AndhraNews.net
Home » Business News » 2014 » April » April 22, 2014

Sierra Vista Bank Reports Record Earnings in 1st Quarter 2014


April 22, 2014 - Folsom, CA

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

Contacts:
Gary D. Gall
President/CEO
Sierra Vista Bank
(916) 850-1590
Email Contact

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

MarketWire

Comment on this story

Share