Sierra Bancorp (Nasdaq: BSRR), the parent company of Bank of the Sierra, reported unaudited financial results for the three and nine months ended September 30, 2026. The company announced consolidated net income of $15.3 million for the third quarter of 2026, representing $1.18 per diluted share. This marks a significant increase from the $9.7 million, or $0.72 per diluted share, reported in the same period of 2025.
For the first nine months of 2026, Sierra Bancorp recognized net income of $37.7 million, or $2.90 per diluted share, compared to $29.4 million, or $2.15 per diluted share, for the same period in 2025. The company’s 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, in the prior year.
Key highlights for the third quarter include a net interest margin of 3.91%, an efficiency ratio of 54.86%, and a tangible book value per share of $25.79. The company declared a dividend of $0.27 per share, payable on November 9, 2026. The company’s subsidiary maintains a strong regulatory Community Bank Leverage Ratio of 12.43%.
Asset quality metrics continued to improve, with nonperforming loans to gross loans declining to 0.38% at September 30, 2026, from 0.52% at December 31, 2025. Classified loans also decreased to $27.0 million from $31.4 million at year-end 2025.
On the balance sheet, total assets decreased 4% to $3.68 billion, primarily due to a $158.0 million reduction in mortgage warehouse loan balances. Total deposits increased $108.3 million, or 4%, to $2.98 billion, with growth concentrated in core deposit categories. Other interest-bearing liabilities declined 83% to $52.0 million.
