Sierra Vista Bank Earns $68,000 in 3Q12

Marketwired

FOLSOM, CA--(Marketwire - Oct 26, 2012) - Sierra Vista Bank (OTCQB: SVBA) today reported earnings of $68,000, or $0.03 per share compared to earnings of $132,000 or $0.07 per share one year earlier. The quarter reflected a strong net interest margin, and stable asset quality. All financial results are preliminary and unaudited. 

Additionally, the Bank completed its public capital offering during the quarter which after expenses increased common equity by a total of $2.0 million. "The additional capital had a positive impact on the Bank's capital ratios which in turn will allow Sierra Vista Bank to grow and increase its lending limits," said Gregory Patton, President and CEO. "This significantly strengthens our financial position and we will be better able to offer quality banking opportunities to the communities we serve," stated Patton.

Financial Highlights (at or for the quarter ended September 30, 2012)

  • The net interest margin was 4.93% for the third quarter versus 4.88% the previous quarter.
  • Non-interest bearing deposits represented 35% of total deposits at September 30, 2012.
  • Operating expenses were down to $935,000 in the third quarter, versus $974,000 one quarter earlier.
  • Provisions for loan losses declined to $60,000, 25% lower than the previous quarter of $80,000, and well below the $225,000 one year earlier.
  • Capital levels increased and remain well above the regulatory "well-capitalized" minimum levels:
    • The Tier 1 Leverage Capital ratio improved to 12.16% compared to 9.25% one quarter earlier.
    • The Tier 1 Risk Based Capital ratio improved to 15.66% compared to 12.99% a quarter earlier.
    • The Total Risk Based Capital ratio improved to 16.92% compared to 14.25% at June 30, 2012.
  • Book value was $3.00 per share compared to $3.73 per share at June 30, 2012.
  • Non-performing assets as a percent of total assets were 4.84% compared to 5.01% one quarter earlier.

Sierra Vista had total assets of $77.9 million at September 30, 2012, compared to $78.5 million at June 30, 2012. Net loans increased to $58.4 million at the end of September compared to $54.4 million at June 30, 2012. Deposits totaled $66.8 million at September 30, 2012, compared to $70.6 million at June 30, 2012. Non-interest bearing deposits remained stable at $23.4 million or 35.0% of total deposits at September 30, 2012, compared to $24.1 million or 34.1% of total deposits at June 30, 2012. 

"With the exception of $128,000, all non-accruing loans are either paying as agreed and current under their original terms, or paying as agreed under forbearance agreements," noted Lesa Fynes, Chief Financial Officer. "We are realizing revenue streams or principal reductions from most non-performing assets including the Bank's $1.6 million in OREO which consists mainly of the Bank's headquarters building in Folsom. 

Non-performing assets totaled $3.77 million at the end of September 2012 compared to $4.41 million at the end of December 2011. Non-performing assets include loans classified as non-accrual of $2.19 million and real estate owned of $1.58 million at September 30, 2012. The real estate owned balance of $1.58 million includes the Bank's headquarters totaling $1.47 million.

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)     9/30/12       6/30/12       9/30/11  
ASSETS                        
Cash and due from banks   $ 2,856     $ 3,480     $ 3,390  
Federal funds sold     970       4,445       5,445  
Investment securities, available-for-sale     12,762       12,921       10,019  
                         
Gross loans     59,805       55,844       63,124  
  Net deferred (fees)     (33 )     (23 )     (39 )
  Allowance for loan losses     (1,343 )     (1,381 )     (1,900 )
    Net loans     58,429       54,440       61,185  
Premises and equipment, net     750       786       853  
Accrued interest receivable     247       295       277  
Other real estate     1,581       1,581       1,085  
Other assets     307       579       395  
TOTAL ASSETS   $ 77,902     $ 78,527     $ 82,649  
                         
LIABILITIES AND STOCKHOLDERS' EQUITY                    
Noninterest-bearing demand deposits   $ 23,416     $ 24,059     $ 24,587  
Interest-bearing demand deposits     2,714       2,110       1,930  
Savings and money market deposits     13,439       13,659       14,465  
Time deposits     27,266       30,758       33,101  
TOTAL DEPOSITS     66,835       70,586       74,083  
                         
FHLB borrowings     1000       0       0  
Accrued interest payable     17       25       28  
Accounts payable and other liabilities     349       332       383  
TOTAL LIABILITIES     68,201       70,943       74,494  
                         
Common stock     19,727       17,727       17,727  
Additional paid-in capital     377       377       377  
Accumulated deficit     (10,517 )     (10,588 )     (10,071 )
Accumulated other comprehensive income     114       68       122  
TOTAL STOCKHOLDERS' EQUITY     9,701       7,584       8,155  
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY   $ 77,902     $ 78,527     $ 82,649  
                         
                         
                         
SIERRA VISTA BANK  
CONSOLIDATED INCOME STATEMENTS  
(unaudited)  
                               
    For the Three Months Ended:     For the Nine Months Ended:  
($000s, except per share data)   9/30/12     6/30/12     9/30/11     9/30/12     9/30/11  
Interest income                                        
  Loans   $ 896     $ 897     $ 1,023     $ 2,722     $ 3,152  
  Investment securities     67       82       97       223       276  
  Federal Funds sold     2       3       2       10       8  
    Total interest income     965       982       1,122       2,955       3,436  
                                         
Interest expense                                        
  Deposits     43       55       86       166       339  
  FHLB borrowings     -       -       22       1       32  
    Total interest expense     43       55       108       167       371  
    Net interest income     922       927       1,014       2,788       3,065  
Provision for loan and lease losses     60       80       225       950       480  
  Net interest income after provision for loan losses     862       847       789       1,838       2,585  
                                         
Noninterest income                                        
  Customer service and other fees     121       125       50       332       168  
  Gain (loss) on sale of loans     -       -       -       -       15  
  Gain (loss) on sale of other real estate     -       -       7       56       5  
  Gain (loss) on available-for-sale securities     20       107       224       152       224  
    Total noninterest income     141       232       281       540       412  
                                         
Noninterest expense                                        
  Salaries and employee benefits     495       539       470       1,557       1,423  
  Occupancy and equipment     157       151       169       463       506  
  Other general and administrative     283       284       299       882       973  
    Total noninterest expense     935       974       938       2,902       2,902  
                                         
    Net income (loss)   $ 68     $ 105     $ 132     $ (524 )   $ 95  
                                         
Earnings (loss) per share   $ 0.03     $ 0.05     $ 0.07     $ (0.24 )   $ 0.05  
Tangible book value per share   $ 3.00     $ 3.73     $ 3.99     $ 3.00     $ 3.99  
Net interest margin     4.93 %     4.88 %     5.09 %     4.87 %     5.02 %
                                         
Asset Quality:                        
Non-performing loans to total loans     3.66 %     4.21 %     3.07 %     3.66 %     3.07 %
Non-performing assets to total loans and ORE     6.14 %     6.85 %     4.71 %     6.14 %     4.71 %
Non-performing assets to total assets     4.84 %     5.01 %     3.66 %     4.84 %     3.66 %
Allowance for loan losses to total loans     2.25 %     2.47 %     3.01 %     2.25 %     3.01 %
Allowance for loan losses to non-performing loans     61.30 %     58.69 %     98.09 %     61.30 %     98.09 %
Other real estate   $ 1,581     $ 1,581     $ 1,085     $ 1,581     $ 1,085  
                                         
Selected Financial Ratios:                                        
Tier 1 leverage capital ratio     12.16 %     9.25 %     9.71 %     12.16 %     9.71 %
Tier 1 risk-based capital ratio     15.66 %     12.99 %     12.80 %     15.66 %     12.80 %
Total risk-based capital ratio     16.92 %     14.25 %     14.07 %     16.92 %     14.07 %
                                         
Contact:

Gregory Patton
President/CEO
Sierra Vista Bank
(916) 850-1515
Email Contact

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

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