Sierra Vista Bank Reports 3rd Quarter 2009 Financial Results

Sierra Vista Bank (OTC Bulletin Board: SVBA), recently announced its financial results for the Quarter ending September 30, 2009. Assets increased during the 3rd Quarter by $4.7 million to $91.9 million; deposits increased by $3.2 million to $75.7 million; and loans increased by $10.1 million to $72.0 million. Gregory Patton, President and CEO noted:

"There continue to be good clients looking for a lending or deposit home with bankers who understand and care about their financial success. We've been successful at finding a number of those during this quarter."

Year over year growth for assets was $36.3 million or 65.3%; deposits increased $34.6 million or 84.2%; and loans increased $28.4 million or 65.2%.

Total revenues for the 3rd Quarter 2009 were $1,371,000, an 87.6% increase when compared to $731,000 in the 3rd Quarter 2008. Net interest income increased in the 3rd Quarter to $890,000, double from the $443,000 in the 3rd Quarter 2008. The Bank continues to be able to lower its cost of funds enough to increase the net interest margin to over 4.0% at the end of the 3rd Quarter. This was accomplished even in a flat loan rate environment. The total loan loss provision for the 3 months was $1,134,000, bringing the reserve to 2.31% of total loans. The Bank's non-accrual loans at September 30, 2009 totaled $2,807,000; an increase of $137,000 over the June 30, 2009 non-accrual loan total. Management is actively working with each credit and has reserved or charged off any amounts we believe to be in excess of a reasonable recovery estimate. Total loans charged off in the 3rd Quarter of 2009 were $528,000 which included four loans, one of which became uncollectible and three were written down to market or collateralized value. "The economic conditions and the length of this recession have and will continue to impact good people who were operating good businesses. We are going to be aggressive in our identification and reservation of funds to protect the future of the Bank," stated Patton.

Total revenues for the first 9 months of 2009 were $3,744,000 compared to $1,917,000 for the 9 months ending September 30, 2008 or a 95.3% increase. Net interest income for the first 9 months of 2009 was $2,217,000 compared to $1,173,000 at September 30, 2008 or an 89.0% increase. Year to date loss for the first 9 months of 2009 was ($2,018,156) compared to a net loss at September 30, 2008 of ($1,236,251). The increase in costs for the 2009 period over 2008 are related to both additional provision for loan losses, an increase to the general loan loss reserve, and operating the new branch in Cameron Park which opened in November 2008. "It is a challenging time to be in a start up mode but we are progressing nicely toward a strong financial future," noted Patton.

Non-interest expense decreased in the 3rd Quarter of 2009 to $1,086,000 from $1,090,000 in the 2nd Quarter 2009. Lesa Fynes, Executive Vice President and Chief Financial Officer commented, "The Bank continues to grow into its fixed operating and overhead costs." The net loss for the 3rd Quarter of 2009 totaled ($1,177,391) compared to a loss in the 2nd Quarter of ($336,676). The 3rd Quarter loss of ($1,177,391) includes the loan loss provision for the quarter of $1,134,000.

Management continues to closely monitor every area of the Bank to ensure overall profitability and loan quality as it continues into the final quarter of the year.

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 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 and is committed to community philanthropy. Additional information about Sierra Vista Bank can be found at website 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.