Sierra Bancorp (NASDAQ:BSRR), the parent company of Bank of the Sierra, announced strong unaudited financial results for the first quarter of 2026 on Monday, reporting a 47% increase in diluted earnings per share compared to the same period last year.
The Porterville-based bank posted consolidated net income of $12.5 million, or $0.96 per diluted share, up from $9.1 million in the first quarter of 2025.
The bank’s performance was bolstered by improved profitability metrics across the board.
The return on average assets (ROAA) climbed to 1.39%, while the return on average equity (ROAE) rose to 13.88%.
A key driver of this growth was a heightened focus on operational efficiency; the bank’s efficiency ratio improved to 56.45% as overall expenses declined by 2.6% year-over-year.
Net interest margin also saw a slight expansion to 3.75%.
Sierra Bancorp continues to maintain a robust and low-cost deposit base.
Total deposits reached $3.01 billion at the end of the quarter, a 3% increase year-over-year.
Notably, noninterest-bearing deposits now account for 35% of the total deposit mix.
This disciplined approach to funding allowed the bank to lower its cost of funds to 1.33%, down from 1.46% in the prior year's first quarter.