Sierra Bancorp (BSRR) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Sierra Bancorp (BSRR) Financial Services Profile

Sierra Bancorp is a California-based bank holding company that delivers comprehensive retail and commercial banking services, distinguished by its strong community focus and extensive suite of financial products tailored to meet the diverse needs of its customers.

What Is the Investment Thesis for BSRR?

Sierra Bancorp presents a solid investment thesis characterized by its robust financial metrics, including a market capitalization of $535M and a P/E ratio of 11.57. The company's profit margin stands at 23.0%, indicating effective cost management and operational efficiency. Growth catalysts include the expansion of its branch network and the introduction of new digital banking services, which are expected to enhance customer acquisition and retention. As the regional banking sector continues to grow, Sierra Bancorp is well-positioned to capitalize on increasing demand for personalized banking solutions. However, potential risks include regulatory changes and economic fluctuations that could impact loan demand and credit quality. Overall, Sierra Bancorp's strong market position and strategic initiatives suggest a favorable outlook for sustained growth.

Based on FMP financials and quantitative analysis

BSRR Key Highlights

Market Cap of $535M reflects strong regional presence and growth potential.

• P/E ratio of 11.57 indicates attractive valuation compared to industry peers.
• Profit margin of 23.0% demonstrates effective operational efficiency and cost management.
• Gross margin of 74.8% highlights strong revenue generation capabilities.
• Dividend yield of 2.69% provides a steady income stream for investors.

Who Are BSRR's Competitors?

BSRR is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are BSRR's Key Strengths?

Established brand with a strong community presence.

• Diverse product offerings catering to various customer segments.
• Strong financial performance metrics, including high profit margins.
• Experienced management team with deep industry knowledge.

What Are BSRR's Weaknesses?

Limited geographic presence outside California.

• Dependence on the agricultural sector, which can be volatile.
• Potential challenges in scaling digital banking services.
• Relatively smaller size compared to national banks.

What Could Drive BSRR Stock Higher?

Expansion of branch network to increase market presence in underserved areas of California.

• Enhancement of digital banking services to attract and retain tech-savvy customers.
• Focus on agricultural lending growth to capitalize on the regional agricultural market.
• Initiatives to strengthen small business lending in the post-pandemic recovery phase.
• Community engagement programs aimed at building stronger local relationships.

What Are the Key Risks for BSRR?

Financial-distress signal — its Altman Z-Score of -0.34 sits in the distress zone (elevated bankruptcy risk).

• Regulatory changes that could impact operational costs and compliance requirements.
• Economic fluctuations affecting loan demand and credit quality.
• Increased competition from larger banks and fintech companies in the regional market.
• Cybersecurity threats that could compromise customer data and trust.

What Are the Growth Opportunities for BSRR?

• Expansion of Branch Network: Sierra Bancorp plans to increase its physical presence by opening additional branches in underserved areas of California. This expansion is expected to enhance customer accessibility and drive deposit growth. The regional banking market is projected to grow at a CAGR of 5% over the next five years, presenting a favorable environment for branch expansion.
• Digital Banking Services Enhancement: The company is investing in its digital banking platform to improve customer experience and streamline operations. By integrating advanced technologies, Sierra Bancorp aims to attract tech-savvy customers and increase online transactions. The digital banking market is expected to grow significantly, with projections indicating a CAGR of 12% over the next three years.
• Agricultural Lending Growth: Given its strong presence in California's agricultural sector, Sierra Bancorp is focusing on expanding its agricultural loan offerings. The agricultural lending market is projected to grow at a CAGR of 4% as farmers seek financing solutions for operational needs and equipment purchases, positioning Sierra Bancorp to capture this demand.
• Small Business Lending Initiatives: The bank is emphasizing small business loans, particularly in light of the post-pandemic recovery. With small businesses representing a significant portion of the U.S. economy, Sierra Bancorp's targeted lending initiatives are expected to drive loan growth. The small business lending market is anticipated to grow at a CAGR of 6% over the next four years.
• Community Engagement Programs: Sierra Bancorp is committed to community development through various engagement programs. By strengthening its ties with local businesses and organizations, the bank aims to enhance its brand reputation and customer loyalty, which are crucial for long-term growth in the competitive banking landscape.

What Opportunities Does BSRR Have?

• Expansion into new markets within California.
• Increased demand for digital banking solutions.
• Growing agricultural lending market due to rising demand for food production.
• Potential partnerships with fintech companies to enhance service offerings.

What Threats Does BSRR Face?

• Intense competition from larger national banks and fintechs.
• Regulatory changes impacting banking operations.
• Economic downturns affecting loan demand and credit quality.
• Cybersecurity threats to digital banking platforms.

What Are BSRR's Competitive Advantages?

• Strong community ties and local market knowledge enhance customer loyalty.
• Diverse range of financial products tailored to meet local needs.
• Established brand reputation built over decades of service.
• Focus on personalized customer service differentiates from larger banks.
• Strategic partnerships with local businesses and organizations strengthen market position.

What Does BSRR Do?

Founded in 1977 and headquartered in Porterville, California, Sierra Bancorp serves as the bank holding company for Bank of the Sierra. The company has evolved significantly since its inception, expanding its footprint to operate 35 full-service branches, an online branch, and specialized centers for agricultural credit and small business administration. Sierra Bancorp offers a wide range of banking services, including various deposit products such as checking and savings accounts, money market accounts, and retirement accounts. Its loan portfolio is diverse, encompassing agricultural, commercial, consumer, real estate, construction, and mortgage loans, catering to both individual and business clients. Additionally, the bank provides modern banking conveniences such as automated teller machines, electronic point-of-sale services, online banking, and remote deposit capture. This comprehensive service offering positions Sierra Bancorp as a key player in the regional banking sector, with a strong commitment to supporting local communities and businesses. The company's focus on customer service and community engagement has allowed it to maintain a competitive edge in the financial services industry, making it a trusted partner for financial needs in California.

What Products and Services Does BSRR Offer?

• Provide retail banking services including checking and savings accounts.
• Offer commercial banking services tailored for businesses.
• Facilitate a variety of loan products, including agricultural and real estate loans.
• Operate a network of 35 full-service branches across California.
• Deliver online and mobile banking solutions for convenient access.
• Support local communities through various engagement and development programs.

How Does BSRR Make Money?

• Generate revenue through interest income from loans and fees from banking services.
• Offer a diverse range of deposit products to attract customer funds.
• Leverage technology to enhance operational efficiency and customer experience.
• Focus on community engagement to build strong customer relationships.
• Utilize a comprehensive suite of financial products to meet varied customer needs.

What Industry Does BSRR Operate In?

The regional banking industry is experiencing a resurgence as local banks focus on personalized services and community engagement. With a market size projected to grow steadily, Sierra Bancorp is strategically positioned within this landscape. Increasing demand for small business loans and consumer banking services, coupled with a shift towards digital banking solutions, presents significant growth opportunities. Competitively, Sierra Bancorp faces both challenges and opportunities from larger national banks and fintech companies, but its community-oriented approach allows it to differentiate itself effectively.

Who Are BSRR's Key Customers?

• Individuals seeking personal banking solutions.
• Small to medium-sized businesses requiring commercial banking services.
• Farmers and agricultural businesses needing specialized loans.
• Local communities looking for a bank that supports regional development.
• Online customers who prefer digital banking solutions.

Sierra Bancorp (BSRR) Valuation Context

Valued at $535M, BSRR is classified as a small-cap stock. Analyst price targets span from $39.00 to $39.00, with a consensus of $39.00. At the current price of $40.87, that implies roughly 5% downside from the consensus target. Relative to its peer group, BSRR's quantitative score of 87/100 is above the peer average of 76/100.

BSRR Revenue & Earnings Trend

In Jun 2026, BSRR generated $49.5M in top-line revenue, marking a sequential increase of 0.7%. The company recorded net income of $9.9M, with diluted EPS of $0.76. Quarter-over-quarter revenue has been mixed, typical for a small-cap company operating in Financial Services. Across the four most recent quarters, BSRR averaged $0.85 in diluted EPS.

Company Profile

Sierra Bancorp operates in the Banks - Regional industry within the Financial Services sector. It is headquartered in Porterville, US. The company is led by CEO Kevin J. McPhaill. BSRR has traded publicly since 1994.

Return on equity for Sierra Bancorp stands at 12.7%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 1.2%, showing how much profit it generates from its asset base. BSRR trades at a trailing price-to-earnings ratio of 11.57, below the Financial Services sector average of ~17.50x. Its free cash flow yield is 0.5%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.19 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 8.6%, the inverse of the P/E and a quick read on earnings relative to price.

Sierra Bancorp's Piotroski F-Score is 8/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of -0.34 places it in the distress zone, a signal of elevated financial risk.

Sierra Bancorp has beaten Wall Street's EPS estimate in 4 of its last 8 reported quarters — more hits than misses. Reported results have landed about 1.7% above estimates on average.

Wall Street analysts project Sierra Bancorp revenue of about $156.7M for fiscal 2026, with EPS near $3.56. The estimate reflects 3 contributing analysts.

Over the past six months, Sierra Bancorp insiders filed 11 SEC Form 4 transactions — 8 sales and 3 purchases. On net that is roughly 26K shares disposed (about $995K), a signal worth weighing alongside the fundamentals.

BSRR Financials

BSRR Latest News

BSRR Analyst Consensus

BSRR MoonshotScore

Sierra Bancorp Financial Services Stock: Key Questions Answered

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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