117 / 146
SIERRA BANCORP AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
101
13.
SHAREHOLDERS’ EQUITY
Share Repurchase Plan
At December 31, 2015, the Company had a stock repurchase plan which has no expiration date. During the
year ended December 31, 2015, the Company repurchased 472,333 shares. The total number of shares
available for repurchase at December 31, 2015 was 104,319. 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:
2015
2014
2013
Basic Earnings Per Share
Net income (dollars in thousands)
$ 18,067 $ 15,240 $ 13,369
Weighted average shares outstanding 13,460,605 14,001,958 14,155,927
Basic earnings per share
$ 1.34 $ 1.09 $ 0.94
Diluted Earnings Per Share
Net income (dollars in thousands)
$ 18,067 $ 15,240 $ 13,369
Weighted average shares outstanding 13,460,605 14,001,958 14,155,927
Effect of dilutive stock options
124,505 134,528 134,223
Weighted average shares outstanding 13,585,110 14,136,486 14,290,150
Diluted earnings per share
$ 1.33 $ 1.08 $ 0.94
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, 2015, options granted under the 1998 Plan covering 44,300 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.