2015, compared to $995,000 for the same period last year. Non-performing loans to total loans as a ratio decreased to .21% at quarter end, compared to 1.16% on December 31, 2014. The Bank passed $45,000 in loan loss provision during the year, had no charge offs, and realized $184,000 in loan loss recoveries. The allowance for loan losses equaled 1.43% of total loans as of December 31, 2015.

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)				12/31/15				9/30/15				12/31/14
ASSETS
Cash and due from banks				$	3,307			$	3,392			$	3,957
Federal funds sold					11,835				4,580				8,620
Investment securities, available-for-sale					19,756				20,703				16,794
Gross loans					113,586				112,571				85,583
	Net deferred (fees)				200				193				52
	Allowance for loan losses				(1,629	)			(1,520	)			(1,400	)
		Net loans			112,157				111,244				84,235
Premises and equipment, net					979				941				1,001
Accrued interest receivable					469				463				397
Other real estate					0				339				0
Other assets					6,419				6,764				6,685
TOTAL ASSETS				$	154,922			$	148,426			$	121,689
LIABILITIES AND STOCKHOLDERS' EQUITY
Non-interest bearing demand deposits				$	44,326			$	38,981			$	30,278
Interest bearing demand deposits					7,398				4,930				5,267
Savings and money market deposits					23,074				24,087				16,140
Time deposits					58,540				58,992				51,864
TOTAL DEPOSITS					133,338				126,990				103,549
FHLB borrowings					3,000				3,000				1,000
Accrued interest payable					38				52				52
Accounts payable and other liabilities					715				902				664
TOTAL LIABILITIES					137,091				130,944				105,265
Common stock					21,883				21,796				21,252
Additional paid-in capital					377				377				377
Accumulated deficit					(4,361	)			(4,696	)			(5,188	)
Accumulated other comprehensive income					(68	)			5				(17	)
TOTAL STOCKHOLDERS' EQUITY					17,831				17,482				16,424
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY				$	154,922			$	148,426			$	121,689

SIERRA VISTA BANK
CONSOLIDATED INCOME STATEMENTS
(unaudited)
				For the Three Months Ended:												For the Twelve Months Ended:
($000s, except per share data)				12/31/15				9/30/15				12/31/14				12/31/15				12/31/14
Interest income
	Loans			$	1,672			$	1,414			$	1,257			$	5,628			$	4,744
	Investment securities				108				101				102				454				412
	Federal Funds sold				7				7				5				28				23
		Total interest income			1,787				1,522				1,364				6,110				5,179
Interest expense
	Deposits				99				98				93				384				350
	FHLB borrowings				1				0				0				2				3
		Total interest expense			100				98				93				386				353
		Net interest income			1,687				1,424				1,271				5,724				4,826
Provision for loan and lease losses					0				30				0				45				0
	Net interest income after provision for loan losses				1,687				1,394				1,271				5,679				4,826
Noninterest income
	Customer service and other fees				105				126				73				429				317
	Gain (loss) on sale of loans				0				25				0				63				104
	Gain (loss) on sale of other real estate				33				0				0				33				0
	Gain (loss) on available-for-sale securities				0				0				0				0				0
		Total non-interest income			138				151				73				525				421
Noninterest expense
	Salaries and employee benefits				702				650				655				2,573				2,363
	Occupancy and equipment				235				234				210				925				757
	Other general and administrative				355				365				331				1,457				1,283
		Total non-interest expense			1,292				1,249				1,196				4,955				4,403
		Income (loss) before taxes		$	533			$	296			$	148			$	1,249			$	844
		Taxes			221				123				61				519				369
		Net income (loss)		$	312			$	173			$	87			$	730			$	475
Earnings (loss) per share				$	0.07			$	0.04			$	0.02			$	0.18			$	0.12
Tangible book value per share				$	4.22			$	4.17			$	4.07			$	4.22			$	4.07
Net interest margin					4.65	%			4.24	%			4.50	%			4.37	%			4.55	%
Asset Quality:
Non-performing loans to total loans					0.21	%			0.53	%			1.16	%			0.21	%			1.16	%
Non-performing assets to total loans and ORE					0.21	%			0.82	%			1.16	%			0.21	%			1.16	%
Non-performing assets to total assets					0.15	%			0.63	%			0.82	%			0.15	%			0.82	%
Allowance for loan losses to total loans					1.43	%			1.35	%			1.64	%			1.43	%			1.64	%
Allowance for loan losses to non-performing loans					699.14	%			257.19	%			140.70	%			699.14	%			140.70	%
Other real estate				$	0			$	339			$	0			$	0			$	0
Selected Financial Ratios:
Tier 1 leverage capital ratio					11.61	%			12.12	%			13.47	%			11.61	%			13.47	%
Tier 1 capital ratio					14.74	%			14.84	%			18.59	%			14.74	%			18.59	%
Total capital ratio					16.01	%			16.11	%			19.85	%			16.01	%			19.85	%