Highlights

  • Sierra Bancorp reports quarterly net income of USD 12.9 million, marking its highest quarterly earnings.
  • Diluted earnings per share rise to USD 0.97 for the quarter and USD 3.11 for 2025.
  • Total assets increase to USD 3.83 billion, driven primarily by loan portfolio expansion.

Sierra Bancorp (Nasdaq:BSRR), the holding company for Bank of the Sierra, reported unaudited financial results for the three- and twelve-month periods ended December 31, 2025. The company recorded consolidated net income of USD 12.9 million for the fourth quarter of 2025, compared with USD 10.4 million in the same quarter of 2024 and USD 9.7 million in the prior quarter. Diluted earnings per share for the quarter increased to USD 0.97 from USD 0.72 a year earlier.

For the full year 2025, net income totaled USD 42.3 million, or USD 3.11 per diluted share, compared with USD 40.6 million, or USD 2.82 per diluted share, in 2024. Return on average assets improved to 1.15%, while return on average equity increased to 11.88% for the year.

Margin Trends and Expense Management
Net interest income for the fourth quarter reached USD 32.0 million, reflecting a year-over-year increase of 5%. The net interest margin rose to 3.79% during the quarter, compared with 3.65% in the same period last year, supported by a decline in the cost of interest-bearing liabilities. For the full year, net interest income increased to USD 124.7 million, while net interest margin averaged 3.75%.

Noninterest expense remained relatively unchanged on an annual basis, declining marginally by 0.1% compared to 2024. Quarterly noninterest expense increased slightly due to legal costs associated with loan workout activities. The efficiency ratio improved to 57.7% for the fourth quarter, compared with 59.7% in the prior-year period.

Loan Growth and Balance Sheet Developments
Loans at amortized cost increased by USD 215.4 million, or 9%, during 2025, reaching USD 2.5 billion. Growth was primarily attributed to higher utilization of mortgage warehouse lines, alongside increases in commercial real estate and commercial lending. Total assets rose 6% year over year to USD 3.83 billion.

Deposits totaled USD 2.88 billion at year-end, reflecting a modest annual decline of 0.5%, largely due to lower customer time deposits. Noninterest-bearing deposits represented 34.6% of total deposits. Borrowings increased as the company utilized short-term funding to support mortgage warehouse activity.

Capital Position and Shareholder Actions
Tangible book value per share increased to USD 25.42 at December 31, 2025. During the year, Sierra Bancorp repurchased 1.02 million shares, representing 7.2% of shares outstanding at the end of 2024. The quarterly dividend was increased to USD 0.26 per share in January 2026, marking the company’s 108th consecutive quarterly dividend.

The community bank leverage ratio for the subsidiary bank improved to 11.94%, while total available liquidity sources stood at approximately USD 2.0 billion at year-end.

Share Performance
BSRR shares traded at USD 35.41, on January 30, 2026.