On this page of StockholderLetter.com we present the latest annual shareholder letter from SIERRA BANCORP — ticker symbol BSRR. Reading current and past BSRR letters to shareholders can bring important insights into the investment thesis.
![President s Message
Author and professor Stephen Covey once said, The main
thing is to keep the main thing the main thing.
I couldn t agree more. When Bank of the Sierra was founded
nearly 50 years ago, we set out to provide banking services
to our community and address the gaps left by larger banks.
This same entrepreneurial spirit drives us today. We are
keeping the main thing the main thing!
2025 was a very strong year, with our highest quarterly
earnings ever reported in the fourth quarter! During 2025,
our earnings per share increased over 10% to $3.11 per
share and our loans grew 9%, all while maintaining strong
core deposits. Noninterest bearing deposits represented a
remarkable 35% of our deposit base at the end of last year.
These are exciting results! I am particularly proud of the 9%
growth in tangible book value while also providing a dividend
yield of over 3% for our investors. How did we do this? By
following our guiding principles and serving our communities.
Whether we are making a loan to help a local business
expand within our market, assisting a business owner or
consumer open a deposit account, or providing a mortgage
warehouse line to an out-of-state customer, we continue
to enhance revenue by filling a banking need. Notably,
noninterest expense decreased slightly in 2025 compared
to 2024. This is a huge achievement and demonstrates our
commitment to disciplined growth.
To better serve our communities across California, we set
three key strategic objectives:
1. Profitability: Be a top-performing bank with
10% annualized EPS growth.
2. People: Attract and retain the best talent.
3. Process & Technology: Enhance our customer experience
across all touchpoints, while streamlining our operations.
These strategic objectives provide clarity for our banking
team and are a driving mantra for our executive team and
Board of Directors.
Profitability: As a publicly traded company, we know we
have a fiduciary responsibility to our shareholders, and it
is our shareholders who allow us the privilege to serve our
communities. We understand we must earn our
independence each and every day and year after year
which is why profitability is the first of our three strategic
objectives. We believe we can achieve a 10% or greater EPS
growth with a focus on three goals. First, we plan to expand
2 | 2025 ANNUAL REPORT
our low-cost deposit base and pair it with single-digit loan
growth. Second, we expect to grow our already strong
noninterest income modestly. Together, these two income
sources will improve top-line revenue, but at a rate of less
than 10%. So, how can less than 10% gross income growth
drive 10% net earnings growth? The answer lies with expense
discipline. We intend to maintain expenses at current levels
in the near future and keep expense growth lower than
income growth over time. The formula is simple: modest net
interest income growth, a slight improvement in noninterest
income, and prudent expense management. Quite simply,
growing income faster than expenses should result in doubledigit net income and EPS growth.
People: I have been honored to be a part of our bank for
nearly 25 years and have seen firsthand that having the right
people is essential to reaching our full potential. Improving
our culture, incentives, and accountability is paramount to our
continued success. Over the past few years, we have attracted
and retained some of the best banking talent I have ever seen.
We have also strategically expanded our Board, resulting in
enhanced corporate governance led by a remarkable, diverse,
and talented group of directors. With our eye on expense
discipline, we know how important it is to have the right
bankers positioned where they can be most effective. Author
Jim Collins said it best: [I]f we spend the vast majority of our
time with people we really enjoy being on the bus with and who
will never disappoint us then we will almost certainly have a
great life As we consider the current and future needs of
our bank, I am proud of the strong team we have and continue
to build.
Process & Technology: Perhaps one of the biggest
challenges for any company that has been around a halfcentury is process improvement. Inertia is a powerful thing!
With the heart of a community bank, we are driven to
serve our customers throughout our footprint. To do this
efficiently and effectively, processes must be continually
assessed and improved as we strive to leverage technology
to enhance the customer experience across all touchpoints.
This synchronization is expected to both enhance customer
interactions and increase efficiency.
I am excited for 2026 as we work to make this our best year
ever! While we maintain a weather eye on the economy and
other risk factors, such as credit, interest rate, and fraud,
we also see opportunities for solid loan and deposit growth
and remain focused on providing the very best in banking.](/bsrr/bsrr-shareholder-letter-20260407-page-4.png)
• 
4/7/2026 Letter Continued (Full PDF)
•
4/13/2023 BSRR Stockholder Letter
• 4/9/2024 BSRR Stockholder Letter
• 4/8/2025 BSRR Stockholder Letter
• More "Banking & Savings" Category Stockholder Letters
•
BSRR Benford's Law Stock Score = 100
4/7/2026 Letter Continued (Full PDF)
•
4/13/2023 BSRR Stockholder Letter•
4/9/2024 BSRR Stockholder Letter•
4/8/2025 BSRR Stockholder Letter•
More "Banking & Savings" Category Stockholder Letters•
BSRR Benford's Law Stock Score = 100BSRR Shareholder/Stockholder Letter Transcript:
2025 ANNUAL REPORT 7 KEY STRATEGIES 01 KEEP THINKING Anticipate and meet needs with a broad range of solutions. 02 KEEP SERVING Provide quality service on a timely, competitive basis. 03 KEEP LEARNING Be passionate about being the right person on the team. 04 KEEP GROWING Encourage creativity and maximize every opportunity to improve. 05 KEEP GIVING Serve our communities through involvement and reinvestment. 06 KEEP STRIVING Be disciplined; aim for excellence. 07 KEEP SMILING Enjoy the journey and have fun along the way. Mission Statement To be responsible stewards for our shareholders by targeting top-quartile financial returns, while promoting a culture of fiscal discipline, ingenuity, and integrity. Our Brand Promise We will help make every community we re part of better. 2 LOCATIONS CATIONS 1. Tulare are County Dinuba a | 1997 3 Exeter | 1988 1 Farmersville rsville | 2010 Lindsayy | 1981 Porterville ville Main St. | 1978 4 7 Porterville ville West Olive | 1981 Three Rivers | 1994 Tulare Prosperity | 2009 Visalia Main St. | 1995 Visalia Mooney | 1991 5 Woodlake ake | 2017 6 2. Fresno sno County Clovis | 2004 Fresno o Palm | 2018 Fresno o Shaw Ave. | 1999 Fresno o Sunnyside | 2008 Reedleyy | 2005 Selma | 2011 6. Ventura County 3. Kings gs County Fillmore | 2014 Hanford rd | 1998 Ojai | 2017 Santa Paula | 2014 4. San n Luis Obispo County Ventura | 2017 Paso Robles obles | 2016 Pismo Beach | 2017 7. Kern County San Luis uis Obispo | 2016 Bakersfield California Ave. | 2017 Templeton Loan Production Office | 2022 Bakersfield East Hills | 2008 Templeton Regional Office | 2022 Bakersfield Ming Ave. | 2000 Bakersfield Riverlakes | 2006 5. Santa Barbara County California City | 2000 Lompoc | 2018 Delano | 2007 Santa Barbara | 2017 Tehachapi F St. | 2000 2025 ANNUAL REPORT | 1 President s Message Author and professor Stephen Covey once said, The main thing is to keep the main thing the main thing. I couldn t agree more. When Bank of the Sierra was founded nearly 50 years ago, we set out to provide banking services to our community and address the gaps left by larger banks. This same entrepreneurial spirit drives us today. We are keeping the main thing the main thing! 2025 was a very strong year, with our highest quarterly earnings ever reported in the fourth quarter! During 2025, our earnings per share increased over 10% to $3.11 per share and our loans grew 9%, all while maintaining strong core deposits. Noninterest bearing deposits represented a remarkable 35% of our deposit base at the end of last year. These are exciting results! I am particularly proud of the 9% growth in tangible book value while also providing a dividend yield of over 3% for our investors. How did we do this? By following our guiding principles and serving our communities. Whether we are making a loan to help a local business expand within our market, assisting a business owner or consumer open a deposit account, or providing a mortgage warehouse line to an out-of-state customer, we continue to enhance revenue by filling a banking need. Notably, noninterest expense decreased slightly in 2025 compared to 2024. This is a huge achievement and demonstrates our commitment to disciplined growth. To better serve our communities across California, we set three key strategic objectives: 1. Profitability: Be a top-performing bank with 10% annualized EPS growth. 2. People: Attract and retain the best talent. 3. Process & Technology: Enhance our customer experience across all touchpoints, while streamlining our operations. These strategic objectives provide clarity for our banking team and are a driving mantra for our executive team and Board of Directors. Profitability: As a publicly traded company, we know we have a fiduciary responsibility to our shareholders, and it is our shareholders who allow us the privilege to serve our communities. We understand we must earn our independence each and every day and year after year which is why profitability is the first of our three strategic objectives. We believe we can achieve a 10% or greater EPS growth with a focus on three goals. First, we plan to expand 2 | 2025 ANNUAL REPORT our low-cost deposit base and pair it with single-digit loan growth. Second, we expect to grow our already strong noninterest income modestly. Together, these two income sources will improve top-line revenue, but at a rate of less than 10%. So, how can less than 10% gross income growth drive 10% net earnings growth? The answer lies with expense discipline. We intend to maintain expenses at current levels in the near future and keep expense growth lower than income growth over time. The formula is simple: modest net interest income growth, a slight improvement in noninterest income, and prudent expense management. Quite simply, growing income faster than expenses should result in doubledigit net income and EPS growth. People: I have been honored to be a part of our bank for nearly 25 years and have seen firsthand that having the right people is essential to reaching our full potential. Improving our culture, incentives, and accountability is paramount to our continued success. Over the past few years, we have attracted and retained some of the best banking talent I have ever seen. We have also strategically expanded our Board, resulting in enhanced corporate governance led by a remarkable, diverse, and talented group of directors. With our eye on expense discipline, we know how important it is to have the right bankers positioned where they can be most effective. Author Jim Collins said it best: [I]f we spend the vast majority of our time with people we really enjoy being on the bus with and who will never disappoint us then we will almost certainly have a great life As we consider the current and future needs of our bank, I am proud of the strong team we have and continue to build. Process & Technology: Perhaps one of the biggest challenges for any company that has been around a halfcentury is process improvement. Inertia is a powerful thing! With the heart of a community bank, we are driven to serve our customers throughout our footprint. To do this efficiently and effectively, processes must be continually assessed and improved as we strive to leverage technology to enhance the customer experience across all touchpoints. This synchronization is expected to both enhance customer interactions and increase efficiency. I am excited for 2026 as we work to make this our best year ever! While we maintain a weather eye on the economy and other risk factors, such as credit, interest rate, and fraud, we also see opportunities for solid loan and deposit growth and remain focused on providing the very best in banking. EXECUTIVE OFFICERS As noted in our investor deck, we are strategically centered on improving shareholder value through profitability growth, enhanced earning assets, and capital management, including long-term growth in tangible book value per share. When combined with our talented management team and process improvement focus, I am extremely optimistic for 2026 and beyond. Our entire banking team is working together to make this year our best yet! Sincerely, Kevin J. McPhaill President & CEO Christopher G. Treece Executive V.P. & CFO Michael W. Olague Executive V.P. & CBO Hugh F. Boyle Executive V.P. & CCO Natalia Coen Executive V.P. & CRO Bill Wade Executive V.P. & COO Kevin J. McPhaill President and Chief Executive Officer CORPORATE OFFICE Alexandra Blazar | Corporate Secretary 86 North Main Street | Porterville, CA 93257 | 559.782.4900 Info@BankoftheSierra.com | BankoftheSierra.com | SierraBancorp.com
4/7/2026 Letter Continued (Full PDF)
BSRR Stockholder/Shareholder Letter (SIERRA BANCORP) | www.StockholderLetter.com
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