SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For The Quarterly Period Ended March 31, 2003
Commission file number: 000-33063
SIERRA BANCORP
(Exact name of Registrant as specified in its charter)
| California |
33-0937517 | |
| (State of Incorporation) |
(IRS Employer Identification No) |
86 North Main Street, Porterville, California 93257
(Address of principal executive offices) (Zip Code)
(559) 782-4900
(Registrant’s telephone number, including area code)
Not Applicable
(Former name, former address and former fiscal year, if changed since last report)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. YES x NO ¨
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Act). YES ¨ NO x
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
Common stock, no par value, 9,274,187 shares outstanding as of May 5, 2003
FORM 10-Q
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| 6 | ||
| Item 2. Management’s Discussion & Analysis of Financial Condition & Results of Operations |
11 | |
| Overview of the Results of Operation and Financial Condition |
12 | |
| 14 | ||
| 18 | ||
| 19 | ||
| 23 | ||
| 23 | ||
| 23 | ||
| 24 | ||
| 24 | ||
| 26 | ||
| 28 | ||
| 30 | ||
| 30 | ||
| 30 | ||
| Fed Funds Purchased & Securities Sold Under Agreements to Repurchase |
31 | |
| 31 | ||
| 32 | ||
| 34 | ||
| Item 3. Qualitative & Quantitative Disclosures about Market Risk |
36 | |
| 36 | ||
| 37 | ||
| 37 | ||
| 37 | ||
| 37 | ||
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| 41 |
2
SIERRA BANCORP
(dollars in thousands, unaudited)
| March 31, 2003 |
December 31, 2002 |
|||||||
| ASSETS |
||||||||
| Cash and Due From Banks |
$ |
43,230 |
|
$ |
55,819 |
| ||
| Federal Funds Sold |
|
2,400 |
|
|
— |
| ||
| Total Cash & Cash Equivalents |
|
45,630 |
|
|
55,819 |
| ||
| Securities Available for sale |
|
84,952 |
|
|
83,911 |
| ||
| Loans: |
||||||||
| Gross loans |
|
511,428 |
|
|
512,618 |
| ||
| Allowance for loan losses |
|
(5,931 |
) |
|
(5,939 |
) | ||
| Deferred loan fees, net |
|
(1,192 |
) |
|
(1,024 |
) | ||
| Net Loans |
|
504,305 |
|
|
505,655 |
| ||
| Other equity securities |
|
1,867 |
|
|
1,847 |
| ||
| Premises and equipment, net |
|
17,272 |
|
|
17,578 |
| ||
| Other real estate |
|
1,594 |
|
|
1,421 |
| ||
| Accrued interest receivable |
|
3,569 |
|
|
3,259 |
| ||
| Other assets |
|
31,861 |
|
|
31,624 |
| ||
| TOTAL ASSETS |
$ |
691,050 |
|
$ |
701,114 |
| ||
| LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||||||
| LIABILITIES |
||||||||
| Deposits: |
||||||||
| Demand |
$ |
168,338 |
|
$ |
166,574 |
| ||
| Interest bearing demand |
|
52,609 |
|
|
49,455 |
| ||
| Savings |
|
40,825 |
|
|
36,890 |
| ||
| MMDA’s |
|
128,324 |
|
|
123,178 |
| ||
| TDOA’s, IRA’s & KEOGH’S |
|
19,554 |
|
|
18,894 |
| ||
| Time deposits < $100,000 |
|
88,921 |
|
|
91,676 |
| ||
| Time deposits > $100,000 |
|
101,396 |
|
|
119,038 |
| ||
| Total Deposits |
|
599,967 |
|
|
605,705 |
| ||
| Federal funds purchased and repurchase agreements |
|
15,354 |
|
|
19,291 |
| ||
| Other borrowed funds |
|
29 |
|
|
32 |
| ||
| Accrued interest payable |
|
722 |
|
|
791 |
| ||
| Other liabilities |
|
5,080 |
|
|
7,008 |
| ||
| Company obligated manditorily redeemable cumulative trust preferred security of subsidiary trust holding solely junior subordinated debentures |
|
15,000 |
|
|
15,000 |
| ||
| TOTAL LIABILITIES |
|
636,152 |
|
|
647,827 |
| ||
| SHAREHOLDERS’ EQUITY |
||||||||
| Common stock, no par value; 24,000,000 shares authorized; 9,260,187 shares issued and outstanding |
|
3,138 |
|
|
2,815 |
| ||
| Retained earnings |
|
49,956 |
|
|
48,594 |
| ||
| Accumulated other comprehensive income |
|
1,804 |
|
|
1,878 |
| ||
| TOTAL SHAREHOLDER’S EQUITY |
|
54,898 |
|
|
53,287 |
| ||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
$ |
691,050 |
|
$ |
701,114 |
| ||
3
CONSOLIDATED STATEMENTS OF INCOME & COMPREHENSIVE INCOME
(dollars in thousands, except per share data, unaudited)
| For the Quarter Ended March 31, |
For the Quarter Ended March 31, |
|||||||
| INTEREST INCOME: |
||||||||
| Federal funds sold and interest bearing deposits |
$ |
25 |
|
$ |
27 |
| ||
| US Treasury securities |
|
2 |
|
|
14 |
| ||
| US Gov’t agencies |
|
180 |
|
|
292 |
| ||
| State and political subdivsions |
|
423 |
|
|
488 |
| ||
| Other securities |
|
294 |
|
|
354 |
| ||
| Equities |
|
57 |
|
|
22 |
| ||
| Loans, including fee income |
|
9,157 |
|
|
9,187 |
| ||
| Total interest income |
|
10,138 |
|
|
10,384 |
| ||
| INTEREST EXPENSE: |
||||||||
| Interest on deposits |
|
1,695 |
|
|
2,025 |
| ||
| Interest on borrowed funds |
|
239 |
|
|
382 |
| ||
| Total interest expense |
|
1,934 |
|
|
2,407 |
| ||
| Net Interest Income |
|
8,204 |
|
|
7,977 |
| ||
| Provision for loan losses |
|
400 |
|
|
600 |
| ||
| Net Interest Income after Provision for Loan Losses |
|
7,804 |
|
|
7,377 |
| ||
| OTHER OPERATING INCOME: |
||||||||
| Service charges on deposit accounts |
|
1,341 |
|
|
1,195 |
| ||
| Gains on sales of loans |
|
61 |
|
|
423 |
| ||
| Other |
|
801 |
|
|
490 |
| ||
| Total other operating income |
|
2,203 |
|
|
2,108 |
| ||
| OTHER OPERATING EXPENSES: |
||||||||
| Salaries and employee benefits |
|
3,561 |
|
|
2,721 |
| ||
| Occupancy expense |
|
1,182 |
|
|
995 |
| ||
| Other |
|
2,037 |
|
|
2,410 |
| ||
| Total other operating expenses |
|
6,780 |
|
|
6,126 |
| ||
| INCOME BEFORE PROVISION FOR INCOME TAXES |
|
3,227 |
|
|
3,359 |
| ||
| Provision for income taxes |
|
756 |
|
|
1,174 |
| ||
| NET INCOME |
$ |
2,471 |
|
$ |
2,185 |
| ||
| Other comprehensive income, unrealized (loss) on securities available for sale, net of income taxes |
|
(74 |
) |
|
(172 |
) | ||
| COMPREHENSIVE INCOME |
||||||||