# EDGAR Filing Document

**Accession Number:** 0001130144
**File Stem:** 0001558370-25-009640
**Filing Date:** 2025-7
**Character Count:** 68566
**Document Hash:** 70f0c69353fc9f1f83f48263bb676f02
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001558370-25-009640.hdr.sgml**: 20250728

**ACCESSION NUMBER**: 0001558370-25-009640

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 14

**CONFORMED PERIOD OF REPORT**: 20250728

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20250728

**DATE AS OF CHANGE**: 20250728

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** SIERRA BANCORP
- **CENTRAL INDEX KEY:** 0001130144
- **STANDARD INDUSTRIAL CLASSIFICATION:** STATE COMMERCIAL BANKS [6022]
- **ORGANIZATION NAME:** 02 Finance
- **EIN:** 330937517
- **STATE OF INCORPORATION:** CA
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-33063
- **FILM NUMBER:** 251153126

**BUSINESS ADDRESS:**
- **STREET 1:** 86 NORTH MAIN STREET
- **CITY:** PORTERVILLE
- **STATE:** CA
- **ZIP:** 93257
- **BUSINESS PHONE:** 5597824900

**MAIL ADDRESS:**
- **STREET 1:** 86 NORTH MAIN STREET
- **CITY:** PORTERVILLE
- **STATE:** CA
- **ZIP:** 93257

?xml version='1.0' encoding='ASCII'?

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**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 28, 2025**

## 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)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (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:

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| | | |
|:---|:---|:---|
| **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. ☐

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**ITEM 2.02** **RESULTS OF OPERATIONS AND FINANCIAL CONDITION**

On July 28, 2025, Sierra Bancorp issued a press release announcing its unaudited consolidated financial results for the three- and six-month periods ended June 30, 2025. 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 9.01** **FINANCIAL 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**

---

| | | |
|:---|:---|:---|
| 19<br>|  |  |
| **Exhibit No.** |  | **Description** |
| 99.1 |  | [Press release issued by Sierra Bancorp dated July 28, 2025](bsrr-20250728xex99d1.htm) |
| 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.

---

| | |
|:---|:---|
|  | &nbsp;&nbsp;<br>Executive Vice President &<br>Chief Financial Officer<br>|
| &nbsp;&nbsp;<br>Dated: July 28, 2025 | &nbsp;&nbsp;SIERRA BANCORP<br>By: */s/ Christopher G. Treece* <br>Christopher G. Treece<br>Executive Vice President &<br>Chief Financial Officer |

---

## Exhibit 99.1

**Exhibit 99.1**

![Graphic](bsrr-20250728xex99d1001.jpg)

#### FOR IMMEDIATE RELEASE

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;Date: | July 28, 2025 |
| &nbsp;&nbsp;&nbsp;&nbsp;Contact: | Kevin McPhaill, President/CEO |
| &nbsp;&nbsp;&nbsp;&nbsp;Phone: | (559) 782-4900 or (888) 454-BANK |
| &nbsp;&nbsp;&nbsp;&nbsp;Website Address: | www.sierrabancorp.com |

---

#### SIERRA BANCORP REPORTS IMPROVED FINANCIAL RESULTS FOR SECOND QUARTER AND FIRST SIX MONTHS OF 2025
**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, 2025. Sierra Bancorp reported consolidated net income of $10.6 million, or $0.78 per diluted share, for the second quarter of 2025, compared to $10.3 million, or $0.71 per diluted share, in the second quarter of 2024. On a linked quarter (three months ended March 31, 2025) basis, the Company reported an increase of $1.5 million, or 17%, in net income.

#### Highlights for the second quarter of 2025 (unless otherwise stated):
● **Improved Earnings and Key Ratios** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Increased Diluted Earnings per Share by $0.13, or 19%, from the prior linked quarter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Higher Return on Average Assets of 1.16%, as compared to 1.02% in the prior linked quarter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Improved Return on Average Equity to 12.08%, as compared to 10.44% in the prior linked quarter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Favorable change of Efficiency Ratio <sup>(1)</sup> to 59.43%, as compared to 60.62% to the prior linked quarter.

● **Strong Balance Sheet Growth** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Overall loan growth of $127.9 million, or 22% annualized, to $2.43 billion during the quarter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Mortgage warehouse utilization increased $118.7 million during the quarter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Non-brokered deposits increased by $24.6 million, or 4% annualized, during the quarter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Noninterest-bearing deposits of $1.1 billion at June 30, 2025, represent 36% of total deposits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Uninsured deposits, exclusive of public funds, are approximately 26% of total deposit balances.

● **Solid Capital and Liquidity** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Increased Tangible Book Value <sup>(1)</sup> per share by 2%, to $23.98 per share during the quarter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Repurchased 135,641 shares of stock during the quarter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Declared dividend of $0.25 per share, payable on August 14, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Strong regulatory Community Bank Leverage Ratio of 11.75%, at June 30, 2025, for our subsidiary Bank.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Tangible Common Equity Ratio <sup>(1)</sup> of 8.77%, at June 30, 2025, on a consolidated basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Overall primary and secondary liquidity sources of $2.3 billion at June 30, 2025.

*_______________________________*

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

*"If you want to go fast, go alone. If you want to go far, go together."* – African proverb

"Our team continues to provide the best banking service to our customers and communities, even as we face uncertainty and potential economic challenges," stated Kevin McPhaill, CEO and President. "The Bank's second quarter results reflect our team's efforts with strong loan and deposit growth. We are proud of our bankers, and we will remain diligent, committed, and conscientious as we work to make each of our communities stronger." concluded Mr. McPhaill.

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Sierra Bancorp Financial Results

July 28, 2025

For the first six months of 2025, the Company recognized net income of $19.7 million, or $1.43 per diluted share, as compared to $19.6 million, or $1.35 per diluted share, for the same period in 2024. The Company's improved financial performance metrics for the first half of 2025 include a net interest margin of 3.71% and an efficiency ratio of 60.02%, as compared to a net interest margin of 3.66% and efficiency ratio of 62.51% for the same period in 2024.

**Quarterly Income Changes (comparisons to the second quarter of 2024)**

● Net income for the second quarter of 2025 increased $0.4 million, or 4%, to $10.6 million. Net interest income improved $0.5 million and noninterest income increased $0.9 million, or 12%. These favorable changes were partially offset by an increase in the provision for credit losses of $0.3 million, and an increase in noninterest expense of $1.1 million, or 5%.

● Included in the above $0.9 million increase in noninterest income and $1.1 million increase in noninterest expense was an $0.8 million increase in bank-owned life insurance (BOLI) designed to offset changes to deferred compensation expense. Deferred compensation expense increased $0.7 million in the second quarter of 2025 as compared to the same period in 2024 primarily due to increases in the value of participants accounts as a result of market conditions.

**Linked Quarter Income Changes (comparisons to the three months ended March 31, 2025)**

● Net income improved by $1.5 million, or 17%, driven mostly by a $0.5 million increase in net interest income, a $0.9 million decrease in the provision for credit losses, and a $1.9 million, or 29%, increase in noninterest income. These three favorable changes were partially offset by a $1.4 million, or 6%, increase in noninterest expense.

● Included in the above $1.9 million increase in noninterest income and $1.4 million increase in noninterest expense was an $1.5 million increase in bank-owned life insurance (BOLI) designed to offset changes to deferred compensation expense. Deferred compensation expense increased $1.5 million in the second quarter of 2025 as compared to the prior linked quarter primarily due to increases in the value of participants accounts as a result of market conditions.

● Net interest income increased by $0.5 million, due to an $80.9 million, or 2%, increase in average interest earnings assets.

● Other changes to noninterest income outside of the abovementioned change in BOLI associated with deferred compensation include a $0.3 million increase in service charge income, due partially to an increase in analysis fees, as well as a $0.2 million increase in death benefits from life insurance.

**Year-to-Date Income Changes (comparisons to the first six months of 2024)**

● There was a $1.9 million increase in net interest income due mostly to a five basis point increase in net interest margin, as well as a favorable decrease in the tax rate which decreased tax expense by $0.5 million. These favorable increases were mostly offset by higher provision for credit losses.

● There were offsetting differences to noninterest income and noninterest expense of $1.0 million.

● Noninterest income decreased $1.0 million, or 6%. There was an $0.8 million net favorable impact from the sale/leaseback and strategic balance sheet restructuring in the first half of 2024 with no like transaction in the first half of 2025. This was fully offset by a $0.8 million increase in death benefits from life insurance. The remaining variance in both noninterest income and noninterest expense is primarily due to offsetting changes in BOLI related to deferred compensation expense, and the related deferred compensation expense itself.

**Balance Sheet Changes (comparisons to December 31, 2024)** 

● Total assets increased 4%, or $156.0 million, to $3.8 billion during the first six months of 2025.

● Gross loans increased $103.3 million, or 4%, due to a $75.5 million increase in mortgage warehouse loans, a $34.1 million increase in commercial real estate loans, a $6.3 million increase in construction loans and an $8.4 million increase in other commercial loans, partially offset by declines in other categories. Specifically, there was a $11.1 million decrease in residential real estate loans, a $9.6 million decrease in farmland loans, and a $0.4 million reduction in consumer loans. In addition to strong favorable growth in mortgage warehouse, new credit

------

Sierra Bancorp Financial Results

July 28, 2025

extended, including new fundings on non-mortgage warehouse lines of credit, was $114.5 million year-to-date in 2025 versus $75.3 million year-to-date in 2024.

● Deposits increased by $82.8 million, or 3%. The growth in deposits came primarily from noninterest bearing demand deposits. There was also a $15.0 million increase in brokered deposits. Overall customer deposits increased $67.8 million.

● Other interest-bearing liabilities increased $92.0 million; $74.4 million from an increase in overnight borrowings, and $17.6 million from increased customer repurchase balances. Overnight borrowings are used to fund mortgage warehouse line advances.

Other financial highlights are reflected in the following table.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **FINANCIAL HIGHLIGHTS** |  |  |  |  |  |
| (Dollars in Thousands, Except Per Share Data, Unaudited) |  |  |  |  |  |
|  | **As of or for the** | **As of or for the** | **As of or for the** | **As of or for the** | **As of or for the** |
|  | **three months ended** | **three months ended** | **three months ended** | **six months ended**  | **six months ended**  |
|  | **6/30/2025** | **3/31/2025** | **6/30/2024** | **6/30/2025** | **6/30/2024** |
| Net income | $10633 | $9101 | $10263 | $19734 | $19593 |
| Diluted earnings per share | $0.78 | $0.65 | $0.71 | $1.43 | $1.35 |
| Return on average assets | 1.16% | 1.02% | 1.14% | 1.09% | 1.10% |
| Return on average equity | 12.08% | 10.44% | 11.95% | 11.26% | 11.52% |
| Net interest margin (tax-equivalent) <sup>(1)</sup> | 3.68% | 3.74% | 3.69% | 3.71% | 3.66% |
| Yield on average loans | 5.27% | 5.26% | 5.16% | 5.27% | 5.03% |
| Yield on investments | 4.68% | 4.81% | 5.58% | 4.75% | 5.59% |
| Cost of average total deposits | 1.30% | 1.33% | 1.53% | 1.31% | 1.46% |
| Cost of funds | 1.49% | 1.46% | 1.67% | 1.48% | 1.62% |
| Efficiency ratio (tax-equivalent) <sup>(1) (2)</sup> | 59.43% | 60.62% | 59.15% | 60.00% | 62.45% |
| Total assets | $3770302 | $3606183 | $3681202 | $3770302 | $3681202 |
| Loans net of deferred fees | $2434609 | $2306663 | $2234816 | $2434609 | $2234816 |
| Noninterest demand deposits | $1065742 | $1037990 | $986927 | $1065742 | $986927 |
| Total deposits | $2974469 | $2849884 | $2942410 | $2974469 | $2942410 |
| Noninterest-bearing deposits over total deposits | 35.8% | 36.4% | 33.5% | 35.8% | 33.5% |
| Shareholders' equity / total assets | 9.43% | 9.75% | 9.51% | 9.43% | 9.51% |
| Tangible common equity ratio <sup>(2)</sup> | 8.77% | 9.05% | 8.81% | 8.77% | 8.81% |
| Book value per share | $26.00 | $25.45 | $24.19 | $26.00 | $24.19 |
| Tangible book value per share <sup>(2)</sup> | $23.98 | $23.44 | $22.24 | $23.98 | $22.24 |
| Community bank leverage ratio (subsidiary bank) | 11.75% | 12.11% | 11.57% | 11.75% | 11.57% |
| Tangible common equity ratio (subsidiary bank) <sup>(2)</sup> | 10.77% | 11.32% | 10.60% | 10.77% | 10.60% |

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

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

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Sierra Bancorp Financial Results

July 28, 2025

**INCOME STATEMENT HIGHLIGHTS**

**Net Interest Income**

Net interest income was $30.7 million for the second quarter of 2025, a $0.5 million increase, or 2%, over the second quarter of 2024. This increase in net interest income for the quarterly comparison was due primarily to a 23 basis point decrease in interest expense on interest bearing liabilities.

For the second quarter of 2025, although the balance of average interest-earning assets was $58.5 million higher, the yield was 20 basis points lower as compared to the same period in 2024. The primary reason for the decrease in yield came from the variable rate investments, in the form of collateralized loan obligations ("CLO"), that had rate resets due to the 100 basis decline in the prime rate in late 2024, and CLO prepayments where the funds could not be reinvested at the original spread or a similar rate. There was a 23 basis point decrease in the cost of interest-bearing liabilities for the same period, which had a greater impact than the lower yields on the interest-earning asset side of the balance sheet.

Net interest income for the comparative year-to-date periods increased $1.9 million. As with the quarterly comparison, the decrease in the cost of interest-bearing liabilities was greater than the decrease in yield on interest-bearing assets. There was a $61.7 million, or 2%, increase in average interest-earning asset balances yielding 10 basis points lower for the same period, while average interest-bearing liability balances increased $1.7 million, yielding 20 basis points lower for the same period. The favorable net impact of the mix and rate change was a five basis point increase in our net interest margin for the six months ending June 30, 2025, as compared to the same period in 2024.

At June 30, 2025, approximately 31% of the Bank's loan portfolio is scheduled to mature or reprice within twelve months and an additional 10% could reprice within three years. In addition, approximately $359.7 million, or 37%, of the securities portfolio consists of floating rate bonds that reprice quarterly.

Interest expense was $12.1 million for the second quarter of 2025, a decrease of $1.3 million, relative to the second quarter of 2024. For the first six months of 2025, compared to the first six months of 2024, interest expense decreased $2.2 million to $23.4 million. The decrease in interest expense for the quarterly comparison is primarily attributable to a $49.8 million average volume decrease in interest-bearing deposit balances and a 31 basis point decrease in interest rates paid on those balances. This positive variance was partially offset by $45.6 million in higher average balances of borrowed funds, combined with an 11 basis point increase in cost. There was a favorable shift in the deposit mix in the second quarter of 2025 as compared to the same period in 2024 with transaction accounts increasing $112.6 million while higher cost time and brokered deposits decreased. Higher cost customer time deposits decreased by $46.6 million, and wholesale brokered deposits decreased by $63.6 million. There was also a $10.5 million decrease in the average balance of savings and money market accounts. For the first half of 2025, as compared to the same period in 2024, customer time deposits and wholesale brokered deposits decreased $38.6 million, and $12.1 million respectively, while borrowed funds increased $5.5 million. Other deposits increased $74.2 million for the year-to-date comparison.

Our net interest margin was 3.68% for the second quarter of 2025, as compared to 3.74% for the linked quarter and 3.69% for the second quarter of 2024. The yield of interest-earning assets decreased three basis points for the second quarter of 2025 as compared to the linked quarter, while the cost of interest-bearing liabilities increased three basis points for the same period of comparison. The average balance of interest-earning assets increased $80.9 million for the linked quarter, while the increase in interest-bearing liabilities was $82.0 million for the same period. Although the basis point change in interest-earning assets and interest-bearing liabilities was the same, the decrease had a larger impact on interest-earning assets since those balances are $1.2 billion higher, thus causing a six basis point negative variance on the net interest margin for the linked quarter comparison.

**Provision for Credit Losses**

The provision for credit losses on loans was $1.2 million for the second quarter of 2025, as compared to a $0.9 million provision for credit losses related to loans in the second quarter of 2024. There was a year-to-date provision for credit losses on loans of $3.2 million in 2025, as compared to $1.0 million for the same period in 2024. The Company's $0.3

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Sierra Bancorp Financial Results

July 28, 2025

million increase in the provision for credit losses on loans in the second quarter of 2025, as compared to the second quarter of 2024, and the $2.2 million year-to-date increase in the provision for credit losses on loans, compared to the same period in 2024, was primarily due to the impact of $6.3 million in net charge-offs in the first six months of 2025, with $2.9 million in net charge-offs for the first six months of 2024. The increase in net charge-offs in the second quarter of 2025 was primarily related to the $5.3 million prior allowance on an individually evaluated agricultural production loan.

There was a benefit for credit losses on unfunded commitments for $0.01 million in the second quarter of 2025, and a $0.1 million provision for the first six months of 2025, as compared to a $0.02 million benefit for credit losses in the second quarter of 2024 and a $0.01 million provision for credit losses in the first six months of 2024.

The Company did not record a provision for credit losses on available-for-sale debt securities. Although there were debt securities in an unrealized loss position, the declines in market values were primarily attributable to changes in interest rates and volatility in the financial markets and not a result of an expected credit loss.

**Noninterest Income**

Total noninterest income increased by $0.9 million, or 12%, for the quarter ended June 30, 2025, as compared to the same quarter in 2024 and decreased $1.0 million, or 6%, for the comparable year-to-date periods. The quarterly comparison increase primarily resulted from a $0.7 million positive variance in the value of separate account corporate-owned life insurance assets tied to non-qualified deferred compensation plans, and a $0.2 million increase in death benefit on life insurance proceeds, partially offset by lower service charges on deposit accounts. The year-to-date decrease reflects the net impact of the loss on the sale of investment securities in 2024, offset by the gain on the sale/leaseback of bank owned branch locations, with no like transactions in 2025. There was also an unfavorable variance of $0.8 million associated with the decrease in value of separate account corporate-owned life insurance assets tied to non-qualified deferred compensation plans, and a decrease of $0.5 million in service charges on deposits. These unfavorable variances to the year-to-date comparisons were partially offset by a $0.8 million in additional life insurance death benefits.

**Noninterest Expense**

Total noninterest expense increased by $1.1 million, or 5%, in the second quarter of 2025, relative to the second quarter of 2024, but favorably declined by $1.0 million, or 2%, in the first six months of 2025, as compared to the first six months of 2024.

Salaries and Benefits were $0.5 million, or 4%, higher in the second quarter of 2025, as compared to the second quarter of 2024, and were $0.3 million, or 1%, higher for the first six months of 2025, compared to the same period in 2024. The reason for the increase in the quarterly comparison is due to increased officer bonus costs and group health insurance costs. The increase in the year-over-year comparison is primarily due to the same reasons as with the quarterly comparison but also included an overall increase in officer salary costs and 401(K) company contributions, partially offset by an increase in deferred salary loan costs, due to the hiring of lending and lending support officers. Overall full-time equivalent employees were 494 at June 30, 2025, as compared to 485 at December 31, 2024, and 501 at June 30, 2024. Included in full-time equivalent employees, at June 30, 2025, were 10 summer interns and temporary employees.

Occupancy expenses were mostly unchanged for the second quarter, and the first half of 2025 as compared to the same periods in 2024.

Other noninterest expense increased $0.6 million, or 8%, for the second quarter 2025, as compared to the second quarter in 2024, and decreased $1.3 million, or 8%, for the first half of 2025, as compared to the same period in 2024. Deferred compensation expense for directors increased $0.7 million for the quarterly comparison but decreased $0.7 million for the year-to-date comparison, which is linked to the changes in life insurance income. For the year-to-date comparison there were also decreases in marketing expenses.

The Company's effective tax rate was 25.3% of pre-tax income in the second quarter of 2025, relative to 27.8% in the second quarter of 2024, and 25.5% of pre-tax income for the first half of 2025 relative to 27.1% for the same period in

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Sierra Bancorp Financial Results

July 28, 2025

2024. The decrease in effective tax rate for both the quarterly and year-to-date comparisons is due to the tax credits and tax-exempt income representing a larger percentage of total taxable income.

**Balance Sheet Summary**

The $156.0 million, or 4%, increase in total assets during the first half of 2025, is primarily a result of a $103.3 million increase in gross loan balances, a $5.8 million increase in investment securities, and a $29.3 million increase in cash on hand.

The increase in gross loan balances as compared to December 31, 2024, was primarily a result of a favorable change of $75.5 million in mortgage warehouse balances, organic increases of $34.1 million in commercial real estate loans, $6.3 million in construction loan balances, and $8.4 million in other commercial loans. Counterbalancing these positive variances were loan paydowns and maturities resulting in net declines in certain categories even with higher loan production. In particular, there was an $11.1 million net decrease in residential real estate loans, and a $9.6 million decrease in farmland loans.

As indicated in the loan rollforward table below, new credit extended for the second quarter of 2025 decreased $18.2 million over the linked quarter to $48.1 million and increased $7.8 million over the same period in 2024. We also had $77.2 million in loan paydowns and maturities, a $9.5 million decline in line of credit utilization, offset by an increase of $75.5 million in mortgage warehouse line utilization for the first half of 2025.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **LOAN ROLLFORWARD** |  |  |  |  |  |
| (Dollars in Thousands, Unaudited) |  |  |  |  |  |
|  | **For the three months ended:** | **For the three months ended:** | **For the three months ended:** | **For the six months ended:**  | **For the six months ended:**  |
|  | **June 30, 2025** | **March 31, 2025** | **June 30, 2024** | **June 30, 2025** | **June 30, 2024** |
| Gross loans beginning balance | $2306762 | $2331341 | $2156864 | $2331341 | $2090075 |
| New credit extended | 48147 | 66370 | 40313 | 114517 | 75279 |
| Changes in line of credit utilization <sup>(1)</sup> | 2587 | (12129) | (10412) | (9542) | (35340) |
| Change in mortgage warehouse | 118665 | (43169) | 70498 | 75496 | 158060 |
| Pay-downs, maturities, charge-offs and amortization | (41556) | (35651) | (22735) | (77207) | (53546) |
| Gross loans ending balance | $2434605 | $2306762 | $2234528 | 2434605 | 2234528 |

---

------

&nbsp;&nbsp;&nbsp;&nbsp;(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.

Unused commitments, excluding mortgage warehouse and overdraft lines, were $266.0 million at June 30, 2025, compared to $256.9 million at December 31, 2024. Total line utilization, excluding mortgage warehouse and overdraft lines, was 57% at both June 30, 2025, and December 31, 2024. Mortgage warehouse utilization increased to 55% at June 30, 2025, as compared to 51% at December 31, 2024. Total mortgage warehouse commitments increased by $38.5 million and $98.5 million for the three-and-six-month periods ending June 30, 2025, respectively.

Deposit balances reflect growth of $82.8 million, or 3%, during the first six months of 2025. Core non-maturity deposits increased by $86.8 million, or 4%, while customer time deposits decreased by $19.0 million, or 4%. Wholesale brokered deposits increased by $15.0 million primarily to fund the growth in mortgage warehouse loans. Overall noninterest-bearing deposits as a percentage of total deposits at June 30, 2025, increased to 35.8%, as compared to 34.8% at December 31, 2024, and 33.5% at June 30, 2024. Other interest-bearing liabilities of $280.9 million on June 30, 2025, consisted of $80.0 million in term FHLB advances, $126.5 million in customer repurchase agreements, and $74.4 million in overnight borrowings.

Overall uninsured deposits are estimated to be approximately $751.1 million, or 26% 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 reciprocal time deposit through the Certificate of Deposit Account Registry System

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Sierra Bancorp Financial Results

July 28, 2025

(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, 2025, the Company had approximately 118,000 accounts and the 25 largest deposit balance customers had balances of approximately 11% of overall deposits, a 10% increase over the linked quarter*.* During the second quarter of 2025, 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. Deposit balances for the 25 largest deposit customers increased $41.7 million, or 15%, at June 30, 2025, as compared to the linked quarter.

The Company continues to have substantial liquidity which is managed daily. At June 30, 2025, and December 31, 2024, the Company had the following sources of primary and secondary liquidity (Dollars in Thousands):

---

| | | |
|:---|:---|:---|
| **Primary and secondary liquidity sources** | **June 30, 2025** | **December 31, 2024** |
| Cash and cash equivalents | $130012 | $100664 |
| Unpledged investment securities | 529292 | 552098 |
| Excess pledged securities | 253365 | 242519 |
| FHLB borrowing availability | 605571 | 629134 |
| Unsecured lines of credit | 445785 | 479785 |
| Secured lines of credit | 25000 | 25000 |
| Funds available through fed discount window | 321368 | 298296 |
| **Totals** | $**2310393** | $**2327496** |

---

Total capital of $355.7 million at June 30, 2025, reflects a decrease of $1.6 million, relative to year-end 2024. The decrease in equity during the first half of 2025 was due to the addition of $19.7 million in net income, a $2.6 million favorable swing in accumulated other comprehensive income/loss due principally to changes in investment securities' fair value, $18.0 million in share repurchases and $7.0 million in dividends paid. The remaining difference is related to stock options exercised and restricted stock compensation recognized during the first half of 2025.

**Asset Quality**

Total nonperforming assets, comprised of nonaccrual loans and foreclosed assets, decreased by $4.7 million to $15.0 million for the first half of 2025. The Company's ratio of nonperforming loans to gross loans decreased to 0.62% at June 30, 2025, from 0.84% at December 31, 2024. The decrease resulted from a decrease in non-accrual loan balances, due to the partial charge-off of one agricultural production loan. All the Company's nonperforming assets are individually evaluated for credit loss quarterly and Management believes the established allowance for credit loss on such loans is appropriate.

The allowance for credit losses on loans decreased $5.4 million to $21.7 million as of June 30, 2025, as compared to March 31, 2025, and decreased $3.2 million as compared to December 31, 2024. The decline in the allowance for credit losses on loans for the first six months of 2025 was primarily due to the $5.3 million partial charge-off of one agricultural production loan (reflected in the other commercial category in the table below) which had a $5.3 million allowance for this loan specifically evaluated at the end of the prior quarter.

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Sierra Bancorp Financial Results

July 28, 2025

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Allowance for Credit Losses on Loans by Category** |  |  |  |  |
| (Dollars in Thousands, Unaudited) |  |  |  |  |
|  | **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2025** |
|  | **Balance** | **Total Allowance** | **Percent of Portfolio** | **Coverage Ratio** <sup>(1)</sup> |
| Real estate: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Residential real estate | $371415 | $1694 | 15.26% | 0.46% |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial real estate | 1392075 | 17083 | 57.17% | 1.23% |
| &nbsp;&nbsp;&nbsp;&nbsp;Other construction/land | 11662 | 252 | 0.48% | 2.16% |
| &nbsp;&nbsp;&nbsp;&nbsp;Farmland | 67967 | 185 | 2.79% | 0.27% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total real estate | 1843119 | 19214 | 75.70% | 1.04% |
| Other Commercial | 186620 | 1907 | 7.67% | 1.02% |
| Mortgage warehouse lines | 401896 | 451 | 16.51% | 0.11% |
| Consumer loans | 2974 | 108 | 0.12% | 3.63% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Loans** | $2434609 | $21680 | 100.00% | 0.89% |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **As of March 31, 2025** | **As of March 31, 2025** | **As of March 31, 2025** | **As of March 31, 2025** |
|  | **Balance** | **Total Allowance** | **Percent of Portfolio** | **Coverage Ratio** <sup>(1)</sup> |
| Real estate: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Residential real estate | $377592 | $1746 | 16.37% | 0.46% |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial real estate | 1380402 | 17143 | 59.85% | 1.24% |
| &nbsp;&nbsp;&nbsp;&nbsp;Other construction/land | 7633 | 145 | 0.33% | 1.90% |
| &nbsp;&nbsp;&nbsp;&nbsp;Farmland | 73206 | 282 | 3.17% | 0.39% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total real estate | 1838833 | 19316 | 79.72% | 1.05% |
| Other Commercial | 181631 | 7255 | 7.87% | 3.99% |
| Mortgage warehouse lines | 283231 | 339 | 12.28% | 0.12% |
| Consumer loans | 2968 | 140 | 0.13% | 4.72% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Loans** | $2306663 | $27050 | 100.00% | 1.17% |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** |
|  | **Balance** | **Total Allowance** | **Percent of Portfolio** | **Coverage Ratio** <sup>(1)</sup> |
| Real estate: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Residential real estate | $382507 | $1808 | 16.41% | 0.47% |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial real estate | 1357833 | 17051 | 58.24% | 1.26% |
| &nbsp;&nbsp;&nbsp;&nbsp;Other construction/land | 5472 | 92 | 0.23% | 1.68% |
| &nbsp;&nbsp;&nbsp;&nbsp;Farmland | 77547 | 280 | 3.33% | 0.36% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total real estate | 1823359 | 19231 | 78.21% | 1.05% |
| Other Commercial | 178331 | 4829 | 7.65% | 2.71% |
| Mortgage warehouse lines | 326400 | 398 | 14.00% | 0.12% |
| Consumer loans | 3344 | 372 | 0.14% | 11.12% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Loans** | $2331434 | $24830 | 100.00% | 1.07% |

---

------

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

The allowance as a percentage of gross loans was 0.89%, 1.17%, and 1.07%, at June 30, 2025, March 31, 2025, and December 31, 2024, respectively. Mortgage warehouse lines historically have incurred nominal losses and therefore have a significantly lower reserve than the other categories of loans. The largest increase in loan balances was from mortgage

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Sierra Bancorp Financial Results

July 28, 2025

warehouse lines which has the lowest allowance for credit losses on loans at 0.11%. Therefore, at June 30, 2025, approximately $0.5 million of the allowance for credit losses for loans is attributable to mortgage warehouse lines. The allowance as a percentage of gross loans exclusive of mortgage warehouse lines was 1.04% at June 30, 2025, as compared to 1.32% at March 31, 2025, and 1.22% at December 31, 2024.

The largest loan segment of commercial real estate continues to maintain a coverage ratio at or above 1.23%. As described above, the significant decline in the coverage ratio for other commercial loans was due to a charge-off of a $5.3 million allowance on a loan individually evaluated for loss.

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, 2025, 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 48<sup>th</sup> year of operations.

Bank of the Sierra is a community-centric regional bank, which offers a broad range of retail and commercial banking services through 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 an agricultural credit center in Templeton, California. In 2025, Bank of the Sierra was recognized as one of the strongest and top-performing community banks in the country, with a 5-star rating from Bauer Financial.

<u>Forward-Looking Statements</u>

*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, the impact of changes to economic policies, including tariffs, on inflation or employment; 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.*

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Sierra Bancorp Financial Results

July 28, 2025

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **STATEMENT OF CONDITION** |  |  |  |  |  |
| (Dollars in Thousands, Unaudited) |  |  |  |  |  |
| **ASSETS** | **6/30/2025** | **3/31/2025** | **12/31/2024** | **9/30/2024** | **6/30/2024** |
| Cash and due from banks | $130012 | $159711 | $100664 | $132797 | $183990 |
| Investment securities |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Available-for-sale, at fair value | 668834 | 620288 | 655967 | 706310 | 716787 |
| &nbsp;&nbsp;&nbsp;&nbsp;Held-to-maturity, at amortized cost, net of allowance for credit losses | 298484 | 302123 | 305514 | 308971 | 312879 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total investment securities | 967318 | 922411 | 961481 | 1015281 | 1029666 |
| Real estate loans |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Residential real estate | 370348 | 376533 | 381438 | 388169 | 396819 |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial real estate | 1394487 | 1382928 | 1360374 | 1338793 | 1316754 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other construction/land | 11746 | 7717 | 5458 | 5612 | 5971 |
| &nbsp;&nbsp;&nbsp;&nbsp;Farmland | 67811 | 73061 | 77388 | 80589 | 80807 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total real estate loans | 1844392 | 1840239 | 1824658 | 1813163 | 1800351 |
| Other commercial | 185404 | 180390 | 177013 | 168236 | 156650 |
| Mortgage warehouse lines | 401896 | 283231 | 326400 | 335777 | 274059 |
| Consumer loans | 2913 | 2902 | 3270 | 3453 | 3468 |
| &nbsp;&nbsp;Gross loans | 2434605 | 2306762 | 2331341 | 2320629 | 2234528 |
| Deferred loan costs (fees) , net | 4 | (99) | 93 | 396 | 288 |
| Allowance for credit losses on loans | (21680) | (27050) | (24830) | (22710) | (21640) |
| &nbsp;&nbsp;Net loans | 2412929 | 2279613 | 2306604 | 2298315 | 2213176 |
| Bank premises and equipment | 15285 | 15338 | 15431 | 15647 | 16007 |
| Other assets | 244758 | 229110 | 230091 | 234114 | 238363 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total assets** | $**3770302** | $**3606183** | $**3614271** | $**3696154** | $**3681202** |
| **LIABILITIES AND CAPITAL** |  |  |  |  |  |
| Noninterest demand deposits | $1065742 | $1037990 | $1007208 | $1013743 | $986927 |
| Interest-bearing transaction accounts | 603294 | 598924 | 587753 | 595672 | 537731 |
| Savings deposits | 352803 | 355325 | 347387 | 356725 | 368169 |
| Money market deposits | 148084 | 143522 | 140793 | 135948 | 136853 |
| Customer time deposits | 514596 | 524173 | 533577 | 550121 | 566132 |
| Wholesale brokered deposits | 289950 | 189950 | 274950 | 309950 | 346598 |
| &nbsp;&nbsp;Total deposits | 2974469 | 2849884 | 2891668 | 2962159 | 2942410 |
| Repurchase agreements | 126509 | 118756 | 108860 | 125534 | 148003 |
| Long-term debt | 49438 | 49416 | 49393 | 49371 | 49348 |
| Subordinated debentures | 35928 | 35883 | 35838 | 35794 | 35749 |
| Other interest-bearing liabilities | 154400 | 80000 | 80000 | 80000 | 80000 |
| &nbsp;&nbsp;Total deposits and interest-bearing liabilities | 3340744 | 3133939 | 3165759 | 3252858 | 3255510 |
| Allowance for credit losses on unfunded loan commitments | 810 | 820 | 710 | 640 | 520 |
| Other liabilities | 73041 | 119668 | 90500 | 83958 | 75152 |
| Total capital | 355707 | 351756 | 357302 | 358698 | 350020 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities and capital** | $**3770302** | $**3606183** | $**3614271** | $**3696154** | $**3681202** |

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Sierra Bancorp Financial Results

July 28, 2025

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **GOODWILL AND INTANGIBLE ASSETS** |  |  |  |  |  |
| (Dollars in Thousands, Unaudited) |  |  |  |  |  |
|  | **6/30/2025** | **3/31/2025** | **12/31/2024** | **9/30/2024** | **6/30/2024** |
| Goodwill | $27357 | $27357 | $27357 | $27357 | $27357 |
| Core deposit intangible | 294 | 456 | 618 | 780 | 961 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total intangible assets** | $**27651** | $**27813** | $**27975** | $**28137** | $**28318** |
| **CREDIT QUALITY** |  |  |  |  |  |
| (Dollars in Thousands, Unaudited) |  |  |  |  |  |
|  | **6/30/2025** | **3/31/2025** | **12/31/2024** | **9/30/2024** | **6/30/2024** |
| Nonperforming loans | $14981 | $18201 | $19668 | $10348 | $6473 |
| Foreclosed assets |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total nonperforming assets** | $**14981** | $**18201** | $**19668** | $**10348** | $**6473** |
| Quarterly net charge offs (recoveries)  | $6580 | $(259) | $215 | $170 | $2421 |
| Past due and still accruing (30-89) | $3033 | $3057 | $1348 | $211 | $3172 |
| Classified loans | $35700 | $37265 | $44464 | $29148 | $28829 |
| Nonperforming loans / gross loans | 0.62% | 0.79% | 0.84% | 0.45% | 0.29% |
| NPA's / loans plus foreclosed assets | 0.62% | 0.79% | 0.84% | 0.45% | 0.29% |
| Allowance for credit losses on loans / gross loans | 0.89% | 1.17% | 1.07% | 0.98% | 0.97% |
| **SELECT PERIOD-END STATISTICS** |  |  |  |  |  |
| (Unaudited) |  |  |  |  |  |
|  | **6/30/2025** | **3/31/2025** | **12/31/2024** | **9/30/2024** | **6/30/2024** |
| Shareholders' equity / total assets | 9.43% | 9.75% | 9.89% | 9.70% | 9.51% |
| Gross loans / deposits | 81.85% | 80.94% | 80.62% | 78.34% | 75.94% |
| Noninterest-bearing deposits / total deposits | 35.83% | 36.42% | 34.83% | 34.22% | 33.54% |

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Sierra Bancorp Financial Results

July 28, 2025

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **CONSOLIDATED INCOME STATEMENT** |  |  |  |  |  |
| (Dollars in Thousands, Unaudited) | **For the three months ended:** | **For the three months ended:** | **For the three months ended:** | **For the six months ended:**  | **For the six months ended:**  |
|  | **6/30/2025** | **3/31/2025** | **6/30/2024** | **6/30/2025** | **6/30/2024** |
| Interest income | $42717 | $41453 | $43495 | $84170 | $84455 |
| Interest expense | 12064 | 11341 | 13325 | 23405 | 25568 |
| &nbsp;&nbsp;Net interest income | 30653 | 30112 | 30170 | 60765 | 58887 |
| Credit loss expense - loans | 1210 | 1961 | 921 | 3171 | 1018 |
| Credit loss (benefit) expense - unfunded commitments | (10) | 110 | (20) | 100 | 10 |
| &nbsp;&nbsp;Net interest income after provision | 29453 | 28041 | 29269 | 57494 | 57859 |
| Service charges and fees on deposit accounts | 5855 | 5581 | 6184 | 11436 | 11909 |
| Net gain (loss) on sale of securities available-for-sale | 1 | 122 | - | 124 | (2883) |
| Net (loss) gain on sale of fixed assets | (19) | (2) | - | (22) | 3799 |
| Increase (decrease) in cash surrender value of life insurance | 1316 | (265) | 523 | 1051 | 1738 |
| Other income | 1400 | 1206 | 923 | 2606 | 1656 |
| &nbsp;&nbsp;Total noninterest income | 8553 | 6642 | 7630 | 15195 | 16219 |
| Salaries and benefits | 12544 | 13003 | 12029 | 25547 | 25226 |
| Occupancy expense | 3142 | 2978 | 3152 | 6120 | 6177 |
| Other noninterest expenses | 8081 | 6436 | 7511 | 14517 | 15815 |
| &nbsp;&nbsp;Total noninterest expense | 23767 | 22417 | 22692 | 46184 | 47218 |
| &nbsp;&nbsp;Income before taxes | 14239 | 12266 | 14207 | 26505 | 26860 |
| Provision for income taxes | 3606 | 3165 | 3944 | 6771 | 7267 |
| &nbsp;&nbsp;**Net income** | $**10633** | $**9101** | $**10263** | $**19734** | $**19593** |
| ***TAX DATA*** |  |  |  |  |  |
| Tax-exempt muni income | $1577 | $1576 | $1592 | $3153 | $3581 |
| Interest income - fully tax equivalent | $43136 | $41872 | $43918 | $85008 | $85407 |

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Sierra Bancorp Financial Results

July 28, 2025

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **PER SHARE DATA** |  |  |  |  |  |
| (Unaudited) | **For the three months ended:** | **For the three months ended:** | **For the three months ended:** | **For the six months ended:**  | **For the six months ended:**  |
|  | **6/30/2025** | **3/31/2025** | **6/30/2024** | **6/30/2025** | **6/30/2024** |
| Basic earnings per share | $0.78 | $0.66 | $0.72 | $1.44 | $1.36 |
| Diluted earnings per share | $0.78 | $0.65 | $0.71 | $1.43 | $1.35 |
| Common dividends | $0.25 | $0.25 | $0.23 | $0.50 | $0.46 |
| Weighted average shares outstanding | 13563910 | 13820008 | 14300267 | 13692003 | 14404368 |
| Weighted average diluted shares | 13637252 | 13916341 | 14381426 | 13777006 | 14467477 |
| Book value per basic share (EOP) | $26.00 | $25.45 | $24.19 | $26.00 | $24.19 |
| Tangible book value per share (EOP) <sup>(1)</sup> | $23.98 | $23.44 | $22.24 | $23.98 | $22.24 |
| Common shares outstanding (EOP) | 13681828 | 13818770 | 14466873 | 13681828 | 14466873 |

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&nbsp;&nbsp;&nbsp;&nbsp;(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 three months ended:** | **For the three months ended:** | **For the six months ended:**  | **For the six months ended:**  |
|  | **6/30/2025** | **3/31/2025** | **6/30/2024** | **6/30/2025** | **6/30/2024** |
| Return on average equity | 12.08% | 10.44% | 11.95% | 11.26% | 11.52% |
| Return on average assets | 1.16% | 1.02% | 1.14% | 1.09% | 1.10% |
| Net interest margin (tax-equivalent) <sup>(1)</sup> | 3.68% | 3.74% | 3.69% | 3.71% | 3.66% |
| Efficiency ratio (tax-equivalent) <sup>(1) (2)</sup> | 59.43% | 60.62% | 59.15% | 60.00% | 62.45% |
| Net charge-offs (recoveries) / average loans (not annualized) | 0.27% | (0.01)% | 0.11% | 0.27% | 0.13% |

---

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

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

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Sierra Bancorp Financial Results

July 28, 2025

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| | | | | |
|:---|:---|:---|:---|:---|
| **NON-GAAP FINANCIAL MEASURES** |  |  |  |  |
| (Dollars in Thousands, Unaudited) | **As of:** | **As of:** | **As of:** | **As of:** |
|  |  | **6/30/2025** | **3/31/2025** | **6/30/2024** |
| Total stockholders' equity | $| 355707 | 351756 | 350020 |
| Less: goodwill and other intangible assets |  | 27651 | 27813 | 28318 |
| Tangible common equity | $ | 328056 | 323943 | 321702 |
| Total assets | $| 3770302 | 3606183 | 3681202 |
| Less: goodwill and other intangible assets |  | 27651 | 27813 | 28318 |
| Tangible assets | $ | 3742651 | 3578370 | 3652884 |
| Total stockholders' equity (bank only) | $| 430250 | 432518 | 415210 |
| Less: goodwill and other intangible assets (bank only) |  | 27651 | 27813 | 28318 |
| Tangible common equity (bank only) | $ | 402599 | 404705 | 386892 |
| Total assets (bank only) | $| 3766071 | 3603679 | 3678508 |
| Less: goodwill and other intangible assets (bank only) |  | 27651 | 27813 | 28318 |
| Tangible assets (bank only) | $ | 3738420 | 3575866 | 3650190 |
| Common shares outstanding |  | 13681828 | 13818770 | 14466873 |
| Book value per common share (total stockholders' equity / shares outstanding) | $| 26.00 | 25.45 | 24.19 |
| Tangible book value per common share (tangible common equity / shares outstanding) | $| 23.98 | 23.44 | 22.24 |
| Equity ratio - GAAP (total stockholders' equity / total assets |  | 9.43% | 9.75% | 9.51% |
| Tangible common equity ratio (tangible common equity / tangible assets) |  | 8.77% | 9.05% | 8.81% |
| Tangible common equity ratio (bank only) (tangible common equity / tangible assets) |  | 10.77% | 11.32% | 10.60% |

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **For the three months ended:** | **For the three months ended:** | **For the three months ended:** | **For the six months ended:**  | **For the six months ended:**  |
| **Efficiency Ratio:** | **6/30/2025** | **3/31/2025** | **6/30/2024** | **6/30/2025** | **6/30/2024** |
| Noninterest expense | $23767 | $22417 | $22692 | $46184 | 47218 |
| &nbsp;&nbsp;Divided by: |  |  |  |  |  |
| Net interest income | 30653 | 30112 | 30170 | 60765 | 58887 |
| &nbsp;&nbsp;Tax-equivalent interest income adjustments | 419 | 419 | 423 | 838 | 952 |
| Net interest income, adjusted | 31072 | 30531 | 30593 | 61603 | 59839 |
| Noninterest income | 8553 | 6642 | 7630 | 15195 | 16219 |
| &nbsp;&nbsp;Less gain (loss) on sale of securities | 1 | 122 | - | 124 | (2883) |
| &nbsp;&nbsp;Less (loss) gain on sale of fixed assets | (19) | (2) | - | (22) | 3799 |
| &nbsp;&nbsp;Tax-equivalent noninterest income adjustments | 350 | (70) | 139 | 279 | 462 |
| Noninterest income, adjusted | 8921 | 6452 | 7769 | 15372 | 15765 |
| Net interest income plus noninterest income, adjusted | $39993 | $36982 | $38362 | $76976 | $75604 |
| Efficiency Ratio (tax-equivalent) | 59.43% | 60.62% | 59.15% | 60.00% | 62.45% |

---

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Sierra Bancorp Financial Results

July 28, 2025

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **NONINTEREST INCOME/EXPENSE** |  |  |  |  |  |
| (Dollars in Thousands, Unaudited) | (Dollars in Thousands, Unaudited) | (Dollars in Thousands, Unaudited) |  |  |  |
|  | **For the three months ended:** | **For the three months ended:** | **For the three months ended:** | **For the six months ended June 30,**  | **For the six months ended June 30,**  |
| **Noninterest income:** | **6/30/2025** | **3/31/2025** | **6/30/2024** | **2025** | **2024** |
| Service charges and fees on deposit accounts | $5855 | $5581 | $6184 | $11436 | $11909 |
| Net gain (loss) on sale of securities available-for-sale | 1 | 122 |  | 124 | (2883) |
| (Loss) gain on sale of fixed assets | (19) | (2) |  | (22) | 3799 |
| Bank-owned life insurance | 1316 | (265) | 523 | 1051 | 1738 |
| Other | 1400 | 1206 | 923 | 2606 | 1656 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total noninterest income | $8553 | $6642 | $7630 | $15195 | $16219 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a % of average interest-earning assets <sup>(1)</sup> | 1.01% | 0.81% | 0.92% | 0.91% | 0.99% |
| **Noninterest expense:** |  |  |  |  |  |
| Salaries and employee benefits | $12544 | $13003 | $12029 | $25547 | $25226 |
| Occupancy and equipment costs | 3142 | 2978 | 3152 | 6120 | 6177 |
| Advertising and marketing costs | 405 | 348 | 338 | 753 | 680 |
| Data processing costs | 1566 | 1498 | 1680 | 3064 | 3189 |
| Deposit services costs | 2118 | 1991 | 2019 | 4109 | 4152 |
| Loan services costs |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Loan processing | 113 | 138 | 89 | 251 | 240 |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreclosed assets | (2) | 4 |  | 2 | - |
| Other operating costs | 1078 | 928 | 1094 | 2006 | 2021 |
| Professional services costs |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Legal & accounting services | 419 | 651 | 714 | 1070 | 1240 |
| &nbsp;&nbsp;&nbsp;&nbsp;Director's costs | 1257 | (134) | 646 | 1123 | 1899 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other professional service | 711 | 706 | 582 | 1417 | 1582 |
| Stationery & supply costs | 132 | 101 | 115 | 233 | 263 |
| Sundry & tellers | 284 | 205 | 234 | 489 | 549 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total noninterest expense | $23767 | $22417 | $22692 | $46184 | $47218 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a % of average interest-earning assets <sup>(1)</sup> | 2.81% | 2.75% | 2.74% | 2.78% | 2.89% |
| Efficiency ratio (tax-equivalent) <sup>(2)(3)</sup> | 59.43% | 60.62% | 59.15% | 60.00% | 62.45% |

---

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&nbsp;&nbsp;&nbsp;&nbsp;(1) Annualized

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

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

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Sierra Bancorp Financial Results

July 28, 2025

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **AVERAGE BALANCES AND RATES** | **AVERAGE BALANCES AND RATES** | **AVERAGE BALANCES AND RATES** | **AVERAGE BALANCES AND RATES** |  |  |  |  |  |  |
| (Dollars in Thousands, Unaudited) |  |  |  |  |  |  |  |  |  |
|  | **For the quarter ended** | **For the quarter ended** | **For the quarter ended** | **For the quarter ended** | **For the quarter ended** | **For the quarter ended** | **For the quarter ended** | **For the quarter ended** | **For the quarter ended** |
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **March 31, 2025** | **March 31, 2025** | **March 31, 2025** | **June 30, 2024** | **June 30, 2024** | **June 30, 2024** |
|  | **Average Balance** <sup>(1)</sup> | **Income/ Expense** | **Yield/ Rate** <sup>(2)</sup> | **Average Balance** <sup>(1)</sup> | **Income/ Expense** | **Yield/ Rate** <sup>(2)</sup> | **Average Balance** <sup>(1)</sup> | **Income/ Expense** | **Yield/ Rate** <sup>(2)</sup> |
| **Assets** |  |  |  |  |  |  |  |  |  |
| Investments: |  |  |  |  |  |  |  |  |  |
| Federal funds sold/interest-earning due from accounts | $18122 | $211 | 4.67% | $54641 | $590 | 4.38% | $43407 | $598 | 5.54% |
| Taxable | 770413  | 9295  | 4.84% | 735197  | 9138  | 5.04% | 866270  | 12787  | 5.94% |
| Non-taxable | 196364  | 1577  | 4.08% | 197558  | 1576  | 4.10% | 199942  | 1592  | 4.05% |
| &nbsp;&nbsp;Total investments | 984899  | 11083  | 4.68% | 987396  | 11304  | 4.81% | 1109619  | 14977  | 5.58% |
| Loans: <sup>(3)</sup> |  |  |  |  |  |  |  |  |  |
| Real estate | 1849725  | 22589  | 4.90% | 1824428  | 21988  | 4.89% | 1802190  | 20463  | 4.57% |
| Agricultural production | 72933  | 915  | 5.03% | 76316  | 1030  | 5.47% | 75825  | 1406  | 7.46% |
| Commercial | 109407  | 1612  | 5.91% | 103152  | 1515  | 5.96% | 77224  | 1174  | 6.11% |
| Consumer | 3214  | 64  | 7.99% | 3286  | 69  | 8.52% | 3698  | 79  | 8.59% |
| Mortgage warehouse lines | 368592  | 6440  | 7.01% | 313251  | 5529  | 7.16% | 261768  | 5382  | 8.27% |
| Other | 2351  | 14  | 2.39% | 2361  | 18  | 3.09% | 2291  | 14  | 2.46% |
| &nbsp;&nbsp;Total loans | 2406222  | 31634  | 5.27% | 2322794  | 30149  | 5.26% | 2222996  | 28518  | 5.16% |
| Total interest-earning assets <sup>(4)</sup> | 3391121  | 42717 | 5.10% | 3310190  | 41453  | 5.13% | 3332615  | 43495  | 5.30% |
| Other earning assets | 17062  |  |  | 17062  |  |  | 17058  |  |  |
| Non-earning assets | 280045  |  |  | 273926  |  |  | 286020  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total assets** | $3688228 |  |  | $3601178 |  |  | $3635693 |  |  |
| **Liabilities and shareholders' equity** |  |  |  |  |  |  |  |  |  |
| Interest-bearing deposits: |  |  |  |  |  |  |  |  |  |
| Demand deposits | $224649 | $1420 | 2.54% | $207774 | $1292 | 2.52% | $131510 | $733 | 2.24% |
| NOW | 375695  | 140  | 0.15% | 378338  | 119  | 0.13% | 398001  | 148  | 0.15% |
| Savings accounts | 354798  | 97  | 0.11% | 352645  | 90  | 0.10% | 371961  | 80  | 0.09% |
| Money market | 146193  | 608  | 1.67% | 145092  | 571  | 1.60% | 139507  | 476  | 1.37% |
| Time deposits | 516970  | 4283  | 3.32% | 531299  | 4412  | 3.37% | 563526  | 6051  | 4.32% |
| Wholesale brokered deposits | 244401  | 2778  | 4.56% | 244561  | 2888  | 4.79% | 307995  | 3544  | 4.63% |
| &nbsp;&nbsp;Total interest-bearing deposits | 1862706  | 9326  | 2.01% | 1859709  | 9372  | 2.04% | 1912500  | 11032  | 2.32% |
| Borrowed funds: |  |  |  |  |  |  |  |  |  |
| Federal funds purchased | 46214  | 517  | 4.49% | 183  | 2  | 4.43% | 181  | 3  | 6.67% |
| Repurchase agreements | 124636  | 79  | 0.25% | 112361  | 69  | 0.25% | 131478 | 66 | 0.20% |
| Short term borrowings | 24716  | 277  | 4.50% | 4043  | 45  | 4.51% | 18550 | 262 | 5.68% |
| Long term FHLB Advances | 80000  | 780  | 3.91% | 80000  | 771  | 3.91% | 80000  | 777 | 3.91% |
| Long-term debt | 49424  | 430  | 3.49% | 49402  | 430  | 3.53% | 49335 | 430 | 3.51% |
| Subordinated debentures | 35899  | 655  | 7.32% | 35855  | 652  | 7.37% | 35723 | 755 | 8.50% |
| &nbsp;&nbsp;Total borrowed funds | 360889  | 2738  | 3.04% | 281844  | 1969  | 2.83% | 315267  | 2293  | 2.93% |
| &nbsp;&nbsp;Total interest-bearing liabilities | 2223595  | 12064  | 2.18% | 2141553  | 11341  | 2.15% | 2227767  | 13325  | 2.41% |
| Demand deposits - noninterest-bearing | 1020374  |  |  | 1003322  |  |  | 978602  |  |  |
| Other liabilities | 91191  |  |  | 102806  |  |  | 83886  |  |  |
| Shareholders' equity | 353068  |  |  | 353497  |  |  | 345438  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities and shareholders' equity** | $3688228 |  |  | $3601178 |  |  | $3635693 |  |  |
| Interest income/interest-earning assets |  |  | 5.10% |  |  | 5.13% |  |  | 5.30% |
| Interest expense/interest-earning assets |  |  | 1.42% |  |  | 1.39% |  |  | 1.61% |
| &nbsp;&nbsp;&nbsp;&nbsp;**Net interest income and margin** <sup>(5)</sup> |  | $30653 | 3.68% |  | $30112 | 3.74% |  | $30170 | 3.69% |

---

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

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

&nbsp;&nbsp;&nbsp;&nbsp;(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 $(0.4) million and $(0.3) million for the quarters ended June 30, 2025 and 2024, respectively, and $(0.3) million for the quarter ended March 31, 2025.

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

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

------

Sierra Bancorp Financial Results

July 28, 2025

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **AVERAGE BALANCES AND RATES** |  |  |  |  |  |  |
| (Dollars in Thousands, Unaudited) | (Dollars in Thousands, Unaudited) |  |  |  |  |  |
|  | **For the six months ended**  | **For the six months ended**  | **For the six months ended**  | **For the six months ended**  | **For the six months ended**  | **For the six months ended**  |
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2024** | **June 30, 2024** | **June 30, 2024** |
|  | **Average <br>Balance** <sup>(1)</sup> | **Income/<br>Expense** | **Yield/ Rate** <sup>(2)</sup> | **Average<br>Balance** <sup>(1)</sup> | **Income/<br>Expense** | **Yield/ Rate** <sup>(2)</sup> |
| **Assets** |  |  |  |  |  |  |
| Investments: |  |  |  |  |  |  |
| Interest-earning due from banks | $36281 | $799 | 4.44% | $30202 | $839 | 5.59% |
| Taxable | 752903 | 18435 | 4.94% | 879720 | 26090 | 5.96% |
| Non-taxable | 196957 | 3153 | 4.09% | 222469 | 3581 | 4.10% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total investments | 986141 | 22387 | 4.75% | 1132391 | 30510 | 5.59% |
| Loans:(3) |  |  |  |  |  |  |
| Real estate | $1837146 | $44576 | 4.89% | $1804187 | $40653 | 4.53% |
| Agricultural | 74615 | 1945 | 5.26% | 68622 | 2544 | 7.46% |
| Commercial | 106296 | 3127 | 5.93% | 78216 | 2357 | 6.06% |
| Consumer | 3250 | 133 | 8.25% | 3830 | 160 | 8.40% |
| Mortgage warehouse lines | 341075 | 11970 | 7.08% | 199595 | 8203 | 8.26% |
| Other  | 2356 | 32 | 2.74% | 2312 | 28 | 2.44% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total loans | 2364738 | 61783 | 5.27% | 2156762 | 53945 | 5.03% |
| Total interest-earning assets (4) | 3350879 | 84170 | 5.12% | 3289153 | 84455 | 5.22% |
| Other earning assets | 17062 |  |  | 17202 |  |  |
| Non-earning assets | 277002 |  |  | 278403 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total assets** | $3644943 |  |  | $3584758 |  |  |
| **Liabilities and shareholders' equity** |  |  |  |  |  |  |
| Interest-bearing deposits: |  |  |  |  |  |  |
| Demand deposits | $216258 | $2712 | 2.53% | $134736 | $1431 | 2.14% |
| NOW  | 377009 | 259 | 0.14% | 398320 | 232 | 0.12% |
| Savings accounts | 353727 | 187 | 0.11% | 374148 | 153 | 0.08% |
| Money market | 145646 | 1180 | 1.63% | 138597 | 886 | 1.29% |
| Time deposits | 524095 | 8694 | 3.35% | 562733 | 12241 | 4.37% |
| Brokered deposits | 244480 | 5665 | 4.67% | 256543 | 5733 | 4.49% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest-bearing deposits | 1861215 | 18697 | 2.03% | 1865077 | 20676 | 2.23% |
| Borrowed funds: |  |  |  |  |  |  |
| Federal funds purchased | 23325 | 519 | 4.49% | 7554 | 247 | 6.58% |
| Repurchase agreements | 118533 | 148 | 0.25% | 121932 | 106 | 0.17% |
| Short term borrowings | 14437 | 323 | 4.51% | 21549 | 613 | 5.72% |
| Long term FHLB Advances | 80000 | 1550 | 3.91% | 80000 | 1555 | 3.91% |
| Long-term debt | 49413 | 860 | 3.51% | 49324 | 861 | 3.51% |
| Subordinated debentures | 35877 | 1308 | 7.35% | 35700 | 1510 | 8.51% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total borrowed funds | 321585 | 4708 | 2.95% | 316059 | 4892 | 3.11% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest-bearing liabilities | 2182800 | 23405 | 2.16% | 2181136 | 25568 | 2.36% |
| Demand deposits - noninterest-bearing | 1011895 |  |  | 984489 |  |  |
| Other liabilities | 96967 |  |  | 77210 |  |  |
| Shareholders' equity | 353281 |  |  | 341923 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities and shareholders' equity** | $3644943 |  |  | $3584758 |  |  |
| Interest income/interest-earning assets |  |  | 5.12% |  |  | 5.22% |
| Interest expense/interest-earning assets |  |  | 1.41% |  |  | 1.56% |
| &nbsp;&nbsp;&nbsp;&nbsp;**Net interest income and margin**<sup>(5)</sup> |  | $60765 | 3.71% |  | $58887 | 3.66% |

---

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

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

&nbsp;&nbsp;&nbsp;&nbsp;(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 $(0.7) million and $(0.7) million for the six months ended June 30, 2025, and 2024, respectively.

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

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

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