Sierra Bancorp (BSRR) Q4 2001 earnings summary

Executive summary

• 2001 net income rose more than 25% to $6.9 million, supported by higher net interest income, securities and loan-sale gains, lower loan-loss provision, and expense controls.

• A new holding-company structure and $15 million trust preferred offering strengthened capital and enabled a more ambitious expansion program for 2002.

Financial highlights

• Consolidated assets were $650.4 million, deposits $521.3 million, and shareholders’ equity $46.1 million at Dec. 31, 2001.

• Net income was $6.9 million in 2001 vs. $5.5 million in 2000 and $5.6 million in 1999; EPS was $0.75 vs. $0.60 and $0.61, respectively.

• Average earning assets increased 4.7%; net interest income rose $595,000 despite a slight decline in net interest margin.

• Gains on investment securities, loan sales and servicing, lower loan-loss provision, and expense controls contributed to earnings growth.

Outlook and guidance

• Actions taken in 2001 were expected to support stronger performance and expansion in 2002; higher regulatory capital was expected to enable additional loan growth.

• SBA lending generated approximately $13 million of loans in 2001 and was expected to become a growing part of the loan portfolio.

• Cost controls implemented during 2001 were expected to continue enhancing profitability in future years.