SOURCE: Sierra Vista Bank

Sierra Vista Bank

May 07, 2013 19:35 ET

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 1st Quarter of 2013, compared to a loss of ($697,000) for the 1st Quarter 2012. Sierra Vista Bank has now been profitable for four consecutive quarters.

Total assets grew $6.7 million or 8.5% in the 1st 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 1st 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 1st Quarter 2013 totaled $70,000, well below the $810,000 provision in the 1st 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 2nd 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 %
                         
                         

Contact Information

  • Contacts:
    Gregory Patton
    President/CEO
    Sierra Vista Bank
    (916) 850-1515
    Email Contact

    Lesa Fynes
    EVP/CFO
    Sierra Vista Bank
    (916) 850-1505
    Email Contact