Sierra Bancorp, the parent company of Bank of the Sierra, reported a net income of $42.3 million for the fiscal year ending December 31, 2025, marking a 4.4% increase from $40.6 million in 2024. The company's earnings per diluted share rose to $3.11, up from $2.82 in the previous year. Total assets increased by 6% to $3.8 billion, driven primarily by a $215.4 million rise in gross loans, which reached $2.5 billion. The net interest income also saw a 4% increase, totaling $124.7 million, attributed to a favorable shift in the mix of interest-bearing liabilities and an increase in loan balances.
In comparison to the previous fiscal year, Sierra Bancorp's total deposits decreased slightly by $15.2 million, or 0.5%, to $2.9 billion. This decline was primarily due to a reduction in higher-cost time deposits, which fell by $71.4 million. However, the company experienced growth in brokered deposits, which increased by $45.1 million. The number of deposit accounts also saw a decrease, with 116,570 accounts reported at year-end, down from 119,388 in 2024.
Strategically, Sierra Bancorp has focused on enhancing its operational efficiency and customer service offerings. The company has maintained a strong capital position, with total shareholders' equity rising to $364.9 million, a 2% increase from the previous year. The company’s capital ratios remain above the regulatory requirements, with a Tier 1 capital ratio of 10.80%, classifying it as "well capitalized." The company has also engaged in share repurchase activities, buying back 1,024,792 shares during the year.
Operationally, the company has continued to expand its loan portfolio, particularly in the mortgage warehouse segment, which saw a significant increase in utilization. The company reported a credit loss expense of $6.1 million, up from $4.6 million in 2024, primarily due to charge-offs related to a single agricultural loan relationship. Nonperforming assets decreased to $14.8 million, or 0.58% of total loans, down from $19.7 million in the previous year.
Looking ahead, Sierra Bancorp remains optimistic about its growth prospects, focusing on maintaining its strong capital position and enhancing its service offerings to attract and retain customers. The company is also closely monitoring economic conditions that could impact its loan portfolio, particularly in the agricultural sector, which is vital to its market area in California.
About SIERRA BANCORP
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