SIERRA BANCORP
For the period ended Sep 30, 2026. Filed Oct 30, 2026.
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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.
Sep 30, 2026 · Filed Oct 30, 2026
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Nonperforming Assets
Nonperforming assets are currently comprised of loans for which the Company is no longer accruing interest and foreclosed assets.
Nonperforming assets
| September 30, 2026 | December 31, 2025 | September 30, 2025 | |
|---|---|---|---|
| Nonperforming loans: | | | |
| Real estate: | | | |
| Residential real estate | $316 | $210 | $218 |
| Commercial real estate | 5,095 | — | — |
| Other construction/land | — | — | — |
| Farmland | 3,060 | 1,717 | 1,717 |
| Total real estate nonperforming loans | 8,471 | 1,927 | 1,935 |
| Other commercial | 876 | 11,304 | 12,071 |
| Consumer loans | — | — | — |
| Total nonperforming loans | 9,347 | 13,231 | 14,006 |
| | | | |
| Foreclosed assets | — | 1,565 | 1,839 |
| Total nonperforming assets | $9,347 | $14,796 | $15,845 |
| Nonperforming loans as a % of total gross loans | 0.38% | 0.52% | 0.56% |
| Nonperforming assets as a % of total gross loans and foreclosed assets | 0.38% | 0.58% | 0.64% |
Total nonperforming assets, comprised of nonaccrual loans and foreclosed assets, decreased $5.4 million, or 37%, to $9.3 million at September 30, 2026, from $14.8 million at December 31, 2025. The Company's ratio of nonperforming assets to gross loans plus foreclosed assets improved to 0.38% at September 30, 2026, compared to 0.58% at December 31, 2025. The improvement reflects the successful resolution of several criticized and nonperforming credit relationships. The increase in nonaccrual Farmland balances was primarily attributable to a single credit relationship with an estimated loan-to-value ratio of approximately 69%. Likewise, the increase in nonaccrual Commercial Real Estate balances was concentrated in a separate credit relationship with an estimated loan-to-value ratio of approximately 62%. Management believes both relationships remain adequately secured.
The Company had no foreclosed assets at September 30, 2026, compared to $1.6 million at December 31, 2025, as the remaining foreclosed property was resolved during the first quarter of 2026. All nonperforming loans are individually evaluated for credit losses on a quarterly basis, and Management believes the allowance for credit losses established for these loans is appropriate. Additionally, fair values of foreclosed assets are monitored quarterly and impairments are recognized when Management estimates that the expected value to be recovered has fallen below the carrying value of these assets.
An action plan is in place for each non-accruing loan, and they are all being actively managed. Collection efforts are continuously pursued for all nonperforming loans, but the Company cannot provide assurance that they will be resolved in a timely manner or that nonperforming balances will not increase.
Loans past due 30 to 89 days and still accruing declined favorably to $2.5 million at September 30, 2026, compared to $6.8 million at December 31, 2025. Classified loan levels improved to $27.0 million at September 30, 2026, compared to $31.4 million at December 31, 2025, and $29.3 million at June 30, 2026, reflecting continued improvement in overall portfolio risk characteristics. All past due loans are under Management supervision, and every effort is being taken to assist the borrowers and manage credit risk in this regard.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.