Sierra Bancorp Reports Financial Results for Second Quarter and First Six Months of 2022

About this update from Sierra Bancorp

[{"type":"text","content":" PORTERVILLE, Calif.--(BUSINESS WIRE)--\nSierra Bancorp (Nasdaq: BSRR), parent of Bank of the Sierra, today announced its unaudited financial results for the three-and six-month periods ended June 30, 2022. Sierra Bancorp reported consolidated net income of $9.2 million, or $0.61 per diluted share, for the second quarter of 2022, compared to $11.7 million, or $0.76 per diluted share, in the second quarter of 2021. On a linked-quarter basis, the Company increased net income by $1.8 million, or 24%.\n\nFor the first six months of 2022, the Company recognized net income of $16.6 million as compared to $22.8 million for the same period in 2021. The Company's financial performance metrics for the first half of 2022 include an annualized return on average equity of 10.10%, a return on average assets of 0.98%, and diluted earnings per share of $1.10.\n\n“In this uncertain time of volatile interest rates and higher inflation, the strength of our loyal customer base provides us with a foundation of core deposits that position us to prudently increase loan production. I believe that these fundamentals remain a critical part of our success,” stated Kevin McPhaill, President and CEO. “It is through our entire banking team’s efforts that we continue to post solid financial results, and this last quarter is no exception with a 24% increase in net income on a linked quarter basis. Thanks to our strong capital position, recently expanded lending teams, and our low-cost core deposit base, we are excited about our prospects in the second half of 2022!” McPhaill concluded.\n\nFinancial Highlights\n\nQuarterly Changes (comparisons to the second quarter of 2021)\n\n\nNet interest income decreased $0.6 million, or 2%, due primarily to a $0.4 million increase in interest expense from the issuance of subordinated debt during the third quarter of 2021 and higher cost of funds on interest-bearing liabilities due to the recent increases in the prime interest rate.\n\n\nNoninterest income increased $3.8 million, primarily due to a $3.2 million gain on sale of other assets, $0.4 million in life insurance proceeds, a $0.2 million recovery on an acquired loan, and a $1.0 million recovery of prior year legal expenses, partially offset by a $1.4 million negative variance in corporate owned life insurance with income linked to the Company’s nonqualified deferred...

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