FOLSOM, CA -- (Marketwire) -- 10/26/12 -- 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 Nine Months
For the Three Months Ended: 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%
