SIERRA BANCORP REPORTS RECORD QUARTERLY EARNINGS AND 2025 RESULTS

February 02, 2026

Porterville, Calif. – (BUSINESS WIRE) – Sierra Bancorp (Nasdaq: BSRR), parent of Bank of the Sierra, today announced unaudited financial results for the three-and twelve-month periods ended December 31, 2025. Sierra Bancorp reported consolidated net income in the fourth quarter of 2025 of $12.9 million, or $0.97 per diluted share, compared to net income of $10.4 million, or $0.72 per diluted share, in the fourth quarter of 2024, and $9.7 million, or $0.72 per diluted share, in the third quarter of 2025.

Highlights for the fourth quarter of 2025 (unless otherwise stated):

• Strong Quarterly Earnings
  • Record quarterly earnings of $12.9 million as compared to $10.4 million for the same period in 2024.
  • Return on average assets improved to 1.39% as compared to 1.13% for the same period in 2024.
  • Return on average equity increased to 14.09% as compared to 11.49% for the same period in 2024.
  • Net interest margin rose to 3.79% as compared to 3.65% for the same period in 2024.
  • Efficiency ratio improved to 57.7% as compared to 59.7% for the same period in 2024.
  • Diluted earnings per share (EPS) of $0.97 increased 34% compared to $0.72 for the same period in 2024.
  • Diluted EPS of $3.11 per share for the full year of 2025, a 10.3% increase over the full year of 2024.
• Solid Loan and Asset Growth
  • Loan growth of $55.1 million, or 9% annualized, during the quarter.
  • For the full year of 2025, loans at amortized cost grew 9%, or $215.4 million to $2.5 billion, led primarily by a strategic enhancement to our existing mortgage warehouse program.
  • Total assets increased to $3.83 billion, or 6.0%, as compared to $3.61 billion at December 31, 2024.
• Low-Cost Deposits
  • Cost of average total deposits declined to 1.14%, during the quarter, as compared to 1.46% for the same period in 2024.
  • Noninterest-bearing deposits of $995.6 million at December 31, 2025, represent 35% of total deposits.
• Solid Capital and Liquidity
  • Increased Tangible Book Value (non-GAAP) per share by 3.1%, to $25.42 per share, during the quarter.
  • Repurchased 222,039 shares of common stock during the quarter at an average price of $31.52.
  • Repurchased 1,024,792 shares of common stock throughout 2025, or 7.2% of shares outstanding at December 31, 2024.
  • Increased quarterly dividend by one cent to $0.26 per share in January 2026 – our 108th consecutive quarterly dividend.
  • Regulatory Community Bank Leverage Ratio increased to 11.94% at December 31, 2025, compared to 11.73% at September 30, 2025, for our subsidiary Bank.
  • Overall primary and secondary liquidity sources of $2.0 billion at December 31, 2025.

For the year ended 2025, the Company recognized net income of $42.3 million, or $3.11 per diluted share, as compared to $40.6 million, or $2.82 per diluted share, for the same period in 2024. The Company’s return on average assets and return on average equity for the year ended 2025 was 1.15% and 11.88%, respectively, as compared to 1.12% and 11.62%, respectively, for the same comparative period in 2024.

“Good is the enemy of great.” – Jim Collins

“I am proud to announce the strongest quarterly earnings in our history!” stated Kevin McPhaill, CEO and President. “Thanks to the dedication of our banking teams and a laser focus on expense control, we are delivering impressive results, as demonstrated by a 10 percent earnings per share growth in 2025. I am even more optimistic about our 2026 strategy to deepen lending and deposit connections with businesses and individuals in our communities, enhance processes and technology, and maintain overall expenses. Our commitment to make every community we serve better starts with our exceptional team working together toward a common purpose. I am excited about our opportunities for improvement not only in 2026, but well into the future!” concluded Mr. McPhaill.