Sierra Bancorp Reports First Quarter 2024 Results
Highlights for the first quarter of 2024:
-
Improved Earnings
-
Net Income of
$9.3 million , up 48% versus the fourth quarter of 2023 (the prior linked quarter). - Improved Return on Average Assets to 1.06% from 0.67% in the prior linked quarter.
- Increased Return on Average Equity to 11.09% from 8.03% in the prior linked quarter.
- Improved Net Interest Margin to 3.62% from 3.31% in the prior linked quarter.
-
Net Income of
-
Solid Asset Quality
- Total Nonperforming Assets at 0.66% of total gross loans.
-
Provision for loan loss of
$0.1 million , a reduction of$3.5 million from the prior linked quarter. -
Regulatory
Commercial Real Estate concentration ratio of 248%, and a 13% decline in total commercial real estate the past three years.
-
Loan and Deposit Growth
-
Loan growth of
$66.8 million , or 13% annualized, during the first quarter of 2024. -
Total deposits increased by
$85.8 million , or 12% annualized, during the first quarter of 2024. -
Noninterest-bearing deposits of
$969.0 million atMarch 31, 2024 , represent 34% of total deposits. - Uninsured deposits are approximately 28% of total deposit balances.
-
Loan growth of
-
Strong Capital and Liquidity-
Increased Tangible Book Value (non-GAAP) per share by 3% to
$21.61 per share during the quarter. - Strong regulatory Community Bank Leverage Ratio of 11.6% for our subsidiary bank.
- Tangible Common Equity Ratio (non-GAAP) of 9.0% on a consolidated basis and 10.6% for our subsidiary bank.
- Repurchased 178,937 shares of stock during the quarter.
-
Dividend declared of
$0.23 per share, payable onMay 13, 2024 . -
Overall primary and secondary liquidity sources of
$2.5 billion atMarch 31, 2024 .
-
Increased Tangible Book Value (non-GAAP) per share by 3% to
-
Completion of Balance Sheet Restructuring to Improve Future Earnings
-
Completed initial sale of
$196.7 million in investments in earlyJanuary 2024 .- Bonds sold had a weighted average yield of 2.61%.
- Proceeds from bond sale were used to pay down short-term borrowings.
-
Sold an additional
$53.9 million in bonds in lateMarch 2024 .- Bonds sold had a weighted average yield of 3.02%.
- Proceeds from bond sale will be used to fund anticipated loan growth.
-
Completed initial sale of
“Each fresh peak ascended teaches something.” – Sir
“Our first quarter results demonstrate our strength and commitment to banking fundamentals coupled with strategic repositioning, especially in this challenging rate environment that continues to affect the banking industry,” stated
Quarterly Changes (comparisons to the first quarter of 2023)
-
Net income for the first quarter of 2024 increased
$0.6 million , or 7%, to$9.3 million due primarily to an increase in net interest income of$0.6 million . Additionally, the favorable change in the credit loss expense on loans and improvements in noninterest income, was mostly offset by higher noninterest expenses. -
The
$0.6 million increase in net interest income for the quarter was driven by a 15 basis point increase in the net interest margin due to higher yields on investments and lower costs of borrowings, partially offset by higher deposit costs. -
Noninterest income for the first quarter of 2024 as compared to the same period in 2023 increased
$2.0 million or 31%. There was a favorable variance of$1.0 million in bank owned life insurance (BOLI), a gain on the sale/leaseback of two bank owned branch buildings for$3.8 million , increases in service charges and fees on deposit accounts for$0.3 million or 6%, offset by a loss on the sale of bonds from a balance sheet restructure for$3.0 million .
Linked Quarter Changes (comparisons to the three months ended
-
Net income increased by
$3.0 million , or 48%, driven mostly by a$3.4 million decline in the provision for credit losses. The higher provision for credit losses in the three months endedDecember 31, 2023 , was due to a$2.3 million charge-off related to commercial real estate. -
Net interest income increased by
$0.8 million , or 3%, during the quarter due mostly to higher yields on investments and lower costs of borrowing due to the strategic balance sheet restructuring, as well as growth in mortgage warehouse loan income. These favorable variances were partially offset by higher deposit costs. -
Other expenses were
$0.4 million higher in the quarter due mostly to higher deferred directors fee expense of$0.8 million (which was offset by higher BOLI income).
Balance Sheet Quarterly Changes (comparisons to
-
Total assets decreased
$176.7 million , or 5% to$3.6 billion , during the first three months of 2024, due mostly to a strategic sale of lower yielding investment securities, with funds received used to paydown higher cost borrowings. -
Gross loans increased
$66.8 million due to a$87.6 million increase in mortgage warehouse line utilization. -
Deposits increased by
$85.8 million , or 3%. The growth in deposits came from brokered deposits, as overall customer deposits decreased$50.9 million .
Other financial highlights are reflected in the following table.
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FINANCIAL HIGHLIGHTS |
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(Dollars in Thousands, Except Per Share Data, Unaudited) |
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As of or for the |
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three months ended |
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Net income |
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$ |
9,330 |
|
$ |
6,290 |
|
$ |
8,751 |
Diluted earnings per share |
|
$ |
0.64 |
|
$ |
0.43 |
|
$ |
0.58 |
Return on average assets |
|
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1.06% |
|
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0.67% |
|
|
0.97% |
Return on average equity |
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11.09% |
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8.03% |
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11.53% |
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Net interest margin (tax-equivalent) (1) |
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3.62% |
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3.31% |
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3.47% |
Yield on average loans |
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4.89% |
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4.78% |
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4.50% |
Yield on investments |
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5.59% |
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5.35% |
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4.73% |
Cost of average total deposits |
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1.38% |
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1.24% |
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0.83% |
Cost of funds |
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1.58% |
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1.73% |
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1.15% |
Efficiency ratio (tax-equivalent) (1) (2) |
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65.97% |
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67.10% |
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64.87% |
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Total assets |
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$ |
3,553,072 |
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$ |
3,729,799 |
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$ |
3,693,984 |
Loans net of deferred fees |
|
$ |
2,157,078 |
|
$ |
2,090,384 |
|
$ |
2,033,992 |
Noninterest demand deposits |
|
$ |
968,996 |
|
$ |
1,020,772 |
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$ |
1,041,748 |
Total deposits |
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$ |
2,847,004 |
|
$ |
2,761,223 |
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$ |
2,948,988 |
Noninterest-bearing deposits over total deposits |
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34.0% |
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37.0% |
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35.3% |
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Shareholders' equity / total assets |
|
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9.7% |
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9.1% |
|
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8.3% |
Tangible common equity ratio (2) |
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9.0% |
|
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8.4% |
|
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7.6% |
Book value per share |
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$ |
23.56 |
|
$ |
22.85 |
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$ |
20.40 |
Tangible book value per share (2) |
|
$ |
21.61 |
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$ |
20.91 |
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$ |
18.44 |
Community bank leverage ratio |
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11.6% |
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11.3% |
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10.7% |
Tangible common equity ratio (bank only) (2) |
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10.6% |
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10.3% |
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9.2% |
(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
For the first quarter of 2024 as compared to the same quarter in 2023, the
At
At
Interest expense was
Our net interest margin was 3.62% for the first quarter of 2024, as compared to 3.31% for the linked quarter and 3.47% for the quarter ending
Provision for Credit Losses
The Company recorded a provision for credit losses of
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
Noninterest income increased by
For the first quarter of 2024 compared to the same quarter in 2023, reasons for the increase were mostly the same although service charges and fees on deposit accounts increased by
Service charges and fees on customer deposit accounts declined by
Noninterest Expense
Total noninterest expense increased
Salaries and benefits were
Occupancy expense was up
Other noninterest expense increased
The Company's effective tax rate was 26.3% in the first quarter of 2024 relative to 23.8% in the fourth quarter of 2023 and 23.6% for the first quarter of 2023. The increase in the effective tax rate for the first quarter of 2024 over the linked quarter and as compared to the same period in 2023, is due to tax credits and tax-exempt income representing a smaller percentage of total taxable income.
Balance Sheet Summary
The
Gross loan balances increased
Over the past several years, the Company has strategically focused on reducing concentrations in commercial real estate, especially amongst areas management deemed to be higher risk, such as construction, office real estate, and hospitality. At
As indicated in the loan rollforward below, new credit extended for the first quarter of 2024 decreased
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LOAN ROLLFORWARD |
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(Dollars in Thousands, Unaudited) |
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For the three months ended: |
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Gross loans beginning balance |
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$ |
2,090,075 |
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$ |
2,100,810 |
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$ |
2,052,940 |
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New credit extended |
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34,966 |
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26,704 |
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52,609 |
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Changes in line of credit utilization |
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(24,928 |
) |
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4,377 |
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(25,790 |
) |
Change in mortgage warehouse |
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87,561 |
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8,415 |
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3,033 |
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Pay-downs, maturities, charge-offs and amortization |
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(30,810 |
) |
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(50,231 |
) |
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(48,824 |
) |
Gross loans ending balance |
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$ |
2,156,864 |
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$ |
2,090,075 |
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$ |
2,033,968 |
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Line utilization, unused commitments, excluding mortgage warehouse and overdraft lines, were
Deposit balances grew by
Overall uninsured deposits are estimated to be approximately
Long-term debt at
Customer repurchase agreements increased from
Other borrowings declined
The Company continues to have substantial liquidity. At
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Primary and secondary liquidity sources |
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Cash and cash equivalents |
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$ |
119,244 |
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$ |
78,602 |
Unpledged investment securities |
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555,766 |
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792,965 |
Excess pledged securities |
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316,889 |
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382,965 |
FHLB borrowing availability |
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676,829 |
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586,726 |
Unsecured lines of credit |
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504,785 |
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374,785 |
Funds available through fed discount window |
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376,216 |
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392,034 |
Totals |
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$ |
2,549,729 |
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$ |
2,608,077 |
Total capital of
Asset Quality
Total nonperforming assets, comprised of non-accrual loans and foreclosed assets, increased by
Overall delinquent loans increased from
The Company's allowance for credit losses on loans was
About
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, loan portfolio performance, 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, and other factors detailed in the Company's
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STATEMENT OF CONDITION |
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(Dollars in Thousands, Unaudited) |
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ASSETS |
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Cash and due from banks |
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$ |
119,244 |
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$ |
78,602 |
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$ |
88,542 |
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$ |
103,483 |
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$ |
83,506 |
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Investment securities |
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Available-for-sale, at fair value |
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741,789 |
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1,019,201 |
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1,010,377 |
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1,027,538 |
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1,040,920 |
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Held-to-maturity, at amortized cost, net of allowance for credit losses |
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316,406 |
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320,057 |
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323,544 |
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|
328,478 |
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|
332,728 |
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Real estate loans |
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Residential real estate |
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406,443 |
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412,063 |
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418,782 |
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426,608 |
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433,185 |
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Commercial real estate |
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1,327,482 |
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1,328,224 |
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1,334,663 |
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1,317,945 |
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1,318,627 |
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Other construction/land |
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6,115 |
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6,256 |
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7,320 |
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16,020 |
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15,653 |
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Farmland |
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66,133 |
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67,276 |
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|
90,993 |
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|
92,728 |
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|
92,906 |
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Total real estate loans |
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1,806,173 |
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1,813,819 |
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|
1,851,758 |
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1,853,301 |
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1,860,371 |
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Other commercial |
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|
143,448 |
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156,272 |
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137,407 |
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126,360 |
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|
101,118 |
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Mortgage warehouse lines |
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203,561 |
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116,000 |
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|
107,584 |
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110,617 |
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|
68,472 |
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Consumer loans |
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3,682 |
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3,984 |
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|
4,061 |
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|
4,113 |
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|
4,007 |
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Gross loans |
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|
2,156,864 |
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|
2,090,075 |
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|
2,100,810 |
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|
2,094,391 |
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|
2,033,968 |
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Deferred loan fees |
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|
214 |
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|
309 |
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|
163 |
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|
73 |
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|
24 |
|
Allowance for credit losses on loans |
|
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(23,140 |
) |
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(23,500 |
) |
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(23,060 |
) |
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(23,010 |
) |
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(23,090 |
) |
Net loans |
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2,133,938 |
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|
2,066,884 |
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|
2,077,913 |
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2,071,454 |
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2,010,902 |
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Bank premises and equipment |
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16,067 |
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16,907 |
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|
21,926 |
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|
22,072 |
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|
22,321 |
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Other assets |
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|
225,628 |
|
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|
228,148 |
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|
|
216,578 |
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|
209,436 |
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|
203,607 |
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Total assets |
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$ |
3,553,072 |
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|
$ |
3,729,799 |
|
|
$ |
3,738,880 |
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$ |
3,762,461 |
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$ |
3,693,984 |
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LIABILITIES AND CAPITAL |
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Noninterest demand deposits |
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$ |
968,996 |
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$ |
1,020,772 |
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$ |
1,059,878 |
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$ |
1,066,498 |
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$ |
1,041,748 |
|
Interest-bearing transaction accounts |
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|
532,791 |
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|
533,947 |
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|
561,257 |
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|
584,263 |
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|
637,549 |
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Savings deposits |
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|
378,057 |
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|
370,806 |
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|
400,940 |
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|
415,793 |
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|
441,758 |
|
Money market deposits |
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|
134,533 |
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|
145,591 |
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|
130,914 |
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|
124,834 |
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|
123,162 |
|
Customer time deposits |
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|
560,979 |
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|
555,107 |
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|
551,731 |
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|
552,371 |
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|
519,771 |
|
Wholesale brokered deposits |
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|
271,648 |
|
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|
135,000 |
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|
165,000 |
|
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|
175,000 |
|
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|
185,000 |
|
Total deposits |
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|
2,847,004 |
|
|
|
2,761,223 |
|
|
|
2,869,720 |
|
|
|
2,918,759 |
|
|
|
2,948,988 |
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Long-term debt |
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|
49,326 |
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|
49,304 |
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|
|
49,281 |
|
|
|
49,259 |
|
|
|
49,236 |
|
Subordinated debentures |
|
|
35,704 |
|
|
|
35,660 |
|
|
|
35,615 |
|
|
|
35,570 |
|
|
|
35,526 |
|
Other interest-bearing liabilities |
|
|
201,851 |
|
|
|
467,621 |
|
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|
411,865 |
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|
398,922 |
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|
310,861 |
|
Total deposits and interest-bearing liabilities |
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3,133,885 |
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|
|
3,313,808 |
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|
3,366,481 |
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|
3,402,510 |
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|
3,344,611 |
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Allowance for credit losses on unfunded loan commitments |
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|
540 |
|
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|
510 |
|
|
|
600 |
|
|
|
750 |
|
|
|
850 |
|
Other liabilities |
|
|
73,553 |
|
|
|
77,384 |
|
|
|
62,940 |
|
|
|
49,609 |
|
|
|
41,513 |
|
Total capital |
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|
345,094 |
|
|
|
338,097 |
|
|
|
308,859 |
|
|
|
309,592 |
|
|
|
307,010 |
|
Total liabilities and capital |
|
$ |
3,553,072 |
|
|
$ |
3,729,799 |
|
|
$ |
3,738,880 |
|
|
$ |
3,762,461 |
|
|
$ |
3,693,984 |
|
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GOODWILL AND INTANGIBLE ASSETS |
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(Dollars in Thousands, Unaudited) |
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|||||
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|||||
|
|
$ |
27,357 |
|
$ |
27,357 |
|
$ |
27,357 |
|
$ |
27,357 |
|
$ |
27,357 |
|||||
Core deposit intangible |
|
|
1,180 |
|
|
1,399 |
|
|
1,618 |
|
|
1,837 |
|
|
2,056 |
|||||
Total intangible assets |
|
$ |
28,537 |
|
$ |
28,756 |
|
$ |
28,975 |
|
$ |
29,194 |
|
$ |
29,413 |
|||||
|
|
|
|
|
|
|
||||||||||||||
CREDIT QUALITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
(Dollars in Thousands, Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Non-accruing loans |
|
$ |
14,188 |
|
$ |
7,985 |
|
$ |
781 |
|
$ |
1,141 |
|
$ |
938 |
|||||
Foreclosed assets |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|||||
Total nonperforming assets |
|
$ |
14,188 |
|
$ |
7,985 |
|
$ |
781 |
|
$ |
1,141 |
|
$ |
938 |
|||||
|
|
|
|
|
|
|
||||||||||||||
Quarterly net charge offs |
|
$ |
457 |
|
$ |
3,618 |
|
$ |
67 |
|
$ |
157 |
|
$ |
220 |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Past due and still accruing (30-89) |
|
$ |
1,563 |
|
$ |
255 |
|
$ |
806 |
|
$ |
1,873 |
|
$ |
1,241 |
|||||
Classified loans |
|
$ |
34,100 |
|
$ |
35,577 |
|
$ |
39,958 |
|
$ |
37,298 |
|
$ |
35,739 |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Non-performing loans to gross loans |
|
|
0.66% |
|
|
0.38% |
|
|
0.04% |
|
|
0.05% |
|
|
0.05% |
|||||
NPA's to loans plus foreclosed assets |
|
|
0.66% |
|
|
0.38% |
|
|
0.04% |
|
|
0.05% |
|
|
0.05% |
|||||
Allowance for credit losses on loans |
|
|
1.07% |
|
|
1.12% |
|
|
1.10% |
|
|
1.10% |
|
|
1.14% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
SELECT PERIOD-END STATISTICS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Shareholders' equity / total assets |
|
|
9.7% |
|
|
9.1% |
|
|
8.3% |
|
|
8.2% |
|
|
8.3% |
|||||
Gross loans / deposits |
|
|
75.8% |
|
|
75.7% |
|
|
73.2% |
|
|
71.8% |
|
|
69.0% |
|||||
Noninterest-bearing deposits / total deposits |
|
|
34.0% |
|
|
37.0% |
|
|
36.9% |
|
|
36.5% |
|
|
35.3% |
|
|
|
|
|
|
|
|
|
|
||
CONSOLIDATED INCOME STATEMENT |
|
|
|
|
|
|
|
|
|
||
(Dollars in Thousands, Unaudited) |
|
|
For the three months ended: |
||||||||
|
|
|
|
|
|
|
|
|
|
||
Interest income |
|
$ |
40,961 |
|
|
$ |
42,443 |
|
|
$ |
37,419 |
Interest expense |
|
|
12,244 |
|
|
|
14,573 |
|
|
|
9,287 |
Net interest income |
|
|
28,717 |
|
|
|
27,870 |
|
|
|
28,132 |
|
|
|
|
|
|
|
|
|
|
||
Credit loss expense - loans |
|
|
97 |
|
|
|
3,615 |
|
|
|
250 |
Credit loss expense (benefit) - unfunded commitments |
|
|
30 |
|
|
|
(90 |
) |
|
|
10 |
Net interest income after provision |
|
|
28,590 |
|
|
|
24,345 |
|
|
|
27,872 |
|
|
|
|
|
|
|
|
|
|
||
Service charges and fees on deposit accounts |
|
|
5,726 |
|
|
|
5,977 |
|
|
|
5,380 |
(Loss) gain on sale of investments |
|
|
(2,883 |
) |
|
|
- |
|
|
|
45 |
Gain on sale of fixed assets |
|
|
3,799 |
|
|
|
15,255 |
|
|
|
14 |
BOLI income |
|
|
1,215 |
|
|
|
379 |
|
|
|
172 |
Realized gain (loss) on available for sale securities |
|
|
66 |
|
|
|
(14,500 |
) |
|
|
- |
Other noninterest income |
|
|
666 |
|
|
|
934 |
|
|
|
968 |
Total noninterest income |
|
|
8,589 |
|
|
|
8,045 |
|
|
|
6,579 |
|
|
|
|
|
|
||||||
Salaries and benefits |
|
|
13,197 |
|
|
|
13,410 |
|
|
|
12,816 |
Occupancy expense |
|
|
3,025 |
|
|
|
2,909 |
|
|
|
2,330 |
Other noninterest expenses |
|
|
8,304 |
|
|
|
7,817 |
|
|
|
7,846 |
Total noninterest expense |
|
|
24,526 |
|
|
|
24,136 |
|
|
|
22,992 |
|
|
|
|
|
|
||||||
Income before taxes |
|
|
12,653 |
|
|
|
8,254 |
|
|
|
11,459 |
Provision for income taxes |
|
|
3,323 |
|
|
|
1,964 |
|
|
|
2,708 |
Net income |
|
$ |
9,330 |
|
|
$ |
6,290 |
|
|
$ |
8,751 |
|
|
|
|
|
|
|
|
|
|
||
TAX DATA |
|
|
|
|
|
|
|
|
|
||
Tax-exempt muni income |
|
$ |
1,989 |
|
|
$ |
2,675 |
|
|
$ |
2,813 |
Interest income - fully tax equivalent |
|
$ |
41,490 |
|
|
$ |
43,154 |
|
|
$ |
38,167 |
|
|
|
|
|
|
|
|
|
|
||
PER SHARE DATA |
|
|
|
|
|
|
|
|
|
||
(Unaudited) |
|
|
For the three months ended: |
||||||||
|
|
|
|
|
|
|
|
|
|
||
Basic earnings per share |
|
$ |
0.64 |
|
$ |
0.43 |
|
$ |
0.58 |
||
Diluted earnings per share |
|
$ |
0.64 |
|
$ |
0.43 |
|
$ |
0.58 |
||
Common dividends |
|
$ |
0.23 |
|
$ |
0.23 |
|
$ |
0.23 |
||
|
|
|
|
|
|
|
|
|
|
||
Weighted average shares outstanding |
|
|
14,508,468 |
|
|
14,539,701 |
|
|
14,971,842 |
||
Weighted average diluted shares |
|
|
14,553,627 |
|
|
14,588,027 |
|
|
15,002,366 |
||
|
|
|
|
|
|
|
|
|
|
||
Book value per basic share (EOP) |
|
$ |
23.56 |
|
$ |
22.85 |
|
$ |
20.40 |
||
Tangible book value per share (EOP) (2) |
|
$ |
21.61 |
|
$ |
20.91 |
|
$ |
18.44 |
||
|
|
|
|
|
|
|
|
|
|
||
Common shares outstanding (EOP) |
|
|
14,647,872 |
|
|
14,793,832 |
|
|
15,050,740 |
||
|
|
|
|
|
|
|
|
|
|
||
KEY FINANCIAL RATIOS |
|
|
|
|
|
|
|
|
|
||
(Unaudited) |
|
|
For the three months ended: |
||||||||
|
|
|
|
|
|
|
|
|
|
||
Return on average equity |
|
|
11.09% |
|
|
8.03% |
|
|
11.53% |
||
Return on average assets |
|
|
1.06% |
|
|
0.67% |
|
|
0.97% |
||
Net interest margin (tax-equivalent) (1) |
|
|
3.62% |
|
|
3.31% |
|
|
3.47% |
||
Efficiency ratio (tax-equivalent) (1)(2) |
|
|
65.97% |
|
|
67.10% |
|
|
64.87% |
||
Net charge offs to average loans (not annualized) |
|
|
0.02% |
|
|
0.15% |
|
|
0.01% |
(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) |
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
||
Total stockholders' equity |
|
$ |
345,094 |
|
|
$ |
338,097 |
|
|
$ |
307,010 |
Less: goodwill and other intangible assets |
|
|
28,537 |
|
|
|
28,756 |
|
|
|
29,413 |
Tangible common equity |
|
$ |
316,557 |
|
|
$ |
309,341 |
|
|
$ |
277,597 |
|
|
|
|
|
|
|
|
|
|
||
Total assets |
|
$ |
3,553,072 |
|
|
$ |
3,729,799 |
|
|
$ |
3,693,984 |
Less: goodwill and other intangible assets |
|
|
28,537 |
|
|
|
28,756 |
|
|
|
29,413 |
Tangible assets |
|
$ |
3,524,535 |
|
|
$ |
3,701,043 |
|
|
$ |
3,664,571 |
|
|
|
|
|
|
|
|
|
|
||
Total stockholders' equity (bank only) |
|
$ |
401,742 |
|
|
$ |
409,862 |
|
|
$ |
364,870 |
Less: goodwill and other intangible assets (bank only) |
|
|
28,537 |
|
|
|
28,756 |
|
|
|
29,413 |
Tangible common equity (bank only) |
|
$ |
373,205 |
|
|
$ |
381,106 |
|
|
$ |
335,457 |
|
|
|
|
|
|
|
|
|
|
||
Total assets (bank only) |
|
$ |
3,550,459 |
|
|
$ |
3,724,733 |
|
|
$ |
3,694,796 |
Less: goodwill and other intangible assets (bank only) |
|
|
28,537 |
|
|
|
28,756 |
|
|
|
29,413 |
Tangible assets (bank only) |
|
$ |
3,521,922 |
|
|
$ |
3,695,977 |
|
|
$ |
3,665,383 |
|
|
|
|
|
|
|
|
|
|
||
Common shares outstanding |
|
|
14,647,872 |
|
|
|
14,793,832 |
|
|
|
15,050,740 |
|
|
|
|
|
|
|
|
|
|
||
Book value per common share (total stockholders' equity / shares outstanding) |
|
$ |
23.56 |
|
|
$ |
22.85 |
|
|
$ |
20.40 |
Tangible book value per common share (tangible common equity / shares outstanding) |
|
$ |
21.61 |
|
|
$ |
20.91 |
|
|
$ |
18.44 |
Equity ratio - GAAP (total stockholders' equity / total assets |
|
|
9.71 |
% |
|
|
9.06 |
% |
|
|
8.31% |
Tangible common equity ratio (tangible common equity / tangible assets) |
|
|
8.98 |
% |
|
|
8.36 |
% |
|
|
7.58% |
Tangible common equity ratio (bank only) (tangible common equity / tangible assets) |
|
|
10.60 |
% |
|
|
10.31 |
% |
|
|
9.15% |
|
|
|
|
|
|
|
|
|
|
||
|
|
For the three months ended: |
|||||||||
Efficiency Ratio: |
|
|
|
|
|
|
|
|
|
||
Noninterest expense |
|
$ |
24,526 |
|
|
$ |
24,136 |
|
|
$ |
22,992 |
Divided by: |
|
|
|
|
|
|
|
|
|
||
Net interest income |
|
|
28,717 |
|
|
|
27,870 |
|
|
|
28,132 |
Tax-equivalent interest income adjustments |
|
|
529 |
|
|
|
711 |
|
|
|
748 |
Net interest income, adjusted |
|
|
29,246 |
|
|
|
28,581 |
|
|
|
28,880 |
Noninterest income |
|
|
8,589 |
|
|
|
8,045 |
|
|
|
6,579 |
Less (loss) gain on sale of securities |
|
|
(2,883 |
) |
|
|
- |
|
|
|
45 |
Less gain on sale of fixed assets |
|
|
3,799 |
|
|
|
15,255 |
|
|
|
14 |
Less realized gain (loss) on available-for-sale securities |
|
|
66 |
|
|
|
(14,500 |
) |
|
|
- |
Tax-equivalent noninterest income adjustments |
|
|
323 |
|
|
|
101 |
|
|
|
46 |
Noninterest income, adjusted |
|
|
7,930 |
|
|
|
7,391 |
|
|
|
6,566 |
Net interest income plus noninterest income, adjusted |
|
$ |
37,176 |
|
|
$ |
35,972 |
|
|
$ |
35,445 |
Efficiency Ratio (tax-equivalent) |
|
|
65.97% |
|
|
67.10% |
|
|
64.87% |
|
|
|
|
|
|
|
|
|
|
||
NONINTEREST INCOME/EXPENSE |
|
|
|
|
|
||||||
(Dollars in Thousands, Unaudited) |
|
|
|||||||||
|
|
For the three months ended: |
|||||||||
Noninterest income: |
|
|
|
|
|
|
|||||
Service charges and fees on deposit accounts |
|
$ |
5,726 |
|
|
$ |
5,977 |
|
|
$ |
5,380 |
Net (loss) gain on sale of securities available-for-sale |
|
|
(2,883 |
) |
|
|
— |
|
|
|
45 |
Gain on sale of fixed assets |
|
|
3,799 |
|
|
|
15,255 |
|
|
|
14 |
Bank-owned life insurance |
|
|
1,215 |
|
|
|
379 |
|
|
|
172 |
Realized loss on available for sale securities |
|
|
66 |
|
|
|
(14,500 |
) |
|
|
— |
Other |
|
|
666 |
|
|
|
934 |
|
|
|
968 |
Total noninterest income |
|
$ |
8,589 |
|
|
$ |
8,045 |
|
|
$ |
6,579 |
As a % of average interest-earning assets (1) |
|
|
1.06% |
|
|
0.93% |
|
|
0.79% |
||
|
|
|
|
|
|
|
|
|
|
||
Noninterest expense: |
|
|
|
|
|
|
|
|
|
||
Salaries and employee benefits |
|
$ |
13,197 |
|
|
$ |
13,410 |
|
|
$ |
12,816 |
Occupancy and equipment costs |
|
|
3,025 |
|
|
|
2,909 |
|
|
|
2,330 |
Advertising and marketing costs |
|
|
343 |
|
|
|
569 |
|
|
|
513 |
Data processing costs |
|
|
1,509 |
|
|
|
1,397 |
|
|
|
1,528 |
Deposit services costs |
|
|
2,133 |
|
|
|
2,207 |
|
|
|
2,023 |
Loan services costs |
|
|
|
|
|
|
|
|
|
||
Loan processing |
|
|
151 |
|
|
|
144 |
|
|
|
127 |
Foreclosed assets |
|
|
— |
|
|
|
— |
|
|
|
758 |
Other operating costs |
|
|
926 |
|
|
|
1,118 |
|
|
|
989 |
Professional services costs |
|
|
|
|
|
|
|
|
|
||
Legal & accounting services |
|
|
715 |
|
|
|
615 |
|
|
|
646 |
Director's costs |
|
|
1,254 |
|
|
|
504 |
|
|
|
275 |
Other professional service |
|
|
809 |
|
|
|
708 |
|
|
|
515 |
Stationery & supply costs |
|
|
148 |
|
|
|
117 |
|
|
|
141 |
Sundry & tellers |
|
|
316 |
|
|
|
438 |
|
|
|
331 |
Total noninterest expense |
|
$ |
24,526 |
|
|
$ |
24,136 |
|
|
$ |
22,992 |
As a % of average interest-earning assets (1) |
|
|
3.04% |
|
|
2.80% |
|
|
2.76% |
||
Efficiency ratio (tax-equivalent) (2)(3) |
|
|
65.97% |
|
|
67.10% |
|
|
64.87% |
(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 |
||||||
|
|
|
|
|
|
|
||||||
|
|
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 |
|
|
|
5.75% |
|
|
|
5.61% |
|
|
|
5.34% |
Taxable |
|
893,171 |
13,303 |
5.99% |
|
994,814 |
14,520 |
5.79% |
|
972,051 |
11,986 |
5.00% |
Non-taxable |
|
244,997 |
1,989 |
4.13% |
|
334,836 |
2,675 |
4.01% |
|
361,328 |
2,813 |
4.00% |
Total investments |
|
1,155,164 |
15,535 |
5.59% |
|
1,343,311 |
17,388 |
5.35% |
|
1,338,691 |
14,869 |
4.73% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans: (3) |
|
|
|
|
|
|
|
|
|
|
|
|
Real estate |
|
1,806,185 |
20,190 |
4.50% |
|
1,835,890 |
20,684 |
4.47% |
|
1,869,112 |
19,899 |
4.32% |
Agricultural production |
|
61,419 |
1,138 |
7.45% |
|
49,052 |
859 |
6.95% |
|
28,028 |
433 |
6.27% |
Commercial |
|
79,208 |
1,183 |
6.01% |
|
97,962 |
1,533 |
6.21% |
|
70,887 |
993 |
5.68% |
Consumer |
|
3,962 |
80 |
8.12% |
|
4,218 |
85 |
7.99% |
|
4,137 |
87 |
8.53% |
Mortgage warehouse lines |
|
137,421 |
2,821 |
8.26% |
|
88,316 |
1,878 |
8.44% |
|
59,122 |
1,118 |
7.67% |
Other |
|
2,333 |
14 |
2.41% |
|
2,331 |
17 |
2.89% |
|
2,464 |
20 |
3.29% |
Total loans |
|
2,090,528 |
25,426 |
4.89% |
|
2,077,769 |
25,056 |
4.78% |
|
2,033,750 |
22,550 |
4.50% |
Total interest-earning assets (4) |
|
3,245,692 |
40,961 |
5.14% |
|
3,421,080 |
42,444 |
5.00% |
|
3,372,441 |
37,419 |
4.59% |
Other earning assets |
|
17,345 |
|
|
|
25,738 |
|
|
|
15,714 |
|
|
Non-earning assets |
|
270,786 |
|
|
|
267,451 |
|
|
|
272,496 |
|
|
Total assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and shareholders' equity |
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits |
|
|
|
2.04% |
|
|
|
2.01% |
|
|
|
0.35% |
NOW |
|
398,639 |
84 |
0.08% |
|
406,970 |
74 |
0.07% |
|
483,645 |
71 |
0.06% |
Savings accounts |
|
376,335 |
73 |
0.08% |
|
386,275 |
73 |
0.07% |
|
457,593 |
65 |
0.06% |
Money market |
|
137,687 |
410 |
1.20% |
|
144,296 |
419 |
1.15% |
|
135,434 |
25 |
0.07% |
Time deposits |
|
561,941 |
6,190 |
4.43% |
|
551,287 |
6,173 |
4.44% |
|
461,214 |
4,505 |
3.96% |
Wholesale brokered deposits |
|
205,092 |
2,189 |
4.29% |
|
150,326 |
1,407 |
3.71% |
|
162,560 |
1,204 |
3.00% |
Total interest-bearing deposits |
|
1,817,655 |
9,645 |
2.13% |
|
1,776,981 |
8,844 |
1.97% |
|
1,850,585 |
5,999 |
1.31% |
Borrowed funds: |
|
|
|
|
|
|
|
|
|
|
|
|
Repurchase agreements |
|
112,385 |
41 |
0.15% |
|
95,005 |
46 |
0.19% |
|
103,426 |
81 |
0.32% |
Other borrowings |
|
119,475 |
1,372 |
4.62% |
|
346,437 |
4,489 |
5.14% |
|
176,725 |
2,111 |
4.84% |
Long-term debt |
|
49,312 |
431 |
3.52% |
|
49,290 |
429 |
3.45% |
|
49,222 |
429 |
3.53% |
Subordinated debentures |
|
35,677 |
755 |
8.51% |
|
35,632 |
766 |
8.53% |
|
35,499 |
667 |
7.62% |
Total borrowed funds |
|
316,849 |
2,599 |
3.30% |
|
526,364 |
5,730 |
4.32% |
|
364,872 |
3,288 |
3.65% |
Total interest-bearing liabilities |
|
2,134,504 |
12,244 |
2.31% |
|
2,303,345 |
14,574 |
2.51% |
|
2,215,457 |
9,287 |
1.70% |
Demand deposits - noninterest-bearing |
|
990,377 |
|
|
|
1,041,989 |
|
|
|
1,070,775 |
|
|
Other liabilities |
|
70,534 |
|
|
|
58,255 |
|
|
|
66,632 |
|
|
Shareholders' equity |
|
338,408 |
|
|
|
310,680 |
|
|
|
307,787 |
|
|
Total liabilities and shareholders' equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income/interest-earning assets |
|
|
|
5.14% |
|
|
|
5.00% |
|
|
|
4.59% |
Interest expense/interest-earning assets |
|
|
|
1.52% |
|
|
|
1.69% |
|
|
|
1.12% |
Net interest income and margin (5) |
|
|
|
3.62% |
|
|
|
3.31% |
|
|
|
3.47% |
|
(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 expected credit losses. Loan fees have been included in the calculation of interest income. Net loan (costs) fees and loan acquisition FMV amortization were |
(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:
View source version on businesswire.com: https://www.businesswire.com/news/home/20240422362794/en/
(559) 782‑4900 or (888) 454‑BANK
www.sierrabancorp.com
Source: