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SIERRA BANCORP AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
72
3.
SECURITIES AVAILABLE-FOR-SALE (Continued)
At December 31, 2015 and 2014, the Company had 175 and 134 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
$ (62) $ 10,329
$ - $ -
Mortgage-backed securities
(1,608)
187,734
(454)
35,511
State and political subdivisions
(17)
3,409
(39)
3,847
Equity securities
-
-
-
-
Total
(1,687)
$
201,472
$
(493)
$
39,358
$
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
$
December 31, 2015
Less than twelve months
Twelve months or longer
Gross
Unrealized
Losses
Fair Value
Gross
Unrealized
Losses
Fair Value
December 31, 2014
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, 2015 the Company realized gains through earnings from the sale of 49 debt securities for
$388,000 and two equity positions for $506,000. The securities were sold with 42 other debt securities, for
which a $228,000 loss was realized, to improve the structure in the portfolio while reducing administrative
costs. During the year ended December 31, 2014, the Company realized gains of $739,000 and losses of
$72,000 from the sale of 66 debt securities and one equity position 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, 2015 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.