Sierra Bancorp Reports Strategic Securities Transaction as Well as Fourth Quarter and Year End 2023 Results

About this update from Sierra Bancorp

[{"type":"text","content":" PORTERVILLE, Calif.--(BUSINESS WIRE)--\nSierra Bancorp (Nasdaq: BSRR), parent of Bank of the Sierra, today announced a strategic securities transaction (“securities strategy”) and unaudited financial results for the three-and twelve-month periods ended December 31, 2023. Sierra Bancorp reported consolidated net income in the fourth quarter of 2023 of $6.3 million, or $0.43 per diluted share, compared to net income of $7.1 million, or $0.47 per diluted share, in the fourth quarter of 2022.\n\n\nFor the year ended 2023, the Company recognized net income of $34.8 million, or $2.36 per diluted share, as compared to $33.7 million, or $2.24 per diluted share, for the same period in 2022. The Company’s return on average assets and return on average equity for the year ended 2023 was 0.94% and 11.30%, respectively, as compared to 0.97% and 10.66%, respectively, for the same comparative period in 2022.\n\n\nHighlights for the fourth quarter of 2023 (unless otherwise stated):\n\n\n\nStrategic Branch Sale/Leaseback followed by a Securities Strategy to Improve Future Earnings\n\n\nEntered into contract to sell 13 branches in two tranches on December 21, 2023.\n\n\nFirst tranche closed in December 2023 at a gain of $15.3 million.\n\n\n\nSecond tranche expected to close in the first quarter of 2024.\n\n\n\n\n\n\nIn early January 2024, sold $196.7 million of bonds in a securities strategy at a $14.5 million loss.\n\n\nBonds sold had a weighted average book yield of 2.61%.\n\n\n\nThe $14.5 million securities loss was recognized in 2023 due to management’s intention at year end to sell such bonds in January 2024.\n\n\n\n\n\n\nProceeds from bond sale were used to pay down short-term borrowings at an average rate of 5.52%.\n\n\n\n\n\n\n\nSteady Earnings\n\n\n2023 Net Income of $34.8 million, up 4% from 2022.\n\n\n\n2023 Diluted EPS of $2.36 as compared to $2.24 in 2022, an increase of 6%.\n\n\n\n2023 ROAE of 11.30% as compared to 10.66% in 2022.\n\n\n\n\n\n\n\nSolid Asset Quality\n\n\nTotal Nonperforming Loans at $8.0 million, or 0.38% of total gross loans.\n\n\n\nPast due loans declined to $0.3 million, the lowest level for the past two years.\n\n\n\nNo foreclosed assets at December 31, 2023.\n\n\n\n\n\n\n\nStable Deposits & Liquidity\n\n\nOverall primary and secondary liquidity sources increased to $2.6 billion at December 31, 2023.\n\n\n\nNoni...

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