SAN LUIS OBISPO, CA--(Marketwired - January 29, 2016) - Coast Bancorp ("Coast Bancorp" or the "Company") (CTBP), bank holding company and parent of Coast National Bank (the "Bank"), reports unaudited results:

Consolidated Year Ended December 31, 2015

Net income after tax for the 12 months ended December 31, 2015 totaled $6.8 million or $1.19 per dilutive common share compared to $183,000, or $0.05 per dilutive common share for the year ended December 31, 2014. The significantly higher net income in 2015 primarily was due to the reversal of deferred tax asset valuation allowances at Coast Bancorp and Coast National Bank during the third quarter, resulting in a combined tax benefit of $4.4 million. Also, the Bank sold two buildings, (an OREO property and a surplus administrative office building) for a combined gain on sale of $1.5 million. The Bank also made a reverse provision for loan losses of $500,000 during the third quarter of 2015. Net interest income before provision for loan losses increased $868,000 for the year ended December 31, 2015 or 21.9% over the same period in 2014 as a result of the growth of the loan portfolio and investments. Noninterest income, excluding the extraordinary gain on sale of the real estate of $1.5 million, declined year over year approximately $120,000 primarily due to lower gain on sales of SBA loans and net servicing revenue. Noninterest expense increased $44,000 in the year ended December 31, 2015 compared to the same period in 2014 as a result of higher salary and benefit costs, technology and audit expenses.

Total consolidated assets were $146.8 million at December 31, 2015 compared to $128.3 million at December 31, 2014 for an increase of 14.4%. Net loans grew 26.6% to $92.4 million and investments increased 15.0% to $24.2 million during the year. Total consolidated liabilities of $136.5 million include deposits of $126.4 million, an increase of 9.9% from $115.0 million at December 31, 2014, junior subordinated debt of $7.2 million due in 2037, senior notes for $2.5 million due in 2018, and other liabilities of $382,000. Stockholders' equity increased to $6.7 million or 184.9% at December 31, 2015 compared to December 31, 2014.

4th Quarter 2015

Fourth quarter net income after tax on a consolidated basis totaled $50,000 or $0.01 per dilutive common share compared to a net income of $329,000 or $0.06 for the same period in 2014. The higher net income for the fourth quarter of 2014 was the result of a reverse provision for loan losses of $500,000 that was recorded to bring the Allowance for Loan Losses in line with peers. A reverse provision for loan losses was recorded in the third quarter of 2015. Net interest income before provision for loan losses increased to $1.3 million in the fourth quarter of 2015 compared to $1.0 million in the fourth quarter of 2014. Noninterest income was $56,000 lower in the fourth quarter of 2015 compared to the fourth quarter of 2014 primarily from less gain on sales of SBA loans and lower net servicing revenue. Noninterest expense was $73,000 lower in the fourth quarter of 2015 compared to the same period in 2014 as a result of lower salaries and benefits, regulatory assessments and marketing expenses.

Coast National Bank, a wholly owned subsidiary of Coast Bancorp:

Highlights of December 31, 2015

• Net income of $6.1 million for the year ended December 31, 2015, compared to net income of $513,000 for the same period in 2014.

• Net income after tax of $133,000 for the fourth quarter of 2015, compared to net income of $421,000 for the fourth quarter of 2014 including the $500,000 reverse provision for loan losses.

• Total assets at the Bank as of December 31, 2015 were $145.3 million, or 13.4% higher compared to $128.1 million at December 31, 2014.

• Total deposits increased by 9.7% to $126.8 million at December 31, 2015 from $115.6 million at December 31, 2014.

• Net Loans increased 26.6% to $92.4 million at December 31, 2015 from $73.0 million at December 31, 2014.

• Investment securities increased 15.0% to $24.2 million from $21.1 million at December 31, 2014.

• Total deposits of $126.8 million reflect 95.9% in core deposits and noninterest-bearing demand deposits of 43.8%, up from 94.5% and 42.2% at December 31, 2014, respectively.

• The Allowance for Loan and Lease Loss as a percentage of loans at December 31, 2015 was 1.5% compared to 2.3% at December 31, 2014. A $500,000 reverse provisions in the third quarter of 2015 and the fourth quarter of 2014, bring the level of coverage now comparable to peers and reflects ongoing satisfactory credit quality. Non Performing Assets continued to improve to 0.3% of Net Loans plus OREO at December 31, 2015 compared to 1.9% at December 31, 2014.

• The Tier I leverage capital ratio increased to 12.8% at December 31, 2015 compared to 9.4% at December 31, 2014. The bank is well capitalized.

• Total risk-based capital was 14.0% at December 31, 2015 compared to 15.3% at December 31, 2014. At December 31, 2015, the Bank maintained regulatory capital ratios at levels that would be generally considered "well capitalized" for regulatory purposes.

"This has been a significant year for both the Company and the Bank. In completing the 'turn-around' of the Coast entities in 2015 with core profitability and exciting organic growth in both loans and deposits, the foundation is set for future growth and increased profitability. Operating efficiencies improved along with a continued focus on quality credit practices and maintaining a clean balance sheet. With the heavy lifting behind us, we are poised to grow market share and deliver quality banking products to our community," said President and Chief Executive Officer Anita Robinson.

Established in 1997, Coast National Bank is a locally owned community bank serving consumers and businesses through four local offices serving San Luis Obispo County. With a focus on delivering quality customer service, Coast National Bank provides small business loans and an array of business and personal banking deposit products and other services. For further information, visit www.coastnationalbank.com or call 805.541.0400.

Coast National Bank is an equal housing lender and member FDIC.

This release contains forward-looking statements that reflect management's current views of future events and operations. These forward-looking statements are based on information currently available to the Company as of the date of this release. It is important to note that these forward-looking statements are not guarantees of future performance and involve risks and uncertainties, including, but not limited to, the ability of the Company to implement its strategies.

Additional information about the Coast Bancorp Merger and Where to Find It

In connection with the proposed merger of Sierra Bancorp and Coast Bancorp, Sierra will file with the United States Securities and Exchange Commission ("SEC") a registration statement on Form S-4 to register the shares of Sierra Bancorp common stock to be issued to the shareholders of Coast, which will contain Sierra's prospectus and Coast's proxy statement. Before making any voting or investment decision, investors and security holders of Coast Bancorp are urged to carefully read the entire registration statement and proxy statement/prospectus, when they become available, as well as any amendments or supplements to these documents, because they will contain important information about the proposed transaction. In addition, Sierra and Coast may file other relevant documents concerning the proposed merger with Coast with the SEC.

This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval.

Investors and shareholders may obtain free copies of these documents through the website maintained by the SEC at www.sec.gov. Free copies of the proxy statement/prospectus also may be obtained when it becomes available by directing a request by telephone or mail to Sierra Bancorp, 86 North Main Street, Porterville, California 93257, Attn: Corporate Secretary, telephone (559) 782-4900, or by accessing Sierra's website at www.sierrabancorp.com under "Investor Relations," or by directing a request to Coast Bancorp by telephone or mail to Coast Bancorp, 500 Marsh Street, San Luis Obispo, California 93401, Attn: Corporate Secretary, telephone (805) 541-0400. The information on Sierra Bancorp's and Coast Bancorp's websites are not, and shall not be deemed to be, a part of this release or incorporated into any other filings made by either company with the SEC or otherwise.

Participants in the solicitation

Sierra Bancorp and its directors and executive officers may be deemed to be participants in the solicitation of proxies from the shareholders of Coast Bancorp in connection with the transaction. Information about the directors and executive officers of Sierra is set forth in the definitive proxy statement on Schedule 14A filed with the SEC on April 24, 2015.

Coast and its directors and executive officers may also be deemed to be participants in the solicitation of proxies from the shareholders of Coast in connection with the Merger.

Additional information regarding the interests of these participants and other persons who may be deemed participants in the Merger may be obtained by reading the proxy statement/prospectus regarding the Merger when it becomes available.