Sierra Bancorp Reports Improved Financial Results for Q3 and First Nine Months of 2024
Sierra Bancorp, the parent company of Bank of the Sierra, has released its unaudited financial results for the third quarter and the first nine months of 2024. The company reported a consolidated net income of $10.6 million for Q3 2024, marking a 3% increase from the previous quarter. For the first nine months of 2024, net income rose to $30.2 million, a 6% increase compared to the same period in 2023.
Financial Highlights
Key financial metrics for the reporting period include:
- Earnings Per Share (EPS): Diluted EPS for Q3 2024 was $0.74, up from $0.71 in the previous quarter. For the first nine months, diluted EPS increased to $2.09 from $1.93 in 2023.
- Net Interest Income: Improved by $0.6 million, or 2%, compared to the prior quarter, and increased by $5.1 million, or 6%, year-over-year.
- Net Interest Margin: Maintained a strong net interest margin of 3.66% for Q3 2024, slightly down from 3.69% in the previous quarter.
- Return on Average Assets (ROA): Consistent at 1.14% for Q3 2024.
- Return on Average Equity (ROE): Steady at 11.95% for Q3 2024.
Business and Operational Highlights
Sierra Bancorp demonstrated solid asset quality and growth in loans and deposits:
- Asset Quality: The ratio of total nonperforming loans to total gross loans was 0.45%, with no foreclosed assets as of September 30, 2024.
- Loan Growth: Loans grew by $86.1 million, or 15% annualized, during the quarter, reaching $2.3 billion.
- Deposit Growth: Total deposits increased by $19.7 million, or 3% annualized, during the quarter, totaling $3.0 billion.
Strategic Initiatives and Corporate Developments
The company undertook several strategic initiatives:
- Share Repurchase: Repurchased 48,904 shares of common stock during the quarter.
- Dividend Declaration: Declared a dividend of $0.24 per share, payable on November 12, 2024, marking the 103rd consecutive quarterly dividend.
- Capital and Liquidity: Increased tangible book value per share by 3% to $22.93 and maintained a strong regulatory Community Bank Leverage Ratio of 11.70%.
Management's Perspective
Kevin McPhaill, CEO and President, expressed satisfaction with the results, stating, "We are happy to share our third quarter results, which demonstrate our entire team’s commitment to providing fantastic service to our customers and communities. While the current interest rate environment still presents the banking industry with unique challenges, our teams continue to improve profitability and grow loans and deposits."
Future Outlook
The company remains optimistic about its future, focusing on maintaining strong financial performance and continuing to serve its customers and communities effectively.
SEC Filing: SIERRA BANCORP [ BSRR ] - 8-K - Oct. 21, 2024