SIERRA BANCORP AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
91
7.
OTHER ASSETS
Other assets consisted of the following (dollars in thousands):
2014
2013
Accrued interest receivable
5,852
$
4,990
$
Deferred taxassets
12,810
12,286
Prepaid taxes
-
2,787
Investment in limited partnerships
7,276
9,204
Federal Home Loan Bank stock, at cost
6,631
5,581
Other
4,912
5,613
37,481
$
40,461
$
December 31,
The Company has invested in limited partnerships that operate qualified affordable housing projects to
receive tax benefits in the form of tax deductions from operating losses and tax credits. The Company
accounts for these investments under the cost method and management analyzes these investments
annually for potential impairment. The Company had no remaining capital commitments to these
partnerships at December 31, 2014.
The Company holds certain equity investments that are not readily marketable securities and thus are
classified as “other assets” on the Company’s balance sheet. These include investments in Pacific Coast
Bankers Bancshares, California Economic Development Lending Initiative, and the Federal Home Loan
Bank (“FHLB”). The largest of these is the Company’s $6,631,000 investment in FHLB stock, carried at
cost. Quarterly, the FHLB evaluates and adjusts the Company’s minimum stock requirement based on the
Company’s borrowing activity and membership requirements. Any stock deemed in excess is
automatically repurchased by the FHLB at cost.
