SIERRA BANCORP (NASDAQ:BSRR) Reports Mixed Q3 2025 Results with EPS Miss and In-Line Revenue

SIERRA BANCORP (NASDAQ:BSRR) reported its financial results for the third quarter of 2025, presenting a mixed performance against analyst expectations. The company's earnings per share fell short of estimates, while its revenue was largely in line with forecasts, leading to a muted market reaction in pre-market trading.

Earnings and Revenue Versus Estimates

The bank holding company reported diluted earnings per share of $0.72 for the quarter, which came in below the analyst consensus estimate of $0.80. This represents an earnings miss of approximately 10%. In contrast, the company's reported revenue of $40.03 million was nearly identical to the estimated $40.36 million, showing a variance of less than 1%.

• Reported EPS: $0.72
• Estimated EPS: $0.80
• Reported Revenue: $40.03 million
• Estimated Revenue: $40.36 million

Market Reaction and Price Action

The market's initial response to the earnings release has been cautiously positive. In pre-market trading, the stock was up approximately 0.51%. This modest gain suggests that investors may be balancing the earnings miss against the revenue performance and other positive fundamentals highlighted in the report. The stock's performance over recent weeks has been volatile, showing a slight gain over the last week but declines over the past two weeks and month.

Key Financial and Operational Highlights

Beyond the headline earnings and revenue figures, the earnings release detailed several important developments for the quarter:

Recent Performance

• Net income for Q3 2025 was $9.7 million, a decrease of 9% compared to the previous quarter.
• Pre-tax, pre-provision income, however, increased by 4% to $16.4 million, indicating stronger underlying operational performance.
• The net interest margin improved to 3.78%, up from 3.68% in the prior quarter, driven by higher loan yields and a lower cost of funds.

Balance Sheet and Credit Quality

• The loan portfolio saw significant growth, with gross loans increasing by $57.2 million during the quarter to reach $2.5 billion.
• Asset quality showed improvement, with the ratio of nonperforming loans to total gross loans declining to 0.56% from 0.62% in the prior quarter.
• The provision for credit losses was $3.7 million, a substantial increase primarily due to a $3.5 million individual reserve established for a single agricultural production loan.

Capital and Shareholder Returns

• The company continued its capital return program, repurchasing 190,342 shares during the quarter at an average price of $30.55.
• Tangible book value per share increased by 3% during the quarter to $24.66.
• A dividend of $0.25 per share was declared, marking the company's 107th consecutive quarterly dividend.

Outlook and Analyst Estimates

The press release did not provide a specific quantitative financial outlook for the coming quarters. President and CEO Kevin McPhaill expressed optimism, stating the company looks "forward to 2026 and beyond" based on its team and balance sheet strength. For context, analysts are currently estimating revenue of $40.52 million and EPS of $0.81 for the fourth quarter of 2025.

For a detailed look at historical earnings, future estimates, and analyst projections for Sierra Bancorp, you can review the data here.

Disclaimer: This article is for informational purposes only and is not intended as investment advice. All data is provided without warranty of any kind. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.