Sierra Bancorp to Raise $21.3 Million in Private Placement of Common Stock to Institutional...

Sierra Bancorp to Raise $21.3 Million in Private Placement of Common Stock to
Institutional Investors

PORTERVILLE, Calif., Aug. 27 /PRNewswire-FirstCall/ -- Sierra Bancorp (Nasdaq:
BSRR), the bank holding company for Bank of the Sierra, today announced that
it has entered into a purchase agreement with select institutional investors
pursuant to which it will raise $21.3 million in a private placement of its
common stock.

Sierra Bancorp will sell 1,935,000 shares of its common stock at a price of
$11.00 per share. The net proceeds from the offering, after placement fees and
estimated transaction expenses, are approximately $20.4 million. Proceeds of
the offering will be available for general corporate purposes and to support
ongoing organic growth of Bank of the Sierra. The closing is expected to take
place on or about August 28, 2009, subject to satisfaction of customary
closing conditions.

"This capital raise confirms that, even in troubled economic times,
disciplined banks, like Bank of the Sierra, with sound business models and an
outstanding management team can successfully access the capital markets," said
Jim Holly, Sierra Bancorp's Chief Executive Officer. "The proceeds of this
offering further strengthens our already strong capital position and provides
us the additional resources to continue to grow and support the businesses and
communities we serve," added Holly.

The securities to be issued in the private transaction have not been
registered under the Securities Act of 1933, as amended, and may not be sold
by the holders except pursuant to an effective registration statement or an
applicable exemption from the registration requirements. As part of the
financing, Sierra Bancorp has agreed to file a registration statement with the
Securities and Exchange Commission within 60 days of the closing covering the
issuance of the shares sold in the private placement.

Wunderlich Securities, Inc., headquartered in Memphis, Tennessee, is serving
as the placement agent in the private placement.

About Sierra Bancorp
Sierra Bancorp is the holding company for Bank of the Sierra
(www.bankofthesierra.com), which is in its 32nd year of operations and is the
largest independent bank headquartered in the South San Joaquin Valley. The
Company has $1.3 billion in total assets with 23 branch offices, an
agricultural credit center, an SBA center, an online "virtual" branch, and
over 400 employees.

The statements contained in this release that are not historical facts are
forward-looking statements based on management's current expectations and
beliefs concerning future developments and their potential effects on the
Company. Readers are cautioned not to unduly rely 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 health of the national and California economies, the Company's
ability to attract and retain skilled employees, customers' service
expectations, the Company's ability to successfully deploy new technology, the
success of branch expansion, changes in interest rates, loan portfolio
performance, the Company's ability to secure buyers for foreclosed properties,
and other factors detailed in the Company's SEC filings.

Website Address: www.sierrabancorp.com

SOURCE Sierra Bancorp

Ken Taylor, EVP/CFO, or Jim Holly, President/CEO, both of Sierra Bancorp,
+1-559-782-4900, 1-888-454-BANK