PORTERVILLE, Calif. - Sierra Bancorp (NASDAQ:BSRR), the holding company for Bank of the Sierra, has announced the approval of a new share repurchase program by its Board of Directors. The program authorizes the repurchase of up to one million shares of its outstanding common stock. This new initiative is set to commence after the existing repurchase program concludes on October 31, 2024, and will continue through October 31, 2025. The repurchases will be conducted on the open market or through privately negotiated transactions, adhering to federal and state securities laws. The timing and amount of shares to be repurchased will be influenced by market conditions, regulatory requirements, and other factors.
In addition to the share repurchase program, Sierra Bancorp's Board of Directors has declared a regular quarterly cash dividend of $0.24 per share. This dividend payment, which is part of a long-standing tradition of the company, will be distributed on November 12, 2024, to shareholders of record as of October 31, 2024. Notably, Sierra Bancorp has consistently paid cash dividends to its shareholders annually since 1987 and quarterly since 1998, with the newly announced dividend marking the 103rd consecutive quarterly cash dividend.
Bank of the Sierra, the subsidiary of Sierra Bancorp, has been operational for 47 years and is recognized as a prominent independent bank in the South San Joaquin Valley. It offers a comprehensive suite of banking services to its community through its branches across several counties and online services. The bank has also received accolades for its strength and performance, including a 5-star rating from Bauer Financial in 2024.
This announcement is based on a press release statement from Sierra Bancorp and includes forward-looking statements that involve certain risks and uncertainties. These statements are not guarantees of future performance and actual results could differ materially from those projected. The company has outlined various risk factors in its SEC filings that could influence its operations and financial results.
In other recent news, Sierra Bancorp reported a strong quarter with robust loan growth, primarily driven by its successful mortgage warehouse strategy. This has led to increased balances from the previous quarter, a trend expected to continue into the next quarter. Sierra Bancorp's strategy also helped maintain low core deposit costs, contributing to an unexpected expansion in net interest margin and top-line revenue growth.
DA Davidson has reaffirmed a Buy rating for Sierra Bancorp and increased its price target to $33, reflecting confidence in the bank's continued growth and profitability. The bank's focus on mortgage warehouse lending is expected to contribute to its performance in the upcoming quarter.
Sierra Bancorp recently declared a quarterly cash dividend of $0.24 per share, marking a 4% increase from the previous quarter. This represents the company's 102nd consecutive quarterly cash dividend. In terms of earnings, Sierra Bancorp reported earnings per share of $0.64, with core earnings per share at $0.59.
Other firms have also made adjustments to their outlook on Sierra Bancorp. Keefe, Bruyette & Woods lowered its stock price target to $23, maintaining a Market Perform rating. Janney upgraded the company's rating from Neutral to Buy, despite reducing the fair value estimate to $23. These recent developments reflect the evolving financial landscape for Sierra Bancorp.
InvestingPro Insights
Sierra Bancorp's recent announcement of a new share repurchase program and quarterly dividend aligns well with its financial performance and market position. According to InvestingPro data, the company boasts a market capitalization of $414.62 million and a P/E ratio of 11.73, suggesting a relatively attractive valuation compared to its earnings.
An InvestingPro Tip highlights that Sierra Bancorp has maintained dividend payments for 29 consecutive years, underscoring the company's commitment to shareholder returns as evidenced by the newly declared quarterly cash dividend. This consistency in dividend payments is further supported by the company's dividend yield of 3.29% and a dividend growth rate of 4.35% over the last twelve months.
The bank's strong financial position is reflected in its operating income margin of 34.16% for the last twelve months as of Q2 2024. This robust profitability metric indicates efficient operations and effective cost management, which could provide the financial flexibility needed to support the share repurchase program.
Another InvestingPro Tip notes that Sierra Bancorp has experienced a high return over the last year, with a one-year price total return of 64.49%. This significant price appreciation, coupled with the 66.48% return over the past six months, suggests strong investor confidence in the company's strategic direction and financial health.
For investors seeking more comprehensive analysis, InvestingPro offers additional tips and insights. There are 5 more InvestingPro Tips available for Sierra Bancorp, providing a deeper understanding of the company's financial position and market performance.
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