Sierra Bancorp (Nasdaq: BSRR), parent of Bank of the Sierra,
today announced its unaudited financial results for the quarter
ended March 31, 2024. Sierra Bancorp reported consolidated net
income of $9.3 million, or $0.64 per diluted share, for the first
quarter of 2024 compared to $8.8 million, or $0.58 per diluted
share, in the first quarter of 2023. The favorable variance in net
income came largely from a $0.6 million increase in net interest
income due mostly to a $0.7 million decline in other borrowing
costs as a result of the strategic balance sheet restructuring
during the quarter. The Company's return on average assets and
return on average equity was 1.06% and 11.09%, respectively, in the
first quarter of 2024 as compared to 0.97% and 11.53%,
respectively, in the first quarter of 2023.
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.
- 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 at March 31,
2024, represent 34% of total deposits.
- Uninsured deposits are approximately 28% of total deposit
balances.
- 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 on May 13,
2024.
- Overall primary and secondary liquidity sources of $2.5 billion
at March 31, 2024.
- Completion of Balance Sheet Restructuring to Improve Future
Earnings
- Completed initial sale of $196.7 million in investments in
early January 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 late March 2024.
- Bonds sold had a weighted average yield of 3.02%.
- Proceeds from bond sale will be used to fund anticipated loan
growth.
“Each fresh peak ascended teaches something.” –
Sir Martin Conway
“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 Kevin McPhaill,
CEO and President. “Following the completion of our balance sheet
restructuring last quarter, our return on assets and net interest
margin both showed strong improvement this quarter. In addition,
both our capital and liquidity positions strengthened. We also grew
outstanding loans by 3.2% during the quarter while maintaining
strong total and low-cost deposits. This is a direct result of the
efforts of our banking team! Our bankers continue to understand the
importance of relationship-based community banking and we are
grateful for our loyal customers and communities. We are excited
for the opportunities ahead in 2024 and beyond!” McPhaill
concluded.
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
December 31, 2023)
- 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 ended
December 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 December 31,
2023)
- 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.
FINANCIAL HIGHLIGHTS
(Dollars in Thousands, Except Per Share
Data, Unaudited)
As of or for the
three months ended
3/31/2024
12/31/2023
3/31/2023
Net income
$
9,330
$
6,290
$
8,751
Diluted earnings per share
$
0.64
$
0.43
$
0.58
Return on average assets
1.06%
0.67%
0.97%
Return on average equity
11.09%
8.03%
11.53%
Net interest margin (tax-equivalent)
(1)
3.62%
3.31%
3.47%
Yield on average loans
4.89%
4.78%
4.50%
Yield on investments
5.59%
5.35%
4.73%
Cost of average total deposits
1.38%
1.24%
0.83%
Cost of funds
1.58%
1.73%
1.15%
Efficiency ratio (tax-equivalent) (1)
(2)
65.97%
67.10%
64.87%
Total assets
$
3,553,072
$
3,729,799
$
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
$
1,041,748
Total deposits
$
2,847,004
$
2,761,223
$
2,948,988
Noninterest-bearing deposits over total
deposits
34.0%
37.0%
35.3%
Shareholders' equity / total assets
9.7%
9.1%
8.3%
Tangible common equity ratio (2)
9.0%
8.4%
7.6%
Book value per share
$
23.56
$
22.85
$
20.40
Tangible book value per share (2)
$
21.61
$
20.91
$
18.44
Community bank leverage ratio
11.6%
11.3%
10.7%
Tangible common equity ratio (bank only)
(2)
10.6%
10.3%
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 $28.7 million for the first quarter of
2024, an increase of $0.8 million, or 3%, as compared to the fourth
quarter of 2023 and an increase of $0.6 million, or 2%, as compared
to the first quarter of 2023. This increase in interest income was
due primarily to a $2.3 million decrease in interest expense due to
the reduction in borrowed funds facilitated by a balance sheet
restructuring, partially offset by a related decline in interest
income on investments of $1.5 million, or 3%, due to the sale of
low yielding investments.
For the first quarter of 2024 as compared to the same quarter in
2023, the $3.5 million increase in interest income is due primarily
to a $56.8 million increase in average loan balances, as well as a
39 basis point increase in yield. However, this was partially
offset by a $3.0 million increase in interest expense due to the
movement of deposits from lower cost transaction accounts to higher
cost time deposits including wholesale brokered deposits. Deposit
costs increased 82 basis points in the first quarter of 2024 as
compared to the same quarter in 2023, while there was a 35 basis
points decrease in the cost of borrowed funds.
At March 31, 2024, 54% (fair value) of the Investment portfolio
are variable rate AA and AAA rated collateralized loan obligations
(CLOs). These securities have a market yield of 7.22% with rates
that adjust quarterly. At March 31, 2024, these CLOs have a net
unrealized gain of $0.5 million. These securities account for 68%
of the interest income on investments in the first quarter of 2024
and were mostly purchased in 2021 and 2022 when rates were at
historical lows to complement our fixed-rate earning assets.
At March 31, 2024, approximately 22% of the Bank’s loan
portfolio is scheduled to mature or reprice within twelve months
and an additional 13% that could reprice within three years. In
addition, approximately $563.6 million, or 53.3%, of the securities
portfolio consists of floating rate bonds that will reprice in less
than 90 days.
Interest expense was $12.2 million for the first quarter of
2024, a $2.3 million decrease, or 16%, from the linked quarter, and
an increase of $3.0 million, or 32% from the same period in 2023.
The decrease in the linked quarter comparison is attributable to
the strategic balance sheet restructuring that resulted in a shift
from being a net purchaser of Federal Funds at December 31, 2023,
to maintaining excess funds at the Federal Reserve Bank at March
31, 2024. The increase in the quarterly comparison was primarily
due to an increase in rates paid on customer variable rate
Certificates of Deposits. The rate on the variable account is tied
to a spread to the Wall Street Journal Prime Rate and varies from
Prime minus 600 basis points to Prime minus 375 basis points.
During the twelve-month period from March 31, 2023, to March 31,
2024, the Prime rate increased 50 basis points.
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 March 31, 2023. While the yield of interest-earning
assets increased 14 basis points for the first quarter of 2024 as
compared to the linked quarter, the cost of interest-bearing
liabilities decreased 20 basis points for the same period of
comparison. The average balance of interest-earning assets
decreased $175.4 million for the linked quarter while the decrease
in interest-bearing liabilities was $168.8 million for the same
period. The decrease in interest rates on a larger volume of
interest-bearing liabilities (mostly higher cost borrowed funds)
over the increase in yield on interest-earning assets improved the
net interest margin in the linked quarter.
Provision for Credit Losses
The Company recorded a provision for credit losses of $0.1
million in the first quarter of 2024, as compared to $3.5 million
in the fourth quarter of 2023, and $0.3 million in the first
quarter of 2023. The lower provision for credit losses in the first
quarter of 2024 over the linked quarter was primarily due to the
impact of one $2.3 million commercial real estate credit charged
off in the fourth quarter of 2023. The decrease in provision in the
first quarter of 2024 as compared to the same quarter in 2023 was a
result of reduced quantitative reserves from an improved economic
forecast coupled with lower loan balances in most categories. Some
of the calculated reserve reduction was offset by higher net loan
charge-offs, however the overall reserve for credit losses was
$0.05 million higher at March 31, 2024, as compared to March 31,
2023.
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 $0.5 million, or 7%, to $8.6
million in the first quarter of 2024 as compared to the linked
quarter. Noninterest income increased by $2.0 million, or 31%, in
the first quarter of 2024 as compared to the same quarter in 2023.
The first quarter 2024 increase of $0.5 million, compared to the
fourth quarter of 2023, is primarily due to net gains on the sale
of branch properties that were a part of our sale/leaseback
transaction and related securities sales strategy along with
favorable changes in bank owned life insurance associated with
deferred compensation plans. Partially offsetting these favorable
variances were $0.3 million in service charges and fees decreases
and lower life insurance death benefits.
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 $0.3
million for the quarterly comparison instead of a decrease in the
linked quarter comparison.
Service charges and fees on customer deposit accounts declined
by $0.3 million, or 4%, to $5.7 million in the first quarter of
2024 as compared to the fourth quarter of 2023. Lower seasonal
analysis fees and lower debit card interchange fees were the
primary drivers of the unfavorable variance. Service charges and
fees were $0.3 million higher in the first quarter of 2024 as
compared to the first quarter of 2023 due to higher ATM fees and
higher overdraft-related fees.
Noninterest Expense
Total noninterest expense increased $0.4 million, or 2%, in the
first quarter of 2024 as compared to the fourth quarter of 2023 and
increased $1.5 million, or 7%, compared to the first quarter of
2023. The primary driver of higher expense in the first quarter of
2024 is deferred directors’ fees as part of the Company’s deferred
compensation plan. The higher deferred compensation expense was
offset by higher bank-owned life insurance income, mostly due to
fluctuations in underlying values of assets in the separate account
BOLI policies that are designed to have similar assets to those in
the deferred compensation plans.
Salaries and benefits were $0.2 million lower in the first
quarter of 2024 as compared to the fourth quarter of 2023 and $0.4
million higher than the first quarter of 2023. The decrease in the
linked quarter was due to a strategic reduction in force to drive
operational efficiencies. The increase in the year-over-year
quarterly comparison is due to several factors, including merit
increases for employees due to annual performance evaluations
during the first quarter of 2024, higher payroll taxes in the first
quarter, and severance payments of $0.9 million for the reduction
in force initiative previously mentioned. Overall full-time
equivalent employees were 487 at March 31, 2024, as compared to 485
at December 31, 2023, and 500 at March 31, 2023.
Occupancy expense was up $0.1 million for the linked quarters
and up $0.7 million for the first quarter of 2024 as compared to
the same quarter last year. The reason for the increases in both
comparisons is mostly due to increased rent expense from the
sale/leaseback transaction in December 2023.
Other noninterest expense increased $0.5 million, or 6%, in the
first quarter of 2024 as compared to both the fourth quarter of
2023 and the first quarter of 2023. The primary reason for the
negative variance in the first quarter of 2024 over the same period
in 2023 was increased FDIC assessment costs, and increased
directors deferred compensation expense which is linked to the
fluctuation in BOLI income, although lower advertising expenses and
foreclosed asset costs mitigated some of this negative variance. In
the first quarter of 2024 as compared to the fourth quarter of
2023, directors deferred compensation expense accounted for the
increase, partially offset by lower advertising costs.
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 $176.7 million, or 5%, decrease in total assets during the
first quarter of 2024, is primarily a result of a $281.1 million
decrease in investment securities, from the sale of bonds from the
strategic securities transaction, partially offset by a $66.8
million increase in gross loans and a $40.6 million increase in
cash on hand.
Gross loan balances increased $66.8 million, or 3%, during the
first quarter of 2024. Although most loan categories declined
modestly, mortgage warehouse line utilization increased $87.6
million or 75%. Larger loan category decreases include a $12.8
million decrease in other commercial loans.
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 March 31,
2024, the total regulatory CRE concentration ratio of total CRE
over Tier 1 Capital plus allowance was 248%. Further, the overall
level of construction and land development lending had declined to
1% of regulatory capital plus allowance for credit losses at March
31, 2024. At March 31, 2024, our non-owner occupied commercial real
estate includes $304 million of retail, $155 million of
warehouse/industrial, $186 million of office, and $182 million of
hospitality. Approximately 5% of the office real estate matures in
less than two years.
As indicated in the loan rollforward below, new credit extended
for the first quarter of 2024 decreased $17.6 million over the same
period in 2023 but increased $8.3 million for the linked quarter
comparisons. For the first three months ended 2024, we had $30.8
million in loan paydowns and maturities, along with a $24.9 million
decrease in line of credit utilization, counterbalanced by an $87.6
million increase in mortgage warehouse utilization.
LOAN ROLLFORWARD
(Dollars in Thousands, Unaudited)
For the three months
ended:
March 31, 2024
December 31, 2023
March 31, 2023
Gross loans beginning balance
$
2,090,075
$
2,100,810
$
2,052,940
New credit extended
34,966
26,704
52,609
Changes in line of credit utilization
(24,928
)
4,377
(25,790
)
Change in mortgage warehouse
87,561
8,415
3,033
Pay-downs, maturities, charge-offs and
amortization
(30,810
)
(50,231
)
(48,824
)
Gross loans ending balance
$
2,156,864
$
2,090,075
$
2,033,968
Line utilization, unused commitments, excluding mortgage
warehouse and overdraft lines, were $234.4 million at March 31,
2024, compared to $203.6 million at December 31, 2023. Total
utilization excluding mortgage warehouse and overdraft lines was
58% at March 31, 2024, compared to 53% at December 31, 2023.
Mortgage warehouse utilization was 50% at March 31, 2024, compared
to 36% at December 31, 2023. The increase in mortgage warehouse
utilization during the first quarter of 2024 was due to new
customers in the mortgage warehouse product that ramped up their
utilization.
Deposit balances grew by $85.8 million, or 3%, during the first
quarter of 2024 to $2.8 billion at March 31, 2024. Core
non-maturity deposits decreased $56.7 million, or 3%, for the first
three months of 2024, while customer time deposits increased by
$5.9 million. Brokered deposits increased $136.6 million during the
quarter. Overall noninterest-bearing deposits as a percent of total
deposits decreased to 34.0% at March 31, 2024, compared to 37.0% at
December 31, 2023, and from 35.3% at March 31, 2023.
Overall uninsured deposits are estimated to be approximately
$784.4 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
account or a reciprocal time deposit through the Certificate of
Deposit Account Registry System (CDARS). IntraFi allows for up to
$150 million of combined 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
March 31, 2024, the Company had approximately 121,000 accounts and
the 25 largest deposit balance customers had balances of less than
13% of overall deposits.
Long-term debt at March 31, 2024, consisted of $49.3 million of
subordinated debt. Subordinated debentures related to trust
preferred securities were $35.7 million at both March 31, 2024, and
December 31, 2023.
Customer repurchase agreements increased from $107.1 million at
December 31, 2023, to $121.9 million at March 31, 2024. Customer
repurchase agreements provide collateral for customers that sweep
excess deposit balances each day into a separate repurchase
agreement account where the Company effectively sells certain
government bonds to customers daily and then repurchases the same
bonds on the next business day. Although these accounts are not
deposits and are not FDIC insured, they provide customers with
larger account balances the ability to have their account secured
with collateral.
Other borrowings declined $280.5 million to $80.0 million at
March 31, 2024, from $360.5 million at December 31, 2023, and
consist of term FHLB advances. The decline in other borrowings is
due mostly to a balance sheet restructuring in which the Company
sold bonds with an average book yield of 2.61% to paydown borrowed
funds at an average rate of 5.52%.
The Company continues to have substantial liquidity. At March
31, 2024, and December 31, 2023, the Company had the following
sources of primary and secondary liquidity (dollars in
thousands):
Primary and secondary liquidity
sources
March 31, 2024
December 31, 2023
Cash and cash equivalents
$
119,244
$
78,602
Unpledged investment securities
555,766
792,965
Excess pledged securities
316,889
382,965
FHLB borrowing availability
676,829
586,726
Unsecured lines of credit
504,785
374,785
Funds available through fed discount
window
376,216
392,034
Totals
$
2,549,729
$
2,608,077
Total capital of $345.1 million at March 31, 2024, reflects an
increase of $7.0 million, or 2%, compared to December 31, 2023. The
increase in equity during the first quarter of 2024 is due to net
income of $9.3 million, offset by a $3.4 million dividend paid to
shareholders, $3.3 million in share repurchases, and a $4.1 million
favorable swing in other comprehensive income/loss due principally
to changes in investment securities’ fair value. The remaining
difference is related to equity compensation recognized during the
quarter.
Asset Quality
Total nonperforming assets, comprised of non-accrual loans and
foreclosed assets, increased by $6.2 million, or 78%, during the
first quarter of 2024. The increase resulted from an increase in
non-accrual loans, primarily as a result of one dairy industry real
estate secured loan. This loan was written down by $0.4 million and
no further allowance for credit losses was deemed necessary on this
loan. The Company's ratio of nonperforming assets to loans plus
foreclosed assets increased to 0.66% at March 31, 2024, from 0.38%
at December 31, 2023, due primarily to the one dairy loan
previously mentioned. All of 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.
Overall delinquent loans increased from $1.9 million at March
31, 2023, to $15.6 million at March 31, 2024. This is primarily due
to one agricultural production loan and one commercial real estate
loan both currently written down to the current fair market value
of the collateral.
The Company's allowance for credit losses on loans was $23.1
million at March 31, 2024, as compared to $23.5 million at December
31, 2023, and $23.1 million at March 31, 2023. The allowance was
1.07% of total loans at March 31, 2024, 1.12% of total loans at
December 31, 2023, and 1.14% of total loans at March 31, 2023.
Management's detailed analysis indicates that the Company's
allowance for credit losses on loans should be sufficient to cover
credit losses for the life of the loans outstanding as of March 31,
2024, but no assurance can be given that the Company will not
experience substantial future losses relative to the size of the
credit loss allowance for loans.
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
and is the largest independent bank headquartered in the South San
Joaquin Valley. Bank of the Sierra is a community-centric regional
bank, which offers a broad range of retail and commercial banking
services through full-service branches located within the counties
of Tulare, Kern, Kings, Fresno, Ventura, San Luis Obispo, and Santa
Barbara. The Bank also maintains an online branch and provides
specialized lending services through an agricultural credit center
in Templeton, California, and a dedicated loan production office in
Roseville, California. In 2023, Bank of the Sierra was recognized
as one of the strongest and top-performing community banks in the
country, with a 5-star rating from Bauer Financial.
Forward-Looking Statements
The statements contained in this release that are not historical
facts are forward-looking statements based on management's current
expectations and beliefs concerning future developments and their
potential effects on the Company. Readers are cautioned not to
unduly rely on forward looking statements. Actual results may
differ from those projected. These forward-looking statements
involve risks and uncertainties including but not limited to the
health of the national and local economies, 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 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
3/31/2024
12/31/2023
9/30/2023
6/30/2023
3/31/2023
Cash and due from banks
$
119,244
$
78,602
$
88,542
$
103,483
$
83,506
Investment securities
Available-for-sale, at fair value
741,789
1,019,201
1,010,377
1,027,538
1,040,920
Held-to-maturity, at amortized cost, net
of allowance for credit losses
316,406
320,057
323,544
328,478
332,728
Real estate loans
Residential real estate
406,443
412,063
418,782
426,608
433,185
Commercial real estate
1,327,482
1,328,224
1,334,663
1,317,945
1,318,627
Other construction/land
6,115
6,256
7,320
16,020
15,653
Farmland
66,133
67,276
90,993
92,728
92,906
Total real estate loans
1,806,173
1,813,819
1,851,758
1,853,301
1,860,371
Other commercial
143,448
156,272
137,407
126,360
101,118
Mortgage warehouse lines
203,561
116,000
107,584
110,617
68,472
Consumer loans
3,682
3,984
4,061
4,113
4,007
Gross loans
2,156,864
2,090,075
2,100,810
2,094,391
2,033,968
Deferred loan fees
214
309
163
73
24
Allowance for credit losses on loans
(23,140
)
(23,500
)
(23,060
)
(23,010
)
(23,090
)
Net loans
2,133,938
2,066,884
2,077,913
2,071,454
2,010,902
Bank premises and equipment
16,067
16,907
21,926
22,072
22,321
Other assets
225,628
228,148
216,578
209,436
203,607
Total assets
$
3,553,072
$
3,729,799
$
3,738,880
$
3,762,461
$
3,693,984
LIABILITIES AND CAPITAL
Noninterest demand deposits
$
968,996
$
1,020,772
$
1,059,878
$
1,066,498
$
1,041,748
Interest-bearing transaction accounts
532,791
533,947
561,257
584,263
637,549
Savings deposits
378,057
370,806
400,940
415,793
441,758
Money market deposits
134,533
145,591
130,914
124,834
123,162
Customer time deposits
560,979
555,107
551,731
552,371
519,771
Wholesale brokered deposits
271,648
135,000
165,000
175,000
185,000
Total deposits
2,847,004
2,761,223
2,869,720
2,918,759
2,948,988
Long-term debt
49,326
49,304
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
411,865
398,922
310,861
Total deposits and interest-bearing
liabilities
3,133,885
3,313,808
3,366,481
3,402,510
3,344,611
Allowance for credit losses on unfunded
loan commitments
540
510
600
750
850
Other liabilities
73,553
77,384
62,940
49,609
41,513
Total capital
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
GOODWILL AND INTANGIBLE ASSETS
(Dollars in Thousands, Unaudited)
3/31/2024
12/31/2023
9/30/2023
6/30/2023
3/31/2023
Goodwill
$
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)
3/31/2024
12/31/2023
9/30/2023
6/30/2023
3/31/2023
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)
3/31/2024
12/31/2023
9/30/2023
6/30/2023
3/31/2023
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:
3/31/2024
12/31/2023
3/31/2023
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:
3/31/2024
12/31/2023
3/31/2023
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:
3/31/2024
12/31/2023
3/31/2023
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)
3/31/2024
12/31/2023
3/31/2023
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:
3/31/2024
12/31/2023
3/31/2023
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:
3/31/2024
12/31/2023
3/31/2023
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
March 31, 2024
December 31, 2023
March 31, 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
$ 16,996
$ 243
5.75%
$ 13,661
$ 193
5.61%
$ 5,312
$ 70
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
$ 3,533,823
$ 3,714,269
$ 3,660,651
Liabilities and shareholders'
equity
Interest-bearing deposits:
Demand deposits
$ 137,961
$ 699
2.04%
$ 137,827
$ 698
2.01%
$ 150,139
$ 129
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
$ 3,533,823
$ 3,714,269
$ 3,660,651
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)
$ 28,717
3.62%
$ 27,870
3.31%
$ 28,132
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 ($0.3) million and ($0.1) million
for the quarters ended March 31, 2024, and 2023, respectively, and
$(0.3) million for the quarter ended December 31, 2023.
(4)
Non-accrual loans have been included in
total loans for purposes of computing total earning assets.
(5)
Net interest margin represents net
interest income as a percentage of average interest-earning
assets.
Category: Financial Source: Sierra Bancorp
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240422362794/en/
Kevin McPhaill, President/CEO (559) 782‑4900 or (888) 454‑BANK
www.sierrabancorp.com
Grafico Azioni Sierra Bancorp (NASDAQ:BSRR)
Storico
Da Feb 2025 a Mar 2025
Grafico Azioni Sierra Bancorp (NASDAQ:BSRR)
Storico
Da Mar 2024 a Mar 2025
