Core Viewpoint - The article emphasizes the importance of value investing and highlights Sierra Bancorp (BSRR) as a strong candidate for value investors due to its attractive financial metrics and strong earnings outlook [2][8]. Group 1: Company Overview - Sierra Bancorp (BSRR) currently holds a Zacks Rank 2 (Buy) and has an A grade for Value, indicating it is considered a strong value stock [4]. - The stock has a Forward P/E ratio of 9.99, which is lower than the industry average of 10.59, suggesting it may be undervalued [4]. - BSRR's Forward P/E has fluctuated between 12.25 and 8.27 over the past year, with a median of 10.25 [4]. Group 2: Financial Metrics - BSRR has a P/B ratio of 1.2, which is attractive compared to the industry's average P/B of 1.30. The P/B ratio has ranged from 1.37 to 0.96 in the past year, with a median of 1.16 [5]. - The company has a P/S ratio of 2.12, slightly below the industry average of 2.18, indicating a competitive position in terms of sales valuation [6]. - BSRR's P/CF ratio stands at 9.31, which is favorable compared to the industry's average P/CF of 10.62. This ratio has varied between 11.60 and 7.39 over the past year, with a median of 9.33 [7]. Group 3: Investment Potential - The combination of BSRR's strong financial metrics and positive earnings outlook suggests that the stock is likely undervalued at present, making it an appealing option for value investors [8].

Company Overview - Sierra Bancorp (BSRR) is headquartered in Porterville and has experienced a price change of 5.95% this year [3] - The company currently pays a dividend of $0.25 per share, resulting in a dividend yield of 3.26%, which is higher than the Banks - West industry's yield of 2.86% and the S&P 500's yield of 1.55% [3] Dividend Performance - The current annualized dividend of Sierra Bancorp is $1.00, reflecting a 6.4% increase from the previous year [4] - Over the past 5 years, the company has increased its dividend 3 times year-over-year, with an average annual increase of 3.88% [4] - The current payout ratio is 35%, indicating that the company paid out 35% of its trailing 12-month earnings per share as dividends [4] Earnings Growth and Future Outlook - For the fiscal year, Sierra Bancorp expects solid earnings growth, with the Zacks Consensus Estimate for 2025 at $2.95 per share, representing a year-over-year earnings growth rate of 4.61% [5] - Future dividend growth will depend on earnings growth and the payout ratio [4] Investment Opportunity - Sierra Bancorp presents a compelling investment opportunity as it offers an attractive dividend and has a strong Zacks Rank of 1 (Strong Buy) [6]

Group 1 - Sierra Bancorp (BSRR) has returned 11.5% year-to-date, outperforming the Finance sector average return of 9.9% [4] - The Zacks Rank for Sierra Bancorp is 2 (Buy), indicating a positive outlook based on earnings estimates and revisions [3] - The Zacks Consensus Estimate for BSRR's full-year earnings has increased by 2.4% over the past quarter, reflecting improving analyst sentiment [3] Group 2 - Sierra Bancorp belongs to the Banks - West industry, which includes 28 companies and is currently ranked 43 in the Zacks Industry Rank [5] - Stocks in the Banks - West industry have gained about 3% year-to-date, indicating that BSRR is performing better than its peers in this specific group [5] - Commonwealth Bank of Australia Sponsored ADR (CMWAY) is another Finance stock that has outperformed the sector with a year-to-date return of 24.2% [4][6]

Core Viewpoint - Sierra Bancorp (BSRR) has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on a company's changing earnings picture, which is crucial for predicting 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 and Outlook - The upgrade for Sierra Bancorp indicates a positive outlook for its earnings, suggesting potential buying pressure and an increase in stock price [3][5]. - Analysts have raised their earnings estimates for Sierra Bancorp, with the Zacks Consensus Estimate increasing by 2.3% over the past three months [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong track record of performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [7]. - Sierra Bancorp's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10].

Company Overview - Sierra Bancorp is based in Porterville and operates in the Finance sector, with a year-to-date share price change of 2.97% [3] - The company currently pays a dividend of $0.25 per share, resulting in a dividend yield of 3.36%, which is higher than the Banks - West industry's yield of 3.2% and the S&P 500's yield of 1.58% [3] Dividend Performance - The current 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 increased its dividend three times, achieving an average annual increase of 3.98% [4] - The current payout ratio is 35%, indicating that the company paid out 35% of its trailing 12-month earnings per share as dividends [4] Earnings Outlook - Sierra Bancorp is expected to see earnings growth this fiscal year, with the Zacks Consensus Estimate for 2025 projected at $2.95 per share, representing a year-over-year growth rate of 4.61% [5] Investment Considerations - Sierra Bancorp is viewed as a compelling investment opportunity due to its attractive dividend and strong Zacks Rank of 2 (Buy) [7]

Core Insights - The article emphasizes the importance of value investing as a strategy to identify strong stocks, particularly through fundamental analysis and traditional valuation metrics [2][3] Group 1: Sierra Bancorp (BSRR) - Sierra Bancorp (BSRR) has a Zacks Rank of 2 (Buy) and an A for Value, indicating strong potential as a value stock [4] - BSRR's current P/E ratio is 9.59, which is lower than the industry average of 10.36, suggesting it may be undervalued [4] - The Forward P/E ratio for BSRR has fluctuated between 8.27 and 12.25 over the past year, with a median of 10.20 [4] - BSRR's P/B ratio is 1.15, compared to the industry's average P/B of 1.26, indicating solid valuation [5] - The P/B ratio for BSRR has ranged from 0.88 to 1.37 in the past year, with a median of 1.15 [5] - BSRR's P/S ratio is 2.03, slightly below the industry's average P/S of 2.16, reinforcing its value proposition [6] - The P/CF ratio for BSRR is 8.86, which is lower than the industry average of 10.33, suggesting a favorable cash flow outlook [7] - BSRR's P/CF has varied from 7.13 to 11.60 over the past year, with a median of 9.26 [7] Group 2: FS Bancorp (FSBW) - FS Bancorp (FSBW) also holds a Zacks Rank of 2 (Buy) and an A for Value, making it another attractive value stock [8] - FSBW's P/B ratio is 1.02, which is lower than the industry's average P/B of 1.26, indicating potential undervaluation [8] - Over the past 52 weeks, FSBW's P/B has fluctuated between 0.92 and 1.31, with a median of 1.08 [8] Group 3: Overall Valuation Insights - Both Sierra Bancorp and FS Bancorp exhibit strong value metrics, suggesting they are likely undervalued in the current market [9] - The strength of their earnings outlook further supports the case for these stocks as impressive value investments at this time [9]

Company Overview - Sierra Bancorp's market capitalization is $409 million as of March 5, 2025 [8] - The company repurchased 378,230 shares at an average price of $30 per share YTD in 2025 [8] - The bank has reached $3.6 billion in assets, with 35 offices [12] Financial Performance - The company's Return on Average Assets (ROAA) is 1.12% YTD [19, 28] - Net interest margin improved from 3.31% in Q4 2023 to 3.65% in Q4 2024 [28] - YTD diluted EPS increased from $2.36 in 2023 to $2.82 in 2024 [28] Balance Sheet Repositioning - A sale/leaseback in December 2023 generated a $19.1 million gain [28] - The company sold $250.5 million of low-yielding bonds at a $17.3 million loss [28] Loan Portfolio - Gross loans reached $2.331 billion as of December 31, 2024 [30, 40] - Loan growth YTD was $241.05 million, representing an 11.5% increase [40] - Mortgage warehouse lines totaled $326.4 million, representing 14% of the loan portfolio [40] Deposit Base - Noninterest-bearing deposits represent 33.57% of total deposits, amounting to $1.007 billion as of December 31, 2024 [19, 55]

Part I - Financial Information [Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited consolidated financial statements and accompanying notes for the period ended March 31, 2025 [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Total assets slightly decreased to $3.61 billion, driven by lower net loans and investments Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Total cash & cash equivalents | $159,711 | $100,664 | +$59,047 | | Net loans | $2,279,613 | $2,306,604 | -$26,991 | | Total investment securities | $922,411 | $961,481 | -$39,070 | | **Total assets** | **$3,606,183** | **$3,614,271** | **-$8,088** | | Total deposits | $2,849,884 | $2,891,668 | -$41,784 | | **Total liabilities** | **$3,254,427** | **$3,256,969** | **-$2,542** | | **Total shareholders' equity** | **$351,756** | **$357,302** | **-$5,546** | [Consolidated Statements of Income](index=6&type=section&id=Consolidated%20Statements%20of%20Income) Net income slightly decreased to $9.1 million due to a higher credit loss provision and lower noninterest income Q1 2025 vs. Q1 2024 Income Statement (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Net interest income | $30,112 | $28,717 | +$1,395 | | Credit loss expense - loans | $1,961 | $97 | +$1,864 | | Total noninterest income | $6,642 | $8,589 | -$1,947 | | Total noninterest expense | $22,417 | $24,526 | -$2,109 | | **Net income** | **$9,101** | **$9,330** | **-$229** | | **Earnings per share diluted** | **$0.65** | **$0.64** | **+$0.01** | | Cash dividends per share | $0.25 | $0.23 | +$0.02 | [Consolidated Statements of Cash Flows](index=11&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Cash and cash equivalents increased by $59.0 million, driven by strong operating and investing cash flows Cash Flow Summary for Three Months Ended March 31 (in thousands) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $40,625 | $6,981 | | Net cash provided by investing activities | $67,635 | $220,496 | | Net cash used in financing activities | ($49,213) | ($186,835) | | **Increase in cash and cash equivalents** | **$59,047** | **$40,642** | [Notes to Consolidated Financial Statements (Unaudited)](index=12&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements%20(Unaudited)) The notes detail accounting policies, portfolio compositions, and a subsequent loan repayment event - The company operates as a single community banking segment with **total assets of $3.6 billion** and **total deposits of $2.8 billion** at March 31, 2025[21](index=21&type=chunk) - Off-balance-sheet commitments to extend credit **increased to $749.2 million** from $636.4 million at year-end 2024, mainly from unused mortgage warehouse lines[43](index=43&type=chunk) - Subsequent to quarter-end, the company received a **full payment of $6.5 million** on a nonaccrual commercial real estate loan with a carrying amount of $5.9 million[132](index=132&type=chunk) [Management's Discussion & Analysis of Financial Condition & Results of Operations](index=52&type=section&id=Item%202.%20Management's%20Discussion%20%26%20Analysis%20of%20Financial%20Condition%20%26%20Results%20of%20Operations) Management analyzes Q1 2025 performance, balance sheet changes, liquidity, market risk, and capital resources - **Q1 2025 net income was $9.1 million**, a 2% decrease from Q1 2024, driven by higher net interest income offset by a higher provision for credit losses[143](index=143&type=chunk) - **Total assets decreased by $8.1 million (0.2%)** from year-end 2024, due to decreases in gross loans and deposits[146](index=146&type=chunk)[150](index=150&type=chunk) [Earnings Performance](index=56&type=section&id=Earnings%20Performance) Performance was marked by higher net interest income and lower expenses, offset by credit provisions and noninterest income decline [Balance Sheet Analysis](index=67&type=section&id=Balance%20Sheet%20Analysis) The balance sheet saw a slight contraction with decreases in investment securities, loans, and deposits [Liquidity and Market Risk Management](index=80&type=section&id=Liquidity%20and%20Market%20Risk%20Management) The company maintains a strong liquidity position and an asset-sensitive balance sheet Primary and Secondary Liquidity Sources (in thousands) | Source | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $159,711 | $100,664 | | Unpledged investment securities | $522,332 | $552,098 | | FHLB borrowing availability | $633,368 | $629,134 | | Unsecured & Secured lines of credit | $504,785 | $504,785 | | Funds available through fed discount window | $258,130 | $298,296 | | **Total** | **$2,259,374** | **$2,327,496** | Net Interest Income Sensitivity (1-Year Horizon) | Immediate Rate Change (bps) | % Change in NII (Mar 31, 2025) | | :--- | :--- | | +400 | 8.7% | | +200 | 4.5% | | +100 | 2.4% | | -100 | (5.3)% | | -200 | (10.8)% | [Capital Resources](index=85&type=section&id=Capital%20Resources) Shareholders' equity decreased due to share repurchases, though the company remains well-capitalized - The company **repurchased 476,770 shares for $14.2 million** during Q1 2025[146](index=146&type=chunk)[257](index=257&type=chunk) Regulatory Capital Ratios | Ratio | March 31, 2025 | Minimum to be Well Capitalized | | :--- | :--- | :--- | | **Bank of the Sierra** | | | | Tier 1 Leverage Ratio | 12.11% | 9.00% | | **Sierra Bancorp** | | | | Tier 1 Leverage Ratio | 10.84% | N/A | [Quantitative & Qualitative Disclosures about Market Risk](index=87&type=section&id=Item%203.%20Quantitative%20%26%20Qualitative%20Disclosures%20about%20Market%20Risk) This section cross-references market risk disclosures found within the Management's Discussion and Analysis - Information regarding market risk is located in Part I, Item 2, under the 'Liquidity and Market Risk Management' section[264](index=264&type=chunk) [Controls and Procedures](index=87&type=section&id=Item%204.%20Controls%20and%20Procedures) Management confirmed the effectiveness of disclosure controls and procedures with no significant changes in internal controls - The CEO and CFO concluded that the Company's **disclosure controls and procedures were adequate and effective** as of the report date[265](index=265&type=chunk) - **No significant changes** occurred in the Company's internal controls over financial reporting during the first quarter of 2025[267](index=267&type=chunk) Part II - Other Information [Legal Proceedings](index=87&type=section&id=Item%201.%20-%20Legal%20Proceedings) Current legal proceedings are not expected to have a material adverse effect on the company's financial condition - Management does not believe that current legal actions will have a **material adverse effect** on the Company's financial statements[269](index=269&type=chunk) [Risk Factors](index=89&type=section&id=Item%201A.%20-%20Risk%20Factors) No material changes to risk factors were reported since the last annual report - **No material changes** from the risk factors disclosed in the Company's Form 10-K for the fiscal year ended December 31, 2024, were reported[271](index=271&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=89&type=section&id=Item%202.%20-%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company details its Q1 2025 share repurchase activities under its publicly announced plan Stock Repurchases - Q1 2025 | Period | Total Shares Purchased | Average Price Paid per Share | Shares Purchased as Part of Plan | | :--- | :--- | :--- | :--- | | Jan 2025 | 157,740 | $29.26 | 154,461 | | Feb 2025 | 183,169 | $30.79 | 183,169 | | Mar 2025 | 145,466 | $28.95 | 139,140 | | **Total** | **486,375** | | **476,770** | - As of March 31, 2025, **325,983 shares remained available for repurchase** under the 2024 Share Repurchase Plan, which expires on October 31, 2025[258](index=258&type=chunk)[273](index=273&type=chunk) [Exhibits](index=90&type=section&id=Item%206.%20-%20Exhibits) This section lists all exhibits filed with the report, including required CEO and CFO certifications - Key exhibits filed include **CEO and CFO certifications** (Exhibits 31.1, 31.2, 32) and various employment and compensation plan documents[275](index=275&type=chunk)

Group 1 - Sierra Bancorp reported quarterly earnings of $0.65 per share, missing the Zacks Consensus Estimate of $0.66 per share, and showing a slight increase from $0.64 per share a year ago, resulting in an earnings surprise of -1.52% [1] - The company posted revenues of $36.75 million for the quarter ended March 2025, which was below the Zacks Consensus Estimate by 1.33% and a decrease from $37.31 million year-over-year [2] - Sierra Bancorp shares have declined approximately 9.2% since the beginning of the year, compared to a decline of 6.1% for the S&P 500 [3] Group 2 - The earnings outlook for Sierra Bancorp is uncertain, with current consensus EPS estimates for the upcoming quarter at $0.70 on revenues of $38.15 million, and for the current fiscal year at $2.88 on revenues of $154.15 million [7] - The estimate revisions trend for Sierra Bancorp is currently unfavorable, leading to a Zacks Rank of 4 (Sell), indicating expected underperformance in the near future [6] - The Zacks Industry Rank for Banks - West is in the bottom 33% of over 250 Zacks industries, suggesting that the industry outlook may negatively impact the stock's performance [8]

[Q1 2025 Financial Performance Overview](index=1&type=section&id=SIERRA%20BANCORP%20REPORTS%20FIRST%20QUARTER%202025%20RESULTS) Sierra Bancorp reported solid Q1 2025 results with consolidated net income of $9.1 million, marked by a stable balance sheet, strong capital, and improved operational metrics [First Quarter 2025 Highlights](index=1&type=section&id=Highlights%20for%20the%20First%20Quarter%20of%202025) Sierra Bancorp achieved solid Q1 2025 results, including improved net interest margin and efficiency, growth in customer deposits and organic loans, and continued capital returns Key Financial Highlights | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Net Income** | $9.1 million | $9.3 million | | **Diluted EPS** | $0.65 | $0.64 | - The net interest margin improved to **3.74%**, compared to 3.65% in the prior quarter and 3.62% in Q1 2024[6](index=6&type=chunk) - The efficiency ratio improved significantly to **60.62%** from 65.97% in the same quarter of 2024[6](index=6&type=chunk) - The company strategically reduced higher-cost brokered deposits by **$85.0 million** while growing all other customer deposits by **$43.2 million**[6](index=6&type=chunk) - Returned capital to shareholders by repurchasing **476,770 shares** at an average price of **$29.71** and declaring a dividend of **$0.25 per share**[6](index=6&type=chunk) [Key Financial Metrics Summary](index=4&type=section&id=FINANCIAL%20HIGHLIGHTS) This section presents a comparative overview of key financial metrics for Q1 2025, highlighting diluted EPS growth and improved net interest margin Comparative Financial Metrics | Financial Metric | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | Net income (in thousands) | $9,101 | $10,364 | $9,330 | | Diluted earnings per share | $0.65 | $0.72 | $0.64 | | Return on average assets | 1.02% | 1.13% | 1.06% | | Return on average equity | 10.44% | 11.49% | 11.09% | | Net interest margin (tax-equivalent) | 3.74% | 3.65% | 3.62% | | Efficiency ratio (tax-equivalent) | 60.62% | 59.74% | 65.97% | | Total assets (in thousands) | $3,606,183 | $3,614,271 | $3,553,072 | | Tangible book value per share | $23.44 | $23.15 | $21.61 | [Detailed Financial Analysis](index=3&type=section&id=Detailed%20Financial%20Analysis) This section provides an in-depth analysis of the company's income statement, balance sheet, and asset quality for the quarter [Income Statement Analysis](index=4&type=section&id=INCOME%20STATEMENT%20HIGHLIGHTS) The income statement analysis shows a 5% YoY increase in net interest income, offset by a 23% YoY decrease in noninterest income, leading to stable net income [Net Interest Income](index=4&type=section&id=Net%20Interest%20Income) Net interest income increased 5% YoY to $30.1 million, driven by higher loan balances and yields, with the net interest margin expanding to 3.74% - Net interest income was **$30.1 million**, up **$1.4 million (5%)** from Q1 2024[14](index=14&type=chunk) - The YoY increase was driven by a **$232.2 million** rise in average loan balances and a **37 basis point** increase in loan yield[15](index=15&type=chunk) - Net interest margin expanded to **3.74%** in Q1 2025, up from 3.62% in Q1 2024 and 3.65% in Q4 2024[16](index=16&type=chunk) [Provision for Credit Losses](index=5&type=section&id=Provision%20for%20Credit%20Losses) The company recorded a $2.0 million provision for credit losses in Q1 2025, a significant increase YoY due to higher specific reserves on evaluated loans Provision for Credit Losses on Loans | Period | Provision for Credit Losses (Loans) | | :--- | :--- | | Q1 2025 | $2.0 million | | Q4 2024 | $2.3 million | | Q1 2024 | $0.1 million | - The YoY increase in provision was mainly due to higher specific reserves on individually evaluated loans[18](index=18&type=chunk) [Noninterest Income](index=5&type=section&id=Noninterest%20Income) Noninterest income decreased 23% YoY to $6.6 million, primarily due to unfavorable BOLI changes and the non-recurrence of prior year gains - Noninterest income decreased by **$1.9 million (23%)** YoY and **$0.9 million (12%)** QoQ to **$6.6 million**[21](index=21&type=chunk) - The YoY decrease was primarily caused by a **$1.5 million** unfavorable change in BOLI and the non-recurrence of gains from a Q1 2024 strategic balance sheet restructure[22](index=22&type=chunk) [Noninterest Expense](index=5&type=section&id=Noninterest%20Expense) Total noninterest expense decreased 9% YoY to $22.4 million, mainly driven by lower deferred directors' fees, with employee count at 489 - Noninterest expense decreased by **$2.1 million (9%)** YoY and **$0.4 million (2%)** QoQ[25](index=25&type=chunk) - The main driver of the decrease was lower deferred directors' fees, which are economically offset by lower BOLI income recorded in noninterest income[25](index=25&type=chunk)[28](index=28&type=chunk) - Full-time equivalent employees stood at **489**, down from 492 a year ago but up from 485 at the end of 2024[26](index=26&type=chunk) [Balance Sheet Analysis](index=7&type=section&id=Balance%20Sheet%20Summary) The balance sheet remained stable at $3.6 billion, with active management of funding mix, positive organic loan growth, and strong liquidity and capital levels [Asset and Loan Portfolio](index=7&type=section&id=Asset%20and%20Loan%20Portfolio) Total assets slightly decreased to $3.6 billion, with gross loans down due to mortgage warehouse paydowns, masking positive organic loan growth - Gross loans decreased by **$24.6 million**, or **1%**, during Q1 2025, primarily due to a **$43.2 million** decrease in mortgage warehouse line utilization[31](index=31&type=chunk) - Organic loan growth was positive, led by a **$22.5 million** increase in commercial real estate loans[31](index=31&type=chunk) Loan Rollforward | Loan Rollforward (in thousands) | Q1 2025 | | :--- | :--- | | Beginning Balance | $2,331,341 | | New credit extended | $66,370 | | Change in mortgage warehouse | ($46,139) | | Pay-downs, maturities, etc. | ($32,681) | | **Ending Balance** | **$2,306,762** | [Deposits and Liquidity](index=8&type=section&id=Deposits%20and%20Liquidity) Total deposits decreased by $41.8 million due to planned brokered deposit reduction, offset by core non-maturity deposit growth, maintaining substantial liquidity - Total deposits decreased by **$41.8 million**, reflecting a planned **$85.0 million** reduction in brokered deposits[35](index=35&type=chunk) - Core non-maturity deposits increased by **$52.6 million**, and noninterest-bearing deposits rose to **36.4%** of total deposits, up from 34.8% in Q4 2024[35](index=35&type=chunk) Liquidity Sources | Liquidity Sources (in thousands) | March 31, 2025 | | :--- | :--- | | Cash and cash equivalents | $159,711 | | Unpledged investment securities | $522,332 | | FHLB borrowing availability | $633,368 | | Unsecured lines of credit | $479,785 | | **Total Sources** | **$2,259,374** | [Capital Position](index=10&type=section&id=Capital%20Position) Total capital decreased by $5.5 million to $351.8 million due to capital returns, yet capital ratios remain strong with tangible book value per share increasing - Total capital decreased by **$5.5 million** to **$351.8 million**, driven by capital returns to shareholders[38](index=38&type=chunk) - The decrease reflects **$9.1 million** net income offset by **$14.2 million** in share repurchases and a **$3.5 million** dividend[38](index=38&type=chunk) - The tangible book value per share increased by **1%** during the quarter to **$23.44**[6](index=6&type=chunk) [Asset Quality](index=10&type=section&id=Asset%20Quality) Asset quality improved in Q1 2025, with nonperforming assets decreasing to $18.2 million and the allowance for credit losses increasing to 1.17% of total loans - Total nonperforming assets decreased by **$1.5 million (7%)** to **$18.2 million** during the quarter[39](index=39&type=chunk) - The ratio of nonperforming assets to loans plus foreclosed assets improved to **0.79%** from 0.84% at the end of 2024[39](index=39&type=chunk) - The allowance for credit losses on loans increased to **$27.1 million**, or **1.17%** of total loans, up from 1.07% at year-end 2024[41](index=41&type=chunk) - Subsequent to quarter-end, a **$6.5 million** non-accrual loan relationship was paid in full, further reducing non-accrual loans[40](index=40&type=chunk) [Financial Statements and Supplementary Data](index=11&type=section&id=Financial%20Statements%20and%20Supplementary%20Data) This section provides detailed unaudited financial statements and supplementary data, offering a comprehensive view of the company's financial position and performance [Consolidated Financial Statements](index=11&type=section&id=STATEMENT%20OF%20CONDITION) This section presents the unaudited Statement of Condition and Consolidated Income Statement for Q1 2025, with comparative prior period data - The detailed Statement of Condition (Balance Sheet) is provided, showing assets, liabilities, and capital as of March 31, 2025, compared to the four preceding quarters[44](index=44&type=chunk) - The detailed Consolidated Income Statement is provided for the three months ended March 31, 2025, compared to Q4 2024 and Q1 2024[48](index=48&type=chunk) [Credit Quality and Key Ratios](index=12&type=section&id=CREDIT%20QUALITY) This section provides detailed tables on credit quality metrics, including nonperforming loans and charge-offs, and key financial ratios for profitability and efficiency - A detailed table on Credit Quality metrics is presented, including nonperforming loans, net charge-offs, and allowance ratios for the last five quarters[46](index=46&type=chunk) - A table of Key Financial Ratios is provided, including Return on Equity, Return on Assets, Net Interest Margin, and Efficiency Ratio for Q1 2025 and prior periods[50](index=50&type=chunk) [Per Share Data](index=14&type=section&id=PER%20SHARE%20DATA) This table details per-share metrics, including basic and diluted EPS, dividends, book value, and tangible book value, along with share counts - A detailed table of Per Share Data is provided, showing EPS, dividends, book value, and share counts for Q1 2025, Q4 2024, and Q1 2024[49](index=49&type=chunk) [Non-GAAP Financial Measures](index=15&type=section&id=NON-GAAP%20FINANCIAL%20MEASURES) This section provides reconciliations for non-GAAP financial measures like tangible common equity and tax-equivalent efficiency ratio to their GAAP equivalents - Reconciliations of GAAP to non-GAAP measures are provided for Tangible Common Equity, Tangible Assets, Tangible Book Value per Share, and the tax-equivalent Efficiency Ratio[52](index=52&type=chunk) [Other Supplementary Data](index=12&type=section&id=Other%20Supplementary%20Data) This section includes supplementary tables for Goodwill and Intangible Assets, Noninterest Income and Expense breakdowns, and Average Balances and Rates - A table detailing Goodwill and Intangible Assets is provided for the last five quarters[45](index=45&type=chunk) - A detailed breakdown of Noninterest Income and Noninterest Expense components is presented for Q1 2025 and comparative quarters[53](index=53&type=chunk) - A comprehensive table of Average Balances, Income/Expense, and Yields/Rates for all major asset and liability categories is included[55](index=55&type=chunk)