Sierra Vista Bank (SVBA) in Folsom, Calif., is soldiering on with newly raised capital, though its profit shrank in the fourth quarter.

The $79 million-asset bank's fourth-quarter profit fell 40% from a year earlier, to $38,000, because of a lower net interest margins and declining income. Still, the company had its ninth straight profitable month, continuing a string of success that helped it raise over $2 million in an offering. The bank also secured $1.7 million last month from Taylor International Fund, a hedge fund.

Sierra Vista's fourth-quarter net interest income fell 3% from a year earlier, to $958,000. Its net interest margin contracted by three basis points from the fourth quarter of 2011, to 5.07%.

Asset quality has improved. Nonperforming loans fell 7% from a year earlier. The loan-loss provision fell 52% from a year earlier, to $80,000.

Sierra Vista's noninterest income fell by 1% from a year earlier, to $141,000, as fewer securities gains offset a rise in customer-service fees.

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