PORTERVILLE, Calif.,
Oct. 23, 2017 /PRNewswire/
-- Sierra Bancorp (Nasdaq: BSRR), parent of Bank of the
Sierra, today announced its unaudited financial results for the
three- and nine-month periods ended September 30, 2017. Sierra Bancorp
recognized consolidated net income of $5.742
million for the third quarter of 2017, reflecting an
increase of $1.813 million, or 46%,
relative to the third quarter of 2016 for the following
reasons: net interest income increased by 9% due to a higher
average balance of interest-earning assets and an improved net
interest margin; non-interest income was up by 18%, due in large
part to investment gains totaling $918,000 in the third quarter of 2017; and,
non-interest expense declined by 4%, as higher personnel and
occupancy costs were more than offset by a $1.271 million drop in non-recurring acquisition
costs. For the third quarter of 2017 the Company's return on
average assets was 1.10%, return on average equity was 10.45%, and
diluted earnings per share were $0.41.
For the first nine months of 2017 the Company recognized net
income of $15.496 million, which
represents an increase of 29% relative to the same period in
2016. The Company's financial performance metrics for the
first nine months of 2017 include an annualized return on average
equity of 9.70%, a return on average assets of 1.02%, and diluted
earnings per share of $1.11.
Total assets and loans remained at record levels at September 30, 2017 thanks to continued organic
growth. Total assets ended the third quarter of 2017 at
$2.078 billion, the same as at the
end of the second quarter, but they reflect an increase of
$45 million, or 2%, for the first
nine months of the year. The year-to-date increase in assets
resulted primarily from organic growth in real estate loans and
agricultural production loans and an increase in investment
securities, partially offset by lower utilization on mortgage
warehouse lines, runoff in commercial loans, and a declining level
of cash and balances due from banks. Gross loans totaled
$1.312 billion at September 30, 2017, for a year-to-date increase
of $49 million, or 4%. Total
nonperforming assets were reduced by almost $2 million, or 21%, during the first nine
months. Despite a quarterly decline resulting from the runoff
of seasonal deposits, deposits were up $84
million, or 5%, for the first nine months of 2017, ending
the period at $1.780 billion due in
large part to growth in core non-maturity deposits.
"Growth is never by mere chance; it is
the result of forces working together." –
James Cash Penney
"The third quarter was quite eventful for Bank of the Sierra, as
we prepared for the acquisitions of Ojai Community Bank and the
Woodlake branch while remaining
focused on organic growth throughout our footprint," stated
Kevin McPhaill, President and
CEO. "The Ojai Community Bank acquisition was successfully
completed on October 1st,
and we expect that the Woodlake
branch acquisition will be finalized during the first part of
November," he added. "We experienced a market-driven dip in
mortgage warehouse loan balances but have achieved strong growth in
real estate loans thus far in 2017, and as we near the end of our
fortieth year of operation we continue to set record levels for
total loan balances and deposit relationships," McPhaill noted
further. He concluded by proclaiming, "We are proud of our
team's dedication to growth and to the community banking
experience, as well as the results they have achieved by working
together!"
Financial Highlights
As noted above, net income increased by $1.813 million, or 46%, in the third quarter of
2017 relative to the third quarter of 2016, and by $3.446 million, or 29%, for the first nine months
of 2017 as compared to the same period in 2016. Significant
variances in the components of pre-tax income, including some items
of a nonrecurring nature, are noted below.
Net interest income was up by $1.528
million, or 9%, for the third quarter, and $5.742 million, or 12%, for the first nine months
due primarily to growth in average interest-earning assets totaling
$142 million, or 8%, for the third
quarter of 2017 over the third quarter of 2016, and growth of
$202 million, or 12%, for the first
nine months of 2017 over the first nine months of 2016.
Organic growth was a major factor in the increase in average
earning assets, but the year-to-date comparison was also affected
by our acquisition of Coast National Bank in mid-2016. The
favorable impact of higher interest-earning assets was supplemented
by an increase of four basis points in our net interest margin for
the comparative quarters, which was caused primarily by higher loan
and investment yields partially offset by higher borrowing
costs. The comparative results were also impacted by
non-recurring interest items, including net interest reversals of
$54,000 in the third quarter of 2017
relative to net interest recoveries of $117,000 in the third quarter of 2016, and net
interest recoveries totaling $164,000
for the first nine months of 2017 as compared to $181,000 for the first nine months of 2016.
Non-recurring interest items include interest recoveries on
non-accrual loans, interest reversals for loans placed on
non-accrual status, accelerated fee recognition for loan
prepayments, and late fees.
There was no provision for loan losses in the third quarter of
2017 or the third quarter of 2016, but the Company recorded a
$300,000 provision in the second
quarter of 2017 that impacted the year-to-date comparison.
The provision became necessary due to loan growth, and to replenish
reserves subsequent to the unanticipated charge-off of a
$224,000 overdraft on a business
account.
Total non-interest income increased by $919,000, or 18%, for the quarterly comparison,
and $2.549 million, or 18% for the
comparative year-to-date periods. Significant variances in
non-interest income include the following: increases in
deposit service charges totaling $230,000, or 9%, for the quarter and $728,000, or 10%, for the first nine months,
resulting from fees earned on a higher number of deposit accounts,
as well as a higher level of commercial deposit account activity
and additional fees on higher-risk accounts; increases in
bank-owned life insurance (BOLI) income totaling $75,000 for the quarter and $447,000 for the first nine months, due to higher
income on BOLI associated with deferred compensation plans and
higher income crediting rates on other BOLI policies; a drop in
other non-interest income of $214,000, or 11%, for the third quarter, as
higher debit card interchange income was more than offset by
adjustments to pass-through operating losses on our low-income
housing tax credit investments and declining dividends on our
Federal Home Loan Bank stock; and, for the year-to-date comparison,
an increase in other non-interest income of $602,000, or 11%, which includes a prepayment
penalty of $141,000 on a large dairy
loan that paid off in the second quarter of 2017. Investment
gains also reflect increases for the comparative periods, due to
$918,000 in gains realized on the
sale of an equity investment in the third quarter of 2017.
Total non-interest expense fell by $676,000, or 4%, for the third quarter of 2017
relative to the third quarter of 2016, but reflects an increase of
$2.923 million, or 7%, for the
comparative nine-month periods. The largest component of
non-interest expense, salaries and benefits, increased by
$612,000, or 9%, for the third
quarter and $2.262 million, or 11%,
for the first nine months, largely because salaries and benefits in
2017 include expenses for former Coast employees retained
subsequent to the acquisition in July of 2016, as well as staffing
costs for our three new branch offices that commenced operations in
2017. The increase also reflects salary adjustments in the
normal course of business, a relatively large increase in group
health insurance costs, and, for the year-to-date comparison,
higher equity incentive compensation stemming from stock options
granted in February of 2017. Compensation costs benefited
from stronger loan origination activity, since salaries directly
related to successful loan originations, which are deferred and
amortized as loan costs and thus reduce current period compensation
expense, increased by $572,000 for
the first nine months of 2017 relative to the same period in
2016.
Occupancy expense increased by $305,000, or 15%, in the third quarter of 2017
over the third quarter of 2016, and by $1.243 million, or 22%, for the comparative
year-to-date periods, due to occupancy costs associated with the
former Coast National Bank branches and our newer de-novo branches,
higher rent and depreciation expense in other locations, and, for
the year-to-date comparison, roughly $100,000 in non-recurring expenses associated
with opening our newest Bakersfield branch in the first quarter of
2017. Other non-interest expense was down by $1.593 million, or 22%, for the quarter, and
$582,000, or 3%, for the first nine
months. The drop is due in part to nonrecurring acquisition
costs, which totaled $424,000 in the
third quarter of 2017 relative to $1.695
million in the third quarter of 2016, and $585,000 for the first nine months of 2017 as
compared to $2.037 million in the
first nine months of 2016. It also reflects reductions in net
OREO expense totaling $41,000 for the
quarter and $327,000 for the
year-to-date period, lower regulatory assessments, timing-related
reductions in marketing costs, and a drop in operations-related
losses. Partially offsetting these favorable variances were
increases in operating expenses associated with our recent branch
expansion and, for the year-to-date comparison, recurring increases
from the Coast acquisition in core operating expense categories
including data processing, deposit costs (including amortization
expense on our core deposit intangible), telecommunications, and
travel expense. Additional non-interest expense areas
experiencing relatively large increases for the year-to-date
comparison include: directors' deferred compensation expense,
in conjunction with the changes in BOLI income; stock option
expense for directors; director retirement plan accruals, due to a
non-recurring expense reversal of $173,000 in the first quarter of 2016; and loan
costs, due to approximately $100,000
in non-recurring adjustments in the first quarter of 2017.
The Company's provision for income taxes was 35% of pre-tax
income in the third quarter of 2017 relative to 32% in the third
quarter of 2016, and was 33% for the first nine months of 2017 and
2016. The higher tax accrual rate for the third quarter of
2017 is primarily the result of higher taxable income and a
declining level of tax credits, including those generated by our
investments in low-income housing tax credit funds as well as
certain hiring tax credits. Our year-to-date tax accrual rate
would also have been higher if not for our adoption of FASB's
Accounting Standards Update 2016-09 effective January 1, 2017, and the subsequent change in
accounting methodology associated with the disqualifying
disposition of Company shares issued pursuant to the exercise of
incentive stock options. Prior to January 1, 2017, the favorable tax impact of
disqualifying dispositions was recorded directly to equity, whereas
it is now reflected in the income statement as an adjustment to our
income tax provision. Disqualifying dispositions had a
marginal impact on our tax accrual rate during the third quarter,
but they occurred at a higher rate during the first and second
quarters of 2017 and thus had a more material impact on our
year-to-date tax accrual.
Balance sheet changes during the first nine months of 2017
include an increase in total assets of $45
million, or 2%, due to higher loan and investment portfolio
balances, partially offset by a reduction in cash and due from
banks. Cash balances were down by $66
million, or 55%, including a $39
million reduction in interest-earning balances held in our
Federal Reserve Bank account and a $27
million drop in non-earning balances. Shorter-term
cash balances were generally deployed into longer-term investment
securities, which reflect an increase of $53
million, or 10%, during the first nine months of 2017.
Gross loans increased by $49
million, or 4%, due to strong organic growth in real estate
loans and agricultural production loans during the first nine
months of 2017. Non-agricultural real estate loans were up
$93 million, or 12%, for the first
nine months, while agricultural real estate loans increased by
$11 million, or 8%, and agricultural
production loans were up $3 million,
or 7%. The increases in real estate and agricultural loans
were partially offset by a drop of $44
million, or 27%, in mortgage warehouse loans, which declined
as the utilization rate on mortgage warehouse lines dropped to 31%
at September 30, 2017 from 48% at
December 31, 2016. Commercial
loans and leases were also down by $12
million, or 10%. While we have experienced a higher
level of real-estate secured and agricultural lending activity in
recent periods, and our pipeline of loans in process of approval
remains relatively robust, no assurance can be provided with regard
to future loan growth as payoffs remain at relatively high levels
and mortgage warehouse loan volumes are difficult to predict.
Total nonperforming assets, namely non-accrual loans and
foreclosed assets, were reduced by almost $2
million, or 21%, during the first nine months of 2017.
The Company's ratio of nonperforming assets to loans plus
foreclosed assets was 0.52% at September 30,
2017, compared to 0.68% at December
31, 2016. All of the Company's impaired assets are
periodically reviewed, and are either well-reserved based on
current loss expectations or are carried at the fair value of the
underlying collateral, net of expected disposition costs. In
addition to nonperforming assets, the Company had $13 million in loans classified as restructured
troubled debt (TDRs) that were included with performing loans as of
September 30, 2017, down slightly
from the level of TDRs at December 31,
2016.
The Company's allowance for loan and lease losses was
$8.8 million at September 30, 2017, down from $9.7 million at December
31, 2016. The decline resulted from the charge-off of
certain impaired loan balances against previously-established
reserves and was also enabled by improved credit quality in the
overall loan portfolio, but those factors were partially offset by
reserves provided for losses inherent in incremental loan balances
and unanticipated charge-offs. Net loans charged off against
the allowance totaled $1.217 million
in the first nine months of 2017 compared to $543,000 in the first nine months of 2016, with
the increase resulting from a $511,000 increase in gross charge-offs and a
$163,000 drop in recovered
principal. Charge-offs in the first nine months of 2017
include a $224,000 overdraft on a
business account that did not previously have specifically
allocated reserves. Because of the drop in the level of the
allowance and growth in our loan portfolio the allowance fell as a
percentage of loans, to 0.67% at September
30, 2017 from 0.77% at December
31, 2016. It should be noted that our reserve level
has been favorably impacted by acquired loans, which were booked at
their fair value on the acquisition date and thus did not initially
require a loan loss allowance. Furthermore, loss reserves
allocated to mortgage warehouse loans are relatively low because we
have not experienced any losses in that portfolio segment.
Management's detailed analysis indicates that the Company's
allowance for loan and lease losses should be sufficient to cover
credit losses inherent in loan and lease balances outstanding as of
September 30, 2017, but no assurance
can be given that the Company will not experience substantial
future losses relative to the size of the allowance.
Deposit balances reflect net growth of $84 million, or 5%, during the nine months ended
September 30, 2017, due in large part
to continued organic growth in core non-maturity deposits.
Junior subordinated debentures increased slightly from the
accretion of the discount on trust-preferred securities acquired
from Coast, but other non-deposit borrowings were reduced by
$52 million, or 72%, in the first
nine months of 2017, as facilitated by deposit growth.
Total capital of $219 million at
September 30, 2017 reflects an
increase of over $13 million, or 6%,
for the year-to-date period due to the addition of income, the
impact of stock options exercised, and a $2
million absolute increase in accumulated other comprehensive
income, net of dividends paid. There were no share
repurchases executed by the Company during the recently concluded
quarter.
About Sierra Bancorp
Sierra Bancorp is the holding company for Bank of the Sierra
(www.bankofthesierra.com), a community-centric regional bank which
is in its 40th year of operations and has grown to be the largest
independent bank headquartered in California's South San Joaquin Valley.
On October 1, 2017, the Company
acquired OCB Bancorp and merged Ojai Community Bank into Bank of
the Sierra, thereby expanding its coverage to the communities of
Ojai, Ventura, and Santa
Barbara, California, and enhancing operations in the city of
Santa Paula. Subsequent to the merger we have over
$2.3 billion in assets, and offer a
broad range of retail and commercial banking services via
full-service branches located throughout California's South
San Joaquin Valley and neighboring communities, on the
Central Coast, and in Southern
California locations including the Santa Clara Valley.
We also maintain an online branch, and provide specialized lending
services through our agricultural credit center, real estate
industries center, and SBA center.
Furthermore, as announced on July 5,
2017, Bank of the Sierra has entered into an agreement with
Citizens Business Bank, the banking subsidiary of CVB Financial
Corp., to acquire the Citizens branch located in Woodlake, California, including branch
deposits and certain fixed assets. That purchase is expected
to be completed in November of 2017. At the present time,
there are approximately $27 million
in deposits at the Woodlake
branch.
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, the Company's ability to attract and
retain skilled employees, customers' service expectations, the
Company's ability to successfully deploy new technology, the
success of acquisitions and branch expansion, changes in interest
rates, loan portfolio performance, 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.
CONSOLIDATED
INCOME STATEMENT
|
|
|
|
|
|
|
|
|
(in $000's,
unaudited)
|
|
Qtr
Ended:
|
3Q17
vs
|
Qtr
Ended:
|
3Q17
vs
|
Nine Months
Ended:
|
YTD17
vs
|
|
|
9/30/2017
|
6/30/2017
|
2Q17
|
9/30/2016
|
3Q16
|
9/30/2017
|
9/30/2016
|
YTD16
|
Interest
Income
|
|
$
19,832
|
$
19,055
|
+4%
|
$
17,794
|
+11%
|
$
56,790
|
$
49,760
|
+14%
|
Interest
Expense
|
|
1,397
|
1,215
|
+15%
|
887
|
+57%
|
3,631
|
2,343
|
+55%
|
Net Interest
Income
|
|
18,435
|
17,840
|
+3%
|
16,907
|
+9%
|
53,159
|
47,417
|
+12%
|
|
|
|
|
|
|
|
|
|
|
Provision for Loan
& Lease Losses
|
|
-
|
300
|
-100%
|
-
|
0%
|
300
|
-
|
NM
|
Net Int after Provision
|
|
18,435
|
17,540
|
+5%
|
16,907
|
+9%
|
52,859
|
47,417
|
+11%
|
|
|
|
|
|
|
|
|
|
|
Service
Charges
|
|
2,916
|
2,776
|
+5%
|
2,686
|
+9%
|
8,263
|
7,535
|
+10%
|
BOLI
Income
|
|
377
|
358
|
+5%
|
302
|
+25%
|
1,188
|
741
|
+60%
|
Gain (Loss) on
Investments
|
|
918
|
58
|
+1483%
|
90
|
+920%
|
984
|
212
|
+364%
|
Other Non-Interest
Income
|
|
1,699
|
2,172
|
-22%
|
1,913
|
-11%
|
5,973
|
5,371
|
+11%
|
Total Non-Interest Income
|
|
5,910
|
5,364
|
+10%
|
4,991
|
+18%
|
16,408
|
13,859
|
+18%
|
|
|
|
|
|
|
|
|
|
|
Salaries &
Benefits
|
|
7,478
|
7,253
|
+3%
|
6,866
|
+9%
|
22,617
|
20,355
|
+11%
|
Occupancy
Expense
|
|
2,368
|
2,235
|
+6%
|
2,063
|
+15%
|
6,923
|
5,680
|
+22%
|
Other Non-Interest
Expenses
|
|
5,599
|
5,603
|
0%
|
7,192
|
-22%
|
16,698
|
17,280
|
-3%
|
Total Non-Interest Expense
|
|
15,445
|
15,091
|
+2%
|
16,121
|
-4%
|
46,238
|
43,315
|
+7%
|
|
|
|
|
|
|
|
|
|
|
Income Before Taxes
|
|
8,900
|
7,813
|
+14%
|
5,777
|
+54%
|
23,029
|
17,961
|
+28%
|
Provision for Income
Taxes
|
|
3,158
|
2,611
|
+21%
|
1,848
|
+71%
|
7,533
|
5,911
|
+27%
|
Net Income
|
|
$ 5,742
|
$ 5,202
|
+10%
|
$ 3,929
|
+46%
|
$ 15,496
|
$ 12,050
|
+29%
|
|
|
|
|
|
|
|
|
|
|
TAX
DATA
|
|
|
|
|
|
|
|
|
|
Tax-Exempt Muni
Income
|
|
$
1,002
|
$
932
|
+8%
|
$
765
|
+31%
|
$
2,739
|
$
2,225
|
+23%
|
Interest Income -
Fully Tax Equiv
|
|
$
20,372
|
$
19,557
|
+4%
|
$
18,206
|
+12%
|
$
58,265
|
$
50,958
|
+14%
|
|
|
|
|
|
|
|
|
|
|
NET
CHARGE-OFFS
|
|
$
446
|
$
658
|
-32%
|
$
162
|
+175%
|
$
1,217
|
$
543
|
+124%
|
|
Note: An "NM"
designation indicates that the percentage change is "Not
Meaningful", likely due to the fact that numbers for the
comparative periods are of opposite signs or because the
denominator is zero
|
PER SHARE
DATA
|
|
|
|
|
|
|
|
|
|
(unaudited)
|
|
Qtr
Ended:
|
3Q17
vs
|
Qtr
Ended:
|
3Q17
vs
|
Nine Months
Ended:
|
YTD17
vs
|
|
|
9/30/2017
|
6/30/2017
|
2Q17
|
9/30/2016
|
3Q16
|
9/30/2017
|
9/30/2016
|
YTD16
|
Basic Earnings per
Share
|
|
$0.41
|
$0.38
|
+8%
|
$0.28
|
+46%
|
$1.12
|
$0.90
|
+24%
|
Diluted Earnings per
Share
|
|
$0.41
|
$0.37
|
+11%
|
$0.28
|
+46%
|
$1.11
|
$0.89
|
+25%
|
Common
Dividends
|
|
$0.14
|
$0.14
|
0%
|
$0.12
|
+17%
|
$0.42
|
$0.36
|
+17%
|
|
|
|
|
|
|
|
|
|
|
Wtd. Avg. Shares
Outstanding
|
|
13,839,111
|
13,831,345
|
0%
|
13,790,107
|
0%
|
13,824,173
|
13,446,567
|
+3%
|
Wtd. Avg. Diluted
Shares
|
|
14,013,987
|
14,010,328
|
0%
|
13,904,460
|
+1%
|
14,010,894
|
13,560,716
|
+3%
|
|
|
|
|
|
|
|
|
|
|
Book Value per Basic
Share (EOP)
|
|
$15.83
|
$15.62
|
+1%
|
$15.12
|
+5%
|
$15.83
|
$15.12
|
+5%
|
Tangible Book Value
per Share (EOP)
|
$15.05
|
$14.84
|
+1%
|
$14.34
|
+5%
|
$15.05
|
$14.34
|
+5%
|
|
|
|
|
|
|
|
|
|
|
Common Shares
Outstanding (EOP)
|
|
13,840,429
|
13,832,549
|
0%
|
13,789,501
|
0%
|
13,840,429
|
13,789,501
|
0%
|
|
|
|
|
|
|
|
|
|
|
KEY FINANCIAL
RATIOS
|
|
|
|
|
|
|
|
|
|
(unaudited)
|
|
Qtr
Ended:
|
|
Qtr
Ended:
|
|
Nine Months
Ended:
|
|
|
|
9/30/2017
|
6/30/2017
|
|
9/30/2016
|
|
9/30/2017
|
9/30/2016
|
|
Return on Average
Equity
|
|
10.45%
|
9.75%
|
|
7.50%
|
|
9.70%
|
8.08%
|
|
Return on Average
Assets
|
|
1.10%
|
1.02%
|
|
0.81%
|
|
1.02%
|
0.89%
|
|
Net Interest Margin
(Tax-Equiv.)
|
|
3.97%
|
3.93%
|
|
3.93%
|
|
3.93%
|
3.93%
|
|
Efficiency Ratio
(Tax-Equiv.)
|
|
63.90%
|
63.30%
|
|
72.02%
|
|
65.40%
|
69.13%
|
|
Net C/O's to Avg
Loans (not annualized)
|
0.03%
|
0.05%
|
|
0.01%
|
|
0.10%
|
0.05%
|
|
STATEMENT OF
CONDITION
|
|
|
|
|
|
|
|
|
(balances in
$000's, unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Sep '17
vs
|
|
Sep '17
vs
|
|
Sep '17
vs
|
ASSETS
|
|
9/30/2017
|
6/30/2017
|
Jun
'17
|
12/31/2016
|
Dec
'16
|
9/30/2016
|
Sep
'16
|
Cash and Due from
Banks
|
|
$
54,607
|
$
77,175
|
-29%
|
$
120,442
|
-55%
|
$
65,442
|
-17%
|
Investment
Securities
|
|
583,200
|
579,581
|
+1%
|
530,083
|
+10%
|
535,580
|
+9%
|
|
|
|
|
|
|
|
|
|
Real Estate Loans
(non-Agricultural)
|
|
876,067
|
851,431
|
+3%
|
783,017
|
+12%
|
739,165
|
+19%
|
Agricultural Real
Estate Loans
|
|
145,550
|
136,927
|
+6%
|
134,480
|
+8%
|
135,926
|
+7%
|
Agricultural
Production Loans
|
|
49,315
|
54,436
|
-9%
|
46,229
|
+7%
|
52,640
|
-6%
|
Comm'l &
Industrial Loans & Leases
|
|
111,365
|
118,898
|
-6%
|
123,595
|
-10%
|
130,087
|
-14%
|
Mortgage Warehouse
Lines
|
|
119,031
|
126,633
|
-6%
|
163,045
|
-27%
|
185,865
|
-36%
|
Consumer
Loans
|
|
10,297
|
10,914
|
-6%
|
12,165
|
-15%
|
12,647
|
-19%
|
Gross Loans & Leases
|
|
1,311,625
|
1,299,239
|
+1%
|
1,262,531
|
+4%
|
1,256,330
|
+4%
|
Deferred Loan &
Lease Fees
|
|
2,705
|
2,768
|
-2%
|
2,924
|
-7%
|
2,956
|
-8%
|
Loans & Leases Net of Deferred Fees
|
|
1,314,330
|
1,302,007
|
+1%
|
1,265,455
|
+4%
|
1,259,286
|
+4%
|
Allowance for Loan
& Lease Losses
|
|
(8,784)
|
(9,230)
|
-5%
|
(9,701)
|
-9%
|
(9,880)
|
-11%
|
Net Loans & Leases
|
|
1,305,546
|
1,292,777
|
+1%
|
1,255,754
|
+4%
|
1,249,406
|
+4%
|
|
|
|
|
|
|
|
|
|
Bank Premises &
Equipment
|
|
28,373
|
28,438
|
0%
|
28,893
|
-2%
|
28,781
|
-1%
|
Other
Assets
|
|
106,267
|
100,009
|
+6%
|
97,701
|
+9%
|
94,031
|
+13%
|
Total
Assets
|
|
$ 2,077,993
|
$ 2,077,980
|
0%
|
$ 2,032,873
|
+2%
|
$ 1,973,240
|
+5%
|
|
|
|
|
|
|
|
|
|
LIABILITIES &
CAPITAL
|
|
|
|
|
|
|
|
|
Non-Interest Demand
Deposits
|
|
$
571,509
|
$
557,617
|
+2%
|
$
524,552
|
+9%
|
$
498,391
|
+15%
|
Int-Bearing
Transaction Accounts
|
|
496,647
|
541,176
|
-8%
|
498,824
|
0%
|
464,418
|
+7%
|
Savings
Deposits
|
|
245,093
|
232,456
|
+5%
|
215,693
|
+14%
|
212,053
|
+16%
|
Money Market
Deposits
|
|
122,772
|
119,714
|
+3%
|
119,417
|
+3%
|
119,777
|
+3%
|
Customer Time
Deposits
|
|
343,558
|
340,894
|
+1%
|
336,985
|
+2%
|
339,192
|
+1%
|
Wholesale Brokered
Deposits
|
|
-
|
-
|
0%
|
-
|
0%
|
-
|
0%
|
Total Deposits
|
|
1,779,579
|
1,791,857
|
-1%
|
1,695,471
|
+5%
|
1,633,831
|
+9%
|
|
|
|
|
|
|
|
|
|
Junior Subordinated
Debentures
|
|
34,544
|
34,499
|
0%
|
34,410
|
0%
|
34,365
|
+1%
|
Other
Interest-Bearing Liabilities
|
|
20,779
|
11,296
|
+84%
|
73,094
|
-72%
|
80,870
|
-74%
|
Total Deposits & Int.-Bearing Liab.
|
|
1,834,902
|
1,837,652
|
0%
|
1,802,975
|
+2%
|
1,749,066
|
+5%
|
|
|
|
|
|
|
|
|
|
Other
Liabilities
|
|
24,008
|
24,205
|
-1%
|
24,020
|
0%
|
15,646
|
+53%
|
Total
Capital
|
|
219,083
|
216,123
|
+1%
|
205,878
|
+6%
|
208,528
|
+5%
|
Total Liabilities & Capital
|
|
$ 2,077,993
|
$ 2,077,980
|
0%
|
$ 2,032,873
|
+2%
|
$ 1,973,240
|
+5%
|
GOODWILL &
INTANGIBLE ASSETS
|
|
|
|
|
|
|
|
|
(balances in
$000's, unaudited)
|
|
|
|
Sep '17
vs
|
|
Sep '17
vs
|
|
Sep '17
vs
|
|
|
9/30/2017
|
6/30/2017
|
Jun
'17
|
12/31/2016
|
Dec
'16
|
9/30/2016
|
Sep
'16
|
Goodwill
|
|
8,268
|
8,268
|
0%
|
8,268
|
0%
|
7,932
|
+4%
|
Core Deposit
Intangible
|
|
2,483
|
2,589
|
-4%
|
2,803
|
-11%
|
2,909
|
-15%
|
Total
Intangible Assets
|
|
10,751
|
10,857
|
-1%
|
11,071
|
-3%
|
10,841
|
-1%
|
|
|
|
|
|
|
|
|
|
CREDIT
QUALITY
|
|
|
|
|
|
|
|
|
(balances in
$000's, unaudited)
|
|
|
|
Sep '17
vs
|
|
Sep '17
vs
|
|
Sep '17
vs
|
|
|
9/30/2017
|
6/30/2017
|
Jun
'17
|
12/31/2016
|
Dec
'16
|
9/30/2016
|
Sep
'16
|
Non-Accruing
Loans
|
|
$
4,118
|
$
5,652
|
-27%
|
$
6,365
|
-35%
|
$
6,285
|
-34%
|
Foreclosed
Assets
|
|
2,674
|
2,141
|
+25%
|
2,225
|
+20%
|
2,782
|
-4%
|
Total Nonperforming Assets
|
|
$ 6,792
|
$ 7,793
|
-13%
|
$ 8,590
|
-21%
|
$ 9,067
|
-25%
|
|
|
|
|
|
|
|
|
|
Performing TDR's (not
incl. in NPA's)
|
|
$
12,707
|
$
13,640
|
-7%
|
$
14,182
|
-10%
|
$
14,478
|
-12%
|
|
|
|
|
|
|
|
|
|
Non-Perf Loans to
Gross Loans
|
|
0.31%
|
0.44%
|
|
0.50%
|
|
0.50%
|
|
NPA's to Loans plus
Foreclosed Assets
|
|
0.52%
|
0.60%
|
|
0.68%
|
|
0.72%
|
|
Allowance for Ln
Losses to Loans
|
|
0.67%
|
0.71%
|
|
0.77%
|
|
0.79%
|
|
|
|
|
|
|
|
|
|
|
SELECT PERIOD-END
STATISTICS
|
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
9/30/2017
|
6/30/2017
|
|
12/31/2016
|
|
9/30/2016
|
|
Shareholders Equity /
Total Assets
|
|
10.5%
|
10.4%
|
|
10.1%
|
|
10.6%
|
|
Gross Loans /
Deposits
|
|
73.7%
|
72.5%
|
|
74.5%
|
|
76.9%
|
|
Non-Int. Bearing Dep.
/ Total Dep.
|
|
32.1%
|
31.1%
|
|
30.9%
|
|
30.5%
|
|
AVG BAL SHEET,
INTEREST INC/EXP, & YIELD/RATE
|
|
|
|
|
|
|
|
|
(balances in
$000's, unaudited)
|
|
For the quarter
ended
|
|
For the quarter
ended
|
|
For the quarter
ended
|
|
|
September 30,
2017
|
|
June 30,
2017
|
|
September 30,
2016
|
|
|
Average
Balance
|
Income/
Expense
|
Yield/
Rate
|
|
Average
Balance
|
Income/
Expense
|
Yield/
Rate
|
|
Average
Balance
|
Income/
Expense
|
Yield/
Rate
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal funds
sold/due from time
|
|
$
18,743
|
$
63
|
1.32%
|
|
$
53,965
|
$
139
|
1.02%
|
|
$
11,221
|
$
29
|
1.01%
|
Taxable
|
|
446,395
|
2,224
|
1.95%
|
|
437,470
|
2,147
|
1.94%
|
|
419,218
|
1,879
|
1.75%
|
Non-taxable
|
|
142,544
|
1,002
|
4.23%
|
|
131,972
|
932
|
4.30%
|
|
112,600
|
765
|
4.09%
|
Total investments
|
|
607,682
|
3,289
|
2.47%
|
|
623,407
|
3,218
|
2.36%
|
|
543,039
|
2,673
|
2.22%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and
Leases:
|
|
|
|
|
|
|
|
|
|
|
|
|
Real
estate
|
|
999,692
|
12,772
|
5.07%
|
|
969,925
|
12,207
|
5.05%
|
|
860,753
|
10,931
|
5.05%
|
Agricultural
Production
|
|
51,063
|
651
|
5.06%
|
|
50,942
|
620
|
4.88%
|
|
52,979
|
576
|
4.33%
|
Commercial
|
|
113,166
|
1,483
|
5.20%
|
|
116,719
|
1,577
|
5.42%
|
|
126,190
|
1,685
|
5.31%
|
Consumer
|
|
11,046
|
328
|
11.78%
|
|
11,577
|
307
|
10.64%
|
|
13,456
|
395
|
11.68%
|
Mortgage
warehouse lines
|
|
109,547
|
1,258
|
4.56%
|
|
97,191
|
1,077
|
4.44%
|
|
155,487
|
1,501
|
3.84%
|
Other
|
|
3,392
|
51
|
5.97%
|
|
3,309
|
49
|
5.94%
|
|
2,035
|
33
|
6.45%
|
Total loans and leases
|
|
1,287,906
|
16,543
|
5.10%
|
|
1,249,663
|
15,837
|
5.08%
|
|
1,210,900
|
15,121
|
4.97%
|
Total interest
earning assets
|
|
1,895,588
|
$
19,832
|
4.26%
|
|
1,873,070
|
$
19,055
|
4.19%
|
|
1,753,939
|
$
17,794
|
4.13%
|
Other earning
assets
|
|
8,741
|
|
|
|
8,689
|
|
|
|
8,268
|
|
|
Non-earning
assets
|
|
163,525
|
|
|
|
156,643
|
|
|
|
156,657
|
|
|
Total assets
|
|
$
2,067,854
|
|
|
|
$
2,038,402
|
|
|
|
$
1,918,864
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
and shareholders' equity
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
bearing deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand
deposits
|
|
$
136,304
|
$
106
|
0.31%
|
|
$
157,482
|
$
122
|
0.31%
|
|
$
136,467
|
$
105
|
0.31%
|
NOW
|
|
376,067
|
106
|
0.11%
|
|
374,304
|
104
|
0.11%
|
|
338,086
|
95
|
0.11%
|
Savings
accounts
|
|
238,824
|
65
|
0.11%
|
|
228,859
|
58
|
0.10%
|
|
211,900
|
59
|
0.11%
|
Money
market
|
|
120,086
|
24
|
0.08%
|
|
118,172
|
23
|
0.08%
|
|
117,854
|
24
|
0.08%
|
Customer Time
Deposits
|
|
343,564
|
731
|
0.84%
|
|
341,442
|
561
|
0.66%
|
|
326,218
|
292
|
0.36%
|
Wholesale
Brokered Deposits
|
|
0
|
0
|
0.00%
|
|
0
|
0
|
0.00%
|
|
0
|
0
|
0.00%
|
Total interest bearing deposits
|
|
1,214,845
|
1,032
|
0.34%
|
|
1,220,259
|
868
|
0.29%
|
|
1,130,525
|
575
|
0.20%
|
Borrowed
funds:
|
|
|
|
|
|
|
|
|
|
|
|
|
Junior
Subordinated Debentures
|
|
34,519
|
351
|
4.03%
|
|
34,475
|
337
|
3.92%
|
|
37,319
|
261
|
2.78%
|
Other
Interest-Bearing Liabilities
|
|
9,862
|
14
|
0.56%
|
|
10,233
|
10
|
0.39%
|
|
44,895
|
51
|
0.45%
|
Total borrowed funds
|
|
44,381
|
365
|
3.26%
|
|
44,708
|
347
|
3.11%
|
|
82,214
|
312
|
1.51%
|
Total interest bearing liabilities
|
|
1,259,226
|
$
1,397
|
0.44%
|
|
1,264,967
|
$
1,215
|
0.39%
|
|
1,212,739
|
$
887
|
0.29%
|
Demand deposits
- non-interest bearing
|
|
560,057
|
|
|
|
533,570
|
|
|
|
481,996
|
|
|
Other
liabilities
|
|
30,487
|
|
|
|
25,945
|
|
|
|
15,678
|
|
|
Shareholders'
equity
|
|
218,084
|
|
|
|
213,920
|
|
|
|
208,451
|
|
|
Total liabilities and shareholders'
equity
|
$
2,067,854
|
|
|
|
$
2,038,402
|
|
|
|
$
1,918,864
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income/interest earning assets
|
|
|
|
4.26%
|
|
|
|
4.19%
|
|
|
|
4.13%
|
Interest
expense/interest earning assets
|
|
|
|
0.29%
|
|
|
|
0.26%
|
|
|
|
0.20%
|
Net interest income
and margin
|
|
|
$
18,435
|
3.97%
|
|
|
$
17,840
|
3.93%
|
|
|
$
16,907
|
3.93%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOTE: Where
impacted by non-taxable income, yields and net interest margins
have been computed on a tax equivalent basis utilizing a 35% tax
rate.
|
View original content with
multimedia:http://www.prnewswire.com/news-releases/sierra-bancorp-reports-earnings-300540809.html
SOURCE Sierra Bancorp