Sierra Vista Bank (fka SVBA)

[TRAPPER JIM]

Sierra Vista Bank Reports Record 2014 Results

http://www.marketwired.com/press-release/sierra-vista-bank-reports-record-2014-results-otcbb-svba-1988069.htm

FOLSOM, CA--(Marketwired - Feb 2, 2015) - Sierra Vista Bank (OTCBB: SVBA) today reported pre-tax earnings of $844,000 for the year 2014, a 25.8% increase over 2013 pre-tax income of $671,000. Pre-tax earnings for the 4th Quarter 2014 of $148,000 were impacted by the opening of the Bank's 3rd branch in June 2014 and were $72,000 or 32.7% lower than 4th Quarter 2013 pre-tax earnings totaling $220,000. The Bank reported year to date net income of $475,000 as of December 31, 2014, and net income of $87,000 for the 4th Quarter of 2014.

Total assets grew $20.0 million in 2014 to $121.7 million, representing a 19.6% increase over the previous year. Loans increased $7.6 million in 2014 to $85.6 million, an increase of 9.7% over the last year. Total deposits increased $20.0 million in 2014 to $103.5 million, a 23.9% increase over the prior year-end. The 2014 financial results are preliminary and unaudited. "We are very pleased with the excellent core growth the Bank continues to experience," stated Gary D. Gall, President/CEO.

Sierra Vista Bank continued to show a strong net interest margin of 4.50% for the 4th Quarter 2014, with a yield on earning assets of 4.83% and a total cost of funds of 0.35%. "The Bank's growth in 2014 of non-interest bearing accounts totaling $5.0 million to $30.3 million at year-end 2014 helped the Bank maintain our strong net interest margin," stated Lesa Fynes, EVP/CFO. "Non-interest bearing deposits ended the year at 29.2% of total deposits and the Bank remains focused in growing these core deposits."

Capital levels at December 31, 2014 remain above the regulatory "well-capitalized" minimum levels:
•The Tier 1 Leverage Capital ratio: 13.47%
•The Tier 1 Risk Based Capital ratio: 18.59%
•The Total Risk Based Capital ratio: 19.85%



Due to continued improvement in credit quality, the Bank did not pass a provision for loan losses in 2014. The allowance for loan losses was 1.64% of total loans at December 31, 2014. Non-performing assets continued to decline, totaling $995,000 at the end of 2014 compared to $1.1 million at the end of 2013. Non-performing loans to total loans as a ratio decreased to 1.16% at December 31, 2014 compared to 1.46% on December 31, 2013. All non-accruing loans are paid current under their original terms or are paying as agreed under forbearance agreements.