Market Overview

Sierra Bancorp Reports Earnings

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Sierra Bancorp (NASDAQ:BSRR), parent of Bank of the Sierra, today
announced its unaudited financial results for the three- and six-month
periods ended June 30, 2018. Sierra Bancorp reported consolidated net
income of $7.992 million for the second quarter of 2018, which is the
highest quarterly net income ever reported by the Company and represents
an increase of $2.790 million, or 54%, relative to the second quarter of
2017. The lift in net income is primarily the result of improvement in
net interest income, a substantial net gain on the sale of other real
estate owned ("OREO") in the second quarter of 2018, and a lower tax
accrual rate, partially offset by higher personnel costs and increases
in certain other overhead expenses. The Company's return on average
assets was 1.34% in the second quarter of 2018, return on average equity
was 12.44%, and diluted earnings per share were $0.52.

For the first six months of 2018 the Company recognized net income of
$14.702 million, which reflects an increase of 51% relative to the same
period in 2017. The Company's financial performance metrics for the
first half of 2018 include an annualized return on average equity of
11.53%, a return on average assets of 1.25%, and diluted earnings per
share of $0.95.

Total assets, loans and deposits reached record levels at June 30, 2018
due to continued strong growth. Assets totaled $2.425 billion at
period-end, representing an increase of $85 million, or 4%, for the
first half of 2018. The increase in assets resulted primarily from
organic growth in real estate loans and agricultural production loans
and a higher level of balances due from banks, partially offset by a
drop in balances outstanding on mortgage warehouse lines and commercial
loan runoff. Gross loans totaled $1.624 billion at June 30, 2018,
representing an increase of $67 million, or 4%, during the first six
months of the year. Total nonperforming assets were reduced by over $4
million, or 45%, during the first six months due primarily to the sale
of OREO in the second quarter. Deposits were $2.088 billion at June 30,
2018, representing a year-to-date increase of close to $100 million, or
5%, including deposits from our Lompoc branch purchase which totaled $38
million on the acquisition date. Non-deposit borrowings were reduced by
$13 million.

"Goals should never be easy; they should force you to work even if
they are uncomfortable at the time."

– Michael Phelps

"We are excited to see another quarter with strong results, including
the highest quarterly net income in the Bank's history. Assets, loans
and deposits also reached record levels because our team continues to
work diligently to provide exceptional community banking throughout our
markets," observed Kevin McPhaill, President and CEO. "While these
results are great, we feel that it is important to constantly look for
opportunities to grow and expand our presence both organically and
through additional acquisitions, and we remain optimistic as we look to
the remainder of 2018," he concluded.

Financial Highlights

As noted above, net income increased by $2.790 million, or 54%, for the
second quarter of 2018 relative to the second quarter of 2017, and by
$4.948 million, or 51%, for the first six months of 2018 as compared to
the same period in 2017. Significant variances in the components of
pre-tax income and in our provision for income taxes, including some
items of a nonrecurring nature, are noted below.

Net interest income increased by $4.960 million, or 28%, for the second
quarter, and $9.837 million, or 28%, for the first half due to growth in
average interest-earning assets totaling $311 million, or 17%, for the
second quarter of 2018 over the second quarter of 2017, and growth of
$319 million, or 17%, for the first half of 2018 over the first half of
2017. Organic growth was a factor in the increase in average earning
assets, but the comparative results were also materially affected by our
acquisition of Ojai Community Bank in the fourth quarter of 2017. The
favorable impact of higher interest-earning assets was enhanced by an
increase in our net interest margin totaling 31 basis points for the
comparative quarters, and 30 basis points for the year-to-date period.
Our net interest margin improvement reflects the fact that loan yields
have increased more rapidly than deposit rates as market interest rates
have gone up, as well as the fact that our acquisition resulted in
strong growth in loans relative to lower-yielding investment balances.
The comparative results were also impacted by non-recurring interest
income, which totaled $125,000 in the second quarter of 2018 relative to
$83,000 in the second quarter of 2017, and $227,000 in the first half of
2018 as compared to $219,000 in the first half of 2017. Moreover,
discount accretion on loans from whole-bank acquisitions enhanced our
net interest margin by approximately 11 basis points in the second
quarter of 2018 as compared to five basis points in the second quarter
2017, and eight basis points for the first six months of 2018 relative
to six basis points in the first six months of 2017.

The Company recorded a $300,000 loan loss provision in both the second
quarter of 2018 and the second quarter of 2017, bringing year-to-date
loan loss provisions to $500,000 in 2018 and $300,000 for 2017. The 2018
provision was deemed necessary subsequent to our determination of the
appropriate level for our allowance for loan and lease losses, taking
into consideration overall credit quality, growth in outstanding loan
balances and reserves required for specifically identified impaired loan
balances.

Total non-interest income reflects increases of $65,000 for the
quarterly comparison and the comparative year-to-date results. Service
charges on deposits were up 9% for the second quarter of 2018 and 12%
for the first six months of 2018 relative to 2017, due to fees earned on
deposit accounts added over the past year as well as the
reclassification of certain income from other non-interest income to
service charges for 2018. BOLI income increased for the second quarter
of 2018 but declined for the first six months of 2018 relative to 2017,
due to fluctuations in income on BOLI associated with deferred
compensation plans. Other non-interest income was lower for both the
quarter and year-to-date comparisons due in part to the income
reclassification noted above, but mainly because of pass-through
expenses associated with additional investments in low-income housing
tax credit funds and other limited partnerships. Those expenses are
netted out of revenue.

Total non-interest expense was up by $2.203 million, or 15%, for the
second quarter of 2018 relative to the second quarter of 2017 and $4.389
million, or 14%, for the comparative six-month periods. Non-recurring
acquisition costs included in non-interest expense totaled $151,000 in
the second quarter of 2018 relative to $166,000 in the second quarter of
2017, and $437,000 for the first six months of 2018 as compared to
$161,000 for the first six months of 2017. Salaries and benefits
increased by $1.744 million, or 24%, for the second quarter and $3.042
million, or 20%, for the first half, due in large part to expenses for
employees retained subsequent to our acquisitions, staffing costs for de
novo branch offices that commenced operations in 2017, salary
adjustments in the normal course of business, costs for non-acquisition
related staff additions, and a sizeable increase in group health
insurance costs.

Total occupancy expense increased by $216,000, or 10%, for the second
quarter and $244,000, or 5%, for the first six months, due primarily to
ongoing occupancy costs associated with a higher number of branches.
Other non-interest expense was up by $243,000, or 4%, for the second
quarter and $1.103 million, or 10%, for the year-to-date comparison.
This line item includes the nonrecurring acquisition costs noted above,
and it also reflects higher operating costs stemming from more branches,
an increase in amortization expense associated with core deposit
intangibles created pursuant to our acquisitions, and other increases in
the normal course of business. The increases were partially offset by a
$713,000 gain on sale of OREO in the second quarter of 2018.

The Company's provision for income taxes was 25% of pre-tax income in
the second quarter of 2018 relative to 33% in the second quarter of
2017, and 24% for the first six months of 2018 as compared to 31% for
the first six months of 2017. The lower rate in 2018 is consistent with
the reduction in our Federal income tax rate.

Balance sheet changes during the first half of 2018 include an increase
in total assets of $85 million, or 4%, due to a higher level of balances
due from banks and organic growth in loan balances. Cash and due from
banks was up $15 million, or 21%, due to an $8 million increase in our
interest-earning balance held at the Federal Reserve Bank and a $7
million increase in other clearing-related balances. Gross loans
increased by $67 million, or 4%, due to strong organic growth in
non-agricultural real estate loans and agricultural production loans
which were up $111 million, or 10%, and $7 million, or 14%,
respectively. Those increases were partially offset by a drop of $8
million, or 6%, in commercial loans and a decline of $42 million, or
31%, in mortgage warehouse loans, which went down because the
utilization rate on mortgage warehouse lines dropped to 25% at June 30,
2018 from 34% at December 31, 2017 and we exited a couple of
relationships. Consumer loans were also down by over $1 million, or 12%.
While we have experienced a higher level of real-estate secured and
agricultural lending activity in recent periods and our pipeline of
loans in process of approval remains relatively robust, no assurance can
be provided with regard to future loan growth as payoffs remain at
relatively high levels and mortgage warehouse loan volumes are difficult
to predict.

Total nonperforming assets, comprised of non-accrual loans and
foreclosed assets, were reduced by $4 million, or 45%, during the first
half of 2018 due to the sale of over $3 million in OREO, and an $870,000
drop in non-accruing loans resulting from net charge-offs, payoffs and
upgrades. The Company's ratio of nonperforming assets to loans plus
foreclosed assets also fell to 0.32% at June 30, 2018 from 0.60% at
December 31, 2017. All of the Company's impaired assets are periodically
reviewed, and are either well-reserved based on current loss
expectations or are carried at the fair value of the underlying
collateral, net of expected disposition costs. In addition to
nonperforming assets, the Company had $12 million in loans classified as
restructured troubled debt (TDRs) that were included with performing
loans as of June 30, 2018.

The Company's allowance for loan and lease losses was $9.1 million at
June 30, 2018, a slight increase relative to December 31, 2017. The
increase came from the addition of $500,000 via a loan loss provision,
less the charge-off of $407,000 in previously-established reserves
against the allowance for loan and lease losses. Because of growth in
our loan portfolio, the allowance fell to 0.56% of total loans at June
30, 2018 from 0.58% at December 31, 2017. It should be noted that our
need for reserves has been favorably impacted by acquired loans, which
were booked at their fair values on the acquisition dates and thus did
not initially require a loan loss allowance. Furthermore, loss reserves
allocated to mortgage warehouse loans are relatively low because we have
not experienced any losses in that portfolio segment. Management's
detailed analysis indicates that the Company's allowance for loan and
lease losses should be sufficient to cover credit losses inherent in
loan and lease balances outstanding as of June 30, 2018, but no
assurance can be given that the Company will not experience substantial
future losses relative to the size of the allowance.

Deposit balances reflect growth of $100 million, or 5%, during the first
half of 2018, inclusive of Lompoc branch deposits and seasonal increases
in commercial deposits. Lompoc branch deposits consisted of $32 million
in non-maturity deposits and $6 million in time deposits at the
acquisition date of May 18, 2018. Junior subordinated debentures
increased slightly from the accretion of the discount on trust-preferred
securities that were part of the Coast Bancorp acquisition, but other
non-deposit borrowings were reduced by $13 million, or 43%, during the
period.

Total capital was $260 million at June 30, 2018, reflecting a slight
increase relative to year-end 2017 due to capital from stock options
exercised and the addition of net income, net of dividends paid and a
$6.2 million increase in our accumulated other comprehensive loss. There
were no share repurchases executed by the Company during the first six
months of 2018.

About Sierra Bancorp

Sierra Bancorp is the holding company for Bank of the Sierra (www.bankofthesierra.com),
which is in its 41st year of operations and is the largest independent
bank headquartered in California's South San Joaquin Valley. Bank of the
Sierra is a community-centric regional bank, which delivers a broad
range of retail and commercial banking services through a network of
full-service branches located in the counties of Tulare, Kern, Kings,
Fresno, Los Angeles, Ventura, San Luis Obispo, and Santa Barbara. The
Bank also maintains a cyber branch, and offers specialized credit
services through Agricultural, SBA, and Real Estate Industries loan
centers. Bank of the Sierra holds a Bauer Financial 5-star rating, an
honor only awarded to the strongest financial institutions in the
country.

Forward-Looking Statements

The statements contained in this release that are not historical
facts are forward-looking statements 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 including but not limited to the health
of the national and local economies, the Company's ability to attract
and retain skilled employees, customers' service expectations, the
Company's ability to successfully deploy new technology, the success of
acquisitions and branch expansion, changes in interest rates, loan
portfolio performance, and other factors detailed in the Company's SEC
filings, including the "Risk Factors" and "Management's Discussion and
Analysis of Financial Condition and Results of Operations" sections of
the Company's most recent Form 10-K and Form 10-Q.

 
CONSOLIDATED INCOME STATEMENT                  
(in $000's, unaudited) Qtr Ended: 2Q18 vs Qtr Ended: 2Q18 vs Six Months Ended: YTD18 vs
  6/30/2018     3/31/2018   1Q18     6/30/2017   2Q17     6/30/2018   6/30/2017   YTD17
Interest Income $ 24,883   $ 23,476 +6 % $ 19,055 +31 %   $ 48,360   $ 36,958 +31 %
Interest Expense   2,083   1,716 +21 %   1,215 +71 %   3,800   2,235 +70 %
Net Interest Income 22,800 21,760 +5 % 17,840 +28 % 44,560 34,723 +28 %
 

Provision for Loan & Lease Losses

  300   200 +50 %   300 0 %   500   300 +67 %
Net Int after Provision 22,500 21,560 +4 % 17,540 +28 % 44,060 34,423 +28 %
 
Service Charges 3,027 2,946 +3 % 2,776 +9 % 5,974 5,348 +12 %
BOLI Income 423 204 +107 % 358 +18 % 626 811 -23 %
Gain (Loss) on Investments - - 0 % 58 -100 % - 66 -100 %
Other Non-Interest Income   1,979   1,983 0 %   2,172 -9 %   3,963   4,273 -7 %
Total Non-Interest Income 5,429 5,133 +6 % 5,364 +1 % 10,563 10,498 +1 %
 
Salaries & Benefits 8,997 9,183 -2 % 7,253 +24 % 18,180 15,138 +20 %
Occupancy Expense 2,451 2,348 +4 % 2,235 +10 % 4,799 4,555 +5 %
Other Non-Interest Expenses   5,846   6,356 -8 %   5,603 +4 %   12,202   11,099 +10 %
Total Non-Interest Expense 17,294 17,887 -3 % 15,091 +15 % 35,181 30,792 +14 %
 
Income Before Taxes 10,635 8,806 +21 % 7,813 +36 % 19,442 14,129 +38 %
Provision for Income Taxes   2,643   2,096 +26 %   2,611 +1 %   4,740     4,375 +8 %

Net Income

$

7,992

$ 6,710 +19 % $ 5,202 +54 % $ 14,702 $ 9,754 +51 %
 
TAX DATA
Tax-Exempt Muni Income $ 1,018 $ 1,016 0 % $ 932 +9 % $ 2,034 $ 1,737 +17 %
Interest Income - Fully Tax Equiv $ 25,154 $ 23,746 +6 % $ 19,557 +29 % $ 48,901 $ 37,893 +29 %
 
NET CHARGE-OFFS   $ 155   $ 252   -38 %     $ 658   -76 %     $ 407   $ 771   -47 %
Note: An "NM" designation indicates that the percentage change is
"Not Meaningful," likely due to the fact that numbers for the
comparative periods are of opposite signs or because the denominator
is zero
 
 
PER SHARE DATA                  
(unaudited) Qtr Ended: 2Q18 vs Qtr Ended: 2Q18 vs Six Months Ended: YTD18 vs
6/30/2018   3/31/2018   1Q18   6/30/2017   2Q17   6/30/2018   6/30/2017   YTD17
Basic Earnings per Share $0.52   $0.44 +18% $0.38 +37% $0.96   $0.71 +35%
Diluted Earnings per Share $0.52 $0.44 +18% $0.37 +41% $0.95 $0.70 +36%
Common Dividends $0.16 $0.16 0% $0.14 +14% $0.32 $0.28 +14%
 
Wtd. Avg. Shares Outstanding 15,254,575 15,232,696 0% 13,831,345 +10% 15,243,697 13,816,576 +10%
Wtd. Avg. Diluted Shares 15,429,129 15,412,168 0% 14,010,328 +10% 15,420,886 14,009,485 +10%
 
Book Value per Basic Share (EOP) $17.06 $16.75 +2% $15.62 +9% $17.06 $15.62 +9%
Tangible Book Value per Share (EOP) $14.81 $14.56 +2% $14.84 0% $14.81 $14.84 0%
 
Common Shares Outstanding (EOP)   15,258,100   15,246,780   0%   13,832,549   +10%   15,258,100   13,832,549   +10%
 
KEY FINANCIAL RATIOS      
(unaudited) Qtr Ended: Qtr Ended: Six Months Ended:
6/30/2018   3/31/2018 6/30/2017 6/30/2018   6/30/2017
Return on Average Equity 12.44% 10.61% 9.75% 11.53% 9.31%
Return on Average Assets 1.34% 1.16% 1.02% 1.25% 0.98%
Net Interest Margin (Tax-Equiv.) 4.24% 4.20% 3.93% 4.22% 3.92%
Efficiency Ratio (Tax-Equiv.) 60.44% 65.72% 63.30% 63.01% 66.18%
Net C/O's to Avg Loans (not annualized)   0.01%   0.02%       0.05%       0.03%   0.06%    
 
 
STATEMENT OF CONDITION              
(balances in $000's, unaudited)
Jun '18 vs Jun '18 vs Jun '18 vs
ASSETS 6/30/2018   3/31/2018   Mar '18   12/31/2017   Dec '17   6/30/2017   Jun '17
Cash and Due from Banks $ 85,102 $ 63,509 +34% $ 70,137 +21% $ 77,175 +10%
Investment Securities 559,968 563,582 -1% 558,329 0% 579,581 -3%
 
Real Estate Loans (non-Agricultural) 1,196,841 1,147,234 +4% 1,086,200 +10% 851,431 +41%
Agricultural Real Estate Loans 141,475 142,929 -1% 140,516 +1% 136,927 +3%
Agricultural Production Loans 53,339 54,270 -2% 46,796 +14% 54,436 -2%
Comm'l & Industrial Loans & Leases 127,710 129,771 -2% 135,662 -6% 118,898 +7%
Mortgage Warehouse Lines 95,645 108,573 -12% 138,020 -31% 126,633 -24%
Consumer Loans   9,334     9,439   -1%   10,626   -12%   10,914   -14%
Gross Loans & Leases 1,624,344 1,592,216 +2% 1,557,820 +4% 1,299,239 +25%
Deferred Loan & Lease Fees   2,920     2,953   -1%   2,774   +5%   2,768   +5%
Loans & Leases Net of Deferred Fees 1,627,264 1,595,169 +2% 1,560,594 +4% 1,302,007 +25%
Allowance for Loan & Lease Losses   (9,136 )   (8,991 ) +2%   (9,043 ) +1%   (9,230 ) -1%
Net Loans & Leases 1,618,128 1,586,178 +2% 1,551,551 +4% 1,292,777 +25%
 
Bank Premises & Equipment 30,182 29,060 +4% 29,388 +3% 28,438 +6%
Other Assets   132,063     131,195   +1%   130,893   +1%   100,009   +32%
Total Assets $ 2,425,443   $ 2,373,524   +2% $

2,340,298

  +4% $ 2,077,980   +17%
 
LIABILITIES & CAPITAL
Non-Interest Demand Deposits $ 674,283 $ 642,363 +5% $ 635,434 +6% $ 557,617 +21%
Int-Bearing Transaction Accounts 577,054 559,084 +3% 523,590 +10% 541,176 +7%
Savings Deposits 301,322 301,888 0% 283,126 +6% 232,456 +30%
Money Market Deposits 151,736 157,006 -3% 171,611 -12% 119,714 +27%
Customer Time Deposits 383,527 376,289 +2% 374,625 +2% 340,894 +13%
Wholesale Brokered Deposits   -     -   0%   -   0%   -   0%
Total Deposits 2,087,922 2,036,630 +3% 1,988,386 +5% 1,791,857 +17%
 
Junior Subordinated Debentures 34,677 34,633 0% 34,588 0% 34,499 +1%
Other Interest-Bearing Liabilities   17,239     18,629   -7%   30,050   -43%   11,296   +53%
Total Deposits & Int.-Bearing Liab. 2,139,838 2,089,892 +2% 2,053,024 +4% 1,837,652 +16%
 
Other Liabilities 25,367 28,312 -10% 31,332 -19% 24,205 +5%
Total Capital   260,238     255,320   +2%   255,942   +2%   216,123   +20%
Total Liabilities & Capital   $ 2,425,443     $ 2,373,524     +2%   $

2,340,298

    +4%   $ 2,077,980     +17%
 
 

GOODWILL & INTANGIBLE ASSETS

             
(balances in $000's, unaudited) Jun '18 vs Jun '18 vs Jun '18 vs
6/30/2018     3/31/2018     Mar '18   12/31/2017     Dec '17   6/30/2017     Jun '17
Goodwill 27,357 27,357 0% 27,357 0% 8,268 +231%
Core Deposit Intangible 6,919 6,004 +15% 6,234 +11% 2,589 +167%
Total Intangible Assets  

34,276

   

33,361

    +3%  

33,591

    +2%  

10,857

    +216%
 
CREDIT QUALITY
(balances in $000's, unaudited) Jun '18 vs Jun '18 vs Jun '18 vs
6/30/2018     3/31/2018     Mar '18   12/31/2017     Dec '17   6/30/2017     Jun '17
Non-Accruing Loans $ 3,093 $ 3,089 0% $ 3,963 -22% $ 5,652 -45%
Foreclosed Assets   2,112   5,371 -61%   5,481 -61%   2,141 -1%
Total Nonperforming Assets $ 5,205 $ 8,460 -38% $ 9,444 -45% $

7,793

-33%
 
Performing TDR's (not incl. in NPA's) $ 11,981 $ 11,185 +7% $ 12,413 -3% $ 13,640 -12%
 
Non-Perf Loans to Gross Loans 0.19 % 0.19 % 0.25 % 0.44 %
NPA's to Loans plus Foreclosed Assets 0.32 % 0.53 % 0.60 % 0.60 %
Allowance for Ln Losses to Loans     0.56 %     0.56 %         0.58 %         0.71 %    
 

SELECT PERIOD-END STATISTICS

(unaudited)
6/30/2018   3/31/2018 12/31/2017 6/30/2017
Shareholders Equity / Total Assets 10.7 % 10.8 % 10.9 % 10.4 %
Gross Loans / Deposits 77.8 % 78.2 % 78.3 % 72.5 %
Non-Int. Bearing Dep. / Total Dep.     32.3 %     31.5 %         32.0 %         31.1 %    
 
 
AVG BAL SHEET, INTEREST INC/EXP, & YIELD/RATE                  
(balances in $000's, unaudited)   For the quarter ended For the quarter ended For the quarter ended
June 30, 2018 March 31, 2018 June 30, 2017

Average
Balance

 

Income/
Expense

 

Yield/
Rate

Average
Balance

 

Income/
Expense

 

Yield/
Rate

Average
Balance

 

Income/
Expense

 

Yield/
Rate

Assets  
Investments:
Federal funds sold/due from time $ 13,080 $ 61 1.84% $ 30,476 $ 118 1.55% $ 53,965 $ 139 1.02%
Taxable 424,446 2,300 2.14% 425,075 2,338 2.20% 437,470 2,147 1.94%
Non-taxable   141,224     1,018 3.61%   141,579     1,016 3.63%   131,972     932 4.30%
Total investments 578,750 3,379 2.49% 597,130 3,472 2.51% 623,407 3,218 2.36%
 
Loans and Leases:
Real estate 1,325,251 17,800 5.39% 1,254,596 16,644 5.38% 969,925 12,207 5.05%
Agricultural Production 53,867 753 5.61% 50,131 658 5.32% 50,942 620 4.88%
Commercial 124,320 1,489 4.80% 127,316 1,379 4.39% 116,719 1,577 5.42%
Consumer 9,760 297 12.21% 10,493 293 11.32% 11,577 307 10.64%
Mortgage warehouse lines 89,633 1,126 5.04% 83,348 978 4.76% 97,191 1,077 4.44%
Other   2,503     39 6.25%   3,013     52 7.00%   3,309     49 5.94%
Total loans and leases   1,605,334     21,504 5.37%   1,528,897     20,004 5.31%   1,249,663     15,837 5.08%
Total interest earning assets   2,184,084   $ 24,883 4.62%   2,126,027   $ 23,476 4.53%   1,873,070   $ 19,055 4.19%
Other earning assets 10,436 10,195 8,689
Non-earning assets   205,446   201,397   156,643
Total assets $ 2,399,966 $ 2,337,619 $ 2,038,402
 
Liabilities and shareholders' equity
Interest bearing deposits:
Demand deposits $ 139,546 $ 109 0.31% $ 116,829 $ 88 0.31% $ 157,482 $ 122 0.31%
NOW 422,619 116 0.11% 409,198 117 0.12% 374,304 104 0.11%
Savings accounts 301,528 80 0.11% 293,716 76 0.10% 228,859 58 0.10%
Money market 153,143 37 0.10% 164,824 42 0.10% 118,172 23 0.08%
Time Deposits   380,778     1,252 1.32%   375,718     995 1.07%   341,442     561 0.66%
Total interest bearing deposits 1,397,614 1,594 0.46% 1,360,285 1,318 0.39% 1,220,259 868 0.29%
Borrowed funds:
Junior Subordinated Debentures 34,651 436 5.05% 34,606 385 4.51% 34,475 337 3.92%
Other Interest-Bearing Liabilities   23,719     53 0.90%   10,759     13 0.49%   10,233     10 0.39%
Total borrowed funds   58,370     489 3.36%   45,365     398 3.56%   44,708     347 3.11%
Total interest bearing liabilities 1,455,984 $ 2,083 0.57% 1,405,650 $ 1,716 0.50% 1,264,967 $ 1,215 0.39%
Demand deposits - non-interest bearing 656,486 643,524 533,570
Other liabilities 29,786 31,936 25,945
Shareholders' equity   257,710   256,509   213,920
Total liabilities and shareholders' equity $ 2,399,966 $ 2,337,619 $ 2,038,402
 
Interest income/interest earning assets 4.62% 4.53% 4.19%
Interest expense/interest earning assets     0.38%       0.33%       0.26%
Net interest income and margin $ 22,800 4.24% $ 21,760 4.20% $ 17,840 3.93%
 
NOTE: Where impacted by non-taxable income, yields and net interest
margins have been computed on a tax equivalent basis utilizing a 21%
tax rate for periods ending after December 31, 2017, and a 35% tax
rate for periods ending on or before December 31, 2017

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