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SIERRA BANCORP AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
93
7.
OTHER ASSETS
Other assets consisted of the following (dollars in thousands):
2015
2014
Accrued interest receivable
5,808
$
5,852
$
Deferred taxassets
12,283
12,810
Investment in limited partnerships
6,217
7,276
Federal Home Loan Bank stock, at cost
7,135
6,631
Other
7,126
4,912
38,569
$
37,481
$
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, 2015.
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 $7,135,000 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.