Sierra Vista Bank Reports Record 2013 Results

FOLSOM, CA--(Marketwired - Jan 30, 2014) - Sierra Vista Bank (OTCQB: SVBA) today reported net income of $4.7 million and pre-tax earnings of $671,000 for the year 2013. This makes 2013 the best performing year since the Bank opened in 2007, and compares to a loss of ($485,000) in the previous year. The Bank was able to realize a one time accounting adjustment to its deferred tax valuation allowance of approximately $4.0 million during the year. The increase in core earnings to $671,000 is reflective of significant growth, a strong net interest margin, operational efficiencies, as well as continued improvement in the Bank's loan portfolio.

Net income for the 4^th quarter of 2013 totaled $4.2 million, and pre-tax income totaled $220,000, an increase of 479% compared to pre-tax income of $38,000 in the 4^th quarter of 2012. The Bank reported earnings per share of $1.25 for the year 2013 compared to a loss of ($.20) per share in 2012. Earnings per share for 2013 without the benefit of the deferred tax adjustment totaled $.18, compared to a loss of ($.20) in 2012.

Assets grew $23.0 million or 29.1% ending 2013 at $101.7 million compared to $78.8 million at year end 2012. Total loans increased 27.8% to $78.0 million at December 31, 2013 compared to $61.0 million at December 31, 2012. Deposits grew $17.6 million in 2013 to a total of $83.6 million compared to $66.0 million at the end of 2012.

"We are very pleased with the significant improvement in the operating results for 2013" stated Gary D. Gall, President/CEO, "the great efforts of our professional team have paid off in a big way and have positioned us for future growth".

Financial Highlights (at or for the year ended December 31, 2013)

• The net interest margin was 4.99% at December 31, 2013
• Non-interest bearing deposits represented 30.3% of total deposits
• Capital levels increased and remain well above the regulatory "well-capitalized" minimum levels:
  • The Tier 1 Leverage Capital ratio increased to 16.63% compared to 12.48% as of December 31, 2012.
  • The Tier 1 Risk Based Capital ratio improved to 19.98% compared to 15.92% as of December 31, 2012.
  • The Total Risk Based Capital ratio improved to 21.24% compared to 17.19% as of December 31, 2012.
• Non-performing assets as a percent of total assets were 1.12%. compared to 5.14% at December 31, 2012
• The Bank had no OREO at December 31, 2013 compared to $1.6 million at December 31, 2012

Non-performing assets totaled $1.1 million at December 31, 2013 compared to $4.1 million at the end of December 2012. The largest component of the decrease was the sale of the final OREO properties totaling $1.6 million. At December 31, 2013, all non-performing assets are performing either under their original terms as agreed or under a forbearance agreement.

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)				12/31/13				9/30/13				12/31/12
ASSETS
Cash and due from banks				$	4,093			$	3,071			$	3,053
Federal funds sold					515				7,325				1,460
Investment securities, available-for-sale					15,310				13,246				11,858
Gross loans					77,996				68,853				61,025
	Net deferred (fees)				4				(47	)			(31	)
	Allowance for loan losses				(1,447	)			(1,443	)			(1,391	)
		Net loans			76,553				67,363				59,603
Premises and equipment, net					558				592				735
Accrued interest receivable					342				279				277
Other real estate					0				0				1,571
Other assets					4,377				310				234
TOTAL ASSETS				$	101,748			$	92,186			$	78,791
LIABILITIES AND STOCKHOLDERS' EQUITY
Noninterest-bearing demand deposits				$	25,335			$	24,377				20,926
Interest-bearing demand deposits					4,648				5,111				2,846
Savings and money market deposits					14,291				15,992				13,699
Time deposits					39,290				35,163				28,487
TOTAL DEPOSITS					83,564				80,643				65,958
FHLB borrowings					2,500				0				2,500
Accrued interest payable					28				22				16
Accounts payable and other liabilities					198				229				366
TOTAL LIABILITIES					86,290				80,894				68,840
Common stock					21,189				21,187				19,961
Additional paid-in capital					377				377				377
Accumulated deficit					(5,750	)			(10,006	)			(10,476	)
Accumulated other comprehensive income					(358	)			(266	)			89
TOTAL STOCKHOLDERS' EQUITY					15,458				11,292				9,951
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY				$	101,748			$	92,186			$	78,791

SIERRA VISTA BANK
CONSOLIDATED INCOME STATEMENTS
(unaudited)
				For the Three Months Ended:												For the Twelve Months Ended:
($000s, except per share data)				12/31/13				9/30/13				12/31/12				12/31/13				12/31/12
Interest income
	Loans			$	1,098			$	1,085			$	931			$	4,188			$	3,653
	Investment securities				101				80				67				326				291
	Federal Funds sold				3				2				2				9				11
		Total interest income			1,202				1,167				1,000				4,523				3,955
Interest expense
	Deposits				67				58				41				217				207
	FHLB borrowings				0				0				1				3				2
		Total interest expense			67				58				42				220				209
		Net interest income			1,135				1,109				958				4,303				3,746
Provision for loan and lease losses					0				0				80				180				1,030
		Net interest income after provision for loan losses			1,135				1,109				878				4,123				2,716
Noninterest income
	Customer service and other fees				86				135				100				433				432
	Gain (loss) on sale of loans				0				7				0				29				0
	Gain (loss) on sale of other real estate				0				5				0				4				56
	Gain (loss) on available-for-sale securities				0				0				41				0				193
		Total noninterest income			86				147				141				466				681
Noninterest expense
	Salaries and employee benefits				564				500				479				2,021				2,036
	Occupancy and equipment				170				180				156				682				619
	Other general and administrative				267				348				346				1,215				1,227
		Total noninterest expense			1,001				1,028				981				3,918				3,882
		Income (loss) before taxes		$	220			$	228			$	38			$	671			$	(485	)
		Taxes			(4,019	)			0				0				(4,019	)			0
		Net income (loss)		$	4,239			$	228			$	38			$	4,690			$	(485	)
Earnings (loss) per share				$	1.06			$	0.06			$	0.01			$	1.25			$	(0.20	)
Tangible book value per share				$	3.94			$	2.88			$	2.96			$	3.94			$	2.96
Net interest margin					4.87	%			5.06	%			5.07	%			5.04	%			4.92	%
Asset Quality:
Non-performing loans to total loans					1.46	%			2.65	%			4.07	%			1.46	%			4.07	%
Non-performing assets to total loans and ORE					1.46	%			2.65	%			6.47	%			1.46	%			6.47	%
Non-performing assets to total assets					1.12	%			1.98	%			5.14	%			1.12	%			5.14	%
Allowance for loan losses to total loans					1.86	%			2.10	%			2.28	%			1.86	%			2.28	%
Allowance for loan losses to non-performing loans					126.71	%			79.16	%			56.04	%			126.71	%			56.04	%
Other real estate				$	0			$	0			$	1,571			$	0			$	1,571
Selected Financial Ratios:
Tier 1 leverage capital ratio					16.63	%			12.80	%			12.48	%			16.63	%			12.48	%
Tier 1 risk-based capital ratio					19.98	%			16.83	%			15.92	%			19.98	%			15.92	%
Total risk-based capital ratio					21.24	%			18.09	%			17.19	%			21.24	%			17.19	%