Sierra Bancorp Announces Share Repurchase Program and Declares Quarterly Cash Dividend

Rhea-AI Summary

Sierra Bancorp (Nasdaq: BSRR), parent of Bank of the Sierra, has announced a new share repurchase program and declared a quarterly cash dividend. The Board of Directors has approved the repurchase of up to 1,000,000 shares of outstanding common stock, effective from November 1, 2024, to October 31, 2025. This program replaces the current one expiring on October 31, 2024.

Additionally, a regular quarterly cash dividend of $0.24 per share has been declared, payable on November 12, 2024, to shareholders of record as of October 31, 2024. This marks the company's 103rd consecutive quarterly cash dividend. Sierra Bancorp has consistently paid dividends since 1987, transitioning from annual to quarterly payments in 1998.

Positive

• Authorization of a new share repurchase program for up to 1,000,000 shares
• Declaration of a $0.24 per share quarterly cash dividend
• Consistent dividend payments since 1987, with 103 consecutive quarterly dividends
• Bank of the Sierra recognized with a 5-star rating from Bauer Financial in 2024

Negative

• None.

Insights

Financial Analyst

Sierra Bancorp's announcement of a new share repurchase program and quarterly dividend declaration is a positive signal for investors. The authorization to repurchase up to 1 million shares demonstrates confidence in the company's financial position and a commitment to returning value to shareholders. This program, extending from November 2024 to October 2025, provides flexibility in capital management.

The quarterly cash dividend of $0.24 per share maintains the company's impressive track record of 103 consecutive quarterly dividends. This consistency in dividend payments since 1987 highlights Sierra Bancorp's stable financial performance and shareholder-friendly policies.

The company's strong regional presence, diverse banking services and recent recognition as one of the strongest community banks further support its financial health. However, investors should monitor economic conditions and interest rate trends, as these factors can impact the banking sector's performance and the company's ability to maintain its dividend and repurchase programs.

Market Research Analyst

Sierra Bancorp's strategic moves reflect broader trends in the banking industry. The share repurchase program can be seen as a response to potential undervaluation in the stock market, which is common among regional banks. This initiative may help support the stock price and improve earnings per share metrics.

The consistent dividend policy aligns with investor preferences for steady income, especially in the current economic environment. With a market cap of $416,497,383, Sierra Bancorp's ability to maintain these shareholder-friendly policies suggests a robust balance sheet and efficient capital management.

The company's expansion into various California counties and its diversified services, including specialized lending and online banking, indicate adaptability to changing market demands. The 5-star Bauer Financial rating enhances credibility and may attract risk-averse investors seeking stable financial institutions. These factors position Sierra Bancorp favorably in the competitive regional banking landscape.

PORTERVILLE, Calif.--(BUSINESS WIRE)-- Sierra Bancorp (Nasdaq: BSRR), parent of Bank of the Sierra, announced that its Board of Directors has approved a new share repurchase program authorizing the Company to repurchase up to one million (1,000,000) shares of its outstanding common stock, from time to time, commencing after the current share repurchase program expires on October 31, 2024, and continuing until October 31, 2025. This share repurchase program replaces and supersedes the prior share repurchase program. Shares may be repurchased in open-market transactions or privately negotiated transactions executed in compliance with applicable federal and state securities laws. The timing of the repurchases and the number of shares repurchased under the program will depend on a variety of factors including price, trading volume, corporate and regulatory requirements, and market conditions. The Board further authorized Management to enter into a 10b5-1 Plan with a nationally recognized broker-dealer to facilitate share repurchases as appropriate.

The Company also announced that its Board of Directors has declared a regular quarterly cash dividend of $0.24 per share. The dividend was approved subsequent to the Board’s review of the Company’s financial performance and capital for the quarter ended September 30, 2024, and will be paid on November 12, 2024, to shareholders of record as of October 31, 2024. Counting dividends paid by Bank of the Sierra prior to the formation of Sierra Bancorp the Company has paid regular cash dividends to shareholders every year since 1987, comprised of annual dividends through 1998 and quarterly dividends thereafter. The dividend noted in today’s announcement marks the Company’s 103^rd consecutive quarterly cash dividend.

Sierra Bancorp is the holding Company for Bank of the Sierra (www.bankofthesierra.com), which is in its 47^th year of operations and is one of the largest independent banks headquartered in the South San Joaquin Valley. Bank of the Sierra is a community-centric regional bank, which offers a broad range of retail and commercial banking services through full-service branches located within the counties of Tulare, Kern, Kings, Fresno, Ventura, San Luis Obispo, and Santa Barbara. The Bank also maintains an online branch and provides specialized lending services through an agricultural credit center in Templeton, California, and a dedicated loan production office in Roseville, California. In 2024, Bank of the Sierra was recognized as one of the strongest and top-performing community banks in the country, with a 5-star rating from Bauer Financial.

Forward-Looking Statements

The statements contained in this release that are not historical facts are forward-looking statements based on management's current expectations and beliefs concerning future developments and their potential effects on the Company. Readers are cautioned not to unduly rely on forward looking statements. Actual results may differ from those projected. These forward-looking statements involve risks and uncertainties including but not limited to the health of the national and local economies including the impact to the Company and its customers resulting from changes to, and the level of, inflation and interest rates; changes in laws, rules, regulations, or interpretations to which the Company is subject; the Company’s ability to maintain and grow its deposit base; loan demand and continued portfolio performance, the Company's ability to attract and retain skilled employees, customers' service expectations; cyber security risks: the Company's ability to successfully deploy new technology, the success of acquisitions and branch expansion; operational risks including the ability to detect and prevent errors and fraud; the effectiveness of the Company’s enterprise risk management framework; the impact of adverse developments at other banks, including bank failures, that impact general sentiment regarding the stability and liquidity of banks that could affect stock price; changes to valuations of the Company’s assets and liabilities including the allowance for credit losses, earning assets, and intangible assets; changes to the availability of liquidity sources including borrowing lines and the ability to pledge or sell certain assets; costs related to litigation; the effects of severe weather events, pandemics, other public health crises, acts of war or terrorism, and other external events on our business; and other factors detailed in the Company's SEC filings, including the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of the Company's most recent Form 10‑K and Form 10‑Q.

Category: Financial
Source: Sierra Bancorp

View source version on businesswire.com: https://www.businesswire.com/news/home/20241018507008/en/

Kevin McPhaill, President/Chief Executive Officer

(559) 782-4900 or (888) 454-BANK

www.sierrabancorp.com

Source: Sierra Bancorp

FAQ

How many shares is Sierra Bancorp (BSRR) authorized to repurchase under the new program?

Sierra Bancorp is authorized to repurchase up to 1,000,000 shares of its outstanding common stock under the new share repurchase program.

What is the amount of the quarterly cash dividend declared by Sierra Bancorp (BSRR)?

Sierra Bancorp has declared a regular quarterly cash dividend of $0.24 per share.

When does Sierra Bancorp's (BSRR) new share repurchase program begin and end?

The new share repurchase program begins after October 31, 2024 (when the current program expires) and continues until October 31, 2025.

What is the payment date for Sierra Bancorp's (BSRR) recently declared dividend?

The dividend will be paid on November 12, 2024, to shareholders of record as of October 31, 2024.