SIERRA BANCORP AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
99
13.
SHAREHOLDERS’ EQUITY
Share Repurchase Plan
At December 31, 2014, the Company had a stock repurchase plan which has no expiration date. During
the year ended December 31, 2014, the Company repurchased 623,348 shares. The total number of
shares available for repurchase at December 31, 2014 was 76,652. Repurchases are generally made in the
open market at market prices.
Earnings Per Share
A reconciliation of the numerators and denominators of the basic and diluted earnings per share
computations is as follows:
2014
2013
2012
Basic Earnings Per Share
Net income (dollars in thousands)
$ 15,240 $ 13,369 $ 8,185
Weighted average shares outstanding 14,001,958 14,155,927 14,103,805
Basic earnings per share
$ 1.09 $ 0.94 $ 0.58
Diluted Earnings Per Share
Net income (dollars in thousands)
$ 15,240 $ 13,369 $ 8,185
Weighted average shares outstanding 14,001,958 14,155,927 14,103,805
Effect of dilutive stock options
134,528 134,223 16,508
Weighted average shares outstanding 14,136,486 14,290,150 14,120,313
Diluted earnings per share
$ 1.08 $ 0.94 $ 0.58
For the Years Ended December 31,
Stock Options
In June 1998, Bank of the Sierra adopted the 1998 Stock Option Plan (the “1998 Plan”) for which shares
were reserved for issuance to employees and directors under incentive and non-statutory agreements. The
1998 Plan was assumed by the Company effective August 10, 2001. Effective May 23, 2007, the 1998
Plan was terminated and no further options may be granted thereunder, but options granted under the 1998
Plan which were outstanding as of the termination date were not affected by this termination. As of
December 31, 2014, options granted under the 1998 Plan covering 112,000 shares were still outstanding.
On March 15, 2007 the Board of Directors approved and adopted the Company’s 2007 Stock Incentive
Plan (the “2007 Plan”), which was approved by the Company’s shareholders on May 23, 2007. The 2007
Plan provides for the issuance of both “incentive” and “nonqualified” stock options to officers and
employees, and of “nonqualified” stock options to non-employee directors, of the Company and its
subsidiaries. The 2007 Plan also provides for the issuance of restricted stock awards to these same classes
of eligible participants, which awards may be granted on such terms and conditions as are established by
the Board of Directors or the Compensation Committee in its discretion. We have not issued, nor do we
currently have plans to issue, restricted stock awards.
