SIERRA BANCORP
For the period ended Mar 31, 2026. Filed May 1, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed May 1, 2026
Extracted filing text, with the paragraph anchors used by the comparison.
See the whole filing, with its images and exhibitsContents
Allowance for Credit Losses on Loans
ALLOWANCE FOR CREDIT LOSSES* – LOANS*
The allowance for credit losses on loans, a contra-asset, is established through periodic provisions for credit losses on loans. It is maintained at a level that is considered adequate to measure expected losses on individually identified loans, as well as expected losses inherent in the remaining loan portfolio. Specifically identifiable and quantifiable losses are immediately charged off against the allowance; recoveries are generally recorded only when sufficient cash payments are received subsequent to the charge-off.
The Company's allowance for credit losses on loans and leases was $21.3 million at March 31, 2026, as compared to $21.5 million at December 31, 2025. The decrease resulted from net charge‑offs during the quarter of $0.3 million, partially offset by a provision for credit losses of $0.1 million, reflecting Management’s assessment of credit quality, portfolio composition, and current economic conditions.
The following tables highlight the coverage ratios by loan category at March 31, 2026, and December 31, 2025 (dollars in thousands, unaudited):
| | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|
| · · As of March 31, 2026 | ||||||||||
| | | | Balance | | | Total Allowance | | Percent of Portfolio | | Coverage Ratio (1) |
| Real estate: | | | | | | | | | | |
| Commercial real estate | | $1,381,770 | | $15,977 | | 56.01% | | 1.16% | ||
| Other construction/land | | | 15,242 | | | 299 | | 0.62% | | 1.96% |
| Farmland | | | 66,218 | | | 542 | | 2.68% | | 0.82% |
| Total real estate (2) | | | 1,463,230 | | | 16,818 | | 59.32% | | 1.15% |
| Other Commercial | | | 172,653 | | | 2,351 | | 7.00% | | 1.36% |
| Consumer loans (including overdrafts) | | | 2,597 | | | 109 | | 0.11% | | 4.20% |
| Subtotal (2) (3) | | | 1,638,480 | | | 19,278 | | 66.42% | | 1.18% |
| Residential real estate | | | 349,860 | | | 1,368 | | 14.18% | | 0.39% |
| Mortgage warehouse lines | | | 478,454 | | | 604 | | 19.40% | | 0.13% |
| Total Loans | | $2,466,794 | | $21,250 | | 100.00% | | 0.86% | ||
| | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|
| · · As of December 31, 2025 | ||||||||||
| | | | Balance | | | Total Allowance | | Percent of Portfolio | | Coverage Ratio (1) |
| Real estate: | | | | | | | | | | |
| Commercial real estate | | $1,390,890 | | $16,354 | | 54.61% | | 1.18% | ||
| Other construction/land | | | 14,414 | | | 296 | | 0.57% | | 2.05% |
| Farmland | | | 68,307 | | | 496 | | 2.68% | | 0.73% |
| Total real estate (2) | | | 1,473,611 | | | 17,146 | | 57.86% | | 1.16% |
| Other Commercial | | | 192,577 | | | 2,146 | | 7.56% | | 1.11% |
| Consumer loans (including overdrafts) | | | 2,810 | | | 112 | | 0.11% | | 3.99% |
| Subtotal (2) (3) | | | 1,668,998 | | | 19,404 | | 65.53% | | 1.16% |
| Residential real estate | | | 359,514 | | | 1,411 | | 14.12% | | 0.39% |
| Mortgage warehouse lines | | | 518,333 | | | 665 | | 20.35% | | 0.13% |
| Total Loans | | $2,546,845 | | $21,480 | | 100.00% | | 0.84% | ||
| (1) | Coverage ratio equals allowance for credit losses on loans divided by total loans on the amortized cost basis. |
| (2) | Does not include residential real estate. |
| (3) | Does not include mortgage warehouse lines. |
The allowance as a percentage of gross loans was 0.86% and 0.84%, at March 31, 2026, and December 31, 2025, respectively. 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 March 31, 2026, but no assurance can be given that the Company will not experience substantial future losses relative to the size of the credit loss allowance for loans. The total allowance for credit losses on loans of $21.3 million at March 31, 2026, included $0.6 million of allowance related to $478.5 million of mortgage warehouse lines. A separate allowance of $0.7 million for potential credit losses inherent in unused commitments is included in other liabilities at March 31, 2026, a decrease of $0.1 million, from December 31, 2025.
Allowance for Credit Losses on Loans
| | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|
| · · For the three months ended · · For the threemonths ended · · For the year ended | |||||||||
| · · March 31, · · March 31, · · December 31, | |||||||||
| Balances: · · 2026 · · 2025 · · 2025 | |||||||||
| Average gross loans outstanding during period (1) | | $2,416,244 | | $2,322,794 | | $2,409,304 | |||
| Gross Loans outstanding at end of period | | $2,466,891 | | $2,306,762 | | $2,546,880 | |||
| | | | | | | | | | |
| Allowance for credit losses on loans: | | | | | | | | | |
| Balance at beginning of period | | $21,480 | | $24,830 | | $24,830 | |||
| Provision charged to expense | | | 77 | | | 1,961 | | | 6,095 |
| Charge-offs | | | | | | | | | |
| Real estate | | | | | | | | | |
| Commercial real estate | | | 90 | | | — | | | 1,421 |
| Total real estate | | | 90 | | | — | | | 1,421 |
| Other commercial | | | 88 | | | 57 | | | 8,022 |
| Consumer loans | | | 216 | | | 329 | | | 907 |
| Total | | $394 | | $386 | | $10,350 | |||
| Recoveries | | | | | | | | | |
| Real estate | | | | | | | | | |
| Farmland | | | — | | | 410 | | | 410 |
| Total real estate | | | — | | | 410 | | | 410 |
| Other commercial | | | 42 | | | 14 | | | 42 |
| Consumer loans | | | 45 | | | 221 | | | 453 |
| Total | | $87 | | $645 | | $905 | |||
| Net loan charge-offs | | $307 | | $(259) | | $9,445 | |||
| Balance at end of period | | $21,250 | | $27,050 | | $21,480 | |||
| | | | | | | | | | |
| RATIOS | | | | | | | | | |
| Net charge-offs to average loans (annualized) | | | 0.05% | | | (0.05)% | | | 0.39% |
| Allowance for credit losses on loans to gross loans at end of period | | | 0.86% | | | 1.17% | | | 0.84% |
| Net loan charge-offs to allowance for credit losses on loans at end of period | | | 1.44% | | | (0.96)% | | | 43.97% |
| Net loan charge-offs to provision for credit losses on loans | | | 398.70% | | | (13.21)% | | | 154.96% |
| (1) | Average balances are obtained from the best available daily or monthly data and are net of deferred fees and related direct costs. |
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.