Table of Contents 0 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2025 Commission file number: 000-33063 SIERRA BANCORP (Exact name of Registrant as specified in its charter) California 33-0937517 (State of Incorporation) (IRS Employer Identification No) 86 North Main Street, Porterville, California 93257 (Address of principal executive offices ...

Sierra Bancorp (BSRR) came out with quarterly earnings of $0.65 per share, missing the Zacks Consensus Estimate of $0.66 per share. This compares to earnings of $0.64 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -1.52%. A quarter ago, it was expected that this parent company of Bank of the Sierra would post earnings of $0.72 per share when it actually produced earnings of $0.72, delivering no surprise.Over the last four qua ...

Exhibit 99.1 FOR IMMEDIATE RELEASE | Date: | April 28, 2025 | | --- | --- | | Contact: | Kevin McPhaill, President/CEO | | Phone: | (559) 782-4900 or (888) 454-BANK | | Website Address: | www.sierrabancorp.com | SIERRA BANCORP REPORTS FIRST QUARTER 2025 RESULTS PORTERVILLE, CALIF. – (BUSINESS WIRE) – Sierra Bancorp (Nasdaq: BSRR), parent of Bank of the Sierra, today announced its unaudited financial results for the quarter ended March 31, 2025. Sierra Bancorp reported consolidated net income of $9.1 million ...

Company Overview - Sierra Bancorp (BSRR) is headquartered in Porterville and operates in the Finance sector, with a year-to-date price change of 0.14% [3] - The company currently pays a dividend of $0.25 per share, resulting in a dividend yield of 3.45%, which is higher than the Banks - West industry's yield of 2.84% and the S&P 500's yield of 1.57% [3] Dividend Performance - The annualized dividend of Sierra Bancorp is $1, reflecting a 6.4% increase from the previous year [4] - Over the past five years, the company has raised its dividend four times, achieving an average annual increase of 3.93% [4] - The current payout ratio stands at 34%, indicating that the company distributes 34% of its trailing 12-month earnings per share as dividends [4] Earnings Outlook - Sierra Bancorp is projected to experience earnings growth this fiscal year, with the Zacks Consensus Estimate for 2025 at $2.95 per share, representing a year-over-year growth rate of 4.61% [5] Investment Appeal - The company is recognized as an attractive dividend investment, supported by a Zacks Rank of 1 (Strong Buy), indicating a compelling investment opportunity [7]

Regulatory Compliance - As of December 31, 2024 and 2023, both the Company and the Bank qualified as well capitalized for regulatory capital purposes, utilizing the Capital Simplification for Qualifying Community Bank Organization[55]. - The community bank leverage ratio (CBLR) minimum requirement is 9% for calendar year 2022 and beyond[54]. - The Dodd-Frank Act provisions are now fully implemented, impacting most institutions in the banking sector[59]. - The Bank received a "satisfactory" CRA assessment rating in August 2022, indicating compliance with community credit needs[65]. - The final rule for the Community Reinvestment Act (CRA) aims to encourage banks to expand access to credit in low-and moderate-income communities[66]. - The Company continues to monitor challenges to the CRA regulations by various trade groups and other interested parties[67]. - The federal banking agencies issued a final rule requiring banking organizations to notify regulators of significant computer-security incidents within 36 hours[70]. - The Bank actively monitors compliance with the USA Patriot Act and Anti-Money Laundering Act to ensure adequate resources for suspicious activity monitoring[84]. - The Bank is committed to maintaining compliance with incentive compensation policies as per regulatory guidance issued by the FRB and FDIC[85]. - The Company is subject to numerous federal and state consumer protection laws, which require extensive disclosures and prohibit unfair practices[79]. Financial Performance - Net income for 2024 was $40,560 million, compared to $34,844 million in 2023, reflecting a year-over-year increase of 16%[385]. - Total deposits increased to $2,891,668 million in 2024, up from $2,761,223 million in 2023, which is a growth of 5%[383]. - Net interest income after credit loss expense was $115,237 million in 2024, compared to $108,724 million in 2023, an increase of 6%[385]. - Noninterest income totaled $31,521 million in 2024, slightly up from $30,400 million in 2023, indicating a growth of 4%[385]. - Earnings per share (diluted) increased to $2.82 in 2024 from $2.36 in 2023, representing a growth of 19%[385]. - The Company reported total net other comprehensive gains of $4.7 million, net of tax, primarily due to a decline in unrealized losses in its securities portfolio for the year ended December 31, 2024[113]. - Total cash and cash equivalents increased to $100,664 million in 2024 from $78,602 million in 2023, representing a growth of 28%[383]. - Gross loans rose to $2,331,341 million in 2024, up from $2,090,075 million in 2023, marking an increase of 12%[385]. - Shareholders' equity rose to $357,302 million in 2024 from $338,097 million in 2023, reflecting an increase of 6%[383]. Risk Management - The Company may incur significant losses due to ineffective risk management processes and strategies[129]. - The company relies on quantitative models to measure risks, which may not always accurately predict future outcomes[135]. - The company faces risks associated with acquisitions, including integration challenges and potential regulatory compliance issues[136]. - The company is subject to operational risks, including reputational risk and compliance risk, which may adversely affect its business and results[168]. - The Company is exposed to credit risk from transactions with various financial institutions, which could adversely affect its business and financial condition[175]. - Fraud risk has evolved, with check fraud and mobile banking fraud being significant concerns, necessitating additional resources and technologies for detection and prevention[171]. - The Company faces potential financial liability from lawsuits, which can negatively impact expenses, even if claims are unfounded[172]. - The Company’s financial stability may be adversely affected by the financial stability of other institutions, impacting routine transactions[175]. Loan Portfolio and Credit Losses - At December 31, 2024, 78.2% of the Company's loan portfolio consisted of real estate loans, with commercial buildings representing approximately 58.2% of all real estate loans[115]. - The Company estimates it had uninsured deposits of $816 million, or 28% of total deposits, as of December 31, 2024[109]. - The concentration of commercial real estate loans has declined from 376% to 236% since December 31, 2020[118]. - The Company had $178.3 million, or 7.6% of total loans, in commercial loans as of December 31, 2024[122]. - The Company's nonperforming assets totaled $19.7 million at December 31, 2024, primarily from one nonperforming operating line of credit[115]. - Nonperforming loans may increase, negatively impacting earnings, potentially in a material way depending on severity[123]. - As of December 31, 2024, the company established an allowance for estimated credit losses on loans, which can be affected by changes in economic forecasts and borrower performance[125]. - The Company's allowance for credit losses totaled $24.8 million as of December 31, 2024, representing the principal not expected to be collected over the contractual life of the loans[366]. - The allowance for credit losses is derived from a collective reserve evaluation for loans with similar risk characteristics and an individual reserve evaluation for loans without similar risk characteristics[367]. - The Company utilizes a four-quarter forecast period for expected default rates, which then revert to historical averages over a four-quarter reversion period[368]. - The estimation of the allowance for credit losses involves inputs such as national unemployment rates and housing price indices, which require management judgment and are subject to change[371]. Capital and Shareholder Information - The company is authorized to issue up to 24,000,000 shares of common stock, with 14,223,046 shares outstanding as of December 31, 2024[152]. - There are outstanding options to purchase 239,600 shares of common stock at an average exercise price of $26.50 per share as of December 31, 2024[152]. - Future acquisitions may dilute tangible book value per share, as they typically involve payment of a premium over book and market values[150]. - The company relies heavily on dividends from the Bank, which are subject to regulatory limitations and the Bank's financial condition[151]. - The company must make interest payments on debentures before any dividends can be paid on common stock, impacting dividend availability[155]. Economic and Market Conditions - Interest rates have flattened through 2024, with uncertainty remaining due to inflation and jobs data, potentially affecting local economies[94]. - Changes in interest rates could adversely affect the Bank's profitability, business, and prospects, impacting net interest income and loan demand[96]. - The Company recognizes that negative developments in the banking industry could erode customer and investor confidence, impacting liquidity and results of operations[107]. - The Company’s exposure to credit risk is significantly affected by economic changes in California, particularly in the Southern Central San Joaquin Valley and the Central Coast[427]. Technology and Innovation - The company is evaluating the implementation of AI technology, which poses legal and regulatory risks that could increase compliance costs[167]. - The company faces risks related to technological changes in the financial services industry, which could impact its ability to serve clients effectively[158].

Company Overview - Sierra Bancorp (BSRR) is headquartered in Porterville and operates in the Finance sector, with a stock price change of 6.4% since the beginning of the year [3]. Dividend Information - The company currently pays a dividend of $0.24 per share, resulting in a dividend yield of 3.12%, which is higher than the Banks - West industry's yield of 2.68% and the S&P 500's yield of 1.48% [3]. - Sierra Bancorp's annualized dividend of $0.96 has increased by 2.1% from the previous year, with an average annual increase of 3.93% over the past five years [4]. - The company's payout ratio stands at 38%, indicating that it pays out 38% of its trailing 12-month earnings per share as dividends [4]. Earnings Growth - The Zacks Consensus Estimate for Sierra Bancorp's earnings in 2025 is projected to be $2.95 per share, reflecting a year-over-year earnings growth rate of 4.61% [5]. Investment Appeal - Sierra Bancorp is considered an attractive dividend play and a compelling investment opportunity, currently holding a Zacks Rank of 1 (Strong Buy) [7].

Core Viewpoint - Sierra Bancorp reported a revenue of $37.87 million for the quarter ended December 2024, marking a year-over-year increase of 5.4% and an EPS of $0.72 compared to $0.43 a year ago, although it fell short of the Zacks Consensus Estimate of $38.75 million by -2.28% [1] Financial Performance Metrics - Net Interest Margin was reported at 3.7%, slightly above the estimated 3.6% by analysts [4] - The Efficiency Ratio (tax-equivalent) was 59.7%, compared to the estimated 59.2% [4] - Total Non-performing Loans amounted to $19.67 million, significantly higher than the average estimate of $11.18 million [4] - Net Charge-Offs as a percentage of Average Loans were reported at 0%, better than the estimated 0.2% [4] - Average Interest-Earning Assets were $3.35 billion, below the estimated $3.46 billion [4] - Total Nonperforming Assets were $19.67 million, again exceeding the average estimate of $11.18 million [4] - Total Non-interest Income was $7.51 million, slightly below the average estimate of $7.68 million [4] - Net Interest Income was reported at $30.35 million, lower than the estimated $31.10 million [4] Stock Performance - Shares of Sierra Bancorp have returned +2.5% over the past month, outperforming the Zacks S&P 500 composite's +1.1% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Group 1: Earnings Performance - Sierra Bancorp reported quarterly earnings of $0.72 per share, matching the Zacks Consensus Estimate, and up from $0.43 per share a year ago [1] - The company had revenues of $37.87 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 2.28%, but up from $35.92 million year-over-year [2] - Over the last four quarters, Sierra Bancorp has surpassed consensus EPS estimates three times [1][2] Group 2: Stock Performance and Outlook - Sierra Bancorp shares have increased by approximately 2.9% since the beginning of the year, compared to a 3.7% gain for the S&P 500 [3] - The current consensus EPS estimate for the upcoming quarter is $0.66 on revenues of $38.2 million, and for the current fiscal year, it is $2.81 on revenues of $156.3 million [7] - The estimate revisions trend for Sierra Bancorp is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Group 3: Industry Context - The Banks - West industry, to which Sierra Bancorp belongs, is currently in the top 36% of over 250 Zacks industries, suggesting a favorable industry outlook [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Performance - Consolidated net income for Q4 2024 was $10.4 million, a 65% increase from $6.3 million in Q4 2023[2] - Full year 2024 net income reached $40.6 million, up 16% from $34.8 million in 2023, with diluted earnings per share increasing to $2.82 from $2.36[6] - Basic earnings per share for Q4 2024 were $0.73, up from $0.43 in Q4 2023, representing a 69.77% increase[48] - The net income for the year ended December 31, 2024, was $40.6 million, compared to $34.8 million in 2023, representing a year-over-year increase of 16.0%[47] Asset and Loan Growth - Total loans grew by $242.7 million, or 12%, to $2.3 billion for the full year 2024, with a quarterly loan growth of $11.3 million, or 2% annualized[5][12] - Gross loans increased by $241.3 million, or 11.5%, compared to December 31, 2023, driven by organic growth in mortgage warehouse outstandings[31] - New credit extended (excluding mortgage warehouse) in Q4 2024 was $79.9 million, an increase of $18.7 million from the prior quarter and $53.2 million from Q4 2023[32] - Net loans increased to $2,306.6 million as of December 31, 2024, compared to $2,066.9 million a year earlier, reflecting a growth of approximately 11.6%[42] Deposits and Capital - Total deposits increased by $130.4 million, or 5%, to $2.9 billion by the end of 2024, with noninterest-bearing deposits representing 35% of total deposits[5][12] - Deposit balances grew by $130.4 million, or 5%, during the year ended 2024, with wholesale brokered deposits increasing by $140.0 million, or 104%[34] - Total capital increased by $19.2 million, or 6%, to $357.3 million at December 31, 2024, primarily due to $40.6 million in net income[36] - Shareholders' equity rose to $358,760 thousand as of December 31, 2024, compared to $310,680 thousand a year earlier[54] Efficiency and Ratios - The efficiency ratio improved to 59.7% in Q4 2024, down from 67.1% in Q4 2023, reflecting operational efficiencies[5] - Return on average assets improved to 1.13% in Q4 2024, compared to 0.67% in Q4 2023, while return on average equity rose to 11.49% from 8.03%[5] - The community bank leverage ratio increased to 11.80% at December 31, 2024, compared to 11.29% a year earlier[5][13] - Efficiency ratio for Q4 2024 improved to 59.74%, down from 67.10% in Q4 2023, showing enhanced operational efficiency[49] Interest Income and Margin - Net interest margin increased to 3.65% in Q4 2024, up from 3.31% in Q4 2023, driven by a $2.5 million increase in net interest income[5][15] - Net interest income for the year ended December 31, 2024, was $120.0 million, an increase of 6.0% from $112.4 million in 2023[47] - The net interest margin for the quarter was 3.65%, with net interest income of $30,353 thousand[54] - The net interest margin for the twelve months was 3.66%, with net interest income of $120,029 thousand[57] Noninterest Income and Expenses - Noninterest income decreased by $0.5 million, or 7%, in Q4 2024 compared to Q4 2023, but increased by $1.1 million, or 4%, for the full year 2024 compared to 2023[23] - Total noninterest expense decreased by $1.3 million, or 5%, in Q4 2024 compared to Q4 2023, while for the full year, it increased by $0.2 million, or 0.2%[25] Credit Quality - Credit loss expense related to loans was $2.3 million for Q4 2024, down from $3.6 million in Q4 2023, while year-to-date credit loss expense was $4.6 million compared to $4.1 million in 2023[20] - The ratio of nonperforming loans to gross loans increased to 0.84% at December 31, 2024, from 0.38% at December 31, 2023, due to an increase in non-accrual loan balances[37] - The allowance for credit losses on loans was $24.8 million at December 31, 2024, representing 1.07% of total loans, compared to 1.12% at the end of 2023[38] - Net charge-offs to average loans for Q4 2024 were 0.01%, a decrease from 0.15% in Q4 2023, indicating improved credit quality[49] Stock and Dividends - The company repurchased 229,850 shares of common stock at an average price of $29.38 during Q4 2024[5] - Common dividends for Q4 2024 were $0.24 per share, compared to $0.23 per share in Q4 2023, marking a 4.35% increase[48] - Tangible book value per share at the end of Q4 2024 was $23.15, up from $20.91 at the end of Q4 2023, a 10.73% increase[51]

Group 1 - Sierra Bancorp (BSRR) is currently outperforming its peers in the Finance sector, with a year-to-date return of approximately 28.8%, compared to the sector average of 18.8% [4] - The Zacks Rank system indicates that Sierra Bancorp has a Zacks Rank of 2 (Buy), reflecting an improving earnings outlook, with the consensus estimate for full-year earnings having increased by 1.1% over the past quarter [3] - Sierra Bancorp belongs to the Banks - West industry, which includes 29 companies and has an average year-to-date return of 15.7%, further indicating that BSRR is performing better than its industry peers [6] Group 2 - Central Pacific Financial (CPF) is another stock in the Finance sector that has shown strong performance, with a year-to-date return of 44.8% and a Zacks Rank of 2 (Buy) [4][5] - The Finance group is ranked 1 within the Zacks Sector Rank, which evaluates the average Zacks Rank of individual stocks across 16 different groups [2] - Both Sierra Bancorp and Central Pacific Financial are expected to continue their solid performance, making them attractive options for investors interested in Finance stocks [7]