Sierra Bancorp (BSRR) investor relations material

Strategic objectives and tactics

• Aims for 10% annualized EPS growth by focusing on margin, noninterest income, and expense management.

• Plans to supplement organic growth with dividends, share repurchases, and selective acquisitions.

• Focuses on attracting and retaining top talent, fostering engagement, and aligning compensation with shareholder interests.

• Seeks to enhance customer experience and operational efficiency through digital strategy and process improvements.

Financial performance and trends

• Diluted EPS rose 47% year-over-year in Q1 2026; return on average assets improved to 1.39%.

• Net interest margin increased to 3.75%; efficiency ratio improved to 56.45% with a 2.6% expense decline.

• Tangible book value per share grew 1% to $25.69; community bank leverage ratio reached 12.10%.

• Compound annual growth rates since 2019: assets 6%, loans 6%, investments 7%, deposits 5%.

Deposit and funding profile

• Maintains a granular deposit base with 120,000 accounts across 34 branches; 35% are noninterest-bearing.

• Cost of funds declined to 1.33% in Q1 2026; uninsured deposits represent 24% of total balances.

• Brokered deposits primarily fund the mortgage warehouse business; primary liquidity ratio increased to 19.8%.