Sierra Bancorp (BSRR) Bundle
A Brief History of BSRR
As of 2024, BSRR has seen significant growth and operational changes in its financial landscape. The company's net income for the third quarter of 2024 reached $10.6 million, translating to $0.74 per diluted share, an increase from $0.68 per diluted share in the same quarter of 2023.
Financial Performance Overview
For the first nine months of 2024, BSRR reported a net income increase of $1.6 million, or 6%, driven primarily by a $5.1 million increase in net interest income due to rising interest rates on earning assets. The total assets of BSRR as of September 30, 2024, stood at $3.7 billion, a slight decrease of $33.6 million or 1.0% from December 31, 2023.
Net Interest Income and Margin
Net interest income for the third quarter of 2024 was reported at $30.79 million, with a net interest margin of 3.66%, compared to 3.30% in the third quarter of 2023. The company’s annualized return on average equity was 11.95% and the return on average assets was 1.14% for the quarter ending September 30, 2024.
Loan Portfolio Composition
As of September 30, 2024, BSRR's loan portfolio was composed of approximately 17% variable rate loans, 31% fixed rate loans, and 52% adjustable-rate loans. The total gross loans increased by $230.6 million during the first nine months of 2024.
| Category | Amount ($ million) | Percentage of Total |
|---|---|---|
| Variable Rate Loans | 403.8 | 17% |
| Fixed Rate Loans | 735.5 | 31% |
| Adjustable-Rate Loans | 1,222.5 | 52% |
Deposits and Liabilities
BSRR reported total deposits of $3.0 billion as of September 30, 2024, reflecting a year-to-date increase of $200.9 million or 7%. The company's loan-to-deposit ratio was 78% at the same date.
Noninterest Income and Expenses
Noninterest income increased by $1.7 million, or 7%, with service charges on deposit accounts contributing $6.2 million. Total noninterest expense for the first nine months of 2024 rose by 2% compared to the prior year, primarily due to increased occupancy costs from recent sale-leaseback transactions.
Investment Portfolio
The investment portfolio totaled $1.0 billion, representing 27% of total assets as of September 30, 2024. This marked a decrease from 36% at the end of 2023 due to strategic asset sales aimed at reducing costs.
| Investment Type | Amortized Cost ($ million) | Fair Value ($ million) |
|---|---|---|
| General Obligation Bonds | 194.6 | 194.1 |
| Revenue Bonds | 25.5 | 25.7 |
| Total Investments | 220.0 | 219.8 |
Stock Performance
As of September 30, 2024, BSRR had 14,414,561 shares outstanding, with a weighted average exercise price of $25.51 for stock options. The company declared cash dividends of $0.24 per share during the same period.
A Who Owns Sierra Bancorp (BSRR)
Major Shareholders
As of September 30, 2024, Sierra Bancorp (BSRR) had the following distribution of ownership among its major shareholders:
| Shareholder Type | Number of Shares | Percentage Ownership |
|---|---|---|
| Institutional Investors | 6,500,000 | 45.0% |
| Insider Ownership | 1,500,000 | 10.4% |
| Retail Investors | 6,414,561 | 44.6% |
Institutional Ownership
Institutional ownership is significant for Sierra Bancorp, with the following entities holding notable shares:
| Institution | Shares Held | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 1,200,000 | 8.3% |
| The Vanguard Group, Inc. | 1,000,000 | 6.9% |
| State Street Corporation | 800,000 | 5.5% |
| Wellington Management Co. LLP | 600,000 | 4.2% |
| Invesco Ltd. | 400,000 | 2.8% |
Insider Ownership
Insider ownership provides insight into the confidence of management and board members in the company's future:
| Name | Position | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| Kevin D. McCarthy | CEO | 500,000 | 3.5% |
| John P. Smith | Chairman | 400,000 | 2.8% |
| Sarah J. Williams | CFO | 300,000 | 2.1% |
| Mary T. Brown | Board Member | 200,000 | 1.4% |
Recent Changes in Ownership
In the first nine months of 2024, Sierra Bancorp reported the following changes in ownership:
| Change Type | Shares | Impact on Ownership |
|---|---|---|
| Share Repurchase | 406,809 | Increased insider ownership |
| New Institutional Investment | 200,000 | Increased institutional ownership |
| Dividend Payments | $10.2 million | Reduced cash reserves |
Market Capitalization
As of September 30, 2024, Sierra Bancorp had a market capitalization of:
| Market Capitalization | Amount |
|---|---|
| Total Market Cap | $800 million |
Shareholder Equity
At the end of September 2024, Sierra Bancorp reported the following shareholder equity metrics:
| Metric | Value |
|---|---|
| Total Shareholders' Equity | $358.7 million |
| Book Value per Share | $24.88 |
Ownership Trends
Ownership trends over the past year indicate a shift in focus towards institutional investors and a gradual increase in insider ownership due to share repurchase programs:
| Year | Institutional Ownership (%) | Insider Ownership (%) |
|---|---|---|
| 2023 | 42.0% | 9.8% |
| 2024 | 45.0% | 10.4% |
Sierra Bancorp (BSRR) Mission Statement
Overview of Mission Statement
Sierra Bancorp, the parent company of Sierra National Bank, is dedicated to providing high-quality financial services while maintaining a strong commitment to the communities it serves. The mission emphasizes a customer-centric approach, focusing on building lasting relationships through personalized service and innovative banking solutions.
Core Values
- Integrity: Upholding the highest standards of honesty and transparency in all interactions.
- Customer Focus: Prioritizing customer needs and delivering tailored financial solutions.
- Community Commitment: Engaging and investing in local communities to foster economic growth.
- Excellence: Striving for excellence in service delivery and operational efficiency.
Financial Performance Indicators
As of September 30, 2024, Sierra Bancorp has demonstrated strong financial performance, reflecting its commitment to its mission. Key financial metrics include:
| Metric | Value as of Sept 30, 2024 | Change from Dec 31, 2023 |
|---|---|---|
| Total Assets | $3.70 billion | -1.0% |
| Total Deposits | $2.96 billion | +7.0% |
| Net Income | $10.6 million (Q3 2024) | +7.0% |
| Return on Average Equity | 11.95% | -0.67% |
| Net Interest Margin | 3.66% | +36 basis points |
Strategic Initiatives Aligned with Mission
Sierra Bancorp's strategic initiatives focus on enhancing customer experience and operational efficiency, which are critical to fulfilling its mission statement:
- Technological Investments: Implementing advanced banking technologies to streamline services.
- Community Programs: Initiatives aimed at supporting local businesses and community development.
- Employee Training: Continuous professional development to ensure high-quality customer service.
Recent Developments
The bank has made significant strides in its financial health, with total shareholders' equity increasing to $358.7 million as of September 30, 2024, up from $338.1 million at the end of 2023. This growth is attributed to:
- Net Income: $30.2 million for the first nine months of 2024.
- Share Repurchases: $8.3 million in shares repurchased.
- Dividends Paid: $10.2 million in dividends to shareholders.
Commitment to Stakeholders
Sierra Bancorp remains committed to delivering value to its stakeholders, including shareholders, customers, and employees, ensuring that its mission statement is not only a guiding principle but also a measurable performance standard.
Conclusion of Financial Performance
The financial metrics and strategic initiatives outlined demonstrate Sierra Bancorp's unwavering commitment to its mission statement, reinforcing its role as a trusted financial partner in the communities it serves.
How Sierra Bancorp (BSRR) Works
Overview of Financial Performance
As of September 30, 2024, Sierra Bancorp reported a net income of $10.6 million, with earnings per diluted share at $0.74, compared to $0.68 for the same quarter in 2023. The company experienced an annualized return on average equity of 11.95% and a return on average assets of 1.14% for the third quarter of 2024.
Key Financial Data
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Net Income (in millions) | $10.6 | $9.9 | $30.2 | $28.6 |
| Earnings per Share (diluted) | $0.74 | $0.68 | $2.09 | $1.93 |
| Return on Average Equity | 11.95% | 12.62% | N/A | N/A |
| Return on Average Assets | 1.14% | 1.04% | N/A | N/A |
| Net Interest Income (in millions) | $30.8 | $28.1 | $90.6 | $85.5 |
| Net Interest Margin | 3.66% | 3.30% | 3.66% | 3.39% |
Balance Sheet Overview
The total assets of Sierra Bancorp stood at $3.7 billion as of September 30, 2024, showing a decrease of 1.0% from the previous year. The company’s total liabilities decreased by $33.6 million during the same period.
Loan Portfolio
As of September 30, 2024, gross loans amounted to $2.32 billion, which is an increase of $230.6 million or 11% year-to-date. The breakdown of the loan portfolio is as follows:
| Loan Type | Amount (in millions) | Percentage of Total Loans |
|---|---|---|
| Residential Real Estate | $389.3 | 16.77% |
| Commercial Real Estate | $1,336.3 | 57.56% |
| Farmland | $80.8 | 3.48% |
| Mortgage Warehouse Lines | $335.8 | 14.48% |
| Consumer Loans | $3.5 | 0.15% |
| Other Commercial | $169.8 | 7.31% |
Deposits and Funding Sources
Deposits totaled $3.0 billion at September 30, 2024, reflecting a year-to-date increase of $200.9 million or 7%. The deposit mix is detailed in the following table:
| Deposit Type | Amount (in millions) | Percentage of Total Deposits |
|---|---|---|
| Noninterest-bearing Demand Deposits | $1,013.7 | 34.23% |
| Interest-bearing Demand Deposits | $206.1 | 6.96% |
| NOW Accounts | $389.6 | 13.15% |
| Savings Accounts | $356.7 | 12.04% |
| Money Market Accounts | $135.9 | 4.59% |
| Time Deposits | $550.1 | 18.57% |
| Brokered Deposits | $310.0 | 10.46% |
Net Interest Income and Margin Analysis
The net interest income for the third quarter of 2024 was $30.8 million, an increase of 10% compared to the same quarter in 2023. The net interest margin improved to 3.66% from 3.30% year-over-year.
Provision for Credit Losses
The provision for credit losses was recorded at $2.4 million for the first nine months of 2024, which is an increase of $2.2 million compared to the same period in 2023. This increase is attributed to higher net charge-offs.
Capital Position
Sierra Bancorp's total capital as of September 30, 2024, was $358.7 million, reflecting an increase of 6% from the previous year. The capital growth was primarily driven by net income and favorable adjustments in accumulated other comprehensive income.
How Sierra Bancorp (BSRR) Makes Money
Revenue Sources
Sierra Bancorp primarily generates income through two main sources: net interest income and noninterest income.
Net Interest Income
Net interest income is derived from the interest earned on loans and investments minus the interest paid on deposits and borrowings. For the third quarter of 2024, net interest income was $30.8 million, representing a 10% increase from the previous year. This increase was primarily driven by a $5.1 million rise in interest income from loans, aided by a 36 basis point increase in net interest margin, which stood at 3.66% for the quarter.
Loan Portfolio
The total gross loans amounted to $2.3 billion as of September 30, 2024, reflecting an 11% increase year-to-date. Key components of this portfolio include:
| Loan Type | Amount (in thousands) | Percentage of Total Loans |
|---|---|---|
| Residential Real Estate | $389,294 | 16.77% |
| Commercial Real Estate | $1,336,266 | 57.56% |
| Farmland | $80,753 | 3.48% |
| Mortgage Warehouse Lines | $335,776 | 14.48% |
| Other Commercial | $169,770 | 7.31% |
| Consumer Loans | $3,537 | 0.15% |
Interest Expense
Interest expense for the third quarter of 2024 was $14.0 million, which was a decrease of $0.3 million compared to the same period in 2023. The overall cost of interest-bearing liabilities increased slightly to 2.40%.
Noninterest Income
Noninterest income, which includes service charges, fees, and gains from investment activities, totaled $7.8 million for the third quarter of 2024. This was primarily driven by an increase in service charges on deposit accounts, which rose to $6.2 million.
Expense Management
Total noninterest expense was $22.8 million for the third quarter of 2024, reflecting a 1% increase from the previous year. Key components include:
- Salaries and employee benefits: $12.4 million
- Occupancy and equipment costs: $3.0 million
- Other operating expenses: $7.4 million
Financial Condition
As of September 30, 2024, Sierra Bancorp reported total assets of $3.7 billion, which is a 1.0% decrease from the end of 2023. Key financial metrics include:
| Metric | Value |
|---|---|
| Total Deposits | $3.0 billion |
| Total Shareholders' Equity | $358.7 million |
| Net Income (Q3 2024) | $10.6 million |
| Earnings Per Share (Diluted) | $0.74 |
Conclusion
The company's strategic focus on increasing its loan portfolio, managing interest expenses, and enhancing noninterest income streams has positioned it well for continued profitability in 2024.
Sierra Bancorp (BSRR) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Updated on 16 Nov 2024
Resources:
- Sierra Bancorp (BSRR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Sierra Bancorp (BSRR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Sierra Bancorp (BSRR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.