SIERRA BANCORP AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
71
3.
SECURITIES AVAILABLE-FOR-SALE (Continued)
At December 31, 2014 and 2013, the Company had 134 and 197 securities with unrealized gross losses,
respectively. Information pertaining to these securities aggregated by investment category and length of
time that individual securities have been in a continuous loss position, follows (dollars in thousands):
US Government Agencies
$ (23) $ 3,485
$ - $ -
Mortgage-backed securities
(564)
84,004
(632)
51,982
State and political subdivisions
(31)
7,738
(169)
9,045
Equity securities
-
-
-
-
Total
(618)
$
95,227
$
(801)
$
61,027
$
US Government Agencies
$ (92) $ 1,913 $ (17) $ 1,920
Mortgage-backed securities
(642)
21,747
(2,129)
124,317
State and political subdivisions
(461)
6,799
(2,060)
38,083
Equity securities
-
-
-
-
Total
(1,195)
$
30,459
$
(4,206)
$
164,320
$
December 31, 2014
Less than twelve months
Twelve months or longer
Gross
Unrealized
Losses
Fair Value
Gross
Unrealized
Losses
Fair Value
December 31, 2013
Less than twelve months
Twelve months or longer
Gross
Unrealized
Losses
Fair Value
Gross
Unrealized
Losses
Fair Value
The Company has reviewed all sectors and securities in the portfolio for impairment. During the year
ended December 31, 2014 the Company realized gains through earnings from the sale of 59 debt securities
for $502,000 and one equity position for $238,000. The securities were sold with seven other debt
securities, for which a $72 thousand loss was realized, to manage the various risks in the portfolio.
During the year ended December 31, 2013, the Company realized slight gains and no losses from the sale
of three debt securities which were sold to improve the credit quality of the portfolio by minimizing
securities on our Municipal Bond Watch List.
The Company has concluded as of December 31, 2014 that all remaining securities, currently in an
unrealized loss position, are not other-than-temporarily-impaired.
This assessment was based on the
following factors: 1) the Company has the ability to hold the security, 2) the Company does not intend to
sell the security, 3) the Company does not anticipate it will be required to sell the security before recovery,
4) and the Company expects to eventually recover the entire amortized cost basis of the security.
