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 1^st Quarter of 2013. After tax earnings equaled $176,000. Earnings per share rose to 0.04¢ for the 1^st 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 1^st 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 1^st Quarter of 2014, compared to $70,000 in provision expense in the 1^st 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	%