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Sierra Bancorp Reports First Quarter 2024 Results

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

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