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SIERRA BANCORP AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
78
4.
LOANS AND LEASES
(Continued)
Loans may or may not be collateralized, and collection efforts are continuously pursued. Loans or leases
may be restructured by management when a borrower has experienced some change in financial status
causing an inability to meet the original repayment terms and where the Company believes the borrower
will eventually overcome those circumstances and make full restitution. Loans and leases are charged off
when they are deemed to be uncollectible, while recoveries are generally recorded only when cash payments
are received subsequent to the charge-off.
The following tables present the activity in the allowance for loan losses and the recorded investment in
loans and impairment method by portfolio segment for each of the years ending December 31, 2015, 2014,
and 2013 (dollars in thousands):
Allowance for credit losses:
Balance, December 31, 2012
8,034
$
258
$
3,467
$
2,114
$
-
$
13,873
$
Charge-offs
(4,205)
(473)
(1,668)
(1,917)
-
(8,263)
Recoveries
618
-
802
297
-
1,717
Provision
1,097
1,193
1,186
623
251
4,350
Balance, December 31, 2013
5,544
978
3,787
1,117
251
11,677
Charge-offs
(1,629)
(124)
(625)
(1,837)
-
(4,215)
Recoveries
1,913
6
801
716
-
3,436
Provision
415
126
(2,019)
1,769
59
350
Balance, December 31, 2014
6,243
986
1,944
1,765
310
11,248
Charge-offs
(706)
-
(395)
(1,739)
-
(2,840)
Recoveries
751
81
225
958
-
2,015
Provision
(1,505)
(345)
759
279
812
-
Balance, December 31, 2015
4,783
$
722
$
2,533
$
1,263
$
1,122
$
10,423
$
(1)
Includes mortgage warehouse lines
Real Estate
Agricultural
Commercial and
Industrial
(1)
Consumer
Unallocated
Total