Sierra Bancorp (Nasdaq: BSRR), parent of Bank of the Sierra,
today announced its unaudited financial results for the three- and
six-month periods ended June 30, 2023. Sierra Bancorp reported
consolidated net income of $9.9 million, or $0.67 per diluted
share, for the second quarter of 2023, compared to $9.2 million, or
$0.61 per diluted share, in the second quarter of 2022. On a
linked-quarter (three months ended March 31, 2023) basis, the
Company increased diluted earnings per share by $0.09, or 15%.
Highlights for the second quarter of 2023:
- Improved Earnings
- Net Income of $9.9 million, up 13% versus the first quarter of
2023 (the prior linked quarter)
- Increased Return on Average Assets to 1.07% from 0.97% in the
prior linked quarter
- Higher Return on Average Equity of 13.06% compared to 11.53% in
the prior linked quarter
- Improved net interest income by $0.2 million as compared to the
prior linked quarter
- Solid Asset Quality
- Total Nonperforming Loans of $1.1 million, or 0.05% of total
gross loans
- No foreclosed assets at June 30, 2023
- Net Charge-offs remained low at $0.2 million
- Stable Allowance for Credit Losses on loans of $23.0
million
- Stable Deposits & Liquidity
- Overall primary and secondary liquidity sources increased
slightly to $2.59 billion at June 30, 2023
- Total deposits declined by 1% during the quarter, but increased
by $72.6 million, or 3% year-to-date
- Noninterest-bearing deposits increased by $24.8 million and
represent 37% of total deposits
- Uninsured deposits declined from 30% to 27% of total deposit
balances during the quarter
- Strong Capital and Solid Asset Growth
- Record level of Total Assets at $3.76 billion, up 2% from prior
linked quarter and 4% year-to-date
- Maintained a diversified investment portfolio designed for
interest rate risk management and liquidity
- Total Loans grew by $60.4 million, or 3% during the
quarter
- Repurchased 235,148 shares of stock during the quarter
- Tangible Book Value per share increased by 3% to $18.93 per
share at June 30, 2023
- Strong regulatory Community Bank Leverage Ratio of 10.86% for
our subsidiary Bank
- Tangible Common Equity Ratio of 7.5% on a consolidated basis
and 9.3% for our subsidiary bank
- Dividend declared of $0.23 per share, payable on August 14,
2023
“Success isn't always about greatness. It's
about consistency. Consistent hard work leads to success. Greatness
will come.” - Dwayne Johnson
“Our community-centric approach to banking has benefitted the
Bank and our customers for more than 45 years,” stated Kevin
McPhaill, CEO and President. “We regularly evaluate our strategic
plan based on market trends and always focus on maintaining strong
fundamentals in our business. This approach helped us finish the
second quarter strong with improved earnings including higher net
interest income, good loan growth, stable deposit balances, higher
capital, and continued strong asset quality. We are proud of our
entire team working together to provide our customers with
exceptional service that led to our solid performance during the
second quarter. The strength and power of community-focused banking
gives us great reasons to be excited about our opportunities for
continued growth in the second half of 2023,” concluded Mr.
McPhaill.
For the first six months of 2023, the Company recognized net
income of $18.7 million, or $1.26 per diluted share, as compared to
$16.6 million, or $1.10 per diluted share, for the same period in
2022. The Company's improved financial performance metrics for the
first half of 2023 include an annualized return on average equity
of 12.30%, a return on average assets of 1.02%, and net interest
margin of 3.43%, as compared to an annualized return on average
equity of 10.10%, a return on average assets of 0.98%, and a net
interest margin of 3.31% for the same period in 2022.
Quarterly Income Changes (comparisons to the second quarter
of 2022)
- Net income increased by $0.7 million, or 8%, to $9.9 million
due to higher net interest income and a decrease in provision for
credit losses partially offset by lower noninterest income and
higher expenses.
- The $1.7 million, or 7%, increase in net interest income is due
to an $12.7 million increase in interest income partially offset by
an $10.9 million increase in interest expense. There was an
increase in investment securities which contributed $10.0 million
to the favorable interest income variance. This increase in
investments primarily consisted of floating rate collateralized
loan obligations (CLOs), which contributed to $7.3 million, or
57.5%, of the interest income favorable variance, partially offset
by an unfavorable increase in interest expense due to a shift of
deposit balances into higher cost time certificates and an increase
in borrowed funds.
- Noninterest income decreased $2.4 million primarily from
nonrecurring gains on the sale of other assets in the second
quarter of 2022.
- Asset quality improved as demonstrated by a significant decline
in non-performing assets to gross loans plus foreclosed assets.
This ratio fell to 0.05% at June 30, 2023, from 1.47% at the same
period in 2022. Nonperforming assets declined substantially from
$29.7 million at June 30, 2022, to $1.1 million at June 30, 2023, a
decline of 96%.
- Provision for credit losses declined by $2.5 million. The
provision for credit losses for loans and leases was favorably
impacted by an improvement in the qualitative reserve rate
component as well as continued lower charge-offs.
- Liquidity continues to be substantial with the primary
liquidity ratio at 32.2% and $2.6 billion in overall available
liquidity at June 30, 2023. Further, overall deposits continued to
increase with an additional 2.6% added in the first half of
2023.
- All capital ratios were above the regulatory requirements for a
well-capitalized institution. The Community Bank Leverage ratio was
10.03% consolidated and 10.86% for the Bank.
- Sierra Bancorp repurchased 235,148 shares totaling $3.8 million
in the second quarter of 2023.
- Our Board of Directors declared a cash dividend of $0.23 per
share on July 20, 2023. This is the 98th consecutive quarterly
dividend paid by Sierra Bancorp. The cash dividend is payable on
August 14, 2023, to shareholders of record at the close of business
on July 31, 2023.
Linked Quarter Income Changes (comparisons to the three
months ended March 31, 2023)
- Net income improved by $1.2 million, or 13%, driven mostly by a
$1.4 million increase in noninterest income, augmented by favorable
changes in the provision for credit losses. Noninterest income
increased by $1.4 million due to increased service charges on
deposit accounts for $0.3 million, a gain on the sale of
investments taking advantage of temporary favorable movements in
the yield curve for $0.4 million, and a positive variance on BOLI
income for $0.5 million tied to our nonqualified deferred
compensation plan.
- There was a benefit for credit losses of $0.1 million which is
down $0.3 million over the linked quarter due mostly to lower
charge-offs in the second quarter and an improvement in the
quantitative reserve rate component of the allowance for credit
losses.
Year to-Date Income Changes (comparisons to the first
six-months of 2022)
- Net income increased by $2.1 million, or 12%, due mostly to a
$2.7 million decrease in the provision for credit losses, as well
as higher net interest income on a change in mix of average earning
assets, partially offset by lower noninterest income and higher
noninterest expense.
- The provision for credit losses was $0.2 million, a decrease of
$2.7 million, due to lower net charge-offs.
- Net interest income increased by $5.1 million, or 10%, due
mostly to the change in mix of interest earning assets with both
average loan and investment balances increasing. Partially
offsetting the benefit from increased earning asset balances, the
cost of interest-bearing liabilities was higher due to increases in
index rates on certain floating rate liabilities.
- Noninterest income decreased $1.9 million, or 12%, for the same
reasons as noted above in the quarterly comparison, combined with a
$1.0 million gain on the sale of investment securities in 2022,
partially offset by a $2.0 million positive variance in BOLI income
tied to our nonqualified deferred compensation plan.
Balance Sheet Changes (comparisons to December 31,
2022)
- Total assets increased $153.9 million, or 4.3%, to $3.8 billion
primarily due to increases in investment securities, mortgage
warehouse and commercial and industrial loans. Deposits increased
by $72.6 million, or 3%. The growth in deposits came primarily from
higher-cost time deposits and brokered deposits. Noninterest
bearing or low-cost transaction and savings accounts decreased
$135.2 million.
- Gross loans increased $41.5 million, or 2%, due mostly to a
$45.2 million increase in mortgage warehouse loans and a $18.6
million increase in commercial and industrial loans. These
increases were offset by a $25.4 million decrease in real estate
loans. Organic loan production for the first half of 2023 was $89.6
million, a 37% decrease, as compared to $142.1 million for the
comparative period in 2022. The current interest rate environment
is slowing loan demand and creating competitive pressures on new
credits.
- Investment securities increased $84.2 million, or 7%, mostly in
variable rate collateralized loan obligations.
Other financial highlights are reflected in the following
table.
FINANCIAL HIGHLIGHTS
(Dollars in Thousands, Except Per Share
Data, Unaudited)
As of or for the
As of or for the
three months ended
six months ended
6/30/2023
3/31/2023
6/30/2022
6/30/2023
6/30/2022
Net income
$
9,919
$
8,751
$
9,204
$
18,670
$
16,611
Diluted earnings per share
$
0.67
$
0.58
$
0.61
$
1.26
$
1.10
Return on average assets
1.07
%
0.97
%
1.07
%
1.02
%
0.98
%
Return on average equity
13.06
%
11.53
%
11.68
%
12.30
%
10.10
%
Net interest margin (tax-equivalent)
(1)
3.39
%
3.47
%
3.40
%
3.43
%
3.31
%
Yield on average loans
4.74
%
4.50
%
4.31
%
4.62
%
4.31
%
Yield on investments
5.02
%
4.73
%
2.40
%
4.88
%
1.61
%
Cost of average total deposits
1.09
%
0.83
%
0.11
%
0.96
%
0.10
%
Efficiency ratio (tax-equivalent) (1)
(2)
62.27
%
64.84
%
59.19
%
63.53
%
62.70
%
Total assets
$
3,762,461
$
3,693,984
$
3,396,635
$
3,762,461
$
3,396,635
Loans net of deferred fees
$
2,094,464
$
2,033,992
$
2,021,581
$
2,094,464
$
2,021,581
Noninterest demand deposits
$
1,066,498
$
1,041,748
$
1,120,413
$
1,066,498
$
1,120,413
Total deposits
$
2,918,759
$
2,948,988
$
2,850,999
$
2,918,759
$
2,850,999
Noninterest-bearing deposits over total
deposits
36.5
%
35.3
%
39.3
%
36.5
%
39.3
%
Shareholders' equity / total assets
8.2
%
8.3
%
8.8
%
8.2
%
8.8
%
Tangible common equity ratio (2)
7.5
%
7.6
%
8.0
%
7.5
%
8.0
%
Book value per share
$
20.90
$
20.40
$
19.82
$
20.90
$
19.82
Tangible book value per share (2)
$
18.93
$
18.44
$
17.82
$
18.93
$
17.82
(1)
Computed on a tax equivalent
basis utilizing a federal income tax rate of 21%.
(2)
See reconciliation of non-GAAP
financial measures to the corresponding GAAP measurement in
"Non-GAAP Financial Measures".
INCOME STATEMENT HIGHLIGHTS
Net Interest Income
Net interest income was $28.3 million for the second quarter of
2023, a $1.7 million increase, or 7% over the second quarter of
2022, and increased $5.1 million, or 10%, to $56.4 million for the
first six months of 2023 relative to the same period in 2022.
For the second quarter of 2023, growth in average
interest-earning assets totaled $243.8 million, or 8%, as compared
to the second quarter of 2022. The yield on these balances was 125
basis points higher for the same period. Average loan balances
increased $42.9 million with a 43 basis point increase in yield,
while average investment balances increased $200.9 million with a
262 basis point increase in yield, mostly due to a $172.2 million
increase in average collateralized loan obligation balances which
have variable rates. There was a 185 basis point increase in the
cost of our interest-bearing liabilities for the same period.
Net interest income for the comparative year-to-date periods
increased $5.1 million due to the change in mix on interest earning
assets, moderated by an increase in interest rates paid on
interest-bearing liabilities. There was a $62.4 million, or 3%,
increase in average loan and lease balances yielding 31 basis
points higher for the same period, while average investment
balances increased $153.1 million yielding 273 basis points higher
for the same period. Average interest-bearing liabilities increased
$332.2 million, of which $68.3 million is an increase in deposit
balances, $174.6 million is overnight or short-term borrowings,
while $36.5 million is longer term FHLB borrowings. The cost of
interest-bearing liabilities was 164 bps higher for the comparative
periods. The net impact of the mix and rate change was a 12 basis
point increase in our net interest margin for the six-months ending
June 30, 2023 as compared to the same period in 2022.
At June 30, 2023, approximately 17% of the Bank’s loan portfolio
is scheduled to mature or reprice within twelve months and an
additional 11% could reprice within three years. In addition,
approximately $563.0 million, or 41.5%, of the securities portfolio
consists of floating rate bonds that will reprice in less than 90
days. Office commercial real estate loans have adjustable rates
with most rate adjustments occurring beyond two years. During the
next twenty-four months, we have 43 office commercial real estate
loans totaling $37.0 million that have scheduled interest rate
resets. Additionally there are 13 office commercial real estate
loans totaling $9.0 million that will mature during the same time
frame. The Bank’s practice is to make commercial real estate loans
with an “at origination” loan-to-value of 65% or lower.
Interest expense was $12.6 million for the second quarter of
2023, an increase of $10.9 million, relative to the second quarter
of 2022. For the first six months of 2023, compared to the first
six months of 2022, interest expense increased $18.9 million, to
$21.8 million. The increase in interest expense is primarily
attributable to an increase in interest rates paid on certain time
deposits, a shift in deposits to higher interest rate accounts and
higher cost overnight borrowed funds. There was an unfavorable
shift in the deposit mix in the second quarter of 2023 as compared
to the same period in 2022 that amplified the increase in interest
expense. Higher cost customer time deposits increased by $244.7
million, wholesale brokered deposits increased by $118.7 million
and other borrowed funds increased $167.3 million, while lower cost
and noninterest bearing deposits decreased by $332.1 million. For
the first half of 2023 as compared to the same period in 2022,
customer time deposits increased $206.3 million, wholesale brokered
deposits increased $110.7 million and borrowed funds increased
$211.3 million, while lower cost or no cost deposits decreased
$248.7 million.
Our net interest margin was 3.39% for the second quarter of
2023, as compared to 3.47% for the linked quarter and 3.40% for the
second quarter of 2022. While the yield of interest-earning assets
increased 26 basis points for the second quarter of 2023 as
compared to the linked quarter, the cost of interest-bearing
liabilities increased 48 basis points for the same period of
comparison. The average balance of interest-earning assets
increased $66.4 million for the linked quarter while the increase
in interest-bearing liabilities was $98.3 million for the same
period. The increase in interest rates on a larger volume of
interest-bearing liabilities over interest-earning assets, combined
with a shift in deposit balances from lower cost transaction
accounts to higher cost time certificates exacerbates the margin
compression in the linked quarter.
Provision for Credit Losses
The overall provision for credit losses resulted in a benefit of
$0.1 million for the second quarter of 2023; there was a $0.1
provision for credit losses related to loans and leases offset by a
benefit for credit losses from unfunded commitments and
held-to-maturity investment securities, relative to $2.4 million in
the second quarter of 2022, and a year-to-date provision for credit
losses on loans and leases of $0.2 million in 2023 as compared to
$2.9 million for the same period in 2022. The Company's $2.5
million decrease in the provision for credit losses on loans and
leases in the second quarter of 2023 as compared to the second
quarter of 2022, and the $2.5 million year to date decrease in the
provision for credit losses, compared to the same period in 2022,
was primarily due to the impact of $4.1 million in net charge-offs
in the first six months of 2022 with only $0.4 million in net
charge offs for the first six months of 2023. The increase in net
charge-offs in the second quarter of 2022 was primarily related to
a single office building loan relationship that was sold at a
discount due to an increased risk of default that would have likely
led to a prolonged collection period. For the first six months of
2022, the increase in net charge-offs also included a single dairy
loan relationship that defaulted in late March 2022.
The Company did not record a provision for credit losses on
available-for-sale debt securities. Although there were debt
securities in an unrealized loss position, the declines in market
values were primarily attributable to changes in interest rates and
volatility in the financial markets and not a result of an expected
credit loss.
Noninterest Income
Total noninterest income decreased by $2.4 million, or 23%, for
the quarter ended June 30, 2023, as compared to the same quarter in
2022 and decreased $1.9 million, or 12% for the comparable
year-to-date periods. The quarterly comparison includes $3.2
million in non-recurring gains in 2022 resulting from the sale of
Visa B stock of $2.6 million and a small business investment
company fund investment of $0.6 million, as well as $0.4 million in
life insurance proceeds, a $1.0 million recovery of prior year
legal expenses, and a $0.2 million gain from a recovery on an
acquired loan. In addition, the year-to-date comparison reflects a
$1.0 million gain on the sale of investment securities in 2022 with
a similar gain on investments in the first six months of 2023 of
$0.4 million. These unfavorable variances to the quarter and
year-to-date comparisons were partially offset by favorable
increases of $1.2 million and $2.0 million respectively, in the
value of separate account corporate-owned life insurance assets
tied to non-qualified deferred compensation plans. Investments in
the separate account variable life insurance policies are invested
in a similar proportionate mix of asset classes that our deferred
compensation participants have elected.
Service charges on customer deposit account income decreased by
$0.2 million, or 4%, to $5.7 million in the second quarter of 2023
as compared to the second quarter of 2022. This service charge
income was $0.4 million lower, or 13%, in the first six months of
2023, as compared to the same period in 2022. These decreases in
the quarterly and year-to-date comparisons are primarily a result
of decreased overdraft income and lower interchange fees.
Noninterest Expense
Total noninterest expense increased by $0.9 million, or 4%, in
the second quarter of 2023 relative to the second quarter of 2022,
and by $3.7 million, or 9%, in the first six months of 2023 as
compared to the first six months of 2022.
Salaries and Benefits were $0.4 million, or 3%, higher in the
second quarter of 2023 as compared to the second quarter of 2022
and $1.4 million, or 6% higher for the first six months of 2023
compared to the same period in 2022. The reason for this increase
is primarily due to increased salary expense and benefit costs
associated with those salaries for new lending teams and certain
management staff for both the quarterly and year-to-date
comparisons. Furthermore, health insurance costs increased in 2023
for the Company and are trending 13% higher in the year-to-date
comparisons. Overall full-time equivalent employees were 501 at
June 30, 2023, as compared to 491 at December 31, 2022 and 504 at
June 30, 2022.
Occupancy expenses were relatively unchanged for the second
quarter and the first half of 2023 as compared to the same periods
in 2022.
Other noninterest expense increased $0.4 million, or 6%, for the
second quarter 2023 as compared to the second quarter in 2022, and
increased $2.2 million, or 16%, for the first half of 2023 as
compared to the same period in 2022. FDIC assessment costs
increased for the both the quarterly and year-to-date comparisons
by $0.4 million; there were increases in deferred compensation
expense for directors of $0.9 million for the quarterly comparison
and $1.4 million for the year-to-date comparison, which is linked
to the changes in life insurance income, increasing $1.2 million
for the quarterly comparison and $2.0 million for the year-to-date
comparison. There were also non-recurring increases in debit card
processing and ATM network costs for both the quarterly and
year-to-date comparisons due to a branding change from Mastercard
to Visa and the subsequent conversion costs related to that change.
Those non-recurring charges are estimated to be $0.5 million for
both the quarterly and year-to-date comparisons. Additionally, we
incurred a $0.3 million loss from a 2017 event that is reflected in
noninterest expense. These increases were partially offset in both
the quarterly and year-to-date comparisons by decreases in
recruitment costs associated with new hires in 2022, decreased
postage costs, and lower non-recurring costs associated with
restitution payments made to customers in 2022 for customers
charged nonsufficient fund fees in the past five years for
representment. For the year-to-date comparison there was also
elevated foreclosed assets costs for the first half of 2023 as
compared to the same period in 2022, due to the foreclosure and
then subsequent sale one large credit in the first quarter of
2023.
The Company's provision for income taxes was 26.2% of pre-tax
income in the second quarter of 2023 relative to 26.3% in the
second quarter of 2022, and 25.0% of pre-tax income for the first
half of 2023 relative to 26.6% for the same period in 2022. The
changes in effective tax rate for both the quarterly and
year-to-date comparisons is due to the volatility in the Corporate
Owned Life Insurance asset value associated with our non-qualified
deferred compensation plans. In the second quarter and first half
of 2023, the investments associated with the non-qualified deferred
compensation plans increased in value, generating non-taxable
income for the second quarter, and first half of 2023 while
decreasing in value in the second quarter and first half of 2022
resulting in a non-deductible expense.
Balance Sheet Summary
Balance sheet changes during the first half of 2023 include an
increase in total assets of $153.9 million, or 4%, primarily a
result of a $41.5 million increase in gross loan balances, an $84.2
million increase in investment securities, and a $26.4 million
increase in cash and due from banks.
The increase in gross loan balances as compared to December 31,
2022, was primarily a result of organic increases of $18.6 million
in commercial and industrial loans, $8.6 million in commercial real
estate loans and a favorable change of $45.2 million in mortgage
warehouse balances. Counterbalancing these positive variances were
loan paydowns and maturities resulting in net declines in many
categories even with higher loan production. In particular, there
was a $33.9 million net decrease in non-commercial real estate
loans, mostly farmland.
As indicated in the loan roll forward table below, new credit
extended for the second quarter of 2022, decreased $15.6 million
over the linked quarter to $37.0 million and decreased $82.5
million over the same period in 2022. Sluggish organic loan growth
is attributable to competitive pressures in our market and lower
loan demand in the current interest rate environment. We also had
$25.4 million in loan paydowns and maturities, offset by an
increase of $42.1 million in mortgage warehouse line utilization
and a $6.6 million increase in line of credit utilization.
LOAN ROLLFORWARD
(Dollars in Thousands, Unaudited)
For the three months
ended:
For the six months
ended:
June 30, 2023
March 31, 2023
June 30, 2022
June 30, 2023
June 30, 2022
Gross loans beginning balance
$
2,033,968
$
2,052,940
$
1,983,331
$
2,052,940
$
1,989,726
New credit extended
37,030
52,609
119,553
89,639
142,096
Loan purchases
—
—
46,364
—
173,082
Changes in line of credit utilization
6,622
(25,790
)
(17,837
)
(19,168
)
(37,390
)
Change in mortgage warehouse
42,145
3,033
956
45,178
(43,049
)
Pay-downs, maturities, charge-offs and
amortization (1)
(25,374
)
(48,824
)
(109,705
)
(74,198
)
(201,803
)
Gross loans ending balance
2,094,391
2,033,968
2,022,662
2,094,391
2,022,662
(1)
Includes $1.6 million from the
sale of a performing loan during the second quarter of 2022.
Unused commitments, excluding mortgage warehouse and overdraft
lines, were $216.0 million at June 30, 2023, compared to $219.7
million at December 31, 2022. Total line utilization, excluding
mortgage warehouse and overdraft lines, was 59.3% at June 30, 2023
and 58.7% at December 31, 2022. Mortgage warehouse utilization
increased to 25.7% at June 30, 2023, as compared to 9.9% at
December 31, 2022.
PPP loans continue to decline as borrowers receive forgiveness
on these loans. There were ten loans for $0.5 million outstanding
at June 30, 2023, compared to fourteen loans for $1.8 million at
December 31, 2022.
Deposit balances reflect growth of $72.6 million, or 3%, during
the first six months of 2023. Core non-maturity deposits decreased
by $135.2 million, or 6%, while customer time deposits increased by
$152.8 million, or 38%. Wholesale brokered deposits increased by
$55.0 million. Overall noninterest-bearing deposits as a percent of
total deposits at June 30, 2023, decreased to 36.5%, as compared to
38.2% at December 31, 2022 and 39.3% at June 30, 2022. Other
interest-bearing liabilities of $483.8 million on June 30, 2023,
consisted of $245.2 million in overnight borrowings, $80.0 million
in term FHLB advances, $73.7 million in customer repurchase
agreements, $35.6 million in trust preferred securities and $49.3
million in subordinated debentures.
Overall uninsured deposits are estimated to be approximately
$799.7 million, or 27% of total deposit balances, excluding public
agency deposits that are subject to collateralization through a
letter of credit issued by the FHLB. In addition, uninsured
deposits of the bank’s customers are eligible for FDIC pass-through
insurance if the customer opens an IntraFi Insured Cash Sweep (ICS)
account or a reciprocal time deposit through the Certificate of
Deposit Account Registry System (CDARS). IntraFi allows for up to
$225 million per customer of pass-through FDIC insurance which
would more than cover each of the Bank’s deposit customers if such
customer desired to have such pass-through insurance. The Bank
maintains a diversified deposit base with no significant customer
concentrations and does not bank any cryptocurrency companies. At
June 30, 2023, the Company had approximately 121,000 accounts and
the 25 largest deposit balance customers had balances of
approximately 11% of overall deposits. During the second quarter of
2023, except for seasonality fluctuations in the normal course of
business, there has been no change in the composition of our 25
largest deposit balance customers.
The Company continues to have substantial liquidity which is
managed daily. At June 30, 2023, and December 31, 2022, the Company
had the following sources of primary and secondary liquidity
(Dollars in Thousands):
Primary and secondary liquidity
sources
June 30, 2023
December 31, 2022
Cash and cash equivalents
$
103,483
$
77,131
Unpledged investment securities
872,991
1,097,164
Excess pledged securities
359,510
43,096
FHLB borrowing availability
656,318
718,842
Unsecured lines of credit
339,785
237,000
Funds available through fed discount
window
256,846
42,278
Totals
$
2,588,933
$
2,215,511
Total capital of $309.6 million at June 30, 2023, reflects an
increase of $6.0 million, or 2%, relative to year-end 2022. The
increase in equity during the first half of 2023 was due to the
addition of $18.7 million in net income, a $0.07 million favorable
swing in accumulated other comprehensive income/loss due
principally to changes in investment securities’ fair value, $3.8
million in share repurchases and net of $7.0 million in dividends
paid. The remaining difference is related to stock options
exercised and restricted stock compensation recognized during the
quarter.
Asset Quality
Total nonperforming assets, comprised of nonaccrual loans and
foreclosed assets, decreased by $18.4 million to $1.1 million for
the first half of 2023. The Company's ratio of nonperforming loans
to gross loans decreased to 0.05% at June 30, 2023 from 0.95% at
December 31, 2022. The decrease resulted from a decrease in
non-accrual loan balances, primarily as a result of the foreclosure
and sale of one loan relationship in the dairy industry consisting
of four separate loans in the first quarter of 2023. All the
Company's nonperforming assets are individually evaluated for
credit loss quarterly and management believes the established
allowance for credit loss on such loans is appropriate.
The Company's allowance for credit losses on loans and leases
was $23.0 million at June 30, 2023, as compared to $23.1 million at
December 31, 2022. The relatively flat allowance for credit losses
on loans and leases was due to fewer net charge offs during the
first half of 2023 along with relatively low loan growth.
The allowance was 1.10% of gross loans at June 30, 2023, and
1.12% of gross loans at December 31, 2022, and 1.13% of gross loans
at June 30, 2022. Management's detailed analysis indicates that the
Company's allowance for credit losses on loans and leases should be
sufficient to cover credit losses for the life of the loans and
leases outstanding as of June 30, 2023, but no assurance can be
given that the Company will not experience substantial future
losses relative to the size of the loan and lease loss
allowance.
About Sierra Bancorp
Sierra Bancorp is the holding Company for Bank of the Sierra
(www.bankofthesierra.com), which is in its 46th year of operations
and is the largest independent bank headquartered in the South San
Joaquin Valley.
Bank of the Sierra is a community-centric regional bank, which
offers a broad range of retail and commercial banking services
through full-service branches located within the counties of
Tulare, Kern, Kings, Fresno, Ventura, San Luis Obispo, and Santa
Barbara. The Bank also maintains an online branch and provides
specialized lending services through an agricultural credit center
in Templeton, California, and a dedicated loan production office in
Roseville, California. In 2023, Bank of the Sierra was recognized
as one of the strongest and top-performing community banks in the
country, with a 5-star rating from Bauer Financial.
Forward-Looking
Statements
The statements contained in this release that are not historical
facts are forward-looking statements based on management's current
expectations and beliefs concerning future developments and their
potential effects on the Company. Readers are cautioned not to
unduly rely on forward looking statements. Actual results may
differ from those projected. These forward-looking statements
involve risks and uncertainties including but not limited to the
health of the national and local economies including the impact to
the Company and its customers resulting from changes to, and the
level of, inflation and interest rates; changes in laws, rules,
regulations, or interpretations to which the Company is subject;
the Company’s ability to maintain and grow its deposit base; loan
demand and continued portfolio performance, the Company's ability
to attract and retain skilled employees, customers' service
expectations; cyber security risks: the Company's ability to
successfully deploy new technology, the success of acquisitions and
branch expansion; operational risks including the ability to detect
and prevent errors and fraud; the effectiveness of the Company’s
enterprise risk management framework; the impact of adverse
developments at other banks, including bank failures, that impact
general sentiment regarding the stability and liquidity of banks
that could affect stock price; changes to valuations of the
Company’s assets and liabilities including the allowance for credit
losses, earning assets, and intangible assets; changes to the
availability of liquidity sources including borrowing lines and the
ability to pledge or sell certain assets; costs related to
litigation; the effects of severe weather events, pandemics, other
public health crises, acts of war or terrorism, and other external
events on our business; and other factors detailed in the Company's
SEC filings, including the "Risk Factors" and "Management's
Discussion and Analysis of Financial Condition and Results of
Operations" sections of the Company's most recent Form 10‑K and
Form 10‑Q.
STATEMENT OF CONDITION
(Dollars in Thousands, Unaudited)
ASSETS
6/30/2023
3/31/2023
12/31/2022
9/30/2022
6/30/2022
Cash and due from banks
$
103,483
$
83,506
$
77,131
$
86,683
$
161,875
Investment securities
Available-for-sale, at fair value
1,027,538
1,040,920
934,923
1,069,434
864,178
Held-to-maturity, at amortized cost, net
of allowance for credit losses
328,478
332,728
336,881
156,211
161,399
Real estate loans
1-4 family residential construction
—
—
—
-
5,542
Other construction/land
16,020
15,653
18,412
18,315
20,816
1-4 family - closed-end
408,918
414,232
416,116
420,136
429,109
Equity lines
17,690
18,953
21,330
21,126
25,260
Multi-family residential
91,644
92,220
91,691
69,665
66,367
Commercial real estate - owner
occupied
312,687
313,863
323,873
324,696
312,060
Commercial real estate - non-owner
occupied
913,614
912,544
893,846
896,954
898,159
Farmland
92,728
92,906
113,394
117,385
101,675
Total real estate loans
1,853,301
1,860,371
1,878,662
1,868,277
1,858,988
Agricultural production loans
30,993
26,392
27,936
31,290
28,660
Commercial and industrial
95,367
74,726
76,779
70,147
72,616
Mortgage warehouse lines
110,617
68,472
65,439
46,553
58,134
Consumer loans
4,113
4,007
4,124
4,097
4,264
Gross loans
2,094,391
2,033,968
2,052,940
2,020,364
2,022,662
Deferred loan fees
73
24
(123
)
(348
)
(1,081
)
Allowance for credit losses on loans
(23,010
)
(23,090
)
(23,060
)
(23,790
)
(22,802
)
Net loans
2,071,454
2,010,902
2,029,757
1,996,226
1,998,779
Bank premises and equipment
22,072
22,321
22,478
22,688
22,937
Other assets
209,436
203,607
207,420
201,047
187,467
Total assets
$
3,762,461
$
3,693,984
$
3,608,590
$
3,532,289
$
3,396,635
LIABILITIES AND CAPITAL
Noninterest demand deposits
$
1,066,498
$
1,041,748
$
1,088,199
$
1,118,245
$
1,120,413
Interest-bearing transaction accounts
584,263
637,549
641,581
732,468
736,034
Savings deposits
415,793
441,758
456,981
481,882
482,140
Money market deposits
124,834
123,162
139,795
140,620
152,596
Customer time deposits
552,371
519,771
399,608
332,253
299,816
Wholesale brokered deposits
175,000
185,000
120,000
80,000
60,000
Total deposits
2,918,759
2,948,988
2,846,164
2,885,468
2,850,999
Long-term debt
49,259
89,236
49,214
49,196
49,173
Subordinated debentures
35,570
35,526
35,481
35,436
35,392
Other interest-bearing liabilities
398,922
270,861
328,169
215,112
118,014
Total deposits and interest-bearing
liabilities
3,402,510
3,344,611
3,259,028
3,185,212
3,053,578
Allowance for credit losses on unfunded
loan commitments
750
850
840
940
893
Other liabilities
49,609
41,513
45,140
51,065
43,117
Total capital
309,592
307,010
303,582
295,072
299,047
Total liabilities and capital
$
3,762,461
$
3,693,984
$
3,608,590
$
3,532,289
$
3,396,635
GOODWILL AND INTANGIBLE ASSETS
(Dollars in Thousands, Unaudited)
6/30/2023
3/31/2023
12/31/2022
9/30/2022
6/30/2022
Goodwill
$
27,357
$
27,357
$
27,357
$
27,357
$
27,357
Core deposit intangible
1,837
2,056
2,275
2,517
2,769
Total intangible assets
$
29,194
$
29,413
$
29,632
$
29,874
$
30,126
CREDIT QUALITY
(Dollars in Thousands, Unaudited)
6/30/2023
3/31/2023
12/31/2022
9/30/2022
6/30/2022
Non-accruing loans
$
1,141
$
938
$
19,579
$
26,772
$
29,745
Foreclosed assets
—
—
—
—
2
Total nonperforming assets
$
1,141
$
938
$
19,579
$
26,772
$
29,747
Quarterly net charge offs
$
157
$
220
$
7,268
$
224
$
2,276
Past due & still accruing (30-89)
$
1,873
$
1,241
$
1,203
$
1,242
$
1,037
Non-performing loans to gross loans
0.05
%
0.05
%
0.95
%
1.33
%
1.47
%
NPA's to loans plus foreclosed assets
0.05
%
0.05
%
0.95
%
1.33
%
1.47
%
Allowance for credit losses on loans
1.10
%
1.14
%
1.12
%
1.18
%
1.13
%
SELECT PERIOD-END STATISTICS
(Unaudited)
6/30/2023
3/31/2023
12/31/2022
9/30/2022
6/30/2022
Shareholders' equity / total assets
8.2
%
8.3
%
8.4
%
8.4
%
8.8
%
Gross loans / deposits
71.8
%
69.0
%
72.1
%
70.0
%
70.9
%
Noninterest-bearing deposits / total
deposits
36.5
%
35.3
%
38.2
%
38.8
%
39.3
%
CONSOLIDATED INCOME STATEMENT
(Dollars in Thousands, Unaudited)
For the three months
ended:
For the six months
ended:
6/30/2023
3/31/2023
6/30/2022
6/30/2023
6/30/2022
Interest income
$
40,875
$
37,419
$
28,206
$
78,294
$
54,287
Interest expense
12,558
9,287
1,621
21,845
2,945
Net interest income
28,317
28,132
26,585
56,449
51,342
Provision for credit losses
(70
)
260
2,419
190
2,925
Net interest income after provision
28,387
27,872
24,166
56,259
48,417
Service charges and fees on deposit
accounts
5,691
5,380
5,908
11,071
11,457
Gain on sale of investments
351
45
-
396
1,032
BOLI income (expense)
658
172
(582
)
830
(1,128
)
Other noninterest income
1,313
982
5,113
2,296
5,141
Total noninterest income
8,013
6,579
10,439
14,593
16,502
Salaries and benefits
12,129
12,816
11,745
24,944
23,550
Occupancy expense
2,438
2,330
2,406
4,769
4,699
Other noninterest expenses
8,401
7,846
7,962
16,247
14,037
Total noninterest expense
22,968
22,992
22,113
45,960
42,286
Income before taxes
13,432
11,459
12,492
24,892
22,633
Provision for income taxes
3,513
2,708
3,288
6,222
6,022
Net income
$
9,919
$
8,751
$
9,204
$
18,670
$
16,611
TAX DATA
Tax-exempt muni income
$
2,741
$
2,813
$
1,854
$
5,555
$
3,581
Interest income - fully tax
equivalent
$
41,604
$
38,167
$
28,699
$
79,771
$
55,239
PER SHARE DATA
(Unaudited)
For the three months
ended:
For the six months
ended:
6/30/2023
3/31/2023
6/30/2022
6/30/2023
6/30/2022
Basic earnings per share
$
0.67
$
0.58
$
0.62
$
1.26
$
1.11
Diluted earnings per share
$
0.67
$
0.58
$
0.61
$
1.26
$
1.10
Common dividends
$
0.23
$
0.23
$
0.23
$
0.47
$
0.46
Weighted average shares outstanding
14,735,568
14,971,842
14,931,701
14,853,052
14,976,774
Weighted average diluted shares
14,754,764
15,002,366
15,004,017
14,875,508
15,063,804
Book value per basic share (EOP)
$
20.90
$
20.40
$
19.82
$
20.90
$
19.82
Tangible book value per share (EOP)
$
18.93
$
18.44
$
17.82
$
18.93
$
17.82
Common shares outstanding (EOP)
14,811,736
15,050,740
15,090,792
14,811,736
15,090,792
KEY FINANCIAL RATIOS
(Unaudited)
For the three months
ended:
For the six months
ended:
6/30/2023
3/31/2023
6/30/2022
6/30/2023
6/30/2022
Return on average equity
13.06
%
11.53
%
11.68
%
12.30
%
10.10
%
Return on average assets
1.07
%
0.97
%
1.07
%
1.02
%
0.98
%
Net interest margin (tax-equivalent)
(1)
3.39
%
3.47
%
3.40
%
3.43
%
3.31
%
Efficiency ratio (tax-equivalent) (1)
(2)
62.27
%
64.84
%
59.19
%
63.53
%
62.70
%
Net charge offs to avg loans (not
annualized)
0.01
%
0.01
%
0.11
%
0.02
%
0.20
%
(1)
Computed on a tax equivalent
basis utilizing a federal income tax rate of 21%.
(2)
See reconciliation of non-GAAP
financial measures to the corresponding GAAP measurement in
"Non-GAAP Financial Measures".
NON-GAAP FINANCIAL MEASURES
(Dollars in Thousands, Unaudited)
6/30/2023
3/31/2023
6/30/2022
Total stockholders' equity
$
309,592
$
307,010
$
299,047
Less: goodwill and other intangible
assets
29,194
29,413
30,126
Tangible common equity
$
280,398
$
277,597
$
268,921
Total assets
$
3,762,461
$
3,693,984
$
3,396,635
Less: goodwill and other intangible
assets
29,194
29,413
30,126
Tangible assets
$
3,733,267
$
3,664,571
$
3,366,509
Common shares outstanding
14,811,736
15,050,740
15,090,792
Book value per common share
$
20.90
$
20.40
$
19.82
Tangible book value per common share
$
18.93
$
18.44
$
17.82
Equity ratio - GAAP (total stockholders'
equity / total assets
8.23
%
8.31
%
8.80
%
Tangible common equity ratio (tangible
common equity / tangible assets)
7.51
%
7.58
%
7.99
%
For the three months
ended:
Efficiency Ratio:
6/30/2023
3/31/2023
6/30/2022
Noninterest expense
$
22,968
$
22,992
$
22,113
Divided by:
Net interest income
28,317
28,132
26,585
Tax-equivalent interest income
adjustments
729
748
493
Net interest income, adjusted
29,046
28,880
27,078
Noninterest income
8,013
6,579
10,439
Less gain on sale of securities
351
45
-
Tax-equivalent noninterest income
adjustments
175
46
(155
)
Noninterest income, adjusted
7,837
6,580
10,284
Net interest income plus noninterest
income, adjusted
$
36,883
$
35,459
$
37,362
Efficiency Ratio (tax-equivalent)
62.27
%
64.84
%
59.19
%
NONINTEREST
INCOME/EXPENSE
(Dollars in Thousands, Unaudited)
For the three months
ended:
For the six months ended June
30,
Noninterest income:
6/30/2023
3/31/2023
6/30/2022
2023
2022
Service charges and fees on deposit
accounts
$
5,691
$
5,380
$
5,908
$
11,071
$
11,457
Net gains on sale of securities
available-for-sale
351
45
—
396
1,032
Bank-owned life insurance
658
172
(582
)
830
(1,128
)
Other
1,313
982
5,113
2,296
5,141
Total noninterest income
$
8,013
$
6,579
$
10,439
$
14,593
$
16,502
As a % of average interest earning assets
(1)
0.93
%
0.79
%
1.31
%
0.86
%
1.04
%
Noninterest expense:
Salaries and employee benefits
$
12,129
$
12,816
$
11,745
$
24,944
$
23,550
Occupancy and equipment costs
2,438
2,330
2,406
4,769
4,699
Advertising and marketing costs
410
513
449
923
855
Data processing costs
1,536
1,528
1,525
3,064
3,010
Deposit services costs
2,532
2,023
2,417
4,555
4,662
Loan services costs
Loan processing
151
127
186
279
297
Foreclosed assets
(33
)
758
92
725
87
Other operating costs
1,490
989
2,047
2,479
2,968
Professional services costs
Legal & accounting services
483
646
673
1,129
1,219
Director's costs
725
275
—
308
—
Other professional service
832
515
259
2,039
402
Stationery & supply costs
125
141
116
265
201
Sundry & tellers
150
331
198
481
336
Total noninterest expense
$
22,968
$
22,992
$
22,113
$
45,960
$
42,286
As a % of average interest earning assets
(1)
2.68
%
2.76
%
2.78
%
2.72
%
2.67
%
Efficiency ratio (tax-equivalent)
(2)(3)
62.27
%
64.84
%
59.19
%
63.53
%
62.68
%
(1)
Annualized
(2)
Computed on a tax equivalent
basis utilizing a federal income tax rate of 21%.
(3)
See reconciliation of non-GAAP
financial measures to the corresponding GAAP measurement in
"Non-GAAP Financial Measures".
AVERAGE BALANCES AND RATES
(Dollars in Thousands, Unaudited)
For the quarter ended
For the quarter ended
For the quarter ended
June 30, 2023
March 31, 2023
June 30, 2022
Average Balance(1)
Income/ Expense
Yield/ Rate(2)
Average Balance(1)
Income/ Expense
Yield/ Rate(2)
Average Balance(1)
Income/ Expense
Yield/ Rate(2)
Assets
Investments:
Federal funds sold/interest-earning due
from's
$
35,236
$
376
4.28%
$
5,312
$
70
5.34%
$
146,287
$
270
0.74%
Taxable
996,117
13,488
5.43%
972,051
11,986
5.00%
752,693
4,477
2.39%
Non-taxable
352,718
2,741
3.95%
361,328
2,813
4.00%
284,198
1,854
3.31%
Total investments
1,384,071
16,605
5.02%
1,338,691
14,869
4.73%
1,183,178
6,601
2.40%
Loans: (3)
Real estate
1,858,512
20,827
4.49%
1,869,112
19,899
4.32%
1,844,367
19,659
4.28%
Agricultural production
28,472
496
6.99%
28,028
433
6.27%
30,466
232
3.05%
Commercial
82,743
1,179
5.72%
70,887
993
5.68%
80,533
980
4.88%
Consumer
4,339
88
8.13%
4,137
87
8.53%
4,264
207
19.47%
Mortgage warehouse lines
78,187
1,658
8.51%
59,122
1,118
7.67%
49,884
493
3.96%
Other
2,483
22
3.55%
2,464
20
3.29%
2,354
34
5.79%
Total loans
2,054,736
24,270
4.74%
2,033,750
22,550
4.50%
2,011,868
21,605
4.31%
Total interest earning assets (4)
3,438,807
$
40,875
4.85%
3,372,441
$
37,419
4.59%
3,195,046
$
28,206
3.60%
Other earning assets
16,952
15,714
15,628
Non-earning assets
267,433
272,496
239,803
Total assets
$
3,723,192
$
3,660,651
$
3,450,477
Liabilities and shareholders'
equity
Interest-bearing deposits:
Demand deposits
$
144,156
$
190
0.53%
$
150,139
$
129
0.35%
$
221,322
$
120
0.22%
NOW
454,395
76
0.07%
483,645
71
0.06%
542,915
82
0.06%
Savings accounts
428,222
62
0.06%
457,593
65
0.06%
480,654
70
0.06%
Money market
123,571
72
0.23%
135,434
25
0.07%
155,574
23
0.06%
Time deposits
540,540
6,022
4.47%
461,214
4,505
3.96%
295,850
441
0.60%
Wholesale brokered deposits
178,728
1,521
3.41%
162,560
1,204
3.00%
60,000
48
0.32%
Total interest-bearing deposits
1,869,612
7,943
1.70%
1,850,585
5,999
1.31%
1,756,315
784
0.18%
Borrowed funds:
Repurchase agreements
79,694
65
0.33%
103,426
81
0.32%
—
—
—
Other borrowings
279,633
3,430
4.92%
176,725
2,111
4.84%
112,586
77
0.27%
Long-term debt
49,247
429
3.49%
49,222
429
3.53%
49,160
430
3.51%
Subordinated debentures
35,547
691
7.80%
35,499
667
7.62%
35,365
330
3.74%
Total borrowed funds
444,121
4,615
4.17%
364,872
3,288
3.65%
197,111
837
1.70%
Total interest-bearing liabilities
2,313,733
12,558
2.18%
2,215,457
9,287
1.70%
1,953,426
1,621
0.33%
Demand deposits - noninterest-bearing
1,050,668
1,070,775
1,132,601
Other liabilities
54,139
66,632
48,458
Shareholders' equity
304,652
307,787
315,992
Total liabilities and shareholders'
equity
$
3,723,192
$
3,660,651
$
3,450,477
Interest income/interest earning
assets
4.85%
4.59%
3.60%
Interest expense/interest earning
assets
1.46%
1.12%
0.20%
Net interest income and margin
(5)
$
28,317
3.39%
$
28,132
3.47%
$
26,585
3.40%
(1)
Average balances are obtained
from the best available daily or monthly data and are net of
deferred fees and related direct costs.
(2)
Yields and net interest margin
have been computed on a tax equivalent basis utilizing a 21%
effective federal tax rate.
(3)
Loans are gross of the allowance
for possible loan losses. Loan fees have been included in the
calculation of interest income. Net loan fees and loan acquisition
FMV amortization were $(0.3) million and $0.4 million for the
quarters ended June 30, 2023 and 2022, respectively, and $(0.1)
million for the quarter ended March 31, 2023.
(4)
Non-accrual loans have been
included in total loans for purposes of computing total earning
assets.
(5)
Net interest margin represents
net interest income as a percentage of average interest-earning
assets.
AVERAGE BALANCES AND RATES
(Dollars in Thousands, Unaudited)
For the six months
ended
For the six months
ended
June 30, 2023
June 30, 2022
Average Balance(1)
Income/ Expense
Yield/ Rate(2)
Average Balance(1)
Income/ Expense
Yield/ Rate(2)
Assets
Investments:
Interest-earning due from banks
$
20,357
$
446
4.42%
$
170,432
$
363
0.43%
Taxable
984,150
25,472
5.22%
756,061
7,966
2.12%
Non-taxable
356,999
5,555
3.97%
281,882
3,581
3.24%
Total investments
1,361,506
31,473
4.88%
1,208,375
11,910
2.15%
Loans:(3)
Real estate
$
1,863,783
$
40,726
4.41%
$
1,799,132
$
37,984
4.26%
Agricultural
28,251
929
6.63%
32,216
534
3.34%
Commercial
76,848
2,172
5.70%
88,784
2,378
5.40%
Consumer
4,239
176
8.37%
4,355
413
19.12%
Mortgage warehouse lines
68,707
2,776
8.15%
55,538
1,003
3.64%
Other
2,474
42
3.42%
1,922
65
6.82%
Total loans
2,044,302
46,821
4.62%
1,981,947
42,377
4.31%
Total interest earning assets (4)
3,405,808
78,294
4.72%
3,190,322
54,287
3.49%
Other earning assets
16,336
15,654
Non-earning assets
269,950
225,345
Total assets
$
3,692,094
$
3,431,321
Liabilities and shareholders'
equity
Interest bearing deposits:
Demand deposits
$
147,131
$
319
0.44%
$
212,193
$
226
0.21%
NOW
468,939
147
0.06%
544,589
164
0.06%
Savings accounts
442,826
127
0.06%
474,213
137
0.06%
Money market
129,470
96
0.15%
153,469
46
0.06%
Time deposits
501,096
10,528
4.24%
294,773
675
0.46%
Brokered deposits
170,688
2,726
3.22%
60,000
96
0.32%
Total interest bearing deposits
1,860,150
13,943
1.51%
1,739,237
1,344
0.16%
Borrowed funds:
Repurchase agreements
91,495
146
0.08%
108,762
158
0.29%
Other borrowings
228,463
5,541
4.89%
170
1
1.19%
Long-term debt
49,235
857
3.51%
49,152
857
3.52%
Subordinated debentures
35,523
1,358
7.71%
35,342
585
3.34%
Total borrowed funds
313,221
7,902
5.09%
193,426
1,601
1.67%
Total interest bearing liabilities
2,264,866
21,845
1.95%
1,932,663
2,945
0.31%
Demand deposits - noninterest bearing
1,060,666
1,113,262
Other liabilities
60,351
53,712
Shareholders' equity
306,211
331,684
Total liabilities and shareholders'
equity
$
3,692,094
$
3,431,321
Interest income/interest earning
assets
4.72%
3.49%
Interest expense/interest earning
assets
1.29%
0.18%
Net interest income and
margin(5)
$
56,449
3.43%
$
51,342
3.31%
(1)
Average balances are obtained
from the best available daily or monthly data and are net of
deferred fees and related direct costs.
(2)
Yields and net interest margin
have been computed on a tax equivalent basis utilizing a 21%
effective federal tax rate.
(3)
Loans are gross of the allowance
for possible loan losses. Loan fees have been included in the
calculation of interest income. Net loan fees and loan acquisition
FMV amortization were $(0.4) million and $0.8 million for the six
months ended June 30, 2023 and 2022, respectively.
(4)
Non-accrual loans have been
included in total loans for purposes of computing total earning
assets.
(5)
Net interest margin represents
net interest income as a percentage of average interest-earning
assets.
Category: Financial
Source: Sierra Bancorp
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230724517932/en/
Kevin McPhaill, President/CEO (559) 782‑4900 or (888) 454‑BANK
sierrabancorp.com
Sierra Bancorp (NASDAQ:BSRR)
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