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]

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].

Group 1 - Sierra Bancorp (BSRR) has outperformed its Finance peers with a year-to-date performance increase of approximately 41.3%, compared to the average return of 26.6% for Finance companies [4] - The Zacks Rank for Sierra Bancorp is currently 2 (Buy), indicating a positive earnings outlook as the consensus estimate for full-year earnings has increased by 1.1% over the past quarter [3] - Sierra Bancorp is part of the Banks - West industry, which has seen an average gain of 29.5% this year, further highlighting its strong performance within this specific sector [5] Group 2 - Northern Trust Corporation (NTRS) is another Finance stock that has outperformed the sector, with a year-to-date increase of 30.2% [4] - The consensus EPS estimate for Northern Trust Corporation has risen by 6.9% over the past three months, and it also holds a Zacks Rank of 2 (Buy) [5] - The Banks - Major Regional industry, to which Northern Trust belongs, has experienced a year-to-date increase of 33.4% [6]

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].

Core Insights - Sierra Bancorp reported revenue of $38.58 million for Q3 2024, a year-over-year increase of 7.6% and a surprise of +0.73% over the Zacks Consensus Estimate of $38.3 million [1] - The EPS for the quarter was $0.74, compared to $0.68 a year ago, with an EPS surprise of +1.37% against the consensus estimate of $0.73 [1] Financial Performance Metrics - Net Interest Margin stood at 3.7%, matching the average estimate from three analysts [1] - Efficiency ratio (tax-equivalent) was 58.4%, slightly better than the average estimate of 59.2% [1] - Total Non-performing loans were reported at $10.35 million, exceeding the average estimate of $6.99 million from two analysts [1] - Net Charge-Offs as a percentage of Average Loans was 0%, better than the estimated 0.2% [1] - Average Interest-Earning Assets totaled $3.39 billion, aligning with the average estimate from two analysts [1] - Total Nonperforming Assets were also $10.35 million, above the average estimate of $6.99 million [1] - Total non-interest income reached $7.79 million, slightly above the average estimate of $7.69 million [1] - Net Interest Income was reported at $30.79 million, compared to the average estimate of $30.96 million [1] Stock Performance - Shares of Sierra Bancorp have returned -8.7% over the past month, contrasting with the Zacks S&P 500 composite's +2.8% change [2] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [2]

Sierra Bancorp (BSRR) came out with quarterly earnings of $0.74 per share, beating the Zacks Consensus Estimate of $0.73 per share. This compares to earnings of $0.68 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 1.37%. A quarter ago, it was expected that this parent company of Bank of the Sierra would post earnings of $0.61 per share when it actually produced earnings of $0.71, delivering a surprise of 16.39%.Over the last ...

Financial Performance - Consolidated net income for Q3 2024 was $10.6 million, or $0.74 per diluted share, a 3% increase from Q2 2024 [2]. - Year-to-date net income for the first nine months of 2024 reached $30.2 million, up 6% from $28.6 million in the same period of 2023 [7]. - Net income for the three months ended September 30, 2024, was $10,603,000, an increase from $10,263,000 for the previous quarter and $9,885,000 for the same period last year [42]. - Basic earnings per share for the three months ended September 30, 2024, was $0.75, up from $0.72 in the previous quarter and $0.68 a year ago [43]. Income and Revenue - Net interest income for Q3 2024 increased by $2.7 million, or 10%, compared to Q3 2023, totaling $30.8 million [16]. - Noninterest income increased by $1.7 million, or 7%, driven by higher service charges on deposit accounts [11]. - Total noninterest income for the nine months ended September 30, 2024, was $24,009,000, compared to $22,355,000 for the same period last year, reflecting a growth of approximately 7.4% [42]. - Total noninterest income increased by $1.7 million, or 7%, for the year-to-date period ended September 30, 2024, compared to the same period in 2023 [23]. Loans and Deposits - Total loans grew by $86.1 million, or 15% annualized, during Q3 2024, reaching $2.3 billion [4]. - Total deposits increased by $19.7 million, or 3% annualized, during Q3 2024, totaling $3.0 billion [4]. - Deposit balances grew by $200.9 million, or 7%, during the first nine months of 2024, with wholesale brokered deposits increasing by $175.0 million, or 130% [31]. - Gross loans to deposits ratio increased to 78.34% as of September 30, 2024, from 75.94% in the previous quarter, indicating a stronger loan growth relative to deposits [41]. Asset Management - Total assets decreased by $33.6 million, or 1%, during the first nine months of 2024, primarily due to a $323.9 million decrease in investment securities [29]. - Total assets amounted to $3,696,154 as of September 30, 2024, a slight increase from $3,681,202 at June 30, 2024 [39]. - Total assets for Sierra Bancorp as of September 30, 2024, were $3,621,959,000, a decrease from $3,713,882,000 in the previous year [48]. Credit Quality - Nonperforming loans to total gross loans ratio was 0.45%, with total classified loans down $6.4 million year-to-date [3]. - The provision for credit losses was $2.4 million, an increase of $2.2 million primarily due to higher net charge-offs [11]. - Nonperforming loans increased to $10,348,000 as of September 30, 2024, compared to $6,473,000 in the previous quarter and $781,000 a year ago, indicating a significant rise in credit quality concerns [40]. - The allowance for credit losses on loans and leases was $22.7 million at September 30, 2024, down from $23.5 million at December 31, 2023, reflecting a reduction in specific reserves [35]. Capital and Liquidity - Total capital increased by $20.6 million, or 6%, to $358.7 million as of September 30, 2024, driven by $30.2 million in net income and a $7.4 million favorable swing in accumulated other comprehensive income [34]. - The company maintains a strong liquidity position with cash and cash equivalents of $132,797 as of September 30, 2024, up from $78,602 at December 31, 2023 [39]. - The Community Bank Leverage Ratio increased to 11.70% as of September 30, 2024 [5]. - The effective tax rate was 26.4% of pre-tax income in Q3 2024, up from 25.8% in Q3 2023 [28]. Efficiency and Ratios - The efficiency ratio (tax-equivalent) improved to 58.38% for the three months ended September 30, 2024, compared to 59.15% in the previous quarter [44]. - Shareholders' equity to total assets ratio improved to 9.70% as of September 30, 2024, compared to 9.51% in the previous quarter [41]. - The equity ratio (GAAP) improved to 9.70% as of September 30, 2024, compared to 9.51% in June 2024 and 8.26% in September 2023 [45]. Future Outlook - The company anticipates continued growth in interest-earning assets and a stable net interest margin moving forward [49]. - The company continues to face risks related to economic conditions, regulatory changes, and operational challenges as outlined in its forward-looking statements [38]. - The company was recognized as one of the strongest community banks in the country, receiving a 5-star rating from Bauer Financial in 2024 [37].

If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Sierra Bancorp (BSRR) . This company, which is in the Zacks Banks - West industry, shows potential for another earnings beat. This parent company of Bank of the Sierra has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the pas ...