Sierra Bancorp Reports Improved Financial Results for Second Quarter and First Six Months of 2024
Sierra Bancorp (Nasdaq: BSRR), parent of Bank of the Sierra, announced improved financial results for Q2 and H1 2024.
Net income for Q2 2024 reached $10.3 million, or $0.71 per share, up from $9.9 million, or $0.67 per share, in Q2 2023. Year-to-date net income was $19.6 million, a 5% increase from $18.7 million in the first half of 2023.
Key metrics improved: Return on Average Assets (1.14%), Return on Average Equity (11.95%), and Net Interest Margin (3.69%). Total assets grew by $128.1 million to $3.7 billion. Loans and deposits saw annualized growth of 14% and 13%, respectively.
Highlights include: Decline in nonperforming loans to 0.29%, increase in tangible book value to $22.24 per share, and stock repurchase of 178,168 shares. The quarterly dividend was raised to $0.24 per share.
Challenges include increased provisions for credit losses and higher occupancy costs. Despite these, strategic initiatives and asset quality improvements bolster optimism for continued growth.
- Q2 2024 net income increased to $10.3 million, up 3% YoY.
- Diluted EPS for Q2 2024 rose to $0.71, an increase of 6% YoY.
- Return on Average Assets improved to 1.14% from 1.06% in the prior quarter.
- Net Interest Income increased by $1.5 million, or 5%, QoQ.
- Nonperforming loans to total gross loans declined 56% to 0.29%.
- Total assets grew by $128.1 million to $3.7 billion.
- Loan growth of $77.7 million, or 14% annualized.
- Total deposits increased by $95.4 million, or 13% annualized.
- Tangible book value per share increased by 3% to $22.24.
- Dividend raised by $0.01 to $0.24 per share.
- Provision for credit losses on loans increased by $0.8 million YoY.
- Interest expense for Q2 2024 increased by $0.8 million YoY.
- Noninterest income decreased by $0.4 million YoY.
- Higher occupancy costs due to sale/leaseback transactions.
Insights
Sierra Bancorp's financial results for the second quarter and first half of 2024 exhibit several positive trends, which are indicative of strong operational management and strategic decision-making. The increase in net income to $10.3 million for the second quarter, coupled with a rise in diluted earnings per share to $0.71, reflects improved profitability. The 11% increase in diluted EPS from the prior quarter is particularly noteworthy, suggesting effective cost management and revenue generation despite a challenging interest rate environment.
The growth in net interest income by $1.5 million and an increase in the net interest margin to 3.69% signal effective asset-liability management. The company's focus on higher-yielding loans and reduction in borrowed funds have contributed positively here. Additionally, the decline in nonperforming loans and the absence of foreclosed assets underscore the bank's strong asset quality, which is important for maintaining investor confidence.
From a balance sheet perspective, the 14% annualized increase in total assets and the similar growth in loans and deposits indicate robust business growth and customer acquisition. The repurchase of 178,168 shares and the dividend increase to $0.24 per share also signal strong liquidity and commitment to returning value to shareholders.
Sierra Bancorp's performance metrics are promising from a market perspective. The 13% annualized increase in total deposits suggests enhanced customer trust and engagement, which is essential for future business expansion. The growth of noninterest-bearing deposits to $986.9 million, representing 34% of total deposits, is particularly favorable as it reduces the cost of funds and improves the net interest margin.
A noteworthy highlight is the 56% reduction in total nonperforming loans. This reduction enhances the bank's risk profile and supports its capacity to extend credit under favorable terms. Additionally, the absence of non-owner occupied commercial real estate loans on nonaccrual status as of June 30, 2024, further strengthens the stability of the bank's loan portfolio.
Strategic moves like the sale/leaseback of owned branch locations and internal reorganization to optimize team structure have resulted in lower noninterest expenses, demonstrating effective operational efficiency. These factors collectively position Sierra Bancorp favorably within its market segment and the 3% increase in tangible book value per share to $22.24 reinforces investor value.
From a regulatory and compliance standpoint, Sierra Bancorp shows strong adherence to financial governance. The Community Bank Leverage Ratio of 11.6%, along with the Tangible Common Equity Ratio of 8.8%, indicates a solid capital position that meets regulatory requirements, ensuring the bank's resilience against financial shocks.
The company's steady performance in maintaining low delinquencies at 0.14% of total loans and managing its provision for credit losses prudently ($0.9 million for the second quarter) showcases its robust risk management framework. The strategic restructuring of lower-yielding bond portfolios aligns well with compliance and proactive risk mitigation approaches, thereby reducing exposure to market volatility.
The regulatory Commercial Real Estate concentration ratio of 241%, combined with a decline in total commercial real estate loan balances over the past three years, reflects proactive measures to manage concentration risk effectively. This strategic focus on diversified asset quality and liquidity management contributes to the bank's overall financial health and regulatory compliance.
Highlights for the second quarter of 2024:
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Improved Earnings
-
Diluted Earnings per Share increased
11% , or$0.07 -
Increased Return on Average Assets to
1.14% , from1.06% , in the prior linked quarter. -
Higher Return on Average Equity of
11.95% , compared to11.09% , in the prior linked quarter. -
Improved net interest income by
$1.5 million 5% , as compared to the prior linked quarter. -
Net interest margin grew by 7 basis points from the prior linked quarter to
3.69% .
-
Diluted Earnings per Share increased
-
Strong Asset Quality
-
Total Nonperforming Loans to total gross loans declined
56% to0.29% at June 30, 2024. - No foreclosed assets at June 30, 2024.
-
Regulatory Commercial Real Estate concentration ratio of
241% , and a10% decline in total commercial real estate loan balances the past three years. - No non-owner occupied commercial real estate loans are on nonaccrual status as of June 30, 2024.
-
Delinquencies remained low at
0.14% of total loans.
-
Total Nonperforming Loans to total gross loans declined
-
Asset and Deposit Growth
-
Total assets increased
$128.1 million 14% annualized, during the quarter, to$3.7 billion -
Loan growth of
$77.7 million 14% annualized, during the quarter, to$2.2 billion -
Total deposits increased by
$95.4 million 13% annualized, during the quarter, to$2.9 billion -
Noninterest-bearing deposits of
$986.9 million 34% of total deposits.
-
Total assets increased
-
Solid Capital and Liquidity
-
Increased Tangible Book Value (non-GAAP) per share by
3% , to$22.24 - Repurchased 178,168 shares of stock during the quarter.
-
Raised dividend by
$0.01 $0.24 -
Strong regulatory Community Bank Leverage Ratio of
11.6% , at June 30, 2024, for our subsidiary Bank. -
Tangible Common Equity Ratio (non-GAAP) of
8.8% , at June 30, 2024, on a consolidated basis. -
Overall primary and secondary liquidity sources of
$2.5 billion
-
Increased Tangible Book Value (non-GAAP) per share by
“In any team sport, the best teams have consistency and chemistry.” Roger Staubach
“We are excited to share our strong second quarter results! The solid improvements achieved in the past two quarters demonstrate our balanced commitment to both our communities and shareholders as we complement growth with a focus on balance sheet strategy in a challenging interest rate environment,” stated Kevin McPhaill, CEO and President. “Our expanding and diversified banking teams continue to strengthen existing customer relationships while also bringing new relationships to the Bank. We are proud of our results for the first half of 2024 and believe that building this foundation will enable us to continue providing both exemplary service to our customers and strong and consistent returns for our shareholders,” concluded Mr. McPhaill.
For the first six months of 2024, the Company recognized net income of
Quarterly Income Changes (comparisons to the second quarter of 2023)
-
Net income increased by
$0.3 million 3% , to$10.3 million -
The
$1.9 million 7% , increase in net interest income was driven by a 30 basis points increase in net interest margin. A$180.9 million -
Noninterest income decreased
$0.4 million - Noninterest expense improved due to a strategic internal reorganization in the fourth quarter of 2023 which optimized our team structure, and better aligned our resources and processes.
Linked Quarter Income Changes (comparisons to the three months ended March 31, 2024)
-
Net income improved by
$0.9 million 10% , driven mostly by a$1.5 million $0.8 million -
Net interest income increased by
$1.5 million -
Noninterest income was down
$1.0 million -
Noninterest expense was down
$1.8 million
Year-to-Date Income Changes (comparisons to the first six-months of 2023)
-
Net income increased by
$0.9 million 5% , due mostly to higher net interest income primarily resulting from a decrease in higher cost borrowed funds partially offset by an increase in the provision for credit losses, and an increase in occupancy expenses from the sale/leaseback in late 2023. -
The provision for credit losses on loans was
$1.0 million $0.7 million -
Net interest income increased by
$2.4 million 4% , due mostly to an increase in interest income and a decrease in higher cost borrowed funds. -
Noninterest income increased
$1.6 million 11% , primarily from an increase in service charges on deposit accounts, and a$0.9 million
Balance Sheet Changes (comparisons to December 31, 2023)
-
Total assets decreased
1% , or$48.6 million -
Gross loans increased
$144.5 million 7% , due to a$158.1 million $13.5 million $27.0 million $0.4 million $0.5 million $75.3 million $89.6 million -
Deposits increased by
$181.2 million 7% . The growth in deposits came primarily from brokered deposits, as overall customer deposits decreased$30.4 million -
Other interest-bearing liabilities decreased
$239.6 million
Other financial highlights are reflected in the following table.
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FINANCIAL HIGHLIGHTS |
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(Dollars in Thousands, Except Per Share Data, Unaudited) |
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As of or for the |
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As of or for the |
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three months ended |
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six months ended |
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6/30/2024 |
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3/31/2024 |
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6/30/2023 |
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6/30/2024 |
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6/30/2023 |
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Net income |
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$ |
10,263 |
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$ |
9,330 |
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$ |
9,919 |
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$ |
19,593 |
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$ |
18,670 |
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Diluted earnings per share |
|
$ |
0.71 |
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$ |
0.64 |
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$ |
0.67 |
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$ |
1.35 |
|
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$ |
1.26 |
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Return on average assets |
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1.14 |
% |
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1.06 |
% |
|
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1.07 |
% |
|
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1.10 |
% |
|
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1.02 |
% |
Return on average equity |
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11.95 |
% |
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11.09 |
% |
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13.06 |
% |
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11.52 |
% |
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12.30 |
% |
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Net interest margin (tax-equivalent) (1) |
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3.69 |
% |
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3.62 |
% |
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3.39 |
% |
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3.66 |
% |
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3.43 |
% |
Yield on average loans |
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5.16 |
% |
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4.89 |
% |
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4.74 |
% |
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5.03 |
% |
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4.62 |
% |
Yield on investments |
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5.58 |
% |
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5.59 |
% |
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5.02 |
% |
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5.57 |
% |
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4.88 |
% |
Cost of average total deposits |
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1.53 |
% |
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1.38 |
% |
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1.09 |
% |
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1.46 |
% |
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0.96 |
% |
Cost of funds |
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1.67 |
% |
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1.58 |
% |
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1.50 |
% |
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1.62 |
% |
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1.32 |
% |
Efficiency ratio (tax-equivalent) (1) (2) |
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59.15 |
% |
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65.97 |
% |
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62.27 |
% |
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62.51 |
% |
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63.53 |
% |
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Total assets |
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$ |
3,681,202 |
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$ |
3,553,072 |
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$ |
3,762,461 |
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$ |
3,681,202 |
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$ |
3,762,461 |
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Loans net of deferred fees |
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$ |
2,234,816 |
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$ |
2,157,078 |
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$ |
2,094,464 |
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$ |
2,234,816 |
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$ |
2,094,464 |
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Noninterest demand deposits |
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$ |
986,927 |
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$ |
968,996 |
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$ |
1,066,498 |
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$ |
986,927 |
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$ |
1,066,498 |
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Total deposits |
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$ |
2,942,410 |
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$ |
2,847,004 |
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$ |
2,918,759 |
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$ |
2,942,410 |
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$ |
2,918,759 |
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Noninterest-bearing deposits over total deposits |
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33.5 |
% |
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34.0 |
% |
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36.5 |
% |
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33.5 |
% |
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36.5 |
% |
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Shareholders' equity / total assets |
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9.5 |
% |
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9.7 |
% |
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8.2 |
% |
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9.5 |
% |
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8.2 |
% |
Tangible common equity ratio (2) |
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8.8 |
% |
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9.0 |
% |
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7.5 |
% |
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8.8 |
% |
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7.5 |
% |
Book value per share |
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$ |
24.19 |
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$ |
23.56 |
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$ |
20.90 |
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$ |
24.19 |
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$ |
20.90 |
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Tangible book value per share (2) |
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$ |
22.24 |
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$ |
21.61 |
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$ |
18.93 |
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$ |
22.24 |
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$ |
18.93 |
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Community bank leverage ratio |
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11.6 |
% |
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11.6 |
% |
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10.8 |
% |
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11.6 |
% |
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10.8 |
% |
Tangible common equity ratio (bank only) (2) |
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10.6 |
% |
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10.6 |
% |
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9.3 |
% |
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10.6 |
% |
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9.3 |
% |
(1) |
Computed on a tax equivalent basis utilizing a federal income tax rate of |
(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
For the second quarter of 2024, although the balance of average interest-earning assets was
Net interest income for the comparative year-to-date periods increased
At June 30, 2024, approximately
Interest expense was
Our net interest margin was
Provision for Credit Losses
The provision for credit losses on loans was
There was a benefit for credit losses on unfunded commitments for
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
Total noninterest income decreased by
The Company maintains a non-qualified deferred compensation plan for officers and directors, which allows the participant to defer a portion of their earnings tax-free. Participants are allowed to choose different hypothetical investment alternatives to determine their individualized return on their deferred compensation. The Company has chosen to offset the cost of this liability with a Corporate Owned Life Insurance Policy (“COLI”) which is funded based on deferral elections from the participants. Although the COLI is not directly tied to the deferred compensation plan, the COLI is invested in similar fund types as those selected by the participants. There is some inefficiency in net earnings of the COLI asset as compared to the deferred compensation liability created by the cost of insurance, differences in balances, and differences in individual fund performance. During the second quarter, and first six-months of 2024, earnings from the COLI was
Service charges on customer deposit account income decreased by
Noninterest Expense
Total noninterest expense favorably declined by
Salaries and Benefits were
Occupancy expenses increased by
Other noninterest expense decreased
The Company's effective tax rate was
Balance Sheet Summary
The
The increase in gross loan balances as compared to December 31, 2023, was primarily a result of organic increases of
As indicated in the loan rollforward table below, new credit extended for the second quarter of 2024, increased
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LOAN ROLLFORWARD |
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(Dollars in Thousands, Unaudited) |
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For the three months ended: |
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For the six months ended: |
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June 30,
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March 31,
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June 30,
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June 30,
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June 30,
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Gross loans beginning balance |
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$ |
2,156,864 |
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$ |
2,090,075 |
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$ |
2,033,968 |
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$ |
2,090,075 |
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$ |
2,052,940 |
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New credit extended |
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40,313 |
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34,966 |
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37,030 |
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75,279 |
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89,639 |
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Changes in line of credit utilization (1) |
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(10,412 |
) |
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(24,928 |
) |
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6,622 |
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(35,340 |
) |
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(19,168 |
) |
Change in mortgage warehouse |
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70,498 |
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87,562 |
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42,145 |
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158,060 |
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45,178 |
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Pay-downs, maturities, charge-offs and amortization |
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(22,735 |
) |
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(30,811 |
) |
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(25,374 |
) |
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(53,546 |
) |
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(74,198 |
) |
Gross loans ending balance |
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$ |
2,234,528 |
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$ |
2,156,864 |
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$ |
2,094,391 |
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2,234,528 |
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2,094,391 |
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(1) |
Change does not include new balances on lines of credit extended during the respective periods as such balances are included as part of “New credit extended” line above. |
Unused commitments, excluding mortgage warehouse and overdraft lines, were
Deposit balances reflect growth of
Overall uninsured deposits are estimated to be approximately
The Company continues to have substantial liquidity which is managed daily. At June 30, 2024, and December 31, 2023, the Company had the following sources of primary and secondary liquidity (Dollars in Thousands):
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Primary and secondary liquidity sources |
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June 30, 2024 |
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December 31, 2023 |
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Cash and cash equivalents |
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$ |
183,990 |
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$ |
78,602 |
Unpledged investment securities |
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533,799 |
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792,965 |
Excess pledged securities |
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272,869 |
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382,965 |
FHLB borrowing availability |
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672,300 |
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586,726 |
Unsecured lines of credit |
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504,785 |
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374,785 |
Funds available through fed discount window |
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348,444 |
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392,034 |
Totals |
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$ |
2,516,187 |
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$ |
2,608,077 |
Total capital of
Asset Quality
Total nonperforming assets, comprised of nonaccrual loans and foreclosed assets, decreased by
The Company's allowance for credit losses on loans was
The allowance was
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.
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
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 including the impact to the Company and its customers resulting from changes to, and the level of, inflation and interest rates; changes in laws, rules, regulations, or interpretations to which the Company is subject; the Company’s ability to maintain and grow its deposit base; loan demand and continued portfolio performance, the Company's ability to attract and retain skilled employees, customers' service expectations; cyber security risks: the Company's ability to successfully deploy new technology, the success of acquisitions and branch expansion; operational risks including the ability to detect and prevent errors and fraud; the effectiveness of the Company’s enterprise risk management framework; the impact of adverse developments at other banks, including bank failures, that impact general sentiment regarding the stability and liquidity of banks that could affect stock price; changes to valuations of the Company’s assets and liabilities including the allowance for credit losses, earning assets, and intangible assets; changes to the availability of liquidity sources including borrowing lines and the ability to pledge or sell certain assets; costs related to litigation; the effects of severe weather events, pandemics, other public health crises, acts of war or terrorism, and other external events on our business; 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.
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STATEMENT OF CONDITION |
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(Dollars in Thousands, Unaudited) |
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ASSETS |
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6/30/2024 |
3/31/2024 |
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12/31/2023 |
9/30/2023 |
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6/30/2023 |
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Cash and due from banks |
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$ |
183,990 |
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$ |
119,244 |
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$ |
78,602 |
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$ |
88,542 |
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$ |
103,483 |
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Investment securities |
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Available-for-sale, at fair value |
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716,787 |
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741,789 |
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1,019,201 |
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1,010,377 |
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1,027,538 |
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Held-to-maturity, at amortized cost, net of allowance for credit losses |
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312,879 |
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316,406 |
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320,057 |
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323,544 |
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328,478 |
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Real estate loans |
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Residential real estate |
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396,819 |
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406,443 |
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412,063 |
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418,782 |
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426,608 |
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Commercial real estate |
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1,316,754 |
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1,327,482 |
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1,328,224 |
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1,334,663 |
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1,317,945 |
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Other construction/land |
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5,971 |
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6,115 |
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6,256 |
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7,320 |
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16,020 |
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Farmland |
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80,807 |
|
|
|
66,133 |
|
|
|
67,276 |
|
|
|
90,993 |
|
|
|
92,728 |
|
Total real estate loans |
|
|
1,800,351 |
|
|
|
1,806,173 |
|
|
|
1,813,819 |
|
|
|
1,851,758 |
|
|
|
1,853,301 |
|
Other commercial |
|
|
156,650 |
|
|
|
143,448 |
|
|
|
156,272 |
|
|
|
137,407 |
|
|
|
126,360 |
|
Mortgage warehouse lines |
|
|
274,059 |
|
|
|
203,561 |
|
|
|
116,000 |
|
|
|
107,584 |
|
|
|
110,617 |
|
Consumer loans |
|
|
3,468 |
|
|
|
3,682 |
|
|
|
3,984 |
|
|
|
4,061 |
|
|
|
4,113 |
|
Gross loans |
|
|
2,234,528 |
|
|
|
2,156,864 |
|
|
|
2,090,075 |
|
|
|
2,100,810 |
|
|
|
2,094,391 |
|
Deferred loan fees |
|
|
288 |
|
|
|
214 |
|
|
|
309 |
|
|
|
163 |
|
|
|
73 |
|
Allowance for credit losses on loans |
|
|
(21,640 |
) |
|
|
(23,140 |
) |
|
|
(23,500 |
) |
|
|
(23,060 |
) |
|
|
(23,010 |
) |
Net loans |
|
|
2,213,176 |
|
|
|
2,133,938 |
|
|
|
2,066,884 |
|
|
|
2,077,913 |
|
|
|
2,071,454 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Bank premises and equipment |
|
|
16,007 |
|
|
|
16,067 |
|
|
|
16,907 |
|
|
|
21,926 |
|
|
|
22,072 |
|
Other assets |
|
|
238,363 |
|
|
|
225,628 |
|
|
|
228,148 |
|
|
|
216,578 |
|
|
|
209,436 |
|
Total assets |
|
$ |
3,681,202 |
|
|
$ |
3,553,072 |
|
|
$ |
3,729,799 |
|
|
$ |
3,738,880 |
|
|
$ |
3,762,461 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
LIABILITIES AND CAPITAL |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Noninterest demand deposits |
|
$ |
986,927 |
|
|
$ |
968,996 |
|
|
$ |
1,020,772 |
|
|
$ |
1,059,878 |
|
|
$ |
1,066,498 |
|
Interest-bearing transaction accounts |
|
|
537,731 |
|
|
|
532,791 |
|
|
|
533,947 |
|
|
|
561,257 |
|
|
|
584,263 |
|
Savings deposits |
|
|
368,169 |
|
|
|
378,057 |
|
|
|
370,806 |
|
|
|
400,940 |
|
|
|
415,793 |
|
Money market deposits |
|
|
136,853 |
|
|
|
134,533 |
|
|
|
145,591 |
|
|
|
130,914 |
|
|
|
124,834 |
|
Customer time deposits |
|
|
566,132 |
|
|
|
560,979 |
|
|
|
555,107 |
|
|
|
551,731 |
|
|
|
552,371 |
|
Wholesale brokered deposits |
|
|
346,598 |
|
|
|
271,648 |
|
|
|
135,000 |
|
|
|
165,000 |
|
|
|
175,000 |
|
Total deposits |
|
|
2,942,410 |
|
|
|
2,847,004 |
|
|
|
2,761,223 |
|
|
|
2,869,720 |
|
|
|
2,918,759 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Long-term debt |
|
|
49,348 |
|
|
|
49,326 |
|
|
|
49,304 |
|
|
|
49,281 |
|
|
|
49,259 |
|
Subordinated debentures |
|
|
35,749 |
|
|
|
35,704 |
|
|
|
35,660 |
|
|
|
35,615 |
|
|
|
35,570 |
|
Other interest-bearing liabilities |
|
|
228,003 |
|
|
|
201,851 |
|
|
|
467,621 |
|
|
|
411,865 |
|
|
|
398,922 |
|
Total deposits and interest-bearing liabilities |
|
|
3,255,510 |
|
|
|
3,133,885 |
|
|
|
3,313,808 |
|
|
|
3,366,481 |
|
|
|
3,402,510 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Allowance for credit losses on unfunded loan commitments |
|
|
520 |
|
|
|
540 |
|
|
|
510 |
|
|
|
600 |
|
|
|
750 |
|
Other liabilities |
|
|
75,152 |
|
|
|
73,553 |
|
|
|
77,384 |
|
|
|
62,940 |
|
|
|
49,609 |
|
Total capital |
|
|
350,020 |
|
|
|
345,094 |
|
|
|
338,097 |
|
|
|
308,859 |
|
|
|
309,592 |
|
Total liabilities and capital |
|
$ |
3,681,202 |
|
|
$ |
3,553,072 |
|
|
$ |
3,729,799 |
|
|
$ |
3,738,880 |
|
|
$ |
3,762,461 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
GOODWILL AND INTANGIBLE ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
(Dollars in Thousands, Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
6/30/2024 |
|
|
3/31/2024 |
|
|
12/31/2023 |
|
|
9/30/2023 |
|
|
6/30/2023 |
|||||
Goodwill |
|
$ |
27,357 |
|
|
$ |
27,357 |
|
|
$ |
27,357 |
|
|
$ |
27,357 |
|
|
$ |
27,357 |
|
Core deposit intangible |
|
|
961 |
|
|
|
1,180 |
|
|
|
1,399 |
|
|
|
1,618 |
|
|
|
1,837 |
|
Total intangible assets |
|
$ |
28,318 |
|
|
$ |
28,537 |
|
|
$ |
28,756 |
|
|
$ |
28,975 |
|
|
$ |
29,194 |
|
|
|
|
|
|
|
|
||||||||||||||
CREDIT QUALITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
(Dollars in Thousands, Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
6/30/2024 |
|
|
3/31/2024 |
|
|
12/31/2023 |
|
|
9/30/2023 |
|
|
6/30/2023 |
|||||
Nonperforming loans |
|
$ |
6,473 |
|
|
$ |
14,188 |
|
|
$ |
7,985 |
|
|
$ |
781 |
|
|
$ |
1,141 |
|
Foreclosed assets |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total nonperforming assets |
|
$ |
6,473 |
|
|
$ |
14,188 |
|
|
$ |
7,985 |
|
|
$ |
781 |
|
|
$ |
1,141 |
|
|
|
|
|
|
|
|
||||||||||||||
Quarterly net charge offs |
|
$ |
2,422 |
|
|
$ |
457 |
|
|
$ |
3,618 |
|
|
$ |
67 |
|
|
$ |
157 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Past due and still accruing (30-89) |
|
$ |
3,172 |
|
|
$ |
1,563 |
|
|
$ |
255 |
|
|
$ |
806 |
|
|
$ |
1,873 |
|
Classified loans |
|
$ |
28,829 |
|
|
$ |
34,100 |
|
|
$ |
35,577 |
|
|
$ |
39,958 |
|
|
$ |
37,298 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Nonperforming loans / gross loans |
|
|
0.29 |
% |
|
|
0.66 |
% |
|
|
0.38 |
% |
|
|
0.04 |
% |
|
|
0.05 |
% |
NPA's / loans plus foreclosed assets |
|
|
0.29 |
% |
|
|
0.66 |
% |
|
|
0.38 |
% |
|
|
0.04 |
% |
|
|
0.05 |
% |
Allowance for credit losses on loans / gross loans |
|
|
0.97 |
% |
|
|
1.07 |
% |
|
|
1.12 |
% |
|
|
1.10 |
% |
|
|
1.10 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
SELECT PERIOD-END STATISTICS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
6/30/2024 |
|
|
3/31/2024 |
|
|
12/31/2023 |
|
|
9/30/2023 |
|
|
6/30/2023 |
|||||
Shareholders' equity / total assets |
|
|
9.5 |
% |
|
|
9.7 |
% |
|
|
9.1 |
% |
|
|
8.3 |
% |
|
|
8.2 |
% |
Gross loans / deposits |
|
|
75.9 |
% |
|
|
75.8 |
% |
|
|
75.7 |
% |
|
|
73.2 |
% |
|
|
71.8 |
% |
Noninterest-bearing deposits / total deposits |
|
|
33.5 |
% |
|
|
34.0 |
% |
|
|
37.0 |
% |
|
|
36.9 |
% |
|
|
36.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
CONSOLIDATED INCOME STATEMENT |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
(Dollars in Thousands, Unaudited) |
|
|
For the three months ended: |
|
|
For the six months ended: |
||||||||||||||
|
|
|
6/30/2024 |
|
|
3/31/2024 |
|
|
6/30/2023 |
|
|
6/30/2024 |
|
|
6/30/2023 |
|||||
Interest income |
|
$ |
43,495 |
|
|
$ |
40,961 |
|
|
$ |
40,875 |
|
|
$ |
84,455 |
|
|
$ |
78,294 |
|
Interest expense |
|
|
13,325 |
|
|
|
12,244 |
|
|
|
12,558 |
|
|
|
25,568 |
|
|
|
21,845 |
|
Net interest income |
|
|
30,170 |
|
|
|
28,717 |
|
|
|
28,317 |
|
|
|
58,887 |
|
|
|
56,449 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Credit loss expense - loans |
|
|
921 |
|
|
|
97 |
|
|
|
77 |
|
|
|
1,018 |
|
|
|
327 |
|
Credit loss (benefit) expense - unfunded commitments |
|
|
(20 |
) |
|
|
30 |
|
|
|
(100 |
) |
|
|
10 |
|
|
|
(137 |
) |
Credit loss benefit - debt securities held-to-maturity |
|
|
- |
|
|
|
- |
|
|
|
(47 |
) |
|
|
- |
|
|
|
- |
|
Net interest income after provision |
|
|
29,269 |
|
|
|
28,590 |
|
|
|
28,387 |
|
|
|
57,859 |
|
|
|
56,259 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Service charges and fees on deposit accounts |
|
|
6,184 |
|
|
|
5,726 |
|
|
|
5,691 |
|
|
|
11,909 |
|
|
|
11,071 |
|
(Loss) gain on sale of investments |
|
|
- |
|
|
|
(2,883 |
) |
|
|
351 |
|
|
|
(2,883 |
) |
|
|
396 |
|
Gain on sale of fixed assets |
|
|
- |
|
|
|
3,799 |
|
|
|
- |
|
|
|
3,799 |
|
|
|
- |
|
BOLI income |
|
|
523 |
|
|
|
1,215 |
|
|
|
658 |
|
|
|
1,738 |
|
|
|
830 |
|
Other noninterest income |
|
|
923 |
|
|
|
732 |
|
|
|
1,313 |
|
|
|
1,656 |
|
|
|
2,296 |
|
Total noninterest income |
|
|
7,630 |
|
|
|
8,589 |
|
|
|
8,013 |
|
|
|
16,219 |
|
|
|
14,593 |
|
|
|
|
|
|
|
|
|
|
||||||||||||
Salaries and benefits |
|
|
12,029 |
|
|
|
13,197 |
|
|
|
12,129 |
|
|
|
25,226 |
|
|
|
24,944 |
|
Occupancy expense |
|
|
3,152 |
|
|
|
3,025 |
|
|
|
2,438 |
|
|
|
6,177 |
|
|
|
4,769 |
|
Other noninterest expenses |
|
|
7,511 |
|
|
|
8,304 |
|
|
|
8,401 |
|
|
|
15,815 |
|
|
|
16,247 |
|
Total noninterest expense |
|
|
22,692 |
|
|
|
24,526 |
|
|
|
22,968 |
|
|
|
47,218 |
|
|
|
45,960 |
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income before taxes |
|
|
14,207 |
|
|
|
12,653 |
|
|
|
13,432 |
|
|
|
26,860 |
|
|
|
24,892 |
|
Provision for income taxes |
|
|
3,944 |
|
|
|
3,323 |
|
|
|
3,513 |
|
|
|
7,267 |
|
|
|
6,222 |
|
Net income |
|
$ |
10,263 |
|
|
$ |
9,330 |
|
|
$ |
9,919 |
|
|
$ |
19,593 |
|
|
$ |
18,670 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
TAX DATA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Tax-exempt muni income |
|
$ |
1,592 |
|
|
$ |
1,989 |
|
|
$ |
2,741 |
|
|
$ |
3,581 |
|
|
$ |
5,555 |
|
Interest income - fully tax equivalent |
$ |
43,918 |
|
|
$ |
41,490 |
|
|
$ |
41,604 |
|
|
$ |
85,407 |
|
|
$ |
79,771 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
PER SHARE DATA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
(Unaudited) |
|
|
For the three months ended: |
|
|
For the six months ended: |
||||||||||||||
|
|
|
6/30/2024 |
|
|
3/31/2024 |
|
|
6/30/2023 |
|
|
6/30/2024 |
|
|
6/30/2023 |
|||||
Basic earnings per share |
|
$ |
0.72 |
|
|
$ |
0.64 |
|
|
$ |
0.67 |
|
|
$ |
1.36 |
|
|
$ |
1.26 |
|
Diluted earnings per share |
|
$ |
0.71 |
|
|
$ |
0.64 |
|
|
$ |
0.67 |
|
|
$ |
1.35 |
|
|
$ |
1.26 |
|
Common dividends paid during period |
|
$ |
0.23 |
|
|
$ |
0.23 |
|
|
$ |
0.23 |
|
|
$ |
0.46 |
|
|
$ |
0.46 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Weighted average shares outstanding |
|
|
14,300,267 |
|
|
|
14,508,468 |
|
|
|
14,735,568 |
|
|
|
14,404,368 |
|
|
|
14,853,052 |
|
Weighted average diluted shares |
|
|
14,381,426 |
|
|
|
14,553,627 |
|
|
|
14,754,764 |
|
|
|
14,467,477 |
|
|
|
14,875,508 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Book value per basic share (EOP) |
|
$ |
24.19 |
|
|
$ |
23.56 |
|
|
$ |
20.90 |
|
|
$ |
24.19 |
|
|
$ |
20.90 |
|
Tangible book value per share (EOP) (2) |
|
$ |
22.24 |
|
|
$ |
21.61 |
|
|
$ |
18.93 |
|
|
$ |
22.24 |
|
|
$ |
18.93 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Common shares outstanding (EOP) |
|
|
14,466,873 |
|
|
|
14,645,298 |
|
|
|
14,811,736 |
|
|
|
14,466,873 |
|
|
|
14,811,736 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
KEY FINANCIAL RATIOS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
(Unaudited) |
|
|
For the three months ended: |
|
|
For the six months ended: |
||||||||||||||
|
|
|
6/30/2024 |
|
|
3/31/2024 |
|
|
6/30/2023 |
|
|
6/30/2024 |
|
|
6/30/2023 |
|||||
Return on average equity |
|
|
11.95 |
% |
|
|
11.09 |
% |
|
|
13.06 |
% |
|
|
11.52 |
% |
|
|
12.30 |
% |
Return on average assets |
|
|
1.14 |
% |
|
|
1.06 |
% |
|
|
1.07 |
% |
|
|
1.10 |
% |
|
|
1.02 |
% |
Net interest margin (tax-equivalent) (1) |
|
|
3.69 |
% |
|
|
3.62 |
% |
|
|
3.39 |
% |
|
|
3.66 |
% |
|
|
3.43 |
% |
Efficiency ratio (tax-equivalent) (1) (2) |
|
|
59.15 |
% |
|
|
65.97 |
% |
|
|
62.27 |
% |
|
|
62.51 |
% |
|
|
63.53 |
% |
Net charge-offs / average loans (not annualized) |
|
|
0.11 |
% |
|
|
0.02 |
% |
|
|
0.01 |
% |
|
|
0.13 |
% |
|
|
0.02 |
% |
(1) |
Computed on a tax equivalent basis utilizing a federal income tax rate of |
(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) |
|
|
|
|
|
|
|
|
|
|||
|
|
|
6/30/2024 |
|
|
3/31/2024 |
|
|
6/30/2023 |
|||
Total stockholders' equity |
|
$ |
350,020 |
|
|
$ |
345,094 |
|
|
$ |
309,592 |
|
Less: goodwill and other intangible assets |
|
|
28,318 |
|
|
|
28,537 |
|
|
|
29,194 |
|
Tangible common equity |
|
$ |
321,702 |
|
|
$ |
316,557 |
|
|
$ |
280,398 |
|
|
|
|
|
|
|
|
|
|
|
|||
Total assets |
|
$ |
3,681,202 |
|
|
$ |
3,553,072 |
|
|
$ |
3,762,461 |
|
Less: goodwill and other intangible assets |
|
|
28,318 |
|
|
|
28,537 |
|
|
|
29,194 |
|
Tangible assets |
|
$ |
3,652,884 |
|
|
$ |
3,524,535 |
|
|
$ |
3,733,267 |
|
|
|
|
|
|
|
|
|
|
|
|||
Total stockholders' equity (bank only) |
|
$ |
415,210 |
|
|
$ |
401,742 |
|
|
$ |
403,918 |
|
Less: goodwill and other intangible assets (bank only) |
|
|
28,318 |
|
|
|
28,537 |
|
|
|
29,194 |
|
Tangible common equity (bank only) |
|
$ |
386,892 |
|
|
$ |
373,205 |
|
|
$ |
374,724 |
|
|
|
|
|
|
|
|
|
|
|
|||
Total assets (bank only) |
|
$ |
3,678,508 |
|
|
$ |
3,550,459 |
|
|
$ |
3,762,461 |
|
Less: goodwill and other intangible assets (bank only) |
|
|
28,318 |
|
|
|
28,537 |
|
|
|
29,194 |
|
Tangible assets (bank only) |
|
$ |
3,650,190 |
|
|
$ |
3,521,922 |
|
|
$ |
3,733,267 |
|
|
|
|
|
|
|
|
|
|
|
|||
Common shares outstanding |
|
|
14,466,946 |
|
|
|
14,645,298 |
|
|
|
14,811,736 |
|
|
|
|
|
|
|
|
|
|
|
|||
Book value per common share (total stockholders' equity / shares outstanding) |
|
$ |
24.19 |
|
|
$ |
23.56 |
|
|
$ |
20.90 |
|
Tangible book value per common share (tangible common equity / shares outstanding) |
|
$ |
22.24 |
|
|
$ |
21.61 |
|
|
$ |
18.93 |
|
Equity ratio - GAAP (total stockholders' equity / total assets |
|
|
9.51 |
% |
|
|
9.71 |
% |
|
|
8.23 |
% |
Tangible common equity ratio (tangible common equity / tangible assets) |
|
|
8.81 |
% |
|
|
8.98 |
% |
|
|
7.51 |
% |
Tangible common equity ratio (bank only) (tangible common equity / tangible assets) |
|
|
10.60 |
% |
|
|
10.60 |
% |
|
|
10.04 |
% |
|
|
|
|
|
|
|
|
|
|
|||
|
|
For the three months ended: |
||||||||||
Efficiency Ratio: |
|
|
6/30/2024 |
|
|
3/31/2024 |
|
|
6/30/2023 |
|||
Noninterest expense |
|
$ |
22,692 |
|
|
$ |
24,526 |
|
|
$ |
22,968 |
|
Divided by: |
|
|
|
|
|
|
|
|
|
|||
Net interest income |
|
|
30,170 |
|
|
|
28,717 |
|
|
|
28,317 |
|
Tax-equivalent interest income adjustments |
|
|
423 |
|
|
|
529 |
|
|
|
729 |
|
Net interest income, adjusted |
|
|
30,593 |
|
|
|
29,246 |
|
|
|
29,046 |
|
Noninterest income |
|
|
7,630 |
|
|
|
8,589 |
|
|
|
8,013 |
|
Less (loss) gain on sale of securities |
|
|
- |
|
|
|
(2,883 |
) |
|
|
351 |
|
Less gain on sale of fixed assets |
|
|
- |
|
|
|
3,799 |
|
|
|
- |
|
Less realized gain (loss) on available-for-sale securities |
|
|
- |
|
|
|
66 |
|
|
|
- |
|
Tax-equivalent noninterest income adjustments |
|
|
139 |
|
|
|
323 |
|
|
|
175 |
|
Noninterest income, adjusted |
|
|
7,769 |
|
|
|
7,930 |
|
|
|
7,837 |
|
Net interest income plus noninterest income, adjusted |
|
$ |
38,362 |
|
|
$ |
37,176 |
|
|
$ |
36,883 |
|
Efficiency Ratio (tax-equivalent) |
|
|
59.15 |
% |
|
|
65.97 |
% |
|
|
62.27 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
NONINTEREST INCOME/EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
(Dollars in Thousands, Unaudited) |
|
|
|
|
|
|||||||||||||||
|
|
For the three months ended: |
|
For the six months ended June 30, |
||||||||||||||||
Noninterest income: |
|
6/30/2024 |
|
3/31/2024 |
|
6/30/2023 |
|
2024 |
|
|
2023 |
|
||||||||
Service charges and fees on deposit accounts |
|
$ |
6,184 |
|
|
$ |
5,726 |
|
|
$ |
5,691 |
|
|
$ |
11,909 |
|
|
$ |
11,071 |
|
(Loss) gain on sale of securities available-for-sale |
|
|
— |
|
|
|
(2,883 |
) |
|
|
351 |
|
|
|
(2,883 |
) |
|
|
396 |
|
Gain on sale of fixed assets |
|
|
— |
|
|
|
3,799 |
|
|
|
— |
|
|
|
3,799 |
|
|
|
— |
|
Bank-owned life insurance |
|
|
523 |
|
|
|
1,215 |
|
|
|
658 |
|
|
|
1,738 |
|
|
|
830 |
|
Other |
|
|
923 |
|
|
|
732 |
|
|
|
1,313 |
|
|
|
1,656 |
|
|
|
2,296 |
|
Total noninterest income |
|
$ |
7,630 |
|
|
$ |
8,589 |
|
|
$ |
8,013 |
|
|
$ |
16,219 |
|
|
$ |
14,593 |
|
As a % of average interest-earning assets (1) |
|
|
0.92 |
% |
|
|
1.06 |
% |
|
|
0.93 |
% |
|
|
0.99 |
% |
|
|
0.86 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Noninterest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Salaries and employee benefits |
|
$ |
12,029 |
|
|
$ |
13,197 |
|
|
$ |
12,129 |
|
|
$ |
25,226 |
|
|
$ |
24,944 |
|
Occupancy and equipment costs |
|
|
3,152 |
|
|
|
3,025 |
|
|
|
2,438 |
|
|
|
6,177 |
|
|
|
4,769 |
|
Advertising and marketing costs |
|
|
338 |
|
|
|
343 |
|
|
|
410 |
|
|
|
680 |
|
|
|
923 |
|
Data processing costs |
|
|
1,680 |
|
|
|
1,509 |
|
|
|
1,536 |
|
|
|
3,189 |
|
|
|
3,064 |
|
Deposit services costs |
|
|
2,019 |
|
|
|
2,133 |
|
|
|
2,532 |
|
|
|
4,152 |
|
|
|
4,555 |
|
Loan services costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Loan processing |
|
|
89 |
|
|
|
151 |
|
|
|
151 |
|
|
|
240 |
|
|
|
279 |
|
Foreclosed assets |
|
|
— |
|
|
|
— |
|
|
|
(33 |
) |
|
|
— |
|
|
|
725 |
|
Other operating costs |
|
|
1,094 |
|
|
|
926 |
|
|
|
1,490 |
|
|
|
2,021 |
|
|
|
2,479 |
|
Professional services costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Legal & accounting services |
|
|
714 |
|
|
|
715 |
|
|
|
483 |
|
|
|
1,240 |
|
|
|
1,129 |
|
Director's costs |
|
|
646 |
|
|
|
1,254 |
|
|
|
725 |
|
|
|
1,899 |
|
|
|
308 |
|
Other professional service |
|
|
582 |
|
|
|
809 |
|
|
|
832 |
|
|
|
1,582 |
|
|
|
2,039 |
|
Stationery & supply costs |
|
|
115 |
|
|
|
148 |
|
|
|
125 |
|
|
|
263 |
|
|
|
265 |
|
Sundry & tellers |
|
|
234 |
|
|
|
316 |
|
|
|
150 |
|
|
|
549 |
|
|
|
481 |
|
Total noninterest expense |
|
$ |
22,692 |
|
|
$ |
24,526 |
|
|
$ |
22,968 |
|
|
$ |
47,218 |
|
|
$ |
45,960 |
|
As a % of average interest-earning assets (1) |
|
|
2.74 |
% |
|
|
3.04 |
% |
|
|
2.68 |
% |
|
|
2.89 |
% |
|
|
2.72 |
% |
Efficiency ratio (tax-equivalent) (2)(3) |
|
|
59.15 |
% |
|
|
65.97 |
% |
|
|
62.27 |
% |
|
|
62.45 |
% |
|
|
63.53 |
% |
(1) |
Annualized |
(2) |
Computed on a tax equivalent basis utilizing a federal income tax rate of |
(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 |
|||||||||||||||
|
|
June 30, 2024 |
|
March 31, 2024 |
|
June 30, 2023 |
|||||||||||||||
|
|
Average
|
Income/
|
Yield/
|
|
Average
|
Income/
|
Yield/ Rate (2) |
|
Average
|
Income/
|
Yield/
|
|||||||||
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Federal funds sold/interest-earning due from accounts |
|
$ |
43,407 |
$ |
598 |
5.54 |
% |
|
$ |
16,996 |
$ |
243 |
5.75 |
% |
|
$ |
35,236 |
$ |
376 |
4.28 |
% |
Taxable |
|
|
866,270 |
|
12,787 |
5.94 |
% |
|
|
893,171 |
|
13,303 |
5.99 |
% |
|
|
996,117 |
|
13,488 |
5.43 |
% |
Non-taxable |
|
|
199,942 |
|
1,592 |
4.05 |
% |
|
|
244,997 |
|
1,989 |
4.13 |
% |
|
|
352,718 |
|
2,741 |
3.95 |
% |
Total investments |
|
|
1,109,619 |
|
14,977 |
5.58 |
% |
|
|
1,155,164 |
|
15,535 |
5.59 |
% |
|
|
1,384,071 |
|
16,605 |
5.02 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Loans: (3) |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Real estate |
|
|
1,802,190 |
|
20,463 |
4.57 |
% |
|
|
1,806,185 |
|
20,190 |
4.50 |
% |
|
|
1,858,512 |
|
20,827 |
4.49 |
% |
Agricultural production |
|
|
75,825 |
|
1,406 |
7.46 |
% |
|
|
61,419 |
|
1,138 |
7.45 |
% |
|
|
28,472 |
|
496 |
6.99 |
% |
Commercial |
|
|
77,224 |
|
1,174 |
6.11 |
% |
|
|
79,208 |
|
1,183 |
6.01 |
% |
|
|
82,743 |
|
1,179 |
5.72 |
% |
Consumer |
|
|
3,698 |
|
79 |
8.59 |
% |
|
|
3,962 |
|
80 |
8.12 |
% |
|
|
4,339 |
|
88 |
8.13 |
% |
Mortgage warehouse lines |
|
|
261,768 |
|
5,382 |
8.27 |
% |
|
|
137,421 |
|
2,821 |
8.26 |
% |
|
|
78,187 |
|
1,658 |
8.51 |
% |
Other |
|
|
2,291 |
|
14 |
2.46 |
% |
|
|
2,333 |
|
14 |
2.41 |
% |
|
|
2,483 |
|
22 |
3.55 |
% |
Total loans |
|
|
2,222,996 |
|
28,518 |
5.16 |
% |
|
|
2,090,528 |
|
25,426 |
4.89 |
% |
|
|
2,054,736 |
|
24,270 |
4.74 |
% |
Total interest-earning assets (4) |
|
|
3,332,615 |
|
43,495 |
5.30 |
% |
|
|
3,245,692 |
|
40,961 |
5.14 |
% |
|
|
3,438,807 |
|
40,875 |
4.85 |
% |
Other earning assets |
|
|
17,058 |
|
|
|
|
17,345 |
|
|
|
|
16,952 |
|
|
||||||
Non-earning assets |
|
|
286,020 |
|
|
|
|
270,786 |
|
|
|
|
267,433 |
|
|
||||||
Total assets |
|
$ |
3,635,693 |
|
|
|
$ |
3,533,823 |
|
|
|
$ |
3,723,192 |
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Liabilities and shareholders' equity |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Interest-bearing deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Demand deposits |
|
$ |
131,510 |
$ |
733 |
2.24 |
% |
|
$ |
137,961 |
$ |
699 |
2.04 |
% |
|
$ |
144,156 |
$ |
190 |
0.53 |
% |
NOW |
|
|
398,001 |
|
148 |
0.15 |
% |
|
|
398,639 |
|
84 |
0.08 |
% |
|
|
454,395 |
|
76 |
0.07 |
% |
Savings accounts |
|
|
371,961 |
|
80 |
0.09 |
% |
|
|
376,335 |
|
73 |
0.08 |
% |
|
|
428,222 |
|
62 |
0.06 |
% |
Money market |
|
|
139,507 |
|
476 |
1.37 |
% |
|
|
137,687 |
|
410 |
1.20 |
% |
|
|
123,571 |
|
72 |
0.23 |
% |
Time deposits |
|
|
563,526 |
|
6,051 |
4.32 |
% |
|
|
561,941 |
|
6,190 |
4.43 |
% |
|
|
540,540 |
|
6,022 |
4.47 |
% |
Wholesale brokered deposits |
|
|
307,995 |
|
3,544 |
4.63 |
% |
|
|
205,092 |
|
2,189 |
4.29 |
% |
|
|
178,728 |
|
1,521 |
3.41 |
% |
Total interest-bearing deposits |
|
|
1,912,500 |
|
11,032 |
2.32 |
% |
|
|
1,817,655 |
|
9,645 |
2.13 |
% |
|
|
1,869,612 |
|
7,943 |
1.70 |
% |
Borrowed funds: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Repurchase agreements |
|
|
131,478 |
|
66 |
0.20 |
% |
|
|
112,385 |
|
41 |
0.15 |
% |
|
|
79,694 |
|
65 |
0.33 |
% |
Other borrowings |
|
|
98,731 |
|
1,042 |
4.24 |
% |
|
|
119,475 |
|
1,372 |
4.62 |
% |
|
|
279,633 |
|
3,430 |
4.92 |
% |
Long-term debt |
|
|
49,335 |
|
430 |
3.51 |
% |
|
|
49,312 |
|
431 |
3.52 |
% |
|
|
49,247 |
|
429 |
3.49 |
% |
Subordinated debentures |
|
|
35,723 |
|
755 |
8.50 |
% |
|
|
35,677 |
|
755 |
8.51 |
% |
|
|
35,547 |
|
691 |
7.80 |
% |
Total borrowed funds |
|
|
315,267 |
|
2,293 |
2.93 |
% |
|
|
316,849 |
|
2,599 |
3.30 |
% |
|
|
444,121 |
|
4,615 |
4.17 |
% |
Total interest-bearing liabilities |
|
|
2,227,767 |
|
13,325 |
2.41 |
% |
|
|
2,134,504 |
|
12,244 |
2.31 |
% |
|
|
2,313,733 |
|
12,558 |
2.18 |
% |
Demand deposits - noninterest-bearing |
|
|
978,602 |
|
|
|
|
990,377 |
|
|
|
|
1,050,668 |
|
|
||||||
Other liabilities |
|
|
83,886 |
|
|
|
|
70,534 |
|
|
|
|
54,139 |
|
|
||||||
Shareholders' equity |
|
|
345,438 |
|
|
|
|
338,408 |
|
|
|
|
304,652 |
|
|
||||||
Total liabilities and shareholders' equity |
|
$ |
3,635,693 |
|
|
|
$ |
3,533,823 |
|
|
|
$ |
3,723,192 |
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Interest income/interest-earning assets |
|
|
|
5.30 |
% |
|
|
|
5.14 |
% |
|
|
|
4.85 |
% |
||||||
Interest expense/interest-earning assets |
|
|
|
1.61 |
% |
|
|
|
1.52 |
% |
|
|
|
1.46 |
% |
||||||
Net interest income and margin (5) |
|
|
$ |
30,170 |
3.69 |
% |
|
|
$ |
28,717 |
3.62 |
% |
|
|
$ |
28,317 |
3.39 |
% |
|||
|
|||||||||||||||||||||
(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 |
(3) |
Loans are gross of the allowance for possible loan losses. Loan fees have been included in the calculation of interest income. Net loan fees and loan acquisition FMV amortization were |
(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. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
AVERAGE BALANCES AND RATES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
(Dollars in Thousands, Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
For the six months ended |
|
|
For the six months ended |
|||||||||||||
|
|
June 30, 2024 |
|
|
June 30, 2023 |
|||||||||||||
|
|
Average
|
|
Income/
|
|
Yield/
|
|
Average
|
|
Income/
|
|
Yield/
|
||||||
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Interest-earning due from banks |
|
$ |
30,202 |
|
$ |
839 |
|
5.57 |
% |
|
$ |
20,357 |
|
$ |
446 |
|
4.42 |
% |
Taxable |
|
|
879,720 |
|
|
26,090 |
|
5.95 |
% |
|
|
984,150 |
|
|
25,472 |
|
5.22 |
% |
Non-taxable |
|
|
222,469 |
|
|
3,581 |
|
4.09 |
% |
|
|
356,999 |
|
|
5,555 |
|
3.97 |
% |
Total investments |
|
|
1,132,391 |
|
|
30,510 |
|
5.57 |
% |
|
|
1,361,506 |
|
|
31,473 |
|
4.88 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Loans:(3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Real estate |
|
$ |
1,804,187 |
|
$ |
40,653 |
|
4.53 |
% |
|
$ |
1,863,783 |
|
$ |
40,726 |
|
4.41 |
% |
Agricultural |
|
|
68,622 |
|
|
2,544 |
|
7.46 |
% |
|
|
28,251 |
|
|
929 |
|
6.63 |
% |
Commercial |
|
|
78,216 |
|
|
2,357 |
|
6.06 |
% |
|
|
76,848 |
|
|
2,172 |
|
5.70 |
% |
Consumer |
|
|
3,830 |
|
|
160 |
|
8.40 |
% |
|
|
4,239 |
|
|
176 |
|
8.37 |
% |
Mortgage warehouse lines |
|
|
199,595 |
|
|
8,203 |
|
8.26 |
% |
|
|
68,707 |
|
|
2,776 |
|
8.15 |
% |
Other |
|
|
2,312 |
|
|
28 |
|
2.44 |
% |
|
|
2,474 |
|
|
42 |
|
3.42 |
% |
Total loans |
|
|
2,156,762 |
|
|
53,945 |
|
5.03 |
% |
|
|
2,044,302 |
|
|
46,821 |
|
4.62 |
% |
Total interest-earning assets (4) |
|
|
3,289,153 |
|
|
84,455 |
|
5.22 |
% |
|
|
3,405,808 |
|
|
78,294 |
|
4.72 |
% |
Other earning assets |
|
|
17,202 |
|
|
|
|
|
|
|
16,336 |
|
|
|
|
|
||
Non-earning assets |
|
|
278,403 |
|
|
|
|
|
|
|
269,950 |
|
|
|
|
|
||
Total assets |
|
$ |
3,584,758 |
|
|
|
|
|
|
$ |
3,692,094 |
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Liabilities and shareholders' equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Interest-bearing deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Demand deposits |
|
$ |
134,736 |
|
$ |
1,431 |
|
2.14 |
% |
|
$ |
147,131 |
|
$ |
319 |
|
0.44 |
% |
NOW |
|
|
398,320 |
|
|
232 |
|
0.12 |
% |
|
|
468,939 |
|
|
147 |
|
0.06 |
% |
Savings accounts |
|
|
374,148 |
|
|
153 |
|
0.08 |
% |
|
|
442,826 |
|
|
127 |
|
0.06 |
% |
Money market |
|
|
138,597 |
|
|
886 |
|
1.29 |
% |
|
|
129,470 |
|
|
96 |
|
0.15 |
% |
Time deposits |
|
|
562,733 |
|
|
12,241 |
|
4.37 |
% |
|
|
501,096 |
|
|
10,528 |
|
4.24 |
% |
Brokered deposits |
|
|
256,543 |
|
|
5,733 |
|
4.49 |
% |
|
|
170,688 |
|
|
2,726 |
|
3.22 |
% |
Total interest-bearing deposits |
|
|
1,865,077 |
|
|
20,676 |
|
2.23 |
% |
|
|
1,860,150 |
|
|
13,943 |
|
1.51 |
% |
Borrowed funds: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Repurchase agreements |
121,932 |
|
|
106 |
|
0.17 |
% |
|
91,495 |
|
|
146 |
|
0.08 |
% |
|||
Other borrowings |
|
|
109,103 |
|
|
2,415 |
|
4.45 |
% |
|
|
228,463 |
|
|
5,541 |
|
4.89 |
% |
Long-term debt |
|
|
49,324 |
|
|
861 |
|
3.51 |
% |
|
|
49,235 |
|
|
857 |
|
3.51 |
% |
Subordinated debentures |
|
|
35,700 |
|
|
1,510 |
|
8.51 |
% |
|
|
35,523 |
|
|
1,358 |
|
7.71 |
% |
Total borrowed funds |
|
|
316,059 |
|
|
4,892 |
|
3.11 |
% |
|
|
404,716 |
|
|
7,902 |
|
5.09 |
% |
Total interest-bearing liabilities |
|
|
2,181,136 |
|
|
25,568 |
|
2.36 |
% |
|
|
2,264,866 |
|
|
21,845 |
|
1.95 |
% |
Demand deposits - noninterest-bearing |
|
|
984,489 |
|
|
|
|
|
|
|
1,060,666 |
|
|
|
|
|
||
Other liabilities |
|
|
77,210 |
|
|
|
|
|
|
|
60,351 |
|
|
|
|
|
||
Shareholders' equity |
|
|
341,923 |
|
|
|
|
|
|
|
306,211 |
|
|
|
|
|
||
Total liabilities and shareholders' equity |
|
$ |
3,584,758 |
|
|
|
|
|
|
$ |
3,692,094 |
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Interest income/interest-earning assets |
|
|
|
|
|
|
|
5.22 |
% |
|
|
|
|
|
|
|
4.72 |
% |
Interest expense/interest-earning assets |
|
|
|
|
|
|
|
1.56 |
% |
|
|
|
|
|
|
|
1.29 |
% |
Net interest income and margin(5) |
|
|
|
|
$ |
58,887 |
|
3.66 |
% |
|
|
|
|
$ |
56,449 |
|
3.43 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
(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 |
(3) |
Loans are gross of the allowance for possible loan losses. Loan fees have been included in the calculation of interest income. Net loan fees and loan acquisition FMV amortization were |
(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/20240722244259/en/
Kevin McPhaill, President/CEO
(559) 782‑4900 or (888) 454‑BANK
www.sierrabancorp.com
Source: Sierra Bancorp
FAQ
What were Sierra Bancorp's earnings for Q2 2024?
How did Sierra Bancorp's asset quality change in Q2 2024?
What is Sierra Bancorp's current dividend for Q2 2024?
How much did Sierra Bancorp's total assets grow in Q2 2024?
What was the increase in Sierra Bancorp's net interest income for Q2 2024?
What were Sierra Bancorp's Return on Average Assets and Return on Average Equity in Q2 2024?
Did Sierra Bancorp repurchase any shares in Q2 2024?
