Sierra Bancorp Approves 1 Million-Share Repurchase Program and Declares $0.27 Quarterly Dividend
Sierra Bancorp (NASDAQ: BSRR), the parent company of Bank of the Sierra, has announced that its Board of Directors has approved a new common stock repurchase program authorizing the company to buy back up to 1 million shares of its outstanding common stock. The company also declared a regular quarterly cash dividend of $0.27 per share, continuing its long-standing history of returning capital to shareholders.
The new share repurchase program will begin after the expiration of the company’s existing program on October 31, 2026, and will remain in effect through October 31, 2027. The authorization replaces and supersedes the previous repurchase program, which was approved on October 23, 2025, and also permitted the repurchase of up to 1 million shares.
The announcements reflect Sierra Bancorp’s ongoing approach to capital management and shareholder returns. Through its share repurchase authorization and quarterly dividend, the company intends to maintain flexibility in managing its capital while continuing to provide direct returns to its investors.
Sierra Bancorp Authorizes Repurchase of Up to 1 Million Shares
Sierra Bancorp’s Board of Directors has approved a new stock repurchase program that allows the company to repurchase up to 1 million shares of its outstanding common stock over the authorization period.
The program is scheduled to commence after the current share repurchase authorization expires on October 31, 2026, and continue until October 31, 2027. The new authorization will replace the existing program rather than operate as an extension of the previous authorization.
Under the current program, which was approved on October 23, 2025, the company retains authorization to repurchase 381,532 shares before the program expires. Those shares remain available for repurchase under the existing authorization through October 31, 2026, subject to applicable requirements and the company’s decisions regarding the timing of transactions.
The new program provides Sierra Bancorp with another opportunity to repurchase its shares over the following year. However, the authorization does not require the company to purchase a specific number of shares or complete the entire repurchase amount.
Instead, the timing and volume of purchases will depend on several factors, including the prevailing share price, trading volume, market conditions, corporate considerations and regulatory requirements.
This flexibility allows the company to assess market conditions and determine whether share repurchases are appropriate at particular times during the program period.
Repurchases May Occur Through Open-Market and Private Transactions
Sierra Bancorp may conduct share repurchases through open-market transactions or privately negotiated transactions, provided the purchases comply with applicable federal and state securities laws.
Open-market repurchases generally involve buying shares through the public stock market. Privately negotiated transactions, by contrast, involve arrangements made directly with shareholders or other counterparties under applicable legal requirements.
The availability of these different methods gives the company flexibility in implementing its repurchase strategy. The appropriate approach may depend on market liquidity, the company’s capital position, prevailing share prices and other relevant considerations.
Sierra Bancorp has not committed to a fixed schedule for completing the authorized purchases. The company will determine the timing and number of shares repurchased based on its assessment of financial conditions and other factors that could influence the program’s execution.
The authorization also does not establish a guaranteed minimum level of repurchases. The company may purchase fewer than the maximum number of authorized shares or choose not to repurchase shares under the program if circumstances make doing so inappropriate.
These conditions are important for investors to consider when evaluating the potential effect of the repurchase authorization on the company’s outstanding share count and capital allocation strategy.
Board Authorizes a Rule 10b5-1 Repurchase Plan
As part of its approval, Sierra Bancorp’s Board of Directors has authorized management to enter into a Rule 10b5-1 plan with a nationally recognized broker-dealer to facilitate share repurchases when appropriate.
Rule 10b5-1 trading plans can provide a framework for executing securities transactions under predetermined instructions or arrangements that satisfy applicable legal requirements. For a company implementing a share repurchase program, such a plan may help establish an organized approach to purchasing shares over time.
The Board’s authorization gives management the ability to establish such an arrangement in connection with the repurchase program. It does not, by itself, confirm that a plan has already been entered into or specify the timing, pricing or volume of any future purchases.
The company will continue to consider factors such as market prices, trading activity, regulatory obligations and corporate requirements when determining how to implement its capital management decisions.
The use of a broker-dealer to facilitate repurchases may provide an additional mechanism for carrying out transactions under the approved authorization. Any purchases made through such an arrangement would remain subject to applicable securities laws and the terms of the relevant plan.
For shareholders, the new authorization represents an additional tool available to Sierra Bancorp as it evaluates how to allocate capital between share repurchases, dividends and other corporate priorities.
Sierra Bancorp Declares Quarterly Cash Dividend of $0.27 per Share
In addition to approving the new share repurchase program, Sierra Bancorp announced that its Board of Directors has declared a regular quarterly cash dividend of $0.27 per share.
The dividend was approved following the Board’s review of the company’s financial performance and capital position for the quarter ended September 30, 2026.
The company stated that the dividend will be paid on November 9, 2026, to shareholders of record as of November 2, 2026.
Investors who hold eligible shares as of the applicable record date will be entitled to receive the dividend, subject to the usual processing and settlement arrangements. The payment represents another quarterly distribution under the company’s established dividend practice.
Cash dividends provide shareholders with a direct return on their investment without requiring them to sell their shares. For banking companies, decisions regarding dividend payments generally involve consideration of profitability, capital adequacy, operating performance, regulatory requirements and anticipated financial needs.
Sierra Bancorp’s latest dividend declaration follows the Board’s review of the company’s financial performance and capital for the third quarter. Although the announcement confirms the declared payment, future dividends will remain subject to the Board’s decisions and the company’s circumstances at the relevant time.
The combination of a quarterly dividend and a share repurchase authorization gives Sierra Bancorp two mechanisms for returning capital to shareholders. Dividends provide cash distributions to eligible shareholders, while repurchases involve the company buying its own outstanding shares.
Company Marks Its 111th Consecutive Quarterly Dividend
Sierra Bancorp has maintained a long history of regular cash dividend payments. According to the company, it has paid regular cash dividends every year since 1987 when dividends paid by Bank of the Sierra before Sierra Bancorp’s formation are included.
The company’s dividend history began with annual payments through 1998, followed by quarterly distributions thereafter.
The latest declaration marks Sierra Bancorp’s 111th consecutive quarterly cash dividend, highlighting the continuity of its shareholder distribution practice over an extended period.
A consistent dividend history can be an important consideration for investors evaluating a company’s capital allocation policies. Regular payments provide shareholders with a recurring cash distribution, although the amount and timing of future dividends are not guaranteed.
Dividend decisions at financial institutions must also take account of the capital required to support lending activities, absorb potential losses, meet regulatory standards and fund future business operations. Banks must balance shareholder distributions with the need to maintain appropriate financial resources as economic and market conditions change.
Sierra Bancorp’s latest declaration reflects the Board’s decision to continue the established quarterly payment following its assessment of the company’s financial performance and capital position for the third quarter of 2026.
The 111th consecutive quarterly dividend also underscores the company’s record of maintaining regular distributions across different stages of its development, including the period before and after the formation of the holding company.
Capital Management Through Dividends and Share Repurchases
Sierra Bancorp’s two announcements provide shareholders with information about its current capital return plans.
The quarterly cash dividend establishes a payment of $0.27 per share for shareholders of record on November 2, 2026. The share repurchase program, meanwhile, authorizes the company to buy back as many as 1 million shares during the period beginning after October 31, 2026, and ending October 31, 2027.
These approaches can serve different purposes within a company’s capital allocation strategy.
A dividend distributes cash directly to shareholders according to the number of eligible shares they hold. A share repurchase uses company funds to acquire outstanding shares and can reduce the number of shares remaining in the market if the purchased shares are retired or otherwise cease to be outstanding.
Repurchases may also influence per-share financial measures, depending on the number of shares purchased, the price paid and the company’s subsequent operating performance. However, the financial effect of a repurchase depends on the circumstances in which it is conducted, and an authorization alone does not establish that the company’s earnings per share or stock price will increase.
For Sierra Bancorp, the decision to authorize another repurchase program provides flexibility to purchase shares when management and the Board determine that doing so is appropriate. The company has indicated that execution will depend on market conditions, share prices, trading volume and other corporate and regulatory considerations.
The company has not disclosed a mandatory purchase schedule under the new authorization. As a result, investors should distinguish between the maximum number of shares the company is permitted to repurchase and the number it ultimately purchases.
The Board’s approval of both the dividend and repurchase program demonstrates that shareholder distributions remain part of the company’s capital management framework. The extent to which the company carries out repurchases will depend on its assessment of conditions throughout the authorization period.
Bank of the Sierra Continues Its Community Banking Operations
Sierra Bancorp is the holding company for Bank of the Sierra, a financial institution that is in its 49th year of operations.
The bank’s stated objective is to be the preeminent bank headquartered in California’s South San Joaquin Valley. It provides a range of retail and commercial banking services through a network of 34 full-service branches.
These branches are located across Tulare, Kern, Kings, Fresno, Ventura, San Luis Obispo and Santa Barbara counties. The bank also operates an online branch and offers specialized lending services through its mortgage warehouse division.
The combination of physical branches, online banking and specialized lending enables Bank of the Sierra to serve customers through different channels and address a range of financial needs.
Retail banking services generally support individuals and households, while commercial banking services help businesses manage their financial operations and access banking products. Specialized lending activities, including mortgage warehouse financing, serve particular segments of the financial services market.
Mortgage warehouse lending typically provides short-term financing to mortgage originators while they prepare to sell newly originated loans in the secondary market. This type of lending is distinct from conventional consumer mortgage financing and forms part of the broader infrastructure supporting residential mortgage activity.
Bank of the Sierra’s geographic presence across several California counties provides the institution with a regional operating footprint, while its online services allow customers to access banking services beyond traditional branch-based interactions.
The bank has also been recognized by BauerFinancial with a five-star rating, according to the company’s announcement. Such ratings are one source of information that may be considered when assessing a bank, although investors and customers should review the rating provider’s methodology and other relevant financial information when evaluating an institution.
Sierra Bancorp’s latest announcements confirm its intention to continue returning capital to shareholders through regular quarterly dividends while retaining the ability to repurchase common stock over the coming year.
The new authorization permits the repurchase of up to 1 million shares after the existing program expires on October 31, 2026, and remains in effect through October 31, 2027. Management may implement purchases through open-market or privately negotiated transactions, subject to applicable securities laws and the conditions governing the program.
The Board has also authorized management to enter into a Rule 10b5-1 plan with a nationally recognized broker-dealer to facilitate repurchases as appropriate.
Separately, the declared quarterly dividend of $0.27 per share is scheduled for payment on November 9, 2026, to shareholders of record on November 2, 2026. The payment represents the company’s 111th consecutive quarterly cash dividend, extending a history of regular shareholder distributions that dates back to 1987 when Bank of the Sierra’s earlier dividend payments are included.
As Sierra Bancorp continues to oversee Bank of the Sierra’s community banking and lending operations, the implementation of its capital return plans will depend on financial performance, market conditions, regulatory requirements and decisions made by its Board of Directors.
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