SOURCE: Sierra Vista Bank

Sierra Vista Bank

January 30, 2014 08:45 ET

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 4th 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 4th 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 %
                                         
                                         

Contact Information

  • Contacts:
    Gary D. Gall
    President/CEO
    Sierra Vista Bank
    (916) 850-1590
    Email Contact

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