Sierra Bancorp Annual Report and 10-K 2014 - page 11

$_; olr-m‹Ľv -vv;|v |o|-Ѵ;7 ŪƐĺѵƒƕ 0bѴѴbom -| ;1;l0;u ƒƐķ
ƑƏƐƓķ -m bm1u;-v; o= ŪƑƑƕ lbѴѴbomķ ou Ɛѵѷķ u;Ѵ-ঞˆ; |o |o|-Ѵ
-vv;|v o= ŪƐĺƓƐƏ 0bѴѴbom -| ;1;l0;u ƒƐķ ƑƏƐƒ 7†; |o _b]_;u
Ѵo-m 0-Ѵ-m1;v -m7 ]uo‰|_ bm bmˆ;v|l;m|vķ r-uঞ-ѴѴ‹ o@v;|
0‹ u;7†1ঞomv bm =ou;1Ѵov;7 -vv;|vķ 0-Ѵ-m1;v 7†; =uol |_;
;7;u-Ѵ !;v;uˆ; -mhķ -m7 1-v_ĺ $o|-Ѵ Ѵb-0bѴbঞ;v ‰;u; ŪƐĺƓƔƏ
billion at the end of 2014 compared to $1.229 billion at the
;m7 o= ƑƏƐƒķ -m7 v_-u;_oѴ7;uvĽ ;t†b|‹ |o|-Ѵ;7 ŪƐѶƕ lbѴѴbom -|
;1;l0;u ƒƐķ ƑƏƐƓ u;Ѵ-ঞˆ; |o ŪƐѶƑ lbѴѴbom -| ;1;l0;u ƒƐķ
ƑƏƐƒĺ $_; -1t†bvbঞom o= "-m|- Ѵ-u- (-ѴѴ;‹ -mh bm oˆ;l-
0;u ƑƏƐƓ _-7 - vb]mbC1-m| blr-1| om 0-Ѵ-m1; v_;;| ]uo‰|_
=ou |_; ‹;-uķ bm1Ѵ†7bm] bm1u;-v;v bm Ѵo-mvķ bmˆ;v|l;m|vķ -m7
7;rovb|vķ -v ‰;ѴѴ -v |_; -77bঞom o= - ŪƐĺƏѵƓ lbѴѴbom 1ou;
7;rovb| bm|-m]b0Ѵ; -m7 -m bm1u;-v; o= ŪƐĺƒѵƓ lbѴѴbom bm ]oo7-
‰bѴѴĺ $_; =oѴѴo‰bm] r-u-]u-r_v v†ll-ubŒ; h;‹ 0-Ѵ-m1; v_;;|
1_-m];v 7†ubm] ƑƏƐƓĺ
uovv Ѵo-mv -m7 Ѵ;-v;v ‰;u; †r ŪƐѵƕ lbѴѴbomķ ou ƑƐѷķ ;m7bm]
ƑƏƐƓ ‰b|_ - 0-Ѵ-m1; o= ŪƖƕƐ lbѴѴbomĺ o-m ]uo‰|_ ‰-v
favorably impacted by the purchase of $33 million in resi-
7;mঞ-Ѵ lou|]-]; Ѵo-mvķ v|uom] ou]-mb1 ]uo‰|_ bm -]ub1†Ѵ|†u-Ѵ
u;-Ѵ ;v|-|; Ѵo-mvķ lou|]-]; ‰-u;_o†v; Ѵo-mvķ 1oll;u1b-Ѵ
u;-Ѵ ;v|-|; Ѵo-mvķ -m7 1oll;u1b-Ѵ Ѵo-mvķ -m7 ŪѵƑ lbѴѴbom bm
Ѵo-mv =uol o†u -1t†bvbঞom o= " ( ĺ uo‰|_ bm r;u=oulbm]
Ѵo-m 0-Ѵ-m1;v bm ƑƏƐƓ ‰-v r-uঞ-ѴѴ‹ o@v;| 0‹ - ŪƐƕ lbѴѴbom
u;7†1ঞom bm momr;u=oulbm] Ѵo-mvĺ m ƑƏƐƒķ Ѵo-m ˆoѴ†l; ‰-v
m;]-ঞˆ;Ѵ‹ blr-1|;7 0‹ - ŪƖƕ lbѴѴbom 7;1Ѵbm; bm lou|]-];
‰-u;_o†v; Ѵo-mv u;v†Ѵঞm] =uol Ѵo‰;u 1u;7b| Ѵbm; †ঞѴbŒ-ঞomķ
-m7 - ŪƐѵ lbѴѴbom u;7†1ঞom bm momr;u=oulbm] Ѵo-mvĺ
omr;u=oulbm]-vv;|v;m7;7ƑƏƐƓ-|ŪƑƔlbѴѴbomķu;ru;v;mঞm]
- u;7†1ঞom o= ŪƑƐ lbѴѴbomķ ou Ɠѵѷķ =ou |_; ‹;-uĺ $_; m;|
7;1Ѵbm; 7†ubm] ƑƏƐƓ bv 1olrubv;7 o= - ŪƐƕ lbѴѴbom u;7†1ঞom
bm Ѵo-mv om momŊ-11u†-Ѵ v|-|†v -m7 - ŪƓ lbѴѴbom u;7†1ঞom bm
=ou;1Ѵov;7 -vv;|vĺ $_; olr-m‹Ľv u-ঞo o= momr;u=oulbm]
-vv;|v |o Ѵo-mv rѴ†v =ou;1Ѵov;7 -vv;|v =;ѴѴ |o ƑĺƔƒѷ -|
;1;l0;u ƒƐķ ƑƏƐƓķ =uol ƔĺѵƑѷ -| ;1;l0;u ƒƐķ ƑƏƐƒĺ
Our allowance for loan and lease losses totaled $11.2 million
-v o= ;1;l0;u ƒƐķ ƑƏƐƓķ - 7;1Ѵbm; o= ŪƓƑƖķƏƏƏķ ou Ɠѷķ
u;Ѵ-ঞˆ; |o ‹;-uŊ;m7 ƑƏƐƒĺ $_; 7uor 7†ubm] ƑƏƐƓ ‰-v 7†; |o
Ѵo‰;u ];m;u-Ѵ u;v;uˆ;v om r;u=oulbm] Ѵo-mvķ 1omvbv|;m| ‰b|_
blruoˆ;l;m| bm -vv;| t†-Ѵb|‹ĺ $_; -ѴѴo‰-m1; =;ѴѴ |o ƐĺƐѵѷ o=
|o|-Ѵ Ѵo-mv -| ;1;l0;u ƒƐķ ƑƏƐƓ =uol ƐĺƓƔѷ o= |o|-Ѵ Ѵo-mv
-| ;1;l0;u ƒƐķ ƑƏƐƒ 7†; |o 1u;7b| t†-Ѵb|‹ blruoˆ;l;m| bm
|_; ;Šbvঞm] rouoѴboķ ub]ouo†v †m7;u‰ubঞm] v|-m7-u7v =ou
m;‰Ѵ‹Ŋoub]bm-|;7 Ѵo-mvķ -m7 |_; =-1| |_-| " ( Ѵo-mv ‰;u;
recorded on our books at their fair values.
$_; olr-m‹Ľv bmˆ;v|l;m| v;1†ubঞ;v |o|-Ѵ;7 ŪƔƐƑ lbѴѴbom
-| ‹;-uŊ;m7ķ u;Y;1ঞm] -m bm1u;-v; o= ŪѶƕ lbѴѴbomķ ou ƑƏѷķ
7†ubm] ƑƏƐƓ 7†; |o ŪƓƓ lbѴѴbom bm 0om7v -77;7 ˆb- |_;
"-m|- Ѵ-u- (-ѴѴ;‹ -mh -1t†bvbঞom -m7 |_; r†u1_-v; o=
lou|]-];Ŋ0-1h;7 v;1†ubঞ;v -v ‰; 7;rѴo‹;7 ;Š1;vv Ѵbt†b7b|‹ĺ
The Company carries investments on its books at their fair
l-uh;| ˆ-Ѵ†;vĺ Ѵ|_o†]_ |_; olr-m‹ 1†uu;m|Ѵ‹ _-v |_; bm-
|;m| -m7 |_; -0bѴb|‹ |o _oѴ7 |_; v;1†ubঞ;v bm b|v bmˆ;v|l;m|
rouoѴbo |o l-|†ub|‹ķ |_; v;1†ubঞ;v -u; -ѴѴ l-uh;|-0Ѵ; -m7 -u;
1Ѵ-vvbC;7 -v ľ-ˆ-bѴ-0Ѵ; =ou v-Ѵ;Ŀ |o -ѴѴo‰ l-Šbl†l Y;Šb0bѴb|‹
‰b|_ u;]-u7 |o bm|;u;v| u-|; ubvh -m7 Ѵbt†b7b|‹ l-m-];l;m|ĺ
$o|-Ѵ 7;rovb|v ‰;u; ŪƐĺƒѵƕ 0bѴѴbom -| ;1;l0;u ƒƐķ ƑƏƐƓĺ
$_;‹ u;Y;1| -m bm1u;-v; o= ŪƐƖƒ lbѴѴbomķ ou Ɛѵѷķ 7†ubm] |_;
‹;-uķ bm1Ѵ†7bm] ŪƐƏѶ lbѴѴbom bm 7;rovb|v =uol |_; -1t†bvbঞom
o= " ( -m7 v|uom] ou]-mb1 ]uo‰|_ bm 1ou; momŊl-|†ub|‹
7;rovb|vĺ $o|-Ѵ 1-rb|-Ѵ bm1u;-v;7 0‹ ŪƔ lbѴѴbomķ ou ƒѷķ |o ŪƐѶƕ
lbѴѴbom -| ;1;l0;u ƒƐķ ƑƏƐƓĺ ;vrb|; |_; _b]_;u Ѵ;ˆ;Ѵ o=
1-rb|-Ѵķ ubvhŊ0-v;7 1-rb|-Ѵ u-ঞov 7;1Ѵbm;7 -v 1-rb|-Ѵ ‰-v Ѵ;ˆ;u-
-];7 7†ubm] |_; ‹;-u |o -1t†bu; " ( -m7 ]uo‰ ubvhŊ-7f†v|;7
-vv;|vĺ | ;1;l0;u ƒƐķ ƑƏƐƓķ |_; 1omvoѴb7-|;7 olr-m‹Ľv
$o|-Ѵ !bvhŊ -v;7 -rb|-Ѵ !-ঞo ‰-v ƐѶĺƓƓѷķ b|v $b;u m; !bvhŊ
-v;7 -rb|-Ѵ !-ঞo ‰-v ƐƕĺƒƖѷķ -m7 b|v $b;u m; ;ˆ;u-];
!-ঞo ‰-v ƐƑĺƖƖѷĺ
FINANCIAL CONDITION*
11 ;l0;u Ň t†-Ѵ o†vbm] ;m7;u Ŗ olrѴ;|; Cm-m1b-Ѵ bm=oul-ঞom bv 1om|-bm;7 bm |_; olr-m‹Ľv oul ƐƏŊ bm1Ѵ†7;7 _;u;‰b|_