Highlights

  • Third quarter 2026 net income was $15.3 million, or $1.18 per diluted share, against $9.7 million a year earlier.
  • Net interest margin was 3.91% in the third quarter, against 3.78% a year earlier and 3.74% in the second quarter.
  • Total assets were $3.68 billion and gross loans were $2.43 billion, with mortgage warehouse balances down $158.0 million since year-end.
  • The company declared a dividend of $0.27 per share, payable on November 9, 2026.

Sierra Bancorp (NASDAQ: BSRR) shares were trading at USD 43.66 on October 27, 2026, up 3.22%, with a relative volume at time of 2.84. The bank holding company announced unaudited results for the three and nine months ended September 30, 2026, on October 26, 2026, declared a dividend of $0.27 per share, and reported a temporary pause in mortgage warehouse growth.

Sierra Bancorp is a California corporation with principal executive offices at 86 North Main Street in Porterville, California. It is the parent of Bank of the Sierra, which offers retail and commercial banking services through 34 full-service branches in the counties of Tulare, Kern, Kings, Fresno, Ventura, San Luis Obispo and Santa Barbara. The bank also maintains an online branch and a mortgage warehouse division. The company reported 447 full-time equivalent employees at September 30, 2026.

Third Quarter and Nine-Month Results

For the third quarter of 2026, Sierra Bancorp reported consolidated net income of $15.3 million, or $1.18 per diluted share, compared with $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%.

The company said the change in provision (benefit) for credit losses, higher net interest income, lower noninterest expense and a lower effective tax rate contributed to the increase. Credit loss expense on loans was a benefit of $2.0 million, compared with expense of $3.7 million in the third quarter of 2025 and $2.2 million in the second quarter of 2026. The company tied the benefit to the resolution of an agricultural production lending relationship in the lumber industry, for which it had established a $2.5 million specific reserve in the second quarter.

Net interest income was $32.4 million, up $0.4 million from the third quarter of 2025, and it included a $1.1 million recovery of interest on a separate agricultural nonperforming loan. Noninterest income was $7.7 million, down $0.9 million from the linked quarter. Noninterest expense was $22.3 million, down from $23.5 million. The efficiency ratio was 54.86%.

For the first nine months of 2026, net income was $37.7 million, or $2.90 per diluted share, compared with $29.4 million, or $2.15, in the same period of 2025. The nine-month net interest margin was 3.80% and the efficiency ratio was 56.73%.

Balance Sheet, Credit and Capital

Total assets decreased $154.1 million to $3.68 billion at September 30, 2026, from December 31, 2025. Gross loans decreased $118.3 million to $2.43 billion. Mortgage warehouse balances fell $158.0 million, or 30%, as the company temporarily paused growth in that portfolio to focus on enhanced controls amid interest rate volatility and market uncertainty. New credit extended in the third quarter totaled $123.7 million, which the company described as its highest quarterly loan production since the fourth quarter of 2020.

Total deposits increased $108.3 million to $2.98 billion. Noninterest-bearing deposits were $1.06 billion, or 35.4% of total deposits.

Nonperforming assets were $9.3 million, or 0.38% of loans plus foreclosed assets, compared with $14.8 million, or 0.58%, at December 31, 2025. Classified loans were $27.0 million, compared with $31.4 million. The allowance for credit losses on loans was $21.7 million, compared with $23.6 million at June 30, 2026.

Total capital was $361.7 million, a decrease of $3.1 million from December 31, 2025. The company cited an $18.6 million increase in accumulated other comprehensive loss, $14.4 million in share repurchases and $10.3 million in dividends declared, partly offset by net income. Tangible book value per share, a non-GAAP measure, was $25.79, compared with $25.42 at December 31, 2025. The Community Bank Leverage Ratio of the bank was 12.43%, compared with 13.25% at June 30, 2026.

Outlook and Management Comments

The release did not include numerical guidance. It stated that loan production activity continued to increase through the quarter and that the loan pipeline at September 30, 2026, remains elevated, similar to the prior quarter end. Chief Executive Officer Kevin McPhaill said he remains optimistic about future opportunities in a competitive environment with economic uncertainty.