Sierra Bancorp posts Q2 2026 net income of $9.9M

Sierra Bancorp reported consolidated net income of $9.9 million, or $0.77 per diluted share, for the second quarter of 2026, compared with $10.6 million, or $0.78 per share, a year earlier.

Rhea-AI Filing Summary

Sierra Bancorp reported consolidated net income of $9.9 million, or $0.77 per diluted share, for the second quarter of 2026, compared with $10.6 million, or $0.78 per share, a year earlier. Quarterly return on average assets was 1.09% and return on average equity was 10.90%.

For the first six months of 2026, net income rose to $22.4 million, or $1.72 per diluted share, from $19.7 million, or $1.43 per share. A tax‑equivalent net interest margin of 3.75% and an efficiency ratio of 57.70% reflected lower funding costs and disciplined expenses. Total assets were $3.72 billion and total deposits $2.93 billion at June 30, 2026.

Asset quality remained solid: nonperforming assets fell to $10.5 million, the ratio of nonperforming loans to gross loans improved to 0.43%, and net charge‑offs were $0.2 million for the first half versus $6.3 million a year earlier. The allowance for credit losses on loans increased to $23.6 million, or 0.96% of gross loans, and the equity ratio was 9.86%, with tangible common equity at 9.19% of tangible assets.

Filing Explained

The June 30 results update adds liquidity and credit-exposure detail; loan balances were down while management expected second-half growth.

This Form 8-K, whose purpose is to report specified material events, furnishes Sierra Bancorp’s unaudited second-quarter and six-month results through June 30, 2026. For existing common holders, the structural consequence is updated information about the company’s liquidity, loan mix, and credit reserves.

The results release is furnished under Item 2.02 and expressly is not deemed filed for Section 18 liability purposes, so it reports the financial update without creating that filing status.

At June 30, 2026, primary and secondary liquidity sources totaled 1,945,471 thousand dollars, including 142,695 thousand dollars of cash, 528,091 thousand dollars of unpledged investment securities, and 611,578 thousand dollars of FHLB borrowing availability.

Gross loans were 2,456,060 thousand dollars, including $457.5 million, or 19%, in mortgage warehouse facilities; the allowance for credit losses was $23.6 million, or 0.96%, including a $2.5 million specific reserve on one agricultural loan.

Although management said loan production strengthened significantly and expected net loan growth in the second half of 2026, period-end gross loans had declined $90.8 million from December 31, 2025.

8-K Event Classification

2 items: 2.02, 9.01

2 items

Item 2.02 Results of Operations and Financial Condition Financial

Disclosure of earnings results, typically an earnings press release or preliminary financials.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, or exhibit attachments filed with this report.

Key Figures

Q2 2026 Net Income: $9.9 million Q2 2026 Diluted EPS: $0.77 First-half 2026 Net Income: $22.4 million +5 more

8 metrics

Q2 2026 Net Income $9.9 million Consolidated net income for the quarter ended June 30, 2026

Q2 2026 Diluted EPS $0.77 Diluted earnings per share for the second quarter of 2026

First-half 2026 Net Income $22.4 million Net income for the six months ended June 30, 2026

First-half 2026 Net Interest Margin 3.75% Tax-equivalent net interest margin for the first six months of 2026

First-half 2026 Efficiency Ratio 57.70% Tax-equivalent efficiency ratio for the six months ended June 30, 2026

Total Assets $3.72 billion Total assets at June 30, 2026

Allowance for Credit Losses Ratio 0.96% Allowance for credit losses on loans as a percentage of gross loans at June 30, 2026

Shareholders' Equity Ratio 9.86% Shareholders’ equity as a percentage of total assets at June 30, 2026

Key Terms

net interest margin (tax-equivalent), efficiency ratio (tax-equivalent), mortgage warehouse facilities, allowance for credit losses, +1 more

5 terms

net interest margin (tax-equivalent) financial

"resulting in a six basis point increase in the net interest margin to 3.74%"

efficiency ratio (tax-equivalent) financial

"Efficiency ratio (tax-equivalent) (1) (2) | 58.91%"

mortgage warehouse facilities financial

"approximately $457.5 million, or 19%, of the Company's loan portfolio consisted of mortgage warehouse facilities"

Mortgage warehouse facilities are short-term lines of credit banks or investors provide to mortgage lenders so they can fund borrowers’ home loans before those loans are sold or packaged and paid off. Think of it as a temporary storage or bridge loan that keeps day-to-day lending running; if the facility tightens or fails, a lender can’t fund new mortgages, which can quickly hurt revenue, liquidity and investor returns.

allowance for credit losses financial

"The allowance for credit losses on loans increased $2.1 million to $23.6 million"

Allowance for credit losses is a reserve set aside by a financial institution to cover potential losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution prepare for loans that might turn sour. For investors, it signals how cautious the institution is about the quality of its loans and potential risks to its financial health.

nonperforming assets financial

"Total nonperforming assets, comprised of nonperforming loans and foreclosed assets, decreased $4.3 million"

Nonperforming assets are loans or investments that are not generating expected payments or returns because the borrower has fallen behind on payments or the investment has lost value. They matter to investors because a high level of nonperforming assets can indicate financial trouble for a bank or institution, potentially affecting its stability and profitability.

Earnings Snapshot

Q2 2026 net income: $9.9 million

quarter and six months ended June 30, 2026

Q2 2026 net income $9.9 million compared with $10.6 million in Q2 2025

Q2 2026 diluted EPS $0.77 versus $0.78 in Q2 2025

First-half 2026 net income $22.4 million up from $19.7 million in the first six months of 2025

First-half 2026 diluted EPS $1.72 up from $1.43 in the first six months of 2025

First-half 2026 net interest margin 3.75% versus 3.71% for the same period in 2025

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Sierra Bancorp (BSRR)'s earnings for Q2 2026?

Sierra Bancorp earned $9.9 million, or $0.77 per diluted share, in Q2 2026. Return on average assets was 1.09% and return on average equity was 10.90%, reflecting solid profitability for the quarter.

How did Sierra Bancorp (BSRR)'s first-half 2026 results compare to 2025?

First-half 2026 net income was $22.4 million, or $1.72 per diluted share, up from $19.7 million, or $1.43 per share, in 2025. Profitability improvements were supported by a higher net interest margin and lower noninterest expenses year-to-date.

What were BSRR's key margin and efficiency metrics in 2026?

For the first six months of 2026, Sierra Bancorp reported a tax‑equivalent net interest margin of 3.75% and an efficiency ratio of 57.70%. In Q2 alone, net interest margin was 3.74%, slightly above the 3.68% reported in Q2 2025.

How strong was Sierra Bancorp (BSRR)'s capital position at June 30, 2026?

At June 30, 2026, shareholders’ equity was $366.9 million, with an equity-to-assets ratio of 9.86%. The tangible common equity ratio was 9.19%, and the subsidiary bank’s community bank leverage ratio stood at 12.25%, indicating robust capitalization.

What trends did Sierra Bancorp (BSRR) see in loans and deposits?

Total assets were $3.72 billion and deposits $2.93 billion at June 30, 2026. Gross loans declined to $2.46 billion, mainly from a $60.9 million reduction in mortgage warehouse balances, while core non‑maturity deposits grew by $67.8 million in the first half.

How is Sierra Bancorp (BSRR)'s asset quality and allowance coverage?

Nonperforming assets fell to $10.5 million, with nonperforming loans at 0.43% of gross loans. Net charge‑offs were $0.2 million for the first half, versus $6.3 million a year earlier. The allowance for credit losses was $23.6 million, or 0.96% of loans.

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0001130144false00011301442026-07-272026-07-27

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) July 27, 2026

SIERRA BANCORP

(Exact name of registrant as specified in its charter)

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California	000-33063	33-0937517
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

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86 North Main Street, Porterville, CA 93257
(Address of principal executive offices)             (Zip code)

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(559) 782-4900

(Registrant’s telephone number including area code)

Not applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

	​		​
Title of each class	​	Trading Symbol(s)	​	Name of each exchange on which registered
Common Stock, no par value	​	BSRR	​	NASDAQ Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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ITEM 2.02RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On July 27, 2026, Sierra Bancorp issued a press release announcing its unaudited consolidated financial results for the three- and six-month periods ended June 30, 2026.  A copy of the press release is attached as Exhibit 99.1 to this Current Report.

The information in this report (including Exhibit 99.1) is being furnished pursuant to Item 2.02 and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act.

ITEM 9.01FINANCIAL STATEMENTS AND EXHIBITS

(d)Exhibits. The information required to be furnished pursuant to this item is set forth in the Exhibit Index which appears below, immediately before the signatures.

EXHIBIT INDEX

19
Exhibit No.	​ ​ ​	Description
​	​	​
99.1	​	Press release issued by Sierra Bancorp dated July 27, 2026
104	​	Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101)

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SIGNATURES

Pursuant to the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

​ ​ ​ ​ ​	​ Executive Vice President & Chief Financial Officer
​ ​ ​ ​ Dated: July 27, 2026	SIERRA BANCORP By: /s/ Christopher G. Treece​ ​ Christopher G. Treece Executive Vice President & Chief Financial Officer

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Exhibit 99.1

FOR IMMEDIATE RELEASE

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Date:	July 27, 2026
Contact:	Kevin McPhaill, President/CEO
Phone:	(559) 782-4900 or (888) 454-BANK
Website Address:	www.sierrabancorp.com

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SIERRA BANCORP REPORTS FINANCIAL RESULTS FOR SECOND QUARTER AND FIRST SIX MONTHS OF 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 six-month periods ended June 30, 2026. Sierra Bancorp reported consolidated net income of $9.9 million, or $0.77 per diluted share, for the second quarter of 2026, compared to $10.6 million, or $0.78 per diluted share, in the second quarter of 2025. Return on average assets was 1.09% and return on average equity was 10.90% for the second quarter of 2026.

For the first six months of 2026, the Company recognized net income of $22.4 million, or $1.72 per diluted share, as compared to $19.7 million, or $1.43 per diluted share, for the same period in 2025. The Company's improved financial performance metrics for the first half of 2026 include a net interest margin of 3.75% and an efficiency ratio of 57.70%, as compared to a net interest margin of 3.71% and efficiency ratio of 60.00% for the same period in 2025.

Highlights for the second quarter and first half of 2026:

● Strong YTD Earnings and Profitability (first half compared to same period last year)

o Diluted earnings per share increased by $0.29, or 20%, to $1.72 per diluted share.

o Return on average assets rose to 1.24%, as compared to 1.09%.

o Return on average equity expanded to 12.38%, as compared to 11.26%.

o Net interest margin remained strong at 3.75%, increasing four basis points from 3.71%.

o Efficiency ratio⁽¹⁾ improved to 57.70%, as compared to 60.00%.

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● Deposit Franchise Strength and Low Cost of Funds

o Total deposits increased $54.6 million, or 2%, from December 31, 2025.

o Noninterest-bearing deposits of $1.03 billion at June 30, 2026, represent 35.0% of total deposits.

o Cost of total deposits declined to 1.11% compared to 1.30% in the second quarter of 2025, while cost of funds decreased to 1.31% from 1.49%.

o Core non-maturity deposits increased $67.8 million, or 3%, from December 31, 2025.

o Uninsured deposits, exclusive of public funds, are approximately 25% of total deposit balances.

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● Solid Capital and Liquidity

o Tangible book value⁽¹⁾ per share increased to $26.19 at June 30, 2026, compared to $23.42 at December 31, 2025.

o Repurchased 396,429 shares of stock during the first half of 2026.

o Declared dividend of $0.27 per share, payable on August 10, 2026.

o Strong regulatory Community Bank Leverage Ratio of 12.25%, at June 30, 2026, for our subsidiary Bank.

o Tangible common equity ratio⁽¹⁾ of 9.19%, at June 30, 2026, on a consolidated basis.

o Overall primary and secondary liquidity sources of $1.9 billion at June 30, 2026.

_______________________________

(1) See reconciliation of non-GAAP financial measures to the corresponding GAAP measurement in "Non-GAAP Financial Measures."

Sierra Bancorp Financial Results

July 27, 2026

Page 2

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“Coming together is the beginning. Keeping together is progress. Working together is success.”  – Henry Ford

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“We are proud to serve the Central Valley and Central Coast of California. Our strong commitment to these communities is reflected in our continued solid deposit growth during 2026,” stated Kevin McPhaill, CEO and President. “I am particularly proud of our ability to pivot, as demonstrated by the surge in loan growth in the last couple of months. This shift reflects the team’s laser focus on both loan and deposit growth. In particular, our loan pipeline increased significantly, and we expect this momentum to result in net loan growth in the second half of 2026. Our expense management strategies resulted in a nearly 2% cost reduction in year-to-date expenses compared to the same period last year. We closed the quarter with contagious optimism throughout our Bank, boosting my confidence in what we can accomplish in the next six months and beyond!” concluded Mr. McPhaill.

Quarterly Income Changes (comparisons to the second quarter of 2025)

● Net income for the second quarter of 2026 decreased $0.7 million, or 7%, to $9.9 million. Net interest income remained stable, decreasing $0.2 million, while noninterest income increased slightly and noninterest expense decreased by $0.3 million. Noninterest expense in the second quarter of 2026 included approximately $0.5 million of severance and recruitment related charges resulting from a restructuring of the executive team. These changes were offset by a $1.1 million increase in credit loss expense on loans, resulting primarily from a $2.5 million specific reserve on a single agricultural production loan to a borrower in the lumber industry.

● Noninterest income and noninterest expense changes included a $0.4 million increase in earnings from separate account life insurance and a $0.1 million increase in deferred compensation expense. Separate account life insurance income and deferred compensation expense are designed to offset each other.

● Pre-tax pre-provision income⁽¹⁾ was $15.5 million, a slight increase over the second quarter of 2025.

Linked Quarter Income Changes (comparisons to the three months ended March 31, 2026)

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● Net income decreased $2.6 million, or 21%, from the prior linked quarter. The decrease was driven primarily by a $2.2 million increase in credit loss expense, due to the $2.5 million specific reserve mentioned above, and a $1.7 million increase in noninterest expense. The large increase in noninterest expense was related to deferred compensation market changes that are offset by similar changes to separate account life insurance, recorded in noninterest income.  The changes in deferred compensation, including deferred directors’ fees, were $1.7 million.  In addition, we had $0.5 million in severance and recruiting costs related to an executive leadership restructuring during the quarter. These unfavorable changes were partially offset by a $0.6 million increase in noninterest income.

● Net interest income remained stable, decreasing $0.2 million from the linked quarter. Average interest-earning assets declined $43.0 million, or 1%, primarily due to lower loan and investment securities balances, while net interest margin remained stable at 3.74% compared to 3.75% in the linked quarter. Overall loan production activity increased throughout the quarter and the pipeline at June 30, 2026 is significantly elevated relative to the prior quarter end.

● Noninterest income changes included a $1.8 million increase in earnings from separate account life insurance associated with deferred compensation arrangements, offset by a $1.7 million increase in related deferred compensation expense, recorded in noninterest expense. Deferred compensation expense increased primarily due to increases in participant account values resulting from favorable market performance during the quarter.

● Other changes to noninterest income outside of the above mentioned included a $0.3 million increase in service charge income, primarily driven by higher deposit account fees, partially offset by several nonrecurring transactions in the first quarter of 2026, including a $0.4 million gain on the sale of fixed assets, a $0.4 million special FHLB dividend, and a $0.6 million increase in the fair value of bank stocks.

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Year-to-Date Income Changes (comparisons to the first six months of 2025)

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● Net income increased $2.7 million, or 14%, to $22.4 million for the first six months of 2026. The increase was driven primarily by a $1.3 million increase in noninterest income, a $1.1 million decrease in provision for credit

Sierra Bancorp Financial Results

July 27, 2026

Page 3

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losses, and a $0.9 million decrease in noninterest expense. Diluted earnings per share increased 20% to $1.72 compared to $1.43 in the comparative period.

● Net interest income increased $0.3 million due primarily to a four basis point increase in net interest margin to 3.75%, partially offset by slightly lower average earning assets. Funding costs declined meaningfully during the period, with cost of funds decreasing to 1.32% from 1.48% and cost of deposits declining to 1.14% from 1.31%.

● Noninterest income increased $1.3 million, or 9%, compared to the first six months of 2025. The increase was driven primarily by a $0.5 million increase in earnings on separate account life insurance, a $0.3 million increase in cash surrender value income from life insurance, a $0.2 million increase in service charges and fees, and a $0.4 million gain on sale of fixed assets. These favorable variances were partially offset by lower securities gains.

● Noninterest expense decreased $0.9 million, or 2%, compared to the first six months of 2025. The reduction was driven primarily by lower other operating expenses and deposit service costs, partially offset by increased occupancy expenses and higher professional service costs.

● Pre-tax pre-provision income⁽¹⁾ was $32.2 million for the first half of 2026, an increase of $2.4 million, or 8%.

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Balance Sheet Changes (comparisons to December 31, 2025, unless otherwise noted)

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● Total assets decreased $108.7 million, or 3%, to $3.72 billion during the first six months of 2026. The decline was primarily attributable to reductions in mortgage warehouse balances of $60.9 million and investment securities of $21.4 million.

● Gross loans decreased $90.8 million, or 4%, due to a $60.9 million decrease in mortgage warehouse balances, a $13.9 million decrease in residential real estate loans, a $13.4 million decrease in other commercial loans, a $1.2 million decrease in commercial real estate, and a $2.5 million decrease in farmland loans. These decreases were partially offset by an increase of $1.4 million in construction loans.

● Mortgage warehouse average balances increased $8.0 million during the second quarter of 2026 compared to the linked quarter, while ending balances declined by $21.0 million. Average balances of commercial real estate and commercial and industrial loans decreased during the quarter, and period-end balances remained relatively flat. However, loan production strengthened significantly as the quarter progressed, reflecting a shift in momentum entering the third quarter of 2026 and supporting an increased pipeline of commercial real estate and commercial and industrial lending opportunities.

● Total deposits increased $54.6 million, or 2%. Growth was concentrated in noninterest-bearing demand deposits and non-maturing interest-bearing deposits. Customer deposits increased $57.5 million, while brokered deposits decreased $2.9 million during the period.

● Other interest-bearing liabilities declined to $155.0 million at June 30, 2026, from $302.7 million at December 31, 2025. The $147.7 million decline was primarily due to a reduction in overnight borrowings used to fund mortgage warehouse lending activity.

_______________________________

(1) See reconciliation of non-GAAP financial measures to the corresponding GAAP measurement in "Non-GAAP Financial Measures."

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Sierra Bancorp Financial Results

July 27, 2026

Page 4

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Other financial highlights are reflected in the following table.

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FINANCIAL HIGHLIGHTS

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(Dollars in Thousands, Except Per Share Data, Unaudited)

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As of or for the

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As of or for the

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three months ended

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six months ended

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6/30/2026

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3/31/2026

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6/30/2025

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6/30/2026

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6/30/2025

Net income

​

$

9,919

​

$

12,520

​

$

10,633

​

$

22,439

​

$

19,734

Diluted earnings per share

​

$

0.77

​

$

0.96

​

$

0.78

​

$

1.72

​

$

1.43

Return on average assets

​

​

1.09%

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​

1.39%

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​

1.16%

​

​

1.24%

​

​

1.09%

Return on average equity

​

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10.90%

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13.88%

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​

12.08%

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12.38%

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11.26%

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Net interest margin (tax-equivalent) (1)

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3.74%

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3.75%

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3.68%

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3.75%

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3.71%

Yield on average loans

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5.22%

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5.26%

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5.27%

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5.24%

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5.27%

Yield on investments

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4.48%

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4.44%

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4.68%

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4.46%

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4.75%

Cost of average total deposits (3)

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1.11%

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1.17%

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1.30%

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1.14%

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1.31%

Cost of funds (3)

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1.31%

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1.33%

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1.49%

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1.32%

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1.48%

Efficiency ratio (tax-equivalent) (1) (2)

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58.91%

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56.45%

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59.43%

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57.70%

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60.00%

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Total assets

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$

3,720,611

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$

3,754,462

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$

3,770,302

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$

3,720,611

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$

3,770,302

Gross loans, amortized cost

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$

2,456,060

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$

2,466,794

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$

2,434,609

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$

2,456,060

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$

2,434,609

Noninterest demand deposits

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$

1,026,319

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$

1,028,678

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$

1,065,742

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$

1,026,319

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$

1,065,742

Total deposits

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$

2,930,991

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$

2,925,806

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$

2,974,469

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$

2,930,991

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$

2,974,469

Noninterest-bearing deposits over total deposits

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35.0%

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35.2%

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35.8%

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35.0%

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35.8%

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Shareholders' equity / total assets

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9.86%

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9.69%

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9.43%

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9.86%

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9.43%

Tangible common equity ratio (2)

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9.19%

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9.02%

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8.77%

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9.19%

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8.77%

Book value per share

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$

28.30

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$

27.78

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$

26.00

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$

28.30

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$

26.00

Tangible book value per share (2)

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$

26.19

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$

25.69

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$

23.98

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$

26.19

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$

23.98

Community bank leverage ratio (subsidiary bank)

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12.25%

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12.05%

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11.75%

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12.25%

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11.75%

Tangible common equity ratio (subsidiary bank) (2)

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11.37%

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11.07%

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10.77%

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11.37%

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10.77%

(1) Computed on a tax equivalent basis utilizing a federal income tax rate of 21%.

(2) See reconciliation of non-GAAP financial measures to the corresponding GAAP measurement in "Non-GAAP Financial Measures".

(3) Includes noninterest bearing deposits.

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INCOME STATEMENT HIGHLIGHTS

Net Interest Income

Net interest income was $30.4 million for the second quarter of 2026, a decrease of $0.2 million, or 1%, compared to the second quarter of 2025. The decrease was primarily attributable to lower average interest-earning asset balances and yields, substantially offset by lower funding costs. Interest expense declined $1.5 million, or 13%, from the prior-year quarter, reflecting the benefits of lower deposit and wholesale funding costs.

For the second quarter of 2026, average interest-earning assets decreased $81.2 million, or 2%, from the same period in 2025, while the yield on those assets declined eight basis points to 5.02%. The decline in average earning assets was driven primarily by lower investment securities balances and decreases in real estate loans and agricultural production loans.

Average interest-bearing liabilities decreased $23.7 million in the second quarter of 2026 compared to the same period in 2025, while the cost of those liabilities declined 26 basis points to 1.92%. The quarterly decrease in cost was primarily attributable to a 28 basis point reduction in the cost of interest-bearing deposits and a 23 basis point reduction in the cost of borrowed funds. Average interest-bearing deposit balances declined $42.8 million from the prior-year quarter, comprised primarily of a decline in higher-cost customer time deposits which decreased $62.7 million and brokered deposits which declined $16.2 million. These changes were partially offset by higher average balances of federal funds purchased, which increased to fund mortgage warehouse lending activity.

Sierra Bancorp Financial Results

July 27, 2026

Page 5

​

The reduction in funding costs more than offset the modest decline in earning asset yields, resulting in a six basis point increase in the net interest margin to 3.74% from 3.68% in the second quarter of 2025.

Compared to the linked first quarter of 2026, net interest income decreased $0.2 million. Average interest-earning assets declined $43.0 million, or 1%, while yields on earning assets decreased two basis points. Average interest-bearing liabilities declined $16.0 million and the cost of those liabilities decreased two basis points to 1.92%. As a result, interest margin was essentially stable at 3.74% for the second quarter of 2026, compared to 3.75% for the first quarter of 2026.

Net interest income for the first six months of 2026 increased $0.3 million to $61.0 million, compared to the same period in 2025. The increase resulted primarily from an improved net interest margin, driven by lower funding costs and partially offset by a modest decline in average earning assets. Average interest-earning assets decreased $19.6 million, or 1%, and the yield on those assets decreased nine basis points to 5.03%.

For the first six months of 2026, interest expense decreased $2.3 million to $21.1 million, compared to $23.4 million during the same period in 2025. The decrease was driven by a 23 basis point reduction in the cost of interest-bearing liabilities to 1.93%, partially offset by a $25.1 million increase in average interest-bearing liabilities. The reduction in funding costs contributed to a four basis point increase in net interest margin to 3.75% for the first six months of 2026, compared to 3.71% for the same period in 2025.

At June 30, 2026, approximately $457.5 million, or 19%, of the Company's loan portfolio consisted of mortgage warehouse facilities, which generally reprice immediately as interest rates change. In addition, approximately $214.4 million of collateralized loan obligations and other floating-rate securities within the available-for-sale portfolio continue to provide asset sensitivity through periodic rate resets.

Credit Loss Expense

The credit loss expense on loans was $2.3 million for the second quarter of 2026, compared to $1.2 million for the second quarter of 2025. For the first six months of 2026, the provision for credit losses on loans was $2.4 million, compared to $3.2 million for the same period in 2025. A $2.5 million specific reserve established on an agricultural production loan during the second quarter of 2026 was the primary driver of the increase in credit loss expense for the quarterly comparison. Despite this reserve build, year-to-date credit loss expense benefited from a $6.1 million reduction in net charge-offs compared to the first six months of 2025.

​

The Company recorded a benefit for credit losses on unfunded commitments of $0.1 million during the second quarter of 2026 and a benefit of $0.1 million for the first six months of 2026, compared to a benefit of less than $0.1 million for the second quarter of 2025 and a provision of $0.1 million for the first six months of 2025.

​

The Company also recorded an immaterial benefit related to credit losses on held-to-maturity debt securities during the first six months of 2026. No provision for credit losses was recorded on available-for-sale debt securities during the periods presented. Although certain debt securities remained in an unrealized loss position, the declines in fair value were primarily attributable to changes in market interest rates and not to expected credit losses.

​

Noninterest Income

Total noninterest income increased $0.6 million, or 8%, to $8.6 million in the second quarter of 2026 from $8.0 million in the linked quarter. The increase was driven primarily by a $1.8 million favorable change in earnings on separate account life insurance and an increase of $0.3 million in service charges and fees on deposits. This increase was partially offset by the absence of several non-recurring income items recognized during the first quarter of 2026, including a $0.4 million gain on the sale of fixed assets, a $0.4 million special FHLB dividend, and a $0.6 million increase in the fair value of bank stocks.

Compared to the second quarter of 2025, total noninterest income was unchanged at $8.6 million. Favorable variances included a $0.4 million increase in earnings on separate account BOLI, a $0.1 million increase in service charges and fees

Sierra Bancorp Financial Results

July 27, 2026

Page 6

​

on deposit accounts, and a modest increase in cash surrender value income from life insurance. These improvements were largely offset by a $0.6 million decrease in other income, mainly due to a decrease in gain on life insurance proceeds.

For the first six months of 2026, noninterest income increased $1.3 million, or 9%, to $16.5 million compared to $15.2 million for the same period in 2025. The increase was driven primarily by a $0.5 million increase in earnings on separate account life insurance, a $0.3 million increase in cash surrender value income from life insurance, a $0.2 million increase in service charges and fees on deposit accounts, and a $0.4 million favorable variance from gains on sales of fixed assets. These favorable changes were partially offset by lower gains on sale of investment securities.

The Company’s non‑qualified deferred compensation plan for officers and directors allows participants to defer a portion of their earnings and select from various hypothetical investment alternatives to determine their individual returns. The Company economically offsets this liability with separate account life insurance policies that are invested in similar underlying fund types within the life insurance policy. Because the deferred compensation liability and the separate account life insurance asset are not contractually linked, differences in balances, fund performance, and insurance costs can result in temporary timing mismatches between changes in separate account life insurance income and the related deferred compensation expense.

Earnings on separate account life insurance were $1.4 million for the second quarter of 2026, compared to a loss of $0.4 million in the linked quarter and earnings of $1.0 million in the second quarter of 2025. For the first six months of 2026, earnings on separate account life insurance totaled $1.0 million, compared to $0.5 million for the same period in 2025. These changes reflect market-driven fluctuations in the value of the underlying investment alternatives and do not represent changes in the operating performance or credit quality of the Company.

The majority of the related deferred compensation expense or benefit is reported within professional services expense under deferred directors' fees, as it primarily relates to directors' deferred compensation elections. Deferred directors' fee expense was $1.0 million during the second quarter of 2026, compared to a benefit of $0.6 million in the linked quarter and expense of $0.9 million in the second quarter of 2025. For the first six months of 2026, deferred directors' fee expense totaled $0.5 million, compared to $0.5 million during the same period in 2025.

Noninterest Expense

Total noninterest expense increased $1.7 million, or 8%, to $23.5 million during the second quarter of 2026 from $21.8 million in the linked first quarter of 2026 primarily due to deferred compensation expense described above.

Compared to the second quarter of 2025, total noninterest expense decreased $0.3 million, or 1%. Salaries and benefits expense remained essentially unchanged from the prior year quarter. Other noninterest expense decreased $0.3 million, primarily due to lower deposit service costs and other operating expenses. These favorable variances were partially offset by higher deferred compensation expense, legal and accounting costs, and directors' fees.

For the first six months of 2026, noninterest expense decreased $0.9 million, or 2%, to $45.3 million from $46.2 million for the same period in 2025. Salaries and benefits decreased $0.3 million, while other noninterest expense declined $0.7 million. The improvement was primarily attributable to lower deposit service costs, lower operating expenses, and reduced sundry and teller expenses, partially offset by higher occupancy costs, legal and accounting expenses, and director-related costs. These results reflect management's continued focus on maintaining a relatively flat expense base while selectively investing in strategic growth initiatives, technology enhancements, regulatory compliance, and customer service capabilities.

Overall full-time equivalent employees were 452 at June 30, 2026, as compared to 465 at December 31, 2025, and 494 at June 30, 2025.

The Company's effective tax rate was 25.3% for the second quarter of 2026, unchanged from the second quarter of 2025 and as compared to 25.2% in the linked first quarter of 2026. For the first six months of 2026, the effective tax rate was

Sierra Bancorp Financial Results

July 27, 2026

Page 7

​

25.2%, compared to 25.5% for the same period in 2025. The lower year-to-date effective tax rate reflects the continued benefit of tax-exempt income and tax credit investments as a percentage of pre-tax earnings.

Balance Sheet Summary

Total assets decreased $108.7 million, or 3%, during the first six months of 2026 to $3.72 billion at June 30, 2026. The decline was primarily attributable to a $90.8 million decrease in gross loans and a $21.4 million decrease in investment securities, partially offset by a $7.1 million increase in cash and cash equivalents.

The decrease in gross loan balances compared to December 31, 2025, was primarily driven by a $60.9 million reduction in mortgage warehouse balances, reflecting normal fluctuations in mortgage origination activity and secondary market demand. Other changes in loan balances were primarily attributable to scheduled paydowns, payoffs, and normal customer activity. Despite the decline in period-end balances, mortgage warehouse average balances increased $8.0 million during the second quarter of 2026 compared to the linked quarter. Average balances of commercial real estate and commercial and industrial loans declined modestly during the quarter, while period-end balances remained relatively stable. As the quarter progressed, however, loan production strengthened significantly, reflecting a shift in momentum entering the third quarter of 2026. This improvement was particularly evident within the commercial real estate and commercial and industrial portfolios and resulted in an enhanced pipeline of lending opportunities entering the second half of the year.

The Company's loan portfolio remains diversified, with commercial real estate representing 57% of total loans, mortgage warehouse balances representing 19%, residential real estate comprising 14%, and other commercial loans representing 7% of the portfolio at June 30, 2026. Commercial real estate balances remained relatively stable during the first six months of the year despite elevated payoff activity, reflecting continued success in replacing runoff with new production.

As indicated in the loan rollforward table below, new credit extended for the second quarter of 2026 increased $41.6 million over the linked quarter to $49.4 million and increased $1.2 million over the same period in 2025. The Company also had $59.6 million in loan paydowns and maturities, a $27.4 million decline in line of credit utilization, and a decrease of $60.9 million in mortgage warehouse facility utilization for the first half of 2026.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

LOAN ROLLFORWARD

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(Dollars in Thousands, Unaudited)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

For the three months ended:

​

For the six months ended:

​

​

​

6/30/2026

​

​

3/31/2026

​

​

6/30/2025

​

​

6/30/2026

​

​

6/30/2025

Gross loans beginning balance

​

$

2,466,891

​

$

2,546,880

​

$

2,306,762

​

$

2,546,880

​

$

2,331,341

New credit extended

​

​

49,370

​

​

7,811

​

​

48,147

​

​

57,181

​

​

114,517

Changes in line of credit utilization (1)

​

​

(4,841)

​

​

(22,592)

​

​

2,587

​

​

(27,433)

​

​

(9,542)

Change in mortgage warehouse

​

​

(20,997)

​

​

(39,880)

​

​

118,665

​

​

(60,877)

​

​

75,496

Pay-downs, maturities, charge-offs and amortization

​

​

(34,217)

​

​

(25,328)

​

​

(41,556)

​

​

(59,545)

​

​

(77,207)

Gross loans ending balance

​

​

2,456,206

​

​

2,466,891

​

​

2,434,605

​

$

2,456,206

​

$

2,434,605

Deferred costs and (fees), net

​

​

(146)

​

​

(97)

​

​

4

​

​

(146)

​

​

4

Gross loans, amortized cost

​

$

2,456,060

​

$

2,466,794

​

$

2,434,609

​

$

2,456,060

​

$

2,434,609

(1) Change does not include new balances on lines of credit extended during the respective periods as such balances are included as part of “New credit extended” line above.

​

​

Sierra Bancorp Financial Results

July 27, 2026

Page 8

​

A summary of the Company’s unfunded commitments and utilization is presented below (dollars in thousands, unaudited):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

June 30, 2026

​

December 31, 2025

​

June 30, 2025

​

​

Line Available (2)

​

Utilization %

​

Line Available (2)

​

Utilization %

​

Line Available (2)

​

Utilization %

Real estate:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Residential real estate

​

$

12,457

​

48.15%

​

$

15,726

​

44.50%

​

$

18,792

​

40.69%

Commercial real estate

​

​

20,230

​

87.59%

​

​

23,203

​

86.93%

​

​

29,150

​

84.50%

Other construction/land

​

​

985

​

92.15%

​

​

2,634

​

79.10%

​

​

5,781

​

54.22%

Farmland

​

​

3,372

​

79.32%

​

​

3,126

​

80.20%

​

​

4,968

​

66.73%

Total real estate

​

​

37,044

​

82.84%

​

​

44,689

​

80.92%

​

​

58,691

​

76.27%

Other commercial

​

​

172,504

​

48.94%

​

​

187,084

​

48.81%

​

​

202,473

​

44.39%

Consumer

​

​

4,461

​

22.62%

​

​

4,580

​

24.29%

​

​

4,789

​

23.81%

Subtotal (1)

​

​

214,009

​

61.75%

​

​

236,353

​

61.00%

​

​

265,953

​

56.94%

Mortgage warehouse facilities

​

​

336,543

​

57.61%

​

​

247,667

​

67.67%

​

​

334,604

​

54.57%

Overdrafts - Commercial and Consumer

​

​

66,452

​

1.46%

​

​

69,112

​

1.40%

​

​

69,944

​

1.24%

Total

​

$

617,004

​

56.58%

​

$

553,132

​

61.64%

​

$

670,501

​

52.95%

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Unused commitment as a percent of gross loans, amortized cost

​

​

25.12%

​

​

​

​

21.72%

​

​

​

​

27.54%

​

​

Unused mortgage warehouse facilities as percent of gross loans, amortized cost

​

​

13.70%

​

​

​

​

9.72%

​

​

​

​

13.74%

​

​

(1) Excludes mortgage warehouse facilities and overdraft lines, both of which are unconditionally cancellable.

(2) Represents unfunded loan commitments available to customers.

Total deposits increased $54.6 million, or 2%, during the first six months of 2026. Core non-maturity deposits increased $67.8 million, or 3%, while customer time deposits decreased $10.3 million, or 2%. Wholesale brokered deposits decreased $2.9 million during the period due to growth in core deposits. Noninterest-bearing deposits increased $30.7 million during the first six months of 2026 and represented 35.0% of total deposits at June 30, 2026, compared to 34.6% at December 31, 2025, and 35.8% at June 30, 2025. The Company's strong base of noninterest-bearing deposits continued to support a favorable funding mix and contributed to lower funding costs.

​

Total borrowed funds totaled $363.0 million at June 30, 2026, consisting of $122.4 million in customer repurchase agreements, $120.0 million in overnight borrowings, $35.0 million in FHLB term advances, $49.5 million in long-term debt, and $36.1 million in subordinated debentures. Compared to December 31, 2025, total borrowed funds decreased $156.1 million, primarily due to a reduction in overnight borrowings and FHLB term advances as mortgage warehouse balances declined.

​

Overall uninsured deposits are estimated to be approximately $734.2 million, or 25% of total deposit balances, excluding public agency deposits that are subject to collateralization through a letter of credit issued by the FHLB. In addition, uninsured deposits of the Bank’s customers are eligible for FDIC pass-through insurance if the customer opens an IntraFi Insured Cash Sweep (ICS) account or a time deposit through the Certificate of Deposit Account Registry System (CDARS). IntraFi allows for up to $285 million per customer of pass-through FDIC insurance, which would more than cover each of the Bank’s deposit customers if such a customer desired to have such pass-through insurance. The Bank maintains a diversified deposit base with no significant customer concentrations and does not bank any cryptocurrency companies. At June 30, 2026, the Company had approximately 114,000 accounts and the 25 largest deposit balance customers had balances of approximately 11% of overall deposits. During the second quarter of 2026, there were seasonality fluctuations in the normal course of business, and one new customer addition to the composition of our 25 largest deposit balance customers.

​

Sierra Bancorp Financial Results

July 27, 2026

Page 9

​

The Company continues to have substantial liquidity which is managed daily. At June 30, 2026, and December 31, 2025, the Company had the following sources of primary and secondary liquidity (Dollars in Thousands):

​	​	​	​	​	​	​
Primary and secondary liquidity sources	​	​	6/30/2026	​	​	12/31/2025
Cash and cash equivalents	​	$	142,695	​	$	135,628
Unpledged investment securities	​	​	528,091	​	​	551,406
Excess pledged securities	​	​	52,540	​	​	35,620
FHLB borrowing availability	​	​	611,578	​	​	629,481
Unsecured lines of credit	​	​	366,785	​	​	250,785
Funds available through fed discount window	​	​	243,782	​	​	254,908
Totals	​	$	1,945,471	​	$	1,857,828

​

Total capital was $366.9 million at June 30, 2026, reflecting an increase of $2.0 million compared to $364.9 million at December 31, 2025. The increase in equity during the first six months of 2026 was primarily attributable to $22.4 million in net income, partially offset by $14.4 million in share repurchases, $6.8 million in cash dividends declared, and a $1.0 million increase in accumulated other comprehensive loss, primarily related to changes in the fair value of investment securities. The remaining difference was related to activity from stock options and restricted stock during the year.

Asset Quality

Total nonperforming assets, comprised of nonperforming loans and foreclosed assets, decreased $4.3 million to $10.5 million at June 30, 2026, from $14.8 million at December 31, 2025. The Company's ratio of nonperforming loans to gross loans improved to 0.43% at June 30, 2026, compared to 0.52% at December 31, 2025. The decline in nonperforming assets was primarily attributable to reductions in nonperforming commercial and agricultural credits, as well as the timely resolution and sale of an OREO asset in March 2026. Management individually evaluates all nonperforming loans for expected credit losses on a quarterly basis and believes the allowance for credit losses established for such loans is appropriate.

At June 30, 2026, loans past due 30 to 89 days and still accruing totaled $5.4 million compared to $6.8 million at December 31, 2025. Approximately $4.6 million of this balance related to a single commercial real estate loan that became 30 days past due near the end of the second quarter. Management believes the loan is well secured, with an estimated current loan-to-value ratio of approximately 51%, and therefore does not consider the credit to present a significant loss exposure.

The allowance for credit losses on loans increased $2.1 million to $23.6 million at June 30, 2026, compared to $21.5 million at December 31, 2025. The increase was primarily attributable to a $2.5 million reserve on a single agricultural loan, described earlier. Despite the higher allowance balance, asset quality metrics remained strong, with net charge-offs totaling $0.2 million during the first six months of 2026 compared to $6.3 million during the same period in 2025. The allowance for credit losses represented 0.96% of gross loans at June 30, 2026, compared to 0.84% at December 31, 2025.

​

​

Sierra Bancorp Financial Results

July 27, 2026

Page 10

​

The following tables highlight the coverage ratios by loan category at June 30, 2026, March 31, 2026, and December 31, 2025:

​	​	​	​	​	​	​	​	​	​	​
Allowance for Credit Losses on Loans by Category	​	​	​	​	​	​	​	​	​	​
(Dollars in Thousands, Unaudited)	​	​
​	​	As of June 30, 2026
​	​	​	Balance	​	​	Total Allowance	​	Percent of Portfolio	​	Coverage Ratio (1)
Real estate:	​	​	​	​	​	​	​	​	​	​
Commercial real estate	​	$	1,389,730	​	$	15,913	​	56.58%	​	1.15%
Other construction/land	​	​	15,851	​	​	307	​	0.65%	​	1.94%
Farmland	​	​	65,759	​	​	532	​	2.68%	​	0.81%
Total real estate (2)	​	​	1,471,340	​	​	16,752	​	59.91%	​	1.14%
Other Commercial	​	​	179,164	​	​	4,895	​	7.29%	​	2.73%
Consumer loans (including overdrafts)	​	​	2,524	​	​	108	​	0.10%	​	4.28%
Subtotal (2) (3)	​	​	1,653,028	​	​	21,755	​	67.30%	​	1.32%
Residential real estate	​	​	345,575	​	​	1,320	​	14.07%	​	0.38%
Mortgage warehouse facilities	​	​	457,457	​	​	525	​	18.63%	​	0.11%
Gross loans, amortized cost	​	$	2,456,060	​	$	23,600	​	100.00%	​	0.96%

​

​	​	​	​	​	​	​	​	​	​	​
​	​	As of March 31, 2026
​	​	​	Balance	​	​	Total Allowance	​	Percent of Portfolio	​	Coverage Ratio (1)
Real estate:	​	​	​	​	​	​	​	​	​	​
Commercial real estate	​	$	1,381,770	​	$	15,977	​	56.01%	​	1.16%
Other construction/land	​	​	15,242	​	​	299	​	0.62%	​	1.96%
Farmland	​	​	66,218	​	​	542	​	2.68%	​	0.82%
Total real estate (2)	​	​	1,463,230	​	​	16,818	​	59.32%	​	1.15%
Other Commercial	​	​	172,653	​	​	2,351	​	7.00%	​	1.36%
Consumer loans (including overdrafts)	​	​	2,597	​	​	109	​	0.11%	​	4.20%
Subtotal (2) (3)	​	​	1,638,480	​	​	19,278	​	66.42%	​	1.18%
Residential real estate	​	​	349,860	​	​	1,368	​	14.18%	​	0.39%
Mortgage warehouse facilities	​	​	478,454	​	​	604	​	19.40%	​	0.13%
Gross loans, amortized cost	​	$	2,466,794	​	$	21,250	​	100.00%	​	0.86%

​

​	​	​	​	​	​	​	​	​	​	​
​	​	As of December 31, 2025
​	​	​	Balance	​	​	Total Allowance	​	Percent of Portfolio	​	Coverage Ratio (1)
Real estate:	​	​	​	​	​	​	​	​	​	​
Commercial real estate	​	$	1,390,890	​	$	16,354	​	54.61%	​	1.18%
Other construction/land	​	​	14,414	​	​	296	​	0.57%	​	2.05%
Farmland	​	​	68,307	​	​	496	​	2.68%	​	0.73%
Total real estate (2)	​	​	1,473,611	​	​	17,146	​	57.86%	​	1.16%
Other Commercial	​	​	192,577	​	​	2,146	​	7.56%	​	1.11%
Consumer loans (including overdrafts)	​	​	2,810	​	​	112	​	0.11%	​	3.99%
Subtotal (2) (3)	​	​	1,668,998	​	​	19,404	​	65.53%	​	1.16%
Residential real estate	​	​	359,514	​	​	1,411	​	14.12%	​	0.39%
Mortgage warehouse facilities	​	​	518,333	​	​	665	​	20.35%	​	0.13%
Gross loans, amortized cost	​	$	2,546,845	​	$	21,480	​	100.00%	​	0.84%

(1) Coverage ratio equals allowance for credit losses on loans divided by amortized cost.

(2) Does not include residential real estate.

(3) Does not include mortgage warehouse facilities.

​

Mortgage warehouse balances historically have incurred nominal losses and therefore carry a significantly lower reserve than other loan categories. At June 30, 2026, mortgage warehouse balances totaled $457.5 million and represented approximately 19% of the loan portfolio, while the related allowance was $0.5 million, or 0.11% of outstanding balances.

Sierra Bancorp Financial Results

July 27, 2026

Page 11

​

Excluding mortgage warehouse balances and residential real estate loans, the allowance for credit losses as a percentage of gross loans was 1.32% at June 30, 2026, compared to 1.18% at March 31, 2026, and 1.16% at December 31, 2025.

The Company's largest loan segment, commercial real estate, continues to maintain a strong reserve coverage ratio of 1.15% at June 30, 2026. The most significant change in reserve levels occurred within the other commercial loan portfolio, where the allowance increased to $4.9 million, or 2.73% of loans, compared to $2.4 million, or 1.36%, at March 31, 2026. The increase primarily reflects an increase in specific reserves discussed above as well as changes in portfolio composition and management's assessment of credit risk within the segment.

Management's detailed analysis indicates that the Company's allowance for credit losses on loans should be sufficient to cover credit losses for the life of the loans outstanding as of June 30, 2026, but no assurance can be given that the Company will not experience substantial future losses relative to the size of the loan and lease loss allowance. The Company calculates the allowance for credit losses using a combination of quantitative and qualitative factors by call report category.

About Sierra Bancorp

Sierra Bancorp is the holding Company for Bank of the Sierra (www.bankofthesierra.com), which is in its 49^th year of operations and strives to be the preeminent bank headquartered in the South San Joaquin Valley.

Bank of the Sierra offers a broad range of retail and commercial banking services through its 34 full-service branches located within the counties of Tulare, Kern, Kings, Fresno, Ventura, San Luis Obispo, and Santa Barbara. The Bank also maintains an online branch and provides specialized lending services through its mortgage warehouse division. Bank of the Sierra is recognized as one of the strongest and top-performing community banks in the country, with a 5-star rating from Bauer Financial.

Forward-Looking Statements

The statements contained in this release that are not historical facts are forward-looking statements based on management's current expectations and beliefs concerning future de­velopments and their potential effects on the Company. Readers are cautioned not to unduly rely on forward looking statements. Actual results may differ from those projected. These forward-looking statements involve risks and uncertainties including but not limited to the health of the national and local economies, loan portfolio performance, the Company's ability to attract and retain skilled employees, customers' service expectations, the Company's ability to successfully de­ploy new technology, the success of acquisitions and branch expansion, changes in interest rates, and other factors detailed in the Company's SEC filings, including the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of the Company's most recent Form 10-K and Form 10-Q.

​

Sierra Bancorp Financial Results

July 27, 2026

Page 12

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

STATEMENT OF CONDITION

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(Dollars in Thousands, Unaudited)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

ASSETS

​

​

6/30/2026

​

​

3/31/2026

​

​

12/31/2025

​

​

9/30/2025

​

​

6/30/2025

Cash and due from banks

​

$

142,695

​

$

156,372

​

$

135,628

​

$

95,501

​

$

130,012

Investment securities

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Available-for-sale, at fair value

​

​

611,822

​

​

615,401

​

​

625,330

​

​

596,933

​

​

668,834

Held-to-maturity, amortized cost, net of allowance for credit losses

​

​

282,880

​

​

287,583

​

​

290,811

​

​

294,511

​

​

298,484

Total investment securities

​

​

894,702

​

​

902,984

​

​

916,141

​

​

891,444

​

​

967,318

Real estate loans

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Residential real estate

​

​

345,575

​

​

349,860

​

​

359,514

​

​

364,277

​

​

371,415

Commercial real estate

​

​

1,389,730

​

​

1,381,770

​

​

1,390,890

​

​

1,404,681

​

​

1,392,075

Other construction/land

​

​

15,851

​

​

15,242

​

​

14,414

​

​

13,420

​

​

11,662

Farmland

​

​

65,759

​

​

66,218

​

​

68,307

​

​

67,860

​

​

67,967

Total real estate loans

​

​

1,816,915

​

​

1,813,090

​

​

1,833,125

​

​

1,850,238

​

​

1,843,119

Other commercial

​

​

179,164

​

​

172,653

​

​

192,577

​

​

185,958

​

​

186,620

Mortgage warehouse facilities

​

​

457,457

​

​

478,454

​

​

518,333

​

​

452,683

​

​

401,896

Consumer loans

​

​

2,524

​

​

2,597

​

​

2,810

​

​

2,909

​

​

2,974

Gross loans, amortized cost

​

​

2,456,060

​

​

2,466,794

​

​

2,546,845

​

​

2,491,788

​

​

2,434,609

Allowance for credit losses on loans

​

​

(23,600)

​

​

(21,250)

​

​

(21,480)

​

​

(25,180)

​

​

(21,680)

Net loans

​

​

2,432,460

​

​

2,445,544

​

​

2,525,365

​

​

2,466,608

​

​

2,412,929

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Bank premises and equipment

​

​

14,053

​

​

14,447

​

​

14,974

​

​

15,056

​

​

15,285

Other assets

​

​

236,701

​

​

235,115

​

​

237,171

​

​

240,768

​

​

244,758

Total assets

​

$

3,720,611

​

$

3,754,462

​

$

3,829,279

​

$

3,709,377

​

$

3,770,302

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

LIABILITIES AND CAPITAL

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Noninterest demand deposits

​

$

1,026,319

​

$

1,028,678

​

$

995,623

​

$

1,072,927

​

$

1,065,742

Interest-bearing transaction accounts

​

​

591,515

​

​

604,016

​

​

581,746

​

​

635,279

​

​

603,294

Savings deposits

​

​

364,455

​

​

364,830

​

​

365,064

​

​

357,107

​

​

352,803

Money market deposits

​

​

179,706

​

​

153,438

​

​

151,760

​

​

156,255

​

​

148,084

Customer time deposits

​

​

451,819

​

​

454,459

​

​

462,153

​

​

476,242

​

​

514,596

Brokered deposits

​

​

317,177

​

​

320,385

​

​

320,090

​

​

234,950

​

​

289,950

Total deposits

​

​

2,930,991

​

​

2,925,806

​

​

2,876,436

​

​

2,932,760

​

​

2,974,469

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Repurchase agreements

​

​

122,364

​

​

127,811

​

​

130,853

​

​

125,749

​

​

126,509

Long-term debt

​

​

49,528

​

​

49,506

​

​

49,483

​

​

49,461

​

​

49,438

Subordinated debentures

​

​

36,106

​

​

36,061

​

​

36,017

​

​

35,972

​

​

35,928

Other interest-bearing liabilities

​

​

155,000

​

​

185,000

​

​

302,700

​

​

135,000

​

​

154,400

Total deposits and interest-bearing liabilities

​

​

3,293,989

​

​

3,324,184

​

​

3,395,489

​

​

3,278,942

​

​

3,340,744

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Allowance for credit losses on unfunded loan commitments

​

​

570

​

​

660

​

​

710

​

​

790

​

​

810

Other liabilities

​

​

59,155

​

​

65,904

​

​

68,217

​

​

69,562

​

​

73,041

Total capital

​

​

366,897

​

​

363,714

​

​

364,863

​

​

360,083

​

​

355,707

Total liabilities and capital

​

$

3,720,611

​

$

3,754,462

​

$

3,829,279

​

$

3,709,377

​

$

3,770,302

​

​

​

Sierra Bancorp Financial Results

July 27, 2026

Page 13

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

GOODWILL AND INTANGIBLE ASSETS

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(Dollars in Thousands, Unaudited)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

6/30/2026

​

​

3/31/2026

​

​

12/31/2025

​

​

9/30/2025

​

​

6/30/2025

Goodwill

​

$

27,357

​

$

27,357

​

$

27,357

​

$

27,357

​

$

27,357

Core deposit intangible

​

​

—

​

​

13

​

​

52

​

​

132

​

​

294

Total intangible assets

​

$

27,357

​

$

27,370

​

$

27,409

​

$

27,489

​

$

27,651

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

CREDIT QUALITY

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(Dollars in Thousands, Unaudited)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

6/30/2026

​

​

3/31/2026

​

​

12/31/2025

​

​

9/30/2025

​

​

6/30/2025

Nonperforming loans

​

$

10,544

​

$

10,410

​

$

13,231

​

$

14,006

​

$

14,981

Foreclosed assets

​

​

—

​

​

—

​

​

1,565

​

​

1,839

​

​

—

Total nonperforming assets

​

$

10,544

​

$

10,410

​

$

14,796

​

$

15,845

​

$

14,981

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Quarterly net (recoveries) charge offs

​

$

(67)

​

$

307

​

$

2,915

​

$

209

​

$

6,580

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Past due and still accruing (30-89)

​

$

5,424

​

$

907

​

$

6,835

​

$

187

​

$

3,033

Classified loans

​

$

29,304

​

$

31,595

​

$

31,433

​

$

32,111

​

$

35,700

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Nonperforming loans / gross loans, amortized cost

​

​

0.43%

​

​

0.42%

​

​

0.52%

​

​

0.56%

​

​

0.62%

NPA's / loans plus foreclosed assets

​

​

0.43%

​

​

0.42%

​

​

0.58%

​

​

0.64%

​

​

0.62%

Allowance for credit losses on loans / gross loans, amortized cost

​

​

0.96%

​

​

0.86%

​

​

0.84%

​

​

1.01%

​

​

0.89%

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

SELECT PERIOD-END STATISTICS

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(Unaudited)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

6/30/2026

​

​

3/31/2026

​

​

12/31/2025

​

​

9/30/2025

​

​

6/30/2025

Shareholders' equity / total assets

​

​

9.86%

​

​

9.69%

​

​

9.53%

​

​

9.71%

​

​

9.43%

Gross loans, amortized cost / deposits

​

​

83.80%

​

​

84.31%

​

​

88.54%

​

​

84.96%

​

​

81.85%

Noninterest-bearing deposits / total deposits

​

​

35.02%

​

​

35.16%

​

​

34.61%

​

​

36.58%

​

​

35.83%

Core non-maturity deposits

​

$

2,161,995

​

$

2,150,962

​

$

2,094,193

​

$

2,221,568

​

$

2,169,923

Deferred loan (costs)/fees

​

$

(146)

​

$

(97)

​

$

(35)

​

$

9

​

$

4

​

​

​

​

​

​

Sierra Bancorp Financial Results

July 27, 2026

Page 14

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

CONSOLIDATED INCOME STATEMENT

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(Dollars in Thousands, Unaudited)

​

​

For the three months ended:

​

​

For the six months ended:

​

​

​

6/30/2026

​

​

3/31/2026

​

​

6/30/2025

​

​

6/30/2026

​

​

6/30/2025

Interest income

​

$

40,939

​

$

41,196

​

$

42,717

​

$

82,135

​

$

84,170

Interest expense

​

​

10,527

​

​

10,588

​

​

12,064

​

​

21,115

​

​

23,405

Net interest income

​

​

30,412

​

​

30,608

​

​

30,653

​

​

61,020

​

​

60,765

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Credit loss expense - loans

​

​

2,283

​

​

77

​

​

1,210

​

​

2,360

​

​

3,171

Credit loss (benefit) expense - unfunded commitments

​

​

(90)

​

​

(50)

​

​

(10)

​

​

(140)

​

​

100

Credit loss (benefit) - debt securities held-to-maturity

​

​

-

​

​

(1)

​

​

-

​

​

(1)

​

​

-

Net interest income after credit loss (benefit)

​

​

28,219

​

​

30,582

​

​

29,453

​

​

58,801

​

​

57,494

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Service charges and fees on deposit accounts

​

​

5,987

​

​

5,673

​

​

5,855

​

​

11,660

​

​

11,436

Net gain on sale of securities available-for-sale

​

​

-

​

​

-

​

​

1

​

​

-

​

​

124

Net gain (loss) on sale of fixed assets

​

​

-

​

​

360

​

​

(19)

​

​

360

​

​

(22)

Increase in cash surrender value of life insurance

​

​

416

​

​

419

​

​

343

​

​

835

​

​

581

Earnings (loss) on separate account life insurance

​

​

1,386

​

​

(379)

​

​

973

​

​

1,006

​

​

470

Other income

​

​

781

​

​

1,896

​

​

1,400

​

​

2,678

​

​

2,606

Total noninterest income

​

​

8,570

​

​

7,969

​

​

8,553

​

​

16,539

​

​

15,195

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Salaries and benefits

​

​

12,548

​

​

12,700

​

​

12,544

​

​

25,247

​

​

25,547

Occupancy expense

​

​

3,204

​

​

3,085

​

​

3,142

​

​

6,289

​

​

6,120

Other noninterest expenses

​

​

7,758

​

​

6,039

​

​

8,081

​

​

13,798

​

​

14,517

Total noninterest expense

​

​

23,510

​

​

21,824

​

​

23,767

​

​

45,334

​

​

46,184

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Income before taxes

​

​

13,279

​

​

16,727

​

​

14,239

​

​

30,006

​

​

26,505

Provision for income taxes

​

​

3,360

​

​

4,207

​

​

3,606

​

​

7,567

​

​

6,771

Net income

​

$

9,919

​

$

12,520

​

$

10,633

​

$

22,439

​

$

19,734

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

TAX DATA

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Tax-exempt muni income

​

$

1,678

​

$

1,624

​

$

1,577

​

$

3,302

​

$

3,153

Interest income - fully tax equivalent

​

$

41,385

​

$

41,628

​

$

43,136

​

$

83,013

​

$

85,008

​

Sierra Bancorp Financial Results

July 27, 2026

Page 15

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

PER SHARE DATA

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(Unaudited)

​

​

For the three months ended:

​

​

For the six months ended:

​

​

​

6/30/2026

​

​

3/31/2026

​

​

6/30/2025

​

​

6/30/2026

​

​

6/30/2025

Basic earnings per share

​

$

0.77

​

$

0.96

​

$

0.78

​

$

1.74

​

$

1.44

Diluted earnings per share

​

$

0.77

​

$

0.96

​

$

0.78

​

$

1.72

​

$

1.43

Common dividends

​

$

0.26

​

$

0.26

​

$

0.25

​

$

0.52

​

$

0.50

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Weighted average shares outstanding

​

​

12,848,133

​

​

12,988,932

​

​

13,563,910

​

​

12,917,542

​

​

13,692,003

Weighted average diluted shares

​

​

12,959,127

​

​

13,097,176

​

​

13,637,252

​

​

13,027,893

​

​

13,777,006

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Book value per basic share (EOP)

​

$

28.30

​

$

27.78

​

$

26.00

​

$

28.30

​

$

26.00

Tangible book value per share (EOP) (1)

​

$

26.19

​

$

25.69

​

$

23.98

​

$

26.19

​

$

23.98

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Common shares outstanding (EOP)

​

​

12,963,397

​

​

13,093,184

​

​

13,681,828

​

​

12,963,397

​

​

13,681,828

(1) See reconciliation of non-GAAP financial measures to the corresponding GAAP measurement in "Non-GAAP Financial Measures".

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

KEY FINANCIAL RATIOS

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(Unaudited)

​

​

For the three months ended:

​

​

For the six months ended:

​

​

​

6/30/2026

​

​

3/31/2026

​

​

6/30/2025

​

​

6/30/2026

​

​

6/30/2025

Return on average equity

​

​

10.90%

​

​

13.88%

​

​

12.08%

​

​

12.38%

​

​

11.26%

Return on average assets

​

​

1.09%

​

​

1.39%

​

​

1.16%

​

​

1.24%

​

​

1.09%

Net interest margin (tax-equivalent) (1)

​

​

3.74%

​

​

3.75%

​

​

3.68%

​

​

3.75%

​

​

3.71%

Efficiency ratio (tax-equivalent) (1) (2)

​

​

58.91%

​

​

56.45%

​

​

59.43%

​

​

57.70%

​

​

60.00%

Net charge-offs (recoveries) / average loans (not annualized)

​

​

0.00%

​

​

0.01%

​

​

0.27%

​

​

0.01%

​

​

0.27%

(1) Computed on a tax equivalent basis utilizing a federal income tax rate of 21%.

(2) See reconciliation of non-GAAP financial measures to the corresponding GAAP measurement in "Non-GAAP Financial Measures".

​

Sierra Bancorp Financial Results

July 27, 2026

Page 16

​

​	​	​	​	​	​	​	​	​	​
NON-GAAP FINANCIAL MEASURES	​	​	​	​	​	​	​	​	​
(Dollars in Thousands, Unaudited)	​	As of:
​	​	​	6/30/2026	​	​	3/31/2026	​	​	6/30/2025
Total stockholders' equity	​	$	366,897	​	$	363,714	​	$	355,707
Less: goodwill and other intangible assets	​	​	27,357	​	​	27,370	​	​	27,651
Tangible common equity	​	$	339,540	​	$	336,344	​	$	328,056
​	​	​	​	​	​	​	​	​	​
Total assets	​	$	3,720,611	​	$	3,754,462	​	$	3,770,302
Less: goodwill and other intangible assets	​	​	27,357	​	​	27,370	​	​	27,651
Tangible assets	​	$	3,693,254	​	$	3,727,092	​	$	3,742,651
​	​	​	​	​	​	​	​	​	​
Total stockholders' equity (bank only)	​	$	447,070	​	$	439,623	​	$	430,250
Less: goodwill and other intangible assets (bank only)	​	​	27,357	​	​	27,370	​	​	27,651
Tangible common equity (bank only)	​	$	419,713	​	$	412,253	​	$	402,599
​	​	​	​	​	​	​	​	​	​
Total assets (bank only)	​	$	3,718,414	​	$	3,751,904	​	$	3,766,071
Less: goodwill and other intangible assets (bank only)	​	​	27,357	​	​	27,370	​	​	27,651
Tangible assets (bank only)	​	$	3,691,057	​	$	3,724,534	​	$	3,738,420
​	​	​	​	​	​	​	​	​	​
Common shares outstanding	​	​	12,963,397	​	​	13,093,184	​	​	13,681,828
​	​	​	​	​	​	​	​	​	​
Book value per common share (total stockholders' equity / shares outstanding)	​	$	28.30	​	$	27.78	​	$	26.00
Tangible book value per common share (tangible common equity / shares outstanding)	​	$	26.19	​	$	25.69	​	$	23.98
Equity ratio - GAAP (total stockholders' equity / total assets	​	​	9.86%	​	​	9.69%	​	​	9.43%
Tangible common equity ratio (tangible common equity / tangible assets)	​	​	9.19%	​	​	9.02%	​	​	8.77%
Tangible common equity ratio (bank only) (tangible common equity / tangible assets)	​	​	11.37%	​	​	11.07%	​	​	10.77%

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

For the three months ended:

​

For the six months ended:

Efficiency Ratio:

​

​

6/30/2026

​

​

3/31/2026

​

​

6/30/2025

​

​

6/30/2026

​

​

6/30/2025

Noninterest expense

​

$

23,510

​

$

21,824

​

$

23,767

​

$

45,334

​

​

46,184

Divided by:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Net interest income

​

​

30,412

​

​

30,608

​

​

30,653

​

​

61,020

​

​

60,765

Tax-equivalent interest income adjustments

​

​

446

​

​

432

​

​

419

​

​

878

​

​

838

Net interest income, adjusted

​

​

30,858

​

​

31,040

​

​

31,072

​

​

61,898

​

​

61,603

Noninterest income

​

​

8,570

​

​

7,969

​

​

8,553

​

​

16,539

​

​

15,195

Less gain (loss) on sale of securities

​

​

-

​

​

-

​

​

1

​

​

-

​

​

124

Less (loss) gain on sale of fixed assets

​

​

-

​

​

360

​

​

(19)

​

​

360

​

​

(22)

Tax-equivalent noninterest income adjustments

​

​

479

​

​

11

​

​

350

​

​

489

​

​

279

Noninterest income, adjusted

​

​

9,049

​

​

7,620

​

​

8,921

​

​

16,668

​

​

15,372

Net interest income plus noninterest income, adjusted

​

$

39,907

​

$

38,660

​

$

39,993

​

$

78,566

​

$

76,975

Efficiency Ratio (tax-equivalent)

​

​

58.91%

​

​

56.45%

​

​

59.43%

​

​

57.70%

​

​

60.00%

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

For the three months ended:

​

For the six months ended:

Pre-tax pre-provision income:

​

​

6/30/2026

​

​

3/31/2026

​

​

6/30/2025

​

​

6/30/2026

​

​

6/30/2025

Net income

​

$

9,919

​

$

12,520

​

$

10,633

​

$

22,439

​

$

19,734

Add: Provision for income taxes

​

​

3,360

​

​

4,207

​

​

3,606

​

​

7,567

​

​

6,771

Add: Provision for credit losses

​

​

2,193

​

​

26

​

​

1,200

​

​

2,219

​

​

3,271

Pre-tax pre-provision income

​

$

15,472

​

$

16,753

​

$

15,439

​

$

32,225

​

$

29,776

​

Sierra Bancorp Financial Results

July 27, 2026

Page 17

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

NONINTEREST INCOME/EXPENSE

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(Dollars in Thousands, Unaudited)

​

​

​

​

​

​

​

For the three months ended:

​

For the six months ended:

Noninterest income:

​

6/30/2026

​

3/31/2026

​

6/30/2025

​

6/30/2026

​

6/30/2025

Service charges and fees on deposit accounts

​ ​ ​

​

​

​

​

​

​

​

​

​

​

​

​ ​ ​

​

​

Interchange income on debit cards

​

$

2,077

​ ​ ​

$

1,941

​ ​ ​

$

2,056

​

$

4,018

​

$

4,008

Business analysis fees

​

​

1,174

​

​

1,030

​

​

1,123

​

​

2,204

​

​

2,157

Overdraft fee income

​

​

1,313

​

​

1,324

​

​

1,255

​

​

2,637

​

​

2,500

Other service charges and fees

​

​

1,423

​

​

1,378

​

​

1,421

​

​

2,801

​

​

2,771

Net (loss) gain on sale of securities available-for-sale

​

​

—

​

​

—

​

​

1

​

​

—

​

​

124

Gain (loss) on sale of fixed assets

​

​

—

​

​

360

​

​

(19)

​

​

360

​

​

(22)

Increase in cash surrender value of life insurance

​

​

416

​

​

419

​

​

343

​

​

835

​

​

581

(Loss) earnings on separate account life insurance

​

​

1,386

​

​

(379)

​

​

973

​

​

1,006

​

​

470

Other

​

​

781

​

​

1,896

​

​

1,400

​

​

2,678

​

​

2,606

Total noninterest income

​

$

8,570

​

$

7,969

​

$

8,553

​

$

16,539

​

$

15,195

As a % of average interest-earning assets (1)

​

​

1.04%

​

​

0.96%

​

​

1.01%

​

​

1.00%

​

​

0.91%

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Noninterest expense:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Salaries and employee benefits

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Salary and incentives

​

$

10,403

​

$

10,409

​

$

10,463

​

$

20,811

​

$

21,150

Employee benefits

​

​

2,009

​

​

2,288

​

​

1,953

​

​

4,297

​

​

4,253

Deferred compensation

​

​

136

​

​

3

​

​

128

​

​

139

​

​

144

Occupancy costs

​

​

3,204

​

​

3,085

​

​

3,142

​

​

6,289

​

​

6,120

Advertising and marketing costs

​

​

338

​

​

333

​

​

405

​

​

670

​

​

753

Data processing costs

​

​

1,657

​

​

1,583

​

​

1,566

​

​

3,240

​

​

3,064

Deposit services costs

​

​

1,983

​

​

1,948

​

​

2,118

​

​

3,931

​

​

4,109

Loan services costs

​

​

​

​

​

​

​

​

​

​

​

—

​

​

​

Loan processing

​

​

117

​

​

113

​

​

113

​

​

231

​

​

251

Foreclosed assets

​

​

1

​

​

17

​

​

(2)

​

​

18

​

​

2

Other operating costs

​

​

772

​

​

779

​

​

1,078

​

​

1,551

​

​

2,006

Professional services costs

​

​

​

​

​

​

​

​

​

​

​

—

​

​

​

Legal and accounting services

​

​

572

​

​

557

​

​

419

​

​

1,129

​

​

1,070

Director's costs

​

​

337

​

​

356

​

​

309

​

​

692

​

​

619

Deferred directors' fees cost/(benefit)

​

​

1,039

​

​

(572)

​

​

948

​

​

467

​

​

504

Other professional services

​

​

694

​

​

698

​

​

711

​

​

1,394

​

​

1,417

Stationery and supply costs

​

​

100

​

​

97

​

​

132

​

​

197

​

​

233

Sundry and tellers

​

​

148

​

​

130

​

​

284

​

​

278

​

​

489

Total noninterest expense

​

$

23,510

​

$

21,824

​

$

23,767

​

$

45,334

​

$

46,184

As a % of average interest-earning assets (1)

​

​

2.85%

​

​

2.64%

​

​

2.81%

​

​

2.74%

​

​

2.78%

Efficiency ratio (tax-equivalent) (2)(3)

​

​

58.91%

​

​

56.45%

​

​

59.43%

​

​

57.70%

​

​

60.00%

​

(1) Annualized

(2) Computed on a tax equivalent basis utilizing a federal income tax rate of 21%.

(3) See reconciliation of non-GAAP financial measures to the corresponding GAAP measurement in "Non-GAAP Financial Measures".

​

​

​

Sierra Bancorp Financial Results

July 27, 2026

Page 18

​

​	​	​	​	​	​	​	​	​	​	​	​	​
AVERAGE BALANCES AND RATES					​	​	​	​	​	​	​	​
(Dollars in Thousands, Unaudited)	​	​	​	​	​	​	​	​	​	​	​	​
​	​	For the quarter ended			​	For the quarter ended			​	For the quarter ended
​	​	6/30/2026			​	3/31/2026			​	6/30/2025
​	​	Average Balance (1)	Income/ Expense	Yield/ Rate (2)	​	Average Balance (1)	Income/ Expense	Yield/ Rate (2)	​	Average Balance (1)	Income/ Expense	Yield/ Rate (2)
Assets	​	​	​	​	​	​	​	​	​	​	​	​
Investments:	​	​	​	​	​	​	​	​	​	​	​	​
Interest-earning due from banks	​	$ 11,265	$ 112	3.99%	​	$ 23,411	$ 211	3.66%	​	$ 18,122	$ 211	4.67%
Taxable	​	695,359	7,965	4.59%	​	709,417	7,993	4.57%	​	770,413	9,295	4.84%
Non-taxable	​	207,513	1,678	4.11%	​	203,801	1,624	4.09%	​	196,364	1,577	4.08%
Total investments	​	914,137	9,755	4.48%	​	936,629	9,828	4.44%	​	984,899	11,083	4.68%
​	​	​	​	​	​	​	​	​	​	​	​	​
Loans: (3)	​	​	​	​	​	​	​	​	​	​	​	​
Real estate	​	1,803,504	22,250	4.95%	​	1,822,696	22,391	4.98%	​	1,849,725	22,589	4.90%
Agricultural production	​	58,703	723	4.94%	​	62,795	724	4.68%	​	72,933	915	5.03%
Commercial	​	106,435	1,531	5.77%	​	111,734	1,597	5.80%	​	109,407	1,612	5.91%
Consumer	​	2,445	54	8.86%	​	2,601	55	8.58%	​	3,214	64	7.99%
Mortgage warehouse facilities	​	422,257	6,608	6.28%	​	414,272	6,589	6.45%	​	368,592	6,440	7.01%
Other	​	2,393	18	3.02%	​	2,146	12	2.27%	​	2,351	14	2.39%
Total loans	​	2,395,737	31,184	5.22%	​	2,416,244	31,368	5.26%	​	2,406,222	31,634	5.27%
Total interest-earning assets (4)	​	3,309,874	40,939	5.02%	​	3,352,873	41,196	5.04%	​	3,391,121	42,717	5.10%
Other earning assets	​	17,935	​	​	​	17,069	​	​	​	17,062	​	​
Non-earning assets	​	318,610	​	​	​	283,935	​	​	​	280,045	​	​
Total assets	​	$ 3,646,419	​	​	​	$ 3,653,877	​	​	​	$ 3,688,228	​	​
​	​	​	​	​	​	​	​	​	​	​	​	​
Liabilities and shareholders' equity	​	​	​	​	​	​	​	​	​	​	​	​
Interest-bearing deposits:	​	​	​	​	​	​	​	​	​	​	​	​
Demand deposits	​	$ 237,488	$ 1,263	2.13%	​	$ 224,131	$ 1,104	2.00%	​	$ 224,649	$ 1,420	2.54%
NOW	​	361,845	97	0.11%	​	356,648	75	0.09%	​	375,695	140	0.15%
Savings accounts	​	366,475	111	0.12%	​	363,512	105	0.12%	​	354,798	97	0.11%
Money market	​	171,583	772	1.80%	​	154,469	616	1.62%	​	146,193	608	1.67%
Time deposits	​	454,295	3,216	2.84%	​	459,482	3,203	2.83%	​	516,970	4,283	3.32%
Brokered Deposits	​	228,210	2,402	4.22%	​	319,199	3,219	4.09%	​	244,401	2,778	4.56%
Total interest bearing deposits	​	1,819,896	7,861	1.73%	​	1,877,441	8,322	1.80%	​	1,862,706	9,326	2.01%
Borrowed funds:	​	​	​	​	​	​	​	​	​	​	​	​
Federal funds purchased	​	125,005	1,171	3.76%	​	42,782	395	3.74%	​	46,214	517	4.49%
Repurchase agreements	​	125,120	45	0.14%	​	128,430	63	0.20%	​	124,636	79	0.25%
Short term borrowings	​	3,606	34	3.78%	​	3,988	38	3.86%	​	24,716	277	4.50%
Long term FHLB Advances	​	40,714	389	3.83%	​	77,778	749	3.91%	​	80,000	780	3.91%
Long term debt	​	49,514	430	3.48%	​	49,492	431	3.53%	​	49,424	430	3.49%
Subordinated debentures	​	36,078	597	6.64%	​	36,034	590	6.64%	​	35,899	655	7.32%
Total borrowed funds	​	380,037	2,666	2.81%	​	338,504	2,266	2.71%	​	360,889	2,738	3.04%
Total interest-bearing liabilities	​	2,199,933	10,527	1.92%	​	2,215,945	10,588	1.94%	​	2,223,595	12,064	2.18%
Demand deposits - noninterest bearing	​	1,018,453	​	​	​	1,005,769	​	​	​	1,020,374	​	​
Other liabilities	​	63,077	​	​	​	66,346	​	​	​	91,191	​	​
Shareholders' equity	​	364,956	​	​	​	365,817	​	​	​	353,068	​	​
Total liabilities and shareholders' equity	​	$ 3,646,419	​	​	​	$ 3,653,877	​	​	​	$ 3,688,228	​	​
​	​	​	​	​	​	​	​	​	​	​	​	​
Interest income/interest earning assets	​	​	​	5.02%	​	​	​	5.04%	​	​	​	5.10%
Interest expense/interest earning assets	​	​	​	1.28%	​	​	​	1.28%	​	​	​	1.42%
Net interest income and margin (5)	​	​	$ 30,412	3.74%	​	​	$ 30,608	3.75%	​	​	$ 30,653	3.68%
​

(1) Average balances are obtained from the best available daily or monthly data and are net of deferred fees and related direct costs.

(2) Yields and net interest margin have been computed on a tax equivalent basis utilizing a 21% effective federal tax rate.

(3) Loans are gross of the allowance for possible loan losses. Loan fees have been included in the calculation of interest income. Net loan fees and loan acquisition FMV amortization were $(0.3) million and $(0.4) million for the quarters ended June 30, 2026 and 2025, respectively, and $(0.3) million for the quarter ended March 31, 2026.

(4) Non-accrual loans have been included in total loans for purposes of computing total earning assets.

(5) Net interest margin represents net interest income as a percentage of average interest-earning assets.

​

Sierra Bancorp Financial Results

July 27, 2026

Page 19

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

AVERAGE BALANCES AND RATES

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(Dollars in Thousands, Unaudited)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

For the six months ended

​

​

For the six months ended

​

​

6/30/2026

​

​

6/30/2025

​

​

Average Balance (1)

​

Income/ Expense

​

Yield/ Rate (2)

​

Average Balance (1)

​

Income/ Expense

​

Yield/ Rate (2)

Assets

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Investments:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Interest-earning due from banks

​

$

17,305

​

$

323

​

3.76%

​

$

36,281

​

$

799

​

4.44%

Taxable

​

​

702,349

​

​

15,957

​

4.58%

​

​

752,903

​

​

18,435

​

4.94%

Non-taxable

​

​

205,667

​

​

3,302

​

4.10%

​

​

196,957

​

​

3,153

​

4.09%

Total investments

​

​

925,321

​

​

19,582

​

4.46%

​

​

986,141

​

​

22,387

​

4.75%

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Loans:(3)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Real estate

​

$

1,813,047

​

$

44,642

​

4.97%

​

$

1,837,146

​

$

44,576

​

4.89%

Agricultural

​

​

60,738

​

​

1,447

​

4.80%

​

​

74,615

​

​

1,945

​

5.26%

Commercial

​

​

109,070

​

​

3,128

​

5.78%

​

​

106,296

​

​

3,127

​

5.93%

Consumer

​

​

2,522

​

​

109

​

8.72%

​

​

3,250

​

​

133

​

8.25%

Mortgage warehouse facilities

​

​

418,286

​

​

13,197

​

6.36%

​

​

341,075

​

​

11,970

​

7.08%

Other

​

​

2,270

​

​

30

​

2.67%

​

​

2,356

​

​

32

​

2.74%

Total loans

​

​

2,405,933

​

​

62,553

​

5.24%

​

​

2,364,738

​

​

61,783

​

5.27%

Total interest-earning assets (4)

​

​

3,331,254

​

​

82,135

​

5.03%

​

​

3,350,879

​

​

84,170

​

5.12%

Other earning assets

​

​

17,504

​

​

​

​

​

​

​

17,062

​

​

​

​

​

Non-earning assets

​

​

301,369

​

​

​

​

​

​

​

277,002

​

​

​

​

​

Total assets

​

$

3,650,127

​

​

​

​

​

​

$

3,644,943

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Liabilities and shareholders' equity

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Interest-bearing deposits:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Demand deposits

​

$

230,847

​

$

2,366

​

2.07%

​

$

216,258

​

$

2,712

​

2.53%

NOW

​

​

359,261

​

​

173

​

0.10%

​

​

377,009

​

​

259

​

0.14%

Savings accounts

​

​

365,002

​

​

216

​

0.12%

​

​

353,727

​

​

187

​

0.11%

Money market

​

​

163,073

​

​

1,387

​

1.72%

​

​

145,646

​

​

1,180

​

1.63%

Time deposits

​

​

456,874

​

​

6,421

​

2.83%

​

​

524,095

​

​

8,694

​

3.35%

Brokered deposits

​

​

273,453

​

​

5,621

​

4.15%

​

​

244,480

​

​

5,665

​

4.67%

Total interest-bearing deposits

​

​

1,848,510

​

​

16,184

​

1.77%

​

​

1,861,215

​

​

18,697

​

2.03%

Borrowed funds:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Federal funds purchased

​

​

84,121

​

​

1,565

​

3.75%

​

​

23,325

​

​

519

​

4.49%

Repurchase agreements

​

​

126,765

​

​

107

​

0.17%

​

​

118,533

​

​

148

​

0.25%

Short term borrowings

​

​

3,796

​

​

72

​

3.82%

​

​

14,437

​

​

323

​

4.51%

Long term FHLB Advances

​

​

59,144

​

​

1,138

​

3.88%

​

​

80,000

​

​

1,550

​

3.91%

Long-term debt

​

​

49,503

​

​

861

​

3.51%

​

​

49,413

​

​

860

​

3.51%

Subordinated debentures

​

​

36,056

​

​

1,188

​

6.64%

​

​

35,877

​

​

1,308

​

7.35%

Total borrowed funds

​

​

359,385

​

​

4,931

​

2.77%

​

​

321,585

​

​

4,708

​

2.95%

Total interest-bearing liabilities

​

​

2,207,895

​

​

21,115

​

1.93%

​

​

2,182,800

​

​

23,405

​

2.16%

Demand deposits - noninterest-bearing

​

​

1,012,146

​

​

​

​

​

​

​

1,011,895

​

​

​

​

​

Other liabilities

​

​

64,702

​

​

​

​

​

​

​

96,967

​

​

​

​

​

Shareholders' equity

​

​

365,384

​

​

​

​

​

​

​

353,281

​

​

​

​

​

Total liabilities and shareholders' equity

​

$

3,650,127

​

​

​

​

​

​

$

3,644,943

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Interest income/interest-earning assets

​

​

​

​

​

​

​

5.03%

​

​

​

​

​

​

​

5.12%

Interest expense/interest-earning assets

​

​

​

​

​

​

​

1.28%

​

​

​

​

​

​

​

1.41%

Net interest income and margin(5)

​

​

​

​

$

61,020

​

3.75%

​

​

​

​

$

60,765

​

3.71%

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(1) Average balances are obtained from the best available daily or monthly data and are net of deferred fees and related direct costs.

(2) Yields and net interest margin have been computed on a tax equivalent basis utilizing a 21% effective federal tax rate.

(3) Loans are gross of the allowance for possible loan losses. Loan fees have been included in the calculation of interest income. Net loan fees and loan acquisition FMV amortization were $(0.6) million and $(0.7) million for the six months ended June 30, 2026, and 2025, respectively.

(4) Non-accrual loans have been included in total loans for purposes of computing total earning assets.

(5) Net interest margin represents net interest income as a percentage of average interest-earning assets.

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Filing Exhibits & Attachments

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• EX-101 EX-101.PRE 9.6 KB