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, 2024. Sierra Bancorp
reported consolidated net income of $10.6 million, or $0.74 per
diluted share, for the third quarter of 2024, an increase of $0.3
million, or 3%, as compared to the second quarter of 2024. In
addition, the Company reported consolidated net income of $30.2
million for the first nine months of 2024, an increase of $1.6
million, or 6%, as compared to the same period in 2023. Diluted
earnings per share for the nine-month period ended September 30,
2024, increased to $2.09, or 8%, from $1.93 diluted earnings per
share for the same period in 2023.
Highlights for the third quarter of 2024:
- Improved Earnings and Consistently Strong Earnings
Metrics
- Diluted Earnings Per Share increased 4%, or $0.03, from the
prior linked quarter.
- Improved net interest income by $0.6 million, or 2%, as
compared to the prior linked quarter.
- Maintained strong net interest margin of 3.66%, as compared to
3.69% in the prior linked quarter.
- Return on Average Assets of 1.14%, which is unchanged from the
prior linked quarter.
- Return on Average Equity of 11.95%, which is unchanged from the
prior linked quarter.
- Solid Asset Quality
- Total nonperforming loans to total gross loans ratio of 0.45%,
with total classified loans down $6.4 million, year-to-date, to
$29.1 million.
- No foreclosed assets at September 30, 2024.
- Net charge-offs to total loans during the quarter of
0.01%.
- Regulatory Commercial Real Estate Concentration Ratio declined
to 236.43%, from 241.05%, during the quarter.
- Growth of Loans and Deposits
- Loan growth of $86.1 million, or 15% annualized, during the
quarter, to $2.3 billion.
- Total deposits increased by $19.7 million, or 3% annualized,
during the quarter, to $3.0 billion.
- Noninterest-bearing deposits of $1.0 billion at September 30,
2024, represent 34% of total deposits.
- Solid Capital and Liquidity
- Increased Tangible Book Value (non-GAAP) per share by 3%,
during the quarter, to $22.93 per share.
- Repurchased 48,904 shares of common stock during the
quarter.
- Declared dividend of $0.24 per share, payable on November 12,
2024, our 103rd consecutive quarterly dividend.
- Strong regulatory Community Bank Leverage Ratio increased to
11.70%, at September 30, 2024, for our subsidiary Bank.
- Consolidated Tangible Common Equity Ratio (non-GAAP) increased
to 9.01%, at September 30, 2024.
- Overall primary and secondary liquidity sources of $2.4
billion, at September 30, 2024.
“If opportunity doesn’t knock, make a door.”
Milton Berle
“We are happy to share our third quarter results, which
demonstrate our entire team’s commitment to providing fantastic
service to our customers and communities,” stated Kevin McPhaill,
CEO and President. “While the current interest rate environment
still presents the banking industry with unique challenges, our
teams continue to improve profitability and grow loans and
deposits. They are consistently finding opportunities to both bring
new customers on board and strengthen our existing relationships. I
speak for our entire team of dedicated bankers when I say we are
proud of our results, we remain committed to excellent service, and
we are incredibly excited about our future!” concluded Mr.
McPhaill.
For the first nine months of 2024, the Company increased net
income to $30.2 million, or $2.09 per diluted share, as compared to
$28.6 million, or $1.93 per diluted share, for the same period in
2023. The year-over-year improvement is due primarily to higher net
interest income of $5.1 million, despite a $1.8 million increase in
the provision for credit losses in 2024. Increases of $1.7 million
in noninterest income, were mostly offset by a $1.5 million
increase in noninterest expense. The Company’s financial
performance metrics for the first nine months of 2024 include an
annualized return on average assets and a return on average equity
of 1.11% and 11.67%, respectively, compared to 1.03% and 12.41%,
respectively, for the same period in 2023.
Financial Highlights
Quarterly Changes (comparisons to the third quarter of
2023)
- Net income increased 7%, or $0.7 million, to $10.6 million due
to higher net interest income, partially offset by an increase in
the provision for credit losses.
- The $2.7 million increase in net interest income was driven by
a 27 basis point increase in net interest margin. This is primarily
a result of a balance sheet restructuring, including a bond sale,
in the first quarter of 2024, along with higher loan yields.
- Noninterest income was mostly flat for the quarter, with
increases in service charge income offset by decreases in other
noninterest income, primarily from life insurance proceeds received
in 2023 that did not reoccur in 2024.
- Noninterest expense was $0.2 million higher in the third
quarter over the same quarter last year. While salary and benefit
costs decreased due to a strategic internal reorganization in the
fourth quarter of 2023, this was offset by an increase in occupancy
costs, due to the sale/leaseback of certain branches in the fourth
quarter of 2023.
Linked Quarter Income Changes (comparisons to the three
months ended June 30, 2024)
- Net income improved by $0.3 million, or 3%, driven mostly by a
$0.6 million increase in net interest income, offset by a $0.5
million increase in the provision for credit losses.
- Net interest income increased by $0.6 million, due to an
increase in average earning assets, partially offset by an increase
in interest-bearing liabilities, at a higher cost of funds.
Year to-Date Income Changes (comparisons to the first nine
months of 2023)
- Net income increased $1.6 million, or 6%. This was primarily
driven by an increase of $5.1 million or 6% in net interest income,
due mostly to an overall increase in interest rates on earning
assets. While we experienced higher yields and balances on loans,
this was complemented by a decrease in borrowed funds and a
decrease in the rate paid on the remaining balance of borrowed
funds. Partially offsetting these positive variances was an
increase in the provision for credit losses, and an increase in
occupancy expenses from the sale/leaseback of branch buildings in
late 2023.
- The provision for credit losses was $2.4 million, an increase
of $2.2 million, primarily due to an increase in net charge-offs in
the second quarter of 2024, due to a foreclosure of a single
property.
- Noninterest income increased by $1.7 million, or 7%. Service
charges on deposit accounts were $1.0 million higher, due mostly to
higher interchange income, an increase in analysis fees, and other
transaction-based fees, combined with a net $0.6 million gain, from
the balance sheet restructuring earlier in the year.
- Noninterest expense increased $1.5 million, or 2%, due mostly
to increases in rent expense from the sale/ leaseback of branch
buildings at the end of 2023.
Statement of Condition Changes (comparisons to December 31,
2023)
- Total assets decreased by $33.6 million, or 1%, to $3.7
billion, during the first nine months of the year due primarily to
the strategic restructuring of our lower-yielding bond portfolio in
the first quarter of 2024, partially offset by increases in loan
balances.
- Gross loans increased $230.6 million, due to a $219.8 million
increase in mortgage warehouse line utilization, a $10.6 million
increase in commercial real estate loans, a $13.3 million increase
in farmland loans, and a $12.0 million increase in commercial
loans. This favorable growth was partially offset by a $23.9
million decrease in residential real estate loans, and smaller
declines in construction and consumer loans.
- Deposits totaled $3.0 billion at September 30, 2024,
representing a year-to-date increase of $200.9 million, or 7%. The
growth in deposits came mostly from a $175.0 million increase in
brokered deposits to fund mortgage warehouse lines, and a $40.6
million increase in transaction accounts offset by smaller declines
in customer non-transaction accounts.
- Other interest-bearing liabilities decreased $262.1 million,
from a decrease in overnight borrowings facilitated by the
strategic balance sheet restructuring in the first quarter of 2024,
and a decrease in FHLB advances, as we utilized brokered deposits
not only to fund mortgage lines, but to pay down more costly FHLB
lines of credit.
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
nine months ended
9/30/2024
6/30/2024
9/30/2023
9/30/2024
9/30/2023
Net income
$
10,603
$
10,263
$
9,885
$
30,196
$
28,555
Diluted earnings per share
$
0.74
$
0.71
$
0.68
$
2.09
$
1.93
Return on average assets
1.14%
1.14%
1.04%
1.11%
1.03%
Return on average equity
11.95%
11.95%
12.62%
11.67%
12.41%
Net interest margin (tax-equivalent)
(1)
3.66%
3.69%
3.30%
3.66%
3.39%
Yield on average loans
5.25%
5.16%
4.73%
5.11%
4.66%
Yield on average investments
5.42%
5.58%
5.25%
5.52%
5.00%
Cost of average total deposits
1.62%
1.53%
1.20%
1.51%
1.04%
Cost of funds
1.72%
1.67%
1.67%
1.66%
1.44%
Efficiency ratio (tax-equivalent) (1)
(2)
58.38%
59.15%
61.46%
61.07%
62.83%
Total assets
$
3,696,154
$
3,681,202
$
3,738,880
$
3,696,154
$
3,738,880
Loans net of deferred fees
$
2,321,025
$
2,234,816
$
2,100,973
$
2,321,025
$
2,100,973
Noninterest demand deposits
$
1,013,743
$
986,927
$
1,059,878
$
1,013,743
$
1,059,878
Total deposits
$
2,962,159
$
2,942,410
$
2,869,720
$
2,962,159
$
2,869,720
Noninterest-bearing deposits over total
deposits
34.22%
33.54%
36.93%
34.22%
36.93%
Shareholders' equity / total assets
9.70%
9.51%
8.26%
9.70%
8.26%
Tangible common equity ratio (2)
9.01%
8.81%
7.54%
9.01%
7.54%
Book value per share
$
24.88
$
24.19
$
21.01
$
24.88
$
21.01
Tangible book value per share (2)
$
22.93
$
22.24
$
19.04
$
22.93
$
19.04
Community bank leverage ratio (subsidiary
bank)
11.70%
11.60%
11.05%
11.70%
11.05%
Tangible common equity ratio (subsidiary
bank) (2)
10.90%
10.60%
9.44%
10.90%
9.44%
(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 $30.8 million for the third quarter of
2024, a $2.7 million increase, or 10% over the third quarter of
2023, and increased $5.1 million, or 6%, to $89.7 million for the
first nine months of 2024 relative to the same period in 2023.
For the third quarter of 2024, although the balance of average
interest-earning assets was $74.0 million lower, the yield was 37
basis points higher as compared to the same period in 2023. There
was a four basis point increase in the cost of our interest-bearing
liabilities for the same period, which partially offset some of the
higher yields on the asset side. Net interest income for the
comparative year-to-date periods increased $5.1 million, or 6%, due
to a strategic change in mix of average interest-earning assets in
the fourth quarter of 2023 and the first quarter of 2024. This
change was moderated by an increase in rates paid on
interest-bearing liabilities. There was a $136.1 million, or 7%,
increase in average loan and lease balances yielding 45 basis
points higher for the same period, while average investment
balances decreased $238.5 million, yielding 52 basis points higher
for the same period. Average interest-bearing liabilities decreased
$82.2 million, mostly in borrowed funds. The cost of
interest-bearing liabilities was 28 basis points higher for the
comparative periods. The favorable net impact of the mix and rate
change was a 27 basis point increase in our net interest margin for
the nine months ending September 30, 2024, as compared to the same
period in 2023.
Interest expense was $14.0 million for the third quarter of
2024, a decrease of $0.3 million, relative to the third quarter of
2023. For the first nine months of 2024, compared to the same
period in 2023, interest expense increased $3.4 million to $39.6
million. The increase in interest expense for the first nine months
of 2024, as compared to the same period in 2023, was attributable
to an increase in higher cost brokered deposits to fund mortgage
warehouse lines, along with a net overall interest rate increase in
customer deposit account balances. Compounding the interest rate
increases, there was a shift in the mix of average deposits with an
increase in higher-yielding money market and time deposit account
types. These increases were partially offset by decreases in other
borrowed funds. For the first nine months of 2024, compared to the
same period in 2023, the average balance of higher cost customer
time deposits, interest-bearing demand and money market deposits
increased $51.4 million, while wholesale brokered deposits
increased $112.5 million. Borrowed funds decreased $126.1 million,
and lower cost or no cost deposits decreased $194.0 million.
Our net interest margin was 3.66% for the third quarter of 2024,
as compared to 3.69% for the linked quarter, and 3.30% for the
third quarter of 2023. While the yield of interest-earning assets
increased one basis point for the third quarter of 2024 as compared
to the linked quarter, the cost of interest-bearing liabilities
increased seven basis points for the same period in 2023. The
average balance of interest-earning assets increased $56.9 million
for the linked quarter, while the increase in interest-bearing
liabilities was $15.9 million for the same period. Even though the
volume increase of interest-earning assets was more than the
increase in interest-bearing liabilities, the larger rate increase
on liabilities caused a slight compression in net interest margin
for the linked quarter.
Provision for Credit Losses
The provision for credit losses on loans was $1.2 million for
the third quarter of 2024, as compared to a $0.1 million in the
third quarter of 2023. There was a year-to-date provision for
credit losses on loans of $2.3 million in 2024, as compared to $0.4
million for the same period in 2023. The Company's $1.1 million
increase in the provision for credit losses on loans in the third
quarter of 2024, as compared to the third quarter of 2023, and the
$1.8 million year-to-date increase in the provision for credit
losses on loans, compared to the same period in 2023, was primarily
due to the impact of $3.0 million in net charge-offs in the first
nine months of 2024, with only $0.4 million in net charge-offs for
the first nine months of 2023. The increase in net charge-offs was
primarily related to a single office building, which was
subsequently foreclosed upon and sold.
There was a provision for credit losses on unfunded commitments
for $0.1 million in the third quarter of 2024, and $0.1 million for
the first nine months of 2024, as compared to a $0.2 million
benefit for credit losses in the third quarter of 2023 and a $0.2
million benefit for credit losses in the first nine months of 2023.
The reason for the increase in both the quarterly and year-to-date
comparisons is due to an increase in the balance of unfunded
commitments combined with an increase in the reserve rate utilized
in the calculation of the reserves.
The Company recorded a small benefit for credit losses on
available-for-sale debt securities for the three months and nine
months ending 2024. The benefit was a result of a change in the
reserve rates utilized in the calculation of the reserves, due to
updated municipal bond default rates across all credit ratings,
combined with an aging municipal bond portfolio. 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 was unchanged for the quarter ended
September 30, 2024, as compared to the same quarter in 2023, and
increased $1.7 million, or 7%, for the year-to-date period ended
September 30, 2024, as compared to the same period in 2023. The
year-to-date comparison was impacted by an increase in service
charge income on deposit accounts, favorable fluctuations in income
on Bank Owned Life Insurance (BOLI) with underlying investments
mapped directly to the Company’s deferred compensation plan and a
net gain on the balance sheet restructure earlier in the year.
Offsetting these positive variances was a decrease in other income
which is related to life insurance proceeds received in 2023 with
no like proceeds in 2024.
The Company maintains a non-qualified deferred compensation plan
for officers and directors, which allows the participant to defer a
portion of their earnings tax-free. Participants are allowed to
choose different hypothetical investment alternatives to determine
their individualized return on their deferred compensation. The
Company has chosen to offset the cost of this liability with a BOLI
Policy, which is funded based on deferral elections from the
participants. Although the BOLI is not directly tied to the
deferred compensation plan, the BOLI is invested in similar fund
types as those selected by the participants. There is some
inefficiency in net earnings of the BOLI asset as compared to the
deferred compensation liability created by the cost of insurance,
differences in balances, and differences in individual fund
performance. During the third quarter, and first nine months of
2024, earnings from the BOLI were $0.3 million, and $1.5 million,
respectively, while additional expense from the related deferred
compensation liability was $0.3 million, and $1.7 million,
respectively. Most of such expense is reported as professional fees
under directors’ fees as such expense is related to deferral of
past directors’ fees. Specifically, $0.3 million for the quarterly
comparison, and $1.4 million for the year-to-date comparison,
respectively, is reflected as directors’ fees as part of the
overall professional fees expense line item. The tax benefit of
having tax-free earnings with tax-deductible expense was $0.2
million during the third quarter of 2024, and $1.0 million for the
first nine months of 2024.
Noninterest Expense
Total noninterest expense increased by $0.2 million, or 1%, in
the third quarter of 2024, relative to the third quarter of 2023,
and by $1.5 million, or 2%, for the first nine months of 2024, as
compared to the same period in 2023.
Salaries and Benefits were $0.3 million, or 2%, lower in the
third quarter of 2024 as compared to the third quarter of 2023, and
unchanged for the first nine months of 2024, compared to the same
period in 2023. The Company made strategic decisions in 2023 that
created operational efficiencies and reduced costs. While the
number of full-time equivalent employees did not change for the
first nine months of 2024, compared to the year ending December 31,
2024, the composition of the workforce changed resulting in reduced
salaries and benefits costs, during the third quarter of 2024.
There were 489 full-time equivalent employees at September 30,
2024, as compared to 489 at December 31, 2023, and 487 at September
30, 2023.
Occupancy expenses increased by $0.5 million, and $1.9 million
for the third quarter, and the first nine months of 2024 as
compared to the same periods in 2023. The reason for the increases
in both comparisons is due to increased rent expense from the
sale/leaseback transactions in the fourth quarter of 2023, and
first quarter of 2024.
Other noninterest expense was unchanged for the third quarter
2024, as compared to the third quarter in 2023, and decreased $0.4
million, or 2%, for the first nine months of 2024, as compared to
the same period in 2023. While the variances for the third quarter
of 2024, compared to the same period in 2023 offset each other, the
primary differences were decreases in marketing costs, which is
timing related, and a favorable variance in directors deferred
compensation expense, linked to the changes in BOLI income. These
favorable variances were offset by higher communications costs,
audit and review costs, and loan management software costs. The
Company implemented new loan origination and management software to
better serve our customers and create operational efficiencies. For
the year-over-year comparison, the categories of variance were the
same as with the quarterly comparison, except for an unfavorable
variance in directors’ deferred compensation expense, offset by
favorable variances in debit card processing and ATM network costs,
from a branding change to VISA from Mastercard last year, and the
subsequent costs in 2023 related to that change. Additionally,
there was a decrease in foreclosed asset costs, due to a
foreclosure and subsequent sale of one large credit relationship in
early 2023.
The Company's provision for income taxes was 26.4% of pre-tax
income in the third quarter of 2024, relative to 25.8% in the third
quarter of 2023, and 26.8% of pre-tax income for the first nine
months of 2024, relative to 25.3% for the same period in 2023. The
increase in effective tax rate for both the quarterly and
year-to-date comparisons is due to the tax credits, and tax-exempt
income representing a smaller percentage of total taxable
income.
Balance Sheet Summary
The $33.6 million, or 1%, decrease in total assets during the
first nine months of 2024, is primarily a result of a $323.9
million decrease in investment securities, from the sale of bonds
from the strategic securities transaction, partially offset by a
$230.6 million increase in gross loans, and a $54.2 million
increase in cash on hand.
The increase in gross loan balances, as compared to December 31,
2023, was mostly a result of organic growth; a $13.3 million
increase in farmland loans, a $10.6 million increase in commercial
real estate loans, a $112.0 million increase in other commercial
loans, and a favorable change of $219.8 million in mortgage
warehouse balances. Counterbalancing these positive loan variances
were loan paydowns and maturities resulting in net declines in
residential real estate loans.
As indicated in the loan roll forward table below, new credit
extended for the third quarter of 2024, increased on a
linked-quarter basis, but decreased $7.7 million over the same
period in 2023, and decreased $22.1 million for the year-to-date
comparisons. The year-to-date decline in organic loan growth is
attributable to competitive pressures in our market for strong
credit relationships, combined with a lower loan demand overall due
to the current high interest rate environment. We also had $48.4
million in loan paydowns and maturities; however, increases in
mortgage warehouse and credit line utilization of $98.8 million had
a positive impact in the third quarter.
LOAN ROLL FORWARD
(Dollars in Thousands, Unaudited)
For the three months
ended:
For the nine months
ended:
September 30, 2024
June 30, 2024
September 30, 2023
September 30, 2024
September 30, 2023
Gross loans beginning balance
$
2,234,528
$
2,156,864
$
2,094,391
$
2,090,075
$
2,052,940
New credit extended
61,239
40,313
68,980
136,518
158,619
Changes in line of credit utilization
(1)
11,572
(10,412
)
(22,517
)
(23,768
)
(41,685
)
Change in mortgage warehouse
61,718
70,498
(3,032
)
219,778
42,146
Pay-downs, maturities, charge-offs and
amortization
(48,428
)
(22,735
)
(37,012
)
(101,974
)
(111,210
)
Gross loans ending balance
$
2,320,629
$
2,234,528
$
2,100,810
2,320,629
2,100,810
(1)
Change does not include new balances on
lines of credit extended during the respective periods as such
balances are included as part of “New credit extended” line
above.
Unused commitments, excluding mortgage warehouse and overdraft
lines, were $237.7 million at September 30, 2024, compared to
$203.6 million at December 31, 2023. Total line utilization,
excluding mortgage warehouse and overdraft lines, was 59.2% at
September 30, 2024, and 62.3% at December 31, 2023. Mortgage
warehouse utilization increased to 54.6% at September 30, 2024, as
compared to 36.2% at December 31, 2023.
Deposit balances reflect growth of $200.9 million, or 7%, during
the first nine months of 2024. Core non-maturity deposits increased
by $31.0 million, or 6%, while customer time deposits decreased by
$5.0 million, or 1%. Wholesale brokered deposits increased by
$175.0 million, or 130%. As stated previously, the increase in
brokered deposits was utilized to fund increases in mortgage
warehouse lines. Overall noninterest-bearing deposits as a percent
of total deposits at September 30, 2024, decreased to 34.2%, as
compared to 37.0% at December 31, 2023.
Other interest-bearing liabilities of $205.5 million on
September 30, 2024, consist of $125.5 million in customer
repurchase agreements, and $80.0 million of FHLB borrowings.
Overall uninsured deposits are estimated to be approximately
$816.2 million, or 28% 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
$265 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
September 30, 2024, the Company had approximately 120,000 accounts,
and the 25 largest deposit balance customers had balances of
approximately 15% of overall deposits. During the third quarter of
2024, except for seasonality fluctuations in the normal course of
business, there has been no material change in the composition of
our 25 largest deposit balance customers.
The Company continues to have substantial liquidity. At
September 30, 2024, and December 31, 2023, the Company had the
following sources of primary and secondary liquidity (Dollars in
Thousands, Unaudited):
Primary and secondary liquidity
sources
September 30, 2024
December 31, 2023
Cash and cash equivalents
$
132,797
$
78,602
Unpledged investment securities
556,231
792,965
Excess pledged securities
286,355
382,965
FHLB borrowing availability
618,142
586,726
Unsecured lines of credit
504,785
374,785
Funds available through fed discount
window
342,711
392,034
Totals
$
2,441,021
$
2,608,077
Total capital of $358.7 million at September 30, 2024, reflects
an increase of $20.6 million, or 6%, relative to year-end 2023. The
increase in equity during the first nine months of 2024 was due to
the addition of $30.2 million in net income, a $7.4 million
favorable swing in accumulated other comprehensive income, due
principally to changes in investment securities’ fair value, offset
by $8.3 million in share repurchases, and $10.2 million in
dividends paid. The remaining difference is related to the impact
of equity compensation.
Asset Quality
Total nonperforming assets, comprised of nonaccrual loans,
increased by $2.4 million to $10.3 million for the first nine
months of 2024. The Company's ratio of nonperforming loans to gross
loans increased to 0.45% at September 30, 2024, from 0.38% at
December 31, 2023. The increase resulted from an increase in
non-accrual loan balances, primarily as a result of one non-owner
occupied commercial real estate loan on an office building. 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 $22.7 million at September 30, 2024, as compared to $23.5
million December 31, 2023. The decrease resulted from a reduction
in specific individual reserves on impaired loans due to the
charge-off associated with one commercial real estate loan.
The allowance for credit losses on loans and leases was 0.98% of
gross loans at September 30, 2024, and 1.12% of gross loans at
December 31, 2023. 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 September 30, 2024, 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. The Company calculates the allowance for
credit losses using a combination of quantitative and qualitative
factors applied to loans segmented by call report category. The
largest increase in loan balances was from mortgage warehouse
lines, which has the lowest reserve rate in the allowance for
credit losses at 0.14%. Therefore, at September 30, 2024,
approximately $0.5 million of the allowance for credit losses is
attributable to mortgage warehouse lines.
About Sierra Bancorp
Sierra Bancorp is the holding Company for Bank of the Sierra
(www.bankofthesierra.com), which is in its 47th year of
operations.
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. In 2024, 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
9/30/2024
6/30/2024
3/31/2024
12/31/2023
9/30/2023
Cash and due from banks
$
132,797
$
183,990
$
119,244
$
78,602
$
88,542
Investment securities
Available-for-sale, at fair value
706,310
716,787
741,789
1,019,201
1,010,377
Held-to-maturity, at amortized cost, net
of allowance for credit losses
308,971
312,879
316,406
320,057
323,544
Real estate loans
Residential real estate
388,169
396,819
406,443
412,063
418,782
Commercial real estate
1,338,793
1,316,754
1,327,482
1,328,224
1,334,663
Other construction/land
5,612
5,971
6,115
6,256
7,320
Farmland
80,589
80,807
66,133
67,276
90,993
Total real estate loans
1,813,163
1,800,351
1,806,173
1,813,819
1,851,758
Other commercial
168,236
156,650
143,448
156,272
137,407
Mortgage warehouse lines
335,777
274,059
203,561
116,000
107,584
Consumer loans
3,453
3,468
3,682
3,984
4,061
Gross loans
2,320,629
2,234,528
2,156,864
2,090,075
2,100,810
Deferred loan fees
396
288
214
309
163
Allowance for credit losses on loans
(22,710
)
(21,640
)
(23,140
)
(23,500
)
(23,060
)
Net loans
2,298,315
2,213,176
2,133,938
2,066,884
2,077,913
Bank premises and equipment
15,647
16,007
16,067
16,907
21,926
Other assets
234,114
238,363
225,628
228,148
216,578
Total assets
$
3,696,154
$
3,681,202
$
3,553,072
$
3,729,799
$
3,738,880
LIABILITIES AND CAPITAL
Noninterest demand deposits
$
1,013,743
$
986,927
$
968,996
$
1,020,772
$
1,059,878
Interest-bearing transaction accounts
595,672
537,731
532,791
533,947
561,257
Savings deposits
356,725
368,169
378,057
370,806
400,940
Money market deposits
135,948
136,853
134,533
145,591
130,914
Customer time deposits
550,121
566,132
560,979
555,107
551,731
Wholesale brokered deposits
309,950
346,598
271,648
135,000
165,000
Total deposits
2,962,159
2,942,410
2,847,004
2,761,223
2,869,720
Long-term debt
49,371
49,348
49,326
49,304
49,281
Subordinated debentures
35,794
35,749
35,704
35,660
35,615
Other interest-bearing liabilities
205,534
228,003
201,851
467,621
411,865
Total deposits and interest-bearing
liabilities
3,252,858
3,255,510
3,133,885
3,313,808
3,366,481
Allowance for credit losses on unfunded
loan commitments
640
520
540
510
600
Other liabilities
83,958
75,152
73,553
77,384
62,940
Total capital
358,698
350,020
345,094
338,097
308,859
Total liabilities and capital
$
3,696,154
$
3,681,202
$
3,553,072
$
3,729,799
$
3,738,880
GOODWILL AND INTANGIBLE ASSETS
(Dollars in Thousands, Unaudited)
9/30/2024
6/30/2024
3/31/2024
12/31/2023
9/30/2023
Goodwill
$
27,357
$
27,357
$
27,357
$
27,357
$
27,357
Core deposit intangible
780
961
1,180
1,399
1,618
Total intangible assets
$
28,137
$
28,318
$
28,537
$
28,756
$
28,975
CREDIT QUALITY
(Dollars in Thousands, Unaudited)
9/30/2024
6/30/2024
3/31/2024
12/31/2023
9/30/2023
Nonperforming loans
$
10,348
$
6,473
$
14,188
$
7,985
$
781
Foreclosed assets
—
—
—
—
—
Total nonperforming assets
$
10,348
$
6,473
$
14,188
$
7,985
$
781
Quarterly net charge offs
$
170
$
2,421
$
457
$
3,618
$
67
Past due and still accruing (30-89)
$
211
$
3,172
$
1,563
$
255
$
806
Classified loans
$
29,148
$
28,829
$
34,100
$
35,577
$
39,958
Nonperforming loans / gross loans
0.45%
0.29%
0.66%
0.38%
0.04%
NPA's / loans plus foreclosed assets
0.45%
0.29%
0.66%
0.38%
0.04%
Allowance for credit losses on loans /
gross loans
0.98%
0.97%
1.07%
1.12%
1.10%
SELECT PERIOD-END STATISTICS
(Unaudited)
9/30/2024
6/30/2024
3/31/2024
12/31/2023
9/30/2023
Shareholders' equity / total assets
9.70%
9.51%
9.71%
9.06%
8.26%
Gross loans / deposits
78.34%
75.94%
75.76%
75.69%
73.21%
Noninterest-bearing deposits / total
deposits
34.22%
33.54%
34.04%
36.97%
36.93%
CONSOLIDATED INCOME STATEMENT
(Dollars in Thousands, Unaudited)
For the three months
ended:
For the nine months
ended:
9/30/2024
6/30/2024
9/30/2023
9/30/2024
9/30/2023
Interest income
$
44,798
$
43,495
$
42,384
$
129,253
$
120,678
Interest expense
14,008
13,325
14,297
39,577
36,143
Net interest income
30,790
30,170
28,087
89,676
84,535
Credit loss expense - loans
1,240
921
117
2,258
444
Credit loss expense (benefit) - unfunded
commitments
120
(20
)
(150
)
130
(240
)
Credit loss benefit - debt securities
held-to-maturity
(1
)
-
-
(1
)
(47
)
Net interest income after credit loss
expense (benefit)
29,431
29,269
28,120
87,289
84,378
Service charges and fees on deposit
accounts
6,205
6,184
6,055
18,114
17,127
Gain (loss) on sale of investments
73
-
-
(2,810
)
396
Gain on sale of fixed assets
-
-
-
3,799
-
BOLI income
540
523
558
2,278
1,388
Other noninterest income
971
923
1,149
2,628
3,444
Total noninterest income
7,789
7,630
7,762
24,009
22,355
Salaries and benefits
12,363
12,029
12,623
37,589
37,567
Occupancy expense
2,995
3,152
2,482
9,173
7,251
Other noninterest expenses
7,452
7,511
7,457
23,266
23,704
Total noninterest expense
22,810
22,692
22,562
70,028
68,522
Income before taxes
14,410
14,207
13,320
41,270
38,211
Provision for income taxes
3,807
3,944
3,435
11,074
9,656
Net income
$
10,603
$
10,263
$
9,885
$
30,196
$
28,555
TAX DATA
Tax-exempt muni income
$
1,584
$
1,592
$
2,679
$
5,164
$
8,233
Interest income - fully tax equivalent
$
45,219
$
43,918
$
43,096
$
130,626
$
122,867
PER SHARE DATA
(Unaudited)
For the three months
ended:
For the nine months
ended:
9/30/2024
6/30/2024
9/30/2023
9/30/2024
9/30/2023
Basic earnings per share
$
0.75
$
0.72
$
0.68
$
2.11
$
1.93
Diluted earnings per share
$
0.74
$
0.71
$
0.68
$
2.09
$
1.93
Common dividends paid during period
$
0.24
$
0.23
$
0.23
$
0.70
$
0.69
Weighted average shares outstanding
14,188,051
14,300,267
14,583,132
14,331,032
14,762,231
Weighted average diluted shares
14,335,706
14,381,426
14,636,477
14,437,786
14,791,696
Book value per basic share (EOP)
$
24.88
$
24.19
$
21.01
$
24.88
$
21.01
Tangible book value per share (EOP)
(1)
$
22.93
$
22.24
$
19.04
$
22.93
$
19.04
Common shares outstanding (EOP)
14,414,561
14,466,873
14,702,079
14,414,561
14,702,079
(1)
See reconciliation of non-GAAP financial
measures to the corresponding GAAP measurement in "Non-GAAP
Financial Measures".
KEY FINANCIAL RATIOS
(Unaudited)
For the three months
ended:
For the nine months
ended:
9/30/2024
6/30/2024
9/30/2023
9/30/2024
9/30/2023
Return on average equity
11.95
%
11.95
%
12.62
%
11.67
%
12.41
%
Return on average assets
1.14
%
1.14
%
1.04
%
1.11
%
1.03
%
Net interest margin (tax-equivalent)
(1)
3.66
%
3.69
%
3.30
%
3.66
%
3.39
%
Efficiency ratio (tax-equivalent) (1)
(2)
58.38
%
59.15
%
61.46
%
61.07
%
62.83
%
Net charge-offs / average loans (not
annualized)
0.01
%
0.11
%
0.00
%
0.14
%
0.02
%
(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".
The following non-GAAP schedule reconciles the book value per
share to the tangible book value per share and the GAAP equity
ratio to the tangible equity ratio as of the dates indicated:
NON-GAAP FINANCIAL MEASURES
(Dollars in Thousands, Unaudited)
9/30/2024
6/30/2024
9/30/2023
Total stockholders' equity
$
358,698
$
350,020
$
308,859
Less: goodwill and other intangible
assets
28,137
28,318
28,975
Tangible common equity
$
330,561
$
321,702
$
279,884
Total assets
$
3,696,154
$
3,681,202
$
3,738,880
Less: goodwill and other intangible
assets
28,137
28,318
28,975
Tangible assets
$
3,668,017
$
3,652,884
$
3,709,905
Total stockholders' equity (bank only)
$
427,762
$
415,210
$
379,095
Less: goodwill and other intangible assets
(bank only)
28,137
28,318
28,975
Tangible common equity (bank only)
$
399,625
$
386,892
$
350,120
Total assets (bank only)
$
3,693,553
$
3,678,508
$
3,736,330
Less: goodwill and other intangible assets
(bank only)
28,137
28,318
28,975
Tangible assets (bank only)
$
3,665,416
$
3,650,190
$
3,707,355
Common shares outstanding
14,414,561
14,466,873
14,702,079
Book value per common share (total
stockholders' equity / shares outstanding)
$
24.88
$
24.19
$
21.01
Tangible book value per common share
(tangible common equity / shares outstanding)
$
22.93
$
22.24
$
19.04
Equity ratio - GAAP (total stockholders'
equity / total assets
9.70
%
9.51
%
8.26
%
Tangible common equity ratio (tangible
common equity / tangible assets)
9.01
%
8.81
%
7.54
%
Tangible common equity ratio (bank only)
(tangible common equity / tangible assets)
10.90
%
10.60
%
9.44
%
For the three months
ended:
Efficiency Ratio:
9/30/2024
6/30/2024
9/30/2023
Noninterest expense
$
22,810
$
22,692
$
22,562
Divided by:
Net interest income
30,790
30,170
28,087
Tax-equivalent interest income
adjustments
421
423
712
Net interest income, adjusted
31,211
30,593
28,799
Noninterest income
7,789
7,630
7,762
Less (loss) gain on sale of securities
73
-
-
Tax-equivalent noninterest income
adjustments
144
139
148
Noninterest income, adjusted
7,860
7,769
7,910
Net interest income plus noninterest
income, adjusted
$
39,071
$
38,362
$
36,709
Efficiency Ratio (tax-equivalent)
58.38
%
59.15
%
61.46
%
NONINTEREST INCOME/EXPENSE
(Dollars in Thousands, Unaudited)
For the three months
ended:
For the nine months
ended:
Noninterest income:
9/30/2024
6/30/2024
9/30/2023
9/30/2024
9/30/2023
Service charges and fees on deposit
accounts
$
6,205
$
6,184
$
6,055
$
18,114
$
17,127
Gain (loss) on sale of securities
available-for-sale
73
—
—
(2,810
)
396
Gain on sale of fixed assets
—
—
—
3,799
—
Bank-owned life insurance
540
523
558
2,278
1,388
Other
971
923
1,149
2,628
3,444
Total noninterest income
$
7,789
$
7,630
$
7,762
$
24,009
$
22,355
As a % of average interest-earning assets
(1)
0.91
%
0.92
%
0.89
%
0.97
%
0.87
%
Noninterest expense:
Salaries and employee benefits
$
12,363
$
12,029
$
12,623
$
37,589
$
37,567
Occupancy and equipment costs
2,995
3,152
2,482
9,173
7,251
Advertising and marketing costs
381
338
723
1,061
1,646
Data processing costs
1,555
1,680
1,369
4,744
4,433
Deposit services costs
2,150
2,019
2,048
6,302
6,603
Loan services costs
Loan processing
184
89
174
424
452
Foreclosed assets
—
—
(60
)
—
665
Other operating costs
959
1,094
765
2,980
3,244
Professional services costs
Legal & accounting services
547
714
493
1,976
1,623
Director's costs
501
646
732
2,401
1,733
Other professional service
775
582
707
2,167
2,053
Stationery & supply costs
120
115
148
382
414
Sundry & tellers
280
234
358
829
838
Total noninterest expense
$
22,810
$
22,692
$
22,562
$
70,028
$
68,522
As a % of average interest-earning assets
(1)
2.68
%
2.74
%
2.58
%
2.82
%
2.67
%
Efficiency ratio (tax-equivalent)
(2)(3)
58.38
%
59.15
%
61.46
%
61.07
%
62.83
%
(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
September 30, 2024
June 30, 2024
September 30, 2023
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 accounts
$
88,509
$
1,225
5.51
%
$
43,407
$
598
5.54
%
$
23,760
$
415
6.93
%
Taxable
830,054
11,991
5.75
%
866,270
12,787
5.94
%
1,005,372
14,375
5.67
%
Non-taxable
199,261
1,584
4.00
%
199,942
1,592
4.05
%
345,645
2,679
3.89
%
Total investments
1,117,824
14,800
5.42
%
1,109,619
14,977
5.58
%
1,374,777
17,469
5.25
%
Loans: (3)
Real estate
1,804,099
21,054
4.64
%
1,802,190
20,463
4.57
%
1,854,055
20,764
4.44
%
Agricultural production
81,501
1,520
7.42
%
75,825
1,406
7.46
%
37,096
649
6.94
%
Commercial
76,633
1,101
5.72
%
77,224
1,174
6.11
%
90,348
1,392
6.11
%
Consumer
3,558
78
8.72
%
3,698
79
8.59
%
4,303
87
8.02
%
Mortgage warehouse lines
303,463
6,227
8.16
%
261,768
5,382
8.27
%
100,549
2,004
7.91
%
Other
2,438
18
2.94
%
2,291
14
2.46
%
2,381
19
3.17
%
Total loans
2,271,692
29,998
5.25
%
2,222,996
28,518
5.16
%
2,088,732
24,915
4.73
%
Total interest-earning assets (4)
3,389,516
44,798
5.31
%
3,332,615
43,495
5.30
%
3,463,509
42,384
4.94
%
Other earning assets
17,062
17,058
17,355
Non-earning assets
288,975
286,020
275,883
Total assets
$
3,695,553
$
3,635,693
$
3,756,747
Liabilities and shareholders'
equity
Interest-bearing deposits:
Demand deposits
$
169,602
$
1,170
2.74
%
$
131,510
$
733
2.24
%
$
141,745
$
413
1.16
%
NOW
393,328
161
0.16
%
398,001
148
0.15
%
427,278
68
0.06
%
Savings accounts
359,921
93
0.10
%
371,961
80
0.09
%
408,158
69
0.07
%
Money market
132,804
542
1.62
%
139,507
476
1.37
%
127,649
194
0.60
%
Time deposits
562,251
6,010
4.25
%
563,526
6,051
4.32
%
557,504
6,514
4.64
%
Wholesale brokered deposits
327,141
4,004
4.87
%
307,995
3,544
4.63
%
162,065
1,509
3.69
%
Total interest-bearing deposits
1,945,047
11,980
2.45
%
1,912,500
11,032
2.32
%
1,824,399
8,767
1.91
%
Borrowed funds:
Repurchase agreements
133,280
60
0.18
%
131,478
66
0.20
%
83,222
53
0.25
%
Other borrowings
80,169
788
3.91
%
98,731
1,042
4.24
%
330,221
4,286
5.15
%
Long-term debt
49,357
429
3.46
%
49,335
430
3.51
%
49,268
429
3.45
%
Subordinated debentures
35,767
751
8.35
%
35,723
755
8.50
%
35,590
762
8.49
%
Total borrowed funds
298,573
2,028
2.70
%
315,267
2,293
2.93
%
498,301
5,530
4.40
%
Total interest-bearing liabilities
2,243,620
14,008
2.48
%
2,227,767
13,325
2.41
%
2,322,700
14,297
2.44
%
Demand deposits - noninterest-bearing
995,326
978,602
1,064,962
Other liabilities
103,571
83,886
58,340
Shareholders' equity
353,036
345,438
310,745
Total liabilities and shareholders'
equity
$
3,695,553
$
3,635,693
$
3,756,747
Interest income/interest-earning
assets
5.31
%
5.30
%
4.94
%
Interest expense/interest-earning
assets
1.65
%
1.61
%
1.64
%
Net interest income and margin
(5)
$
30,790
3.66
%
$
30,170
3.69
%
$
28,087
3.30
%
(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 tax
rate.
(3)
Loans are gross of the allowance for
credit 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 $(0.3) million for the
quarters ended September 30, 2024, and 2023, respectively, and
$(0.3) million for the quarter ended June 30, 2024.
(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 nine months
ended
For the nine months
ended
September 30, 2024
September 30, 2023
Average Balance (1)
Income/ Expense
Yield/ Rate (2)
Average Balance (1)
Income/ Expense
Yield/ Rate (2)
Assets
Investments:
Interest-earning due from banks
$
49,779
$
2,065
5.53
%
$
21,504
$
861
5.35
%
Taxable
863,044
38,081
5.88
%
991,302
39,848
5.37
%
Non-taxable
214,677
5,164
4.06
%
353,173
8,233
3.95
%
Total investments
1,127,500
45,310
5.52
%
1,365,979
48,942
5.00
%
Loans:(3)
Real estate
$
1,804,159
$
61,706
4.57
%
$
1,860,504
$
61,491
4.42
%
Agricultural
72,946
4,064
7.44
%
31,232
1,578
6.76
%
Commercial
77,684
3,458
5.95
%
81,397
3,564
5.85
%
Consumer
3,739
238
8.50
%
4,260
263
8.25
%
Mortgage warehouse lines
234,470
14,431
8.22
%
79,438
4,779
8.04
%
Other
2,354
46
2.61
%
2,443
61
3.34
%
Total loans
2,195,352
83,943
5.11
%
2,059,274
71,736
4.66
%
Total interest-earning assets (4)
3,322,852
129,253
5.25
%
3,425,253
120,678
4.80
%
Other earning assets
17,155
16,680
Non-earning assets
281,952
271,949
Total assets
$
3,621,959
$
3,713,882
Liabilities and shareholders'
equity
Interest-bearing deposits:
Demand deposits
$
146,443
$
2,601
2.37
%
$
145,316
$
731
0.67
%
NOW
396,644
393
0.13
%
454,900
214
0.06
%
Savings accounts
369,371
246
0.09
%
431,143
196
0.06
%
Money market
136,652
1,428
1.40
%
128,856
291
0.30
%
Time deposits
562,571
18,251
4.33
%
520,105
17,043
4.38
%
Brokered deposits
280,248
9,737
4.64
%
167,782
4,235
3.37
%
Total interest-bearing deposits
1,891,929
32,656
2.31
%
1,848,102
22,710
1.64
%
Borrowed funds:
Repurchase agreements
125,742
166
0.18
%
88,707
199
0.30
%
Other borrowings
99,388
3,203
4.30
%
262,755
9,828
5.00
%
Long-term debt
49,335
1,291
3.50
%
49,246
1,286
3.49
%
Subordinated debentures
35,722
2,261
8.45
%
35,545
2,120
7.97
%
Total borrowed funds
310,187
6,921
2.98
%
436,253
13,433
4.12
%
Total interest-bearing liabilities
2,202,116
39,577
2.40
%
2,284,355
36,143
2.12
%
Demand deposits - noninterest-bearing
988,128
1,062,114
Other liabilities
86,061
59,674
Shareholders' equity
345,654
307,739
Total liabilities and shareholders'
equity
$
3,621,959
$
3,713,882
Interest income/interest-earning
assets
5.25
%
4.80
%
Interest expense/interest-earning
assets
1.59
%
1.41
%
Net interest income and
margin(5)
$
89,676
3.66
%
$
84,535
3.39
%
(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 tax
rate.
(3)
Loans are gross of the allowance for
credit losses. Loan fees have been included in the calculation of
interest income. Net loan fees and loan acquisition FMV
amortization were $(1.1) million and $(0.7) million for the nine
months ended September 30, 2024, and 2023, 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/20241021595856/en/
Kevin McPhaill, President/CEO (559) 782‑4900 or (888) 454‑BANK
www.sierrabancorp.com
Sierra Bancorp (NASDAQ:BSRR)
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