Sierra Bancorp (BSRR) investor relations material

Executive summary

• Achieved record quarterly net income of $12.9 million in Q4 2025, up 24% year-over-year, and full-year net income of $42.3 million, a 4% increase from 2024.

• Diluted EPS rose 34% to $0.97 in Q4 and 10% to $3.11 for the year, driven by higher net interest income and share repurchases.

• Return on average assets improved to 1.39% in Q4 and 1.15% for the year; return on average equity reached 14.09% in Q4 and 11.88% for the year.

Financial highlights

• Net interest income increased 5% in Q4 and 4% for the year, with net interest margin rising to 3.79% in Q4 and 3.75% for the year.

• Efficiency ratio improved to 57.7% in Q4 and 58.9% for the year.

• Cost of average total deposits declined to 1.14% in Q4 and 1.27% for the year.

• Noninterest income decreased 2% in Q4 and 3% for the year, mainly due to lower nonrecurring gains and service charges.

• Noninterest expense remained flat year-over-year, with a 0.1% annual decline due to expense management and staff reductions.

Outlook and guidance

• Management is optimistic for 2026, focusing on deepening lending and deposit relationships, enhancing technology, and maintaining expense discipline.