SOURCE: Sierra Vista Bank

Sierra Vista Bank

November 03, 2014 19:59 ET

Sierra Vista Bank Reports Earnings Growth of 54% Through 9 Months of 2014

FOLSOM, CA--(Marketwired - Nov 3, 2014) - Sierra Vista Bank (OTCQB: SVBA) today reported pre-tax earnings of $696,000 for the nine month period ending September 30, 2014, a 54.3% increase over the same nine month period in 2013 of $451,000. Pre-tax earnings for the 3rd Quarter 2014 totaling $166,000 were impacted by the opening of the Bank's 3rd branch in June 2014. The 3rd Quarter 2014 earnings were $12,000 or 6.7% lower than 3rd Quarter 2013 adjusted pre-tax earnings totaling $178,000 (adjusted for a one time $50,000 gain). The Bank reported year to date net income of $388,000 as of September 30, 2014, and net income of $90,000 for the 3rd Quarter of 2014.

Total assets grew $6.9 million or 6.0% in the 3rd Quarter of 2014 to $121.4 million, representing a 31.7% increase over one year ago. Loans increased $5.4 million or 6.6% during the 3rd Quarter to a total of $86.0 million, an increase of 24.9% over the last year. Total deposits increased $6.6 million or 6.8% to $103.5 million during the Quarter, 28.4% higher than one year ago. The 2014 financial results are preliminary and unaudited. "The Bank experienced strong growth in the 3rd 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 excellent results."

Sierra Vista Bank continued to show a strong net interest margin of 4.28% for the 3rd Quarter 2014, with a yield on earning assets of 4.64% and a total cost of funds of 0.38%. "Although the interest rate environment remains challenging, the Bank continues to show a strong earning asset yield and low cost of funds," stated Lesa Fynes, EVP/CFO. "While we have experienced some net interest margin compression, we believe the Bank's interest margin will continue to outperform peers."

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

  • The Tier 1 Leverage Capital ratio: 13.54%
  • The Tier 1 Risk Based Capital ratio: 18.57%
  • The Total Risk Based Capital ratio: 19.83%

Due to continued improvement in credit quality, the Bank did not pass a provision for loan losses in the first nine months of 2014. The allowance for loan losses was 1.73% of total loans at September 30, 2014. Non-performing assets continued to decline, totaling $1.0 million at the end of September 2014 compared to $1.8 million at the end of September 2013. Non-performing loans to total loans as a ratio decreased to 1.18% at September 30, 2014 compared to 2.65% on September 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)   9/30/14     6/30/14     9/30/13  
ASSETS                        
Cash and due from banks   $ 2,831     $ 3,226     $ 3,071  
Federal funds sold     9,885       12,465       7,325  
Investment securities, available-for-sale     17,135       14,459       13,246  
                         
Gross loans     85,992       80,633       68,853  
  Net deferred (fees)     18       43       (47 )
  Allowance for loan losses     (1,486 )     (1,475 )     (1,443 )
    Net loans     84,524       79,201       67,363  
Premises and equipment, net     915       608       592  
Accrued interest receivable     320       296       279  
Other real estate     0       0       0  
Other assets     5,760       4,260       310  
TOTAL ASSETS   $ 121,370     $ 114,515     $ 92,186  
                         
LIABILITIES AND STOCKHOLDERS' EQUITY                        
Noninterest-bearing demand deposits   $ 28,332     $ 25,402     $ 24,377  
Interest-bearing demand deposits     5,451       3,863       5,111  
Savings and money market deposits     16,018       16,164       15,992  
Time deposits     53,716       51,509       35,163  
TOTAL DEPOSITS     103,517       96,938       80,643  
                         
FHLB borrowings     1,000       1,000       0  
Accrued interest payable     49       35       22  
Accounts payable and other liabilities     574       452       229  
TOTAL LIABILITIES     105,140       98,425       80,894  
                         
Common stock     21,252       21,252       21,187  
Additional paid-in capital     377       377       377  
Accumulated deficit     (5,297 )     (5,411 )     (10,006 )
Accumulated other comprehensive income     (102 )     (128 )     (266 )
TOTAL STOCKHOLDERS' EQUITY     16,230       16,090       11,292  
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY   $ 121,370     $ 114,515     $ 92,186  
                         
                         
   
   
SIERRA VISTA BANK  
CONSOLIDATED INCOME STATEMENTS  
(unaudited)  
   
    For the Three Months Ended:     For the Nine Months Ended:  
($000s, except per share data)   9/30/14     6/30/14     9/30/13     9/30/14     9/30/13  
Interest income                                        
  Loans   $ 1,199     $ 1,150     $ 1,085     $ 3,487     $ 3,090  
  Investment securities     111       95       80       310       226  
  Federal Funds sold     9       5       2       18       5  
    Total interest income     1,319       1,250       1,167       3,815       3,321  
                                         
Interest expense                                        
  Deposits     100       78       58       257       150  
  FHLB borrowings     1       1       0       3       3  
    Total interest expense     101       79       58       260       153  
    Net interest income     1,218       1,171       1,109       3,555       3,168  
Provision for loan and lease losses     0       0       0       0       180  
  Net interest income after provision for loan losses     1,218       1,171       1,109       3,555       2,988  
                                         
Noninterest income                                        
  Customer service and other fees     98       74       135       244       347  
  Gain (loss) on sale of loans     25       0       7       104       29  
  Gain (loss) on sale of other real estate     0       0       5       0       4  
  Gain (loss) on available-for-sale securities     0       2       0       0       0  
    Total noninterest income     123       76       147       348       380  
                                         
Noninterest expense                                        
  Salaries and employee benefits     623       560       500       1,708       1,457  
  Occupancy and equipment     197       166       180       547       512  
  Other general and administrative     355       301       348       952       948  
    Total noninterest expense     1,175       1,027       1,028       3,207       2,917  
                                         
    Income (loss) before taxes   $ 166     $ 220     $ 228     $ 696     $ 451  
    Taxes     76       98       0       308       0  
    Net income (loss)   $ 90     $ 122     $ 228     $ 388     $ 451  
                                         
Earnings (loss) per share   $ 0.02     $ 0.03     $ 0.06     $ 0.10     $ 0.12  
Tangible book value per share   $ 4.04     $ 4.01     $ 2.88     $ 4.04     $ 2.88  
Net interest margin     4.28 %     4.66 %     5.06 %     4.57 %     5.09 %
                                         
Asset Quality:                                        
Non-performing loans to total loans     1.18 %     1.35 %     2.65 %     1.18 %     2.65 %
Non-performing assets to total loans and ORE     1.18 %     1.35 %     2.65 %     1.18 %     2.65 %
Non-performing assets to total assets     0.84 %     0.95 %     1.98 %     0.84 %     1.98 %
Allowance for loan losses to total loans     1.73 %     1.83 %     2.10 %     1.73 %     2.10 %
Allowance for loan losses to non-performing loans     145.83 %     135.69 %     79.16 %     145.83 %     79.16 %
Other real estate   $ 0     $ 0     $ 0     $ 0     $ 0  
                                         
Selected Financial Ratios:                                        
Tier 1 leverage capital ratio     13.54 %     15.08 %     12.80 %     13.54 %     12.80 %
Tier 1 risk-based capital ratio     18.57 %     19.46 %     16.83 %     18.57 %     16.83 %
Total risk-based capital ratio     19.83 %     20.72 %     18.09 %     19.83 %     18.09 %
                                         
                                         

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