Sierra Bancorp (Nasdaq: BSRR), parent of Bank of the Sierra,
today announced its unaudited financial results for the quarter
ended March 31, 2020. Sierra Bancorp reported consolidated net
income of $7.8 million, or $0.51 per diluted share, for the first
quarter of 2020 compared to $8.9 million, or $0.58 per diluted
share, in the first quarter of 2019. The unfavorable variance in
net income came largely from a $1.5 million increase in the
provision for loan and lease losses in the first quarter of 2020 as
compared to the first quarter of 2019. The Company’s return on
average assets and return on average equity were 1.23% and 9.97%,
respectively, in the first quarter of 2020 as compared to 1.44% and
12.99%, respectively, in the first quarter of 2019.
Assets totaled $2.7 billion at March 31, 2020, representing an
increase of $131 million, or 5%, compared to March 31, 2019, and an
increase of $77 million, or 3%, compared to December 31, 2019. The
increase in assets compared to both March 31, 2019, and December
31, 2019, resulted primarily from a higher level of outstanding
balances on mortgage warehouse lines and growth in investment
securities. Total deposits at March 31, 2020, totaled $2.2 billion,
representing an increase of $19 million, or 1%, compared to March
31, 2019, and an increase of $11 million, or 1%, compared to
December 31, 2019. The growth in deposits came primarily from core
noninterest-bearing demand and interest-bearing transaction
deposits, as higher cost total time deposits declined from both
December 31, 2019, and March 31, 2019.
“The difference between a successful person and
others is not a lack of strength, not a lack of knowledge, but
rather a lack of will.”
– Vince Lombardi
“We are proud of our first quarter results, especially given the
challenges created by the worldwide coronavirus pandemic,” stated
Kevin McPhaill, President and CEO. “Our team is focused and working
diligently through these difficult circumstances, which is apparent
through an improved efficiency ratio and solid earnings,” he noted
further. “We remain optimistic and committed to providing excellent
service to our banking customers throughout the year and beyond!”
McPhaill concluded.
Financial Highlights
As noted above, the decline in net income in the first quarter
of 2020 as compared to the first quarter of 2019 was primarily due
to a $1.5 million increase in the provision for loan and lease
losses. Overall net interest income for the first quarter of 2020
was $23.8 million, as compared to $24.0 million in the first
quarter of 2019, a decrease of 1%, due mostly to lower rates on
earning assets. Noninterest income in the first quarter of 2020 was
$6.1 million as compared to $5.9 million in the same quarter in
2019, an increase of 3% as further detailed below. Noninterest
expense remained relatively unchanged at $17.8 million in the first
quarter of 2020 as compared to $17.9 million in the same quarter of
2019.
Other financial highlights are reflected in the following
table.
FINANCIAL HIGHLIGHTS
(Unaudited)
(Dollars in thousands, except per share
data)
At or For the
At or For the
Three Months
Three Months Ended
Increase
Ended
Increase
3/31/2020
12/31/2019
(Decrease)
3/31/2019
(Decrease)
Net Income
$
7,807
$
9,285
-16%
$
8,895
-12%
Diluted Earnings per share
$
0.51
$
0.60
-15%
$
0.58
-12%
Return on Average Assets
1.23%
1.41%
-13%
1.44%
-15%
Return on Average Equity
9.97%
11.97%
-17%
12.99%
-23%
Net Interest Margin (Tax-Equiv.)
4.13%
4.15%
0%
4.30%
-4%
Yield on Average Loans and Leases
5.21%
5.33%
-2%
5.62%
-7%
Cost of Average Total Deposits
0.34%
0.43%
-21%
0.56%
-39%
Efficiency Ratio (Tax-Equiv.)
58.88%
57.30%
+3%
58.74%
0%
Total Assets
$
2,670,469
$
2,593,819
+3%
$
2,539,087
+5%
Loans & Leases Net of Deferred
Fees
$
1,800,766
$
1,765,461
+2%
$
1,753,776
+3%
Noninterest Demand Deposits
$
704,700
$
690,950
+2%
$
658,524
+7%
Total Deposits
$
2,179,391
$
2,168,374
+1%
$
2,160,748
+1%
Noninterest-bearing Deposits over Total
Deposits
32.3%
31.9%
+1%
30.5%
+6%
Shareholders Equity / Total Assets
12.0%
11.9%
+1%
11.2%
+7%
Tangible Common Equity Ratio
10.9%
10.8%
+1%
10.0%
+1%
Book Value per Share
$
21.03
$
20.24
+4%
$
18.53
+13%
Tangible Book Value per Share
$
18.89
$
18.09
+4%
$
16.34
+16%
INCOME STATEMENT HIGHLIGHTS
Net Interest Income
Net interest income was $23.8 million for the first quarter of
2020, a decrease of $1.0 million, or 4%, as compared to the fourth
quarter of 2019 and a decrease of $0.2 million, or 1%, as compared
to the first quarter of 2019. As compared to the fourth quarter of
2019, overall loan interest income declined by $1.9 million, or 8%,
due primarily to a $77.8 million decline in average loan balances
and a 12 basis point decrease in loan yield. Although total
mortgage warehouse lines increased during the quarter, the average
balance of such loans declined by $59.0 million during the quarter
due to lower demand in January and February. The mortgage warehouse
line balances rebounded in March 2020. In addition, overall cash
and due from bank balances increased by $26.9 million, or 34%, at
March 31, 2020, as compared to December 31, 2019. The average
balance of interest earning due from bank balances increased by
$25.5 million, or 220%, during the first quarter of 2020 to
temporarily offset lower mortgage warehouse balances in the early
part of the quarter.
At March 31, 2020, our outstanding fixed rate loans represented
30% of our loan portfolio. However, 36% of our total portfolio
consists of adjustable rate loans that will not adjust for at least
another 3 years. Approximately 19% of our total portfolio, or $337
million, consists of variable rate loans. Of these variable rate
loans, approximately $118 million have floors that limited the
overall reduction in rates. As mentioned above, we have a
significant portion of our portfolio in adjustable rate loans with
adjustment periods ranging from 30 days to 10 years. Adjustable
rate loans comprise 51% of our portfolio at March 31, 2020.
Approximately $53 million of these adjustable rate loans are
scheduled to adjust in April 2020 and $46 million will reprice in
smaller amounts monthly over the remainder of 2020. Another $18
million of these adjustable rate loans will reprice in the first
quarter of 2021. The remaining $804 million of adjustable rate
loans will not reprice for at least another year with the vast
majority of approximately $650 million not repricing for at least
another 3 years.
In the later part of the quarter, overall cash balances were
increased as a precaution to reduce uncertainty of our cash
delivery providers being able to serve us during the stay-at-home
order. It is expected that these balances will return to more
normalized levels later in 2020. Overall investment securities
increased by $19.4 million during the first quarter of 2020, while
the tax-equivalent yield on investments increased by 16 basis
points to 2.77% during the first quarter of 2020. The overall
investment portfolio had a tax-equivalent yield of 2.81% at March
31, 2020, with an average life of 4.3 years.
Interest expense was $2.3 million in the first quarter of 2020,
a decline of $0.7 million, or 23%, compared to the fourth quarter
of 2019 and a decline of $1.2 million, or 35%, compared to the
first quarter of 2019. The significant decline in interest expense
is attributable to a favorable shift in deposit mix as total time
deposits declined by $34.3 million in the first quarter of 2020 and
the average cost of deposits declined by 9 basis points, or 21%, to
34 basis points.
Provision for Loan and Lease Losses
The Company recorded a loan and lease loss provision of $1.8
million in the first quarter of 2020, as compared to $0.5 million
in the fourth quarter of 2019, and $0.3 million in the first
quarter of 2019. The Company was subject to the adoption of the
Current Expected Credit Loss (“CECL”) accounting method under
Financial Accounting Standards Board (FASB) Accounting Standards
Update 2016-03 and related amendments, Financial Instruments –
Credit Losses (Topic 326). However, the Company elected under
Section 4014 of the Coronavirus Aid, Relief, and Economic Security
(CARES) Act to defer the implementation of CECL until the earlier
of when the national emergency related to the outbreak of COVID-19
ends or December 31, 2020. Although this deferral will still
require CECL to be implemented as of January 1, 2020, the Company
believes that the deferral will provide time to better assess the
impact of the COVID-19 pandemic on the expected lifetime credit
losses. There is increased uncertainty on the local, regional, and
national economy as a result of local and state stay-at-home
orders, as well as relief measures provided at a national, state,
and local level. Further, the Company has taken actions to mitigate
the impact on credit losses including permitting short-term payment
deferrals to current customers, as well as providing bridge loans
and SBA Paycheck Protection Program loans. More time is needed to
assess the impact of this uncertainty and related actions on the
Company’s allowance for loan and lease losses under the CECL
methodology.
The Company’s $1.3 million, or 260%, increase in provision for
loan and lease losses in the first quarter of 2020 as compared to
the fourth quarter of 2019 is due mostly to the estimated impact
that COVID-19 will have on the economy and our loan customers.
Management adjusted its qualitative risk factors under our incurred
loss model for economic conditions, changes in payment deferral
procedures, expected changes in collateral values due to reduced
cash flows, and external factors such as government actions. In
particular, the uncertainty regarding our customers’ ability to
repay loans could be adversely impacted by COVID-19 given higher
unemployment rates, requests for payment deferrals, temporary
business shut-downs, and reduced consumer and business
spending.
Noninterest Income
Noninterest income increased by $0.3 million, or 4%, to $6.1
million in the first quarter of 2020 as compared to $5.8 million in
the fourth quarter of 2019. Noninterest income increased by $0.2
million, or 3%, in the first quarter of 2020 as compared to the
same quarter in 2019. While the overall increase in noninterest
income was $0.3 million, there were some individually significant
offsetting variances in the first quarter of 2020 primarily related
to bank-owned life insurance income (BOLI) and valuation increases
under FASB ASU 2016-01. BOLI income decreased by $0.5 million
during the first quarter of 2020 as compared to the fourth quarter
of 2019 and by $0.9 million as compared to the first quarter of
2019. This decrease is due to unfavorable fluctuations in
underlying values of assets in the specific account BOLI policies
that are designed to have similar assets to those in the deferred
compensation plans. Thus, these lower values in BOLI policies are
offset by lower deferred compensation expense reflected primarily
in director fees expense. At March 31, 2020, there was $42.8
million in BOLI policies associated with the deferred compensation
plans and $8.0 million in separate account BOLI policies.
Offsetting this unfavorable change in BOLI income was a $0.5
million increase in the first quarter of 2020 as compared to the
fourth quarter of 2019 and first quarter of 2019 income associated
with valuations of restricted stock held by the Company. This stock
is related to an equity investment in Pacific Coast Bankers’ Bank
and is adjusted when financial information becomes available,
generally in the late first quarter of each year. In addition,
noninterest income includes a valuation adjustment related to
investments in low-income housing credit investments. This
valuation adjustment was a reduction of income of $0.2 million in
the first quarter of 2020, $0.5 million in the fourth quarter of
2019 and $0.5 million in the first quarter of 2019.
Service charges on customer deposit account income declined by
$0.2 million, or 5%, to $3.2 million in the first quarter of 2020
as compared to the fourth quarter of 2019. This same income was
$0.2 million higher in the first quarter of 2020 as compared to the
first quarter of 2019. These changes are primarily a result of
changes in overdraft income. Overdraft income is typically down in
the first quarter of each year. Waived overdraft fees were similar
to prior quarters.
Noninterest Expense
Noninterest expense was down by $0.2 million, or 1%, in the
first quarter of 2020 as compared to the fourth quarter of 2019 and
was relatively flat compared to the first quarter of 2019. Although
relatively unchanged in the first quarter of 2020, this was due to
offsetting differences. Salaries and benefits were $1.2 million
higher in the first quarter of 2020 as compared to the fourth
quarter of 2019 and $1.0 million higher than the first quarter of
2019. The reason for this increase is due to several factors
including merit increases for employees due to annual performance
evaluations during the first quarter of 2020. In addition, payroll
taxes were $0.3 million higher in the first quarter of 2020 as
compared to the prior linked quarter, and the impact of salaries
deferred as a loan cost was $0.3 million unfavorable in the first
quarter of 2020 as compared to the prior linked quarter. There have
not been any permanent or temporary reductions in employees as a
result of COVID-19. The $1.2 million decrease in Other Noninterest
Expense in the first quarter of 2020 as compared to the fourth
quarter of 2019 is primarily due to a $0.6 million decrease in
professional and other services due to lower loan review costs,
lower internal audit costs, and lower deferred compensation costs
associated for directors; a $0.2 million reduction in costs
associated with deposit services; and $0.1 million declines in each
of the following: marketing, telecommunications, and recruiting
costs.
Balance Sheet Summary
The $77 million, or 3%, increase in total assets during the
first quarter of 2020 is primarily a result of a $34 million
increase in net loans, a $20 million increase in investments, and a
$27 million increase in cash balances.
The increase in loan balances was primarily a result of a $40
million increase in mortgage warehouse lines with other loan
balances remaining relatively unchanged at March 31, 2020, as
compared to December 31, 2019. However, during the quarter, average
balances decreased for most loan categories with an increase late
in the quarter due to concentrated efforts to increase loan
balances in our Northern and Southern markets with new lending
teams. These lending teams started in early February 2020 and have
already had early success with booking new loans. Each team has a
strong pipeline of loans at March 31, 2020. Although banking is an
essential service under state and local safer-at-home orders, the
lending teams and the vast majority of both corporate and
back-office employees continue to work remotely. With respect to
mortgage warehouse lending, these balances also increased during
the quarter with most of the increase occurring in the last three
weeks of the quarter.
With regards to line utilization, unused commitments, excluding
mortgage warehouse and consumer overdraft lines were $283.9 million
at March 31, 2020 as compared to $303.4 million at December 31,
2019. Total utilization excluding mortgage warehouse and consumer
overdraft lines, was 60.0% at March 31, 2020, as compared to 59.1%
at December 31, 2019. Commercial line utilization was 62.0% at
March 31, 2020, as compared to 60.8% at December 31, 2019. Mortgage
warehouse utilization was 58.7% at December 31, 2019, as compared
to 66.6% at March 31, 2020.
The Company has elected to participate in the Small Business
Administration’s Paycheck Protection Program (PPP) as authorized by
the CARES Act and began accepting and funding loans under this
program in April 2020.
Deposit balances grew by $11 million, or 1%, during the first
quarter of 2020 to $2.2 billion at March 31, 2020. Total time
deposits declined by $34 million, including a $20 million decline
in brokered deposits during the quarter. The $30 million in
brokered deposits at March 31, 2020, are very short in duration
with an average life of less than 2 months. Overall
noninterest-bearing deposits as a percent of total deposits
increased to 32.3% at March 31, 2020, as compared to 31.9% at
December 31, 2019, and 30.5% at March 31, 2019. Other
interest-bearing liabilities of $103.5 million at March 31, 2020,
includes $29.4 million of customer repurchase agreements and $74.1
million of FHLB overnight borrowings.
The Company continues to have strong liquidity. At March 31,
2020 and December 31, 2019, the Company had the following sources
of primary and secondary liquidity ($ in thousands):
Primary and Secondary Liquidity
Sources
March
31, 2020
December
31, 2019
Cash and Due From Banks
$
106,992
$
80,076
Unpledged Investment Securities
379,410
366,012
Excess Pledged Securities
72,912
70,955
FHLB Borrowing Availability
347,348
443,200
Unsecured Lines of Credit
80,000
80,000
Funds Available through Fed Discount
Window
69,518
59,198
Totals
$
1,056,180
$
1,099,441
Total capital of $319 million at March 31, 2020, reflects an
increase of $10 million, or 3%, as compared to December 31, 2019.
The increase in equity during the first quarter of 2020 is due to
net income of $7.8 million and a $7.7 million increase in other
comprehensive income/loss due mostly to changes in fair value of
investment securities. These increases were offset by $3.1 million
in dividends and $2.6 million in stock repurchases. The remaining
difference is related to stock options exercised during the
quarter. There were share repurchases totaling 112,050 shares at a
weighted average cost of $22.86 per share executed by the Company
during the first quarter of 2020.
Asset Quality
Total nonperforming assets, comprised of non-accrual loans and
foreclosed assets, increased by $1.6 million, or 24%, during the
first quarter of 2020. The increase resulted from $2.0 million in
new nonaccrual loans and paydowns of approximately $0.4 million.
The increases consisted of a few smaller real-estate loans of
approximately $1.5 million being downgraded to nonaccrual status in
the early part of the quarter, as well as a single commercial loan
for $0.5 million moving to nonaccrual status in early March 2020.
The Company’s ratio of nonperforming assets to loans increased to
0.41% at March 31, 2020, from 0.33% at December 31, 2019. All of
the Company’s impaired assets are periodically reviewed, and are
either well-reserved based on current loss expectations, or are
carried at the fair value of the underlying collateral net of
expected disposition costs.
The Company’s allowance for loan and lease losses was $11.5
million at March 31, 2020, as compared to $9.9 million at December
31, 2019, and $9.4 million at March 31, 2019. The increase during
the first quarter of 2020 is due to a $0.3 million increase in
specific reserve associated primarily with an unsecured commercial
loan being added to nonaccrual status in early March 2020, as well
as a $1.8 million increase in other factors, primarily qualitative
factors associated with economic uncertainty, and net charge-offs
of $0.3 million. For further information regarding the Company’s
decision to defer CECL under Section 4014 of the CARES Act, as well
as further detail on the increase in provision during the first
quarter of 2020, please see the discussion above under Provision
for Loan and Lease Losses. The allowance was 0.64% of total loans
at March 31, 2020, 0.56% of total loans at December 31, 2019, and
0.54% of total loans at March 31, 2019. Management’s detailed
analysis indicates that the Company’s allowance for loan and lease
losses should be sufficient to cover credit losses inherent in loan
and lease balances outstanding as of March 31, 2020, but no
assurance can be given that the Company will not experience
substantial future losses relative to the size of the
allowance.
As discussed above under the provision for loan losses, the
Company provided $1.8 million in provision for loan loss in the
first quarter of 2020 as compared to $0.5 million in the fourth
quarter of 2019. This increase is primarily due to increased
uncertainty of economic risks associated with the COVID-19
pandemic. With respect to exposures related to the COVID-19
pandemic, the Company had less than 70 relationships in the
hospitality industry totaling $216.0 million at March 31, 2020. In
addition to loans in the hospitality sector, we have approximately
$82.7 million of loans in the oil and gas industry (including $69.7
million to convenience stores that offer petroleum products), $86.2
million of loans in retail, and $7 million in consumer loans.
The Company is providing deferrals to customers under Section
4013 of the CARES Act. These deferrals typically provide deferrals
of both principal and interest for 180 days. At the end of the
deferral period, for term loans, payments will be applied to
accrued interest first and after the accrued interest is paid in
full, the loan will be re-amortized with the maturity extended. For
lines of credit, the borrower must repay the accrued interest at
the end of the deferral period or take out a second credit facility
to repay the accrued interest. As of April 15, 2020, we have had
104 commercial customers for a total of $149.1 million who have
either executed a loan modification under Section 4013 of the CARES
Act or we have approved a modification that is expected to be
executed in April 2020. Approximately $50.8 million of these
modifications were in the hospitality industry representing 15
different customers.
About Sierra Bancorp
Sierra Bancorp is the holding company for Bank of the Sierra
(www.bankofthesierra.com), which is in its 43rd year of operations
and is the largest independent bank headquartered in the South San
Joaquin Valley. Bank of the Sierra is a community-centric regional
bank, which offers a broad range of retail and commercial banking
services through full-service branches located within the counties
of Tulare, Kern, Kings, Fresno, Los Angeles, Ventura, San Luis
Obispo and Santa Barbara. The Bank also maintains an online branch,
and provides specialized lending services through an agricultural
credit center, an SBA center, and a dedicated loan production
office in Rocklin, California. In 2019, 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, the Company’s ability
to attract and retain skilled employees, customers’ service
expectations, the Company’s ability to successfully deploy new
technology, the success of acquisitions and branch expansion,
changes in interest rates, loan portfolio performance, and other
factors detailed in the Company’s SEC filings, including the “Risk
Factors” and “Management’s Discussion and Analysis of Financial
Condition and Results of Operations” sections of the Company’s most
recent Form 10‑K and Form 10‑Q.
STATEMENT OF CONDITION
(Dollars in thousands,
unaudited)
Mar '20 vs
Mar '20 vs
ASSETS
3/31/2020
12/31/2019
Dec '19
3/31/2019
Mar '19
Cash and Due from Banks
$106,992
$80,077
+34%
$68,063
+57%
Investment Securities
620,154
600,799
+3%
563,628
+10%
Real Estate Loans (non-Agricultural)
1,259,448
1,258,081
0%
1,318,740
-4%
Agricultural Real Estate Loans
141,740
144,033
-2%
155,110
-9%
Agricultural Production Loans
49,199
48,036
+2%
52,086
-6%
Comm'l & Industrial Loans &
Leases
111,990
115,532
-3%
125,679
-11%
Mortgage Warehouse Lines
228,608
189,103
+21%
91,118
+151%
Consumer Loans
7,040
7,780
-10%
8,256
-15%
Gross Loans & Leases
1,798,025
1,762,565
+2%
1,750,989
+3%
Deferred Loan & Lease Fees
2,741
2,896
-5%
2,787
-2%
Loans & Leases Net of Deferred
Fees
1,800,766
1,765,461
+2%
1,753,776
+3%
Allowance for Loan & Lease Losses
(11,453)
(9,923)
+15%
(9,438)
+21%
Net Loans & Leases
1,789,313
1,755,538
+2%
1,744,338
+3%
Bank Premises & Equipment
28,425
27,435
+4%
28,855
-1%
Other Assets
125,585
129,970
-3%
134,203
-6%
Total Assets
$2,670,469
$2,593,819
+3%
$2,539,087
+5%
LIABILITIES & CAPITAL
Noninterest Demand Deposits
$704,700
$690,950
+2%
$658,524
+7%
Int-Bearing Transaction Accounts
576,014
549,812
+5%
556,628
+3%
Savings Deposits
304,894
294,317
+4%
291,875
+4%
Money Market Deposits
113,766
118,933
-4%
120,697
-6%
Customer Time Deposits
450,017
464,362
-3%
483,024
-7%
Wholesale Brokered Deposits
30,000
50,000
-40%
50,000
-40%
Total Deposits
2,179,391
2,168,374
+1%
2,160,748
+1%
Junior Subordinated Debentures
34,990
34,945
0%
34,811
+1%
Other Interest-Bearing Liabilities
103,461
45,711
+126%
19,360
+434%
Total Deposits & Int.-Bearing
Liab.
2,317,842
2,249,030
+3%
2,214,919
+5%
Other Liabilities
33,168
35,504
-7%
40,100
-17%
Total Capital
319,459
309,285
+3%
284,068
+12%
Total Liabilities & Capital
$2,670,469
$2,593,819
+3%
$2,539,087
+5%
GOODWILL & INTANGIBLE
ASSETS
(Dollars in thousands,
unaudited)
Mar '20 vs
Mar '20 vs
3/31/2020
12/31/2019
Dec '19
3/31/2019
Mar '19
Goodwill
$ 27,357
$ 27,357
0%
$ 27,357
0%
Core Deposit Intangible
5,112
5,381
-5%
6,187
-17%
Total Intangible Assets
$ 32,469
$ 32,738
-1%
$ 33,544
-3%
CREDIT QUALITY
(Dollars in thousands,
unaudited)
Mar '20 vs
Mar '20 vs
3/31/2020
12/31/2019
Dec '19
3/31/2019
Mar '19
Non-Accruing Loans
$ 7,351
$ 5,737
+28%
$ 4,568
+61%
Foreclosed Assets
766
800
-4%
806
-5%
Total Nonperforming Assets
$ 8,117
$ 6,537
+24%
$ 5,374
+51%
Performing TDR's (not incl. in NPA's)
$ 8,188
$ 8,415
-3%
$ 10,750
-24%
Net charge-offs
$ 270
$ 1,777
-85%
$ 612
-56%
Non-Perf Loans to Gross Loans
0.41%
0.33%
0.26%
NPA's to Loans plus Foreclosed Assets
0.45%
0.37%
0.31%
Allowance for Ln Losses to Loans
0.64%
0.56%
0.54%
SELECT PERIOD-END STATISTICS
(unaudited)
3/31/2020
12/31/2019
3/31/2019
Shareholders Equity / Total Assets
12.0%
11.9%
11.2%
Gross Loans / Deposits
82.5%
81.3%
81.0%
Non-Int. Bearing Dep. / Total Dep.
32.3%
31.9%
30.5%
CONSOLIDATED INCOME STATEMENT
(Dollars in thousands,
unaudited)
Qtr Ended:
1Q20 vs
Qtr Ended:
1Q20 vs
3/31/2020
12/31/2019
4Q19
3/31/2019
1Q19
Interest Income
$ 26,051
$ 27,775
-6%
$ 27,483
-5%
Interest Expense
2,264
2,953
-23%
3,510
-35%
Net Interest Income
23,787
24,822
-4%
23,973
-1%
Provision for Loan & Lease Losses
1,800
500
+260%
300
+500%
Net Int after Provision
21,987
24,322
-10%
23,673
-7%
Service Charges
3,183
3,356
-5%
2,943
+8%
BOLI Income
38
567
-93%
900
-96%
Gain (Loss) on Investments
-
(227)
100%
6
-100%
Other Noninterest Income
2,885
2,150
+34%
2,057
+40%
Total Noninterest Income
6,106
5,846
+4%
5,906
+3%
Salaries & Benefits
10,172
8,957
+14%
9,243
+10%
Occupancy Expense
2,327
2,550
-9%
2,361
-1%
Other Noninterest Expenses
5,319
6,475
-18%
6,248
-15%
Total Noninterest Expense
17,818
17,982
-1%
17,852
0%
Income Before Taxes
10,275
12,186
-16%
11,727
-12%
Provision for Income Taxes
2,468
2,901
-15%
2,832
-13%
Net Income
$ 7,807
$ 9,285
-16%
$ 8,895
-12%
TAX DATA
Tax-Exempt Muni Income
$ 1,339
$ 1,257
+7%
$ 1,045
+28%
Interest Income - Fully Tax Equivalent
$ 26,407
$ 28,109
-6%
$ 27,761
-5%
PER SHARE DATA
(unaudited)
Qtr Ended:
1Q20 vs
Qtr Ended:
1Q20 vs
3/31/2020
12/31/2019
4Q19
3/31/2019
1Q19
Basic Earnings per Share
$0.51
$0.61
+12%
$0.58
+32%
Diluted Earnings per Share
$0.51
$0.60
+14%
$0.58
+32%
Common Dividends
$0.20
$0.19
+13%
$0.18
+13%
Wtd. Avg. Shares Outstanding
15,262,252
15,285,413
0%
15,311,154
+1%
Wtd. Avg. Diluted Shares
15,340,017
15,393,381
0%
15,447,747
0%
Book Value per Basic Share (EOP)
$21.03
$20.24
+4%
$18.53
+11%
Tangible Book Value per Share (EOP)
$18.89
$18.09
+5%
$16.34
+12%
Common Shares Outstanding (EOP)
15,190,038
15,284,538
0%
15,328,030
+1%
KEY FINANCIAL RATIOS
(unaudited)
Qtr Ended:
Qtr Ended:
3/31/2020
12/31/2019
3/31/2019
Return on Average Equity
9.97%
11.97%
12.99%
Return on Average Assets
1.23%
1.41%
1.44%
Net Interest Margin (Tax-Equiv.)
4.13%
4.15%
4.30%
Efficiency Ratio (Tax-Equiv.)
58.88%
57.30%
58.74%
Net C/O's to Avg Loans (not
annualized)
0.02%
0.10%
0.04%
AVERAGE BALANCE SHEET, INTEREST
INCOME/EXPENSE, & YIELD/RATE
(Dollars in thousands,
unaudited)
For the quarter ended
For the quarter ended
For the quarter ended
March 31, 2020
December 31, 2019
March 31, 2019
Average Balance
Income/ Expense
Yield/ Rate
Average Balance
Income/ Expense
Yield/ Rate
Average Balance
Income/ Expense
Yield/ Rate
Assets
Investments:
Federal funds sold/due from's
$
37,124
$
140
1.52%
$
11,592
$
49
1.68%
$
11,469
$
73
2.58%
Taxable
408,591
2,460
2.42%
422,813
2,448
2.30%
418,901
2,617
2.53%
Non-taxable
195,690
1,339
3.48%
181,633
1,257
3.48%
142,329
1,045
3.77%
Total investments
641,405
3,939
2.69%
616,038
3,754
2.63%
572,699
3,735
2.84%
Loans and Leases:
Real estate
1,394,911
18,722
5.40%
1,413,347
19,719
5.54%
1,464,275
20,100
5.57%
Agricultural Production
48,532
583
4.83%
47,964
647
5.35%
50,550
780
6.26%
Commercial
107,696
1,097
4.10%
110,760
1,344
4.81%
122,597
1,577
5.22%
Consumer
7,583
368
19.52%
8,148
379
18.45%
8,718
315
14.65%
Mortgage warehouse lines
144,621
1,264
3.52%
203,593
1,883
3.67%
63,120
927
5.96%
Other
5,242
78
5.98%
2,596
49
7.49%
3,107
49
6.40%
Total loans and leases
1,708,585
22,112
5.21%
1,786,408
24,021
5.33%
1,712,367
23,748
5.62%
Total interest earning assets
2,349,990
$
26,051
4.52%
2,402,446
$
27,775
4.64%
2,285,066
$
27,483
4.93%
Other earning assets
12,841
12,743
11,678
Non-earning assets
196,906
197,857
209,613
Total assets
$
2,559,737
$
2,613,046
$
2,506,357
Liabilities and shareholders'
equity
Interest bearing deposits:
Demand deposits
$
88,731
$
62
0.28%
$
92,132
$
69
0.30%
$
99,252
$
72
0.29%
NOW
456,586
122
0.11%
457,008
131
0.11%
437,209
126
0.12%
Savings accounts
297,721
73
0.10%
291,107
78
0.11%
287,773
75
0.11%
Money market
117,249
43
0.15%
126,211
45
0.14%
128,686
41
0.13%
Time Deposits
460,551
1,367
1.19%
479,441
1,779
1.47%
472,296
2,316
1.99%
Wholesale Brokered Deposits
40,824
167
1.65%
50,761
247
1.93%
50,000
325
2.64%
Total interest-bearing deposits
1,461,662
1,834
0.50%
1,496,660
2,349
0.62%
1,475,216
2,955
0.81%
Borrowed funds:
Junior Subordinated Debentures
34,962
394
4.53%
34,919
430
4.89%
34,784
483
5.63%
Other Interest-bearing Liabilities
33,432
36
0.43%
56,029
174
1.23%
26,521
72
1.10%
Total borrowed funds
68,394
430
2.53%
90,948
604
2.63%
61,305
555
3.67%
Total interest-bearing liabilities
1,530,056
$
2,264
0.60%
1,587,608
$
2,953
0.74%
1,536,521
$
3,510
0.93%
Noninterest-bearing deposits
678,592
679,718
652,910
Other liabilities
36,220
38,038
39,150
Shareholders' equity
314,869
307,682
277,776
Total liabilities and shareholders'
equity
$
2,559,737
$
2,613,046
$
2,506,357
Yield on earning assets
4.52%
4.64%
4.93%
Interest expense/interest earning
assets
0.39%
0.49%
0.63%
Net interest income and margin
$
23,787
4.13%
$
24,822
4.15%
$
23,973
4.30%
Note: Where impacted by non-taxable
income, yields and net interest margins have been computed on a tax
equivalent basis utilizing a 21% tax rate.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200420005109/en/
Kevin McPhaill, President/CEO (559) 782‑4900 or (888) 454‑BANK
www.sierrabancorp.com
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