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Here are 1-3 brief analogies to describe Sierra Bancorp (BSRR):

• A smaller, California Central Valley-focused US Bancorp.
• A single-state, locally-branded Zions Bancorporation for California's Central Valley.

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Sierra Bancorp, through its subsidiary Bank of the Sierra, provides a range of financial services, primarily categorized as:

• Deposit Services: Accepting funds from individuals and businesses into various checking, savings, money market, and certificate of deposit accounts.
• Lending Services: Providing funds through various types of loans, including real estate loans (commercial and residential), commercial and industrial loans, and consumer loans.
• Treasury Management: Offering cash management solutions to businesses, such as remote deposit capture, ACH services, and wire transfers.
• Wealth Management: Providing investment management, financial planning, and trust administration services for individuals and institutions.
• Digital Banking: Offering convenient online and mobile banking platforms for account management, bill payments, and transfers.

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Sierra Bancorp (symbol: BSRR) operates as the holding company for Bank of the Sierra, a community bank primarily serving the Central Valley of California. As a financial institution, it sells banking services primarily to individuals and businesses rather than to a few major corporate customers in a typical B2B supplier relationship.

The company serves the following primary categories of customers:

1. Individuals/Consumers: This category includes retail customers who utilize a wide range of personal banking products such as checking accounts, savings accounts, money market accounts, certificates of deposit (CDs), residential mortgage loans, home equity loans, personal loans, and auto loans.

2. Small to Medium-sized Businesses (SMBs): Sierra Bancorp provides comprehensive financial services to local businesses. This includes commercial loans for real estate, equipment, and working capital, lines of credit, business checking and savings accounts, treasury management services, and Small Business Administration (SBA) guaranteed loans.

3. Agricultural Businesses: Given its strategic location in California's Central Valley, a major agricultural region, a significant portion of the bank's customer base consists of agricultural enterprises. These customers rely on specialized agricultural loans for crops, livestock, equipment, and farmland, as well as general banking services tailored to the agricultural sector.

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Kevin McPhaill President & CEO

Kevin McPhaill was appointed President and Chief Executive Officer of Sierra Bancorp and Bank of the Sierra effective April 1, 2015. He has been with Bank of the Sierra since June 2001, serving as regional manager, then Executive Vice President and Chief Banking Officer in 2006, and President and Chief Operating Officer in 2014 before assuming his current role. Mr. McPhaill has over 24 years of experience in the banking industry. He holds an undergraduate degree from Fresno Pacific University, an MBA with a concentration in Finance from Fresno State University, and completed post-graduate training at the Graduate School of Banking at Southern Methodist University. He also serves on the Tulare County Economic Development Corporation's Board of Directors.

Christopher G. Treece Executive VP & CFO

Christopher G. Treece serves as the Executive Vice President and Chief Financial Officer of Sierra Bancorp. He is a CPA with expertise in bank accounting and finance, SEC reporting, tax, treasury, regulatory reporting, budgeting, insurance, and mergers and acquisitions. Mr. Treece worked for RSM McGladrey from 1996 to 2003, providing services to community banks, and began his career in 1991 with KPMG, primarily serving financial institutions. He holds a bachelor's degree in Accounting and a Masters of Accountancy from Truman State University.

Michael Olague Executive VP & Chief Banking Officer

Michael Olague is the Executive Vice President and Chief Banking Officer for Sierra Bancorp and Bank of the Sierra, a position he assumed on January 1, 2015. He brings over 37 years of banking experience to his role. Prior to this, he was the Senior Vice President and Area Manager for Bank of the Sierra's Bakersfield and Delano markets. His extensive background includes leadership roles at major institutions such as Bank of America and Rabobank. Mr. Olague is a graduate of California State University Bakersfield and completed the Graduate Banking School at the University of Virginia. He is also actively involved in the Bakersfield community, serving on various boards.

Hugh F. Boyle Executive VP & Chief Credit Officer

Hugh F. Boyle serves as the Executive Vice President and Chief Credit Officer for Sierra Bancorp. His prior experience includes serving as Interim CEO/CRO at Banc of California, Inc., Chief Risk Officer at Firstcaribbean International Bank, and Chief Credit Officer at JPMorgan Chase & Co. Mr. Boyle studied at Penn State University.

Natalia Coen Executive VP & Chief Risk Officer

Natalia Coen holds the position of Executive Vice President and Chief Risk Officer for both Sierra Bancorp and Bank of the Sierra. In this role, she is responsible for overseeing the Bank's risk management program.

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Key Risks to Sierra Bancorp (BSRR)

1. Credit Concentration Risk in Agricultural Lending: Sierra Bancorp faces a significant risk due to its credit concentration in agricultural loans. This was highlighted by a substantial increase in credit loss provisions, driven by a single large agricultural loan. Given the company's deep ties to agricultural communities in California's Central Valley, a downturn in this sector or issues with specific large agricultural borrowers could disproportionately impact its loan portfolio and financial performance.
2. Interest Rate Volatility and Deposit Migration Risk: The banking industry, including Sierra Bancorp, is susceptible to shifts in interest rates, which directly affect its net interest margin and profitability. Specifically, deposit migration risk is identified as a significant earnings threat, as the bank's noninterest-bearing deposits, while currently a competitive advantage, are highly rate-sensitive and could reprice or migrate to higher-yielding alternatives in a changing interest rate environment. This could lead to increased funding costs and pressure on net interest income.
3. Intense Market Competition and Technological Disruption: Sierra Bancorp operates in a highly competitive banking environment in California, facing intense competition from both existing regional banks and the increasing threat of fintech disruptors. The bank's limited scale advantage compared to larger national banks and its reliance on local brand reputation, rather than unique patents or technology, make it vulnerable to competitive pressures on rates, services, and the need for continuous investment in digital infrastructure to meet evolving customer expectations.

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Sierra Bancorp (symbol: BSRR) operates primarily as a community and regional bank in California, offering a diverse range of retail and commercial banking services. Its main products and services include various deposit accounts such as checking, savings, money market, time deposits, and retirement accounts, as well as a variety of loan products, including agricultural, commercial, consumer, real estate, construction, and mortgage loans. The company's operations are concentrated in California's South San Joaquin Valley, the Central Coast, Ventura County, and the Sacramento area.

Addressable Markets:

• U.S. Community Banking Market: The market for community banking in the U.S. was valued at approximately USD 6.35 billion in 2024. It is projected to grow, reflecting sustained demand for localized banking models and regulatory support.
• California Commercial Banking Market: The market size of the Commercial Banking industry in California is estimated to be $125.7 billion in 2025. This market has experienced growth at an average annual rate of 7.1% from 2020 to 2025.
• Central Valley California Deposit Market: In June 2023, the total deposits across financial institutions in the Central Valley of California (encompassing Fresno, Kings, Madera, and Tulare counties) amounted to $29.35 billion. Bank of the Sierra held a 6.56% share of this local deposit market, positioning it as the largest locally owned community bank in the region.

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Sierra Bancorp (BSRR) is expected to drive future revenue growth over the next two to three years through several key strategies, primarily focusing on expanding its core banking activities and enhancing profitability.

Here are 3-5 expected drivers of future revenue growth:

1. Expansion of Loan Portfolio and Customer Deposits: The company aims to continue its growth trajectory by focusing on loan and deposit expansion. Sierra Bancorp has demonstrated a focus on expanding its loan portfolio and customer base, with gross loans increasing by $57.2 million, or 9% annualized, to $2.5 billion, and customer deposits rising by $13.3 million, or 2% annualized, to $2.7 billion in the third quarter of 2025. This organic growth in its core banking business is a fundamental driver of increased interest income.
2. Improvement in Net Interest Income and Margin: Sierra Bancorp has shown an ability to improve its net interest income and net interest margin. In the third quarter of 2025, net interest income grew by $1.3 million, or 4%, compared to the prior linked quarter, and the net interest margin increased to 3.78% from 3.68%. This improvement is attributed to an enhanced loan yield, which reached 5.36%, and the company's ability to maintain a low cost of funds, recorded at 1.45%. Continued optimization of its interest-earning assets and liabilities will contribute to revenue growth.
3. Growth in Noninterest Income: The company has demonstrated efforts to grow its noninterest income, which contributes to revenue diversification. While there was a year-to-date decline in noninterest income, Sierra Bancorp reported a 12% rise in noninterest income in the second quarter of 2025 and a 3% increase in the third quarter of 2025 compared to the same quarter in the prior year. The company maintains a significant level of noninterest income relative to industry peers, indicating this remains a strategic focus to bolster overall revenue.

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Share Repurchases

• Sierra Bancorp authorized a new share repurchase program on October 24, 2025, allowing for the repurchase of up to 1,000,000 shares of its common stock, effective from November 1, 2025, until October 31, 2026. This program superseded a previous authorization from October 17, 2024, for 1,000,000 shares, under which no shares remained available for repurchase.
• During the third quarter of 2025, the company repurchased 190,342 shares of common stock at an average price of $30.55.
• In the first quarter of 2025, Sierra Bancorp repurchased 476,770 shares of stock at an average price of $29.71. For the fourth quarter of 2024, 229,850 shares were repurchased at an average price of $29.38, with an additional 112,896 shares repurchased through January 23, 2025.

Share Issuance

• No significant share issuances by Sierra Bancorp were identified over the last 3-5 years; capital allocation in this area has primarily focused on share repurchases to reduce outstanding shares.

Outbound Investments

• In 2023, the company increased its investment securities by $67.5 million through strategic purchases of high-quality AAA collateralized loan obligations and government agency securities.
• In early January 2024, as part of a securities strategy, Sierra Bancorp sold $196.7 million of bonds, which resulted in a $14.5 million loss recognized in 2023.

Capital Expenditures

• In 2023, Sierra Bancorp experienced a $19.0 million increase in operating lease right-of-use assets following the sale and leaseback of 11 bank-owned branch buildings. Specific traditional capital expenditure figures were not readily available in the provided information.