Sierra Bancorp Beats Q3 2026 Estimates With Record Profit
As seen on the 24/7 Wall St. homepage on October 26, 2026.
Record quarterly profit at this $541 million California lender came largely from credit: a $2.0 million provision benefit replaced a $3.7 million expense a year ago after a fully reserved lumber loan was resolved. Management paired it with a 111th straight quarterly dividend of $0.27 and a new one-million-share buyback.
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Sierra Bancorp posted $1.18 in diluted earnings per share for Q3 2026, clearing the consensus estimate, with revenue also above expectations. The company described the quarter as a record-breaking profit period.
The biggest driver of the earnings beat was a sharp swing in credit loss provisions, as a $2.0 million provision benefit replaced a prior-year expense after a fully reserved lumber-related agricultural loan was resolved. The bank also recovered previously unrecognized interest income once a separate nonaccrual agricultural loan was paid in full.
Net interest margin expanded 13 basis points year-over-year to 3.91% while the cost of deposits declined. Core deposits grew 6% from year-end 2025, and the quarter delivered the highest gross loan production since 2020, led by growth in commercial real estate balances.
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Total revenue fell 19.3% from a year ago, period-end mortgage warehouse balances dropped from year-end 2025, and the investment portfolio's unrealized loss position widened due to interest rate changes. Five large relationship payoffs drove loan paydowns that tempered net loan growth.
Management paired the results with the 111th consecutive quarterly dividend of $0.27 per share and authorized a new one-million-share repurchase program, following buybacks completed in the first nine months of 2026. A lower effective tax rate, partly aided by a new renewable energy tax equity investment, provided a modest additional lift to the bottom line.
Mentioned: BSRR