Sierra Bancorp Reports First Quarter 2026 Results
April 27, 2026
PORTERVILLE, CALIF. – (BUSINESS WIRE) – Sierra Bancorp (Nasdaq: BSRR), parent of Bank of the Sierra, today announced its unaudited financial results for the quarter ended March 31, 2026. Sierra Bancorp reported consolidated net income of $12.5 million, or $0.96 per diluted share, for the first quarter of 2026 compared to $9.1 million, or $0.65 per diluted share, in the first quarter of 2025.
Highlights for the First Quarter of 2025 (unless otherwise stated):
- Strong Quarterly Earnings Metrics
- Diluted earnings per share increased $0.31, or 47%, from the same quarter in 2025.
- Return on average assets improved to 1.39% compared to 1.02% for the same quarter in 2025.
- Return on average equity rose to 13.88% compared to 10.44% for the same quarter in 2025.
- Focus on Profitability
- Net interest margin increased to 3.75% as compared to 3.74% in the first quarter of 2025.
- Annualized noninterest income to average assets improved to 0.88% as compared to 0.75% in the first quarter of 2025.
- Efficiency ratio (1) improved to 56.45% as compared to 60.62% in the same quarter in 2025 with overall expenses declining 2.6% as compared to the same period in 2025.
- Growth to our Strong Low-Cost Deposit Base
- Total deposits increased $75.9 million, or 3%, as compared to March 31, 2025.
- Excluding brokered deposits, deposits increased $49.1 million, or 2%, from the prior linked quarter.
- Noninterest-bearing deposits of $1.03 billion at March 31, 2026, represent 35% of total deposits.
- Cost of funds declined to 1.33% in the first quarter of 2026 as compared to 1.46% in the same quarter in 2025.
- Uninsured deposits are approximately 24% of total deposit balances.
- Stable Capital and Liquidity
- Increased Tangible Book Value (1) per share by 1% to $25.69 per share during the quarter.
- The Community Bank Leverage Ratio increased to 12.05% for our subsidiary bank as compared to 11.94% as of December 31, 2025.
- Repurchased 263,632 shares during the quarter, or 2% of shares outstanding at December 31, 2025.
- Declared dividend of $0.26 per share, payable on May 11, 2026.
- Wholesale funding, including brokered deposits, is used primarily to fund the mortgage warehouse business line which provides a strong match of duration.
- Overall primary and secondary liquidity sources of $2.1 billion at March 31, 2026.
- Primary liquidity ratio increased to 19.8% at March 31, 2026, from 19.1% at December 31, 2025.
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(1)See reconciliation of non-GAAP financial measures to the corresponding GAAP measurement in “Non-GAAP Financial Measures.”
“Discipline is the bridge between goals and accomplishment.” – Jim Rohn
“I am extremely proud to report a strong start to 2026!” stated Kevin McPhaill, CEO and President. “Profitability remains our top strategic priority as shown by our consistently high ROAA of 1.39%. Furthermore, this was our fifth consecutive quarter of improvement to our efficiency ratio, which is directly attributable to ongoing expense management discipline. We have redoubled our community banking efforts within our branch network, resulting in an increase of 2% in core customer deposits during the first quarter. We are extremely proud of these continued strong results, and I believe the remainder of 2026 will further demonstrate our discipline, drive, and commitment to excellence!” concluded Mr. McPhaill.
