Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2025 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 000-33063 SIERRA BANCORP (Exact name of registrant as specified in its charter) California 33-0937517 (State of incorporation) (I.R.S. Employer Identification No.) 86 ...

Core Viewpoint - Three stocks with strong momentum and buy rank are highlighted for investors: Taiwan Semiconductor Manufacturing Company Limited, Sierra Bancorp, and PCB Bancorp [1][2][3] Group 1: Taiwan Semiconductor Manufacturing Company Limited (TSM) - TSM has a Zacks Rank of 1 and a 15.5% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [1] - TSM's shares gained 14.4% over the past three months, outperforming the S&P 500's 1.7% increase [2] - TSM possesses a Momentum Score of A [2] Group 2: Sierra Bancorp (BSRR) - BSRR has a Zacks Rank of 1 and a 2.7% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [2] - BSRR's shares gained 23.4% over the last three months, significantly outperforming the S&P 500's 1.7% increase [3] - BSRR possesses a Momentum Score of A [3] Group 3: PCB Bancorp (PCB) - PCB has a Zacks Rank of 1 and a 2.2% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [3] - PCB's shares gained 6.9% over the last three months, also outperforming the S&P 500's 1.7% increase [3] - PCB possesses a Momentum Score of A [3]

Core Viewpoint - Sierra Bancorp (NASDAQ:BSRR) has shown strong financial performance, with a new price target set by D.A. Davidson indicating a potential upside of 16.28% from its current trading price. Financial Performance - The company reported quarterly earnings of $0.97 per share, exceeding the Zacks Consensus Estimate of $0.85 by 14.79%, and showing an improvement from $0.72 per share in the same quarter last year [2]. - Sierra Bancorp's quarterly revenue was $39.29 million, slightly below the Zacks Consensus Estimate by 1.69%, but an increase from $37.87 million reported in the same period last year [3]. Stock Performance - Currently, BSRR is trading at $37.82, reflecting a 1.86% increase or $0.69, with fluctuations between $37 and $38.46 today [4]. - The stock has a market capitalization of approximately $509.9 million and a trading volume of 35,938 shares, indicating its significance in the industry [4].

Core Insights - Sierra Bancorp reported an earnings per share (EPS) of $0.97, exceeding the Zacks Consensus Estimate of $0.85, and showing a significant improvement from the previous year's EPS of $0.72, with a quarterly earnings surprise of +14.79% [2][6] - The company's revenue for the quarter ending December 2025 was $39.29 million, slightly below the estimated $39.46 million but an increase from $37.87 million reported a year ago, demonstrating consistent revenue growth [3][6] - Sierra Bancorp has a price-to-earnings (P/E) ratio of approximately 12.68, indicating how the market values its earnings [4][6] Financial Metrics - The earnings yield for Sierra Bancorp is about 7.89%, reflecting the return on investment for shareholders [5] - The debt-to-equity ratio stands at approximately 1.03, indicating the proportion of debt used to finance the company's assets relative to shareholders' equity [5] - The current ratio is around 0.22, suggesting the company's ability to cover its short-term liabilities with its short-term assets [5]

Market Overview - The U.S. markets started 2026 with a decent performance despite concerns over labor markets, inflation, geopolitical tensions, and trade policies [1] - Strong fourth-quarter results and a patient Federal Reserve provided support to investor sentiment [1] Banking Sector Performance - The KBW Nasdaq Regional Banking Index increased by 6.5% in January, indicating a positive trend in the banking sector [2] - Investors are encouraged to focus on fundamentally solid banks that offer attractive dividend yields, which can provide stability and income [2] Dividend Increases - Five banks announced dividend hikes in January, with increases ranging from 4% to 16.7%, reflecting sustained profitability and capital strength [8] - The banks that raised dividends include Hancock Whitney Corporation, Hilltop Holdings, Tompkins Financial, OFG Bancorp, and Sierra Bancorp, all of which have robust business models [3][8] Hancock Whitney Corporation (HWC) - HWC announced a quarterly cash dividend of $0.50 per share, an increase of 11.1% from the previous payout, with a dividend yield of 2.62% and a payout ratio of 31% [5] - The company has a market cap of $5.75 billion and is expected to see a 5.4% rise in sales and a 5.8% growth in earnings for 2026 [9] Hilltop Holdings (HTH) - HTH declared a quarterly cash dividend of $0.20 per share, marking an 11% increase from the prior payout, with a dividend yield of 1.92% and a payout ratio of 27% [10][11] - The company has a market cap of $2.3 billion and has seen a stock rally of 9.5% over the past month [13] Tompkins Financial (TMP) - TMP announced a quarterly cash dividend of $0.67 per share, an 8.1% increase from the previous year, with a dividend yield of 3.25% and a payout ratio of 41% [14] - The company has a market cap of $1.16 billion and is projected to have a 16.5% rise in earnings for 2026 [22] OFG Bancorp - OFG declared a quarterly cash dividend of $0.35 per share, a 16.7% increase from the prior payout, with a dividend yield of 2.98% and a payout ratio of 26% [18] - The company has a market cap of $1.8 billion and has increased its dividend eight times in the past five years [18] Sierra Bancorp (BSRR) - BSRR announced a quarterly cash dividend of $0.26 per share, a 4% increase from the previous payout, with a dividend yield of 2.82% and a payout ratio of 35% [23] - The company has a market cap of $470.9 million and is expected to see a 3.4% rise in sales and a 6.4% increase in earnings for 2025 [26]

分组1 - Sierra Bancorp reported quarterly earnings of $0.97 per share, exceeding the Zacks Consensus Estimate of $0.85 per share, and up from $0.72 per share a year ago, representing an earnings surprise of +14.79% [1] - The company posted revenues of $39.29 million for the quarter ended December 2025, which missed the Zacks Consensus Estimate by 1.69%, compared to year-ago revenues of $37.87 million [2] - Over the last four quarters, Sierra Bancorp has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] 分组2 - Sierra Bancorp shares have increased by approximately 8.4% since the beginning of the year, outperforming the S&P 500's gain of 1.4% [3] - The current consensus EPS estimate for the coming quarter is $0.79 on revenues of $39.4 million, and for the current fiscal year, it is $3.40 on revenues of $161.03 million [7] - The Zacks Industry Rank for Banks - West is currently in the top 24% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

Financial Performance - Sierra Bancorp reported record quarterly net income of $12.9 million, or $0.97 per diluted share, representing a 24% increase from $10.4 million, or $0.72 per diluted share, in Q4 2024[5]. - For the full year 2025, net income was $42.3 million, or $3.11 per diluted share, a 4% increase from $40.6 million, or $2.82 per diluted share, in 2024[7]. - Net income for the year ended December 31, 2025, was $42,327 thousand, compared to $40,560 thousand in 2024, marking a growth of 4.36%[56]. - Net income for the three months ended December 31, 2025, was $12.894 million, up from $9.699 million in the previous quarter, representing a 32.6% increase[61]. Asset Growth - Total assets grew to $3.83 billion, a 6% increase from $3.61 billion at the end of 2024[5]. - Total assets increased to $3,829,279 thousand as of December 31, 2025, up from $3,614,271 thousand a year earlier, representing a growth of 5.95%[53]. - Total assets as of December 31, 2025, were $3,691,951,000, a slight increase from $3,658,132,000 on December 31, 2024[63]. Loan Performance - Loans at amortized cost increased by $215.4 million, or 9%, to $2.5 billion for the full year 2025, driven by enhancements to the mortgage warehouse program[5]. - Gross loans at amortized cost increased by $215.4 million, with a strategic increase of $191.9 million in mortgage warehouse balances[35]. - Total loans increased to $2,469,067,000 for the quarter ended December 31, 2025, compared to $2,314,900,000 for the same quarter in 2024, reflecting a growth of 6.7%[63]. Credit Quality - Credit loss expense for the full year 2025 was $6.1 million, compared to $4.6 million in 2024, with a reversal of $0.8 million in Q4 2025[24]. - Nonperforming loans decreased to $13,231 thousand, down from $19,668 thousand a year ago, indicating a reduction of 32.93%[54]. - The ratio of nonperforming loans to gross loans improved to 0.52% at December 31, 2025, from 0.84% at December 31, 2024[42]. - The allowance for credit losses on loans was $21.5 million at December 31, 2025, down from $24.8 million at December 31, 2024, representing 0.84% of total loans[44]. Deposit Trends - The cost of average total deposits declined to 1.14% in Q4 2025, down from 1.46% in Q4 2024[5]. - Deposit balances declined by $15.2 million, or 0.5%, primarily due to a 13% decrease in customer time deposits[39]. - Total deposits were $2,876,436 thousand as of December 31, 2025, a slight decrease from $2,891,668 thousand a year earlier[53]. Operational Efficiency - The efficiency ratio improved to 57.69% in Q4 2025, compared to 59.74% in Q4 2024, showing enhanced operational efficiency[58]. - Noninterest income totaled $7.337 million for the three months ended December 31, 2025, down from $8.058 million in the previous quarter, a decrease of 8.9%[61]. - Noninterest expense was $23.018 million for the three months ended December 31, 2025, slightly down from $23.635 million in the previous quarter, a reduction of 2.6%[61]. Shareholder Returns - The company repurchased 1,024,792 shares of common stock throughout 2025, representing 7.2% of shares outstanding at the end of 2024[5]. - The quarterly dividend was increased by one cent to $0.26 per share, marking the 108th consecutive quarterly dividend[5]. - Basic earnings per share for Q4 2025 was $0.97, an increase from $0.73 in Q4 2024, representing a growth of 32.88%[57].

Financial Performance - Sierra Bancorp declared a regular quarterly cash dividend of $0.26 per share, marking a 4% increase from the previous quarter's dividend of $0.25 per share [1] - The dividend will be paid on February 17, 2026, to shareholders of record as of February 9, 2026 [1] - The company has paid regular cash dividends every year since 1987, with the current announcement representing the 108th consecutive quarterly cash dividend [1] Company Overview - Sierra Bancorp is the parent company of Bank of the Sierra, which is one of the largest independent banks in the South San Joaquin Valley [2] - Bank of the Sierra offers a wide range of retail and commercial banking services through full-service branches in several counties, including Tulare, Kern, Kings, Fresno, Ventura, San Luis Obispo, and Santa Barbara [2] - In 2025, Bank of the Sierra was recognized as one of the strongest community banks in the country, receiving a 5-star rating from Bauer Financial [2]

Financial 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]

Core Insights - Sierra Bancorp reported revenue of $40.03 million for Q3 2025, a year-over-year increase of 3.8% and a surprise of +2.11% compared to the Zacks Consensus Estimate of $39.2 million [1] - The company's EPS for the quarter was $0.72, down from $0.74 a year ago, with an EPS surprise of -8.86% against the consensus estimate of $0.79 [1] Financial Performance Metrics - Net Interest Margin was reported at 3.8%, slightly above the three-analyst average estimate of 3.7% [4] - The Efficiency Ratio (tax-equivalent) was 58.1%, compared to the estimated 58.2% by three analysts [4] - Net Charge-Offs as a percentage of Average Loans were 0%, better than the average estimate of 0.1% [4] - Average Interest-Earning Assets totaled $3.4 billion, below the average estimate of $3.51 billion [4] - Total Non-performing Loans were $14.01 million, compared to the average estimate of $15.74 million [4] - Total Nonperforming Assets were $15.85 million, slightly above the average estimate of $15.74 million [4] - Total Non-interest Income was $8.06 million, exceeding the average estimate of $7.41 million [4] - Net Interest Income was reported at $31.97 million, above the average estimate of $31.78 million [4] Stock Performance - Shares of Sierra Bancorp have returned -7.9% over the past month, while the Zacks S&P 500 composite has increased by +2.5% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]