Sierra Bancorp (BSRR) Q4 2000 earnings summary

Executive summary

• Net income was $5.48M in 2000, down from $5.61M in 1999; acquisition-led growth lifted year-end assets 32% to $606.7M.

• The May acquisition added four branches and expanded the South Valley footprint, but operating costs outpaced incremental earnings during 2000.

Financial highlights

• Net interest income rose 24.25% to $28.32M; net income declined 2.32% to $5.48M and diluted EPS was $0.60 versus $0.61 in 1999.

• Interest income increased to $46.99M from $34.51M; non-interest income was $6.44M versus $5.35M, and non-interest expense rose to $23.77M from $17.63M.

• Total deposits grew 37% to $527.8M; loans ended the year at $421.7M versus $317.5M.

Outlook and guidance

• For 2001, net interest income was expected to increase slightly if loans and investments grew moderately and deposit rates did not rise substantially; margin was expected to decline.

• Plans called for lower 2001 growth, cost and profitability reviews, and a return to well-capitalized status by year-end; management noted the target was not assured.

• Expected continued lower loan yields and competitive deposit pricing could constrain margin; potential improvement later in 2001 depended on market conditions.