SIERRA BANCORP REPORTS RECORD QUARTERLY INCOME
October 26, 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 nine-month periods ended September 30, 2026. Sierra Bancorp reported consolidated net income of $15.3 million, or $1.18 per diluted share, for the third quarter of 2026, compared to $9.7 million, or $0.72 per diluted share, in the third quarter of 2025. Return on average assets was 1.66% and return on average equity was 16.49% for the third quarter of 2026, compared to 1.04% and 10.81%, respectively, for the same period in 2025.
For the first nine months of 2026, the Company recognized net income of $37.7 million, or $2.90 per diluted share, as compared to $29.4 million, or $2.15 per diluted share, for the same period in 2025. The Company’s improved financial performance metrics for the first nine months of 2026 include a net interest margin of 3.80% and an efficiency ratio of 56.73%, as compared to a net interest margin of 3.73% and efficiency ratio of 59.32% for the same period in 2025.
Highlights for the Third Quarter and First Nine Months of 2026:
- Strong Quarterly Earnings and Profitability (third quarter 2026 compared to same period last year)
- Diluted earnings per share increased 64% to $1.18 per share.
- Return on average assets rose to 1.66%, as compared to 1.04%.
- Return on average equity expanded to 16.49%, as compared to 10.81%.
- Net interest margin remained strong at 3.91%, increasing 13 basis points from 3.78%.
- Efficiency ratio(1) improved to 54.86%, as compared to 58.05%.
- Noninterest income over average assets remains high at 0.84% annualized, as compared to 0.86%.
- Deposit Franchise Strength and Low Cost of Funds
- Total deposits increased $108.3 million, or 4%, from December 31, 2025.
- Noninterest-bearing deposits of $1.06 billion at September 30, 2026, represent 35.4% of total deposits.
- Cost of total deposits declined to 1.19% for the third quarter of 2026 compared to 1.30% in the third quarter of 2025, while cost of funds decreased to 1.30% from 1.45% for the same comparative period.
- Core non-maturity deposits increased $122.5 million, or 6%, from December 31, 2025.
- Uninsured deposits, exclusive of public funds, are approximately 26% of total deposit balances.
- Solid Capital Position
- Tangible book value(1) per share increased to $25.79 at September 30, 2026, compared to $25.42 at December 31, 2025.
- Declared dividend of $0.27 per share, payable on November 9, 2026.
- Strong regulatory Community Bank Leverage Ratio of 12.43%, at September 30, 2026, for our subsidiary Bank.
- Tangible common equity ratio(1) of 9.17%, at September 30, 2026, on a consolidated basis.
- Overall primary and secondary liquidity sources of $2.0 billion at September 30, 2026.
- Improved Asset Quality
- Nonperforming loans / gross loans declined to 0.38% at September 30, 2026, as compared to 0.52% at December 31, 2025.
- Past due loans declined to $2.5 million as compared to $6.8 million at December 31, 2025.
- Classified loans reduced to $27.0 million as compared to $31.4 million at December 31, 2025.
________________________
(1)See reconciliation of non-GAAP financial measures to the corresponding GAAP measurement in “Non-GAAP Financial Measures.”
“You were born to win, but to be a winner, you must plan to win, prepare to win, and expect to win.” – Zig Ziglar
“It was an incredible quarter for our Bank as we earned record-breaking results!” exclaimed Kevin McPhaill, CEO and President. “In a highly competitive environment coupled with economic uncertainty, we achieved record profits, solid core deposit growth, and our highest quarterly gross loan production since 2020. This is a testament to our team’s consistent and disciplined execution of our strategy, which focuses on people and improved processes in order to achieve strong profitability growth. When that strategy is combined with outstanding relationships in our communities, you get the superb outcomes we see today! While the thrill of announcing excellent results is wonderful, I remain even more optimistic about our future opportunities as we ‘plan to win, prepare to win, and expect to win.’” concluded Mr. McPhaill.
