Sierra Bancorp (BSRR) Reports Solid Q3 2023 Earnings and Year-to-Date Financial Performance
Sierra Bancorp (NASDAQ:BSRR) reported consolidated net income of $9.9 million for Q3 2023, and $28.5 million for the first nine months of 2023.
The company's financial performance metrics for the first nine months of 2023 include an annualized return on average assets and a return on average equity of 1.03% and 12.41%, respectively.
Net interest income was $28.1 million for Q3 2023, a $0.8 million decrease over Q3 2022, but increased $4.3 million for the first nine months of 2023 relative to the same period in 2022.
Total noninterest income increased $1.2 million for Q3 2023, as compared to the same quarter in 2022, and decreased $0.08 million for the year-to-date period ended September 30, 2023, as compared to the same period in 2022.
Sierra Bancorp (NASDAQ:BSRR), parent of Bank of the Sierra, released its unaudited financial results for the three-and nine-month periods ended September 30, 2023, on October 23, 2023. The company reported a consolidated net income of $9.9 million, or $0.68 per diluted share, for Q3 2023, and $28.5 million or $1.93 per diluted shares, for the first nine months of 2023.
Financial Performance
For the first nine months of 2023, Sierra Bancorp (NASDAQ:BSRR) recognized net income of $28.6 million, or $1.93 per diluted share, compared to $26.5 million, or $1.76 per diluted share, for the same period in 2022. The year-over-year improvement is primarily due to higher net interest income of $4.3 million, along with a $4.0 million decrease in the provision for credit losses in 2023, partially offset by a $5.2 million increase in noninterest expense.
Income Statement Highlights
Net interest income was $28.1 million for Q3 2023, a $0.8 million decrease, or 3% over Q3 2022, but increased $4.3 million, or 5%, to $84.5 million for the first nine months of 2023 relative to the same period in 2022. Total noninterest income increased $1.2 million, or 17%, for Q3 2023, as compared to the same quarter in 2022, and decreased $0.08 million, or 3% for the year-to-date period ended September 30, 2023, as compared to the same period in 2022.
Balance Sheet Summary
Balance sheet changes during the first nine months of 2023 include an increase in total assets of $130.3 million, or 4%, primarily a result of a $62.1 million increase in investments securities, and a $47.9 million increase in gross loans. Deposit balances reflect growth of $23.6 million, or 1%, during the first nine months of 2023.
Asset Quality
Total nonperforming assets, comprised of nonaccrual loans and foreclosed assets, decreased by $18.8 million to $0.8 million for the first nine months of 2023. The Company's ratio of nonperforming loans to gross loans decreased to 0.4% at September 30, 2023 from 0.95% at December 31, 2022.
Kevin McPhaill, CEO and President of Sierra Bancorp (NASDAQ:BSRR), expressed pride in the team's accomplishments in the challenging banking environment. He highlighted the increase in earnings per share and tangible common equity per share from the last quarter. McPhaill also emphasized the company's commitment to active balance sheet management and its strong connections with customers through its community bank foundation.
This article first appeared on GuruFocus.
