Sierra Bancorp (BSRR) investor relations material

Executive summary

• Net income rose 38% year-over-year to $12.5 million, with EPS up 47% to $0.96 per diluted share for Q1 2026.

• Return on average assets improved to 1.39% and return on average equity to 13.88% compared to Q1 2025.

• Efficiency ratio improved to 56.45%, marking the fifth consecutive quarter of improvement.

Financial highlights

• Net interest income increased 2% year-over-year to $30.6 million, but declined 4% sequentially.

• Noninterest income grew 20% year-over-year and 9% sequentially, reaching $8.0 million.

• Noninterest expense decreased 3% year-over-year and 5% sequentially, driven by lower deferred compensation expense.

• Provision for credit losses dropped 99% year-over-year to $0.1 million.

• Total assets decreased 2% sequentially to $3.75 billion, mainly due to lower loan balances.

• Deposits increased 3% year-over-year and 2% sequentially, with noninterest-bearing deposits at 35% of total.

Outlook and guidance

• Management expects continued focus on profitability and efficiency, with net interest margin performance influenced by balance sheet mix and deposit repricing.

• The company anticipates further demonstration of discipline and commitment to excellence throughout 2026.