SIERRA BANCORP Debt Disclosure
10. OTHER BORROWING ARRANGEMENTS
At year end, short-term borrowings consisted of the following (dollars in thousands):
2025 | |||||||||||||
| Average | | Amount | | Average | | Maximum | | Weighted | ||||
As of December 31: | |||||||||||||
Repurchase agreements | $ | 123,425 | $ | 130,853 | 0.21% | $ | 136,954 | 0.21% | |||||
Short term borrowings | 58,809 | 222,700 | 4.25% | 317,500 | 4.25% | ||||||||
Total | $ | 182,234 | $ | 353,553 | $ | 454,454 | |||||||
2024 | |||||||||||||
Average | | Amount | | Average | | Maximum | | Weighted | |||||
As of December 31: | |||||||||||||
Repurchase agreements | $ | 123,878 | $ | 108,860 | 0.17% | $ | 148,003 | 0.12% | |||||
Short term borrowings | 16,375 | — | 5.72% | 76,400 | — | ||||||||
Total | $ | 140,253 | $ | 108,860 | $ | 224,403 | |||||||
At year end, long-term advances from FHLB consisted of the following (dollars in thousands):
2025 | 2024 | |||||||||||||
Amount | Fixed rate | Weighted average interest rate | Amount | Fixed rate | Weighted average interest rate | |||||||||
As of December 31: | ||||||||||||||
Federal Home Loan Bank advances, maturing 2026 | $ | 25,000 | 3.96% | 3.96% | $ | 25,000 | 3.96% | 3.96% | ||||||
Federal Home Loan Bank advances, maturing 2028 | 15,000 | 3.78% | 3.78% | 15,000 | 3.78% | 3.78% | ||||||||
Federal Home Loan Bank advances, maturing 2026 | 20,000 | 4.04% | 4.04% | 20,000 | 4.04% | 4.04% | ||||||||
Federal Home Loan Bank advances, maturing 2028 | 20,000 | 3.81% | 3.81% | 20,000 | 3.81% | 3.81% | ||||||||
Total | $ | 80,000 | $ | 80,000 | ||||||||||
There were short-term borrowings of $222.7 million at December 31, 2025. Included in short term borrowings at December 31, 2025, were $12.7 million outstanding in fixed-rate overnight FHLB advances and $210.0 million in overnight Fed Funds Purchased. There were no outstanding short-term borrowings at December 31, 2024. Each FHLB advance is payable at its maturity date, with a prepayment penalty for fixed rate advances. The advances were collateralized by $1.3 billion of first mortgage loans under a blanket lien arrangement at year end 2025. Based on this collateral and the Company’s holdings of FHLB stock, the Company was eligible to borrow up to the total of $629.5 million at year-end 2025, with a remaining borrowing capacity of $849.7 million if sufficient additional collateral was pledged.
The carrying value of the securities pledged to collateralize repurchase agreements was $168.6 million at December 31, 2025, and $169.5 million at December 31, 2024.
The Company had borrowings of $210 million at December 31, 2025, and no borrowings at year end 2024 from the FRB. The Company was eligible to borrow up to $254.9 million from FRB at year end 2025, which was collateralized by $129.9 million in first mortgage loans under a blanket lien arrangement.
The Company had lines of credit with its correspondent banks which, in the aggregate, amounted to $250.8 million unsecured and $25.0 million secured at December 31, 2025, and $479.8 million unsecured and $25.0 million secured at December 31, 2024, at fixed interest rates which vary with market conditions. There were outstanding overnight balances of $210 million under these lines of credit at December 31, 2025, and no outstanding overnight balances under these lines of credit at December 31, 2024.
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.