Stellar Bancorp, Inc. (the “Company” or “Stellar”) (NYSE: STEL)
today reported net income of $27.8 million, or diluted earnings per
share of $0.52, for the fourth quarter of 2024 and net income of
$117.6 million, or diluted earnings per share of $2.20, for the
full year 2024.
“We are proud of our team and their work establishing the
foundation of Stellar Bank,” said Robert R. Franklin, Jr.,
Stellar’s Chief Executive Officer. “Our strong foundation is a
testament to their significant efforts over the past two years and
they have prepared us for the year ahead. We intend to turn towards
growth at a more normalized organic pattern while we keep an eye
towards opportunities with downstream partners that would increase
our operating leverage,” Mr. Franklin continued.
“We remain focused on core fundamentals as we enter 2025 and are
encouraged by the economic activity in our markets. We are excited
about the future ahead of us,” Mr. Franklin concluded.
2024 Financial Highlights
- Solid Profitability: Net income for the full year 2024 was
$117.6 million, or diluted earnings per share of $2.20, which
translated into a return on average assets of 1.10%, a return on
average equity of 7.50% and a return on average tangible equity of
12.18%(1). Net income for the fourth quarter of 2024 was $27.8
million, or diluted earnings per share of $0.52, which translated
into an annualized return on average assets of 1.04%, an annualized
return on average equity of 6.85% and an annualized return on
average tangible equity of 10.82%(1).
- Strong Net Interest Margin: Tax equivalent net interest margin
was 4.24% for the year 2024 compared to 4.51% for 2023. The tax
equivalent net interest margin, excluding purchase accounting
accretion (“PAA”), was 3.89%(1) for 2024 compared to 4.03%(1) for
2023. Tax equivalent net interest margin for the fourth quarter of
2024 was 4.25% compared to 4.19% for the third quarter of 2024. The
tax equivalent net interest margin, excluding PAA, was 3.94%(1) for
the fourth quarter of 2024 compared to 3.91%(1) for the third
quarter of 2024.
- Meaningful Capital and Book Value Build: Total risk-based
capital ratio increased to 16.06% at December 31, 2024 from 14.02%
at December 31, 2023, book value per share increased to $30.14 from
$28.54 at December 31, 2023 and tangible book value per share
increased to $19.10(1) from $17.02(1) at December 31, 2023.
- Credit Metrics: Nonperforming loans decreased $2.0 million to
$37.2 million at December 31, 2024 from $39.2 million at December
31, 2023.
_____________________
(1) Refer to page 10 of this earnings
release for the calculation of this non-GAAP financial measure
Year 2024 Results
Net interest income for 2024 decreased $28.8 million, or 6.6%,
to $408.0 million from $436.8 million for 2023. The net interest
margin on a tax equivalent basis decreased 27 basis points to 4.24%
for the full year 2024 from 4.51% for the full year 2023. The
decrease in the net interest margin from the prior year was
primarily due to the impact of increased average interest-bearing
liabilities and increased rates on interest-bearing liabilities,
partially offset by increased rates on interest-earning assets. Net
interest income for the year 2024 benefited from $33.0 million of
income from purchase accounting accretion compared to $46.8 million
for the year 2023. Excluding purchase accounting accretion, net
interest income (tax equivalent) for the year 2024 would have been
$375.3 million(1) and the tax equivalent net interest margin would
have been 3.89%(1).
Noninterest income for the year 2024 was $23.0 million, an
increase of $1.5 million, or 6.2%, compared to $24.6 million for
the year 2023. Noninterest income decreased in 2024 compared to
2023 primarily due to a decrease in debit card and ATM income,
partially offset by the increase in gains on sales of assets and
Small Business Investment Company income recognized in 2024
compared to 2023.
Noninterest expense for the year 2024 decreased $4.8 million, or
1.7%, to $285.7 million compared to $290.5 million for the year
2023. The decrease in noninterest expense in 2024 compared to 2023
was primarily due to $15.6 million of acquisition and
merger-related expenses recognized in 2023, a $3.5 million decrease
in regulatory assessments and a $2.7 million decrease in
amortization of intangibles, partially offset by a $5.0 million
increase in salaries and employee benefits.
The efficiency ratio was 66.39% for the year ended December 31,
2024 compared to 63.02% for the year ended December 31, 2023.
Returns on average assets, average equity and average tangible
equity were 1.10%, 7.50% and 12.18%(1) for 2024, respectively,
compared to 1.21%, 8.96% and 15.75%(1) for 2023, respectively.
Fourth Quarter 2024 Results
Net interest income in the fourth quarter of 2024 increased $1.5
million, or 1.4%, to $103.0 million from $101.5 million for the
third quarter of 2024. The net interest margin on a tax equivalent
basis increased 6 basis points to 4.25% for the fourth quarter of
2024 from 4.19% for the third quarter of 2024. The increase in the
net interest margin from the prior quarter was primarily due to the
impact of decreased rates on interest-bearing liabilities. Net
interest income for the fourth quarter of 2024 benefited from $7.6
million of income from purchase accounting accretion compared to
$6.8 million in the third quarter of 2024. Excluding purchase
accounting accretion, net interest income (tax equivalent) for the
fourth quarter of 2024 would have been $95.5 million(1) and the tax
equivalent net interest margin would have been 3.94%(1).
Noninterest income for the fourth quarter of 2024 was $5.0
million, a decrease of $1.3 million, or 20.2%, compared to $6.3
million for the third quarter of 2024. Noninterest income decreased
in the fourth quarter of 2024 compared to the third quarter of 2024
primarily due to a loss on sales of assets in the fourth quarter of
2024 and Small Business Investment Company income recognized in the
third quarter of 2024.
Noninterest expense for the fourth quarter of 2024 increased
$915 thousand, or 1.3%, to $72.0 million compared to $71.1 million
for the third quarter of 2024. The increase in noninterest expense
in the fourth quarter of 2024 compared to the third quarter of 2024
was primarily due to an increase of $1.7 million in professional
fees and a $715 thousand increase in advertising expense, partially
offset by a $611 thousand decrease in salaries and employee
benefits and a $631 thousand decrease in amortization of
intangibles.
The efficiency ratio was 66.59% for the fourth quarter of 2024
compared to 66.18% for the third quarter of 2024. Annualized
returns on average assets, average equity and average tangible
equity were 1.04%, 6.85% and 10.82%(1) for the fourth quarter of
2024, respectively, compared to 1.27%, 8.49% and 13.63%(1) for the
third quarter of 2024, respectively.
Financial Condition
Total assets at December 31, 2024 were $10.91 billion, an
increase of $275.3 million, compared to $10.63 billion at September
30, 2024.
Total loans at December 31, 2024 decreased $111.3 million to
$7.44 billion compared to $7.55 billion at September 30, 2024. At
December 31, 2024, the remaining balance of the purchase accounting
accretion on loans was $73.7 million.
Total deposits at December 31, 2024 increased $385.8 million to
$9.13 billion compared to $8.74 billion at September 30, 2024, due
to increases in interest-bearing and noninterest-bearing demand
deposits, partially offset by decreases in certificates and other
time deposits and money-market and savings accounts. Shifts in the
deposit mix were primarily driven by the current interest rate
environment and an intensely competitive market for deposits.
Asset Quality
Nonperforming assets totaled $38.9 million, or 0.36% of total
assets, at December 31, 2024, compared to $35.1 million, or 0.33%
of total assets, at September 30, 2024 and $39.2 million at
December 31, 2023. The allowance for credit losses on loans as a
percentage of total loans was 1.09% at December 31, 2024, 1.12% at
September 30, 2024 and 1.16% at December 31, 2023.
The fourth quarter of 2024 included a provision for credit
losses of $942 thousand compared to a reversal of provision for
credit losses of $6.0 million recorded during the third quarter of
2024. Net charge-offs for the fourth quarter of 2024 were $2.0
million, or 0.11% (annualized) of average loans, compared to net
charge-offs of $3.9 million, or 0.21% (annualized) of average
loans, for the third quarter of 2024.
The year ended December 31, 2024 included a reversal of
provision for credit losses of $2.9 million compared to a provision
for credit losses of $8.9 million recorded for the year ended
December 31, 2023. Net charge-offs for the year ended December 31,
2024 were $6.7 million, or 0.09% of average loans, compared to net
charge-offs of $11.1 million, or 0.14% of average loans, for the
year ended December 31, 2023.
GAAP Reconciliation of Non-GAAP Financial Measures
Stellar’s management uses certain non-GAAP financial measures to
evaluate its performance. Please refer to the GAAP Reconciliation
and Management’s Explanation of Non-GAAP Financial Measures on page
10 of this earnings release for a reconciliation of these non-GAAP
financial measures.
Conference Call
Stellar’s management team will host a conference call and
webcast on Friday, January 31, 2025 at 8:00 a.m. Central Time (9:00
a.m. Eastern Time) to discuss its results for the fourth quarter
and full year 2024. Participants may register for the conference
call at https://registrations.events/direct/Q4I635866 conference ID
63586 to receive the dial-in numbers and unique PIN to access the
call. If you need assistance in obtaining a dial-in number, please
contact IR@stellar.bank. A simultaneous webcast is available at
https://registrations.events/direct/Q4I635866 and requires
pre-registration. If you are unable to participate during the live
webcast, the webcast will be accessible via the Investor Relations
section of the Company’s website at ir.stellar.bank.
About Stellar Bancorp, Inc.
Stellar Bancorp, Inc. is a bank holding company headquartered in
Houston, Texas. Stellar’s principal banking subsidiary, Stellar
Bank, provides a diversified range of commercial banking services
primarily to small- to medium-sized businesses and individual
customers across the Houston, Dallas, Beaumont and surrounding
communities in Texas.
Forward-Looking Statements
Certain statements in this press release which are not
historical in nature are intended to be, and are hereby identified
as, “forward-looking statements” for purposes of the safe harbor
provided by Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended.
These statements include, but are not limited to, statements about
the benefits of the Company’s merger with Allegiance Bancshares,
Inc. (the “Merger”), including future financial performance and
operating results, the Company’s plans, business and growth
strategies, objectives, expectations and intentions, and other
statements that are not historical facts, including projections of
macroeconomic and industry trends, which are inherently unreliable
due to the multiple factors that impact economic trends, and any
such variations may be material. Forward-looking statements may be
identified by terminology such as “may,” “will,” “should,” “could,”
“scheduled,” “plans,” “intends,” “projects,” “anticipates,”
“expects,” “believes,” “estimates,” “potential,” “would,” or
“continue” or negatives of such terms or other comparable
terminology.
All forward-looking statements are not guarantees of future
performance and are subject to risks, uncertainties and other
factors that may cause the actual results, performance or
achievements of Stellar to differ materially from any results
expressed or implied by such forward-looking statements. Such
factors include, among others: the risk that the cost savings and
any revenue synergies from the Merger may not be fully realized or
may take longer than anticipated to be realized; disruption to our
business as a result of the Merger; the risk that the integration
of operations will be materially delayed or will be more costly or
difficult than we expected or that we are otherwise unable to
successfully integrate our legacy businesses; the amount of the
costs, fees, expenses and charges related to the Merger;
reputational risk and the reaction of our customers, suppliers,
employees or other business partners to the Merger; changes in the
interest rate environment, the value of Stellar’s assets and
obligations and the availability of capital and liquidity; general
competitive, economic, political and market conditions; and other
factors that may affect future results of Stellar including changes
in asset quality and credit risk; the inability to sustain revenue
and earnings growth; changes in interest rates and capital markets;
inflation; customer borrowing, repayment, investment and deposit
practices; the impact, extent and timing of technological changes;
capital management activities; disruptions to the economy and the
U.S. banking system caused by recent bank failures, risks
associated with uninsured deposits and responsive measures by
federal or state governments or banking regulators, including
increases in the cost of our deposit insurance assessments and
other actions of the Board of Governors of the Federal Reserve
System, Federal Deposit Insurance Corporation and Texas Department
of Banking and legislative and regulatory actions and reforms.
Additional factors which could affect the Company’s future
results can be found in the Company’s Annual Report on Form 10-K,
Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, in
each case filed with the SEC and available on the SEC’s website at
https://www.sec.gov. We disclaim any obligation and do not intend
to update or revise any forward-looking statements contained in
this communication, which speak only as of the date hereof, whether
as a result of new information, future events or otherwise, except
as required by federal securities laws. As forward-looking
statements involve significant risks and uncertainties, caution
should be exercised against placing undue reliance on such
statements.
Stellar Bancorp, Inc.
Financial Highlights
(Unaudited)
2024
2023
December 31
September 30
June 30
March 31
December 31
(Dollars in thousands)
ASSETS
Cash and due from banks
$
419,967
$
103,735
$
110,341
$
74,663
$
121,004
Interest-bearing deposits at other
financial institutions
491,249
412,482
379,909
325,079
278,233
Total cash and cash equivalents
911,216
516,217
490,250
399,742
399,237
Available for sale securities, at fair
value
1,673,016
1,691,752
1,630,971
1,523,100
1,395,680
Loans held for investment
7,439,854
7,551,124
7,713,897
7,908,111
7,925,133
Less: allowance for credit losses on
loans
(81,058
)
(84,501
)
(94,772
)
(96,285
)
(91,684
)
Loans, net
7,358,796
7,466,623
7,619,125
7,811,826
7,833,449
Accrued interest receivable
37,884
39,473
43,348
45,466
44,244
Premises and equipment, net
111,856
113,742
113,984
115,698
118,683
Federal Home Loan Bank stock
8,209
20,123
15,089
16,050
25,051
Bank-owned life insurance
107,498
106,876
106,262
105,671
105,084
Goodwill
497,318
497,318
497,318
497,318
497,318
Core deposit intangibles, net
92,546
98,116
104,315
110,513
116,712
Other assets
106,771
79,537
103,001
103,838
111,681
Total assets
$
10,905,110
$
10,629,777
$
10,723,663
$
10,729,222
$
10,647,139
LIABILITIES AND SHAREHOLDERS’ EQUITY
LIABILITIES:
Deposits:
Noninterest-bearing
$
3,576,206
$
3,303,048
$
3,308,441
$
3,323,149
$
3,546,815
Interest-bearing
Demand
1,845,749
1,571,504
1,564,405
1,576,261
1,659,999
Money market and savings
2,253,193
2,280,651
2,213,031
2,203,767
2,136,777
Certificates and other time
1,453,236
1,587,398
1,639,426
1,691,539
1,529,876
Total interest-bearing deposits
5,552,178
5,439,553
5,416,862
5,471,567
5,326,652
Total deposits
9,128,384
8,742,601
8,725,303
8,794,716
8,873,467
Accrued interest payable
17,052
16,915
12,327
12,227
11,288
Borrowed funds
—
60,000
240,000
215,000
50,000
Subordinated debt
70,105
110,064
109,964
109,864
109,765
Other liabilities
79,104
74,074
70,274
66,717
81,601
Total liabilities
9,294,645
9,003,654
9,157,868
9,198,524
9,126,121
SHAREHOLDERS’ EQUITY:
Common stock
534
535
536
536
533
Capital surplus
1,240,050
1,238,619
1,238,477
1,235,221
1,232,627
Retained earnings
495,245
474,905
447,948
425,130
405,945
Accumulated other comprehensive loss
(125,364
)
(87,936
)
(121,166
)
(130,189
)
(118,087
)
Total shareholders’ equity
1,610,465
1,626,123
1,565,795
1,530,698
1,521,018
TOTAL LIABILITIES AND SHAREHOLDERS’
EQUITY
$
10,905,110
$
10,629,777
$
10,723,663
$
10,729,222
$
10,647,139
Stellar Bancorp, Inc.
Financial Highlights
(Unaudited)
Three Months Ended
Years Ended
2024
2023
2024
2023
December 31
September 30
June 30
March 31
December 31
December 31
December 31
INTEREST INCOME:
Loans, including fees
$
128,738
$
132,372
$
135,885
$
134,685
$
139,114
$
531,680
$
537,722
Securities:
Taxable
14,789
13,898
11,923
9,293
9,622
49,903
38,494
Tax-exempt
814
814
816
818
418
3,262
2,553
Deposits in other financial
institutions
5,681
4,692
3,555
3,627
3,021
17,555
12,048
Total interest income
150,022
151,776
152,179
148,423
152,175
602,400
590,817
INTEREST EXPENSE:
Demand, money market and savings
deposits
27,877
29,440
28,399
27,530
25,033
113,246
87,335
Certificates and other time deposits
16,830
18,073
18,758
15,084
15,075
68,745
41,286
Borrowed funds
235
840
1,700
1,774
4,154
4,549
17,807
Subordinated debt
2,123
1,916
1,912
1,917
1,983
7,868
7,630
Total interest expense
47,065
50,269
50,769
46,305
46,245
194,408
154,058
NET INTEREST INCOME
102,957
101,507
101,410
102,118
105,930
407,992
436,759
Provision for (reversal of) credit
losses
942
(5,985
)
(1,935
)
4,098
1,047
(2,880
)
8,943
Net interest income after provision for
credit losses
102,015
107,492
103,345
98,020
104,883
410,872
427,816
NONINTEREST INCOME:
Service charges on deposit accounts
1,590
1,594
1,648
1,598
1,520
6,430
6,064
(Loss) gain on sale of assets
(112
)
432
(64
)
513
198
769
390
Bank-owned life insurance
622
614
591
587
573
2,414
2,178
Debit card and ATM income
570
551
543
527
542
2,191
4,996
Other
2,362
3,111
2,698
3,071
4,053
11,242
10,934
Total noninterest income
5,032
6,302
5,416
6,296
6,886
23,046
24,562
NONINTEREST EXPENSE:
Salaries and employee benefits
40,512
41,123
39,061
41,376
40,464
162,072
157,034
Net occupancy and equipment
4,401
4,570
4,503
4,390
4,572
17,864
16,932
Depreciation
1,984
1,911
1,948
1,964
1,955
7,807
7,584
Data processing and software
amortization
5,551
5,706
5,501
4,894
5,000
21,652
19,526
Professional fees
3,428
1,714
1,620
2,662
3,867
9,424
7,955
Regulatory assessments and FDIC
insurance
1,636
1,779
2,299
1,854
5,169
7,568
11,032
Amortization of intangibles
5,581
6,212
6,215
6,212
6,247
24,220
26,883
Communications
807
827
847
937
743
3,418
2,796
Advertising
1,593
878
891
765
1,004
4,127
3,627
Acquisition and merger-related
expenses
—
—
—
—
3,072
—
15,555
Other
6,488
6,346
8,331
6,356
5,848
27,521
21,570
Total noninterest expense
71,981
71,066
71,216
71,410
77,941
285,673
290,494
INCOME BEFORE INCOME TAXES
35,066
42,728
37,545
32,906
33,828
148,245
161,884
Provision for income taxes
7,249
8,837
7,792
6,759
6,562
30,637
31,387
NET INCOME
$
27,817
$
33,891
$
29,753
$
26,147
$
27,266
$
117,608
$
130,497
EARNINGS PER SHARE
Basic
$
0.52
$
0.63
$
0.56
$
0.49
$
0.51
$
2.20
$
2.45
Diluted
$
0.52
$
0.63
$
0.56
$
0.49
$
0.51
$
2.20
$
2.45
Stellar Bancorp, Inc.
Financial Highlights
(Unaudited)
Three Months Ended
Years Ended
2024
2023
2024
2023
December 31
September 30
June 30
March 31
December 31
December 31
December 31
(Dollars and share amounts in
thousands, except per share data)
Net income
$
27,817
$
33,891
$
29,753
$
26,147
$
27,266
$
117,608
$
130,497
Earnings per share, basic
$
0.52
$
0.63
$
0.56
$
0.49
$
0.51
$
2.20
$
2.45
Earnings per share, diluted
$
0.52
$
0.63
$
0.56
$
0.49
$
0.51
$
2.20
$
2.45
Dividends per share
$
0.14
$
0.13
$
0.13
$
0.13
$
0.13
$
0.53
$
0.52
Return on average assets(A)
1.04
%
1.27
%
1.13
%
0.98
%
1.02
%
1.10
%
1.21
%
Return on average equity(A)
6.85
%
8.49
%
7.78
%
6.88
%
7.33
%
7.50
%
8.96
%
Return on average tangible
equity(A)(B)
10.82
%
13.63
%
12.82
%
11.47
%
12.61
%
12.18
%
15.75
%
Net interest margin (tax
equivalent)(A)(C)
4.25
%
4.19
%
4.24
%
4.26
%
4.40
%
4.24
%
4.51
%
Net interest margin (tax equivalent)
excluding PAA(A)(B)(C)
3.94
%
3.91
%
3.82
%
3.91
%
3.91
%
3.89
%
4.03
%
Efficiency ratio(D)
66.59
%
66.18
%
66.63
%
66.18
%
69.21
%
66.39
%
63.02
%
Capital Ratios
Stellar Bancorp, Inc. (Consolidated)
Equity to assets
14.77
%
15.30
%
14.60
%
14.27
%
14.29
%
14.77
%
14.29
%
Tangible equity to tangible assets(B)
9.89
%
10.27
%
9.53
%
9.12
%
9.04
%
9.89
%
9.04
%
Estimated Total capital ratio (to
risk-weighted assets)
16.06
%
15.91
%
15.34
%
14.62
%
14.02
%
16.06
%
14.02
%
Estimated Common equity Tier 1 capital (to
risk weighted assets)
14.19
%
13.62
%
12.98
%
12.29
%
11.77
%
14.19
%
11.77
%
Estimated Tier 1 capital (to risk-weighted
assets)
14.31
%
13.74
%
13.10
%
12.41
%
11.89
%
14.31
%
11.89
%
Estimated Tier 1 leverage (to average
tangible assets)
11.30
%
11.25
%
10.93
%
10.55
%
10.18
%
11.30
%
10.18
%
Stellar Bank
Estimated Total capital ratio (to
risk-weighted assets)
15.34
%
15.07
%
14.65
%
14.13
%
13.65
%
15.34
%
13.65
%
Estimated Common equity Tier 1 capital (to
risk-weighted assets)
14.19
%
13.63
%
13.12
%
12.61
%
12.20
%
14.19
%
12.20
%
Estimated Tier 1 capital (to risk-weighted
assets)
14.19
%
13.63
%
13.12
%
12.61
%
12.20
%
14.19
%
12.20
%
Estimated Tier 1 leverage (to average
tangible assets)
11.19
%
11.16
%
10.94
%
10.72
%
10.44
%
11.19
%
10.44
%
Other Data
Weighted average shares:
Basic
53,422
53,541
53,572
53,343
53,282
53,469
53,229
Diluted
53,471
53,580
53,608
53,406
53,350
53,510
53,313
Period end shares outstanding
53,429
53,446
53,564
53,551
53,291
53,429
53,291
Book value per share
$
30.14
$
30.43
$
29.23
$
28.58
$
28.54
$
30.14
$
28.54
Tangible book value per share(B)
$
19.10
$
19.28
$
18.00
$
17.23
$
17.02
$
19.10
$
17.02
Employees - full-time equivalents
1,037
1,040
1,045
1,007
998
1,037
998
(A)
Interim periods annualized.
(B)
Refer to the calculation of these non-GAAP
financial measures and a reconciliation to their most directly
comparable GAAP financial measures on page 10 of this Earnings
Release.
(C)
Net interest margin represents net
interest income divided by average interest-earning assets.
(D)
Represents total noninterest expense
divided by the sum of net interest income plus noninterest income,
excluding net gains and losses on the sale of assets. Additionally,
taxes and provision for credit losses are not part of this
calculation.
Stellar Bancorp, Inc.
Financial Highlights
(Unaudited)
Three Months Ended
December 31, 2024
September 30, 2024
December 31, 2023
Average Balance
Interest Earned/
Interest Paid
Average Yield/Rate
Average Balance
Interest Earned/
Interest Paid
Average Yield/Rate
Average Balance
Interest Earned/
Interest Paid
Average Yield/Rate
(Dollars in thousands)
Assets
Interest-Earning Assets:
Loans
$
7,477,332
$
128,738
6.85
%
$
7,627,522
$
132,372
6.90
%
$
7,973,780
$
139,114
6.92
%
Securities
1,702,111
15,603
3.65
%
1,676,614
14,712
3.49
%
1,386,079
10,040
2.87
%
Deposits in other financial
institutions
473,719
5,681
4.77
%
339,493
4,692
5.50
%
217,068
3,021
5.52
%
Total interest-earning assets
9,653,162
$
150,022
6.18
%
9,643,629
$
151,776
6.26
%
9,576,927
$
152,175
6.30
%
Allowance for credit losses on loans
(84,423
)
(94,785
)
(92,992
)
Noninterest-earning assets
1,080,429
1,077,422
1,142,438
Total assets
$
10,649,168
$
10,626,266
$
10,626,373
Liabilities and Shareholders'
Equity
Interest-Bearing Liabilities:
Interest-bearing demand deposits
$
1,623,867
$
11,341
2.78
%
$
1,606,736
$
12,458
3.08
%
$
1,420,892
$
10,548
2.95
%
Money market and savings deposits
2,312,711
16,536
2.84
%
2,254,767
16,982
3.00
%
2,163,348
14,485
2.66
%
Certificates and other time deposits
1,538,785
16,830
4.35
%
1,620,908
18,073
4.44
%
1,461,227
15,075
4.09
%
Borrowed funds
15,978
235
5.85
%
49,077
840
6.81
%
275,694
4,154
5.98
%
Subordinated debt
101,394
2,123
8.33
%
110,007
1,916
6.93
%
109,713
1,983
7.17
%
Total interest-bearing liabilities
5,592,735
$
47,065
3.35
%
5,641,495
$
50,269
3.54
%
5,430,874
$
46,245
3.38
%
Noninterest-Bearing Liabilities:
Noninterest-bearing demand deposits
3,342,636
3,303,726
3,624,417
Other liabilities
99,006
93,127
95,705
Total liabilities
9,034,377
9,038,348
9,150,996
Shareholders’ equity
1,614,791
1,587,918
1,475,377
Total liabilities and shareholders’
equity
$
10,649,168
$
10,626,266
$
10,626,373
Net interest rate spread
2.83
%
2.72
%
2.92
%
Net interest income and margin
$
102,957
4.24
%
$
101,507
4.19
%
$
105,930
4.39
%
Net interest income and net interest
margin (tax equivalent)
$
103,039
4.25
%
$
101,578
4.19
%
$
106,121
4.40
%
Cost of funds
2.10
%
2.24
%
2.03
%
Cost of deposits
2.02
%
2.15
%
1.84
%
Years Ended December
31,
2024
2023
Average Balance
Interest Earned/
Interest Paid
Average Yield/Rate
Average Balance
Interest Earned/
Interest Paid
Average Yield/Rate
(Dollars in thousands)
Assets
Interest-Earning Assets:
Loans
$
7,712,122
$
531,680
6.89
%
$
7,961,911
$
537,722
6.75
%
Securities
1,593,073
53,165
3.34
%
1,490,588
41,047
2.75
%
Deposits in other financial
institutions
334,654
17,555
5.25
%
242,803
12,048
4.96
%
Total interest-earning assets
9,639,849
$
602,400
6.25
%
9,695,302
$
590,817
6.09
%
Allowance for credit losses on loans
(91,770
)
(95,668
)
Noninterest-earning assets
1,098,395
1,147,232
Total assets
$
10,646,474
$
10,746,866
Liabilities and Shareholders'
Equity
Interest-Bearing Liabilities:
Interest-bearing demand deposits
$
1,618,212
$
48,290
2.98
%
$
1,464,015
$
38,689
2.64
%
Money market and savings deposits
2,236,678
64,956
2.90
%
2,259,264
48,646
2.15
%
Certificates and other time deposits
1,574,598
68,745
4.37
%
1,239,345
41,286
3.33
%
Borrowed funds
77,662
4,549
5.86
%
318,721
17,807
5.59
%
Subordinated debt
107,768
7,868
7.30
%
109,560
7,630
6.96
%
Total interest-bearing liabilities
5,614,918
$
194,408
3.46
%
5,390,905
$
154,058
2.86
%
Noninterest-Bearing Liabilities:
Noninterest-bearing demand deposits
3,369,931
3,814,651
Other liabilities
94,156
85,376
Total liabilities
9,079,005
9,290,932
Shareholders’ equity
1,567,469
1,455,934
Total liabilities and shareholders'
equity
$
10,646,474
$
10,746,866
Net interest rate spread
2.79
%
3.23
%
Net interest income and margin
$
407,992
4.23
%
$
436,759
4.50
%
Net interest income and net interest
margin (tax equivalent)
$
408,305
4.24
%
$
437,670
4.51
%
Cost of funds
2.16
%
1.67
%
Cost of deposits
2.07
%
1.47
%
Stellar Bancorp, Inc.
Financial Highlights
(Unaudited)
Three Months Ended
2024
2023
December 31
September 30
June 30
March 31
December 31
(Dollars in thousands)
Period-end Loan Portfolio:
Commercial and industrial
$
1,362,260
$
1,350,753
$
1,396,064
$
1,455,755
$
1,414,102
Real estate:
Commercial real estate (including
multi-family residential)
3,868,218
3,976,296
4,029,671
4,049,885
4,071,807
Commercial real estate construction and
land development
845,494
890,316
922,805
1,039,443
1,060,406
1-4 family residential (including home
equity)
1,115,484
1,112,235
1,098,681
1,049,316
1,047,174
Residential construction
157,977
161,494
200,134
252,573
267,357
Consumer and other
90,421
60,030
66,542
61,139
64,287
Total loans held for investment
$
7,439,854
$
7,551,124
$
7,713,897
$
7,908,111
$
7,925,133
Deposits:
Noninterest-bearing
$
3,576,206
$
3,303,048
$
3,308,441
$
3,323,149
$
3,546,815
Interest-bearing
Demand
1,845,749
1,571,504
1,564,405
1,576,261
1,659,999
Money market and savings
2,253,193
2,280,651
2,213,031
2,203,767
2,136,777
Certificates and other time
1,453,236
1,587,398
1,639,426
1,691,539
1,529,876
Total interest-bearing deposits
5,552,178
5,439,553
5,416,862
5,471,567
5,326,652
Total deposits
$
9,128,384
$
8,742,601
$
8,725,303
$
8,794,716
$
8,873,467
Asset Quality:
Nonaccrual loans
$
37,212
$
32,140
$
50,906
$
57,129
$
39,191
Accruing loans 90 or more days past
due
—
—
—
—
—
Total nonperforming loans
37,212
32,140
50,906
57,129
39,191
Foreclosed assets
1,708
2,984
2,548
—
—
Total nonperforming assets
$
38,920
$
35,124
$
53,454
$
57,129
$
39,191
Net charge-offs (recoveries)
$
2,016
$
3,933
$
(1
)
$
714
$
2,577
Nonaccrual loans:
Commercial and industrial
$
8,500
$
9,718
$
18,451
$
15,465
$
5,048
Real estate:
Commercial real estate (including
multi-family residential)
16,459
10,695
18,094
21,268
16,699
Commercial real estate construction and
land development
3,061
4,183
1,641
8,406
5,043
1-4 family residential (including home
equity)
9,056
7,259
12,454
10,368
8,874
Residential construction
—
121
155
1,410
3,288
Consumer and other
136
164
111
212
239
Total nonaccrual loans
$
37,212
$
32,140
$
50,906
$
57,129
$
39,191
Asset Quality Ratios:
Nonperforming assets to total assets
0.36
%
0.33
%
0.50
%
0.53
%
0.37
%
Nonperforming loans to total loans
0.50
%
0.43
%
0.66
%
0.72
%
0.49
%
Allowance for credit losses on loans to
nonperforming loans
217.83
%
262.92
%
186.17
%
168.54
%
233.94
%
Allowance for credit losses on loans to
total loans
1.09
%
1.12
%
1.23
%
1.22
%
1.16
%
Net charge-offs to average loans
(annualized)
0.11
%
0.21
%
0.00
%
0.04
%
0.13
%
Stellar Bancorp, Inc.
GAAP Reconciliation and
Management’s Explanation of Non-GAAP Financial Measures
(Unaudited)
Stellar’s management uses certain non-GAAP
(generally accepted accounting principles) financial measures to
evaluate its performance. Stellar believes that these non-GAAP
financial measures provide meaningful supplemental information
regarding its performance and that management and investors benefit
from referring to these non-GAAP financial measures in assessing
Stellar’s performance and when planning, forecasting, analyzing and
comparing past, present and future periods. Specifically, Stellar
reviews pre-tax, pre-provision income, pre-tax pre-provision ROAA,
tangible book value per share, return on average tangible equity,
tangible equity to tangible assets and net interest margin (tax
equivalent) excluding PAA for internal planning and forecasting
purposes. Stellar has included in this earnings release information
relating to these non-GAAP financial measures for the applicable
periods presented. These non-GAAP measures should not be considered
in isolation or as a substitute for the most directly comparable or
other financial measures calculated in accordance with GAAP.
Moreover, the manner in which Stellar calculates the non-GAAP
financial measures may differ from that of other companies
reporting measures with similar names.
Three Months Ended
Years Ended
2024
2023
2024
2023
December 31
September 30
June 30
March 31
December 31
December 31
December 31
(Dollars and share amounts in
thousands, except per share data)
Net income
$
27,817
$
33,891
$
29,753
$
26,147
$
27,266
$
117,608
$
130,497
Add: Provision for credit losses
942
(5,985
)
(1,935
)
4,098
1,047
(2,880
)
8,943
Add: Provision for income taxes
7,249
8,837
7,792
6,759
6,562
30,637
31,387
Pre-tax, pre-provision income
$
36,008
$
36,743
$
35,610
$
37,004
$
34,875
$
145,365
$
170,827
Total average assets
$
10,649,168
$
10,626,266
$
10,623,865
$
10,686,789
$
10,626,373
$
10,646,474
$
10,746,866
Pre-tax, pre-provision return on
average assets(B)
1.35
%
1.38
%
1.35
%
1.39
%
1.30
%
1.37
%
1.59
%
Total shareholders’ equity
$
1,610,465
$
1,626,123
$
1,565,795
$
1,530,698
$
1,521,018
$
1,610,465
$
1,521,018
Less: Goodwill and core deposit
intangibles, net
589,864
595,434
601,633
607,831
614,030
589,864
614,030
Tangible shareholders’ equity
$
1,020,601
$
1,030,689
$
964,162
$
922,867
$
906,988
$
1,020,601
$
906,988
Shares outstanding at end of period
53,429
53,446
53,564
53,551
53,291
53,429
53,291
Tangible book value per share
$
19.10
$
19.28
$
18.00
$
17.23
$
17.02
$
19.10
$
17.02
Average shareholders’ equity
$
1,614,791
$
1,587,918
$
1,538,124
$
1,528,298
$
1,475,377
$
1,567,469
$
1,455,934
Less: Average goodwill and core deposit
intangibles, net
592,471
598,866
604,722
611,149
617,236
601,768
627,449
Average tangible shareholders’ equity
$
1,022,320
$
989,052
$
933,402
$
917,149
$
858,141
$
965,701
$
828,485
Return on average tangible
equity(B)
10.82
%
13.63
%
12.82
%
11.47
%
12.61
%
12.18
%
15.75
%
Total assets
$
10,905,110
$
10,629,777
$
10,723,663
$
10,729,222
$
10,647,139
$
10,905,110
$
10,647,139
Less: Goodwill and core deposit
intangibles, net
589,864
595,434
601,633
607,831
614,030
589,864
614,030
Tangible assets
$
10,315,246
$
10,034,343
$
10,122,030
$
10,121,391
$
10,033,109
$
10,315,246
$
10,033,109
Tangible equity to tangible
assets
9.89
%
10.27
%
9.53
%
9.12
%
9.04
%
9.89
%
9.04
%
Net interest income (tax equivalent)
$
103,039
$
101,578
$
101,482
$
102,207
$
106,121
$
408,305
$
437,670
Less: Purchase accounting accretion
7,555
6,795
10,098
8,551
11,726
32,999
46,802
Adjusted net interest income (tax
equivalent)
$
95,484
$
94,783
$
91,384
$
93,656
$
94,395
$
375,306
$
390,868
Average earning assets
$
9,653,162
$
9,643,629
$
9,616,874
$
9,645,544
$
9,576,927
$
9,639,849
$
9,695,302
Net interest margin (tax equivalent)
excluding PAA
3.94
%
3.91
%
3.82
%
3.91
%
3.91
%
3.89
%
4.03
%
(A)
Represents total noninterest expense,
excluding acquisition and merger-related expenses, core deposit
intangibles amortization and write-downs on assets moved to held
for sale, divided by the sum of net interest income, excluding
purchase accounting adjustments plus noninterest income, excluding
gains and losses on the sale of assets. Additionally, taxes and
provision for credit losses are not part of this calculation.
(B)
Interim periods annualized.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250130119365/en/
Investor Relations IR@stellar.bank
Stellar Bancorp (NYSE:STEL)
Gráfica de Acción Histórica
De Feb 2025 a Mar 2025
Stellar Bancorp (NYSE:STEL)
Gráfica de Acción Histórica
De Mar 2024 a Mar 2025
