Sierra Bancorp Reports Improved Financial Results for Second Quarter and First Six Months of 2024

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PORTERVILLE, Calif., July 22, 2024--(BUSINESS WIRE)--Sierra Bancorp (Nasdaq: BSRR), parent of Bank of the Sierra, today announced its unaudited financial results for the three- and six-month periods ended June 30, 2024. Sierra Bancorp reported consolidated net income of $10.3 million, or $0.71 per diluted share, for the second quarter of 2024, compared to $9.9 million, or $0.67 per diluted share, in the second quarter of 2023. On a linked-quarter (three months ended March 31, 2024) basis, the Company reported an increase of $0.9 million, or 10%, in net income.

Highlights for the second quarter of 2024:

  • Improved Earnings

    • Diluted Earnings per Share increased 11%, or $0.07, from the prior linked quarter.

    • Increased Return on Average Assets to 1.14%, from 1.06%, in the prior linked quarter.

    • Higher Return on Average Equity of 11.95%, compared to 11.09%, in the prior linked quarter.

    • Improved net interest income by $1.5 million, or 5%, as compared to the prior linked quarter.

    • Net interest margin grew by 7 basis points from the prior linked quarter to 3.69%.

  • Strong Asset Quality

    • Total Nonperforming Loans to total gross loans declined 56% to 0.29% at June 30, 2024.

    • No foreclosed assets at June 30, 2024.

    • Regulatory Commercial Real Estate concentration ratio of 241%, and a 10% decline in total commercial real estate loan balances the past three years.

    • No non-owner occupied commercial real estate loans are on nonaccrual status as of June 30, 2024.

    • Delinquencies remained low at 0.14% of total loans.

  • Asset and Deposit Growth

    • Total assets increased $128.1 million, or 14% annualized, during the quarter, to $3.7 billion.

    • Loan growth of $77.7 million, or 14% annualized, during the quarter, to $2.2 billion.

    • Total deposits increased by $95.4 million, or 13% annualized, during the quarter, to $2.9 billion.

    • Noninterest-bearing deposits of $986.9 million at June 30, 2024, represent 34% of total deposits.

  • Solid Capital and Liquidity

    • Increased Tangible Book Value (non-GAAP) per share by 3%, to $22.24 per share during the quarter.

    • Repurchased 178,168 shares of stock during the quarter.

    • Raised dividend by $0.01 for the quarter to $0.24 per share, payable on August 15, 2024.

    • Strong regulatory Community Bank Leverage Ratio of 11.6%, at June 30, 2024, for our subsidiary Bank.

    • Tangible Common Equity Ratio (non-GAAP) of 8.8%, at June 30, 2024, on a consolidated basis.

    • Overall primary and secondary liquidity sources of $2.5 billion at June 30, 2024.

"In any team sport, the best teams have consistency and chemistry." Roger Staubach

"We are excited to share our strong second quarter results! The solid improvements achieved in the past two quarters demonstrate our balanced commitment to both our communities and shareholders as we complement growth with a focus on balance sheet strategy in a challenging interest rate environment," stated Kevin McPhaill, CEO and President. "Our expanding and diversified banking teams continue to strengthen existing customer relationships while also bringing new relationships to the Bank. We are proud of our results for the first half of 2024 and believe that building this foundation will enable us to continue providing both exemplary service to our customers and strong and consistent returns for our shareholders," concluded Mr. McPhaill.