Sierra Vista Bank Reports 4th Quarter Profitability and $105 Million in Assets

FOLSOM, Calif., Feb. 3 /PRNewswire-FirstCall/ -- Sierra Vista Bank (OTC Bulletin Board: SVBA) announced after 33 months of operations the Bank has reached its first Quarter of profitability noting the Bank had profits in each of the three months in the 4th Quarter of 2009.  The company earned $36,187 in the Quarter ended December 31, 2009.   This is compared to a loss of $1.3 million in the same period of 2008.  Lesa Fynes EVP/CFO stated, "This is truly a milestone for the Bank, to reach monthly profitability on a core earnings basis for three months in a row."  The company has reached a size where on a monthly basis the Bank is earning enough revenues to cover its non-interest expenses, including a provision to the loan loss reserve deemed appropriate for the current challenging economic lending environment.  "It is a priority for the Bank to strengthen its loan loss reserve in these times of economic uncertainty," stated Greg Patton, President/CEO.

Total revenues for the 4th Quarter of 2009 were $1.2 million compared to $522,000 for the 4th Quarter of 2008.

The Bank ended the year with $105.0 million in assets compared to $69.5 million at December 31, 2008 for total growth of $35.5 million or 51.1%.  Deposits increased to $87.7 million at December 31, 2009 compared to $54.7 million at December 31, 2008 for total deposit growth of $33.0 million or 60.3% annual growth.  Loan totals grew to $77.4 million at December 31, 2009 compared to $48.9 million at December 31, 2008 for total loan growth of $28.5 million or 58.3%.  Greg Patton commented, "The Bank actually made 265 loans in 2009 totaling $70.3 million which included renewals.  While the lending climate has changed and the underwriting standards have increased, we have found credit worthy loans in our area, thus, we've had the opportunity to lend to and support our local customer base."  

The total loan loss expense for 2009 was $1.7 million and consisted of charged off loans totaling $1.1 million, as well as the loan loss provision of approximately $600,000.  The Bank continues to aggressively pursue the collection of these loan charge offs.  The Bank did have loan recoveries totaling $14,000 for the year 2009.

The Bank had no past due loans at December 31, 2009 and non-accrual loans totaled $932,000.  The majority of the non-accrual loans were one single family residence which is currently listed for sale and, while the loan is on non-accrual, the borrower is still making payments to the Bank.

The net loss for the year totaled $1.98 million compared to a loss for 2008 of $2.58 million.  

While the current environment will provide continued challenges in the lending area, the Bank believes it is positioned to handle those challenges and continue to grow and maintain its core earnings base.

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:

This release may contain forward-looking statements that are subject to risks and uncertainties. Such risks and uncertainties may include but are not necessarily limited to fluctuations in interest rates, inflation, government regulations and general economic conditions, and competition within the business areas in which the Bank will be conducting its operations, including the real estate market in California and other factors beyond the Bank's control.  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
                       Financial Highlights – 4th Quarter 2009
                                    (Unaudited)
    
    
    Balance Sheet (000's)
    December 31st                               2009         2008       %
                                              --------      -------    ---
    Total Assets                              $105,014      $69,515    51%
    Total Loans (Gross)                         77,440       48,937    58%
    Total Deposits                              87,708       54,744    60%
    
    
    
    Income Statement
    For the 3 Months Ended December 31st       2009         2008       %
                                            ----------   ----------   ----
    Interest Income                         $1,363,538     $908,162    50%
    Interest Expense                           325,385      402,679   -19%
    Net Interest Income                      1,038,153      505,483   105%
    Provision for Loan Losses                  184,000      315,000   -42%
    Non-Interest Income                        190,930     (483,248)  140%
    Non-Interest Expense                     1,008,896    1,046,176    -4%
    Net Income (Loss)                           36,187   (1,338,941)  103%
    
    
    
    Income Statement
    For the 12 Months Ended December 31st      2009        2008         %
                                            ----------   ----------    ---
    Interest Income                         $4,625,704   $2,790,697    66%
    Interest Expense                         1,370,272    1,112,201    23%
    Net Interest Income                      3,255,432    1,678,497    94%
    Provision for Loan Losses                1,689,000      634,000   166%
    Non-Interest Income                        673,155     (448,508)  250%
    Non-Interest Expense                     4,221,556    3,171,179    33%
    Net Income (Loss)                       (1,981,968)  (2,575,190)  -23%
    
    
    
    Ratios
    December 31st                                 2009          2008
                                                 ------        ------
    Leverage Ratio                                9.33%       15.21%
    Tier 1 Risk-Based Capital                    11.20%       19.18%
    Total Risk-Based Capital                     12.45%       20.43%
    Loans to Deposits                            88.29%       89.39%

SOURCE Sierra Vista Bank