Sierra Bancorp Reports Financial Results for Third Quarter and First Nine Months of 2025

October 27, 2025

PORTERVILLE, CALIF. – (BUSINESS WIRE) – Sierra Bancorp (Nasdaq: BSRR), parent of Bank of the Sierra, today announced its unaudited financial results for the three- and nine-month periods ended September 30, 2025. Sierra Bancorp reported consolidated net income of $9.7 million, or $0.72 per diluted share, for the third quarter of 2025, a decrease of $0.9 million, or 9%, as compared to the second quarter of 2025. In addition, the Company reported consolidated net income of $29.4 million for the first nine months of 2025, a decrease of $0.8 million, or 3%, as compared to the same period in 2024. Diluted earnings per share for the nine-month period ended September 30, 2025, increased to $2.15 from $2.09 for the same period in 2024, an increase of 3%, due mostly to continued stock repurchases through 2025.

Highlights for the third quarter of 2025:

• Improved Net Interest Income and Efficiency
  • Net interest income grew by $1.3 million, or 4%, as compared to the prior linked quarter.
  • Loan yield improved to 5.36%, as compared to 5.27% in the prior linked quarter.
  • Maintained low cost of funds at 1.45%, a decrease of four basis points from the prior linked quarter.
  • Improved efficiency ratio to 58.0%, as compared to 59.4% in the prior linked quarter.
• Solid Asset Quality
  • Total nonperforming loans to total gross loans ratio improved to 0.56%, as compared to 0.62% in the prior linked quarter.
  • Loans past due 30-89 days and still accruing fell to $0.2 million, or one basis point of total loans, an improvement of $2.8 million, or 94.8%, as compared to the prior linked quarter.
  • Total Classified Loans declined $3.6 million, or 10%, during the quarter.
  • Regulatory Commercial Real Estate Concentration Ratio declined slightly to 242.7% during the quarter.
• Balance Sheet Growth
  • Gross loans increased $57.2 million, or 9% annualized, to $2.5 billion.
  • Customer deposits increased by $13.3 million, or 2% annualized, to $2.7 billion.
  • Total deposits declined during the quarter by $41.7 million primarily due to a proactive $55 million reduction in higher-cost brokered deposits.
  • Overall deposits have increased $41.1 million, or 2%, annualized, despite a $40 million decline in higher-cost brokered deposits over the same period.
  • Noninterest-bearing deposits increased slightly to $1.1 billion at September 30, 2025, and represents 37% of total deposits.
• Strong Capital and Liquidity
  • Increased tangible book value (non-GAAP) per share by 3% during the quarter, to $24.66 per share.
  • Repurchased 190,342 shares of common stock during the quarter at an average price of $30.55.
  • Declared dividend of $0.25 per share, payable on November 14, 2025, our 107th consecutive quarterly dividend.
  • Regulatory Leverage Ratio of 11.73% at September 30, 2025, for our subsidiary bank.
  • Consolidated Tangible Common Equity Ratio (non-GAAP) increased to 9.03%, at September 30, 2025.
  • Overall primary and secondary liquidity sources of $2.2 billion, at September 30, 2025.

“Success is the sum of small efforts, repeated day in and day out.” – Robert Collier

“Through the first three quarters of 2025, we have taken advantage of several opportunities and risen to meet many challenges,” noted Kevin McPhaill, President and Chief Executive Officer. “Our loan portfolio and strong customer base have continued to grow, despite a difficult interest rate environment, certain episodic credit issues, persisting inflation concerns, and an uncertain employment outlook. For the first nine months of 2025, we increased earnings per share over the same period in 2024 while improving both margin and efficiency. We also continue to have a high level of noninterest income relative to peers. I am immensely proud of our team and their commitment to consistent and strong earnings. As we move into the final quarter of 2025, we are excited about the remainder of the year and believe our team and our balance sheet give us reasons to look forward to 2026 and beyond!” concluded Mr. McPhaill.