SOURCE: Sierra Vista Bank

Sierra Vista Bank

April 22, 2014 06:30 ET

Sierra Vista Bank Reports Record Earnings in 1st Quarter 2014

FOLSOM, CA--(Marketwired - Apr 22, 2014) - Sierra Vista Bank (OTCQB: SVBA) today reported record pre-tax earnings of $310,000 which represented an increase of 496% from the $52,000 earned in the 1st Quarter of 2013. After tax earnings equaled $176,000. Earnings per share rose to 0.04¢ for the 1st Quarter 2014. 

Total assets for the Quarter ended at $104.8 million, an increase of 23% over the $85.5 million in assets as of March 31, 2013. Loans increased 19% ending the Quarter at $76.1 million. Deposits for the last 12 month period increased $12.5 million or 17%. The Bank's ratio of non-interest bearing deposits to total deposits remained strong at 28.0%. The 2014 financial results are preliminary and unaudited.

The Bank continued to show a strong net interest margin of 4.77% for the 1st Quarter 2014, with a yield on earning assets of 5.09% and a total cost of funds of 0.36%. "Sierra Vista Bank continues to experience strong growth and market expansion. We are experiencing an excellent response to our business model of excellence in service and community support," stated Gary D. Gall, President & CEO. 

Due to significant improvement in credit quality, the Bank did not need to pass any provision for loan losses for the 1st Quarter of 2014, compared to $70,000 in provision expense in the 1st Quarter of 2013. The allowance for loan losses equaled 1.92% of total loans at March 31, 2014.

Capital levels increased and remain well above the regulatory "well-capitalized" minimum levels:

  • The Tier 1 Leverage Capital ratio improved to 15.13% as of March 31, 2014, compared to 11.95% as of March 31, 2013.
  • The Tier 1 Risk Based Capital ratio improved to 20.55% as of March 31, 2014, compared to 15.24% as of March 31, 2013. 
  • The Total Risk Based Capital ratio improved to 21.81% as of March 31, 2014, compared to 16.50% as of March 31, 2013. 

Non-performing assets including loans classified as non-accrual totaled $1.1 million at the end of March 2014 compared to $3.8 million at the end of March 2013. Non-performing loans to total loans as a ratio decreased substantially from 3.49% on March 31, 2013 to 1.46% on March 31, 2014. 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 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)   3/31/14     12/31/13     3/31/13  
ASSETS                        
Cash and due from banks   $ 2,309     $ 4,093     $ 2,982  
Federal funds sold     8,215       515       2,020  
Investment securities, available-for-sale     14,490       15,310       14,960  
                         
Gross loans     76,092       77,996       64,135  
  Net deferred (fees)     (38 )     4       (34 )
  Allowance for loan losses     (1,460 )     (1,447 )     (1,487 )
    Net loans     74,594       76,553       62,614  
Premises and equipment, net     512       558       733  
Accrued interest receivable     301       342       296  
Other real estate     0       0       1,571  
Other assets     4,336       4,377       308  
TOTAL ASSETS   $ 104,757     $ 101,748     $ 85,484  
                         
LIABILITIES AND STOCKHOLDERS' EQUITY                  
Noninterest-bearing demand deposits   $ 24,226     $ 25,335     $ 22,998  
Interest-bearing demand deposits     3,526       4,648       2,908  
Savings and money market deposits     15,376       14,291       15,948  
Time deposits     43,498       39,290       32,305  
TOTAL DEPOSITS     86,626       83,564       74,159  
                         
FHLB borrowings     2,000       2,500       1,000  
Accrued interest payable     30       28       19  
Accounts payable and other liabilities     345       198       353  
TOTAL LIABILITIES     89,001       86,290       75,531  
                         
Common stock     21,189       21,189       19,961  
Additional paid-in capital     377       377       377  
Accumulated deficit     (5,555 )     (5,750 )     (10,420 )
Accumulated other comprehensive income     (255 )     (358 )     35  
TOTAL STOCKHOLDERS' EQUITY     15,756       15,458       9,953  
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY   $ 104,757     $ 101,748     $ 85,484  
                         
                         
                         
SIERRA VISTA BANK  
CONSOLIDATED INCOME STATEMENTS  
(unaudited)  
                   
    For the Three Months Ended:  
($000s, except per share data)   3/31/14     12/31/13     3/31/13  
Interest income                        
  Loans   $ 1,139     $ 1,098     $ 948  
  Investment securities     104       101       62  
  Federal Funds sold     4       3       2  
    Total interest income     1,247       1,202       1,012  
                         
Interest expense                        
  Deposits     79       67       45  
  FHLB borrowings     1       0       2  
    Total interest expense     80       67       47  
    Net interest income     1,167       1,135       965  
Provision for loan and lease losses     0       0       70  
    Net interest income after provision for loan losses     1,167       1,135       895  
                         
Noninterest income                        
  Customer service and other fees     73       86       98  
  Gain (loss) on sale of loans     79       0       0  
  Gain (loss) on sale of other real estate     0       0       0  
  Gain (loss) on available-for-sale securities     (3 )     0       0  
    Total noninterest income     149       86       98  
                         
Noninterest expense                        
  Salaries and employee benefits     526       564       477  
  Occupancy and equipment     184       170       158  
  Other general and administrative     296       267       306  
    Total noninterest expense     1,006       1,001       941  
                         
    Income (loss) before taxes   $ 310     $ 220     $ 52  
    Taxes     134       (4,019 )     0  
    Net income (loss)   $ 176     $ 4,239     $ 52  
                         
Earnings (loss) per share   $ 0.04     $ 1.06     $ 0.02  
Tangible book value per share   $ 3.99     $ 3.94     $ 2.98  
Net interest margin     4.77 %     4.87 %     4.97 %
                         
Asset Quality:                        
Non-performing loans to total loans     1.46 %     1.46 %     3.49 %
Non-performing assets to total loans and ORE     1.46 %     1.46 %     5.80 %
Non-performing assets to total assets     1.06 %     1.12 %     4.46 %
Allowance for loan losses to total loans     1.92 %     1.86 %     2.32 %
Allowance for loan losses to non-performing loans     131.41 %     126.71 %     66.38 %
Other real estate   $ 0     $ 0     $ 1,571  
                         
Selected Financial Ratios:                        
Tier 1 leverage capital ratio     15.13 %     16.63 %     11.95 %
Tier 1 risk-based capital ratio     20.55 %     19.98 %     15.24 %
Total risk-based capital ratio     21.81 %     21.24 %     16.50 %
                         

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