Sierra Bancorp in Porterville, Calif., offset the costs of selling securities with proceeds from a sale-leaseback transaction.
The $3.7 billion-asset company’s said in a press release that its fourth-quarter earnings fell by 11% from a year earlier, to $6.3 million.
Sierra sold $196.7 million of bonds at a $14.5 million loss. Though the sales took place in January, the company decided to absorb the loss during the fourth quarter. Proceeds were used to pay down short-term borrowings.
The company also agreed to sell 13 branches. The first tranche closed in December for a $15.3 million gain, while the next tranche is expected to close this quarter.
“These strategies enhanced capital, and we expect to improve our financial metrics, including margin, liquidity and return on average assets and equity,” Kevin McPhail, Sierra’s president and CEO, said in the release.