May 23, 2024
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Bank of the Sierra reports higher net income in Q1

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Sierra Bancorp, the parent company of Bank of the Sierra, announced its results for the first quarter of 2024 on April 23, noting that consolidated net income was at $9.3 million for the quarter, up from $8.8 million in the same quarter a year ago.

According to the financial statements, the “favorable variance” in net income came largely from a $600,000 increase in net interest income.

Bank of the Sierra is headquartered in Porterville, but has 10 branches in the tri-county area.

In addition to rising net income, Bank of the Sierra also saw its return on average assets and return on average equity at 1.06% and 11.09%, respectively, in the first quarter of 2024 as compared to 0.97% and 11.53%, respectively, in the first quarter of 2023.

The bank’s total deposits for the quarter increased by $85.8 million during the first quarter of 2024, while loan growth was at $66.8 million during the quarter.

Non Interest-bearing deposits were at $969 million at the end of the quarter, representing 34% of total deposits. Uninsured deposits were approximately 28% of total deposit balances.

“Our first quarter results demonstrate our strength and commitment to banking fundamentals coupled with strategic repositioning, especially in this challenging rate environment that continues to affect the banking industry,” Kevin McPhaill, CEO and President, said in a presss release. 

“Following the completion of our balance sheet restructuring last quarter, our return on assets and net interest margin both showed strong improvement this quarter. In addition, both our capital and liquidity positions strengthened. We also grew outstanding loans by 3.2% during the quarter while maintaining strong total and low-cost deposits.”

Bank of the Sierra stock closed at $18.93 on April 23, with shares down about 17% since the start of the year.