Sierra Bancorp Q3 net income surges 58% to $15.3 million

• Sierra Bancorp reported record third-quarter 2026 net income of $15.3 million, up 58% year over year, while diluted earnings per share rose 64% to $1.18, exceeding analysts' expectations of approximately $0.90.
• Net interest income increased 1% to $32.4 million, while net interest margin expanded to 3.91%, return on average assets reached 1.66% and the efficiency ratio improved to 54.86%.
• For the first nine months of 2026, net income increased 28% to $37.7 million, while Sierra declared a quarterly dividend of $0.27 per share, payable November 9, 2026.

Sierra Bancorp (NASDAQ:BSRR) reported record third-quarter 2026 net income of $15.3 million, a 58% increase from $9.7 million a year earlier, while diluted earnings per share climbed 64% to $1.18 from $0.72.

Quarterly earnings exceeded analysts' consensus estimate of approximately $0.90 per share, while reported revenue reached $50.6 million and net interest income increased 1% year over year to $32.4 million.

Net interest margin expanded to 3.91% from 3.78% a year earlier, while return on average assets increased to 1.66%, return on average equity reached 16.49% and the efficiency ratio improved to 54.86%.

Sierra declared a quarterly cash dividend of $0.27 per share, payable November 9, 2026, while tangible book value per share increased to $25.79 at September 30 from $25.42 at the end of 2025.

For the first nine months of 2026, net income increased 28% to $37.7 million, or $2.90 per diluted share, compared with $29.4 million, or $2.15 per share, a year earlier.

The company attributed its improved profitability partly to lower credit loss provisions and operating expenses, including a benefit from repayment of a previously reserved loan, while deposits increased 4% from year-end 2025 and nonperforming loans declined to 0.38% of gross loans.