Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2022 | |
Document and Entity Information [Abstract] | |
Document Type | DEFR14A |
Entity Registrant Name | SIERRA BANCORP |
Entity Central Index Key | 0001130144 |
Amendment Flag | false |
Pay vs Performance Disclosure
Pay vs Performance Disclosure | 12 Months Ended | ||||
Dec. 31, 2022 USD ($) item | Dec. 31, 2021 USD ($) item | Dec. 31, 2020 USD ($) item | Dec. 31, 2019 USD ($) item | Dec. 31, 2018 USD ($) item | |
Pay vs Performance Disclosure [Table] | |||||
Pay vs Performance [Table Text Block] | Value of Initial Fixed $100 Investment Based On: Year Reported Total Compensation CEO 1 Total Compensation Actually Paid CEO 1,2 Average Reported Total Compensation Non-CEO NEOs 3 Average Total Compensation Actually Paid Non-CEO NEOs 2,3 Sierra Bancorp TSR Peer Group TSR 4 Net Income ('000s) Return on Average Equity (%) 2022 $ 1,416,620 $ 1,142,299 $ 785,401 $ 623,794 $ 94.14 $ 116.69 $ 33,659 10.66 % 2021 1,297,509 1,410,330 801,651 857,294 115.63 132.36 43,012 12.05 % 2020 1,735,320 1,818,743 1,053,152 1,097,658 98.37 95.08 35,444 10.80 % 2019 1,062,841 1,200,478 629,594 614,036 115.32 104.69 35,961 12.23 % 2018 949,875 984,927 590,714 505,731 92.56 83.44 29,677 11.37 % 1 The Company’s Principal Executive Officer was Kevin McPhaill for each year (2018-2022) included in the table. 2 For each of the Named Executive Officers for each year disclosed a reconciliation between Compensation Actually Paid and Reported Total Compensation is included following the footnotes to this table. 3 The Average Reported Compensation and Average Compensation Actually Paid for the Non-CEO NEOs consists of compensation to the reported Named Executive Officers, other than the CEO, in the 2019, 2020, 2021, 2022 and 2023 Proxy Statements. 2022 and 2021 Average Compensation includes compensation of Christopher Treece, Mike Olague, Hugh Boyle and Jennifer Johnson. 2020 Average Compensation includes compensation of Christopher Treece, Mike Olague, Matt Macia and Jennifer Johnson. 2019 Average Compensation includes compensation of Ken Taylor, Mike Olague, Matt Macia and James Gardunio. 2018 Average Compensation includes compensation of Ken Taylor, Mike Olague and James Gardunio. 4 The Peer Group selected for this TSR disclosure is the S&P U.S. Small Cap Banks Index as disclosed in Part II Item 5 of the Company’s Annual Report on Form 10-K as of December 31, 2022. | ||||
Company Selected Measure Name | Return on Average Equity | ||||
Named Executive Officers, Footnote [Text Block] | 1 The Company’s Principal Executive Officer was Kevin McPhaill for each year (2018-2022) included in the table. 2 For each of the Named Executive Officers for each year disclosed a reconciliation between Compensation Actually Paid and Reported Total Compensation is included following the footnotes to this table. 3 The Average Reported Compensation and Average Compensation Actually Paid for the Non-CEO NEOs consists of compensation to the reported Named Executive Officers, other than the CEO, in the 2019, 2020, 2021, 2022 and 2023 Proxy Statements. 2022 and 2021 Average Compensation includes compensation of Christopher Treece, Mike Olague, Hugh Boyle and Jennifer Johnson. 2020 Average Compensation includes compensation of Christopher Treece, Mike Olague, Matt Macia and Jennifer Johnson. 2019 Average Compensation includes compensation of Ken Taylor, Mike Olague, Matt Macia and James Gardunio. 2018 Average Compensation includes compensation of Ken Taylor, Mike Olague and James Gardunio. | ||||
Peer Group Issuers, Footnote [Text Block] | 4 The Peer Group selected for this TSR disclosure is the S&P U.S. Small Cap Banks Index as disclosed in Part II Item 5 of the Company’s Annual Report on Form 10-K as of December 31, 2022. | ||||
PEO Total Compensation Amount | $ 1,416,620 | $ 1,297,509 | $ 1,735,320 | $ 1,062,841 | $ 949,875 |
PEO Actually Paid Compensation Amount | $ 1,142,299 | 1,410,330 | 1,818,743 | 1,200,478 | 984,927 |
Adjustment To PEO Compensation, Footnote [Text Block] | The following table provides a reconciliation between Total Reported Compensation and Compensation Actually Paid for the Company’s CEO for 2018 through 2022. CEO 2022 2021 2020 2019 2018 Reported Total Compensation $ 1,416,620 $ 1,297,509 $ 1,735,320 $ 1,062,841 $ 949,875 Reported Equity Compensation (-) (249,998) (124,990) (623,630) (33,131) (29,700) Fair Value of Equity Awards Granted During the Year and Outstanding at Year-End (+) 249,060 124,944 797,325 19,100 900 Fair Value of Equity Awards Granted During Prior Years and Outstanding at Year-End (+/-) (216,997) 127,833 (83,168) 154,087 67,966 Fair Value of Equity Awards Granted During Prior Years and Vested During the Year (+/-) (37,873) 1,333 8,200 10,250 6,950 Reported Changes in Pension Value (-) (40,561) (37,141) (32,161) (29,344) (26,746) Service Cost for Pension Plan (+) 22,048 20,841 16,857 16,675 15,681 Compensation Actually Paid 1,142,299 1,410,330 1,818,743 1,200,478 984,927 | ||||
Non-PEO NEO Average Total Compensation Amount | $ 785,401 | 801,651 | 1,053,152 | 629,594 | 590,714 |
Non-PEO NEO Average Compensation Actually Paid Amount | $ 623,794 | 857,294 | 1,097,658 | 614,036 | 505,731 |
Adjustment to Non-PEO NEO Compensation Footnote [Text Block] | The following table provides a reconciliation between Total Reported Compensation and Compensation Actually Paid for the Average Non-CEO NEO for 2018 through 2022. Non-CEO NEOs 2022 2021 2020 2019 2018 Reported Total Compensation $ 785,401 $ 801,651 $ 1,053,152 $ 629,594 $ 590,714 Reported Equity Compensation (-) (149,965) (174,960) (459,087) (55,644) (29,700) Fair Value of Equity Awards Granted During the Year and Outstanding at Year-End (+) 149,402 182,244 531,550 41,738 900 Fair Value of Equity Awards Granted During Prior Years and Outstanding at Year-End (+/-) (135,239) 47,691 (36,157) 3,202 (49,243) Fair Value of Equity Awards Granted During Prior Years and Vested During the Year (+/-) (25,805) 667 8,200 7,687 6,950 Reported Changes in Pension Value (-) - - - (39,079) (47,166) Service Cost for Pension Plan (+) - - - 26,538 33,275 Compensation Actually Paid 623,794 857,294 1,097,658 614,036 505,731 | ||||
Compensation Actually Paid vs. Total Shareholder Return [Text Block] | The following graph illustrates the level the Total Shareholder return of a $100 investment made in both the Company’s stock and in a proportionately allocated investment in the common stock of the peer group over the five-year time horizon. Additionally, the graph includes the CAP of both the Company’s CEO and the average of the non-CEO NEOs over the five year time horizon. The Company’s TSR compared to the Peer Group TSR. The PEO and Other NEO’s Compensation Actually Paid to Company’s TSR. Between 2018 and 2019, CAP to the Company’s CEO and Other NEOs increased, largely as a result of hitting established performance targets and improved TSR experienced by the Company’s common stock in 2019, and the resulting increase in value of unexercised options. In 2020, CAP to both the Company’s CEO and other NEOs increased relative to 2019, despite a negative TSR recognized in 2020. The 2020 increase in CAP despite the negative TSR was a reflection of the Company’s transition from stock options to restricted stock as its primary equity-based compensation vehicle. Upon this transition, the Company provided initial grants for both retention as well as to better align executive interests with those of shareholders. These initial restricted stock grants were made to each of the named executive officers in August 2020 in an amount approximately equal to one year of base compensation with a 5-year vesting period. The decline in CAP in 2021 to both the CEO and other NEOs, despite positive TSR was largely a result of smaller restricted stock awards made in 2021 relative to 2020 although following Mr. Boyle’s hiring in December 2020, he was awarded a restricted stock grant of similar size in March 2021 as the other NEOs received in August 2020. The decline in CAP in 2022 to both the CEO and other NEOs was primarily a result of the decline in the value of the Company’s common stock as reflected in the TSR. As noted above, the Company’s TSR in 2022 underperformed the Peer Group, but in general, valuations of the common stock of publicly traded Banks declined in 2022. The decline in the valuations of bank stocks in 2022 reflected the uncertain economic environment characterized by the general increase in interest rates and the inversion of the yield curve. | ||||
Compensation Actually Paid vs. Net Income [Text Block] | The following graph illustrates the level of the Company’s net income over the five-year time horizon in comparison to the CAP of both the Company’s CEO and the average of the non-CEO NEOs. PEO and Other NEOs’ CAP and the Company’s Net Income. CAP to the CEO and other NEOs grew in 2019, directionally consistent with growth in income, but this growth in CAP was more of result in the improved valuation of the Company’s common stock as of December 31, 2019 relative to December 31, 2018 than it was a result of growth in net income. CAP of the CEO and other NEOs grew in 2020, despite a slight decline in net income. As noted above the growth in 2020 CAP was primarily a result of the significant restricted stock awards made to the NEOs in August of 2020, as the Company moved from stock options to restricted stock to better align interests of executives with those of shareholders. The decline in CAP in 2021 to the CEO and to other NEOs, relative to 2020, despite record earnings in 2021, was a result of a decline in the size of the restricted stock grants made in 2021, relative to 2020 as outlined earlier. The decline in CAP in 2022 to both the CEO and the other NEOs was primarily a result of a decline in the value of the Company’s common stock as reflected in the TSR for 2022, this decline in the TSR during 2022 was impacted by broad economic conditions but may have also been influenced by a decline in the Company’s earnings, primarily as result of charge-offs and requisite provision expense resulting from the deterioration of a single loan relationship. | ||||
Compensation Actually Paid vs. Company Selected Measure [Text Block] | The following graph illustrates the level of the Company’s ROAE over the five-year time horizon in comparison to the CAP of both the Company’s CEO and the average of the non-CEO NEOs. PEO and Other NEOs’ CAP and the Company’s ROAE The increase in CAP in 2019 was directionally consistent with the growth in ROAE we reported in 2019. While the growth in CAP was more attributable to the improved valuation of the Company’s common stock as of December 31, 2019 compared to December 31, 2018 that valuation may have been influenced by positive investor sentiment following the improvement in reported ROAE during 2019. During 2020, the Company’s ROAE declined relative to 2019 primarily due to increased provision expense following the onset of the COVID-19 pandemic. The growth in loan balances in 2020 and the related increase to net interest income were not enough to offset the increased provision expense brought about by COVID and 2020 ROAE declined relative to 2019. However, due to the significant initial grant of restricted stock awards made in 2020, as described above to better align executive’s interests with those of shareholders, growth in CAP did not correlate with the decline in ROAE. As economic conditions improved in 2021 and we saw continued strength in the credit of our loan portfolio we released reserves, which benefited earnings and ROAE. At the same time, the valuation of the Company’s stock improved, which influenced CAP. This improved valuation may have been influenced by the Company’s profitability as reflected in the growth in ROAE, but may have also reflected broad investor sentiment due to relatively stable economic conditions. The decline in CAP in 2022 reflects the deterioration in the value of the Company’s stock, which was likely the result of various investor concerns, including; the prospect of reduced future earnings following a series of accelerated Federal Reserve rate hikes in response to historically high inflation levels and the impact of the deterioration of a single significant loan relationship on the Company’s asset quality and earnings. | ||||
Total Shareholder Return Vs Peer Group [Text Block] | The following graph illustrates the level the Total Shareholder return of a $100 investment made in both the Company’s stock and in a proportionately allocated investment in the common stock of the peer group over the five-year time horizon. Additionally, the graph includes the CAP of both the Company’s CEO and the average of the non-CEO NEOs over the five year time horizon. The Company’s TSR compared to the Peer Group TSR. The PEO and Other NEO’s Compensation Actually Paid to Company’s TSR. Between 2018 and 2019, CAP to the Company’s CEO and Other NEOs increased, largely as a result of hitting established performance targets and improved TSR experienced by the Company’s common stock in 2019, and the resulting increase in value of unexercised options. In 2020, CAP to both the Company’s CEO and other NEOs increased relative to 2019, despite a negative TSR recognized in 2020. The 2020 increase in CAP despite the negative TSR was a reflection of the Company’s transition from stock options to restricted stock as its primary equity-based compensation vehicle. Upon this transition, the Company provided initial grants for both retention as well as to better align executive interests with those of shareholders. These initial restricted stock grants were made to each of the named executive officers in August 2020 in an amount approximately equal to one year of base compensation with a 5-year vesting period. The decline in CAP in 2021 to both the CEO and other NEOs, despite positive TSR was largely a result of smaller restricted stock awards made in 2021 relative to 2020 although following Mr. Boyle’s hiring in December 2020, he was awarded a restricted stock grant of similar size in March 2021 as the other NEOs received in August 2020. The decline in CAP in 2022 to both the CEO and other NEOs was primarily a result of the decline in the value of the Company’s common stock as reflected in the TSR. As noted above, the Company’s TSR in 2022 underperformed the Peer Group, but in general, valuations of the common stock of publicly traded Banks declined in 2022. The decline in the valuations of bank stocks in 2022 reflected the uncertain economic environment characterized by the general increase in interest rates and the inversion of the yield curve. | ||||
Tabular List [Table Text Block] | The most important metrics impacting 2022 Compensation Actually Paid to the Company’s Named Executive Officers is detailed in the following table. Most Important Financial and Non-Financial Measures Impacting Executive Compensation Actually Paid in 2022 Net Income Community Reinvestment Act Compliance Rating Return on Average Assets Return on Average Equity | ||||
Total Shareholder Return Amount | $ 94.14 | 115.63 | 98.37 | 115.32 | 92.56 |
Peer Group Total Shareholder Return Amount | 116.69 | 132.36 | 95.08 | 104.69 | 83.44 |
Net Income (Loss) | $ 33,659,000 | $ 43,012,000 | $ 35,444,000 | $ 35,961,000 | $ 29,677,000 |
Company Selected Measure Amount | item | 10.66 | 12.05 | 10.80 | 12.23 | 11.37 |
PEO Name | Kevin McPhaill | ||||
Measure [Axis]: 1 | |||||
Pay vs Performance Disclosure [Table] | |||||
Measure Name | Net Income | ||||
Measure [Axis]: 2 | |||||
Pay vs Performance Disclosure [Table] | |||||
Measure Name | Community Reinvestment Act Compliance Rating | ||||
Measure [Axis]: 3 | |||||
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Measure Name | Return on Average Assets | ||||
Measure [Axis]: 4 | |||||
Pay vs Performance Disclosure [Table] | |||||
Measure Name | Return on Average Equity | ||||
PEO [Member] | Reported Equity Compensation | |||||
Pay vs Performance Disclosure [Table] | |||||
Adjustment to Compensation Amount | $ (249,998) | $ (124,990) | $ (623,630) | $ (33,131) | $ (29,700) |
PEO [Member] | Fair Value of Equity Awards Granted During the Year and Outstanding at Year-End | |||||
Pay vs Performance Disclosure [Table] | |||||
Adjustment to Compensation Amount | 249,060 | 124,944 | 797,325 | 19,100 | 900 |
PEO [Member] | Fair Value of Equity Awards Granted During Prior Years and Outstanding at Year-End | |||||
Pay vs Performance Disclosure [Table] | |||||
Adjustment to Compensation Amount | (216,997) | 127,833 | (83,168) | 154,087 | 67,966 |
PEO [Member] | Fair Value of Equity Awards Granted During Prior Years and Vested During the Year | |||||
Pay vs Performance Disclosure [Table] | |||||
Adjustment to Compensation Amount | (37,873) | 1,333 | 8,200 | 10,250 | 6,950 |
PEO [Member] | Reported Changes in Pension Value | |||||
Pay vs Performance Disclosure [Table] | |||||
Adjustment to Compensation Amount | (40,561) | (37,141) | (32,161) | (29,344) | (26,746) |
PEO [Member] | Service Cost for Pension Plan | |||||
Pay vs Performance Disclosure [Table] | |||||
Adjustment to Compensation Amount | 22,048 | 20,841 | 16,857 | 16,675 | 15,681 |
Non-PEO NEO [Member] | Reported Equity Compensation | |||||
Pay vs Performance Disclosure [Table] | |||||
Adjustment to Compensation Amount | (149,965) | (174,960) | (459,087) | (55,644) | (29,700) |
Non-PEO NEO [Member] | Fair Value of Equity Awards Granted During the Year and Outstanding at Year-End | |||||
Pay vs Performance Disclosure [Table] | |||||
Adjustment to Compensation Amount | 149,402 | 182,244 | 531,550 | 41,738 | 900 |
Non-PEO NEO [Member] | Fair Value of Equity Awards Granted During Prior Years and Outstanding at Year-End | |||||
Pay vs Performance Disclosure [Table] | |||||
Adjustment to Compensation Amount | (135,239) | 47,691 | (36,157) | 3,202 | (49,243) |
Non-PEO NEO [Member] | Fair Value of Equity Awards Granted During Prior Years and Vested During the Year | |||||
Pay vs Performance Disclosure [Table] | |||||
Adjustment to Compensation Amount | $ (25,805) | $ 667 | $ 8,200 | 7,687 | 6,950 |
Non-PEO NEO [Member] | Reported Changes in Pension Value | |||||
Pay vs Performance Disclosure [Table] | |||||
Adjustment to Compensation Amount | (39,079) | (47,166) | |||
Non-PEO NEO [Member] | Service Cost for Pension Plan | |||||
Pay vs Performance Disclosure [Table] | |||||
Adjustment to Compensation Amount | $ 26,538 | $ 33,275 |