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].

All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.Cash flow can come from bond interest, interest from other types of investments, and of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures ...

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]

Sierra Bancorp (BSRR) came out with quarterly earnings of $0.72 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.43 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this parent company of Bank of the Sierra would post earnings of $0.73 per share when it actually produced earnings of $0.74, delivering a surprise of 1.37%.Over the last four quarters, the company has surpassed consensus EPS estimates three times.Si ...

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]

Core Viewpoint - Sierra Bancorp (BSRR) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is effective for individual investors as it focuses on earnings estimate revisions, which are strongly correlated with near-term stock price movements [2][4]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in buying or selling actions that affect stock prices [4]. Company Performance Indicators - For the fiscal year ending December 2024, Sierra Bancorp is expected to earn $2.79 per share, reflecting an 18.2% increase from the previous year [8]. - Over the past three months, the Zacks Consensus Estimate for Sierra Bancorp has risen by 1.1%, indicating a positive trend in earnings expectations [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [7]. - The upgrade of Sierra Bancorp to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10][11].

The Finance group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Sierra Bancorp (BSRR) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Finance peers, we might be able to answer that question.Sierra Bancorp is a member of the Finance sector. This group includes 871 individual stocks and currently holds a Zacks Sector Rank of #1. The Zacks Sector Rank considers 16 differe ...

Financial Performance - Net income for Q3 2024 was $10.6 million, or $0.74 per diluted share, compared to $0.68 per diluted share in Q3 2023, reflecting a 7% increase in net income [142]. - Noninterest income rose by $1.7 million, or 7%, driven by higher service charges and transaction-based fees [148]. - Total noninterest income for Q3 2024 was $7.789 million, unchanged from Q3 2023, but increased by $1.7 million, or 7%, year-to-date compared to the same period in 2023 [188]. - The effective tax rate for Q3 2024 was 26.4%, compared to 25.8% in Q3 2023, and 26.8% for the first nine months of 2024, compared to 25.3% for the same period in 2023 [197]. - The company recorded a $3.9 million favorable variance in the first nine months of 2024, with a $9.4 million increase in loan balances [177]. Interest Income and Margin - Net interest income increased by $2.7 million, or 10%, to $30.8 million in Q3 2024, driven by a 36 basis point increase in net interest margin [155]. - The net interest margin improved to 3.66% in Q3 2024, up 36 basis points from Q3 2023 [163]. - The net interest margin increased by 27 basis points, driven by a 45 basis point rise in yield on interest-earning assets, partially offset by a 28 basis point increase in interest rates on interest-bearing liabilities [164]. - Total interest-earning assets amounted to $3,389,516 with a yield of 5.31% for the three months ended September 30, 2024, compared to 4.94% for the same period in 2023 [169]. - The company's net interest margin for Q3 2024 was 3.66%, compared to 3.30% in Q3 2023 [176]. Loans and Credit Quality - Gross loans increased by $230.6 million, with significant growth in mortgage warehouse lines and commercial loans, partially offset by a decrease in residential real estate loans [150]. - The provision for credit losses on loans was $1.2 million for Q3 2024, up from $0.1 million in Q3 2023 [182]. - Total nonperforming assets increased by $2.4 million to $10.3 million for the first nine months of 2024, with nonperforming loans as a percentage of total gross loans rising to 0.45% from 0.38% at December 31, 2023 [220]. - The allowance for credit losses on loans was $22.7 million at September 30, 2024, down from $23.5 million at December 31, 2023, representing 0.98% of gross loans [226]. - The largest increase in loan balances was from mortgage warehouse lines, which have the lowest reserve rate in the allowance for credit losses at 0.14% [226]. Assets and Liabilities - Total assets decreased by $33.6 million, or 1.0%, to $3.7 billion as of September 30, 2024, compared to December 31, 2023 [149]. - Total interest-bearing deposits reached $1,945,047 with an average rate of 2.45% for the three months ended September 30, 2024, compared to 1.91% in the same period of 2023 [169]. - Total assets as of September 30, 2024, were $3,621,959, a decrease from $3,713,882 in the previous year [171]. - The company reported a decrease in non-earning assets to $288,975 from $275,883 year-over-year [168]. - Total non-deposit interest-bearing liabilities decreased by $262.1 million due to a balance sheet restructure [243]. Deposits - Deposits totaled $3.0 billion, representing a year-to-date increase of $200.9 million, or 7%, primarily from brokered deposits [151]. - Core non-maturity deposits rose by $31.0 million, or 6%, while customer time deposits decreased by $5.0 million, or 1% [238]. - Wholesale brokered deposits surged by $175.0 million, or 130%, during the first nine months of 2024 [238]. - Overall uninsured deposits were approximately $816.2 million, or 28% of total deposit balances [239]. - The Company's loan-to-deposit ratio was 78% at September 30, 2024, compared to 76% at December 31, 2023 [248]. Capital and Shareholder Equity - Total capital increased by $20.6 million, or 6%, to $358.7 million, supported by net income and changes in accumulated other comprehensive income [153]. - As of September 30, 2024, total shareholders' equity increased to $358.7 million from $338.1 million at the end of 2023, driven by net income of $30.2 million and offset by $10.2 million in dividends and $8.3 million in share repurchases [259]. - The company approved a new share repurchase program in October 2023, authorizing the repurchase of 1,000,000 shares, with 406,809 shares repurchased in the first nine months of 2024 [259]. - The company's Tier 1 Capital to Adjusted Average Assets ratio was 11.70% as of September 30, 2024, compared to 11.29% at the end of 2023, exceeding the minimum requirement of 9.00% [261]. - The company has opted into the community bank leverage ratio framework, maintaining a leverage ratio greater than 9% to meet capital requirements [263]. Risk Management and Sensitivity - For an immediate upward adjustment of 100 basis points in interest rates, net interest income is projected to increase by $3.4 million, or 2.5%, over the next 12 months [256]. - A downward adjustment of 100 basis points in interest rates would result in a decrease of $7.0 million, or 5.2%, in net interest income over the same period [256]. - The company models various interest rate scenarios, indicating less sensitivity to expected changes due to the current inverted rate curve [258]. - The company runs stress scenarios for the unconsolidated bank, focusing on the potential runoff of low-cost deposits which significantly impacts net interest income [258]. - The company experienced a favorable swing of $7.4 million in other comprehensive income due to changes in investment securities' fair value during the first nine months of 2024 [259].