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Get filing alertsSierra Bancorp Q2 net income falls 7% to $9.9M on $2.5M agricultural loan reserve
Filed July 27, 2026 · Period ending July 27, 2026 · ~1 min read
Key Changes
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Q2 2026 net income declined 7% YoY to $9.9M ($0.77/share) from $10.6M ($0.78/share), driven by a $2.5M specific reserve on a single agricultural production loan to a lumber industry borrower.
Item 2.02 verify on EDGAR → -
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First half 2026 net income rose 14% to $22.4M ($1.72/share) from $19.7M ($1.43/share), with net interest margin improving 4 bps to 3.75% and efficiency ratio improving to 57.70% from 60.00%.
Item 2.02 verify on EDGAR → -
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Cost of deposits declined 19 bps YoY to 1.11% and overall cost of funds fell 18 bps to 1.31%, while total deposits grew $54.6M (2%) in H1 2026 to $2.93B with noninterest-bearing deposits at 35.0% of total.
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Q2 2026 noninterest expense included $0.5M in severance and recruitment costs from an executive team restructuring; company repurchased 396,429 shares in H1 2026 and declared a $0.27/share dividend payable August 10.
Item 2.02 verify on EDGAR →
Summary
Sierra Bancorp reported mixed second quarter 2026 results, with quarterly net income declining 7% year-over-year to $9.9 million ($0.77 per diluted share) from $10.6 million ($0.78 per share) in Q2 2025.
The decline was driven by a $2.5 million specific reserve established on a single agricultural production loan to a borrower in the lumber industry, which contributed to a $1.1 million increase in total credit loss expense. This single-loan reserve materially impacted quarterly profitability despite improving funding economics.
For the first half of 2026, the company delivered stronger results with net income rising 14% to $22.4 million ($1.72 per diluted share) and net interest margin expanding 4 basis points to 3.75%. Cost of deposits fell 19 basis points year-over-year to 1.11% while total deposits grew 2% to $2.93 billion, with noninterest-bearing deposits comprising 35% of the total. The company continued capital return through a 396,429-share repurchase in the first half and a $0.27 per share dividend declared for August payment. Q2 results included $0.5 million in severance and recruitment costs from an executive team restructuring, a one-time expense that should not recur.
Section-by-Section Diff
Event · Item 2.02 — Results of Operations and Financial Condition
Sierra Bancorp disclosed Q2 2026 earnings results via press release, with detailed financials provided in Exhibit 99.1.
Added in current filing · verify on EDGAR →
On July 27, 2026, Sierra Bancorp issued a press release announcing its unaudited consolidated financial results for the three- and six-month periods ended June 30, 2026.
Sierra Bancorp announced its second quarter 2026 financial results. The press release contains unaudited consolidated results for both the three-month and six-month periods ending June 30, 2026. Specific financial metrics and performance details are contained in the attached Exhibit 99.1.
Event · Exhibit 99.1
Added in current filing · view on EDGAR →
Sierra Bancorp reported consolidated net income of $9.9 million, or $0.77 per diluted share, for the second quarter of 2026, compared to $10.6 million, or $0.78 per diluted share, in the second quarter of 2025. Return on average assets was 1.09% and return on average equity was 10.90% for the second quarter of 2026.
Q2 2026 net income declined 7% year-over-year to $9.9 million ($0.77 per diluted share) from $10.6 million ($0.78 per share) in Q2 2025. Return on average assets was 1.09% and return on average equity was 10.90%. The decline was driven primarily by higher credit loss expense, partially offset by lower funding costs.
Added in current filing · view on EDGAR →
For the first six months of 2026, the Company recognized net income of $22.4 million, or $1.72 per diluted share, as compared to $19.7 million, or $1.43 per diluted share, for the same period in 2025. The Company's improved financial performance metrics for the first half of 2026 include a net interest margin of 3.75% and an efficiency ratio of 57.70%, as compared to a net interest margin of 3.71% and efficiency ratio of 60.00% for the same period in 2025.
For the first six months of 2026, net income increased 14% to $22.4 million ($1.72 per diluted share) from $19.7 million ($1.43 per share) in the prior-year period. Diluted EPS rose 20%. Net interest margin improved 4 basis points to 3.75%, and the efficiency ratio improved to 57.70% from 60.00%, reflecting better profitability and cost management.
Added in current filing · view on EDGAR →
These changes were offset by a $1.1 million increase in credit loss expense on loans, resulting primarily from a $2.5 million specific reserve on a single agricultural production loan to a borrower in the lumber industry.
The company established a $2.5 million specific reserve on a single agricultural production loan to a borrower in the lumber industry during Q2 2026. This reserve drove a $1.1 million increase in total credit loss expense compared to Q2 2025, materially impacting quarterly earnings.
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Figures/quotes linked to EDGAR · Narrative written by AI · Jul 28, 2026 · How we verify