SAN LUIS OBISPO, CA--(Marketwired - April 28, 2016) - Coast Bancorp ("Coast Bancorp" or the "Company") (CTBP), a bank holding company and the parent of Coast National Bank (the "Bank"), reported net income on a consolidated basis available to common shareholders of $35,000 or $0.01 per dilutive common share for the first quarter of 2016 compared to net income of $5,000 for the first quarter of 2015. For comparison purposes, the reported net income is inclusive of non-tax deductible expenses incurred in connection with the pending acquisition and merger with Sierra Bancorp and Coast Bancorp of $78,000 in other non-interest expense. Without the pre-acquisition expenses, adjusted net income for the first quarter of 2016 would be $113,000 or $0.02 per dilutive common share. The increase in net income for the first quarter of 2016 as compared to the first quarter of 2015 was attributed to increased interest income from loans and investments at the bank. Noninterest income declined in the first quarter of 2016 compared to the same period in 2015 as a result of reduced gains on sale of SBA loans and investment securities. Noninterest expense was $16,000 higher in the first quarter of 2016 compared to the first quarter of 2015 due to the $78,000 of merger-related expenses incurred.

Total consolidated assets of $145.3 million at March 31, 2016 compared to $128.4 million at March 31, 2015 represent an increase of 13.2% year over year. Total consolidated deposits increased $9.6 million or 8.3% to $124.6 million at March 31, 2016 compared to the same period in 2015. The $2.0 million of senior notes at March 31, 2015 were refinanced in June 2015 for a new note of $2.5 million due in 2018 at a rate of 6%. Total stockholders' equity increased $6.8 million to $10.5 million at March 31, 2016 compared to $3.7 million at March 31, 2015 as a result of the 2015 annual earnings of $6.8 million, which included (1) the reversal of deferred tax asset valuation allowances resulting in tax benefits of $4.4 million; (2) the sale of one OREO property and a second surplus office building that generated a combined gain of $1.5 million; and (3) a reverse provision for credit losses for a benefit of $500,000.

First Quarter 2016 Highlights of Coast National Bank, a wholly owned subsidiary of Coast Bancorp:

• Net profits of $167,000 for the first quarter of 2016, compared to $97,000 for the first quarter of 2015, a 72% improvement over 2015.

• Bank assets at March 31, 2016 were $143.7 million, or 12.1% higher compared to $128.2 million at March 31, 2015.

• Net Loans increased 24.8% to $94.1 million at March 31, 2016 from $75.4 million at March 31, 2015.

• Total deposits increased 8.1% to $124.8 million at March 31, 2016 compared to $115.5 million at March 31, 2015.

• Deposits at March 31, 2016 reflect core deposits of 94.8%, slightly lower than the 95.6% at March 31, 2015. Noninterest-bearing demand deposits, however, increased to 43.1% of total deposits compared to 41.7% at March 31, 2015.

• The Allowance for Loan and Lease Loss coverage to loans at March 31, 2015 was 1.6% compared to 2.3% at March 31, 2015 due to loan growth and the $500,000 reverse provision for credit losses in 2015. By comparison, our peer group ratio was 1.41% at December 31, 2015, the latest data available. Non performing loans increased to 1.9% of gross loans at March 31, 2016 compared to 0.4% at March 31, 2015, which was due to timing differences in escrow closings.

• The Tier I leverage capital ratio improved to 10.9% at March 31, 2016 compared to 9.6% at March 31, 2015.

• Total risk-based capital was 14.3% at both March 31, 2016 and 2015. Both the Tier 1 and Total risk-based capital ratios are at levels generally considered "well capitalized" for regulatory purposes.

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 filed 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 contains 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 are finalized and 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.