Sierra Vista Bank Reports Earnings in 4Q12

Marketwired

FOLSOM, CA--(Marketwire - Jan 28, 2013) - Sierra Vista Bank (OTCQB: SVBA) today reported earnings of $38,000, for the fourth quarter of 2012, compared to $64,000 for fourth quarter 2011. Sierra Vista Bank has now been profitable for nine consecutive months, including the second, third and fourth quarter of 2012. The Bank showed a net loss of $485,000 for the year ending December 31, 2012 due to a large loan loss provision and a specific reserve in the first quarter. All financial results are preliminary and unaudited.

The Bank continued to show a strong net interest margin of 5.07% for the fourth quarter 2012 and 4.92% for the year, fueled by a yield on earning assets of 5.29% and a cost of funds of 0.24%. "We are finding opportunity as our market area continues to experience slow but steady economic improvement," stated Gregory Patton, President & CEO. 

In the third quarter of 2012 the Bank completed a Public Offering increasing capital by over $2 million with an additional $235,000 contributed during the fourth quarter of the year from an Accredited Investor whom the Bank has entered in to an agreement with for an additional $1.4 million subject to regulatory approval. The capital received has substantially strengthened the Bank's balance sheet and increased the capital level on December 31, 2012 to $10 million creating a leverage ratio of 12.48%. This compares to a leverage ratio of 9.02% on March 31, 2012 and 10.01% on December 31, 2011.

Financial Highlights (at or for the quarter ended December 31, 2012)

  • The net interest margin was 5.07% for the fourth quarter and 4.92% for the year.
  • Non-interest bearing deposits represented 31.7% of total deposits at December 31, 2012.
  • Provisions for loan losses for the quarter were $80,000, well below the $165,000 one year earlier.
  • Capital levels increased and remain well above the regulatory "well-capitalized" minimum levels:
    • The Tier 1 Leverage Capital ratio improved to 12.48% compared to 10.01% as of December 31, 2011.
    • The Tier 1 Risk Based Capital ratio improved to 15.92% compared to 13.46% as of December 31, 2011. 
    • The Total Risk Based Capital ratio improved to 17.19% compared to 14.74% as of December 31, 2011. 

Sierra Vista Bank had total assets of $78.8 million at December 31, 2012, compared to $77.9 million at September 30, 2012. Net loans increased to $59.6 million at the end of December compared to $58.4 million at September 30, 2012. Deposits totaled $66.0 million at December 31, 2012, compared to $66.8 million at September 30, 2012. 

Non-performing assets totaled $4.1 million at the end of December 2012 compared to $4.4 million at the end of December 2011. Non-performing assets include loans classified as non-accrual of $2.5 million and real estate owned of $1.6 million at December 31, 2012. The real estate owned balance of $1.6 million includes the Bank's headquarters totaling $1.5 million. Non-performing loans to total loans as a ratio decreased substantially from 6.67% on December 31, 2011 to 4.07% on December 31, 2012. With the exception of $482,000, all non-accruing loans are 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)   12/31/12     09/30/12     12/31/11  
ASSETS                        
Cash and due from banks   $ 3,053     $ 2,856     $ 4,545  
Federal funds sold     1,460       970       4,160  
Investment securities, available-for-sale     11,858       12,762       10,938  
                         
Gross loans     61,025       59,805       61,130  
  Net deferred (fees)     (31 )     (33 )     (39 )
  Allowance for loan losses     (1,391 )     (1,343 )     (2,033 )
    Net loans     59,603       58,429       59,058  
Premises and equipment, net     735       750       813  
Accrued interest receivable     277       247       253  
Other real estate     1,571       1,581       339  
Other assets     234       307       427  
TOTAL ASSETS   $ 78,791     $ 77,902     $ 80,533  
                         
LIABILITIES AND STOCKHOLDERS' EQUITY                        
Noninterest-bearing demand deposits   $ 20,926     $ 23,416     $ 22,024  
Interest-bearing demand deposits     2,846       2,714       1,865  
Savings and money market deposits     13,699       13,439       14,226  
Time deposits     28,487       27,266       31,837  
TOTAL DEPOSITS     65,958       66,835       69,952  
                         
FHLB borrowings     2,500       1,000       2,000  
Accrued interest payable     16       17       31  
Accounts payable and other liabilities     366       349       377  
TOTAL LIABILITIES     68,840       68,201       72,360  
                         
Common stock     19,961       19,727       17,727  
Additional paid-in capital     377       377       377  
Accumulated deficit     (10,476 )     (10,517 )     (10,001 )
Accumulated other comprehensive income     89       114       70  
TOTAL STOCKHOLDERS' EQUITY     9,951       9,701       8,173  
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY   $ 78,791     $ 77,902     $ 80,533  
                         
                         
   
SIERRA VISTA BANK  
CONSOLIDATED INCOME STATEMENTS  
(unaudited)  
             
    For the Three
Months Ended:
    For the Twelve Months Ended:  
($000s, except per share data)   12/31/12     9/30/12     12/31/11     12/31/12     12/31/11  
Interest income                                        
  Loans   $ 931     $ 896     $ 995     $ 3,653     $ 4,147  
  Investment securities     67       67       63       291       339  
  Federal Funds sold     2       2       3       11       11  
    Total interest income     1,000       965       1,061       3,955       4,497  
                                         
Interest expense                                        
  Deposits     41       43       73       207       412  
  FHLB borrowings     1       0       1       2       33  
    Total interest expense     42       43       74       209       445  
    Net interest income     958       922       987       3,746       4,052  
Provision for loan and lease losses     80       60       165       1,030       645  
    Net interest income after provision for loan losses     878       862       822       2,716       3,407  
                                         
Noninterest income                                        
  Customer service and other fees     100       121       66       432       234  
  Gain (loss) on sale of loans     0       0       0       0       15  
  Gain (loss) on sale of other real estate     0       0       0       56       6  
  Gain (loss) on available-for-sale securities     41       20       77       193       301  
    Total noninterest income     141       141       143       681       556  
                                         
Noninterest expense                                        
  Salaries and employee benefits     479       495       453       2,036       1,877  
  Occupancy and equipment     156       157       159       619       665  
  Other general and administrative     346       283       289       1,227       1,262  
    Total noninterest expense     981       935       901       3,882       3,804  
                                           
    Net income (loss)   $ 38     $ 68     $ 64     $ (485 )   $ 159  
                                         
Earnings (loss) per share   $ 0.01     $ 0.03     $ 0.03     $ (0.20 )   $ 0.08  
Tangible book value per share   $ 2.96     $ 3.00     $ 4.02     $ 2.96     $ 4.02  
Net interest margin     5.07 %     4.93 %     5.10 %     4.92 %     5.04 %
                                         
Asset Quality:                        
Non-performing loans to total loans     4.07 %     3.66 %     6.67 %     4.07 %     6.67 %
Non-performing assets to total loans and ORE     6.47 %     6.14 %     7.18 %     6.47 %     7.18 %
Non-performing assets to total assets     5.14 %     4.84 %     5.48 %     5.14 %     5.48 %
Allowance for loan losses to total loans     2.28 %     2.25 %     3.33 %     2.28 %     3.33 %
Allowance for loan losses to non-performing loans     56.04 %     61.30 %     49.89 %     56.04 %     49.89 %
Other real estate   $ 1,571     $ 1,581     $ 339     $ 1,571     $ 339  
                                         
Selected Financial Ratios:                                        
Tier 1 leverage capital ratio     12.48 %     12.16 %     10.01 %     12.48 %     10.01 %
Tier 1 risk-based capital ratio     15.92 %     15.66 %     13.46 %     15.92 %     13.46 %
Total risk-based capital ratio     17.19 %     16.92 %     14.74 %     17.19 %     14.74 %
                                         
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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