Sierra Vista Bank Reports Earnings in 1st Quarter 2013

FOLSOM, CA--(Marketwired - May 7, 2013) - Sierra Vista Bank (OTCQB: SVBA) today reported earnings of $52,000, for the 1^st Quarter of 2013, compared to a loss of ($697,000) for the 1^st Quarter 2012. Sierra Vista Bank has now been profitable for four consecutive quarters.

Total assets grew $6.7 million or 8.5% in the 1^st Quarter 2013 to $85.5 million. Loans increased $3.1 million or 5.1% to a total of $64.1 million, and deposits increased $8.2 million or 12.4% to $74.2 million in the quarter. The Bank's ratio of non-interest bearing deposits to total deposits remained strong at 31.0%. The 2013 financial results are preliminary and unaudited.

The Bank continued to show a strong net interest margin of 4.97% for the 1^st Quarter 2013, with a yield on earning assets of 5.21% and a cost of funds of 0.26%. "We continue to see a growing demand for new lending opportunities," stated Gregory Patton, President & CEO. "Our Bankers are also reaching out to develop and improve the depositor relations within our marketplace. Together, we believe we can maintain this trend of a strong net interest margin while well serving all of our clients."

The provision for loan losses for the 1^st Quarter 2013 totaled $70,000, well below the $810,000 provision in the 1^st Quarter of 2012. The allowance for loan losses was 2.32% of total loans at March 31, 2013.

The capital received in 2012 substantially strengthened the Bank's balance sheet and capital levels. This will be further enhanced in the 2^nd Quarter by a significant capital commitment from an institutional investor.

Capital levels increased and remain well above the regulatory "well-capitalized" minimum levels:

• The Tier 1 Leverage Capital ratio improved to 11.95% compared to 9.02% as of March 31, 2012.
• The Tier 1 Risk Based Capital ratio improved to 15.24% compared to 12.56% as of March 31, 2012.
• The Total Risk Based Capital ratio improved to 16.50% compared to 13.84% as of March 31, 2012.

Non-performing assets totaled $3.8 million at the end of March 2013 compared to $4.7 million at the end of March 2012. Non-performing assets at March 31, 2013 include loans classified as non-accrual of $2.2 million and real estate owned of $1.6 million. The real estate owned balance of $1.6 million includes the real estate housing the Bank's headquarters totaling $1.5 million. Non-performing loans to total loans as a ratio decreased substantially from 5.46% on March 31, 2012 to 3.49% on March 31, 2013. With the exception of $320,000, 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 and has a branch located in the Sam's Town Center in Cameron Park. 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)				3/31/13				12/31/12				3/31/12
ASSETS
Cash and due from banks				$	2,982			$	3,053			$	2,771
Federal funds sold					2,020				1,460				7,590
Investment securities, available-for-sale					14,960				11,858				13,898
Gross loans					64,135				61,025				57,166
	Net deferred (fees)				(34	)			(31	)			(17	)
	Allowance for loan losses				(1,487	)			(1,391	)			(1,966	)
		Net loans			62,614				59,603				55,183
Premises and equipment, net					733				735				809
Accrued interest receivable					296				277				292
Other real estate					1,571				1,571				1,581
Other assets					308				234				593
TOTAL ASSETS				$	85,484			$	78,791			$	82,717
LIABILITIES AND STOCKHOLDERS' EQUITY
Noninterest-bearing demand deposits				$	22,998			$	20,926			$	23,826
Interest-bearing demand deposits					2,908				2,846				2,273
Savings and money market deposits					15,948				13,699				13,515
Time deposits					32,305				28,487				33,308
TOTAL DEPOSITS					74,159				65,958				72,922
FHLB borrowings					1000				2500				2000
Accrued interest payable					19				16				37
Accounts payable and other liabilities					353				366				347
TOTAL LIABILITIES					75,531				68,840				75,306
Common stock					19,961				19,961				17,727
Additional paid-in capital					377				377				377
Accumulated deficit					(10,420	)			(10,476	)			(10,695	)
Accumulated other comprehensive income					35				89				2
TOTAL STOCKHOLDERS' EQUITY					9,953				9,951				7,411
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY				$	85,484			$	78,791			$	82,717

SIERRA VISTA BANK
CONSOLIDATED INCOME STATEMENTS
(unaudited)
				For the Three Months Ended:
($000s, except per share data)				3/31/13				12/31/12				3/31/12
Interest income
	Loans			$	948			$	931			$	930
	Investment securities				62				67				74
	Federal Funds sold				2				2				4
		Total interest income			1,012				1,000				1,008
Interest expense
	Deposits				45				41				68
	FHLB borrowings				2				1				1
		Total interest expense			47				42				69
		Net interest income			965				958				939
Provision for loan and lease losses					70				80				810
		Net interest income after provision for loan losses			895				878				129
Noninterest income
	Customer service and other fees				98				100				86
	Gain (loss) on sale of loans				-				-				-
	Gain (loss) on sale of other real estate				-				-				56
	Gain (loss) on available-for-sale securities				-				41				25
		Total noninterest income			98				141				167
Noninterest expense
	Salaries and employee benefits				477				479				523
	Occupancy and equipment				158				156				155
	Other general and administrative				306				346				315
		Total noninterest expense			941				981				993
		Net income (loss)		$	52			$	38				-$697
Earnings (loss) per share				$	0.02			$	0.01				-$0.35
Tangible book value per share				$	2.98			$	2.96			$	3.68
Net interest margin					4.97	%			5.07	%			4.81	%
Asset Quality:
Non-performing loans to total loans					3.49	%			4.07	%			5.46	%
Non-performing assets to total loans and ORE					5.80	%			6.47	%			8.00	%
Non-performing assets to total assets					4.46	%			5.14	%			5.68	%
Allowance for loan losses to total loans					2.32	%			2.28	%			3.44	%
Allowance for loan losses to non-performing loans					66.38	%			56.04	%			63.01	%
Other real estate				$	1,571			$	1,571			$	1,581
Selected Financial Ratios:
Tier 1 leverage capital ratio					11.95	%			12.48	%			9.02	%
Tier 1 risk-based capital ratio					15.24	%			15.92	%			12.56	%
Total risk-based capital ratio					16.50	%			17.19	%			13.84	%