SOURCE: Sierra Vista Bank

Sierra Vista Bank

August 07, 2013 20:52 ET

Sierra Vista Bank Reports Earnings in 2nd Quarter 2013

FOLSOM, CA--(Marketwired - Aug 7, 2013) - Sierra Vista Bank (OTCQB: SVBA) today reported earnings of $170,000 for the 2nd Quarter of 2013, a 62% increase compared to earnings of $105,000 for the 2nd Quarter 2012. Sierra Vista Bank has now been profitable for five consecutive quarters. The Bank reported year to date earnings of $223,000 as of June 30, 2013, compared to a loss of ($592,000) through the first six months of 2012.

Total assets grew $2.5 million or 2.9% in the 2nd Quarter 2013 to $88.0 million, an increase of $9.4 million or 12.0% from June 30, 2012. Loans increased $4.8 million or 7.5% during the 2nd Quarter to a total of $68.9 million, an increase of $13.1 million or 23.5% from the 2nd Quarter 2012. Total deposits increased $2.4 million or 3.2% to $76.6 million in the quarter, an increase of $6.0 million or 8.5% from the prior year. The Bank's ratio of non-interest bearing deposits to total deposits remained strong at 31.0% as of June 30, 2013. The 2013 financial results are preliminary and unaudited.

The Bank continued to show a strong net interest margin of 5.25% for the 2nd Quarter 2013, with a yield on earning assets of 5.48% and a total cost of funds of 0.25%.

The provision for loan losses for the 2nd Quarter 2013 totaled $110,000, compared to an $80,000 provision in the 2nd Quarter of 2012. The allowance for loan losses was 2.14% of total loans at June 30, 2013.

The Bank received an additional $1.3 million in new capital from an institutional investor in the 2nd Quarter 2013, substantially strengthening the Bank's balance sheet and capital levels. "We are experiencing excellent growth this year, and now have the capital base needed to continue this growth in our market place," stated Lesa Fynes, EVP/CFO.

Capital levels at June 30, 2013 increased and remain well above the regulatory "well-capitalized" minimum levels:

  • The Tier 1 Leverage Capital ratio improved to 12.88% compared to 9.25% as of June 30, 2012
  • The Tier 1 Risk Based Capital ratio improved to 16.34% compared to 12.99% as of June 30, 2012
  • The Total Risk Based Capital ratio improved to 17.60% compared to 14.25% as of June 30, 2012

Non-performing assets totaled $3.5 million at the end of June 2013 compared to $3.9 million at the end of June 2012. Non-performing assets at June 30, 2013 include loans classified as non-accrual of $2.0 million, and real estate owned of $1.5 million. The real estate owned balance of $1.5 million includes the real estate housing the Bank's headquarters building in Folsom totaling $1.5 million. Non-performing loans to total loans as a ratio decreased from 4.22% on June 30, 2012 to 2.89% on June 30, 2013. All non-accruing loans with the exception of one loan totaling $117,000 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)   6/30/13     3/31/13     6/30/12  
ASSETS                        
Cash and due from banks   $ 2,474     $ 2,982     $ 3,480  
Federal funds sold     1,410       2,020       4,445  
Investment securities, available-for-sale     13,887       14,960       12,921  
                         
Gross loans     68,941       64,135       55,844  
  Net deferred (fees)     (34 )     (34 )     (23 )
  Allowance for loan losses     (1,478 )     (1,487 )     (1,381 )
    Net loans     67,429       62,614       54,440  
Premises and equipment, net     726       733       786  
Accrued interest receivable     334       296       295  
Other real estate     1,468       1,571       1,581  
Other assets     226       308       579  
TOTAL ASSETS   $ 87,954     $ 85,484     $ 78,527  
                         
LIABILITIES AND STOCKHOLDERS' EQUITY                  
Noninterest-bearing demand deposits   $ 23,702     $ 22,998     $ 24,059  
Interest-bearing demand deposits     3,909       2,908       2,110  
Savings and money market deposits     16,450       15,948       13,659  
Time deposits     32,507       32,305       30,758  
TOTAL DEPOSITS     76,568       74,159       70,586  
                         
FHLB borrowings     0       1000       0  
Accrued interest payable     20       19       25  
Accounts payable and other liabilities     303       353       332  
TOTAL LIABILITIES     76,891       75,531       70,943  
                         
Common stock     21,131       19,961       17,726  
Additional paid-in capital     377       377       377  
Accumulated deficit     (10,245 )     (10,420 )     (10,587 )
Accumulated other comprehensive income     (200 )     35       68  
TOTAL STOCKHOLDERS' EQUITY     11,063       9,953       7,584  
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY   $ 87,954     $ 85,484     $ 78,527  
                               
                               
   
   
SIERRA VISTA BANK  
CONSOLIDATED INCOME STATEMENTS  
(unaudited)  
                               
    For the Three Months Ended:     For the Six Months Ended:  
($000s, except per share data)   6/30/13     3/31/13     6/30/12     6/30/13     6/30/12  
Interest income                                        
  Loans   $ 1,056     $ 948     $ 896     $ 2,005     $ 1,826  
  Investment securities     84       62       83       146       157  
  Federal Funds sold     2       2       3       3       7  
    Total interest income     1,142       1,012       982       2,154       1,990  
                                         
Interest expense                                        
  Deposits     47       45       55       92       123  
  FHLB borrowings     1       2       -       3       1  
    Total interest expense     48       47       55       95       124  
    Net interest income     1,094       965       927       2,059       1,866  
Provision for loan and lease losses     110       70       80       180       890  
    Net interest income after provision for loan losses     984       895       847       1,879       976  
                                         
Noninterest income                                        
  Customer service and other fees     114       98       124       212       210  
  Gain (loss) on sale of loans     22       -       -       22       -  
  Gain (loss) on sale of other real estate     (1 )     -       -       (1 )     56  
  Gain (loss) on available-for-sale securities     -       -       108       -       133  
    Total noninterest income     135       98       232       233       399  
                                         
Noninterest expense                                        
  Salaries and employee benefits     480       477       539       956       1,062  
  Occupancy and equipment     174       158       151       332       306  
  Other general and administrative     295       306       284       601       599  
    Total noninterest expense     949       941       974       1,889       1,967  
                                         
    Net income (loss)   $ 170     $ 52     $ 105     $ 223     $ (592 )
                                         
Earnings (loss) per share   $ 0.05     $ 0.02     $ 0.05     $ 0.06     $ (0.29 )
Tangible book value per share   $ 2.83     $ 2.98     $ 3.73     $ 2.83     $ 3.73  
Net interest margin     5.25 %     4.97 %     4.88 %     5.11 %     4.84 %
                                         
Asset Quality:                        
Non-performing loans to total loans     2.89 %     3.49 %     4.21 %     2.89 %     4.21 %
Non-performing assets to total loans and ORE     4.91 %     5.80 %     6.85 %     4.91 %     6.85 %
Non-performing assets to total assets     3.93 %     4.46 %     5.01 %     3.93 %     5.01 %
Allowance for loan losses to total loans     2.14 %     2.32 %     2.47 %     2.14 %     2.47 %
Allowance for loan losses to non-performing loans     74.31 %     66.38 %     58.69 %     74.31 %     58.69 %
Other real estate   $ 1,468     $ 1,571     $ 1,581     $ 1,468     $ 1,581  
                                         
Selected Financial Ratios:                                        
Tier 1 leverage capital ratio     12.88 %     11.95 %     9.25 %     12.88 %     9.25 %
Tier 1 risk-based capital ratio     16.34 %     15.24 %     12.99 %     16.34 %     12.99 %
Total risk-based capital ratio     17.60 %     16.50 %     14.25 %     17.60 %     14.25 %
                                         
                                         

Contact Information

  • Contacts:
    Brady Whitlow
    Chairman of the Board
    Sierra Vista Bank
    (916) 850-1500
    Email Contact

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