Sierra Bancorp · NASDAQ:BSRR
Sierra Bancorp — Investor Presentation (May 2008)
26 slides from Sierra Bancorp's investor presentation, May 6, 2008
Slide 1: Sierra Bancorp
SIERRA BANCORP ESTB. 1977
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains forward-looking statements that are: Subject to contingencies & uncertainties Not a guarantee of future performance Based on assumptions that may change Not to be unduly relied on Many factors are beyond our ability to control or predict, including fa
Slide 3: About Sierra Bancorp
About Sierra Bancorp Holding Company for Bank of the Sierra, a full-service bank which was established in 1977 and is located in Porterville, California Largest bank headquartered in the South San Joaquin Valley with $1.3 billion in assets, 400 employees, 21 brick & mortar branches and an online bra
Slide 4: About Sierra Bancorp (cont.)
About Sierra Bancorp (cont.) Alternate access channels include internet banking, automated telephone banking, a call center, remote deposit capture, debit cards (point-of-sale), and access to surcharge-free ATM’s nationwide State-of-the-art data center with full imaging capabilities Innovative “Sier
Slide 5: Bank History
Bank History 1977: Bank of the Sierra established in Porterville, CA (opened in 1978), with $1.5 million in capital 1981-95: Added de novo branches in Porterville, Lindsay, Exeter, Visalia (2) and Three Rivers 1997: Acquired Dinuba Branch from Wells Fargo, opened de novo branch in Bakersfield
Slide 6: Bank History (cont.)
Bank History (cont.) 1998-99: Opened de novo branches in Tulare, Hanford and Fresno 2000: Acquired Sierra National Bank with 4 branches in Kern County (Tehachapi (2), California City, and Bakersfield) 2003-2007: Opened de novo offices in Fresno, Clovis, Reedley, Bakersfield, & Delano
Slide 7: Our Markets
Our Markets California’s Central Valley. . . Fresno Tulare Kings Kern . . . including Fresno, Tulare, Kings, and Kern Counties
Slide 8: Recipe for Success
Recipe for Success Focused on Local Markets Community involvement Local lending authority Tailored products/services Market density approach High Growth Areas Disciplined Pricing Loans Deposits Innovation, Flexibility, Service!
Slide 9: Investment Value
Investment Value Average 18% annual growth in diluted EPS for last 5 years 22 years of regular cash dividends Officers & directors own 25% of shares Current price levels 10.7 x (ttm) EPS of $2.13 per share * 2.0 x Book Value of $10.65 per share * * As of 4/30/08 close of $21.61 per share
Slide 10: Stock Performance
Stock Performance 5-Year History—BSRR vs. Nasdaq Banks vs. Nasdaq Composite 180.0% 160.0% 140.0% 120.0% 100.0% 80.0% 60.0% 40.0% 20.0% 0.0% -20.0% Jan-03 Apr-03 Jul-03 Oct-03 Jan-04 Apr-04 Jul-04 Oct-04 Jan-05 Apr-05 Jul-05 Oct-05 Jan-06 Apr-06 Jul-06 Oct-06 Oct-06 Jan-07 Apr-07 Jul-07 Oct-07 Jan-08
Slide 11: Return to Original Shareholders
Return to Original Shareholders The current value of one original share is $1,248.19 assuming current price/share of $23.64 Most recent quarterly dividend per original share: $8.98 Cumulative dividends per original share: $215.60 Compound Annual Rate of Appreciation: 17.16% Annualized Total Return (
Slide 12: Financial Performance
Financial Performance Consistent high performance Strong NIM, respectable O/H efficiency ratio Solid growth prospects Ranked 6th best-performing publicly-traded bank in the nation by US Banker magazine (January 2008)
Slide 13: Financial Performance: Diluted EPS
Financial Performance Diluted EPS $2.20 $2.00 $1.80 $1.60 $1.40 $1.20 $1.00 $0.80 $0.60 $0.40 $0.20 $- 2003 2004 2005 2006 2007 4Q 3Q 2Q 1Q 2007 ROE of 22.3% 2007 ROA of 1.7% 2007 NIM of 5.25% 2007 O/H Efficiency Ratio of 49.4% Record profits for 24 of last 25 years 5 year EPS CAGR is 18%
Slide 14: Net Income
Net Income $22 $20 $18 $16 $14 $12 $10 $8 $6 $4 $2 $0 $10.4 $13.3 $16.2 $19.2 $21.0 2003 2004 2005 2006 2007
Slide 15: Dividends per Share
Dividends per Share 2003 2004 2005 2006 2007 $0.70 $0.65 $0.60 $0.55 $0.50 $0.45 $0.40 $0.35 $0.30 $0.25 $0.20 $0.15 $0.10 $0.05 $0.00 $0.36 $0.37 $0.45 $0.54 $0.62
Slide 16: Return on Average Equity
Return on Average Equity Note: National Peer Group is all financial institutions in the U.S. with assets between $500 million and $2.5 billion. 24% 22% 20% 18% 16% 14% 12% 10% 2003 2004 2005 2006 2007 BSRR National Peer Group
Slide 17: Net Interest Margin
Net Interest Margin (Tax Equivalent) Note: National Peer Group is all financial institutions in the U.S. with assets between $500 million and $2.5 billion. 7.0% 6.5% 6.0% 5.5% 5.0% 4.5% 4.0% 3.5% 3.0% 2003 2004 2005 2006 2007 BSRR National Peer Group
Slide 18: Overhead Efficiency Ratio
Overhead Efficiency Ratio 70.0% 65.0% 60.0% 55.0% 50.0% 45.0% (Tax Equivalent) 2003 2004 2005 2006 2007 BSRR National Peer Group
Slide 19: Balance Sheet
Balance Sheet $1,400 $1,200 $1,000 $800 $600 $400 $200 $0 Gross Loans Deposits Assets 2002 2003 2004 2005 2006 2007 End-of-Period
Slide 20: Loan Portfolio
Loan Portfolio $513 Million at Dec. 31, 2002 Ag Production 2% SBA 4% Consumer & Credit Cards 10% Comm’l & Industrial 16% RE—Commercial 47% RE—Residential 18% RE—Farmland 3% $925 Million at Dec. 31, 2007 Ag Production 1% RE—Farmland 6% RE—Residential 20% Comm’l & Industrial 13% SBA 2% Finance Leases
Slide 21: Deposits by Type
Deposits by Type $606 Million at Dec. 31, 2002 MMDA 20% NOW & SVNGS 15% CD’s < $100k 18% CD’s > $100k 20% DDA 27% $850 Million at Dec. 31, 2007 CD’s < $100k 16% CD’s > $100k 24% DDA 29% NOW & SVNGS 16% MMDA 15%
Slide 22: Risk-Based Capital Ratio
Risk-Based Capital Ratio Well Capitalized 14.00% 13.00% 12.00% 11.00% 10.00% 9.00% 8.00% 7.00% 6.00% 5.00% 4.00% 2002 2003 2004 2005 2006 2007 End-of-Period
Slide 23: BSRR 5-Year Plan
BSRR 5-Year Plan “Built to Last” Financial and Market Goals EPS Growth of 10%+ per year ROE greater than 18% ROA greater than 1.4% $1.8 billion in assets Active, liquid market for BSRR shares
Slide 24: Mission Statement
Mission Statement MISSION To be responsible stewards for our shareholders by providing a superior return on equity of 18%+ and a return on average assets of 1.4%+ within a culture of discipline and ethical entrepreneurship. This is a fundamental stewardship responsibility. VISION Our vision is to be
Slide 25: Major Strategies
Major Strategies 1) To anticipate and meet the dynamic needs of our existing and prospective customers by providing a broad line of competitive and innovative financial products. 2) To provide quality service on a timely, competitive basis. 3) To establish and maintain a selection and review process
Slide 26: Sierra Bancorp
NASDAQ: BSRR SIERRA BANCORP