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SIERRA BANCORP AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
118
22. QUALIFIED AFFORDABLE HOUSING PROJECT INVESTMENTS
T
he Company invests in qualified affordable housing projects. At December 31, 2015 and 2014, the balance
of the investment for qualified affordable housing projects totaled $4,900,000 and $5,800,000, respectively.
These balances are reflected in the other assets line on the consolidated balance sheet. There were no
unfunded commitments related to these investments in qualified affordable housing projects at December
31, 2015 and 2014.
During the year ended December 31, 2015 and 2014, the Company recognized amortization expense of
$900,000 and $1,200,000, respectively, which was included within pretax income on the consolidated
statements of income.
Additionally, during the years ended December 31, 2015 and 2014, the Company recognized tax credits and
other benefits from its investment in affordable housing tax credits of $770,000 and $1,000,000,
respectively. The Company had no impairment losses during the years ended December 31, 2015 and 2014.
23. SUBSEQUENT EVENT
In January 2016 the Company entered into a definitive agreement to acquire Coast Bancorp, the holding
company for Coast National Bank, which as of December 31, 2015 had $145,000,000 in total assets,
$94,000,000 in loans, $24,000,000 in investment securities, and $127,000,000 in deposits. Coast maintains
offices in San Luis Obispo, Paso Robles, Arroyo Grande, and Atascadero, California. We expect the
transaction to be completed in the second quarter of 2016, subject to customary closing conditions including
the receipt of required regulatory approvals and the consent of Coast Bancorp shareholders. One-time
acquisition costs are expected to add roughly $3,200,000 to the Company’s pre-tax non-interest expense in
2016. Also announced in January 2016 was the Company’s agreement to acquire the Porterville branch of
Citizens Business Bank, including approximately $22,000,000 in deposits and $1,000,000 in loans which
we plan to consolidate into our Porterville Main office. Pending regulatory approval, that transaction is also
scheduled for completion in the second quarter of 2016
.