UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 14A
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Securities Exchange Act of 1934
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SIERRA BANCORP
(Name of Registrant as Specified In Its Charter)
(Name of Person(s) Filing Proxy Statement, If other than the Registrant)
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SIERRA BANCORP
ESTB. 1977
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 factors such as:
Interest rate volatility Economic conditions Asset performance
Successful acquisition assimilation
Please see risk factors in BSRR’s SEC filing.
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 branch Five-year strategic plan includes potential new branches in fifteen locations (three new branches currently in process)
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 “Sierra Grant “ program, providing $125,000 or more annually in charitable donations to deserving organizations
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
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
Our Markets
California’s
Central Valley. . .
Fresno
Tulare Kings
Kern
. . . including Fresno, Tulare, Kings, and Kern Counties
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!
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 |
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
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 (Incl. Cash Div.): 18.79%
Declared Record Date Distributed Action Cost Basis/ Share 1 Orig. Share =
11/15/77 Initial Investment $10.00 1 share
05/22/80 05/22/80 06/15/80 2 for 1 Split $5.00 2 shares
10/23/80 10/23/80 10/23/80 10% Stock Dividend $4.55 2.2 shares
07/01/81 07/01/81 08/01/81 2 for 1 Split $2.27 4.4 shares
06/15/94 06/15/94 07/15/94 3 for 1 Split $0.76 13.2 shares
10/07/96 09/06/96 10/04/96 2 for 1 Split $0.38 26.4 shares
11/17/97 10/14/97 11/14/97 2 for 1 Split $0.19 52.8 shares
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)
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%
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
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
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
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
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
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
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 3%
Consumer 6%
RE—Commercial 49%
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%
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
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
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 the multi-community, independent bank of choice in our designated market areas by meeting the financial needs of the consumers, businesses and agri-businesses that we serve.
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 that employs the right people on the team.
4) To maintain a positive teamwork environment for our people which enables creativity, entrepreneurship and the opportunity for advancement.
5) To assist the communities we serve with their socioeconomic needs.
6) To be a disciplined institution of excellence.
NASDAQ: BSRR
SIERRA BANCORP