Sierra Vista Bank Reports Record 2014 Results

FOLSOM, CA--(Marketwired - Feb 2, 2015) - Sierra Vista Bank (OTCBB: SVBA) today reported pre-tax earnings of $844,000 for the year 2014, a 25.8% increase over 2013 pre-tax income of $671,000. Pre-tax earnings for the 4^th Quarter 2014 of $148,000 were impacted by the opening of the Bank's 3^rd branch in June 2014 and were $72,000 or 32.7% lower than 4^th Quarter 2013 pre-tax earnings totaling $220,000. The Bank reported year to date net income of $475,000 as of December 31, 2014, and net income of $87,000 for the 4^th Quarter of 2014.

Total assets grew $20.0 million in 2014 to $121.7 million, representing a 19.6% increase over the previous year. Loans increased $7.6 million in 2014 to $85.6 million, an increase of 9.7% over the last year. Total deposits increased $20.0 million in 2014 to $103.5 million, a 23.9% increase over the prior year-end. The 2014 financial results are preliminary and unaudited. "We are very pleased with the excellent core growth the Bank continues to experience," stated Gary D. Gall, President/CEO. 

Sierra Vista Bank continued to show a strong net interest margin of 4.50% for the 4^th Quarter 2014, with a yield on earning assets of 4.83% and a total cost of funds of 0.35%. "The Bank's growth in 2014 of non-interest bearing accounts totaling $5.0 million to $30.3 million at year-end 2014 helped the Bank maintain our strong net interest margin," stated Lesa Fynes, EVP/CFO. "Non-interest bearing deposits ended the year at 29.2% of total deposits and the Bank remains focused in growing these core deposits."

Capital levels at December 31, 2014 remain above the regulatory "well-capitalized" minimum levels:

• The Tier 1 Leverage Capital ratio: 13.47%
• The Tier 1 Risk Based Capital ratio: 18.59%
• The Total Risk Based Capital ratio: 19.85% 
  
  

Due to continued improvement in credit quality, the Bank did not pass a provision for loan losses in 2014. The allowance for loan losses was 1.64% of total loans at December 31, 2014. Non-performing assets continued to decline, totaling $995,000 at the end of 2014 compared to $1.1 million at the end of 2013. Non-performing loans to total loans as a ratio decreased to 1.16% at December 31, 2014 compared to 1.46% on December 31, 2013. 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. The Bank has a branch located in the Sam's Town Center in Cameron Park, and opened its newest branch in Fair Oaks Village in June 2014. 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 may contain forward-looking statements, such as, among others, statements about plans, expectations and goals concerning future growth and performance. Forward-looking statements are subject to risks and uncertainties. Such risks and uncertainties may include but are not necessarily limited to fluctuations in interest rates, inflation, government regulations and general economic conditions, including the real estate market in California and other factors beyond the Bank's control. Such risks and uncertainties could cause results for subsequent periods or years to differ materially from those indicated. Readers should not place undue reliance on 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)				12/31/14				9/30/14				12/31/13
ASSETS
Cash and due from banks				$	3,957			$	2,831			$	4,093
Federal funds sold					8,620				9,885				515
Investment securities, available-for-sale					16,794				17,135				15,310
Gross loans					85,583				85,992				77,996
	Net deferred (fees)				52				18				4
	Allowance for loan losses				(1,400	)			(1,486	)			(1,447	)
		Net loans			84,235				84,524				76,553
Premises and equipment, net					1,001				915				558
Accrued interest receivable					397				320				342
Other real estate					0				0				0
Other assets					6,685				5,760				4,377
TOTAL ASSETS				$	121,689			$	121,370			$	101,748
LIABILITIES AND STOCKHOLDERS' EQUITY
Noninterest-bearing demand deposits				$	30,278			$	28,332			$	25,335
Interest-bearing demand deposits					5,267				5,451				4,648
Savings and money market deposits					16,140				16,018				14,291
Time deposits					51,864				53,716				39,290
TOTAL DEPOSITS					103,549				103,517				83,564
FHLB borrowings					1,000				1,000				2,500
Accrued interest payable					52				49				28
Accounts payable and other liabilities					664				574				198
TOTAL LIABILITIES					105,265				105,140				86,290
Common stock					21,252				21,252				21,189
Additional paid-in capital					377				377				377
Accumulated deficit					(5,188	)			(5,297	)			(5,750	)
Accumulated other comprehensive income					(17	)			(102	)			(358	)
TOTAL STOCKHOLDERS' EQUITY					16,424				16,230				15,458
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY				$	121,689			$	121,370			$	101,748

SIERRA VISTA BANK
CONSOLIDATED INCOME STATEMENTS
(unaudited)
				For the Three Months Ended:												For the Twelve Months Ended:
($000s, except per share data)				12/31/14				9/30/14				12/31/13				12/31/14				12/31/13
Interest income
	Loans			$	1,257			$	1,199			$	1,098			$	4,744			$	4,188
	Investment securities				102				111				101				412				326
	Federal Funds sold				5				9				3				23				9
		Total interest income			1,364				1,319				1,202				5,179				4,523
Interest expense
	Deposits				93				100				67				350				217
	FHLB borrowings				0				1				0				3				3
		Total interest expense			93				101				67				353				220
		Net interest income			1,271				1,218				1,135				4,826				4,303
Provision for loan and lease losses					0				0				0				0				180
		Net interest income after provision for loan losses			1,271				1,218				1,135				4,826				4,123
Noninterest income
	Customer service and other fees				73				98				86				317				433
	Gain (loss) on sale of loans				0				25				0				104				29
	Gain (loss) on sale of other real estate				0				0				0				0				4
	Gain (loss) on available-for-sale securities				0				0				0				0				0
		Total noninterest income			73				123				86				421				466
Noninterest expense
	Salaries and employee benefits				655				623				564				2,363				2,021
	Occupancy and equipment				210				197				170				757				682
	Other general and administrative				331				355				267				1,283				1,215
		Total noninterest expense			1,196				1,175				1,001				4,403				3,918
		Income (loss) before taxes		$	148			$	166			$	220			$	844			$	671
		Taxes			61				76				(4,019	)			369				(4,019	)
		Net income (loss)		$	87			$	90			$	4,239			$	475			$	4,690
Earnings (loss) per share				$	0.02			$	0.02			$	1.06			$	0.12			$	1.25
Tangible book value per share				$	4.07			$	4.04			$	3.94			$	4.07			$	3.94
Net interest margin					4.50	%			4.28	%			4.87	%			4.55	%			5.04	%
Asset Quality:
Non-performing loans to total loans					1.16	%			1.18	%			1.46	%			1.16	%			1.46	%
Non-performing assets to total loans and ORE					1.16	%			1.18	%			1.46	%			1.16	%			1.46	%
Non-performing assets to total assets					0.82	%			0.84	%			1.12	%			0.82	%			1.12	%
Allowance for loan losses to total loans					1.64	%			1.73	%			1.86	%			1.64	%			1.86	%
Allowance for loan losses to non-performing loans					140.70	%			145.83	%			126.71	%			140.70	%			126.71	%
Other real estate				$	0			$	0			$	0			$	0			$	0
Selected Financial Ratios:
Tier 1 leverage capital ratio					13.47	%			13.54	%			16.63	%			13.47	%			16.63	%
Tier 1 risk-based capital ratio					18.59	%			18.57	%			19.98	%			18.59	%			19.98	%
Total risk-based capital ratio					19.85	%			19.83	%			21.24	%			19.85	%			21.24	%