Sierra Vista Bank Reports 3rd Quarter and Year to Date 2011 Financial Results

FOLSOM, Calif., Nov. 1, 2011 /PRNewswire/ -- Sierra Vista Bank (OTCBB: SVBA) reported its 3rd Quarter and year to date 2011 financial results.  

Sierra Vista Bank reports positive earnings in the 3rd Quarter of 2011 and improved the year to date financial position of the Bank.  The most recent quarter resulted in earnings of $132,000, compared to the 3rd Quarter of 2010 loss of ($1,701,000).  For the 9 months ended 9/30/11 the Bank earned $95,000 compared to a 9 month ended 9/30/10 loss of ($2,540,000).  The 9 month earnings in 2011 is after a loan loss provision expense totaling $480,000, compared to provision expense in the first 9 months of 2010 of $3,009,000.  The Bank's allowance for loan losses at September 30, 2011 was $1.9 million, or 3.01% of total loans.  "We are still in a very tough economic environment for many businesses and families," stated Greg Patton, President/CEO of Sierra Vista Bank. "The Bank's Management and Board of Directors are pleased with the concentrated efforts in working through the issues and challenges we have faced.  We look forward to serving our borrowers and depositors as we proceed through these difficult economic times."

The Bank's net interest margin remains strong ending the 3rd Quarter at 5.29% with the Bank's cost of funds decreasing to .43% and the yield on loans remaining stable.  This compares to a net interest margin at the end of the 3rd Quarter of 2010 of 4.70% and a cost of funds of .89%.

Year to date 2011 revenues were $3.8 million, compared to $4,7 million at the same time last year.  These amounts for 2011 and 2010 include $244,000 and $163,000 respectively in gains on sales of assets.  The Bank's total revenues for the 3rd Quarter of 2011 were $1.4 million, compared to $1.5 million in the 3rd Quarter of 2010, including $231,000 and $61,000 respectively in gains on sales of assets.  The decline in revenues reflects the Bank's strategic re-sizing of the loan portfolio.

As of September 30, 2011, the Bank reported total assets of $82.6 million, a decrease of $16.8 million from September, 2010.  The Bank had total loans at September 30, 2011 of $63.1 million compared to $71.8 million at September 30, 2010, and total deposits of $74.1 million at September 30, 2011 compared to $85.8 million at September 30, 2010.  Non-interest bearing deposits at September 30, 2011 totaled $24.6 million or a strong 33.2% of total deposits.  "We are adjusting the Bank to the conditions we recognize in this economic cycle," noted Lesa Fynes, Chief Financial Officer of Sierra Vista Bank.

The September 30, 2011 Tier 1 Leverage ratio was 9.71%; the Tier 1 Risk Based Capital ratio was 12.80%; and the Total Risk Based Capital ratio was 14.07%, all above the well capitalized ratio levels as defined in the regulations.

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