Sierra Bancorp closes $ 50 million private placement of subordinated notes

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PORTERVILLE, California, September 24, 2021– (BUSINESS WIRE) – Sierra Bancorp (Nasdaq: BSRR) (the “Company”), the holding company of Bank of the Sierra, today announced the completion of its private placement of $ 50 million notes maturing in 2031 (the “Tickets”).

The Notes are intended to qualify as Tier 2 capital for regulatory purposes. The Notes will bear interest at a fixed annual rate of 3.25% for the first five years and will be reset quarterly thereafter at the three-month Guaranteed Overnight Funding Rate (SOFR) then in effect plus 253.5 percentage points. based. The Kroll Bond rating agency assigned an investment grade rating of BBB- to the Notes. The subordinated notes are redeemable by the Company at its option, in whole or in part, from October 1, 2026.

The Company intends to use the net proceeds of the offering for general corporate purposes.

Keefe, Bruyette & Woods, A Stifel company, served as the sole placement agent for the ticket offering. Stuart | Moore | Staub served as legal counsel to the company, and Squire Patton Boggs served as legal counsel to the placement agent.

This press release is provided for informational purposes only and does not constitute an offer to sell or the solicitation of an offer to buy the Notes, nor any offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale would be illegal prior to registration or qualification under the securities laws of such jurisdiction. The Securities have not been registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. The indebtedness evidenced by the Notes is not a deposit and is not insured by the Federal Deposit Insurance Corporation or any other government agency or fund.

About Sierra Bancorp

Sierra Bancorp is the holding company of Bank of the Sierra (www.bankofthesierra.com), which is in its 44th year of operation and is the largest independent bank headquartered in the South San Joaquin Valley. Bank of the Sierra is a community-focused regional bank, providing a wide range of retail and commercial banking services through full-service branches located in Tulare, Kern, Kings, Fresno, Ventura, San Luis counties Obispo and Santa Barbara. The Bank also operates an online branch and provides specialist lending services through a farm credit center, SBA center, and dedicated loan production office in Roseville, California. In 2021, Bank of the Sierra was recognized as one of the strongest and most successful community banks in the country, with a 5-star rating from Bauer Financial.

Forward-looking statements Safe harbor statement under the Private Securities Litigation Reform Act of 1995

Statements contained in this press release that are not historical facts are forward-looking statements based on management’s current expectations and beliefs regarding future developments and their potential effects on the Company. Readers are cautioned not to place undue reliance 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 actual performance of our borrowers’ payments as loan deferrals related to the COVID-19 pandemic expire, changes in laws , regulations or regulatory policies or practices as a result of, or in response to the COVID-19 pandemic, including the potential negative impact of loan modifications and payment deferrals implemented in accordance with recent regulatory guidance, and general economic uncertainty caused by the COVID-19 pandemic, and government and societal responses to it, the health of national and local economies, the Company’s ability to attract and retain qualified employees, expectations customers in terms of service, the Company’s ability to successfully deploy new technologies, the success of acquisitions and branch expansion, changes s interest rates, loan portfolio performance and other factors detailed in the Company’s filings with the SEC, including “Risk Factors” and “Management’s Discussi on and Analysis of the financial position and results of operations ”of the Company’s most recent Forms 10K and 10Q. The forward-looking statements presented here are made only as of the date of this press release, and we undertake no obligation to update or revise any forward-looking statement to reflect changes in assumptions, the occurrence of unforeseen events. or otherwise, except as required by law.

An explanation of the importance of ratings can be obtained from the rating agency. Typically, rating agencies base their ratings on evidence and information, as well as their own surveys, studies and assumptions, as they deem appropriate. The rating of subordinated securities should be assessed independently of similar ratings of other securities. The credit rating of a security is not a recommendation to buy, sell or hold any securities and may be subject to review, revision, suspension, reduction or a withdrawal at any time by the rating agency which assigns it. No report of a rating agency is incorporated by reference herein.

Category: Financial
Source: Sierra Bancorp

See the source version on businesswire.com: https://www.businesswire.com/news/home/20210924005543/en/

Contacts

Mr. Kevin McPhail – President and CEO
Telephone: (559) 782-4900 or (888) 454-BANK
www.sierrabancorp.com


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