Sierra Bancorp(US:BSRR)2025-10-31 10:01Financial Performance - Net income for the three months ended September 30, 2025, was $9,699 thousand, down from $10,603 thousand in 2024, a decrease of 8.5%[12] - Comprehensive income for the three months ended September 30, 2025, increased to $13,194 thousand, compared to $12,751 thousand in 2024, reflecting a growth of 3.5%[16] - For the nine months ended September 30, 2025, net income was $29,433 thousand, down from $30,196 thousand in 2024, indicating a decline of 2.5%[16] - Net income for Q3 2025 was $9.7 million, or $0.72 per diluted share, compared to $10.6 million, or $0.74 per diluted share in Q3 2024[150] - Net income for the nine months ended September 30, 2025, was $29,433 million, a decrease of 2.5% from $30,196 million in 2024[25] Asset and Loan Growth - Total assets increased to $3,709,377 thousand as of September 30, 2025, up from $3,614,271 thousand at December 31, 2024, representing a growth of 2.6%[9][11] - Net loans rose to $2,466,608 thousand, an increase of 6.9% from $2,306,604 thousand at the end of 2024[9] - The total number of common shares outstanding decreased from 14,414,561 as of September 30, 2024, to 13,482,458 as of September 30, 2025, reflecting a reduction of approximately 6.5%[21] - The company's net loans reached $2.47 billion as of September 30, 2025, an increase from $2.31 billion at the end of 2024[95] - Total past due loans amounted to $14,193,000 as of September 30, 2025, compared to $4,706,000 on December 31, 2024, indicating a significant increase in past due loans[101] Income and Expense Analysis - Net interest income for the three months ended September 30, 2025, was $31,968 thousand, compared to $30,790 thousand for the same period in 2024, reflecting a year-over-year increase of 3.8%[12] - Noninterest income increased to $8,058 thousand for the three months ended September 30, 2025, compared to $7,789 thousand in 2024, marking a growth of 3.4%[12] - The provision for credit losses on loans was $3,709 thousand for the three months ended September 30, 2025, compared to $1,240 thousand in 2024, indicating an increase in credit loss expenses[12] - The provision for credit losses was $3.7 million for Q3 2025, an increase of $2.3 million, mainly due to individual reserves related to a single agricultural production property[154] - Total noninterest income increased by $0.3 million, or 3%, for Q3 2025 compared to Q3 2024, but decreased by $0.8 million, or 3%, year-to-date[190] Shareholder Returns - Book value per share increased to $26.71 as of September 30, 2025, compared to $24.88 in 2024, reflecting an increase of 7.3%[12] - Cash dividends per share increased to $0.25 for the three months ended September 30, 2025, compared to $0.24 in 2024, a rise of 4.2%[12] - Cash dividends declared were $0.25 per share for the three months ended September 30, 2025, compared to $0.24 per share in 2024, reflecting a 4.2% increase[19] - The company repurchased $1,462 thousand worth of stock during the three months ended September 30, 2025, compared to $371 thousand in the same period of 2024, indicating a significant increase in stock repurchase activity[19] Credit Quality and Losses - The total allowance for credit losses (ACL) on the loan portfolio was $25.2 million as of September 30, 2025, compared to $24.8 million at December 31, 2024[95] - Nonaccrual loans totaled $10,189,000 as of September 30, 2025, compared to $5,128,000 on December 31, 2024, representing a 98.5% increase[97] - The company did not recognize any interest on nonaccrual loans during the three or nine months ended September 30, 2025, and would have recognized an additional $0.9 million in interest income had those loans not been designated as nonaccrual[97] - The company recognized charge-offs of $280, recoveries of $71, and a provision for credit losses of $3.71 million for the quarter ended September 30, 2025[123] Investment Portfolio - The total fair value of investment securities available-for-sale is $596,933,000, with a significant portion ($595,701,000) derived from observable inputs[63] - The total available-for-sale securities amounted to $608.003 million, with unrealized losses of $13.894 million[72] - The amortized cost of held-to-maturity securities was $294.526 million, with an estimated fair value of $285.531 million, reflecting an allowance for credit losses of $15 thousand[76] - The company reported an unrealized loss of $24.7 million on securities transferred from available-for-sale to held-to-maturity as of September 30, 2025[73] Operational Metrics - The average interest rate on loans increased to 5.30% for the nine months ended September 30, 2025, compared to 5.11% in the prior year[172] - The overall investment portfolio had a tax-equivalent yield of 4.73% at September 30, 2025, with an average life of 6.01 years[181] - Demand deposits increased to $228.2 million, with an interest expense of $4.3 million, yielding 2.54%[172] - The total interest-bearing liabilities decreased to $2,197.3 million, with an interest expense of $35.4 million, yielding 2.15%[172]