SOURCE: Sierra Vista Bank

Sierra Vista Bank

July 28, 2014 08:30 ET

Sierra Vista Bank Reports Earnings Growth of 138% in the First Half of 2014

FOLSOM, CA--(Marketwired - Jul 28, 2014) - Sierra Vista Bank (OTCQB: SVBA) today reported pre-tax earnings of $530,000 for the six month period ending June 30, 2014, a 137.7% increase over the same six month period in 2013 of $223,000. Pre-tax earnings for the 2nd Quarter 2014 totaled $220,000, a 29.4% increase over the $170,000 earned in the 2nd Quarter a year earlier. The Bank reported year to date net income of $298,000 as of June 30, 2014, and net income of $122,000 for the 2nd Quarter of 2014.

Total assets grew $9.8 million or 9.3% in the 2nd Quarter of 2014 to $114.5 million, an increased 30.2% over one year ago. Loans increased $4.5 million or 6.0% during the 2nd Quarter to a total of $80.6 million, an increase of 17.0% over the last year. Total deposits increased $10.3 million or 11.9% to $96.9 million during the Quarter, 26.6% higher than one year ago. The 2013 financial results are preliminary and unaudited. "The Bank experienced excellent growth in the 2nd Quarter 2014 as we continued to expand our market share," stated Gary D. Gall, President/CEO. "The opening of our 3rd branch in Fair Oaks Village in late June 2014 has been met with early results which have exceeded our expectations."

Sierra Vista Bank continued to show a strong net interest margin of 4.66% for the 2nd Quarter 2014, with a yield on earning assets of 4.97% and a total cost of funds of 0.35%. "We acknowledge the challenging interest rate environment, but remain pleased with our strong earning asset yield and low cost of funds," stated Gall. "While the net interest margin will likely see some continued compression, we believe the Bank's margin will remain strong compared to peers."

Capital levels at June 30, 2014 remain above the regulatory "well-capitalized" minimum levels:

  • The Tier 1 Leverage Capital ratio: 15.08%
  • The Tier 1 Risk Based Capital ratio: 19.46%
  • The Total Risk Based Capital ratio: 20.72% 

Due to continued improvement in credit quality, the Bank did not pass a provision for loan losses in the first half of 2014. The allowance for loan losses was 1.83% of total loans at June 30, 2014. Non-performing assets continued to decline, totaling $1.1 million at the end of June 2014 compared to $2.0 million at the end of June 2013. Non-performing loans to total loans as a ratio decreased to 1.35% at June 30, 2014 compared to 2.89% on June 30, 2013. All non-accruing loans are paid current under their original terms or are paying as agreed under forbearance agreements.

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 includes forward-looking statements, such as statements regarding increases in non-interest income, future profitability, the bank's ability to address challenges impacting economy in which it operates and future loan losses, which reflect management's current expectations for the bank's future financial results and business prospects. Forward-looking statements are inherently subject to risks and uncertainties, and actual results could differ materially from those currently anticipated due to a number of factors, which include, but are not limited to: (a) changes in competitive pressures among depository and other financial institutions or in the bank's ability to compete effectively against larger financial institutions in its banking market; (b) actions of government regulators or changes in laws, regulations or accounting standards, that adversely affect the bank's business; (c) changes in interest rates and/or inflation; (d) changes in general economic or business conditions and the real estate market in the bank's market; and (e) other unexpected developments or changes in the bank's business or its customers' businesses. Such risks and uncertainties could cause results for subsequent interim periods or for the entire year to differ materially from those indicated. You should not place undue reliance on the 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)   6/30/14     3/31/14     6/30/13  
ASSETS                        
Cash and due from banks   $ 3,226     $ 2,309     $ 2,474  
Federal funds sold     12,465       8,215       1,410  
Investment securities, available-for-sale     14,459       14,490       13,887  
                         
Gross loans     80,633       76,092       68,941  
  Net deferred (fees)     43       (38 )     (34 )
  Allowance for loan losses     (1,475 )     (1,460 )     (1,478 )
    Net loans     79,201       74,594       67,429  
Premises and equipment, net     608       512       726  
Accrued interest receivable     296       301       334  
Other real estate     0       0       1,468  
Other assets     4,260       4,336       226  
TOTAL ASSETS   $ 114,515     $ 104,757     $ 87,954  
                         
LIABILITIES AND STOCKHOLDERS' EQUITY                        
Noninterest-bearing demand deposits   $ 25,402     $ 24,226     $ 23,702  
Interest-bearing demand deposits     3,863       3,526       3,909  
Savings and money market deposits     16,164       15,376       16,450  
Time deposits     51,509       43,498       32,507  
TOTAL DEPOSITS     96,938       86,626       76,568  
                         
FHLB borrowings     1,000       2,000       0  
Accrued interest payable     35       30       20  
Accounts payable and other liabilities     452       345       303  
TOTAL LIABILITIES     98,425       89,001       76,891  
                         
Common stock     21,252       21,189       21,131  
Additional paid-in capital     377       377       377  
Accumulated deficit     (5,411 )     (5,555 )     (10,245 )
Accumulated other comprehensive income     (128 )     (255 )     (200 )
TOTAL STOCKHOLDERS' EQUITY     16,090       15,756       11,063  
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY   $ 114,515     $ 104,757     $ 87,954  
                         
               
SIERRA VISTA BANK              
CONSOLIDATED INCOME STATEMENTS              
(unaudited)              
    For the Three Months Ended:     For the Six Months Ended:  
($000s, except per share data)   6/30/14     3/31/14     6/30/13     6/30/14     6/30/13  
Interest income                                        
  Loans   $ 1,150     $ 1,139     $ 1,056     $ 2,289     $ 2,005  
  Investment securities     95       104       84       199       146  
  Federal Funds sold     5       4       2       9       3  
    Total interest income     1,250       1,247       1,142       2,497       2,154  
                                         
Interest expense                                        
  Deposits     78       79       47       157       92  
  FHLB borrowings     1       1       1       2       3  
    Total interest expense     79       80       48       159       95  
    Net interest income     1,171       1,167       1,094       2,338       2,059  
Provision for loan and lease losses     0       0       110       0       180  
    Net interest income after provision for loan losses     1,171       1,167       984       2,338       1,879  
                                         
Noninterest income                                        
  Customer service and other fees     74       73       114       147       212  
  Gain (loss) on sale of loans     0       79       22       79       22  
  Gain (loss) on sale of other real estate     0       0       (1 )     0       (1 )
  Gain (loss) on available-for-sale securities     2       (3 )     0       (1 )     0  
    Total noninterest income     76       149       135       225       233  
                                         
Noninterest expense                                        
  Salaries and employee benefits     560       526       480       1,086       956  
  Occupancy and equipment     166       184       174       350       332  
  Other general and administrative     301       296       295       597       601  
    Total noninterest expense     1,027       1,006       949       2,033       1,889  
                                         
    Income (loss) before taxes   $ 220     $ 310     $ 170     $ 530     $ 223  
    Taxes     98       134       0       232       0  
    Net income (loss)   $ 122     $ 176     $ 170     $ 298     $ 223  
                                         
Earnings (loss) per share   $ 0.03     $ 0.04     $ 0.05     $ 0.07     $ 0.06  
Tangible book value per share   $ 4.01     $ 3.99     $ 2.83     $ 4.01     $ 2.83  
Net interest margin     4.66 %     4.77 %     5.25 %     4.71 %     5.11 %
                                         
Asset Quality:                        
Non-performing loans to total loans     1.35 %     1.46 %     2.89 %     1.35 %     2.89 %
Non-performing assets to total loans and ORE     1.35 %     1.46 %     4.91 %     1.35 %     4.91 %
Non-performing assets to total assets     0.95 %     1.06 %     3.93 %     0.95 %     3.93 %
Allowance for loan losses to total loans     1.83 %     1.92 %     2.14 %     1.83 %     2.14 %
Allowance for loan losses to non-performing loans     135.69 %     131.41 %     74.31 %     135.69 %     74.31 %
Other real estate   $ 0     $ 0     $ 1,468     $ 0     $ 1,468  
                                         
Selected Financial Ratios:                                        
Tier 1 leverage capital ratio     15.08 %     15.13 %     12.88 %     15.08 %     12.88 %
Tier 1 risk-based capital ratio     19.46 %     20.55 %     16.34 %     19.46 %     16.34 %
Total risk-based capital ratio     20.72 %     21.81 %     17.60 %     20.72 %     17.60 %
                                         

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