Sierra Vista Bank Reports Record 3rd Quarter 2013 Results

FOLSOM, CA--(Marketwired - Oct 21, 2013) - Sierra Vista Bank (OTCQB: SVBA) today reported a 235% increase in 3rd quarter 2013 earnings of $228,000, or $0.06 per share compared to earnings of $68,000 or $.03 per share in the three months ending September 30, 2012.

Year to date 2013 earnings totaled $451,000 or $0.12 per share compared to a loss of ($524,000) or ($0.24) per share for the same period a year earlier.

"The improved earnings reflect a strong net interest margin, improved asset quality, and solid growth," stated Gary D. Gall, President/CEO.

Financial Highlights (at or for the quarter ended September 30, 2013)

• The net interest margin was 5.06% versus 4.93% the year earlier period.
• Non-interest bearing deposits represented 30.2% of total deposits.
• Capital levels increased and remain well above the regulatory "well-capitalized" minimum levels:
  • The Tier 1 Leverage Capital ratio increased to 12.80% compared to 12.16% as of September 30, 2012.
  • The Tier 1 Risk Based Capital ratio improved to 16.83% compared to 15.66% as of September 30, 2012.
  • The Total Risk Based Capital ratio improved to 18.09% compared to 16.92 as of September 30, 2012.
• Non-performing assets as a percent of total assets were 1.98%.
• The Bank had no OREO at quarter end

Total assets increased 18.3% to $92.2 million at September 30, 2013, compared to $77.9 million at September 30, 2012. Net loans increased 15.3% to $67.4 million at the end of September 30, 2013 compared to $58.4 million at September 30, 2012. Deposits increased 20.7% to $80.6 million at September 30, 2013, compared to $66.8 million at September 30, 2012.

"Our strong growth rate reflects the hard work of our professional staff and the desire of many to bank locally," stated Gall.

Non-performing assets totaled $1.8 million at September 30, 2013 compared to $3.8 million at the end of September 2012. The largest portion of the decrease was the sale of the final OREO properties totaling $1.6 million. At September 30, 2013, all non-performing assets are performing either under their original terms as agreed or 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)				9/30/13				6/30/13				9/30/12
ASSETS
Cash and due from banks				$	3,071			$	2,474			$	2,856
Federal funds sold					7,325				1,410				970
Investment securities, available-for-sale					13,246				13,887				12,762
Gross loans					68,853				68,941				59,805
	Net deferred (fees)				(47	)			(34	)			(33	)
	Allowance for loan losses				(1,443	)			(1,478	)			(1,343	)
		Net loans			67,363				67,429				58,429
Premises and equipment, net					592				726				750
Accrued interest receivable					279				334				247
Other real estate					-				1,468				1,581
Other assets					310				226				307
TOTAL ASSETS				$	92,186			$	87,954			$	77,902
LIABILITIES AND STOCKHOLDERS' EQUITY
Noninterest-bearing demand deposits				$	24,377			$	23,702			$	23,416
Interest-bearing demand deposits					5,111				3,909				2,714
Savings and money market deposits					15,992				16,450				13,439
Time deposits					35,163				32,507				27,266
TOTAL DEPOSITS					80,643				76,568				66,835
FHLB borrowings					0				0				1000
Accrued interest payable					22				20				17
Accounts payable and other liabilities					229				303				349
TOTAL LIABILITIES					80,894				76,891				68,201
Common stock					21,187				21,131				19,727
Additional paid-in capital					377				377				377
Accumulated deficit					(10,006	)			(10,245	)			(10,517	)
Accumulated other comprehensive income					(266	)			(200	)			114
TOTAL STOCKHOLDERS' EQUITY					11,292				11,063				9,701
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY				$	92,186			$	87,954			$	77,902

SIERRA VISTA BANK
CONSOLIDATED INCOME STATEMENTS
(unaudited)
				For the Three Months Ended:												For the Nine Months Ended:
($000s, except per share data)				9/30/13				6/30/13				9/30/12				9/30/13				9/30/12
Interest income
	Loans			$	1,085			$	1,056			$	896			$	3,090			$	2,722
	Investment securities				80				84				67				226				223
	Federal Funds sold				2				2				2				5				10
		Total interest income			1,167				1,142				965				3,321				2,955
Interest expense
	Deposits				58				47				43				150				166
	FHLB borrowings				-				1				-				3				1
		Total interest expense			58				48				43				153				167
		Net interest income			1,109				1,094				922				3,168				2,788
Provision for loan and lease losses					-				110				60				180				950
		Net interest income after provision for loan losses			1,109				984				862				2,988				1,838
Noninterest income
	Customer service and other fees				135				114				121				347				332
	Gain (loss) on sale of loans				7				22				-				29				-
	Gain (loss) on sale of other real estate				5				(1	)			-				4				56
	Gain (loss) on available-for-sale securities				-				-				20				-				152
		Total noninterest income			147				135				141				380				540
Noninterest expense
	Salaries and employee benefits				500				480				495				1,457				1,557
	Occupancy and equipment				180				174				157				512				463
	Other general and administrative				348				295				283				948				882
		Total noninterest expense			1,028				949				935				2,917				2,902
		Net income (loss)		$	228			$	170			$	68			$	451			$	(524	)
Earnings (loss) per share				$	0.06			$	0.05			$	0.03			$	0.12			$	(0.24	)
Tangible book value per share				$	2.88			$	2.83			$	3.00			$	2.88			$	3.00
Net interest margin					5.06	%			5.25	%			4.93	%			5.09	%			4.87	%
Asset Quality:
Non-performing loans to total loans					2.65	%			2.89	%			3.66	%			2.65	%			3.66	%
Non-performing assets to total loans and ORE					2.65	%			4.91	%			6.14	%			2.65	%			6.14	%
Non-performing assets to total assets					1.98	%			3.93	%			4.84	%			1.98	%			4.84	%
Allowance for loan losses to total loans					2.10	%			2.14	%			2.25	%			2.10	%			2.25	%
Allowance for loan losses to non-performing loans					79.16	%			74.31	%			61.30	%			79.16	%			61.30	%
Other real estate				$	0			$	1,468			$	1,581			$	0			$	1,581
Selected Financial Ratios:
Tier 1 leverage capital ratio					12.80	%			12.88	%			12.16	%			12.80	%			12.16	%
Tier 1 risk-based capital ratio					16.83	%			16.34	%			15.66	%			16.83	%			15.66	%
Total risk-based capital ratio					18.09	%			17.60	%			16.92	%			18.09	%			16.92	%