FOLSOM, CA--(Marketwired - May 7, 2013) - Sierra Vista Bank (OTCQB: [ SVBA ]) today reported earnings of $52,000, for the 1^st Quarter of 2013, compared to a loss of ($697,000) for the 1^st Quarter 2012. Sierra Vista Bank has now been profitable for four consecutive quarters.

Total assets grew $6.7 million or 8.5% in the 1^st Quarter 2013 to $85.5 million. Loans increased $3.1 million or 5.1% to a total of $64.1 million, and deposits increased $8.2 million or 12.4% to $74.2 million in the quarter. The Bank's ratio of non-interest bearing deposits to total deposits remained strong at 31.0%. The 2013 financial results are preliminary and unaudited.

The Bank continued to show a strong net interest margin of 4.97% for the 1^st Quarter 2013, with a yield on earning assets of 5.21% and a cost of funds of 0.26%. "We continue to see a growing demand for new lending opportunities," stated Gregory Patton, President & CEO. "Our Bankers are also reaching out to develop and improve the depositor relations within our marketplace. Together, we believe we can maintain this trend of a strong net interest margin while well serving all of our clients."

The provision for loan losses for the 1^st Quarter 2013 totaled $70,000, well below the $810,000 provision in the 1^st Quarter of 2012. The allowance for loan losses was 2.32% of total loans at March 31, 2013.

The capital received in 2012 substantially strengthened the Bank's balance sheet and capital levels. This will be further enhanced in the 2^nd Quarter by a significant capital commitment from an institutional investor.

Capital levels increased and remain well above the regulatory "well-capitalized" minimum levels:

• The Tier 1 Leverage Capital ratio improved to 11.95% compared to 9.02% as of March 31, 2012.
• The Tier 1 Risk Based Capital ratio improved to 15.24% compared to 12.56% as of March 31, 2012.
• The Total Risk Based Capital ratio improved to 16.50% compared to 13.84% as of March 31, 2012.

Non-performing assets totaled $3.8 million at the end of March 2013 compared to $4.7 million at the end of March 2012. Non-performing assets at March 31, 2013 include loans classified as non-accrual of $2.2 million and real estate owned of $1.6 million. The real estate owned balance of $1.6 million includes the real estate housing the Bank's headquarters totaling $1.5 million. Non-performing loans to total loans as a ratio decreased substantially from 5.46% on March 31, 2012 to 3.49% on March 31, 2013. With the exception of $320,000, 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 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:
In addition to historical information, this press release includes forward-looking statements, such as statements regarding increases in non-interest income, future profitability, the bank's ability to address challenges impacting economy in which it operates and future loan losses, which reflect management's current expectations for the bank's future financial results and business prospects. Forward-looking statements are inherently subject to risks and uncertainties, and actual results could differ materially from those currently anticipated due to a number of factors, which include, but are not limited to: (a) changes in competitive pressures among depository and other financial institutions or in the bank's ability to compete effectively against larger financial institutions in its banking market; (b) actions of government regulators or changes in laws, regulations or accounting standards, that adversely affect the bank's business; (c) changes in interest rates and/or inflation; (d) changes in general economic or business conditions and the real estate market in the bank's market; and (e) other unexpected developments or changes in the bank's business or its customers' businesses. 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.