The EPS miss and elevated credit loss expense from a single agricultural loan are the primary negatives. However, the stable NIM, strong deposit growth, and aggressive buyback provide a floor. Watch for further credit deterioration in the agricultural portfolio and whether the elevated loan pipeline materializes into growth in H2.
Price Chart
Executive Summary
Sierra Bancorp reported Q2 2026 EPS of $0.77, a 16.8% miss vs consensus of $0.93, and net income fell 7% YoY to $9.9M. The miss was driven by a $2.5M specific reserve on a single agricultural loan and $0.5M in severance costs from an executive restructuring, partially offset by stable net interest margin and lower expenses. While YTD results remain strong (EPS +20% YoY), the quarterly miss and credit quality concerns are the headline takeaway for traders.
Key Financial Metrics
Key Facts
- Q2 2026 EPS of $0.77 missed consensus of $0.93 by 16.8%
- Net income fell 7% YoY to $9.9M from $10.6M
- Credit loss expense surged to $2.3M from $1.2M YoY due to a $2.5M specific reserve on an agricultural loan
- Noninterest expense included $0.5M in severance and recruiting costs from executive restructuring
- Net interest margin stable at 3.74%, up 6 bps YoY
- Tangible book value per share rose to $26.19 from $23.98 YoY
- Repurchased 396,429 shares in H1 2026
- Nonperforming assets decreased to $10.5M from $14.8M at Dec 2025
Financial Impact
EPS miss of $0.16 vs consensus; net income decline of $0.7M YoY; credit loss expense increase of $1.1M YoY
Risk Factors
- Further credit deterioration in agricultural loan portfolio
- Continued margin compression if interest rates decline
- Inability to convert elevated loan pipeline into growth
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001104659-26-086884 |
| Document: bsrr-20260727x8k.htm | 0001104659-26-086884 |
| Document: 0001104659-26-086884-index-headers.html | 0001104659-26-086884 |
| Document: 0001104659-26-086884-index.html | 0001104659-26-086884 |
| Document: 0001104659-26-086884.txt | 0001104659-26-086884 |
| 8-K Data (Synthetic) | 0001104659-26-086884 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 26, 2026 today | 8-K | — | awaiting T+60 | — | — |
Oct 23, 2026 3d ago | 8-K | $40.63 | awaiting T+60 | — | $43.01 (+5.87%) |
Jul 27, 2026 13w ago | 8-K | $41.16 $39.23 | ▲ +4.69% | ▲ +8.39% | $43.01 (−4.51%) |
Jul 27, 2026 13w ago | 8-K | $41.16 $39.23 | ▼ −4.69% | ▼ −8.39% | $43.01 (+4.51%) |
Jul 24, 2026 13w ago | 8-K | $41.88 $39.23 | ▼ −6.33% | ▼ −10.06% | $43.01 (+2.71%) |
May 29, 2026 21w ago | Insider Cluster | $37.68 $39.46 | ▲ +4.72% | ▲ +3.49% | $43.01 (+14.16%) |
May 22, 2026 22w ago | Insider Cluster | $38.44 $39.72 | ▲ +3.33% | ▲ +0.61% | $43.01 (+11.90%) |
May 4, 2026 25w ago | 8-K | $35.82 $41.05 | ▲ +14.60% | ▲ +12.74% | $43.01 (+20.09%) |
Apr 27, 2026 26w ago | 8-K | $36.82 $41.47 | ▲ +12.64% | ▲ +7.86% | $43.01 (+16.84%) |
Apr 24, 2026 26w ago | 8-K | $36.01 $41.86 | ▲ +16.24% | ▲ +11.16% | $43.01 (+19.45%) |
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