Sierra Bancorp Q3 net income jumps 58% on lower credit losses

Overview

• California community bank's Q3 net income and EPS rose sharply from prior year

• Results driven by lower credit loss provision, higher net interest income, and reduced expenses

• Company reported improved asset quality and efficiency metrics for the quarter

Outlook

• Company did not provide specific financial guidance for upcoming quarters or the full year in the press release

Result Drivers

• CREDIT LOSS BENEFIT - Co said net income rose mainly due to reversal of credit loss provision after payoff of previously reserved lumber-related loan

• NET INTEREST INCOME RECOVERY - Net interest income increased in Q3, helped by $1.1 mln recovery of interest on agricultural nonperforming loan paid in full

• LOWER EXPENSES - Noninterest expense declined in Q3, mainly due to reduced salaries, employee benefits, and deposit service costs

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy."

• Wall Street's median 12-month price target for Sierra Bancorp is $42.00, about 0.6% above its October 23 closing price of $41.74

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 11 three months ago

Reuters Recommended Reads

• Oct 26 - HBT Financial Q3 adjusted net income beats on higher loan yields

• Oct 26 - Lakeland Financial Q3 net income rises on commercial loan growth

• Oct 26 - Bank of Hawaii Q3 net income rises on higher net interest income

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)