Bank of the Sierra Reports Earnings Growth for the Fourth Quarter and Full Year 2021
Bank of the Sierra, a Central Valley-based bank with nine branches in the tri-county region, reported record profits for 2021, with net income up more than 20% from a year earlier.
Sierra Bancorp is the parent company of Bank of the Sierra and is headquartered in Porterville, Tulare County. It reported net income of $43 million, or $2.80 per diluted share, for the full calendar year of 2021, compared with $35.4 million, or $2.32 per diluted share, for 2020, according to its January 24 earnings release. The bank said the “most significant line item changes” were a $12.2 million decline in the provision for loan and lease losses, as well as an increase of $4.2 million, or 4% , net interest income.
Sierra Bancorp reported net income of $9.6 million, or 63 cents per diluted share, for the fourth quarter of 2021. That’s up from its reported net income of $9 million, or 58 cents. per diluted share, in the same quarter of 2020.
The bank said it recorded a negative provision of $1.2 million for loan and lease losses in the fourth quarter of 2021, and “lower labor and benefits costs partially offset by higher litigation costs and related legal reservations”.
Gross loan balances decreased by more than $473 million during 2021, primarily due to a $206.5 million decrease in mortgage warehouse utilization, an $87.6 million decrease dollars in federal pandemic-related Paycheck Protection Program loans, primarily due to loan forgiveness, and a net decrease of more than $155 million in secured home loans, mostly from construction and renovations. other commercial real estate loans, according to Sierra Bancorp’s earnings release.
“Our tireless work is reflected in our fourth quarter results which cap off a record year for revenue,” Sierra Bancorp President and CEO Kevin McPhail said in a press release.