Stellar Bancorp, Inc. Reports Third Quarter 2024 Results
Stellar Bancorp (NYSE: STEL) reported Q3 2024 net income of $33.9 million, or $0.63 per diluted share, up from $29.8 million ($0.56 per share) in Q2 2024. The company achieved a 4.19% tax equivalent net interest margin and improved credit metrics with nonperforming loans decreasing by $18.8 million to $32.1 million. Total assets stood at $10.63 billion, with total loans at $7.55 billion and deposits at $8.74 billion. The company maintained strong capital ratios with a total risk-based capital ratio of 15.91%, while book value per share increased to $30.43.
Stellar Bancorp (NYSE: STEL) ha riportato un reddito netto nel terzo trimestre 2024 di 33,9 milioni di dollari, pari a 0,63 dollari per azione diluita, in aumento rispetto ai 29,8 milioni di dollari (0,56 dollari per azione) del secondo trimestre 2024. L'azienda ha raggiunto un margine di interesse netto equivalente fiscale del 4,19% e ha migliorato i parametri di credito con i prestiti non performanti che sono diminuiti di 18,8 milioni di dollari, attestandosi a 32,1 milioni di dollari. Il totale degli attivi ammontava a 10,63 miliardi di dollari, con prestiti totali pari a 7,55 miliardi di dollari e depositi a 8,74 miliardi di dollari. L'azienda ha mantenuto forti ratio di capitale con un rapporto totale di capitale basato sul rischio del 15,91%, mentre il valore contabile per azione è aumentato a 30,43 dollari.
Stellar Bancorp (NYSE: STEL) reportó ingresos netos de 33,9 millones de dólares en el tercer trimestre de 2024, es decir, 0,63 dólares por acción diluida, un aumento con respecto a 29,8 millones de dólares (0,56 dólares por acción) en el segundo trimestre de 2024. La empresa logró un margen de interés neto equivalente fiscal del 4,19% y mejoró sus métricas crediticias con una disminución de los préstamos no rentables de 18,8 millones de dólares, alcanzando los 32,1 millones de dólares. El total de activos ascendió a 10,63 mil millones de dólares, con préstamos totales de 7,55 mil millones de dólares y depósitos de 8,74 mil millones de dólares. La empresa mantuvo sólidos ratios de capital, con un ratio total de capital basado en el riesgo del 15,91%, mientras que el valor contable por acción aumentó a 30,43 dólares.
스텔라 은행 주식회사 (NYSE: STEL)는 2024년 3분기에 3,390만 달러의 순이익을 보고했으며, 이는 희석 주당 0.63달러에 해당하며, 2024년 2분기의 2,980만 달러(주당 0.56달러)에서 증가한 수치입니다. 이 회사는 세금 대비 순이자 마진이 4.19%에 달하며, 부실 채권이 1,880만 달러 감소해 3,210만 달러로 줄어드는 등 신용 지표를 개선했습니다. 총 자산은 106억 3천만 달러에 달하며, 총 대출은 75억 5천만 달러, 예금은 87억 4천만 달러입니다. 회사는 총 위험 기반 자본 비율이 15.91%로 강력한 자본 비율을 유지하고 있으며, 주당 장부가액은 30.43달러로 증가했습니다.
Stellar Bancorp (NYSE: STEL) a annoncé un revenu net de 33,9 millions de dollars pour le troisième trimestre 2024, soit 0,63 dollar par action diluée, en hausse par rapport à 29,8 millions de dollars (0,56 dollar par action) au deuxième trimestre 2024. L'entreprise a atteint un marge d'intérêt net équivalente fiscale de 4,19% et a amélioré ses indicateurs de crédit avec une diminution des prêts non performants de 18,8 millions de dollars à 32,1 millions de dollars. Le total des actifs s'élevait à 10,63 milliards de dollars, avec des prêts totaux de 7,55 milliards de dollars et des dépôts de 8,74 milliards de dollars. L'entreprise a maintenu de solides ratios de capital avec un ratio de capital total basé sur les risques de 15,91%, tandis que la valeur comptable par action a augmenté à 30,43 dollars.
Stellar Bancorp (NYSE: STEL) hat im 3. Quartal 2024 einen Nettogewinn von 33,9 Millionen US-Dollar bzw. 0,63 US-Dollar pro verwässerter Aktie erzielt, was einem Anstieg gegenüber 29,8 Millionen US-Dollar (0,56 US-Dollar pro Aktie) im 2. Quartal 2024 entspricht. Das Unternehmen erreichte eine steuerlich vergleichbare Nettozinsspanne von 4,19% und verbesserte seine Kreditkennzahlen, da die notleidenden Kredite um 18,8 Millionen US-Dollar auf 32,1 Millionen US-Dollar sanken. Die Gesamtsumme der Vermögenswerte belief sich auf 10,63 Milliarden US-Dollar, mit Gesamtforderungen von 7,55 Milliarden US-Dollar und Einlagen von 8,74 Milliarden US-Dollar. Das Unternehmen hielt starke Kapitalquoten mit einem gesamten risikobasierten Eigenkapitalanteil von 15,91%, während der Buchwert pro Aktie auf 30,43 US-Dollar stieg.
- Net income increased to $33.9 million from $29.8 million QoQ
- Nonperforming loans decreased by $18.8 million to $32.1 million
- Total deposits increased by $17.3 million to $8.74 billion
- Book value per share improved to $30.43 from $29.23
- Risk-based capital ratio strengthened to 15.91% from 15.34%
- Net interest margin declined to 4.19% from 4.24% QoQ
- Total assets decreased by $93.9 million to $10.63 billion
- Total loans decreased by $162.8 million to $7.55 billion
- Purchase accounting accretion income decreased to $6.8 million from $10.1 million
Insights
Strong quarterly performance with
Key strengths include capital build-up with total risk-based capital ratio improving to
The
“We are pleased to announce our third quarter 2024 financial results that reflect our work as we mark the second anniversary of our transformational merger completed on October 1, 2022,” said Robert R. Franklin, Jr., Stellar’s Chief Executive Officer. “Since the merger, we have focused on building the foundation of Stellar Bank. Those efforts include constructing the scalable infrastructure to support an institution with more than
“Stellar Bank is positioned for success as the economic and political environment becomes clearer. Although we can’t predict timing of interest rate changes, we feel comfortable with our revenue outlook. The election cycle will soon be complete and some of the elevated stress and uncertainty around the process will abate,” Mr. Franklin continued.
“Our markets remain resilient. We have positioned the Bank for quality growth and we look forward to furthering the Stellar brand in our markets,” concluded Mr. Franklin.
Third Quarter 2024 Financial Highlights
-
Solid Profitability: Third quarter 2024 net income of
, or diluted earnings per share of$33.9 million , translated into an annualized return on average assets of$0.63 1.27% , an annualized return on average equity of8.49% and an annualized return on average tangible equity of13.63% (1).
-
Strong Net Interest Margin: Tax equivalent net interest margin was
4.19% for the third quarter of 2024 compared to4.24% for the second quarter of 2024. The tax equivalent net interest margin, excluding purchase accounting accretion (“PAA”), was3.91% (1) for the third quarter of 2024 compared to3.82% (1) for the second quarter of 2024.
-
Meaningful Capital and Book Value Build: Total risk-based capital ratio increased to
15.91% at September 30, 2024 from15.34% at June 30, 2024, book value per share increased to from$30.43 at June 30, 2024 and tangible book value per share increased to$29.23 (1) from$19.28 (1) at June 30, 2024.$18.00
-
Improving Credit Metrics: Nonperforming loans decreased
to$18.8 million at September 30, 2024 from$32.1 million at June 30, 2024. Allowance for credit losses on loans to nonperforming loans increased to$50.9 million 262.92% at September 30, 2024 from186.17% at June 30, 2024.
Third Quarter 2024 Results
Net interest income in the third quarter of 2024 increased
Noninterest income for the third quarter of 2024 was
Noninterest expense for the third quarter of 2024 decreased
The efficiency ratio was
___________________ |
(1) Refer to page 10 of this earnings release for the calculation of this non-GAAP financial measure. |
Financial Condition
Total assets at September 30, 2024 were
Total loans at September 30, 2024 decreased
Total deposits at September 30, 2024 increased
During the third quarter 2024, the Company repurchased 108,984 shares at an average price per share of
Asset Quality
Nonperforming assets totaled
The third quarter of 2024 included a reversal of provision for credit losses of
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, October 25, 2024 at 8:00 a.m. Central Time (9:00 a.m. Eastern Time) to discuss its results for the second quarter of 2024. Participants may register for the conference call at https://registrations.events/direct/Q4I635867 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 audio-only webcast may be accessed at https://events.q4inc.com/attendee/992487934. 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
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
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 |
|||||||||||||||
|
September 30 |
|
June 30 |
|
March 31 |
|
December 31 |
|
September 30 |
||||||||||
|
(Dollars in thousands) |
||||||||||||||||||
ASSETS |
|
|
|
|
|
|
|
|
|
||||||||||
Cash and due from banks |
$ |
103,735 |
|
|
$ |
110,341 |
|
|
$ |
74,663 |
|
|
$ |
121,004 |
|
|
$ |
94,970 |
|
Interest-bearing deposits at other financial institutions |
|
412,482 |
|
|
|
379,909 |
|
|
|
325,079 |
|
|
|
278,233 |
|
|
|
207,302 |
|
Total cash and cash equivalents |
|
516,217 |
|
|
|
490,250 |
|
|
|
399,742 |
|
|
|
399,237 |
|
|
|
302,272 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Available for sale securities, at fair value |
|
1,691,752 |
|
|
|
1,630,971 |
|
|
|
1,523,100 |
|
|
|
1,395,680 |
|
|
|
1,414,952 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans held for investment |
|
7,551,124 |
|
|
|
7,713,897 |
|
|
|
7,908,111 |
|
|
|
7,925,133 |
|
|
|
8,004,528 |
|
Less: allowance for credit losses on loans |
|
(84,501 |
) |
|
|
(94,772 |
) |
|
|
(96,285 |
) |
|
|
(91,684 |
) |
|
|
(93,575 |
) |
Loans, net |
|
7,466,623 |
|
|
|
7,619,125 |
|
|
|
7,811,826 |
|
|
|
7,833,449 |
|
|
|
7,910,953 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Accrued interest receivable |
|
39,473 |
|
|
|
43,348 |
|
|
|
45,466 |
|
|
|
44,244 |
|
|
|
43,536 |
|
Premises and equipment, net |
|
113,742 |
|
|
|
113,984 |
|
|
|
115,698 |
|
|
|
118,683 |
|
|
|
119,332 |
|
Federal Home Loan Bank stock |
|
20,123 |
|
|
|
15,089 |
|
|
|
16,050 |
|
|
|
25,051 |
|
|
|
29,022 |
|
Bank-owned life insurance |
|
106,876 |
|
|
|
106,262 |
|
|
|
105,671 |
|
|
|
105,084 |
|
|
|
104,699 |
|
Goodwill |
|
497,318 |
|
|
|
497,318 |
|
|
|
497,318 |
|
|
|
497,318 |
|
|
|
497,318 |
|
Core deposit intangibles, net |
|
98,116 |
|
|
|
104,315 |
|
|
|
110,513 |
|
|
|
116,712 |
|
|
|
122,944 |
|
Other assets |
|
79,537 |
|
|
|
103,001 |
|
|
|
103,838 |
|
|
|
111,681 |
|
|
|
120,432 |
|
Total assets |
$ |
10,629,777 |
|
|
$ |
10,723,663 |
|
|
$ |
10,729,222 |
|
|
$ |
10,647,139 |
|
|
$ |
10,665,460 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
LIABILITIES: |
|
|
|
|
|
|
|
|
|
||||||||||
Deposits: |
|
|
|
|
|
|
|
|
|
||||||||||
Noninterest-bearing |
$ |
3,303,048 |
|
|
$ |
3,308,441 |
|
|
$ |
3,323,149 |
|
|
$ |
3,546,815 |
|
|
$ |
3,656,288 |
|
Interest-bearing |
|
|
|
|
|
|
|
|
|
||||||||||
Demand |
|
1,571,504 |
|
|
|
1,564,405 |
|
|
|
1,576,261 |
|
|
|
1,659,999 |
|
|
|
1,397,492 |
|
Money market and savings |
|
2,280,651 |
|
|
|
2,213,031 |
|
|
|
2,203,767 |
|
|
|
2,136,777 |
|
|
|
2,128,950 |
|
Certificates and other time |
|
1,587,398 |
|
|
|
1,639,426 |
|
|
|
1,691,539 |
|
|
|
1,529,876 |
|
|
|
1,503,891 |
|
Total interest-bearing deposits |
|
5,439,553 |
|
|
|
5,416,862 |
|
|
|
5,471,567 |
|
|
|
5,326,652 |
|
|
|
5,030,333 |
|
Total deposits |
|
8,742,601 |
|
|
|
8,725,303 |
|
|
|
8,794,716 |
|
|
|
8,873,467 |
|
|
|
8,686,621 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Accrued interest payable |
|
16,915 |
|
|
|
12,327 |
|
|
|
12,227 |
|
|
|
11,288 |
|
|
|
7,612 |
|
Borrowed funds |
|
60,000 |
|
|
|
240,000 |
|
|
|
215,000 |
|
|
|
50,000 |
|
|
|
323,981 |
|
Subordinated debt |
|
110,064 |
|
|
|
109,964 |
|
|
|
109,864 |
|
|
|
109,765 |
|
|
|
109,665 |
|
Other liabilities |
|
74,074 |
|
|
|
70,274 |
|
|
|
66,717 |
|
|
|
81,601 |
|
|
|
76,735 |
|
Total liabilities |
|
9,003,654 |
|
|
|
9,157,868 |
|
|
|
9,198,524 |
|
|
|
9,126,121 |
|
|
|
9,204,614 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
SHAREHOLDERS’ EQUITY: |
|
|
|
|
|
|
|
|
|
||||||||||
Common stock |
|
535 |
|
|
|
536 |
|
|
|
536 |
|
|
|
533 |
|
|
|
533 |
|
Capital surplus |
|
1,238,619 |
|
|
|
1,238,477 |
|
|
|
1,235,221 |
|
|
|
1,232,627 |
|
|
|
1,231,686 |
|
Retained earnings |
|
474,905 |
|
|
|
447,948 |
|
|
|
425,130 |
|
|
|
405,945 |
|
|
|
385,600 |
|
Accumulated other comprehensive loss |
|
(87,936 |
) |
|
|
(121,166 |
) |
|
|
(130,189 |
) |
|
|
(118,087 |
) |
|
|
(156,973 |
) |
Total shareholders’ equity |
|
1,626,123 |
|
|
|
1,565,795 |
|
|
|
1,530,698 |
|
|
|
1,521,018 |
|
|
|
1,460,846 |
|
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
$ |
10,629,777 |
|
|
$ |
10,723,663 |
|
|
$ |
10,729,222 |
|
|
$ |
10,647,139 |
|
|
$ |
10,665,460 |
Stellar Bancorp, Inc. |
|||||||||||||||||||||||
Financial Highlights |
|||||||||||||||||||||||
(Unaudited) |
|||||||||||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||||||||||
|
September 30 |
|
June 30 |
|
March 31 |
|
December 31 |
|
September 30 |
|
September 30 |
|
September 30 |
||||||||||
|
|
||||||||||||||||||||||
INTEREST INCOME: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans, including fees |
$ |
132,372 |
|
|
$ |
135,885 |
|
|
$ |
134,685 |
|
$ |
139,114 |
|
$ |
138,948 |
|
$ |
402,942 |
|
|
$ |
398,608 |
Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Taxable |
|
13,898 |
|
|
|
11,923 |
|
|
|
9,293 |
|
|
9,622 |
|
|
9,493 |
|
|
35,114 |
|
|
|
28,872 |
Tax-exempt |
|
814 |
|
|
|
816 |
|
|
|
818 |
|
|
418 |
|
|
437 |
|
|
2,448 |
|
|
|
2,135 |
Deposits in other financial institutions |
|
4,692 |
|
|
|
3,555 |
|
|
|
3,627 |
|
|
3,021 |
|
|
2,391 |
|
|
11,874 |
|
|
|
9,027 |
Total interest income |
|
151,776 |
|
|
|
152,179 |
|
|
|
148,423 |
|
|
152,175 |
|
|
151,269 |
|
|
452,378 |
|
|
|
438,642 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
INTEREST EXPENSE: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Demand, money market and savings deposits |
|
29,440 |
|
|
|
28,399 |
|
|
|
27,530 |
|
|
25,033 |
|
|
23,557 |
|
|
85,369 |
|
|
|
62,302 |
Certificates and other time deposits |
|
18,073 |
|
|
|
18,758 |
|
|
|
15,084 |
|
|
15,075 |
|
|
13,282 |
|
|
51,915 |
|
|
|
26,211 |
Borrowed funds |
|
840 |
|
|
|
1,700 |
|
|
|
1,774 |
|
|
4,154 |
|
|
5,801 |
|
|
4,314 |
|
|
|
13,653 |
Subordinated debt |
|
1,916 |
|
|
|
1,912 |
|
|
|
1,917 |
|
|
1,983 |
|
|
1,908 |
|
|
5,745 |
|
|
|
5,647 |
Total interest expense |
|
50,269 |
|
|
|
50,769 |
|
|
|
46,305 |
|
|
46,245 |
|
|
44,548 |
|
|
147,343 |
|
|
|
107,813 |
NET INTEREST INCOME |
|
101,507 |
|
|
|
101,410 |
|
|
|
102,118 |
|
|
105,930 |
|
|
106,721 |
|
|
305,035 |
|
|
|
330,829 |
(Reversal of) provision for credit losses |
|
(5,985 |
) |
|
|
(1,935 |
) |
|
|
4,098 |
|
|
1,047 |
|
|
2,315 |
|
|
(3,822 |
) |
|
|
7,896 |
Net interest income after provision for credit losses |
|
107,492 |
|
|
|
103,345 |
|
|
|
98,020 |
|
|
104,883 |
|
|
104,406 |
|
|
308,857 |
|
|
|
322,933 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
NONINTEREST INCOME: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Service charges on deposit accounts |
|
1,594 |
|
|
|
1,648 |
|
|
|
1,598 |
|
|
1,520 |
|
|
1,620 |
|
|
4,840 |
|
|
|
4,544 |
Gain (loss) on sale of assets |
|
432 |
|
|
|
(64 |
) |
|
|
513 |
|
|
198 |
|
|
— |
|
|
881 |
|
|
|
192 |
Bank-owned life insurance |
|
614 |
|
|
|
591 |
|
|
|
587 |
|
|
573 |
|
|
551 |
|
|
1,792 |
|
|
|
1,605 |
Debit card and ATM income |
|
551 |
|
|
|
543 |
|
|
|
527 |
|
|
542 |
|
|
935 |
|
|
1,621 |
|
|
|
4,454 |
Other |
|
3,111 |
|
|
|
2,698 |
|
|
|
3,071 |
|
|
4,053 |
|
|
1,589 |
|
|
8,880 |
|
|
|
6,881 |
Total noninterest income |
|
6,302 |
|
|
|
5,416 |
|
|
|
6,296 |
|
|
6,886 |
|
|
4,695 |
|
|
18,014 |
|
|
|
17,676 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
NONINTEREST EXPENSE: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Salaries and employee benefits |
|
41,123 |
|
|
|
39,061 |
|
|
|
41,376 |
|
|
40,464 |
|
|
39,495 |
|
|
121,560 |
|
|
|
116,570 |
Net occupancy and equipment |
|
4,570 |
|
|
|
4,503 |
|
|
|
4,390 |
|
|
4,572 |
|
|
4,455 |
|
|
13,463 |
|
|
|
12,360 |
Depreciation |
|
1,911 |
|
|
|
1,948 |
|
|
|
1,964 |
|
|
1,955 |
|
|
1,952 |
|
|
5,823 |
|
|
|
5,629 |
Data processing and software amortization |
|
5,706 |
|
|
|
5,501 |
|
|
|
4,894 |
|
|
5,000 |
|
|
4,798 |
|
|
16,101 |
|
|
|
14,526 |
Professional fees |
|
1,714 |
|
|
|
1,620 |
|
|
|
2,662 |
|
|
3,867 |
|
|
997 |
|
|
5,996 |
|
|
|
4,088 |
Regulatory assessments and FDIC insurance |
|
1,779 |
|
|
|
2,299 |
|
|
|
1,854 |
|
|
5,169 |
|
|
1,814 |
|
|
5,932 |
|
|
|
5,863 |
Amortization of intangibles |
|
6,212 |
|
|
|
6,215 |
|
|
|
6,212 |
|
|
6,247 |
|
|
6,876 |
|
|
18,639 |
|
|
|
20,636 |
Communications |
|
827 |
|
|
|
847 |
|
|
|
937 |
|
|
743 |
|
|
663 |
|
|
2,611 |
|
|
|
2,053 |
Advertising |
|
878 |
|
|
|
891 |
|
|
|
765 |
|
|
1,004 |
|
|
877 |
|
|
2,534 |
|
|
|
2,623 |
Acquisition and merger-related expenses |
|
— |
|
|
|
— |
|
|
|
— |
|
|
3,072 |
|
|
3,421 |
|
|
— |
|
|
|
12,483 |
Other |
|
6,346 |
|
|
|
8,331 |
|
|
|
6,356 |
|
|
5,848 |
|
|
5,400 |
|
|
21,033 |
|
|
|
15,722 |
Total noninterest expense |
|
71,066 |
|
|
|
71,216 |
|
|
|
71,410 |
|
|
77,941 |
|
|
70,748 |
|
|
213,692 |
|
|
|
212,553 |
INCOME BEFORE INCOME TAXES |
|
42,728 |
|
|
|
37,545 |
|
|
|
32,906 |
|
|
33,828 |
|
|
38,353 |
|
|
113,179 |
|
|
|
128,056 |
Provision for income taxes |
|
8,837 |
|
|
|
7,792 |
|
|
|
6,759 |
|
|
6,562 |
|
|
7,445 |
|
|
23,388 |
|
|
|
24,825 |
NET INCOME |
$ |
33,891 |
|
|
$ |
29,753 |
|
|
$ |
26,147 |
|
$ |
27,266 |
|
$ |
30,908 |
|
$ |
89,791 |
|
|
$ |
103,231 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
EARNINGS PER SHARE |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic |
$ |
0.63 |
|
|
$ |
0.56 |
|
|
$ |
0.49 |
|
$ |
0.51 |
|
$ |
0.58 |
|
$ |
1.68 |
|
|
$ |
1.94 |
Diluted |
$ |
0.63 |
|
|
$ |
0.56 |
|
|
$ |
0.49 |
|
$ |
0.51 |
|
$ |
0.58 |
|
$ |
1.68 |
|
|
$ |
1.94 |
Stellar Bancorp, Inc. |
|||||||||||||||||||||||||||
Financial Highlights |
|||||||||||||||||||||||||||
(Unaudited) |
|||||||||||||||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||||||||||||||
|
September 30 |
|
June 30 |
|
March 31 |
|
December 31 |
|
September 30 |
|
September 30 |
|
September 30 |
||||||||||||||
|
(Dollars and share amounts in thousands, except per share data) |
||||||||||||||||||||||||||
Net income |
$ |
33,891 |
|
|
$ |
29,753 |
|
|
$ |
26,147 |
|
|
$ |
27,266 |
|
|
$ |
30,908 |
|
|
$ |
89,791 |
|
|
$ |
103,231 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Earnings per share, basic |
$ |
0.63 |
|
|
$ |
0.56 |
|
|
$ |
0.49 |
|
|
$ |
0.51 |
|
|
$ |
0.58 |
|
|
$ |
1.68 |
|
|
$ |
1.94 |
|
Earnings per share, diluted |
$ |
0.63 |
|
|
$ |
0.56 |
|
|
$ |
0.49 |
|
|
$ |
0.51 |
|
|
$ |
0.58 |
|
|
$ |
1.68 |
|
|
$ |
1.94 |
|
Dividends per share |
$ |
0.13 |
|
|
$ |
0.13 |
|
|
$ |
0.13 |
|
|
$ |
0.13 |
|
|
$ |
0.13 |
|
|
$ |
0.39 |
|
|
$ |
0.39 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Return on average assets(A) |
|
1.27 |
% |
|
|
1.13 |
% |
|
|
0.98 |
% |
|
|
1.02 |
% |
|
|
1.14 |
% |
|
|
1.13 |
% |
|
|
1.28 |
% |
Return on average equity(A) |
|
8.49 |
% |
|
|
7.78 |
% |
|
|
6.88 |
% |
|
|
7.33 |
% |
|
|
8.34 |
% |
|
|
7.73 |
% |
|
|
9.52 |
% |
Return on average tangible equity(A)(B) |
|
13.63 |
% |
|
|
12.82 |
% |
|
|
11.47 |
% |
|
|
12.61 |
% |
|
|
14.47 |
% |
|
|
12.67 |
% |
|
|
16.86 |
% |
Net interest margin (tax equivalent)(A)(C) |
|
4.19 |
% |
|
|
4.24 |
% |
|
|
4.26 |
% |
|
|
4.40 |
% |
|
|
4.37 |
% |
|
|
4.23 |
% |
|
|
4.55 |
% |
Net interest margin (tax equivalent) excluding PAA(A)(B)(C) |
|
3.91 |
% |
|
|
3.82 |
% |
|
|
3.91 |
% |
|
|
3.91 |
% |
|
|
3.87 |
% |
|
|
3.88 |
% |
|
|
4.07 |
% |
Efficiency ratio(D) |
|
66.18 |
% |
|
|
66.63 |
% |
|
|
66.18 |
% |
|
|
69.21 |
% |
|
|
63.50 |
% |
|
|
66.33 |
% |
|
|
61.02 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Capital Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Stellar Bancorp, Inc. (Consolidated) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Equity to assets |
|
15.30 |
% |
|
|
14.60 |
% |
|
|
14.27 |
% |
|
|
14.29 |
% |
|
|
13.70 |
% |
|
|
15.30 |
% |
|
|
13.70 |
% |
Tangible equity to tangible assets(B) |
|
10.27 |
% |
|
|
9.53 |
% |
|
|
9.12 |
% |
|
|
9.04 |
% |
|
|
8.37 |
% |
|
|
10.27 |
% |
|
|
8.37 |
% |
Estimated Total capital ratio (to risk-weighted assets) |
|
15.91 |
% |
|
|
15.34 |
% |
|
|
14.62 |
% |
|
|
14.02 |
% |
|
|
13.61 |
% |
|
|
15.91 |
% |
|
|
13.61 |
% |
Estimated Common equity Tier 1 capital (to risk weighted assets) |
|
13.62 |
% |
|
|
12.98 |
% |
|
|
12.29 |
% |
|
|
11.77 |
% |
|
|
11.30 |
% |
|
|
13.62 |
% |
|
|
11.30 |
% |
Estimated Tier 1 capital (to risk-weighted assets) |
|
13.74 |
% |
|
|
13.10 |
% |
|
|
12.41 |
% |
|
|
11.89 |
% |
|
|
11.41 |
% |
|
|
13.74 |
% |
|
|
11.41 |
% |
Estimated Tier 1 leverage (to average tangible assets) |
|
11.25 |
% |
|
|
10.93 |
% |
|
|
10.55 |
% |
|
|
10.18 |
% |
|
|
9.82 |
% |
|
|
11.25 |
% |
|
|
9.82 |
% |
Stellar Bank |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Estimated Total capital ratio (to risk-weighted assets) |
|
15.07 |
% |
|
|
14.65 |
% |
|
|
14.13 |
% |
|
|
13.65 |
% |
|
|
13.32 |
% |
|
|
15.07 |
% |
|
|
13.32 |
% |
Estimated Common equity Tier 1 capital (to risk-weighted assets) |
|
13.63 |
% |
|
|
13.12 |
% |
|
|
12.61 |
% |
|
|
12.20 |
% |
|
|
11.80 |
% |
|
|
13.63 |
% |
|
|
11.80 |
% |
Estimated Tier 1 capital (to risk-weighted assets) |
|
13.63 |
% |
|
|
13.12 |
% |
|
|
12.61 |
% |
|
|
12.20 |
% |
|
|
11.80 |
% |
|
|
13.63 |
% |
|
|
11.80 |
% |
Estimated Tier 1 leverage (to average tangible assets) |
|
11.16 |
% |
|
|
10.94 |
% |
|
|
10.72 |
% |
|
|
10.44 |
% |
|
|
10.15 |
% |
|
|
11.16 |
% |
|
|
10.15 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Other Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Weighted average shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Basic |
|
53,541 |
|
|
|
53,572 |
|
|
|
53,343 |
|
|
|
53,282 |
|
|
|
53,313 |
|
|
|
53,485 |
|
|
|
53,211 |
|
Diluted |
53,580 |
53,608 |
53,406 |
53,350 |
53,380 |
53,531 |
53,300 |
||||||||||||||||||||
Period end shares outstanding |
|
53,446 |
|
|
|
53,564 |
|
|
|
53,551 |
|
|
|
53,291 |
|
|
|
53,322 |
|
|
|
53,446 |
|
|
|
53,322 |
|
Book value per share |
$ |
30.43 |
|
|
$ |
29.23 |
|
|
$ |
28.58 |
|
|
$ |
28.54 |
|
|
$ |
27.40 |
|
|
$ |
30.43 |
|
|
$ |
27.40 |
|
Tangible book value per share(B) |
$ |
19.28 |
|
|
$ |
18.00 |
|
|
$ |
17.23 |
|
|
$ |
17.02 |
|
|
$ |
15.76 |
|
|
$ |
19.28 |
|
|
$ |
15.76 |
|
Employees - full-time equivalents |
|
1,040 |
|
|
|
1,045 |
|
|
|
1,007 |
|
|
|
998 |
|
|
|
1,008 |
|
|
|
1,040 |
|
|
|
1,008 |
|
(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 loans, securities and assets. Additionally, taxes and provision for credit losses are not part of this calculation. |
Stellar Bancorp, Inc. |
|||||||||||||||||||||||||||||
Financial Highlights |
|||||||||||||||||||||||||||||
(Unaudited) |
|||||||||||||||||||||||||||||
Three Months Ended |
|||||||||||||||||||||||||||||
|
September 30, 2024 |
|
June 30, 2024 |
|
September 30, 2023 |
||||||||||||||||||||||||
|
Average
|
|
Interest
|
|
Average
|
|
Average
|
|
Interest
|
|
Average
|
|
Average
|
|
Interest
|
|
Average
|
||||||||||||
|
(Dollars in thousands) |
||||||||||||||||||||||||||||
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest-Earning Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loans |
$ |
7,627,522 |
|
|
$ |
132,372 |
|
6.90 |
% |
|
$ |
7,808,320 |
|
|
$ |
135,885 |
|
7.00 |
% |
|
$ |
8,043,706 |
|
|
$ |
138,948 |
|
6.85 |
% |
Securities |
|
1,676,614 |
|
|
|
14,712 |
|
3.49 |
% |
|
|
1,549,638 |
|
|
|
12,739 |
|
3.31 |
% |
|
|
1,471,916 |
|
|
|
9,930 |
|
2.68 |
% |
Deposits in other financial institutions |
|
339,493 |
|
|
|
4,692 |
|
5.50 |
% |
|
|
258,916 |
|
|
|
3,555 |
|
5.52 |
% |
|
|
181,931 |
|
|
|
2,391 |
|
5.21 |
% |
Total interest-earning assets |
|
9,643,629 |
|
|
$ |
151,776 |
|
6.26 |
% |
|
|
9,616,874 |
|
|
$ |
152,179 |
|
6.36 |
% |
|
|
9,697,553 |
|
|
$ |
151,269 |
|
6.19 |
% |
Allowance for credit losses on loans |
|
(94,785 |
) |
|
|
|
|
|
|
(96,306 |
) |
|
|
|
|
|
|
(99,892 |
) |
|
|
|
|
||||||
Noninterest-earning assets |
|
1,077,422 |
|
|
|
|
|
|
|
1,103,297 |
|
|
|
|
|
|
|
1,143,634 |
|
|
|
|
|
||||||
Total assets |
$ |
10,626,266 |
|
|
|
|
|
|
$ |
10,623,865 |
|
|
|
|
|
|
$ |
10,741,295 |
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Liabilities and Shareholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest-Bearing Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest-bearing demand deposits |
$ |
1,606,736 |
|
|
$ |
12,458 |
|
3.08 |
% |
|
$ |
1,545,096 |
|
|
$ |
12,213 |
|
3.18 |
% |
|
$ |
1,400,508 |
|
|
$ |
10,415 |
|
2.95 |
% |
Money market and savings deposits |
|
2,254,767 |
|
|
|
16,982 |
|
3.00 |
% |
|
|
2,227,393 |
|
|
|
16,186 |
|
2.92 |
% |
|
|
2,166,610 |
|
|
|
13,142 |
|
2.41 |
% |
Certificates and other time deposits |
|
1,620,908 |
|
|
|
18,073 |
|
4.44 |
% |
|
|
1,694,536 |
|
|
|
18,758 |
|
4.45 |
% |
|
|
1,400,367 |
|
|
|
13,282 |
|
3.76 |
% |
Borrowed funds |
|
49,077 |
|
|
|
840 |
|
6.81 |
% |
|
|
112,187 |
|
|
|
1,700 |
|
6.09 |
% |
|
|
411,212 |
|
|
|
5,801 |
|
5.60 |
% |
Subordinated debt |
|
110,007 |
|
|
|
1,916 |
|
6.93 |
% |
|
|
109,910 |
|
|
|
1,912 |
|
7.00 |
% |
|
|
109,608 |
|
|
|
1,908 |
|
6.91 |
% |
Total interest-bearing liabilities |
|
5,641,495 |
|
|
$ |
50,269 |
|
3.54 |
% |
|
|
5,689,122 |
|
|
$ |
50,769 |
|
3.59 |
% |
|
|
5,488,305 |
|
|
$ |
44,548 |
|
3.22 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Noninterest-Bearing Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Noninterest-bearing demand deposits |
|
3,303,726 |
|
|
|
|
|
|
|
3,308,633 |
|
|
|
|
|
|
|
3,695,592 |
|
|
|
|
|
||||||
Other liabilities |
|
93,127 |
|
|
|
|
|
|
|
87,986 |
|
|
|
|
|
|
|
86,389 |
|
|
|
|
|
||||||
Total liabilities |
|
9,038,348 |
|
|
|
|
|
|
|
9,085,741 |
|
|
|
|
|
|
|
9,270,286 |
|
|
|
|
|
||||||
Shareholders’ equity |
|
1,587,918 |
|
|
|
|
|
|
|
1,538,124 |
|
|
|
|
|
|
|
1,471,009 |
|
|
|
|
|
||||||
Total liabilities and shareholders’ equity |
$ |
10,626,266 |
|
|
|
|
|
|
$ |
10,623,865 |
|
|
|
|
|
|
$ |
10,741,295 |
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net interest rate spread |
|
|
|
|
2.72 |
% |
|
|
|
|
|
2.77 |
% |
|
|
|
|
|
2.97 |
% |
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net interest income and margin |
|
|
$ |
101,507 |
|
4.19 |
% |
|
|
|
$ |
101,410 |
|
4.24 |
% |
|
|
|
$ |
106,721 |
|
4.37 |
% |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net interest income and net interest margin (tax equivalent) |
|
|
$ |
101,578 |
|
4.19 |
% |
|
|
|
$ |
101,482 |
|
4.24 |
% |
|
|
|
$ |
106,919 |
|
4.37 |
% |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cost of funds |
|
|
|
|
2.24 |
% |
|
|
|
|
|
2.27 |
% |
|
|
|
|
|
1.92 |
% |
|||||||||
Cost of deposits |
|
|
|
|
2.15 |
% |
|
|
|
|
|
2.16 |
% |
|
|
|
|
|
1.69 |
% |
Stellar Bancorp, Inc. |
|||||||||||||||||||
Financial Highlights |
|||||||||||||||||||
(Unaudited) |
|||||||||||||||||||
|
Nine Months Ended September 30, |
||||||||||||||||||
|
2024 |
|
2023 |
||||||||||||||||
|
Average
|
|
Interest
|
|
Average
|
|
Average
|
|
Interest
|
|
Average
|
||||||||
|
(Dollars in thousands) |
||||||||||||||||||
Assets |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest-Earning Assets: |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Loans |
$ |
7,790,957 |
|
|
$ |
402,942 |
|
6.91 |
% |
|
$ |
7,957,911 |
|
|
$ |
398,608 |
|
6.70 |
% |
Securities |
|
1,556,462 |
|
|
|
37,562 |
|
3.22 |
% |
|
|
1,525,808 |
|
|
|
31,007 |
|
2.72 |
% |
Deposits in other financial institutions |
|
287,960 |
|
|
|
11,874 |
|
5.51 |
% |
|
|
251,475 |
|
|
|
9,027 |
|
4.80 |
% |
Total interest-earning assets |
|
9,635,379 |
|
|
$ |
452,378 |
|
6.27 |
% |
|
|
9,735,194 |
|
|
$ |
438,642 |
|
6.02 |
% |
Allowance for credit losses on loans |
|
(94,236 |
) |
|
|
|
|
|
|
(96,570 |
) |
|
|
|
|
||||
Noninterest-earning assets |
|
1,104,426 |
|
|
|
|
|
|
|
1,148,847 |
|
|
|
|
|
||||
Total assets |
$ |
10,645,569 |
|
|
|
|
|
|
$ |
10,787,471 |
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities and Shareholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest-Bearing Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest-bearing demand deposits |
$ |
1,616,313 |
|
|
$ |
36,949 |
|
3.05 |
% |
|
$ |
1,478,547 |
|
|
$ |
28,141 |
|
2.54 |
% |
Money market and savings deposits |
|
2,211,148 |
|
|
|
48,420 |
|
2.93 |
% |
|
|
2,291,588 |
|
|
|
34,161 |
|
1.99 |
% |
Certificates and other time deposits |
|
1,586,623 |
|
|
|
51,915 |
|
4.37 |
% |
|
|
1,164,572 |
|
|
|
26,211 |
|
3.01 |
% |
Borrowed funds |
|
98,374 |
|
|
|
4,314 |
|
5.86 |
% |
|
|
333,220 |
|
|
|
13,653 |
|
5.48 |
% |
Subordinated debt |
|
109,909 |
|
|
|
5,745 |
|
6.98 |
% |
|
|
109,508 |
|
|
|
5,647 |
|
6.89 |
% |
Total interest-bearing liabilities |
|
5,622,367 |
|
|
$ |
147,343 |
|
3.50 |
% |
|
|
5,377,435 |
|
|
$ |
107,813 |
|
2.68 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Noninterest-Bearing Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Noninterest-bearing demand deposits |
|
3,379,096 |
|
|
|
|
|
|
|
3,878,760 |
|
|
|
|
|
||||
Other liabilities |
|
92,527 |
|
|
|
|
|
|
|
81,894 |
|
|
|
|
|
||||
Total liabilities |
|
9,093,990 |
|
|
|
|
|
|
|
9,338,089 |
|
|
|
|
|
||||
Shareholders’ equity |
|
1,551,579 |
|
|
|
|
|
|
|
1,449,382 |
|
|
|
|
|
||||
Total liabilities and shareholders' equity |
$ |
10,645,569 |
|
|
|
|
|
|
$ |
10,787,471 |
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net interest rate spread |
|
|
|
|
2.77 |
% |
|
|
|
|
|
3.34 |
% |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net interest income and margin |
|
|
$ |
305,035 |
|
4.23 |
% |
|
|
|
$ |
330,829 |
|
4.54 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net interest income and net interest margin (tax equivalent) |
|
|
$ |
305,266 |
|
4.23 |
% |
|
|
|
$ |
331,549 |
|
4.55 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Cost of funds |
|
|
|
|
2.19 |
% |
|
|
|
|
|
1.56 |
% |
||||||
Cost of deposits |
|
|
|
|
2.09 |
% |
|
|
|
|
|
1.34 |
% |
Stellar Bancorp, Inc. |
|||||||||||||||||||
Financial Highlights |
|||||||||||||||||||
(Unaudited) |
|||||||||||||||||||
|
Three Months Ended |
||||||||||||||||||
|
2024 |
|
2023 |
||||||||||||||||
|
September 30 |
|
June 30 |
|
March 31 |
|
December 31 |
|
September 30 |
||||||||||
|
(Dollars in thousands) |
||||||||||||||||||
Period-end Loan Portfolio: |
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial |
$ |
1,347,876 |
|
|
$ |
1,392,435 |
|
|
$ |
1,451,462 |
|
|
$ |
1,409,002 |
|
|
$ |
1,474,600 |
|
Paycheck Protection Program (PPP) |
|
2,877 |
|
|
|
3,629 |
|
|
|
4,293 |
|
|
|
5,100 |
|
|
|
5,968 |
|
Real estate: |
|
|
|
|
|
|
|
|
|
||||||||||
Commercial real estate (including multi-family residential) |
|
3,976,296 |
|
|
|
4,029,671 |
|
|
|
4,049,885 |
|
|
|
4,071,807 |
|
|
|
4,076,606 |
|
Commercial real estate construction and land development |
|
890,316 |
|
|
|
922,805 |
|
|
|
1,039,443 |
|
|
|
1,060,406 |
|
|
|
1,078,265 |
|
1-4 family residential (including home equity) |
|
1,112,235 |
|
|
|
1,098,681 |
|
|
|
1,049,316 |
|
|
|
1,047,174 |
|
|
|
1,024,945 |
|
Residential construction |
|
161,494 |
|
|
|
200,134 |
|
|
|
252,573 |
|
|
|
267,357 |
|
|
|
289,553 |
|
Consumer and other |
|
60,030 |
|
|
|
66,542 |
|
|
|
61,139 |
|
|
|
64,287 |
|
|
|
54,591 |
|
Total loans held for investment |
$ |
7,551,124 |
|
|
$ |
7,713,897 |
|
|
$ |
7,908,111 |
|
|
$ |
7,925,133 |
|
|
$ |
8,004,528 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits: |
|
|
|
|
|
|
|
|
|
||||||||||
Noninterest-bearing |
$ |
3,303,048 |
|
|
$ |
3,308,441 |
|
|
$ |
3,323,149 |
|
|
$ |
3,546,815 |
|
|
$ |
3,656,288 |
|
Interest-bearing |
|
|
|
|
|
|
|
|
|
||||||||||
Demand |
|
1,571,504 |
|
|
|
1,564,405 |
|
|
|
1,576,261 |
|
|
|
1,659,999 |
|
|
|
1,397,492 |
|
Money market and savings |
|
2,280,651 |
|
|
|
2,213,031 |
|
|
|
2,203,767 |
|
|
|
2,136,777 |
|
|
|
2,128,950 |
|
Certificates and other time |
|
1,587,398 |
|
|
|
1,639,426 |
|
|
|
1,691,539 |
|
|
|
1,529,876 |
|
|
|
1,503,891 |
|
Total interest-bearing deposits |
|
5,439,553 |
|
|
|
5,416,862 |
|
|
|
5,471,567 |
|
|
|
5,326,652 |
|
|
|
5,030,333 |
|
Total deposits |
$ |
8,742,601 |
|
|
$ |
8,725,303 |
|
|
$ |
8,794,716 |
|
|
$ |
8,873,467 |
|
|
$ |
8,686,621 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Asset Quality: |
|
|
|
|
|
|
|
|
|
||||||||||
Nonaccrual loans |
$ |
32,140 |
|
|
$ |
50,906 |
|
|
$ |
57,129 |
|
|
$ |
39,191 |
|
|
$ |
38,291 |
|
Accruing loans 90 or more days past due |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total nonperforming loans |
|
32,140 |
|
|
|
50,906 |
|
|
|
57,129 |
|
|
|
39,191 |
|
|
|
38,291 |
|
Other real estate |
|
2,984 |
|
|
|
2,548 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total nonperforming assets |
$ |
35,124 |
|
|
$ |
53,454 |
|
|
$ |
57,129 |
|
|
$ |
39,191 |
|
|
$ |
38,291 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net charge-offs (recoveries) |
$ |
3,933 |
|
|
$ |
(1 |
) |
|
$ |
714 |
|
|
$ |
2,577 |
|
|
$ |
8,116 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Nonaccrual loans: |
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial |
$ |
9,718 |
|
|
$ |
18,451 |
|
|
$ |
15,465 |
|
|
$ |
5,048 |
|
|
$ |
14,991 |
|
Real estate: |
|
|
|
|
|
|
|
|
|
||||||||||
Commercial real estate (including multi-family residential) |
|
10,695 |
|
|
|
18,094 |
|
|
|
21,268 |
|
|
|
16,699 |
|
|
|
13,563 |
|
Commercial real estate construction and land development |
|
4,183 |
|
|
|
1,641 |
|
|
|
8,406 |
|
|
|
5,043 |
|
|
|
170 |
|
1-4 family residential (including home equity) |
|
7,259 |
|
|
|
12,454 |
|
|
|
10,368 |
|
|
|
8,874 |
|
|
|
8,442 |
|
Residential construction |
|
121 |
|
|
|
155 |
|
|
|
1,410 |
|
|
|
3,288 |
|
|
|
635 |
|
Consumer and other |
|
164 |
|
|
|
111 |
|
|
|
212 |
|
|
|
239 |
|
|
|
490 |
|
Total nonaccrual loans |
$ |
32,140 |
|
|
$ |
50,906 |
|
|
$ |
57,129 |
|
|
$ |
39,191 |
|
|
$ |
38,291 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Asset Quality Ratios: |
|
|
|
|
|
|
|
|
|
||||||||||
Nonperforming assets to total assets |
|
0.33 |
% |
|
|
0.50 |
% |
|
|
0.53 |
% |
|
|
0.37 |
% |
|
|
0.36 |
% |
Nonperforming loans to total loans |
|
0.43 |
% |
|
|
0.66 |
% |
|
|
0.72 |
% |
|
|
0.49 |
% |
|
|
0.48 |
% |
Allowance for credit losses on loans to nonperforming loans |
|
262.92 |
% |
|
|
186.17 |
% |
|
|
168.54 |
% |
|
|
233.94 |
% |
|
|
244.38 |
% |
Allowance for credit losses on loans to total loans |
|
1.12 |
% |
|
|
1.23 |
% |
|
|
1.22 |
% |
|
|
1.16 |
% |
|
|
1.17 |
% |
Net charge-offs to average loans (annualized) |
|
0.21 |
% |
|
|
0.00 |
% |
|
|
0.04 |
% |
|
|
0.13 |
% |
|
|
0.40 |
% |
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 |
|
Nine Months Ended |
||||||||||||||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||||||||||||||
|
September 30 |
|
June 30 |
|
March 31 |
|
December 31 |
|
September 30 |
|
September 30 |
|
September 30 |
||||||||||||||
|
(Dollars and share amounts in thousands, except per share data) |
||||||||||||||||||||||||||
Net income |
$ |
33,891 |
|
|
$ |
29,753 |
|
|
$ |
26,147 |
|
|
$ |
27,266 |
|
|
$ |
30,908 |
|
|
$ |
89,791 |
|
|
$ |
103,231 |
|
Add: Provision for credit losses |
|
(5,985 |
) |
|
|
(1,935 |
) |
|
|
4,098 |
|
|
|
1,047 |
|
|
|
2,315 |
|
|
|
(3,822 |
) |
|
|
7,896 |
|
Add: Provision for income taxes |
|
8,837 |
|
|
|
7,792 |
|
|
|
6,759 |
|
|
|
6,562 |
|
|
|
7,445 |
|
|
|
23,388 |
|
|
|
24,825 |
|
Pre-tax, pre-provision income |
$ |
36,743 |
|
|
$ |
35,610 |
|
|
$ |
37,004 |
|
|
$ |
34,875 |
|
|
$ |
40,668 |
|
|
$ |
109,357 |
|
|
$ |
135,952 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total average assets |
$ |
10,626,266 |
|
|
$ |
10,623,865 |
|
|
$ |
10,686,789 |
|
|
$ |
10,626,373 |
|
|
$ |
10,741,295 |
|
|
$ |
10,645,569 |
|
|
$ |
10,787,471 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Pre-tax, pre-provision return on average assets(B) |
|
1.38 |
% |
|
|
1.35 |
% |
|
|
1.39 |
% |
|
|
1.30 |
% |
|
|
1.50 |
% |
|
|
1.37 |
% |
|
|
1.68 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total shareholders’ equity |
$ |
1,626,123 |
|
|
$ |
1,565,795 |
|
|
$ |
1,530,698 |
|
|
$ |
1,521,018 |
|
|
$ |
1,460,846 |
|
|
$ |
1,626,123 |
|
|
$ |
1,460,846 |
|
Less: Goodwill and core deposit intangibles, net |
|
595,434 |
|
|
|
601,633 |
|
|
|
607,831 |
|
|
|
614,030 |
|
|
|
620,262 |
|
|
|
595,434 |
|
|
|
620,262 |
|
Tangible shareholders’ equity |
$ |
1,030,689 |
|
|
$ |
964,162 |
|
|
$ |
922,867 |
|
|
$ |
906,988 |
|
|
$ |
840,584 |
|
|
$ |
1,030,689 |
|
|
$ |
840,584 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Shares outstanding at end of period |
|
53,446 |
|
|
|
53,564 |
|
|
|
53,551 |
|
|
|
53,291 |
|
|
|
53,322 |
|
|
|
53,446 |
|
|
|
53,322 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Tangible book value per share |
$ |
19.28 |
|
|
$ |
18.00 |
|
|
$ |
17.23 |
|
|
$ |
17.02 |
|
|
$ |
15.76 |
|
|
$ |
19.28 |
|
|
$ |
15.76 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Average shareholders’ equity |
$ |
1,587,918 |
|
|
$ |
1,538,124 |
|
|
$ |
1,528,298 |
|
|
$ |
1,475,377 |
|
|
$ |
1,471,009 |
|
|
$ |
1,551,579 |
|
|
$ |
1,449,382 |
|
Less: Average goodwill and core deposit intangibles, net |
|
598,866 |
|
|
|
604,722 |
|
|
|
611,149 |
|
|
|
617,236 |
|
|
|
623,864 |
|
|
|
604,890 |
|
|
|
630,890 |
|
Average tangible shareholders’ equity |
$ |
989,052 |
|
|
$ |
933,402 |
|
|
$ |
917,149 |
|
|
$ |
858,141 |
|
|
$ |
847,145 |
|
|
$ |
946,689 |
|
|
$ |
818,492 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Return on average tangible equity(B) |
|
13.63 |
% |
|
|
12.82 |
% |
|
|
11.47 |
% |
|
|
12.61 |
% |
|
|
14.47 |
% |
|
|
12.67 |
% |
|
|
16.86 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total assets |
$ |
10,629,777 |
|
|
$ |
10,723,663 |
|
|
$ |
10,729,222 |
|
|
$ |
10,647,139 |
|
|
$ |
10,665,460 |
|
|
$ |
10,629,777 |
|
|
$ |
10,665,460 |
|
Less: Goodwill and core deposit intangibles, net |
|
595,434 |
|
|
|
601,633 |
|
|
|
607,831 |
|
|
|
614,030 |
|
|
|
620,262 |
|
|
|
595,434 |
|
|
|
620,262 |
|
Tangible assets |
$ |
10,034,343 |
|
|
$ |
10,122,030 |
|
|
$ |
10,121,391 |
|
|
$ |
10,033,109 |
|
|
$ |
10,045,198 |
|
|
$ |
10,034,343 |
|
|
$ |
10,045,198 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Tangible equity to tangible assets |
|
10.27 |
% |
|
|
9.53 |
% |
|
|
9.12 |
% |
|
|
9.04 |
% |
|
|
8.37 |
% |
|
|
10.27 |
% |
|
|
8.37 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net interest income (tax equivalent) |
$ |
101,578 |
|
|
$ |
101,482 |
|
|
$ |
102,207 |
|
|
$ |
106,121 |
|
|
$ |
106,919 |
|
|
$ |
305,266 |
|
|
$ |
331,549 |
|
Less: Purchase accounting accretion |
|
6,795 |
|
|
|
10,098 |
|
|
|
8,551 |
|
|
|
11,726 |
|
|
|
12,400 |
|
|
|
25,444 |
|
|
|
35,076 |
|
Adjusted net interest income (tax equivalent) |
$ |
94,783 |
|
|
$ |
91,384 |
|
|
$ |
93,656 |
|
|
$ |
94,395 |
|
|
$ |
94,519 |
|
|
$ |
279,822 |
|
|
$ |
296,473 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Average earning assets |
$ |
9,643,629 |
|
|
$ |
9,616,874 |
|
|
$ |
9,645,544 |
|
|
$ |
9,576,927 |
|
|
$ |
9,697,553 |
|
|
$ |
9,635,379 |
|
|
$ |
9,735,194 |
|
Net interest margin (tax equivalent) excluding PAA |
|
3.91 |
% |
|
|
3.82 |
% |
|
|
3.91 |
% |
|
|
3.91 |
% |
|
|
3.87 |
% |
|
|
3.88 |
% |
|
|
4.07 |
% |
(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/20241025254169/en/
Investor Relations
IR@stellar.bank
Source: Stellar Bancorp, Inc.
FAQ
What was Stellar Bancorp's (STEL) earnings per share in Q3 2024?
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What was Stellar Bancorp's (STEL) net interest margin in Q3 2024?