FOLSOM, CA--(Marketwired - Feb 2, 2015) - Sierra Vista Bank (OTCBB: SVBA) today reported pre-tax earnings of $844,000 for the year 2014, a 25.8% increase over 2013 pre-tax income of $671,000. Pre-tax earnings for the 4^th Quarter 2014 of $148,000 were impacted by the opening of the Bank's 3^rd branch in June 2014 and were $72,000 or 32.7% lower than 4^th Quarter 2013 pre-tax earnings totaling $220,000. The Bank reported year to date net income of $475,000 as of December 31, 2014, and net income of $87,000 for the 4^th Quarter of 2014.

Total assets grew $20.0 million in 2014 to $121.7 million, representing a 19.6% increase over the previous year. Loans increased $7.6 million in 2014 to $85.6 million, an increase of 9.7% over the last year. Total deposits increased $20.0 million in 2014 to $103.5 million, a 23.9% increase over the prior year-end. The 2014 financial results are preliminary and unaudited. "We are very pleased with the excellent core growth the Bank continues to experience," stated Gary D. Gall, President/CEO.

Sierra Vista Bank continued to show a strong net interest margin of 4.50% for the 4^th Quarter 2014, with a yield on earning assets of 4.83% and a total cost of funds of 0.35%. "The Bank's growth in 2014 of non-interest bearing accounts totaling $5.0 million to $30.3 million at year-end 2014 helped the Bank maintain our strong net interest margin," stated Lesa Fynes, EVP/CFO. "Non-interest bearing deposits ended the year at 29.2% of total deposits and the Bank remains focused in growing these core deposits."

Capital levels at December 31, 2014 remain above the regulatory "well-capitalized" minimum levels:

• The Tier 1 Leverage Capital ratio: 13.47%

• The Tier 1 Risk Based Capital ratio: 18.59%

• The Total Risk Based Capital ratio: 19.85%
  
  

Due to continued improvement in credit quality, the Bank did not pass a provision for loan losses in 2014. The allowance for loan losses was 1.64% of total loans at December 31, 2014. Non-performing assets continued to decline, totaling $995,000 at the end of 2014 compared to $1.1 million at the end of 2013. Non-performing loans to total loans as a ratio decreased to 1.16% at December 31, 2014 compared to 1.46% on December 31, 2013. All non-accruing loans are paid current under their original terms or are paying as agreed under forbearance agreements.

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. The Bank has a branch located in the Sam's Town Center in Cameron Park, and opened its newest branch in Fair Oaks Village in June 2014. 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:
In addition to historical information, this press release may contain forward-looking statements, such as, among others, statements about plans, expectations and goals concerning future growth and performance. Forward-looking statements 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, including the real estate market in California and other factors beyond the Bank's control. Such risks and uncertainties could cause results for subsequent periods or years to differ materially from those indicated. Readers should not place undue reliance on 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.