Sierra Bancorp reported unaudited consolidated earnings results for the fourth quarter and the year ended December 31, 2014. For the quarter, the company reported interest income of $14.509 million against $13.188 million a year ago. Net interest income was $13.868 million against $12.445 million a year ago. Income before taxes was $5.300 million against $4.764 million a year ago. Net income was $3.653 million against $3.869 million a year ago. Diluted earnings per share were $0.26 against $0.27 a year ago. Return on average equity was 7.73% against 8.53% a year ago. Return on average assets was 0.93% against 1.10% a year ago.

For the year, the company reported interest income was $55.121 million against $51.785 million a year ago. Net interest income was $52.325 million against $48.564 million a year ago. Income before taxes was $21.431 million against $16.462 million a year ago. Net income was $15.240 million against $13.369 million a year ago. Diluted earnings per share were $1.08 against $0.94 a year ago. Book value per basic share was $13.67 against $12.78 a year ago. Return on average equity was 8.18% against 7.56% a year ago. Return on average assets was 1.03% against 0.96% a year ago. The increase in net income over the prior year is the result of higher net interest income, gains on OREO, non-recurring investment gains and a reduced loss provision. These favorable variances were partially offset by non-recurring costs stemming from the company's acquisition of Santa Clara Valley Bank, lower deposit service charge income, higher costs resulting from the company's core software conversion in early 2014, higher salaries and benefits expense, and a higher tax accrual rate. Net income declined by $216,000, or 6%, in the fourth quarter of 2014 relative to the fourth quarter of 2013, but was up $1.871 million, or 14%, for the year in 2014 relative to 2013. The primary factors contributing to these variances include the following: An increase in net interest income; a reduced loss provision; non-recurring acquisition costs, which were offset in large part by non-recurring gains on OREO and investment securities; a drop in overdraft and returned item fees; non-recurring life insurance proceeds received in the fourth quarter of 2013; recurring acquisition-related expenses commencing mid-fourth quarter 2014, including personnel and occupancy costs; and ongoing costs associated with the company's core banking system conversion in February 2014.