Form 8-K

8-K — SIERRA BANCORP

Accession: 0001104659-26-086884

Filed: 2026-07-27

Period: 2026-07-27

CIK: 0001130144

SIC: 6022 (STATE COMMERCIAL BANKS)

Item: Results of Operations and Financial Condition

Item: Financial Statements and Exhibits

Documents

8-K — bsrr-20260727x8k.htm (Primary)

EX-99.1 (bsrr-20260727xex99d1.htm)

GRAPHIC (bsrr-20260727xex99d1001.jpg)

XML — IDEA: XBRL DOCUMENT (R1.htm)

8-K

8-K (Primary)

Filename: bsrr-20260727x8k.htm · Sequence: 1

SIERRA BANCORP_July 27, 2026

0001130144false00011301442026-07-272026-07-27

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) July 27, 2026

SIERRA BANCORP

(Exact name of registrant as specified in its charter)

California

000-33063

33-0937517

(State or other jurisdiction of incorporation)

(Commission File Number)

(IRS Employer Identification No.)

86 North Main Street, Porterville, CA 93257

(Address of principal executive offices) (Zip code)

(559) 782-4900

(Registrant’s telephone number including area code)

Not applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, no par value

BSRR

NASDAQ Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

ITEM 2.02RESULTS OF OPERATIONS AND FINANCIAL CONDITION

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. A copy of the press release is attached as Exhibit 99.1 to this Current Report.

The information in this report (including Exhibit 99.1) is being furnished pursuant to Item 2.02 and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act.

ITEM 9.01FINANCIAL STATEMENTS AND EXHIBITS

(d)Exhibits. The information required to be furnished pursuant to this item is set forth in the Exhibit Index which appears below, immediately before the signatures.

EXHIBIT INDEX

Exhibit No.

Description

99.1

Press release issued by Sierra Bancorp dated July 27, 2026

104

Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101)

SIGNATURES

Pursuant to the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Executive Vice President &

Chief Financial Officer

Dated: July 27, 2026

SIERRA BANCORP

By: /s/ Christopher G. Treece

Christopher G. Treece

Executive Vice President &

Chief Financial Officer

EX-99.1

Filename: bsrr-20260727xex99d1.htm · Sequence: 2

Exhibit 99.1

FOR IMMEDIATE RELEASE

Date:

July 27, 2026

Contact:

Kevin McPhaill, President/CEO

Phone:

(559) 782-4900 or (888) 454-BANK

Website Address:

www.sierrabancorp.com

SIERRA BANCORP REPORTS FINANCIAL RESULTS FOR SECOND QUARTER AND FIRST SIX MONTHS OF 2026

Porterville, Calif. – (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, 2026. 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.

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.

Highlights for the second quarter and first half of 2026:

● Strong YTD Earnings and Profitability (first half compared to same period last year)

o Diluted earnings per share increased by $0.29, or 20%, to $1.72 per diluted share.

o Return on average assets rose to 1.24%, as compared to 1.09%.

o Return on average equity expanded to 12.38%, as compared to 11.26%.

o Net interest margin remained strong at 3.75%, increasing four basis points from 3.71%.

o Efficiency ratio(1) improved to 57.70%, as compared to 60.00%.

● Deposit Franchise Strength and Low Cost of Funds

o Total deposits increased $54.6 million, or 2%, from December 31, 2025.

o Noninterest-bearing deposits of $1.03 billion at June 30, 2026, represent 35.0% of total deposits.

o Cost of total deposits declined to 1.11% compared to 1.30% in the second quarter of 2025, while cost of funds decreased to 1.31% from 1.49%.

o Core non-maturity deposits increased $67.8 million, or 3%, from December 31, 2025.

o Uninsured deposits, exclusive of public funds, are approximately 25% of total deposit balances.

● Solid Capital and Liquidity

o Tangible book value(1) per share increased to $26.19 at June 30, 2026, compared to $23.42 at December 31, 2025.

o Repurchased 396,429 shares of stock during the first half of 2026.

o Declared dividend of $0.27 per share, payable on August 10, 2026.

o Strong regulatory Community Bank Leverage Ratio of 12.25%, at June 30, 2026, for our subsidiary Bank.

o Tangible common equity ratio(1) of 9.19%, at June 30, 2026, on a consolidated basis.

o Overall primary and secondary liquidity sources of $1.9 billion at June 30, 2026.

_______________________________

(1) See reconciliation of non-GAAP financial measures to the corresponding GAAP measurement in "Non-GAAP Financial Measures."

Sierra Bancorp Financial Results

July 27, 2026

Page 2

“Coming together is the beginning. Keeping together is progress. Working together is success.” – Henry Ford

“We are proud to serve the Central Valley and Central Coast of California. Our strong commitment to these communities is reflected in our continued solid deposit growth during 2026,” stated Kevin McPhaill, CEO and President. “I am particularly proud of our ability to pivot, as demonstrated by the surge in loan growth in the last couple of months. This shift reflects the team’s laser focus on both loan and deposit growth. In particular, our loan pipeline increased significantly, and we expect this momentum to result in net loan growth in the second half of 2026. Our expense management strategies resulted in a nearly 2% cost reduction in year-to-date expenses compared to the same period last year. We closed the quarter with contagious optimism throughout our Bank, boosting my confidence in what we can accomplish in the next six months and beyond!” concluded Mr. McPhaill.

Quarterly Income Changes (comparisons to the second quarter of 2025)

● Net income for the second quarter of 2026 decreased $0.7 million, or 7%, to $9.9 million. Net interest income remained stable, decreasing $0.2 million, while noninterest income increased slightly and noninterest expense decreased by $0.3 million. Noninterest expense in the second quarter of 2026 included approximately $0.5 million of severance and recruitment related charges resulting from a restructuring of the executive team. 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.

● Noninterest income and noninterest expense changes included a $0.4 million increase in earnings from separate account life insurance and a $0.1 million increase in deferred compensation expense. Separate account life insurance income and deferred compensation expense are designed to offset each other.

● Pre-tax pre-provision income(1) was $15.5 million, a slight increase over the second quarter of 2025.

Linked Quarter Income Changes (comparisons to the three months ended March 31, 2026)

● Net income decreased $2.6 million, or 21%, from the prior linked quarter. The decrease was driven primarily by a $2.2 million increase in credit loss expense, due to the $2.5 million specific reserve mentioned above, and a $1.7 million increase in noninterest expense. The large increase in noninterest expense was related to deferred compensation market changes that are offset by similar changes to separate account life insurance, recorded in noninterest income. The changes in deferred compensation, including deferred directors’ fees, were $1.7 million. In addition, we had $0.5 million in severance and recruiting costs related to an executive leadership restructuring during the quarter. These unfavorable changes were partially offset by a $0.6 million increase in noninterest income.

● Net interest income remained stable, decreasing $0.2 million from the linked quarter. Average interest-earning assets declined $43.0 million, or 1%, primarily due to lower loan and investment securities balances, while net interest margin remained stable at 3.74% compared to 3.75% in the linked quarter. Overall loan production activity increased throughout the quarter and the pipeline at June 30, 2026 is significantly elevated relative to the prior quarter end.

● Noninterest income changes included a $1.8 million increase in earnings from separate account life insurance associated with deferred compensation arrangements, offset by a $1.7 million increase in related deferred compensation expense, recorded in noninterest expense. Deferred compensation expense increased primarily due to increases in participant account values resulting from favorable market performance during the quarter.

● Other changes to noninterest income outside of the above mentioned included a $0.3 million increase in service charge income, primarily driven by higher deposit account fees, partially offset by several nonrecurring transactions in the first quarter of 2026, including a $0.4 million gain on the sale of fixed assets, a $0.4 million special FHLB dividend, and a $0.6 million increase in the fair value of bank stocks.

Year-to-Date Income Changes (comparisons to the first six months of 2025)

● Net income increased $2.7 million, or 14%, to $22.4 million for the first six months of 2026. The increase was driven primarily by a $1.3 million increase in noninterest income, a $1.1 million decrease in provision for credit

Sierra Bancorp Financial Results

July 27, 2026

Page 3

losses, and a $0.9 million decrease in noninterest expense. Diluted earnings per share increased 20% to $1.72 compared to $1.43 in the comparative period.

● Net interest income increased $0.3 million due primarily to a four basis point increase in net interest margin to 3.75%, partially offset by slightly lower average earning assets. Funding costs declined meaningfully during the period, with cost of funds decreasing to 1.32% from 1.48% and cost of deposits declining to 1.14% from 1.31%.

● Noninterest income increased $1.3 million, or 9%, compared to the first six months of 2025. The increase was driven primarily by a $0.5 million increase in earnings on separate account life insurance, a $0.3 million increase in cash surrender value income from life insurance, a $0.2 million increase in service charges and fees, and a $0.4 million gain on sale of fixed assets. These favorable variances were partially offset by lower securities gains.

● Noninterest expense decreased $0.9 million, or 2%, compared to the first six months of 2025. The reduction was driven primarily by lower other operating expenses and deposit service costs, partially offset by increased occupancy expenses and higher professional service costs.

● Pre-tax pre-provision income(1) was $32.2 million for the first half of 2026, an increase of $2.4 million, or 8%.

Balance Sheet Changes (comparisons to December 31, 2025, unless otherwise noted)

● Total assets decreased $108.7 million, or 3%, to $3.72 billion during the first six months of 2026. The decline was primarily attributable to reductions in mortgage warehouse balances of $60.9 million and investment securities of $21.4 million.

● Gross loans decreased $90.8 million, or 4%, due to a $60.9 million decrease in mortgage warehouse balances, a $13.9 million decrease in residential real estate loans, a $13.4 million decrease in other commercial loans, a $1.2 million decrease in commercial real estate, and a $2.5 million decrease in farmland loans. These decreases were partially offset by an increase of $1.4 million in construction loans.

● Mortgage warehouse average balances increased $8.0 million during the second quarter of 2026 compared to the linked quarter, while ending balances declined by $21.0 million. Average balances of commercial real estate and commercial and industrial loans decreased during the quarter, and period-end balances remained relatively flat. However, loan production strengthened significantly as the quarter progressed, reflecting a shift in momentum entering the third quarter of 2026 and supporting an increased pipeline of commercial real estate and commercial and industrial lending opportunities.

● Total deposits increased $54.6 million, or 2%. Growth was concentrated in noninterest-bearing demand deposits and non-maturing interest-bearing deposits. Customer deposits increased $57.5 million, while brokered deposits decreased $2.9 million during the period.

● Other interest-bearing liabilities declined to $155.0 million at June 30, 2026, from $302.7 million at December 31, 2025. The $147.7 million decline was primarily due to a reduction in overnight borrowings used to fund mortgage warehouse lending activity.

_______________________________

(1) See reconciliation of non-GAAP financial measures to the corresponding GAAP measurement in "Non-GAAP Financial Measures."

Sierra Bancorp Financial Results

July 27, 2026

Page 4

Other financial highlights are reflected in the following table.

FINANCIAL HIGHLIGHTS

(Dollars in Thousands, Except Per Share Data, Unaudited)

As of or for the

three months ended

six months ended

6/30/2026

3/31/2026

6/30/2025

6/30/2026

6/30/2025

Net income

9,919

12,520

10,633

22,439

19,734

Diluted earnings per share

0.77

0.96

0.78

1.72

1.43

Return on average assets

1.09%

1.39%

1.16%

1.24%

1.09%

Return on average equity

10.90%

13.88%

12.08%

12.38%

11.26%

Net interest margin (tax-equivalent) (1)

3.74%

3.75%

3.68%

3.75%

3.71%

Yield on average loans

5.22%

5.26%

5.27%

5.24%

5.27%

Yield on investments

4.48%

4.44%

4.68%

4.46%

4.75%

Cost of average total deposits (3)

1.11%

1.17%

1.30%

1.14%

1.31%

Cost of funds (3)

1.31%

1.33%

1.49%

1.32%

1.48%

Efficiency ratio (tax-equivalent) (1) (2)

58.91%

56.45%

59.43%

57.70%

60.00%

Total assets

3,720,611

3,754,462

3,770,302

3,720,611

3,770,302

Gross loans, amortized cost

2,456,060

2,466,794

2,434,609

2,456,060

2,434,609

Noninterest demand deposits

1,026,319

1,028,678

1,065,742

1,026,319

1,065,742

Total deposits

2,930,991

2,925,806

2,974,469

2,930,991

2,974,469

Noninterest-bearing deposits over total deposits

35.0%

35.2%

35.8%

35.0%

35.8%

Shareholders' equity / total assets

9.86%

9.69%

9.43%

9.86%

9.43%

Tangible common equity ratio (2)

9.19%

9.02%

8.77%

9.19%

8.77%

Book value per share

28.30

27.78

26.00

28.30

26.00

Tangible book value per share (2)

26.19

25.69

23.98

26.19

23.98

Community bank leverage ratio (subsidiary bank)

12.25%

12.05%

11.75%

12.25%

11.75%

Tangible common equity ratio (subsidiary bank) (2)

11.37%

11.07%

10.77%

11.37%

10.77%

(1) Computed on a tax equivalent basis utilizing a federal income tax rate of 21%.

(2) See reconciliation of non-GAAP financial measures to the corresponding GAAP measurement in "Non-GAAP Financial Measures".

(3) Includes noninterest bearing deposits.

INCOME STATEMENT HIGHLIGHTS

Net Interest Income

Net interest income was $30.4 million for the second quarter of 2026, a decrease of $0.2 million, or 1%, compared to the second quarter of 2025. The decrease was primarily attributable to lower average interest-earning asset balances and yields, substantially offset by lower funding costs. Interest expense declined $1.5 million, or 13%, from the prior-year quarter, reflecting the benefits of lower deposit and wholesale funding costs.

For the second quarter of 2026, average interest-earning assets decreased $81.2 million, or 2%, from the same period in 2025, while the yield on those assets declined eight basis points to 5.02%. The decline in average earning assets was driven primarily by lower investment securities balances and decreases in real estate loans and agricultural production loans.

Average interest-bearing liabilities decreased $23.7 million in the second quarter of 2026 compared to the same period in 2025, while the cost of those liabilities declined 26 basis points to 1.92%. The quarterly decrease in cost was primarily attributable to a 28 basis point reduction in the cost of interest-bearing deposits and a 23 basis point reduction in the cost of borrowed funds. Average interest-bearing deposit balances declined $42.8 million from the prior-year quarter, comprised primarily of a decline in higher-cost customer time deposits which decreased $62.7 million and brokered deposits which declined $16.2 million. These changes were partially offset by higher average balances of federal funds purchased, which increased to fund mortgage warehouse lending activity.

Sierra Bancorp Financial Results

July 27, 2026

Page 5

The reduction in funding costs more than offset the modest decline in earning asset yields, resulting in a six basis point increase in the net interest margin to 3.74% from 3.68% in the second quarter of 2025.

Compared to the linked first quarter of 2026, net interest income decreased $0.2 million. Average interest-earning assets declined $43.0 million, or 1%, while yields on earning assets decreased two basis points. Average interest-bearing liabilities declined $16.0 million and the cost of those liabilities decreased two basis points to 1.92%. As a result, interest margin was essentially stable at 3.74% for the second quarter of 2026, compared to 3.75% for the first quarter of 2026.

Net interest income for the first six months of 2026 increased $0.3 million to $61.0 million, compared to the same period in 2025. The increase resulted primarily from an improved net interest margin, driven by lower funding costs and partially offset by a modest decline in average earning assets. Average interest-earning assets decreased $19.6 million, or 1%, and the yield on those assets decreased nine basis points to 5.03%.

For the first six months of 2026, interest expense decreased $2.3 million to $21.1 million, compared to $23.4 million during the same period in 2025. The decrease was driven by a 23 basis point reduction in the cost of interest-bearing liabilities to 1.93%, partially offset by a $25.1 million increase in average interest-bearing liabilities. The reduction in funding costs contributed to a four basis point increase in net interest margin to 3.75% for the first six months of 2026, compared to 3.71% for the same period in 2025.

At June 30, 2026, approximately $457.5 million, or 19%, of the Company's loan portfolio consisted of mortgage warehouse facilities, which generally reprice immediately as interest rates change. In addition, approximately $214.4 million of collateralized loan obligations and other floating-rate securities within the available-for-sale portfolio continue to provide asset sensitivity through periodic rate resets.

Credit Loss Expense

The credit loss expense on loans was $2.3 million for the second quarter of 2026, compared to $1.2 million for the second quarter of 2025. For the first six months of 2026, the provision for credit losses on loans was $2.4 million, compared to $3.2 million for the same period in 2025. A $2.5 million specific reserve established on an agricultural production loan during the second quarter of 2026 was the primary driver of the increase in credit loss expense for the quarterly comparison. Despite this reserve build, year-to-date credit loss expense benefited from a $6.1 million reduction in net charge-offs compared to the first six months of 2025.

The Company recorded a benefit for credit losses on unfunded commitments of $0.1 million during the second quarter of 2026 and a benefit of $0.1 million for the first six months of 2026, compared to a benefit of less than $0.1 million for the second quarter of 2025 and a provision of $0.1 million for the first six months of 2025.

The Company also recorded an immaterial benefit related to credit losses on held-to-maturity debt securities during the first six months of 2026. No provision for credit losses was recorded on available-for-sale debt securities during the periods presented. Although certain debt securities remained in an unrealized loss position, the declines in fair value were primarily attributable to changes in market interest rates and not to expected credit losses.

Noninterest Income

Total noninterest income increased $0.6 million, or 8%, to $8.6 million in the second quarter of 2026 from $8.0 million in the linked quarter. The increase was driven primarily by a $1.8 million favorable change in earnings on separate account life insurance and an increase of $0.3 million in service charges and fees on deposits. This increase was partially offset by the absence of several non-recurring income items recognized during the first quarter of 2026, including a $0.4 million gain on the sale of fixed assets, a $0.4 million special FHLB dividend, and a $0.6 million increase in the fair value of bank stocks.

Compared to the second quarter of 2025, total noninterest income was unchanged at $8.6 million. Favorable variances included a $0.4 million increase in earnings on separate account BOLI, a $0.1 million increase in service charges and fees

Sierra Bancorp Financial Results

July 27, 2026

Page 6

on deposit accounts, and a modest increase in cash surrender value income from life insurance. These improvements were largely offset by a $0.6 million decrease in other income, mainly due to a decrease in gain on life insurance proceeds.

For the first six months of 2026, noninterest income increased $1.3 million, or 9%, to $16.5 million compared to $15.2 million for the same period in 2025. The increase was driven primarily by a $0.5 million increase in earnings on separate account life insurance, a $0.3 million increase in cash surrender value income from life insurance, a $0.2 million increase in service charges and fees on deposit accounts, and a $0.4 million favorable variance from gains on sales of fixed assets. These favorable changes were partially offset by lower gains on sale of investment securities.

The Company’s non‑qualified deferred compensation plan for officers and directors allows participants to defer a portion of their earnings and select from various hypothetical investment alternatives to determine their individual returns. The Company economically offsets this liability with separate account life insurance policies that are invested in similar underlying fund types within the life insurance policy. Because the deferred compensation liability and the separate account life insurance asset are not contractually linked, differences in balances, fund performance, and insurance costs can result in temporary timing mismatches between changes in separate account life insurance income and the related deferred compensation expense.

Earnings on separate account life insurance were $1.4 million for the second quarter of 2026, compared to a loss of $0.4 million in the linked quarter and earnings of $1.0 million in the second quarter of 2025. For the first six months of 2026, earnings on separate account life insurance totaled $1.0 million, compared to $0.5 million for the same period in 2025. These changes reflect market-driven fluctuations in the value of the underlying investment alternatives and do not represent changes in the operating performance or credit quality of the Company.

The majority of the related deferred compensation expense or benefit is reported within professional services expense under deferred directors' fees, as it primarily relates to directors' deferred compensation elections. Deferred directors' fee expense was $1.0 million during the second quarter of 2026, compared to a benefit of $0.6 million in the linked quarter and expense of $0.9 million in the second quarter of 2025. For the first six months of 2026, deferred directors' fee expense totaled $0.5 million, compared to $0.5 million during the same period in 2025.

Noninterest Expense

Total noninterest expense increased $1.7 million, or 8%, to $23.5 million during the second quarter of 2026 from $21.8 million in the linked first quarter of 2026 primarily due to deferred compensation expense described above.

Compared to the second quarter of 2025, total noninterest expense decreased $0.3 million, or 1%. Salaries and benefits expense remained essentially unchanged from the prior year quarter. Other noninterest expense decreased $0.3 million, primarily due to lower deposit service costs and other operating expenses. These favorable variances were partially offset by higher deferred compensation expense, legal and accounting costs, and directors' fees.

For the first six months of 2026, noninterest expense decreased $0.9 million, or 2%, to $45.3 million from $46.2 million for the same period in 2025. Salaries and benefits decreased $0.3 million, while other noninterest expense declined $0.7 million. The improvement was primarily attributable to lower deposit service costs, lower operating expenses, and reduced sundry and teller expenses, partially offset by higher occupancy costs, legal and accounting expenses, and director-related costs. These results reflect management's continued focus on maintaining a relatively flat expense base while selectively investing in strategic growth initiatives, technology enhancements, regulatory compliance, and customer service capabilities.

Overall full-time equivalent employees were 452 at June 30, 2026, as compared to 465 at December 31, 2025, and 494 at June 30, 2025.

The Company's effective tax rate was 25.3% for the second quarter of 2026, unchanged from the second quarter of 2025 and as compared to 25.2% in the linked first quarter of 2026. For the first six months of 2026, the effective tax rate was

Sierra Bancorp Financial Results

July 27, 2026

Page 7

25.2%, compared to 25.5% for the same period in 2025. The lower year-to-date effective tax rate reflects the continued benefit of tax-exempt income and tax credit investments as a percentage of pre-tax earnings.

Balance Sheet Summary

Total assets decreased $108.7 million, or 3%, during the first six months of 2026 to $3.72 billion at June 30, 2026. The decline was primarily attributable to a $90.8 million decrease in gross loans and a $21.4 million decrease in investment securities, partially offset by a $7.1 million increase in cash and cash equivalents.

The decrease in gross loan balances compared to December 31, 2025, was primarily driven by a $60.9 million reduction in mortgage warehouse balances, reflecting normal fluctuations in mortgage origination activity and secondary market demand. Other changes in loan balances were primarily attributable to scheduled paydowns, payoffs, and normal customer activity. Despite the decline in period-end balances, mortgage warehouse average balances increased $8.0 million during the second quarter of 2026 compared to the linked quarter. Average balances of commercial real estate and commercial and industrial loans declined modestly during the quarter, while period-end balances remained relatively stable. As the quarter progressed, however, loan production strengthened significantly, reflecting a shift in momentum entering the third quarter of 2026. This improvement was particularly evident within the commercial real estate and commercial and industrial portfolios and resulted in an enhanced pipeline of lending opportunities entering the second half of the year.

The Company's loan portfolio remains diversified, with commercial real estate representing 57% of total loans, mortgage warehouse balances representing 19%, residential real estate comprising 14%, and other commercial loans representing 7% of the portfolio at June 30, 2026. Commercial real estate balances remained relatively stable during the first six months of the year despite elevated payoff activity, reflecting continued success in replacing runoff with new production.

As indicated in the loan rollforward table below, new credit extended for the second quarter of 2026 increased $41.6 million over the linked quarter to $49.4 million and increased $1.2 million over the same period in 2025. The Company also had $59.6 million in loan paydowns and maturities, a $27.4 million decline in line of credit utilization, and a decrease of $60.9 million in mortgage warehouse facility utilization for the first half of 2026.

LOAN ROLLFORWARD

(Dollars in Thousands, Unaudited)

For the three months ended:

For the six months ended:

6/30/2026

3/31/2026

6/30/2025

6/30/2026

6/30/2025

Gross loans beginning balance

2,466,891

2,546,880

2,306,762

2,546,880

2,331,341

New credit extended

49,370

7,811

48,147

57,181

114,517

Changes in line of credit utilization (1)

(4,841)

(22,592)

2,587

(27,433)

(9,542)

Change in mortgage warehouse

(20,997)

(39,880)

118,665

(60,877)

75,496

Pay-downs, maturities, charge-offs and amortization

(34,217)

(25,328)

(41,556)

(59,545)

(77,207)

Gross loans ending balance

2,456,206

2,466,891

2,434,605

2,456,206

2,434,605

Deferred costs and (fees), net

(146)

(97)

(146)

Gross loans, amortized cost

2,456,060

2,466,794

2,434,609

2,456,060

2,434,609

(1) Change does not include new balances on lines of credit extended during the respective periods as such balances are included as part of “New credit extended” line above.

Sierra Bancorp Financial Results

July 27, 2026

Page 8

A summary of the Company’s unfunded commitments and utilization is presented below (dollars in thousands, unaudited):

June 30, 2026

December 31, 2025

June 30, 2025

Line Available (2)

Utilization %

Line Available (2)

Utilization %

Line Available (2)

Utilization %

Real estate:

Residential real estate

12,457

48.15%

15,726

44.50%

18,792

40.69%

Commercial real estate

20,230

87.59%

23,203

86.93%

29,150

84.50%

Other construction/land

985

92.15%

2,634

79.10%

5,781

54.22%

Farmland

3,372

79.32%

3,126

80.20%

4,968

66.73%

Total real estate

37,044

82.84%

44,689

80.92%

58,691

76.27%

Other commercial

172,504

48.94%

187,084

48.81%

202,473

44.39%

Consumer

4,461

22.62%

4,580

24.29%

4,789

23.81%

Subtotal (1)

214,009

61.75%

236,353

61.00%

265,953

56.94%

Mortgage warehouse facilities

336,543

57.61%

247,667

67.67%

334,604

54.57%

Overdrafts - Commercial and Consumer

66,452

1.46%

69,112

1.40%

69,944

1.24%

Total

617,004

56.58%

553,132

61.64%

670,501

52.95%

Unused commitment as a percent of gross loans, amortized cost

25.12%

21.72%

27.54%

Unused mortgage warehouse facilities as percent of gross loans, amortized cost

13.70%

9.72%

13.74%

(1) Excludes mortgage warehouse facilities and overdraft lines, both of which are unconditionally cancellable.

(2) Represents unfunded loan commitments available to customers.

Total deposits increased $54.6 million, or 2%, during the first six months of 2026. Core non-maturity deposits increased $67.8 million, or 3%, while customer time deposits decreased $10.3 million, or 2%. Wholesale brokered deposits decreased $2.9 million during the period due to growth in core deposits. Noninterest-bearing deposits increased $30.7 million during the first six months of 2026 and represented 35.0% of total deposits at June 30, 2026, compared to 34.6% at December 31, 2025, and 35.8% at June 30, 2025. The Company's strong base of noninterest-bearing deposits continued to support a favorable funding mix and contributed to lower funding costs.

Total borrowed funds totaled $363.0 million at June 30, 2026, consisting of $122.4 million in customer repurchase agreements, $120.0 million in overnight borrowings, $35.0 million in FHLB term advances, $49.5 million in long-term debt, and $36.1 million in subordinated debentures. Compared to December 31, 2025, total borrowed funds decreased $156.1 million, primarily due to a reduction in overnight borrowings and FHLB term advances as mortgage warehouse balances declined.

Overall uninsured deposits are estimated to be approximately $734.2 million, or 25% of total deposit balances, excluding public agency deposits that are subject to collateralization through a letter of credit issued by the FHLB. In addition, uninsured deposits of the Bank’s customers are eligible for FDIC pass-through insurance if the customer opens an IntraFi Insured Cash Sweep (ICS) account or a time deposit through the Certificate of Deposit Account Registry System (CDARS). IntraFi allows for up to $285 million per customer of pass-through FDIC insurance, which would more than cover each of the Bank’s deposit customers if such a customer desired to have such pass-through insurance. The Bank maintains a diversified deposit base with no significant customer concentrations and does not bank any cryptocurrency companies. At June 30, 2026, the Company had approximately 114,000 accounts and the 25 largest deposit balance customers had balances of approximately 11% of overall deposits. During the second quarter of 2026, there were seasonality fluctuations in the normal course of business, and one new customer addition to the composition of our 25 largest deposit balance customers.

Sierra Bancorp Financial Results

July 27, 2026

Page 9

The Company continues to have substantial liquidity which is managed daily. At June 30, 2026, and December 31, 2025, the Company had the following sources of primary and secondary liquidity (Dollars in Thousands):

Primary and secondary liquidity sources

6/30/2026

12/31/2025

Cash and cash equivalents

142,695

135,628

Unpledged investment securities

528,091

551,406

Excess pledged securities

52,540

35,620

FHLB borrowing availability

611,578

629,481

Unsecured lines of credit

366,785

250,785

Funds available through fed discount window

243,782

254,908

Totals

1,945,471

1,857,828

Total capital was $366.9 million at June 30, 2026, reflecting an increase of $2.0 million compared to $364.9 million at December 31, 2025. The increase in equity during the first six months of 2026 was primarily attributable to $22.4 million in net income, partially offset by $14.4 million in share repurchases, $6.8 million in cash dividends declared, and a $1.0 million increase in accumulated other comprehensive loss, primarily related to changes in the fair value of investment securities. The remaining difference was related to activity from stock options and restricted stock during the year.

Asset Quality

Total nonperforming assets, comprised of nonperforming loans and foreclosed assets, decreased $4.3 million to $10.5 million at June 30, 2026, from $14.8 million at December 31, 2025. The Company's ratio of nonperforming loans to gross loans improved to 0.43% at June 30, 2026, compared to 0.52% at December 31, 2025. The decline in nonperforming assets was primarily attributable to reductions in nonperforming commercial and agricultural credits, as well as the timely resolution and sale of an OREO asset in March 2026. Management individually evaluates all nonperforming loans for expected credit losses on a quarterly basis and believes the allowance for credit losses established for such loans is appropriate.

At June 30, 2026, loans past due 30 to 89 days and still accruing totaled $5.4 million compared to $6.8 million at December 31, 2025. Approximately $4.6 million of this balance related to a single commercial real estate loan that became 30 days past due near the end of the second quarter. Management believes the loan is well secured, with an estimated current loan-to-value ratio of approximately 51%, and therefore does not consider the credit to present a significant loss exposure.

The allowance for credit losses on loans increased $2.1 million to $23.6 million at June 30, 2026, compared to $21.5 million at December 31, 2025. The increase was primarily attributable to a $2.5 million reserve on a single agricultural loan, described earlier. Despite the higher allowance balance, asset quality metrics remained strong, with net charge-offs totaling $0.2 million during the first six months of 2026 compared to $6.3 million during the same period in 2025. The allowance for credit losses represented 0.96% of gross loans at June 30, 2026, compared to 0.84% at December 31, 2025.

Sierra Bancorp Financial Results

July 27, 2026

Page 10

The following tables highlight the coverage ratios by loan category at June 30, 2026, March 31, 2026, and December 31, 2025:

Allowance for Credit Losses on Loans by Category

(Dollars in Thousands, Unaudited)

As of June 30, 2026

Balance

Total Allowance

Percent of Portfolio

Coverage Ratio (1)

Real estate:

Commercial real estate

1,389,730

15,913

56.58%

1.15%

Other construction/land

15,851

307

0.65%

1.94%

Farmland

65,759

532

2.68%

0.81%

Total real estate (2)

1,471,340

16,752

59.91%

1.14%

Other Commercial

179,164

4,895

7.29%

2.73%

Consumer loans (including overdrafts)

2,524

108

0.10%

4.28%

Subtotal (2) (3)

1,653,028

21,755

67.30%

1.32%

Residential real estate

345,575

1,320

14.07%

0.38%

Mortgage warehouse facilities

457,457

525

18.63%

0.11%

Gross loans, amortized cost

2,456,060

23,600

100.00%

0.96%

As of March 31, 2026

Balance

Total Allowance

Percent of Portfolio

Coverage Ratio (1)

Real estate:

Commercial real estate

1,381,770

15,977

56.01%

1.16%

Other construction/land

15,242

299

0.62%

1.96%

Farmland

66,218

542

2.68%

0.82%

Total real estate (2)

1,463,230

16,818

59.32%

1.15%

Other Commercial

172,653

2,351

7.00%

1.36%

Consumer loans (including overdrafts)

2,597

109

0.11%

4.20%

Subtotal (2) (3)

1,638,480

19,278

66.42%

1.18%

Residential real estate

349,860

1,368

14.18%

0.39%

Mortgage warehouse facilities

478,454

604

19.40%

0.13%

Gross loans, amortized cost

2,466,794

21,250

100.00%

0.86%

As of December 31, 2025

Balance

Total Allowance

Percent of Portfolio

Coverage Ratio (1)

Real estate:

Commercial real estate

1,390,890

16,354

54.61%

1.18%

Other construction/land

14,414

296

0.57%

2.05%

Farmland

68,307

496

2.68%

0.73%

Total real estate (2)

1,473,611

17,146

57.86%

1.16%

Other Commercial

192,577

2,146

7.56%

1.11%

Consumer loans (including overdrafts)

2,810

112

0.11%

3.99%

Subtotal (2) (3)

1,668,998

19,404

65.53%

1.16%

Residential real estate

359,514

1,411

14.12%

0.39%

Mortgage warehouse facilities

518,333

665

20.35%

0.13%

Gross loans, amortized cost

2,546,845

21,480

100.00%

0.84%

(1) Coverage ratio equals allowance for credit losses on loans divided by amortized cost.

(2) Does not include residential real estate.

(3) Does not include mortgage warehouse facilities.

Mortgage warehouse balances historically have incurred nominal losses and therefore carry a significantly lower reserve than other loan categories. At June 30, 2026, mortgage warehouse balances totaled $457.5 million and represented approximately 19% of the loan portfolio, while the related allowance was $0.5 million, or 0.11% of outstanding balances.

Sierra Bancorp Financial Results

July 27, 2026

Page 11

Excluding mortgage warehouse balances and residential real estate loans, the allowance for credit losses as a percentage of gross loans was 1.32% at June 30, 2026, compared to 1.18% at March 31, 2026, and 1.16% at December 31, 2025.

The Company's largest loan segment, commercial real estate, continues to maintain a strong reserve coverage ratio of 1.15% at June 30, 2026. The most significant change in reserve levels occurred within the other commercial loan portfolio, where the allowance increased to $4.9 million, or 2.73% of loans, compared to $2.4 million, or 1.36%, at March 31, 2026. The increase primarily reflects an increase in specific reserves discussed above as well as changes in portfolio composition and management's assessment of credit risk within the segment.

Management's detailed analysis indicates that the Company's allowance for credit losses on loans should be sufficient to cover credit losses for the life of the loans outstanding as of June 30, 2026, but no assurance can be given that the Company will not experience substantial future losses relative to the size of the loan and lease loss allowance. The Company calculates the allowance for credit losses using a combination of quantitative and qualitative factors by call report category.

About Sierra Bancorp

Sierra Bancorp is the holding Company for Bank of the Sierra (www.bankofthesierra.com), which is in its 49th year of operations and strives to be the preeminent bank headquartered in the South San Joaquin Valley.

Bank of the Sierra offers a broad range of retail and commercial banking services through its 34 full-service branches located within the counties of Tulare, Kern, Kings, Fresno, Ventura, San Luis Obispo, and Santa Barbara. The Bank also maintains an online branch and provides specialized lending services through its mortgage warehouse division. Bank of the Sierra is recognized as one of the strongest and top-performing community banks in the country, with a 5-star rating from Bauer Financial.

Forward-Looking Statements

The statements contained in this release that are not historical facts are forward-looking statements based on management's current expectations and beliefs concerning future developments and their potential effects on the Company. Readers are cautioned not to unduly rely on forward looking statements. Actual results may differ from those projected. These forward-looking statements involve risks and uncertainties including but not limited to the health of the national and local economies, loan portfolio performance, the Company's ability to attract and retain skilled employees, customers' service expectations, the Company's ability to successfully deploy new technology, the success of acquisitions and branch expansion, changes in interest rates, and other factors detailed in the Company's SEC filings, including the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of the Company's most recent Form 10-K and Form 10-Q.

Sierra Bancorp Financial Results

July 27, 2026

Page 12

STATEMENT OF CONDITION

(Dollars in Thousands, Unaudited)

ASSETS

6/30/2026

3/31/2026

12/31/2025

9/30/2025

6/30/2025

Cash and due from banks

142,695

156,372

135,628

95,501

130,012

Investment securities

Available-for-sale, at fair value

611,822

615,401

625,330

596,933

668,834

Held-to-maturity, amortized cost, net of allowance for credit losses

282,880

287,583

290,811

294,511

298,484

Total investment securities

894,702

902,984

916,141

891,444

967,318

Real estate loans

Residential real estate

345,575

349,860

359,514

364,277

371,415

Commercial real estate

1,389,730

1,381,770

1,390,890

1,404,681

1,392,075

Other construction/land

15,851

15,242

14,414

13,420

11,662

Farmland

65,759

66,218

68,307

67,860

67,967

Total real estate loans

1,816,915

1,813,090

1,833,125

1,850,238

1,843,119

Other commercial

179,164

172,653

192,577

185,958

186,620

Mortgage warehouse facilities

457,457

478,454

518,333

452,683

401,896

Consumer loans

2,524

2,597

2,810

2,909

2,974

Gross loans, amortized cost

2,456,060

2,466,794

2,546,845

2,491,788

2,434,609

Allowance for credit losses on loans

(23,600)

(21,250)

(21,480)

(25,180)

(21,680)

Net loans

2,432,460

2,445,544

2,525,365

2,466,608

2,412,929

Bank premises and equipment

14,053

14,447

14,974

15,056

15,285

Other assets

236,701

235,115

237,171

240,768

244,758

Total assets

3,720,611

3,754,462

3,829,279

3,709,377

3,770,302

LIABILITIES AND CAPITAL

Noninterest demand deposits

1,026,319

1,028,678

995,623

1,072,927

1,065,742

Interest-bearing transaction accounts

591,515

604,016

581,746

635,279

603,294

Savings deposits

364,455

364,830

365,064

357,107

352,803

Money market deposits

179,706

153,438

151,760

156,255

148,084

Customer time deposits

451,819

454,459

462,153

476,242

514,596

Brokered deposits

317,177

320,385

320,090

234,950

289,950

Total deposits

2,930,991

2,925,806

2,876,436

2,932,760

2,974,469

Repurchase agreements

122,364

127,811

130,853

125,749

126,509

Long-term debt

49,528

49,506

49,483

49,461

49,438

Subordinated debentures

36,106

36,061

36,017

35,972

35,928

Other interest-bearing liabilities

155,000

185,000

302,700

135,000

154,400

Total deposits and interest-bearing liabilities

3,293,989

3,324,184

3,395,489

3,278,942

3,340,744

Allowance for credit losses on unfunded loan commitments

570

660

710

790

810

Other liabilities

59,155

65,904

68,217

69,562

73,041

Total capital

366,897

363,714

364,863

360,083

355,707

Total liabilities and capital

3,720,611

3,754,462

3,829,279

3,709,377

3,770,302

Sierra Bancorp Financial Results

July 27, 2026

Page 13

GOODWILL AND INTANGIBLE ASSETS

(Dollars in Thousands, Unaudited)

6/30/2026

3/31/2026

12/31/2025

9/30/2025

6/30/2025

Goodwill

27,357

Core deposit intangible

—

132

294

Total intangible assets

27,357

27,370

27,409

27,489

27,651

CREDIT QUALITY

(Dollars in Thousands, Unaudited)

6/30/2026

3/31/2026

12/31/2025

9/30/2025

6/30/2025

Nonperforming loans

10,544

10,410

13,231

14,006

14,981

Foreclosed assets

—

1,565

1,839

—

Total nonperforming assets

10,544

10,410

14,796

15,845

14,981

Quarterly net (recoveries) charge offs

(67)

307

2,915

209

6,580

Past due and still accruing (30-89)

5,424

907

6,835

187

3,033

Classified loans

29,304

31,595

31,433

32,111

35,700

Nonperforming loans / gross loans, amortized cost

0.43%

0.42%

0.52%

0.56%

0.62%

NPA's / loans plus foreclosed assets

0.43%

0.42%

0.58%

0.64%

0.62%

Allowance for credit losses on loans / gross loans, amortized cost

0.96%

0.86%

0.84%

1.01%

0.89%

SELECT PERIOD-END STATISTICS

(Unaudited)

6/30/2026

3/31/2026

12/31/2025

9/30/2025

6/30/2025

Shareholders' equity / total assets

9.86%

9.69%

9.53%

9.71%

9.43%

Gross loans, amortized cost / deposits

83.80%

84.31%

88.54%

84.96%

81.85%

Noninterest-bearing deposits / total deposits

35.02%

35.16%

34.61%

36.58%

35.83%

Core non-maturity deposits

2,161,995

2,150,962

2,094,193

2,221,568

2,169,923

Deferred loan (costs)/fees

(146)

(97)

(35)

Sierra Bancorp Financial Results

July 27, 2026

Page 14

CONSOLIDATED INCOME STATEMENT

(Dollars in Thousands, Unaudited)

For the three months ended:

For the six months ended:

6/30/2026

3/31/2026

6/30/2025

6/30/2026

6/30/2025

Interest income

40,939

41,196

42,717

82,135

84,170

Interest expense

10,527

10,588

12,064

21,115

23,405

Net interest income

30,412

30,608

30,653

61,020

60,765

Credit loss expense - loans

2,283

1,210

2,360

3,171

Credit loss (benefit) expense - unfunded commitments

(90)

(50)

(10)

(140)

100

Credit loss (benefit) - debt securities held-to-maturity

(1)

Net interest income after credit loss (benefit)

28,219

30,582

29,453

58,801

57,494

Service charges and fees on deposit accounts

5,987

5,673

5,855

11,660

11,436

Net gain on sale of securities available-for-sale

124

Net gain (loss) on sale of fixed assets

360

(19)

360

(22)

Increase in cash surrender value of life insurance

416

419

343

835

581

Earnings (loss) on separate account life insurance

1,386

(379)

973

1,006

470

Other income

781

1,896

1,400

2,678

2,606

Total noninterest income

8,570

7,969

8,553

16,539

15,195

Salaries and benefits

12,548

12,700

12,544

25,247

25,547

Occupancy expense

3,204

3,085

3,142

6,289

6,120

Other noninterest expenses

7,758

6,039

8,081

13,798

14,517

Total noninterest expense

23,510

21,824

23,767

45,334

46,184

Income before taxes

13,279

16,727

14,239

30,006

26,505

Provision for income taxes

3,360

4,207

3,606

7,567

6,771

Net income

9,919

12,520

10,633

22,439

19,734

TAX DATA

Tax-exempt muni income

1,678

1,624

1,577

3,302

3,153

Interest income - fully tax equivalent

41,385

41,628

43,136

83,013

85,008

Sierra Bancorp Financial Results

July 27, 2026

Page 15

PER SHARE DATA

(Unaudited)

For the three months ended:

For the six months ended:

6/30/2026

3/31/2026

6/30/2025

6/30/2026

6/30/2025

Basic earnings per share

0.77

0.96

0.78

1.74

1.44

Diluted earnings per share

0.77

0.96

0.78

1.72

1.43

Common dividends

0.26

0.25

0.52

0.50

Weighted average shares outstanding

12,848,133

12,988,932

13,563,910

12,917,542

13,692,003

Weighted average diluted shares

12,959,127

13,097,176

13,637,252

13,027,893

13,777,006

Book value per basic share (EOP)

28.30

27.78

26.00

28.30

26.00

Tangible book value per share (EOP) (1)

26.19

25.69

23.98

26.19

23.98

Common shares outstanding (EOP)

12,963,397

13,093,184

13,681,828

12,963,397

13,681,828

(1) See reconciliation of non-GAAP financial measures to the corresponding GAAP measurement in "Non-GAAP Financial Measures".

KEY FINANCIAL RATIOS

(Unaudited)

For the three months ended:

For the six months ended:

6/30/2026

3/31/2026

6/30/2025

6/30/2026

6/30/2025

Return on average equity

10.90%

13.88%

12.08%

12.38%

11.26%

Return on average assets

1.09%

1.39%

1.16%

1.24%

1.09%

Net interest margin (tax-equivalent) (1)

3.74%

3.75%

3.68%

3.75%

3.71%

Efficiency ratio (tax-equivalent) (1) (2)

58.91%

56.45%

59.43%

57.70%

60.00%

Net charge-offs (recoveries) / average loans (not annualized)

0.00%

0.01%

0.27%

0.01%

0.27%

(1) Computed on a tax equivalent basis utilizing a federal income tax rate of 21%.

(2) See reconciliation of non-GAAP financial measures to the corresponding GAAP measurement in "Non-GAAP Financial Measures".

Sierra Bancorp Financial Results

July 27, 2026

Page 16

NON-GAAP FINANCIAL MEASURES

(Dollars in Thousands, Unaudited)

As of:

6/30/2026

3/31/2026

6/30/2025

Total stockholders' equity

366,897

363,714

355,707

Less: goodwill and other intangible assets

27,357

27,370

27,651

Tangible common equity

339,540

336,344

328,056

Total assets

3,720,611

3,754,462

3,770,302

Less: goodwill and other intangible assets

27,357

27,370

27,651

Tangible assets

3,693,254

3,727,092

3,742,651

Total stockholders' equity (bank only)

447,070

439,623

430,250

Less: goodwill and other intangible assets (bank only)

27,357

27,370

27,651

Tangible common equity (bank only)

419,713

412,253

402,599

Total assets (bank only)

3,718,414

3,751,904

3,766,071

Less: goodwill and other intangible assets (bank only)

27,357

27,370

27,651

Tangible assets (bank only)

3,691,057

3,724,534

3,738,420

Common shares outstanding

12,963,397

13,093,184

13,681,828

Book value per common share (total stockholders' equity / shares outstanding)

28.30

27.78

26.00

Tangible book value per common share (tangible common equity / shares outstanding)

26.19

25.69

23.98

Equity ratio - GAAP (total stockholders' equity / total assets

9.86%

9.69%

9.43%

Tangible common equity ratio (tangible common equity / tangible assets)

9.19%

9.02%

8.77%

Tangible common equity ratio (bank only) (tangible common equity / tangible assets)

11.37%

11.07%

10.77%

For the three months ended:

For the six months ended:

Efficiency Ratio:

6/30/2026

3/31/2026

6/30/2025

6/30/2026

6/30/2025

Noninterest expense

23,510

21,824

23,767

45,334

46,184

Divided by:

Net interest income

30,412

30,608

30,653

61,020

60,765

Tax-equivalent interest income adjustments

446

432

419

878

838

Net interest income, adjusted

30,858

31,040

31,072

61,898

61,603

Noninterest income

8,570

7,969

8,553

16,539

15,195

Less gain (loss) on sale of securities

124

Less (loss) gain on sale of fixed assets

360

(19)

360

(22)

Tax-equivalent noninterest income adjustments

479

350

489

279

Noninterest income, adjusted

9,049

7,620

8,921

16,668

15,372

Net interest income plus noninterest income, adjusted

39,907

38,660

39,993

78,566

76,975

Efficiency Ratio (tax-equivalent)

58.91%

56.45%

59.43%

57.70%

60.00%

For the three months ended:

For the six months ended:

Pre-tax pre-provision income:

6/30/2026

3/31/2026

6/30/2025

6/30/2026

6/30/2025

Net income

9,919

12,520

10,633

22,439

19,734

Add: Provision for income taxes

3,360

4,207

3,606

7,567

6,771

Add: Provision for credit losses

2,193

1,200

2,219

3,271

Pre-tax pre-provision income

15,472

16,753

15,439

32,225

29,776

Sierra Bancorp Financial Results

July 27, 2026

Page 17

NONINTEREST INCOME/EXPENSE

(Dollars in Thousands, Unaudited)

For the three months ended:

For the six months ended:

Noninterest income:

6/30/2026

3/31/2026

6/30/2025

6/30/2026

6/30/2025

Service charges and fees on deposit accounts

Interchange income on debit cards

2,077

1,941

2,056

4,018

4,008

Business analysis fees

1,174

1,030

1,123

2,204

2,157

Overdraft fee income

1,313

1,324

1,255

2,637

2,500

Other service charges and fees

1,423

1,378

1,421

2,801

2,771

Net (loss) gain on sale of securities available-for-sale

—

124

Gain (loss) on sale of fixed assets

—

360

(19)

360

(22)

Increase in cash surrender value of life insurance

416

419

343

835

581

(Loss) earnings on separate account life insurance

1,386

(379)

973

1,006

470

Other

781

1,896

1,400

2,678

2,606

Total noninterest income

8,570

7,969

8,553

16,539

15,195

As a % of average interest-earning assets (1)

1.04%

0.96%

1.01%

1.00%

0.91%

Noninterest expense:

Salaries and employee benefits

Salary and incentives

10,403

10,409

10,463

20,811

21,150

Employee benefits

2,009

2,288

1,953

4,297

4,253

Deferred compensation

136

128

139

144

Occupancy costs

3,204

3,085

3,142

6,289

6,120

Advertising and marketing costs

338

333

405

670

753

Data processing costs

1,657

1,583

1,566

3,240

3,064

Deposit services costs

1,983

1,948

2,118

3,931

4,109

Loan services costs

—

Loan processing

117

113

231

251

Foreclosed assets

(2)

Other operating costs

772

779

1,078

1,551

2,006

Professional services costs

—

Legal and accounting services

572

557

419

1,129

1,070

Director's costs

337

356

309

692

619

Deferred directors' fees cost/(benefit)

1,039

(572)

948

467

504

Other professional services

694

698

711

1,394

1,417

Stationery and supply costs

100

132

197

233

Sundry and tellers

148

130

284

278

489

Total noninterest expense

23,510

21,824

23,767

45,334

46,184

As a % of average interest-earning assets (1)

2.85%

2.64%

2.81%

2.74%

2.78%

Efficiency ratio (tax-equivalent) (2)(3)

58.91%

56.45%

59.43%

57.70%

60.00%

(1) Annualized

(2) Computed on a tax equivalent basis utilizing a federal income tax rate of 21%.

(3) See reconciliation of non-GAAP financial measures to the corresponding GAAP measurement in "Non-GAAP Financial Measures".

Sierra Bancorp Financial Results

July 27, 2026

Page 18

AVERAGE BALANCES AND RATES

(Dollars in Thousands, Unaudited)

For the quarter ended

6/30/2026

3/31/2026

6/30/2025

Average Balance (1)

Income/ Expense

Yield/ Rate (2)

Average Balance (1)

Income/ Expense

Yield/ Rate (2)

Average Balance (1)

Income/ Expense

Yield/ Rate (2)

Assets

Investments:

Interest-earning due from banks

$ 11,265

$ 112

3.99%

$ 23,411

$ 211

3.66%

$ 18,122

$ 211

4.67%

Taxable

695,359

7,965

4.59%

709,417

7,993

4.57%

770,413

9,295

4.84%

Non-taxable

207,513

1,678

4.11%

203,801

1,624

4.09%

196,364

1,577

4.08%

Total investments

914,137

9,755

4.48%

936,629

9,828

4.44%

984,899

11,083

4.68%

Loans: (3)

Real estate

1,803,504

22,250

4.95%

1,822,696

22,391

4.98%

1,849,725

22,589

4.90%

Agricultural production

58,703

723

4.94%

62,795

724

4.68%

72,933

915

5.03%

Commercial

106,435

1,531

5.77%

111,734

1,597

5.80%

109,407

1,612

5.91%

Consumer

2,445

8.86%

2,601

8.58%

3,214

7.99%

Mortgage warehouse facilities

422,257

6,608

6.28%

414,272

6,589

6.45%

368,592

6,440

7.01%

Other

2,393

3.02%

2,146

2.27%

2,351

2.39%

Total loans

2,395,737

31,184

5.22%

2,416,244

31,368

5.26%

2,406,222

31,634

5.27%

Total interest-earning assets (4)

3,309,874

40,939

5.02%

3,352,873

41,196

5.04%

3,391,121

42,717

5.10%

Other earning assets

17,935

17,069

17,062

Non-earning assets

318,610

283,935

280,045

Total assets

$ 3,646,419

$ 3,653,877

$ 3,688,228

Liabilities and shareholders' equity

Interest-bearing deposits:

Demand deposits

$ 237,488

$ 1,263

2.13%

$ 224,131

$ 1,104

2.00%

$ 224,649

$ 1,420

2.54%

NOW

361,845

0.11%

356,648

0.09%

375,695

140

0.15%

Savings accounts

366,475

111

0.12%

363,512

105

0.12%

354,798

0.11%

Money market

171,583

772

1.80%

154,469

616

1.62%

146,193

608

1.67%

Time deposits

454,295

3,216

2.84%

459,482

3,203

2.83%

516,970

4,283

3.32%

Brokered Deposits

228,210

2,402

4.22%

319,199

3,219

4.09%

244,401

2,778

4.56%

Total interest bearing deposits

1,819,896

7,861

1.73%

1,877,441

8,322

1.80%

1,862,706

9,326

2.01%

Borrowed funds:

Federal funds purchased

125,005

1,171

3.76%

42,782

395

3.74%

46,214

517

4.49%

Repurchase agreements

125,120

0.14%

128,430

0.20%

124,636

0.25%

Short term borrowings

3,606

3.78%

3,988

3.86%

24,716

277

4.50%

Long term FHLB Advances

40,714

389

3.83%

77,778

749

3.91%

80,000

780

3.91%

Long term debt

49,514

430

3.48%

49,492

431

3.53%

49,424

430

3.49%

Subordinated debentures

36,078

597

6.64%

36,034

590

6.64%

35,899

655

7.32%

Total borrowed funds

380,037

2,666

2.81%

338,504

2,266

2.71%

360,889

2,738

3.04%

Total interest-bearing liabilities

2,199,933

10,527

1.92%

2,215,945

10,588

1.94%

2,223,595

12,064

2.18%

Demand deposits - noninterest bearing

1,018,453

1,005,769

1,020,374

Other liabilities

63,077

66,346

91,191

Shareholders' equity

364,956

365,817

353,068

Total liabilities and shareholders' equity

$ 3,646,419

$ 3,653,877

$ 3,688,228

Interest income/interest earning assets

5.02%

5.04%

5.10%

Interest expense/interest earning assets

1.28%

1.42%

Net interest income and margin (5)

$ 30,412

3.74%

$ 30,608

3.75%

$ 30,653

3.68%

(1) Average balances are obtained from the best available daily or monthly data and are net of deferred fees and related direct costs.

(2) Yields and net interest margin have been computed on a tax equivalent basis utilizing a 21% effective federal tax rate.

(3) Loans are gross of the allowance for possible loan losses. Loan fees have been included in the calculation of interest income. Net loan fees and loan acquisition FMV amortization were $(0.3) million and $(0.4) million for the quarters ended June 30, 2026 and 2025, respectively, and $(0.3) million for the quarter ended March 31, 2026.

(4) Non-accrual loans have been included in total loans for purposes of computing total earning assets.

(5) Net interest margin represents net interest income as a percentage of average interest-earning assets.

Sierra Bancorp Financial Results

July 27, 2026

Page 19

AVERAGE BALANCES AND RATES

(Dollars in Thousands, Unaudited)

For the six months ended

6/30/2026

6/30/2025

Average

Balance (1)

Income/

Expense

Yield/ Rate (2)

Average

Balance (1)

Income/

Expense

Yield/ Rate (2)

Assets

Investments:

Interest-earning due from banks

17,305

323

3.76%

36,281

799

4.44%

Taxable

702,349

15,957

4.58%

752,903

18,435

4.94%

Non-taxable

205,667

3,302

4.10%

196,957

3,153

4.09%

Total investments

925,321

19,582

4.46%

986,141

22,387

4.75%

Loans:(3)

Real estate

1,813,047

44,642

4.97%

1,837,146

44,576

4.89%

Agricultural

60,738

1,447

4.80%

74,615

1,945

5.26%

Commercial

109,070

3,128

5.78%

106,296

3,127

5.93%

Consumer

2,522

109

8.72%

3,250

133

8.25%

Mortgage warehouse facilities

418,286

13,197

6.36%

341,075

11,970

7.08%

Other

2,270

2.67%

2,356

2.74%

Total loans

2,405,933

62,553

5.24%

2,364,738

61,783

5.27%

Total interest-earning assets (4)

3,331,254

82,135

5.03%

3,350,879

84,170

5.12%

Other earning assets

17,504

17,062

Non-earning assets

301,369

277,002

Total assets

3,650,127

3,644,943

Liabilities and shareholders' equity

Interest-bearing deposits:

Demand deposits

230,847

2,366

2.07%

216,258

2,712

2.53%

NOW

359,261

173

0.10%

377,009

259

0.14%

Savings accounts

365,002

216

0.12%

353,727

187

0.11%

Money market

163,073

1,387

1.72%

145,646

1,180

1.63%

Time deposits

456,874

6,421

2.83%

524,095

8,694

3.35%

Brokered deposits

273,453

5,621

4.15%

244,480

5,665

4.67%

Total interest-bearing deposits

1,848,510

16,184

1.77%

1,861,215

18,697

2.03%

Borrowed funds:

Federal funds purchased

84,121

1,565

3.75%

23,325

519

4.49%

Repurchase agreements

126,765

107

0.17%

118,533

148

0.25%

Short term borrowings

3,796

3.82%

14,437

323

4.51%

Long term FHLB Advances

59,144

1,138

3.88%

80,000

1,550

3.91%

Long-term debt

49,503

861

3.51%

49,413

860

3.51%

Subordinated debentures

36,056

1,188

6.64%

35,877

1,308

7.35%

Total borrowed funds

359,385

4,931

2.77%

321,585

4,708

2.95%

Total interest-bearing liabilities

2,207,895

21,115

1.93%

2,182,800

23,405

2.16%

Demand deposits - noninterest-bearing

1,012,146

1,011,895

Other liabilities

64,702

96,967

Shareholders' equity

365,384

353,281

Total liabilities and shareholders' equity

3,650,127

3,644,943

Interest income/interest-earning assets

5.03%

5.12%

Interest expense/interest-earning assets

1.28%

1.41%

Net interest income and margin(5)

61,020

3.75%

60,765

3.71%

(1) Average balances are obtained from the best available daily or monthly data and are net of deferred fees and related direct costs.

(2) Yields and net interest margin have been computed on a tax equivalent basis utilizing a 21% effective federal tax rate.

(3) Loans are gross of the allowance for possible loan losses. Loan fees have been included in the calculation of interest income. Net loan fees and loan acquisition FMV amortization were $(0.6) million and $(0.7) million for the six months ended June 30, 2026, and 2025, respectively.

(4) Non-accrual loans have been included in total loans for purposes of computing total earning assets.

(5) Net interest margin represents net interest income as a percentage of average interest-earning assets.

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