Loans and Allowance for Credit Losses (Tables)

6 Months Ended

Jun. 30, 2025

Loans and Allowance for Credit Losses


Loan Distribution
(dollars in thousands, unaudited)
	June 30, 2025		December 31, 2024
Real estate:
Residential real estate	$	370,348	$	381,438
Commercial real estate		1,394,487		1,360,374
Other construction/land		11,746		5,458
Farmland		67,811		77,388
Total real estate		1,844,392		1,824,658
Other commercial		185,404		177,013
Mortgage warehouse lines		401,896		326,400
Consumer loans		2,913		3,270
Subtotal		2,434,605		2,331,341
Net deferred loan costs		4		93
Loans, amortized cost basis		2,434,609		2,331,434
Allowance for credit losses		(21,680)		(24,830)
Net Loans	$	2,412,929	$	2,306,604

Schedule of Amortized Cost Basis of Nonaccrual Loans


Nonaccrual Loans
(dollars in thousands, unaudited)
	June 30, 2025
	Nonaccrual Loans
	With no allowance for credit loss		With an allowance for credit loss		Total		Loans Past Due 90+ Accruing
Real estate:
Residential real estate	$	270	$	—	$	270	$	—
Commercial real estate		1,686		186		1,872		—
Farmland		1,717		—		1,717		—
Total real estate		3,673		186		3,859		—
Other commercial		11,122				11,122		—
Total	$	14,795	$	186	$	14,981	$	—


	December 31, 2024
	Nonaccrual Loans
	With no allowance for credit loss		With an allowance for credit loss		Total		Loans Past Due 90+ Accruing
Real estate:
Residential real estate	$	23	$	—	$	23	$	—
Farmland		5,105		—		5,105		—
Total real estate		5,128		—		5,128		—
Other commercial		—		14,540		14,540		—
Total	$	5,128	$	14,540	$	19,668	$	—

Schedule of Amortized Cost Basis of Collateral-Dependent Loans by Class


Collateral Dependent Loans
(dollars in thousands, unaudited)
	June 30, 2025				December 31, 2024
	Amortized Cost		Individual Reserves		Amortized Cost		Individual Reserves
Real estate:
Residential real estate	$	270	$	—	$	23	$	—
Commercial real estate		1,872		2		—		—
Farmland		1,717		—		5,105		—
Total real estate		3,859		2		5,128		—
Other commercial		11,122		—		14,529		3,000
Total Loans	$	14,981	$	2	$	19,657	$	3,000

Schedule of Aging of the Amortized Cost Basis in Past-Due Loans


Past Due Loans
(dollars in thousands, unaudited)
	June 30, 2025
	30-59 Days Past Due		60-89 Days Past Due		Loans Past Due 90+ Days		Total Past Due		Loans not Past Due		Total Loans
Real estate:
Residential real estate	$	23	$	—	$	222	$	245	$	371,170	$	371,415
Commercial real estate		1,355		186		—		1,541		1,390,534		1,392,075
Other construction/land		—		—		—		—		11,662		11,662
Farmland		—		1,717		—		1,717		66,250		67,967
Total real estate		1,378		1,903		222		3,503		1,839,616		1,843,119
Other commercial		245		1,381		3,821		5,447		181,173		186,620
Mortgage warehouse lines		—		—		—		—		401,896		401,896
Consumer loans		11		38		—		49		2,925		2,974
Total Loans	$	1,634	$	3,322	$	4,043	$	8,999	$	2,425,610	$	2,434,609


	December 31, 2024
	30-59 Days Past Due		60-89 Days Past Due		Loans Past Due 90+ Days		Total Past Due		Loans not Past Due		Total Loans
Real estate:
Residential real estate	$	879	$	215	$	—	$	1,094	$	381,413	$	382,507
Commercial real estate		—		—		—		—		1,357,833		1,357,833
Other construction/land		—		—		—		—		5,472		5,472
Farmland		3,335		—		—		3,335		74,212		77,547
Total real estate		4,214		215		—		4,429		1,818,930		1,823,359
Other commercial		258		15		—		273		178,058		178,331
Mortgage warehouse lines		—		—		—		—		326,400		326,400
Consumer loans		4		—		—		4		3,340		3,344
Total Loans	$	4,476	$	230	$	—	$	4,706	$	2,326,728	$	2,331,434

Schedule of Amortized Cost Basis of Each Class of Financing Receivable

The percentage of the amortized cost basis of loans that were modified to borrowers experiencing financial difficulty as compared to the amortized cost basis of each class of financing receivable is also presented below (dollars in thousands, unaudited):


		Six months ended June 30, 2025
	Principal Forgiveness		Payment Delay		Term Extension		Combination Term Extension Interest Rate Reduction		Total Class of Financing Receivable
Other commercial	$	—	$	—	$	19	$	—		0.01%
Total	$	—	$	—	$	19	$	—		0.00%


		Six months ended June 30, 2024
	Principal Forgiveness		Payment Delay		Term Extension		Combination Term Extension Interest Rate Reduction		Total Class of Financing Receivable
Real estate:
Other construction/land	$	—	$	—	$	233	$	—		3.88%
Total real estate		—		—		233		—		0.01%
Other commercial		—		—		182		—		0.12%
Total	$	—	$	—	$	415	$	—		0.02%

Schedule of Financial Effect of Loan Modifications

The following tables present the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty for the three and six months ended June 30, 2025 and 2024 (dollars in thousands, unaudited):


		Three months ended June 30, 2025
		Principal Forgiveness	Weighted-Average Interest Rate Reduction	Weighted-Average Term Extension (years)
Other commercial	$	—	—	5.00


		Three months ended June 30, 2024
		Principal Forgiveness	Weighted-Average Interest Rate Reduction	Weighted-Average Term Extension (years)
Real estate:
Other construction/land	$	—	—	—
Other commercial	$	—	—	—


		Six months ended June 30, 2025
		Principal Forgiveness	Weighted-Average Interest Rate Reduction	Weighted-Average Term Extension (years)
Other commercial	$	—	—	1.70


		Six months ended June 30, 2024
		Principal Forgiveness	Weighted-Average Interest Rate Reduction	Weighted-Average Term Extension (years)
Real estate:
Other construction/land	$	—	—	3.00
Other commercial	$	—	—	3.72

Schedule of Amortized Cost of Loans by Credit Quality Classification in Addition to Loan Vintage

Loan Credit Quality by Vintage

(dollars in thousands, unaudited)


	June 30, 2025
	Term Loans Amortized Cost Basis by Origination Year
	2025		2024		2023		2022		2021		Prior		Revolving Loans Amortized Cost		Revolving Loans Converted to Term Loans		Total Loans
Residential real estate
Pass	$	—	$	—	$	—	$	93,888	$	213,839	$	50,038	$	8,961	$	3,946	$	370,672
Special mention		—		—		—		—		—		143		—		131		274
Substandard		—		—		—		—		—		268		49		152		469
Subtotal		—		—		—		93,888		213,839		50,449		9,010		4,229		371,415
Current period gross charge-offs		—		—		—		—		—		—		—		—		—

Commercial real estate
Pass		78,622		147,435		99,914		196,805		44,379		728,310		28,203		—		1,323,668
Special mention		—		—		137		16,535		—		31,563		—		—		48,235
Substandard		186		75		—		—		—		19,911		—		—		20,172
Subtotal		78,808		147,510		100,051		213,340		44,379		779,784		28,203		—		1,392,075
Current period gross charge-offs		1,147		—		—		—		—		—		—		—		1,147

Other construction/land
Pass		—		6,958		—		—		—		4,704		—		—		11,662
Subtotal		—		6,958		—		—		—		4,704		—		—		11,662
Current period gross charge-offs		—		—		—		—		—		—		—		—		—

Farmland
Pass		3,115		14,506		4,971		8,670		10,874		12,345		9,206		635		64,322
Special mention		—		—		—		—		—		361		—		—		361
Substandard		—		—		1,717		—		—		1,567		—		—		3,284
Subtotal		3,115		14,506		6,688		8,670		10,874		14,273		9,206		635		67,967
Current period gross charge-offs		—		—		—		—		—		—		—		—		—

Other commercial
Pass		5,712		6,456		16,221		3,375		672		14,965		121,482		1,737		170,620
Special mention		—		12		—		16		—		—		4,217		24		4,269
Substandard		—		14		194		140		—		24		7,538		3,821		11,731
Subtotal		5,712		6,482		16,415		3,531		672		14,989		133,237		5,582		186,620
Current period gross charge-offs		82		25		5,349		—		4		—		16		—		5,476

Mortgage warehouse lines
Pass		—		—		—		—		—		—		401,896		—		401,896
Subtotal		—		—		—		—		—		—		401,896		—		401,896
Current period gross charge-offs		—		—		—		—		—		—		—		—		—

Consumer loans
Pass		708		66		288		72		36		125		1,606		—		2,901
Special mention		—		—		10		—		—		7		12		—		29
Substandard		—		—		13		—		—		31		—		—		44
Subtotal		708		66		311		72		36		163		1,618		—		2,974
Current period gross charge-offs ⁽¹⁾		471		4		—		1		—		—		19		—		495

Total	$	88,343	$	175,522	$	123,465	$	319,501	$	269,800	$	864,362	$	583,170	$	10,446	$	2,434,609

(1)	Consumer overdrafts are included in consumer loans and make up the majority of the gross charge-offs in the period for this loan class.


			December 31, 2024
		Term Loans Amortized Cost Basis by Origination Year
	2024		2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost		Revolving Loans Converted to Term Loans		Total Loans
Residential real estate
Pass	$	—	$	—	$	96,007	$	216,294	$	6,993	$	45,300	$	11,125	$	3,437	$	379,156
Special mention		—		1		—		1,418		—		1,666		—		23		3,108
Substandard		—		—		—		—		—		68		18		157		243
Subtotal		—		1		96,007		217,712		6,993		47,034		11,143		3,617		382,507
Current period gross charge-offs		—		—		—		—		—		—		—		—		—

Commercial real estate
Pass		146,143		100,067		215,580		44,937		418,673		352,638		27,278		—		1,305,316
Special mention		—		141		—		—		24,206		2,815		1,350		—		28,512
Substandard		77		—		—		—		14,143		9,785		—		—		24,005
Subtotal		146,220		100,208		215,580		44,937		457,022		365,238		28,628		—		1,357,833
Current period gross charge-offs		—		—		—		—		2,438		—		—		—		2,438

Other construction/land
Pass		218		350		—		—		3,418		1,486		—		—		5,472
Subtotal		218		350		—		—		3,418		1,486		—		—		5,472
Current period gross charge-offs		—		—		—		—		—		—		—		—		—

Farmland
Pass		12,533		5,345		9,092		11,076		1,875		12,810		8,885		659		62,275
Special mention		1,203		1,770		—		—		819		7,715		—		—		11,507
Substandard		—		—		—		—		—		3,765		—		—		3,765
Subtotal		13,736		7,115		9,092		11,076		2,694		24,290		8,885		659		77,547
Current period gross charge-offs		—		—		—		—		—		410		—		—		410

Other commercial
Pass		7,058		17,449		4,627		901		6,064		10,623		111,840		1,723		160,285
Special mention		14		—		19		—		185		4		111		17,656		17,989
Substandard		15		—		—		—		—		31		11		—		57
Subtotal		7,087		17,449		4,646		901		6,249		10,658		111,962		19,379		178,331
Current period gross charge-offs		256		—		—		38		—		—		235		—		529

Mortgage warehouse lines
Pass		—		—		—		—		—		—		326,400		—		326,400
Subtotal		—		—		—		—		—		—		326,400		—		326,400
Current period gross charge-offs		—		—		—		—		—		—		—		—		—

Consumer loans
Pass		834		407		111		45		52		159		1,718		—		3,326
Special mention		—		10		1		—		—		—		2		—		13
Substandard		4		—		—		—		—		—		1		—		5
Subtotal		838		417		112		45		52		159		1,721		—		3,344
Current period gross charge-offs ⁽¹⁾		1,377		31		7		3		—		3		62		—		1,483

Total	$	168,099	$	125,540	$	325,437	$	274,671	$	476,428	$	448,865	$	488,739	$	23,655	$	2,331,434

(1)	Consumer overdrafts are included in consumer loans and make up the majority of the gross charge-offs in the period for this loan class.

Schedule of Activity in Allowance for Credit Losses by Portfolio Segment

Allowance for Credit Losses

(dollars in thousands, unaudited)


	Residential Real Estate		Commercial Real Estate		Farmland & Agricultural Production		Commercial & Industrial		Mortgage Warehouse		Consumer		Total
Allowance for credit losses:
Balance, March 31, 2025	$	1,746	$	17,287	$	6,032	$	1,506	$	339	$	140	$	27,050
Charge-offs		—		(1,147)		(5,300)		(118)		—		(166)		(6,731)
Recoveries		—		—		—		10		—		141		151
(Benefit) provision for credit losses		(52)		1,195		(211)		173		112		(7)		1,210
Balance June 30, 2025	$	1,694	$	17,335	$	521	$	1,571	$	451	$	108	$	21,680


	Residential Real Estate		Commercial Real Estate		Farmland & Agricultural Production		Commercial & Industrial		Mortgage Warehouse		Consumer		Total
Allowance for credit losses:
Balance, March 31, 2024	$	2,543	$	18,651	$	555	$	845	$	305	$	241	$	23,140
Charge-offs		—		(2,448)		—		(40)		—		(326)		(2,814)
Recoveries		60		—		—		103		—		230		393
(Benefit) provision for credit losses		(81)		463		82		(94)		380		171		921
Balance June 30, 2024	$	2,522	$	16,666	$	637	$	814	$	685	$	316	$	21,640


	Residential Real Estate		Commercial Real Estate		Farmland & Agricultural Production		Commercial & Industrial		Mortgage Warehouse		Consumer		Total
Allowance for credit losses:
Balance, December 31, 2024	$	1,808	$	17,143	$	3,827	$	1,282	$	398	$	372	$	24,830
Charge-offs		—		(1,147)		(5,300)		(176)		—		(495)		(7,118)
Recoveries		—		—		410		24		—		363		797
(Benefit) provision for credit losses		(114)		1,339		1,584		441		53		(132)		3,171
Balance June 30, 2025	$	1,694	$	17,335	$	521	$	1,571	$	451	$	108	$	21,680


	Residential Real Estate		Commercial Real Estate		Farmland & Agricultural Production		Commercial & Industrial		Mortgage Warehouse		Consumer		Total
Allowance for credit losses:
Balance, December 31, 2023	$	2,727	$	18,554	$	586	$	1,148	$	174	$	311	$	23,500
Charge-offs		—		(2,468)		(410)		(326)		—		(738)		(3,942)
Recoveries		60		—		—		543		—		461		1,064
(Benefit) provision for credit losses		(265)		580		461		(551)		511		282		1,018
Balance June 30, 2024	$	2,522	$	16,666	$	637	$	814	$	685	$	316	$	21,640

SIERRA BANCORP 10-Q