Sierra Vista Bank Earns $0.08 per Share in 2011

FOLSOM, Calif., Jan. 27, 2012 /PRNewswire/ -- - Sierra Vista Bank (OTCBB: SVBA) today reported it earned $159,000, or $0.08 per share, in 2011 compared to a loss of ($3,448,000), or ($1.88) per share for 2010.  For the fourth quarter of 2011, Sierra Vista Bank earned $64,000, or $0.03 per share, compared to a loss of ($908,000), or ($0.45) per share for the comparable quarter a year ago.  "Lower provisions for loan losses, lower operating expenses and a continued strong net interest margin contributed to the solid profitability we generated in the last half of the year," said Gregory Patton, President/CEO of Sierra Vista Bank. "We are adjusting to the current environment and are continuing to focus on containing our expenses."

Sierra Vista Bank's net interest margin remains strong, ending the 4th Quarter of 2011 at 4.91%, with its cost of funds decreasing to 0.39% while the yield on loans remains stable.  This compares to a net interest margin at the end of the 4th Quarter of 2010 of 4.90% and a cost of funds of 0.74%.

Financial Highlights (at or for the period ended December 31, 2011)

• The Bank reported its first profitable year since beginning operations in 2007 with fiscal 2011 earnings totaling $0.08 per share.
• The loan portfolio remains well reserved with loan loss reserves to gross loans totaling 3.33% at December 31, 2011 compared to 2.72% one year earlier.
• Capital levels continued to remain well above the regulatory "well-capitalized" minimum levels:
  • Tier 1 leverage ratio was 10.01% at December 31, 2011 compared to 8.22% at December 31, 2010.
  • The Tier 1 Risk Based Capital ratio was 13.46%; at the end of 2011 compared to 11.30% a year ago.
  • The Total Risk Based Capital ratio was 14.74% at December 31, 2011 compared to 12.57% at December 31, 2010.
• Book value improved to $4.06 per share at year end 2011 compared to $3.93 one year earlier.
• Total operating expenses decreased for the full year from $4.48 million in 2010 to $3.80 million in 2011.

Sierra Vista had total assets of $80.5 million at December 31, 2011, a decrease of $8.2 million from December 31, 2010.  The Bank had total loans at December 31, 2011 of $61.1 million compared to $71.1 million at December 31, 2010.  Deposits totaled $70.0 million at year end 2011 compared to $79.3 million at December 31, 2010.  Non-interest bearing deposits totaled $22.0 million or 31.5% of total deposits at December 31, 2011, compared to $24.0 million or 30.2% of total deposits a year ago.  "We are navigating through the conditions we recognize as challenging in this extended economic cycle," noted Lesa Fynes, Chief Financial Officer.

At December 31, 2011, non-performing assets totaled $4.4 million compared to $3.0 million one year earlier.  Non-performing assets include loans classified as non-accrual of $4.1 million and real estate owned of $339,000 at December 31, 2011.  With the exception of $223,000, all non-accruing loans are either paying as agreed and current or paying as agreed under forbearance agreements.  The increase in non-performing assets since December 31, 2010 relates to the addition of one loan on which the Bank has established reserves.  The Bank anticipates remedying this loan within the first quarter of 2012.

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.

SOURCE Sierra Vista Bank