CORRECTING and REPLACING Sierra Bancorp Posts Record Second Quarter Profits Margin; Expansion Contributes to 9% Rise in 2Q03 Net Income.Business Editors CORRECTION CORRECTION,punishment. Chastisement by one having authority of a person who has committed some offence, for the purpose of bringing him to legal subjection. 2. It is chiefly exercised in a parental manner, by parents, or those who are placed in loco parentis. ...by Sierra (company, games) Sierra - (Or "Sierra On-Line") A computer game developer founded in the early 1980s by Ken and Roberta Willams in the small mountain town of Oakhurst California. Sierra was named after the local mountian range, 15 miles from the famous Yosemite National Park. Bancorp PORTERVILLE Porterville, city (1990 pop. 29,563), Tulare co., S central Calif., on the Tule River; founded 1859 on the old Los Angeles–San Francisco stage route, inc. 1902. , Calif.--(BUSINESS WIRE)--July 24, 2003 Please replace BW5732 issued July July: see month. 21, 2003, (CA-SIERRA-BANCORP) Sierra Bancorp Posts Record Second Quarter Profits Margin, with the following revised release. The corrected release reads: SIERRA BANCORP POSTS RECORD SECOND QUARTER PROFITS; MARGIN EXPANSION CONTRIBUTES TO 9% RISE IN 2Q03 NET INCOME Sierra Bancorp (Nasdaq:BSRR BSRR Birmingham Southern Railroad (Alabama) ), parent of Bank of the Sierra, today announced it generated record second quarter profits fueled by an expanding net interest margin and strong loan and deposit growth. Second quarter net income rose 9% to $2.5 million, or $0.25 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared to $2.3 million, or $0.23 per diluted share, in the second quarter of 2002. Year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. net income rose 11% to $4.9 million, or $0.49 per diluted share, compared to $4.4 million, or $0.46 per diluted share in the first half of 2002. Sierra Bancorp generated a return on average equity of 17.6% in the second quarter and 18.1% for the first half of 2003. Its return on average assets was 1.41% in the quarter and 1.43% year-to-date.
"Success in business requires training and discipline and hard
work. But if you're not frightened by these things, the
opportunities are just as great today as they ever were."
David Rockefeller
"Our success in generating steadily increased profits over the past 25 years and the record profits posted so far this year are indeed a product of the training, discipline and hard work of all our team members. And we concur CONCUR - ["CONCUR, A Language for Continuous Concurrent Processes", R.M. Salter et al, Comp Langs 5(3):163-189 (1981)]. with Mr. Rockefeller that opportunities are as abundant today as ever," said James James, person in the Bible James, in the Gospel of St. Luke, kinsman of St. Jude. The original does not specify the relationship. James, rivers, United States James. C. Holly holly, common name for members of the Aquifoliaceae, a family of widely distributed trees and shrubs, most numerous in Central and South America. The evergreen English holly (Ilex aquifolium , President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "The Southern San Joaquin Valley Noun 1. San Joaquin Valley - a vast valley in central California known for its rich farmland Calif., California, Golden State, CA - a state in the western United States on the Pacific; the 3rd largest state; known for earthquakes continues to demonstrate economic resilience resilience (r  ·zilˑ·yens),n , and we are gaining share of the banking market in the communities we serve." Operating Results "Solid growth in both loans and core deposits allowed us to shift earning assets Earning Assets Any income-earning asset owned by a company. Notes: These assets are generally interest-bearing accounts, bonds, and securities available for sale. See also: Asset, Asset Valuation, Earnings, Net Interest Margin into more productive categories, reduce our cost of funds Cost of Funds The interest rate paid on an outstanding loan. Notes: Money isn't free! Cost of funds is the cost of borrowing money. See also: Interest Rate Cost of funds Interest rate associated with borrowing money. , and produce solid top line growth with strong margins this quarter," said Kenneth Taylor Kenneth Taylor may refer to
The company's net interest margin for the second quarter of 2003 expanded 15 basis points from a year earlier and improved 9 basis points for the first half of the year. "Many of our peer institutions are experiencing margin compression compression, external stress applied to an object or substance, tending to cause a decrease in volume (see pressure). Gases can be compressed easily, solids and liquids to a very small degree if at all. ; however, we have been able to strengthen our net interest margin through disciplined pricing policies for both loans and deposits without hindering hin·der 1 v. hin·dered, hin·der·ing, hin·ders v.tr. 1. To be or get in the way of. 2. To obstruct or delay the progress of. v.intr. expansion of our loan portfolio and core deposits," said Taylor Taylor, city (1990 pop. 70,811), Wayne co., SE Mich., a suburb of Detroit adjacent to Dearborn; founded 1847 as a township, inc. as a city 1968. A small rural village until World War II, it developed significantly in the second half of the 20th cent. . Net interest income in the second quarter increased 5% to $8.6 million, compared to $8.2 million in the second quarter a year ago. In the first six months of 2003, net interest income grew 4% to $16.8 million compared to $16.2 million in the like period of 2002. Operating (non-interest) income grew 15% in the second quarter and 10% year-to-date boosted by growth in service charges from new accounts and income from the company's investment in bank-owned life insurance. The company's investment in new branches, which was partially offset by savings generated from new technology, contributed to a 13% increase in total operating expense Operating Expense The essential things that a company must purchase in order to maintain business. Notes: For example, the payment of employees wages are an operating expense. Also known as OPEX. for the second quarter and a 12% increase year-to-date. Bank of the Sierra opened a new branch in Fresno Fresno (frĕz`nō), city (1990 pop. 354,202), seat of Fresno co., S central Calif.; inc. 1885. Settled in 1872 as a station on the Central Pacific RR, Fresno profited from irrigated farming as early as the 1880s. in April and is constructing another branch in nearby Clovis Clovis. 1 City (1990 pop. 50,323), Fresno co., S central Calif., near the foothills of the Sierra Nevada range; inc. 1912. It is a growing trade center in a farm and vineyard area; the population more than tripled from 1970 to 1990. , slated to open in early 2004. This expansion activity, combined with the fulfillment ful·fill also ful·fil tr.v. ful·filled, ful·fill·ing, ful·fills also ful·fils 1. To bring into actuality; effect: fulfilled their promises. 2. of technology initiatives, strategic growth in lending staff, and increases in the cost of workers compensation insurance, among other things, caused salaries and benefits to grow by 26% and occupancy Gaining or having physical possession of real property subject to, or in the absence of, legal right or title. In a fire insurance policy, for example, the term occupancy expenses to increase by 20% in the first half of 2003. The bank's efficiency ratio also rose to 61.2% in the second quarter and to 62.1% in the first half of 2003 from 57.7% and 58.5% in the respective periods of 2002. Operating expense totaled $7.0 million in the second quarter and $13.8 million in the first six months of 2003, compared to $6.2 million and $12.3 million in the respective periods a year ago. Pretax income pretax income Reported income before the deduction of income taxes. Pretax income is sometimes considered a better measure of a firm's performance than aftertax income because taxes in one period may be influenced by activities in earlier periods. increased 4% in the second quarter to $3.4 million and was flat at $6.6 million year-to-date. The company's provision for income taxes dropped 8% in the quarter and 23% in the first six months of the year due to tax strategies implemented in the second half of 2002. Balance Sheet Growth Assets increased 8% to $735 million at June June: see month. 30, 2003 from $678 million a year ago. Securities and Fed Funds fed funds See federal funds. Sold dropped 15% to $88 million from $103 million a year ago, as the bank replaced these lower yielding investments with higher producing loans. Net loans grew 11% to $550 million from $497 million, boosted by strong loan demand for real estate loans, including commercial real estate loans, which grew 15% and account for 70% of the total loan portfolio. Non-performing assets were at approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. the same level on June 30, 2003 as on June 30, 2002, although relative to total assets they fell to 1.4% from 1.5%. At quarter end, the allowance for loan losses stood at $6.0 million, or 1.1% of total loans compared to $5.8 million, or 1.2% of total loans a year ago. Deposits grew 6% fueled by a 20% increase in demand deposits, 18% growth in savings and NOW accounts, and a 24% rise in money market deposits, which more than offset the 15% drop in time certificates. Higher-cost time deposits accounted for just 33% of total deposits at quarter end compared to 41% a year ago. Total deposits were $610 million at June 30, 2003, up from $575 million a year earlier. About Sierra Bancorp Sierra Bancorp is the holding company for Bank of the Sierra, the largest independent bank headquartered in the South San Joaquin Valley. The Bank operates seventeen Seventeen novel of young love. [Am. Lit.: Booth Tarkington Seventeen in Magill I, 882] See : Adolescence branch offices, as well as two agricultural credit centers and a bank card center. In 2003, Sierra Bancorp was added to the Russell 2000 Index Russell 2000 Index An index measuring the performance of the 2,000 smallest companies in the Russell 3000 Index, which is made up of 3,000 of the biggest U.S. stocks. The Russell 2000 serves as a benchmark for small-cap stocks in the United States. and US Banker BANKER, com. law. A banker is one engaged in the business of receiving other persons money in deposit, to be returned on demand discounting other persons' notes, and issuing his own for circulation. One who performs the business usually transacted by a bank. magazine ranked BSRR as the nation's 24th best performing bank over the past three years based on its three-year return on equity. More information about Bank of the Sierra is available on the Bank's web site, www.bankofthesierra.com. The statements contained in this release that are not historical facts are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. based on management's current expectations and beliefs concerning future developments and their potential effects on the Company. Readers are cautioned not to unduly rely on forward looking statements. Actual results may differ from those projected. These forward-looking statements involve risks and uncertainties the impact of current events on the California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). economy, customers' acceptance of pricing policies, the bank's ability to successfully expand geographically, changes in interest rates, loan portfolio performance and other factors detailed in the Company's SEC filings.
INCOME STATEMENT
($ in 000s except per share)
unaudited)
3-Month Period Ended 6-Month Period Ended
June 30, June 30, % June 30, June 30, %
2003 2002 Change 2003 2002 Change
----------- ---------------- ---------- -----------------
Interest
Income $ 10,324 $ 10,530 -2.0% $ 20,462 $ 20,914 -2.2%
Interest
Expense 1,723 2,329 -26.0% 3,657 4,736 -22.8%
----------- ---------- ---------- ----------
Net
Interest
Income 8,601 8,201 4.9% 16,805 16,178 3.9%
Provision
for Loan
Losses 725 950 -23.7% 1,125 1,550 -27.4%
----------- ---------- ---------- ----------
Net
Interest
after
Loan Loss
Prov 7,876 7,251 8.6% 15,680 14,628 7.2%
Service
Charges 1,527 1,360 12.3% 2,868 2,555 12.3%
Loan Sale &
Servicing
Income 74 127 -41.7% 194 630 -69.2%
Other Non-
Interest
Income 911 464 96.3% 1,690 967 74.8%
Gain/(Loss)
on
Investments 2 238 -99.2% (35) 145 -124.1%
----------- ---------- ---------- ----------
Total Non-
Interest
Income 2,514 2,189 14.8% 4,717 4,297 9.8%
Salaries &
Benefits 3,286 2,702 21.6% 6,847 5,420 26.3%
Occupancy
Expense 1,239 1,014 22.2% 2,421 2,011 20.4%
Other Non-
Interest
Expenses 2,467 2,448 0.8% 4,504 4,861 -7.3%
----------- ---------- ---------- ----------
Total Non-
Interest
Expense 6,992 6,164 13.4% 13,772 12,292 12.0%
----------- ---------- ---------- ----------
Income
Before
Taxes 3,398 3,276 3.7% 6,625 6,633 -0.1%
Provision
for Income
Taxes 932 1,015 -8.2% 1,688 2,189 -22.9%
----------- ---------- ---------- ----------
Net Income $ 2,466 $ 2,261 9.1% $ 4,937 $ 4,444 11.1%
=========== ========== ========== ==========
PER SHARE
DATA
Basic
earnings
per share $0.27 $0.24 8.7% $0.53 $0.48 10.4%
Diluted
earnings
per share $0.25 $0.23 5.8% $0.49 $0.46 7.2%
Common
dividends
per share $0.08 $0.07 14.3% $0.16 $0.14 14.3%
Average
basic
shares
outstanding 9,280,318 9,248,456 0.3% 9,286,930 9,233,068 0.6%
Average
diluted
shares
outstanding 10,060,639 9,757,308 0.3% 9,996,656 9,647,800 3.6%
Common
shares
outstanding 9,299,227 9,260,280 3.1% 9,299,227 9,260,280 0.4%
Book Value $6.12 $5.41 13.1% $6.12 $5.41 13.1%
Tangible
book value $5.52 $4.81 14.8% $5.52 $4.81 14.8%
KEY
FINANCIAL
RATIOS
Return on
Average
Equity 17.56% 18.62% 18.11% 18.62%
Return on
Average
Assets 1.41% 1.35% 1.43% 1.35%
Net Interest
Margin
(Tax-
Equiv.) 5.70% 5.55% 5.68% 5.59%
Efficiency
Ratio (Tax-
Equiv.) 61.22% 57.70% 62.14% 58.48%
Net Charge-
Offs to Avg
Loans 0.13% 0.11% 0.21% 0.29%
AVERAGE
BALANCES
Average
assets $ 703,630 $ 672,129 4.7% $ 694,692 $ 663,139 4.8%
Average
earning
assets $ 620,306 $ 610,109 1.7% $ 611,633 $ 601,520 1.7%
Average
equity $ 56,339 $ 48,711 15.7% $ 54,962 $ 48,130 14.2%
Average
gross
loans $ 529,067 $ 496,798 6.5% $ 518,536 $ 494,215 4.9%
Average
loan loss
reserve $ 6,155 $ 5,545 11.0% $ 6,042 $ 5,589 8.1%
Average
deposits $ 600,616 $ 566,729 6.0% $ 596,377 $ 556,468 7.2%
TAX DATA
Tax-exempt
muni income $ 404 $ 482 -16.2% $ 826 $ 970 -14.8%
Tax-exempt
BOLI income $ 189 $ 86 119.8% $ 417 $ 86 384.9%
Interest
income
fully tax
equivalent $ 10,532 $ 10,778 -2.3% $ 20,888 $ 21,414 -2.5%
BALANCE SHEET June 30, Dec. 31, June 30, Annual
($ in 000s, unaudited) 2003 2002 2002 Change
ASSETS
Cash and Due from Banks $ 43,419 $ 55,819 $ 37,923 14.5%
Securities and Fed Funds Sold 87,699 85,758 103,447 -15.2%
Loans
Agricultural 12,087 11,030 13,251 -8.8%
Commercial & Industrial 84,558 81,243 81,113 4.2%
Real Estate 390,552 347,377 339,594 15.0%
SBA Loans 20,715 21,918 19,456 6.5%
Consumer Loans 39,232 39,825 40,231 -2.5%
Credit Card Balances 10,384 11,225 10,498 -1.1%
-------- --------- --------
Gross Loans 557,528 512,618 504,143 10.6%
Deferred Loan Fees (1,626) (1,024) (862) 88.6%
-------- --------- --------
Loans Net of Deferred Fees 555,902 511,594 503,281 10.5%
Allowance for Loan Losses (5,976) (5,939) (5,800) 3.0%
Net Loans 549,926 505,655 497,481 10.5%
Bank Premises & Equipment 17,379 17,578 14,932 16.4%
Other Assets 36,564 36,304 24,147 51.4%
Total Assets $734,987 $ 701,114 $677,930 8.4%
LIABILITIES & CAPITAL
Demand Deposits $175,790 $ 166,574 $147,014 19.6%
NOW / Savings Deposits 98,812 86,345 83,967 17.7%
Money Market Deposits 135,789 123,178 109,544 24.0%
Time Certificates of Deposit 199,390 229,608 233,978 -14.8%
Total Deposits 609,781 605,705 574,503 6.1%
Trust-Preferred Securities 15,000 15,000 15,000 0.0%
Other Interest-Bearing
Liabilities 48,477 19,323 30,953 56.6%
Total Interest-Bearing
Liabilities 673,258 640,028 620,456 8.5%
Other Liabilities 4,834 7,799 7,411 -34.8%
Total Capital 56,895 53,287 50,063 13.6%
Total Liabilities & Capital $734,987 $ 701,114 $677,930 8.4%
CREDIT QUALITY DATA:
Non-Accruing Loans $ 8,700 $ 4,329 $ 6,861 26.8%
Over 90 Days Past Due and Still
Accruing - 2,138 1,966
Other Real Estate Owned 1,485 1,421 1,388 7.0%
-------- --------- --------
Total Non-Performing Assets $ 10,185 $ 7,888 $ 10,215 -0.3%
Quarterly net loan charge-offs
(recoveries) $ 681 $ 278 $ 530
Nonperforming loans / total
loans 1.56% 1.26% 1.75%
Nonperforming assets / total
assets 1.39% 1.13% 1.51%
Allowance for loan losses /
total loans 1.07% 1.16% 1.15%
OTHER PERIOD END STATISTICS:
Stockholders' equity / total
assets 7.7% 7.6% 7.4%
Loan to deposit ratio 91.4% 84.6% 87.8%
Non-interest bearing deposits
to total deposits 28.8% 27.5% 25.6%
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