Sierra Bancorp reported second-quarter net income of $9.9 million, down from $10.6 million a year earlier, as diluted earnings per share slipped to $0.77 from $0.78.
For the first six months of 2026, net income rose to $22.4 million from $19.7 million a year earlier, a gain of 14%. Diluted earnings per share climbed to $1.72 from $1.43.
Second-quarter return on average assets was 1.09%, down from 1.16% in the same quarter of 2025, while return on average equity was 10.90%, compared with 12.08% a year earlier. On a year-to-date basis, return on average assets improved to 1.24% from 1.09%, and return on average equity increased to 12.38% from 11.26%.
Net interest income in the second quarter was $30.4 million, down $0.2 million, or 1%, from the prior-year quarter. Net interest margin widened to 3.74% from 3.68% a year earlier, but was essentially unchanged from 3.75% in the first quarter. For the first half, net interest income increased to $61.0 million from $60.7 million, while net interest margin improved to 3.75% from 3.71%.
Noninterest income for the first six months rose 9% to $15.8 million from $14.5 million. Noninterest expense fell 2% to $28.8 million from $29.7 million. The efficiency ratio improved to 57.70% from 60.00% in the first half of 2025.
Credit loss expense weighed on the quarter. Quarterly net income fell from $12.5 million in the first quarter to $9.9 million in the second quarter, a decline of 21%. The company said the drop reflected a $2.2 million increase in credit loss expense and a $1.7 million increase in noninterest expense.
Total assets were $3.72 billion at June 30, 2026, down from $3.77 billion at year-end 2025. Gross loans declined to $2.46 billion from $2.55 billion at the end of 2025, while total deposits increased to $2.93 billion from $2.88 billion.
Noninterest-bearing deposits were $1.03 billion at June 30, 2026, equal to 35.0% of total deposits, compared with 35.8% at year-end 2025. Cost of total deposits fell to 1.11% from 1.30% in the second quarter of 2025, and cost of funds declined to 1.31% from 1.49%.
Tangible book value per share increased to $26.19 from $23.98 a year earlier and from $23.42 at year-end 2025. Book value per share rose to $28.30 from $26.00 a year earlier. The tangible common equity ratio improved to 9.19% from 8.77% at year-end 2025, and the community bank leverage ratio at the subsidiary bank rose to 12.25% from 11.75%.
During the first half, Sierra Bancorp repurchased 396,429 shares and held $1.9 billion in primary and secondary liquidity sources at June 30. Today the company's shares have moved 0.38% to a price of $41.88. If you want to know more, read the company's complete 8-K report here.
