Sierra Bancorp (BSRR) Q4 1999 earnings summary

Executive summary

• 1999 marked the 17th consecutive year of higher net income: $5.61 million, up 7.43% YoY; total assets reached $458.4 million at year-end.

• Expansion included two new branches and a definitive agreement to acquire Sierra National Bank for $9.1 million cash, subject to approvals.

Financial highlights

• Net interest income before loan-loss provision rose 7.13% to $22.79 million; net interest income after provision was $20.67 million.

• Net income was $5.612 million versus $5.224 million in 1998; basic and diluted EPS was $0.61 versus $0.57.

• Total assets increased to $458.384 million from $404.064 million; gross loans reached $317.510 million and deposits $385.818 million.

• Non-interest income fell to $5.346 million from $6.076 million; 1998 included a $650,000 Phoenix International investment gain and a $600,000 gain on credit-card portfolio sales.

Outlook and guidance

• 2000 net interest margin was expected to decline as deposit costs rise and loan pricing faces competition; net interest income could increase if loans and investments grow without substantial deposit-rate increases.

• Acquisition of Sierra National Bank was expected in 2000 for approximately $9.1 million cash; its four branches and roughly $85 million of deposits could support deposit growth of approximately 25% if a major portion transfers.

• Personnel, occupancy, technology, and marketing costs were expected to rise with the four acquired branches; servicing income was expected to decline following portfolio sales.