SIERRA BANCORP REPORTS FINANCIAL RESULTS FOR SECOND QUARTER AND FIRST SIX MONTHS OF 2026
July 27, 2026
PORTERVILLE, CALIF. – (BUSINESS WIRE) – 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, 2026. Sierra Bancorp reported consolidated net income of $9.9 million, or $0.77 per diluted share, for the second quarter of 2026, compared to $10.6 million, or $0.78 per diluted share, in the second quarter of 2025. Return on average assets was 1.09% and return on average equity was 10.90% for the second quarter of 2026.
For the first six months of 2026, the Company recognized net income of $22.4 million, or $1.72 per diluted share, as compared to $19.7 million, or $1.43 per diluted share, for the same period in 2025. The Company’s improved financial performance metrics for the first half of 2026 include a net interest margin of 3.75% and an efficiency ratio of 57.70%, as compared to a net interest margin of 3.71% and efficiency ratio of 60.00% for the same period in 2025.
Highlights for the Second Quarter and First Half of 2026:
- Strong YTD Earnings and Profitability (first half compared to same period last year)
- Diluted earnings per share increased by $0.29, or 20%, to $1.72 per diluted share.
- Return on average assets rose to 1.24%, as compared to 1.09%.
- Return on average equity expanded to 12.38%, as compared to 11.26%.
- Net interest margin remained strong at 3.75%, increasing four basis points from 3.71%.
- Efficiency ratio(1) improved to 57.70%, as compared to 60.00%.
- Deposit Franchise Strength and Low Cost of Funds
- Total deposits increased $54.6 million, or 2%, from December 31, 2025.
- Noninterest-bearing deposits of $1.03 billion at June 30, 2026, represent 35.0% of total deposits.
- Cost of total deposits declined to 1.11% compared to 1.30% in the second quarter of 2025, while cost of funds decreased to 1.31% from 1.49%.
- Core non-maturity deposits increased $67.8 million, or 3%, from December 31, 2025.
- Uninsured deposits, exclusive of public funds, are approximately 25% of total deposit balances.
- Solid Capital and Liquidity
- Tangible book value(1) per share increased to $26.19 at June 30, 2026, compared to $23.42 at December 31, 2025.
- Repurchased 396,429 shares of stock during the first half of 2026.
- Declared dividend of $0.27 per share, payable on August 10, 2026.
- Strong regulatory Community Bank Leverage Ratio of 12.25%, at June 30, 2026, for our subsidiary Bank.
- Tangible common equity ratio(1) of 9.19%, at June 30, 2026, on a consolidated basis.
- Overall primary and secondary liquidity sources of $1.9 billion at June 30, 2026.
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(1)See reconciliation of non-GAAP financial measures to the corresponding GAAP measurement in “Non-GAAP Financial Measures.”
“Coming together is the beginning. Keeping together is progress. Working together is success.” – Henry Ford
“We are proud to serve the Central Valley and Central Coast of California. Our strong commitment to these communities is reflected in our continued solid deposit growth during 2026,” stated Kevin McPhaill, CEO and President. “I am particularly proud of our ability to pivot, as demonstrated by the surge in loan growth in the last couple of months. This shift reflects the team’s laser focus on both loan and deposit growth. In particular, our loan pipeline increased significantly, and we expect this momentum to result in net loan growth in the second half of 2026. Our expense management strategies resulted in a nearly 2% cost reduction in year-to-date expenses compared to the same period last year. We closed the quarter with contagious optimism throughout our Bank, boosting my confidence in what we can accomplish in the next six months and beyond!” concluded Mr. McPhaill.
