Sierra Vista Bank (fka SVBA)

[Enterprising Investor]

Sierra Vista Bank Reports 2nd Quarter 2015 Financial Results (7/28/15)

FOLSOM, CA--(Marketwired - Jul 28, 2015) - Sierra Vista Bank (OTCQB: SVBA) today reported net income for the 2nd Quarter of $132,000, compared to net income of $122,000 for the same period a year ago, representing an increase of 8.2%. This also represented an increase of 16.8% over the $113,000 profit made in the 1st Quarter of 2015. Net income year to date was $245,000, compared to $298,000 for the first half of 2014. Earnings for the first half of 2015 were impacted by the opening of the Bank's 3rd branch in June 2014 as well as the current interest rate environment. The Bank is pleased to report that our Fair Oaks office has shown significant growth in its first twelve months of operation and ended the quarter with over $22.1 million in deposits.

The Bank's total assets grew $4.1 million during the 2nd Quarter 2015 and $26.5 million over the last year to a total of $141.0 million, representing a 23.2% increase over the previous year. Loans increased $8.6 million in the 2nd Quarter to $100.3 million, an increase of 9.3% during the quarter and 24.4% over the past year. Total deposits increased $3.8 million in the 2nd Quarter and $25.9 million over the last year to $122.9 million, a 26.7% increase over June 30, 2014. The Bank ended the quarter without any borrowings. The 2nd Quarter 2015 financial results are preliminary and unaudited. "We are very pleased with our solid growth in core deposits and loans resulting in a strong net interest margin which ranks at the top of the Bank's peer group," stated Gary D. Gall, President/CEO.

Sierra Vista Bank continues to show a strong net interest margin which equaled 4.23% for the 2nd Quarter 2015, with a yield on earning assets of 4.53% and a total cost of funds of 0.33%. Non-interest bearing deposits totaled $36.1 million as of the end of the 2nd Quarter 2015, an increase of 42.0% over the same point last year. "This has made a significant contribution to our net interest income which will continue to have a positive impact on earnings," stated Lesa Fynes, EVP/CFO. "Non-interest bearing deposits ended the quarter at 29.4% of total deposits as the Bank remains focused on growing its core business."

Non-interest income totaled $134,000 for the quarter representing an increase of 76.3% over the same period in 2014.

Capital levels at June 30, 2015 remain above the regulatory "well-capitalized" minimum levels:

•The Tier 1 Leverage ratio: 12.59%

•The Common Equity Tier 1 Capital ratio: 15.92%

•The Tier 1 Capital ratio: 15.92%

•The Total Capital ratio: 17.17%

Credit quality continued to improve during the quarter. The Bank passed $15,000 in provisions for loan losses during the 2nd Quarter of 2015 due to our loan growth. The allowance for loan losses equaled 1.44% of total loans as of June 30, 2015. Non-performing assets continued to decline, totaling $946,000 as of June 30, 2015, compared to $1.1 million for the same period last year. Non-performing loans to total loans as a ratio decreased to .94% at quarter end, compared to 1.35% on June 30, 2014.

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. The Bank has a branch located in the Sam's Town Center in Cameron Park, and opened its newest branch in Fair Oaks Village in June 2014. 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 [phone].

http://www.marketwired.com/press-release/sierra-vista-bank-reports-2nd-quarter-2015-financial-results-otcqb-svba-2042749.htm