Sierra Bancorp : Investor Presentation May 2026

Published: 2026-05-04 09:09:09 ET BSRR

Published on 05/04/2026 at 09:09 am EDT

34 branches located throughout California's Central Valley and Central Coast regions

CENTRAL CALIFORNIA

BASED

Bank of the Sierra opened in Porterville,

CA in 1978 as a single-branch bank

Sierra Bancorp was formed as the holding company for the Bank in 2001

The Company has reached $3.8 billion in

assets, with 34 offices

Bank of the Sierra maintains its community bank roots providing personal service to small- and medium-sized businesses throughout our footprint, as well as over 95,000 consumer customers

Recognized as a top-ranked California bank by Forbes in 2025

KBRA ratings of BBB and BBB+ for senior unsecured debt for Sierra Bancorp and Bank of the Sierra, respectively

Mortgage warehouse lender for over

twenty years

COMPANY BACKGROUND

SIERRA BANCORP

(NASDAQ: BSRR)

Recent Stock Price1:

$36.08

Price/TTM Earning1:

10.55x

Price/Consensus 2026 Earnings1:

9.67x

Price/Tangible Book Value1:

1.40x

Most recent quarterly dividend2:

$0.26

Dividend Yield1,2:

2.88%

Market Capitalization1:

$472.4MM

Repurchased 1,024,792 shares, or 7%, in 2025

Repurchased 263,632 shares year-to-date in 2026 Current Repurchase Plan expires 10/31/2026

Stock data and metrics as of close of trading on April 30, 2026.

Dividend announced on April 23, 2026, paid on May 11, 2026, to shareholders of record as of May 4, 2026. This $0.26 per share dividend this quarter marked the Company's 109th consecutive quarterly cash 4

dividend.

PEOPLE

Attract and retain the best talent

PROFITABILITY

Be a top performing bank with 10% annualized EPS growth

TECHNOLOGY

PROCESS s

Enhance

customer experience across all touchpoints

PEOPLE

Foster a work environment that attracts

and retains high-performing individuals

Strengthen our One Bank Program, helping each other regardless of our differences, united and working together for a greater purpose

Promote a culture of engagement and accountability, which rewards strong performance

Enhance succession plans to ensure we have deep talent across the organization

Improve training and development programs with a focus on service and sales

Design compensation plans to align employee interests with those of shareholders

PROFITABILITY

Management believes it can achieve 10% EPS by utilizing a 5-2-0 model for growth of margin, noninterest income, and noninterest expense, respectively

Expects to improve margin through growth of low-cost deposits and modest loan growth

Seeks low-single digit noninterest income growth primarily through growth of money service business fees and debit card interchange

Intends to remain laser-focused on expense management to maintain our overall cost structure

Plans to supplement income growth with dividends and share repurchases

Anticipates to selectively complement organic income growth with a compelling strategic acquisition

TECHNOLOGY

PROCESS s

Elevate the customer experience across all touchpoints

Expand or improve product offerings tailored to our customer base

Align our digital strategy with our overall strategy

Continue to enhance loan monitoring and oversight to identify any credit concerns as early as possible

Improve operational efficiency across the Bank

Streamline our Mortgage Warehouse delivery process to improve efficiency, service, and profitability

Keep Thinking

Keep Serving

Keep Learning

Keep Growing

Keep Giving

Keep Striving

Keep Smiling

Anticipate and meet needs with a broad range of solutions Provide quality service on a timely, competitive basis

Be passionate about being the right person on the team

Encourage creativity and maximize every opportunity to improve Serve our communities through involvement and reinvestment Be disciplined; aim for excellence

Enjoy the journey and have fun along the way

Bank of the Sierra is the preeminent community bank in California's South-Central Valley

Excellent Core Deposit Base

Granular deposit base with approximately 120,000 customer accounts across 34 branches

Anchored by approximately 35% noninterest bearing deposits driving a consistent low cost of deposits

Number one for deposit market share in our headquarter's county

Strong Fee Income Base

Debit card interchange is the primary fee source, driven by active use across ~95,000 consumer accounts

Deposit analysis fees from money services businesses in our footprint remain a solid income source

Significant activity-based overdraft charges due to the Bank's large Central California consumer base

Income from CRA-eligible SBIC investments and bank-owned life insurance compliment fee income

Diversified

Earning Assets

Mortgage Warehouse business line funded with short-term wholesale funding

Focus on serving our local communities and expanding commercial real estate lending

Investment portfolio mix of bonds designed to address interest rate risk while providing a strong source of earnings

Solid Asset Quality

Total nonperforming assets declined by $4.4 million, or 30%, during the first quarter of 2026, with two relationships comprising 71% of the current overall balance

Stable classified asset trends

Enhanced credit monitoring process with a dedicated portfolio management team

Other

Considerations

Experienced and talented management team

Strong corporate governance led by our diverse board

Strategic focus of improving shareholder value through enhanced earnings through expense control

and earning asset growth, capital management, and long-term growth in tangible book value per share

PROACTIVE CAPITAL MANAGEMENT

EPS ACCRETION

25%

DIVIDEND YIELD

STOCK REPURCHASE RATE YTD

For the three months ended March 31, 2026 (annualized)

12%

Period-End Ratios

$25.42

$25.69

$23.15

$21.73

$20.91

7.48%

7.65%

$18.06

8.05%

8.36%

8.62%

9.93%

8.44%

9.18%

9.14%

9.02%

8.99%

8.88%

$30.00

TANGIBLE COMMON EQUITY RATIO

TANGIBLE BOOK VALUE PER SHARE ($)

11% $25.00

10% $20.00

9% $15.00

$10.00

$5.00

6% $-

12/31/2021 12/31/2022 12/31/2023 12/31/2024 12/31/2025 3/31/2026

Note: Year-to-Date 2026 is through March 31, 2026 for BSRR and through December 31, 2025 for Peer Banks.

The National Peer Group ("NPG") is the median for publicly-traded banks in the U.S. with assets between $500 million and $5 billion.

For the first quarter of 2026

Strong Financial Metrics

Focus on Profitability

Low-Cost Deposits

Solid Capital s Liquidity

Diluted earnings per share increased $0.31, or 47%, from the same quarter in 2025.

Return on average assets improved to 1.39% compared to 1.02% for the same quarter in 2025.

Return on average equity rose to 13.88% compared to 10.44% for the same quarter in 2025.

Net interest margin increased to 3.75% as compared to 3.74% in the first quarter of 2025.

Annualized noninterest income to average assets improved to 0.88% as compared to 0.75% in the first quarter of 2025.

Efficiency ratio improved to 56.45% as compared to 60.62% in the same quarter in 2025 with overall

expenses declining 2.6% as compared to the same period in 2025.

Total deposits increased $75.9 million, or 3%, as compared to March 31, 2025.

Excluding brokered deposits, deposits increased $49.1 million, or 2%, from the prior linked quarter.

Noninterest-bearing deposits of $1.03 billion at March 31, 2026, represent 35% of total deposits.

Cost of funds declined to 1.33% in the first quarter of 2026 as compared to 1.46% in the same quarter in 2025.

Uninsured deposits are approximately 24% of total deposit balances.

Increased Tangible Book Value per share by 1% to $25.69 per share during the quarter.

The Community Bank Leverage Ratio increased to 12.10% for our subsidiary bank as compared to 11.94% as of December 31, 2025.

Wholesale funding, including brokered deposits, is used primarily to fund the mortgage warehouse business line which provides a strong match of duration.

Overall primary and secondary liquidity sources of $2.1 billion at March 31, 2026.

Primary liquidity ratio increased to 19.8% at March 31, 2026, from 19.1% at December 31, 2025.

63.90%

59.92%

60.15%

60.76%

58.91%

56.45%

3.51%

3.70%

3.40%

3.60%

3.28%

3.70%

Tax-Equivalent NIM: 3.75%

1.29%

1.39%

0.97%

0.94%

1.12%

1.15%

5% 70.00%

ROAA AND NIM RATIOS

60.00%

EFFICIENCY RATIO

50.00%

40.00%

30.00%

20.00%

10.00%

12/31/2021 12/31/2022 12/31/2023 12/31/2024 12/31/2025 3/31/2026

0.00%

Return on Average Assets Net Interest Margin Efficiency Ratio

Since December 31, 2019

LIABILITIES

TOTAL

DEPOSITS

EQUITY

($ in thousands)

$2,781,572

$2,846,164

$2,761,223

$2,891,668 $2,876,436

$2,925,806

The above excludes customer repurchase agreements, which were $128 million for Q1 2026. 16

($ in thousands)

$1,153,312

$997,650

$454,459

$320,385

$1,110,945

$983,247

$462,153

$320,090

$1,200,000 $1,200,000

$1,000,000 $1,000,000

$800,000 $800,000

$600,000 $600,000

$400,000

$200,000

Maturity

Non-Maturity

DEPOSITS

Maturity

Non-Maturity

DEPOSITS

# of Accounts:

94,516

17,011

N/A

4,532

# of Accounts:

94,784

17,168

N/A

4,605

% of Total:

81%

15%

% of Total:

81%

15%

PERSONAL Non- NON-PERSONAL

BROKERED

TIME DEPOSITS

PERSONAL Non- NON-PERSONAL

BROKERED

TIME DEPOSITS

Note: As of March 31, 2026, brokered deposits included $130 million in time deposits and $190 million in non-maturity deposits. As of December 31, 2025,

brokered deposits included $194 million in time deposits and $125 million in non-maturity deposits. The Bank's brokered deposits are primarily used to 17

efficiently fund Mortgage Warehouse.

Since December 31, 2019

TOTAL ASSETS

LOANS

INVESTMENTS

Period End Balances ($ in thousands)

Loan Segment

3/31/2026 12/31/2025

Outstanding Outstanding Total Balance ($) Balance ($) Variance ($)

3/31/2026

% of 30-89

Portfolio NPL % Days DQ %

3/31/2026

Allowance Coverage Balance ($) Ratio (%)

12/31/2025

Allowance Coverage Balance ($) Ratio (%)

Commercial Real Estate

$ 1,381,770

$ 1,390,890

$ (9,120)

56.01%

0.00%

0.04%

$ 15,977

1.16%

$ 16,354

1.18%

Other Construction/Land

15,242

14,414

828

0.62%

0.00%

299

1.96%

296

2.05%

Farmland Real Estate

66,218

68,307

(2,089)

2.68%

4.69%

0.43%

542

0.82%

496

0.73%

Other Commercial

172,653

192,577

(19,924)

7.00%

3.94%

0.64%

2,351

1.36%

2,146

1.11%

Consumer Loans

2,597

2,810

(213)

0.11%

0.00%

0.15%

109

4.20%

112

3.99%

Subtotal

1,638,480

1,668,998

(30,518)

66.42%

0.60%

0.12%

19,278 1.18%

19,404 1.16%

Residential Real Estate

349,860

359,514

(9,654)

14.18%

0.14%

0.16%

1,368

0.39%

1,411

0.39%

Mortgage Warehouse Lines

478,454

518,333

(39,879)

19.40%

0.00%

604

0.13%

665

0.13%

Total $ 2,466,794 $ 2,546,845 $ (80,051)

100.00% 0.42% 0.10%

$ 21,250 0.86%

$ 21,480 0.84%

The small decrease in the ACL was primarily attributable to a decrease in the quantitative reserves due to reduced loan balances, partially offset by a $0.5 million increase in the allowance for loans individually evaluated, specifically related to a single agricultural production loan relationship that moved to nonaccrual during the first quarter of 2026.

Management expects modest growth in average balances in Mortgage Warehouse from its current levels. Residential Real Estate loans are comprised primarily of jumbo loans purchased in 2021 and early 2022 with strong

underwriting.

Total Real Estate Portfolio:

$1,813,090

CRE Non-Owner Occupied

Breakout

Residential Real Estate

19%

CRE Non-Owner Occupied

52%

Other 11%

Retail 33%

Warehouse/ Industrial 15%

Office

Farmland 4%

Multifamily 7%

Construction 1%

CRE Owner Occupied 17%

Hospitality

25%

16%

Disclaimer

Sierra Bancorp published this content on May 04, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 04, 2026 at 13:08 UTC.