📈 Price History

Ratio Health

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— Good

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By Category

📊 Sector Averages

About

Stellar Bancorp, Inc. operates as the bank holding company that provides a range of commercial banking products and services primarily to small and medium-sized businesses, professionals, and individual customers. It provides deposit products that include checking accounts, commercial accounts, money market accounts, savings accounts, and other time deposits, as well as convenient services, such as telephone, mobile, and online banking. The company also offers commercial and industrial loans; commercial real estate loans comprising multi-family residential loans; commercial real estate construction and land development loans; residential real estate loans comprising 1-4 family residential mortgage loans, including home equity and home improvement loans, and home equity lines of credit; commercial and retail lending services, such as loans to small businesses, mortgage loans, personal loans, and automobile loans; and factoring services. In addition, it provides safe deposit boxes, debit cards, cash management and wire transfer services, night depository services, direct deposits, cashier’s checks, and letters of credit. Stellar Bancorp, Inc. was founded in 2007 and is headquartered in Houston, Texas.

Key Ratios Snapshot

📈 Growth Pattern

⚡ Latest Quarter —

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📊 Quick Scorecard

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⭐ Superinvestors Holding STEL

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Manager	Shares	Value	% of Fund	Period
Jim Simons Renaissance Technologies LLC	150.0K	$5.5M	0.01%	Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

🔍 Concall Decoded

🎙 Management Tone Tracker Confident Specific → Stable 4 quarters analysed

Q4 2024

Confident Specific

Management uses positive language like 'we look ahead with optimism' and gives specific guidance on expenses ($295M) and loan growth (mid-single-digit). CFO cites exact margin improvements and capital ratio increases, showing conviction.

Q1 2025

Mixed

Management alternated between cautious language ('we will proceed cautiously', 'too early to see signs of impact') and confident statements about strong capital position and ability to return to growth, with CEO stating 'our team keeps us optimistic' and CFO saying 'we are well-positioned'.

Q2 2025

Confident Specific

Management expresses clear confidence with phrases like 'great work', 'healthy pipeline', 'great opportunities', and provides specific metrics (originations doubled, net income $26.4M, NIM 4.18%). They acknowledge challenges (funding cost pressure) but frame them as manageable, and give concrete growth targets for H2 2025.

Q3 2025 latest

Confident Specific

Management expressed confidence in balance sheet and margin improvement, citing specific achievements like NIM ex-PAA reaching 4%, while acknowledging charge-offs and payoffs as already provisioned or expected. They used concrete numbers and did not evade the negative points.

Guidance Reliability Pending · <3Q data

Investor Lens

The investment thesis appears slightly stronger after this call. Management demonstrated that net interest margin can expand even without robust loan growth, and deposit gathering remains effective. The credit story was handled candidly—charge-offs were pre-identified and small. The main concern is the continued elevated payoff run rate, which suppresses net loan growth despite strong originations. The shift to 4% core NIM provides a higher earnings base, but expense discipline and conversion of the pipeline into funded loans are key to sustaining momentum. Next quarter, watch for loan growth materialization and whether net charge-offs remain contained. The buyback cadence and any M&A announcements will also signal capital deployment confidence.

AI-generated concall tone analysis · Updated 2026-06-09 · Not investment advice

🎙 Management Tone Confident Specific → Stable 4 quarters Full tone analysis in Intelligence →

📊 MIXED Net income $25.7M, NIM 4.2%, deposit growth drives balance sheet expansion.

Revenue & Profitability

Q3 2025 net income was $25.7 million, or $0.50 per diluted share, compared to $26.4 million ($0.51) in Q2. Net interest income rose to $100.6 million from $98.3 million, with net interest margin of 4.2% (4.18% prior quarter). Excluding purchase accounting accretion, NIM was 4.0%. Provision for loan losses was $305,000, net charge-offs $3.3 million. Non-interest expense was $73.1 million, up from $70 million. Total risk-based capital was 16.33%.

Outlook

Management views markets as stable and supportive, with Texas markets absorbing macroeconomic headwinds like tariffs well. They note industry credit quality headlines but feel comfortable with their reserve levels. The M&A disruption in Texas is seen as creating opportunities for market share gains. The company expects to remain disciplined on pricing and credit, even if it means slower growth.

Growth Drivers

Loan originations year-to-date are up 62% compared to the first three quarters of the prior year, with a healthy pipeline. The bank is gaining new customers (51% of new deposits from new customers). Deposit growth is strong, with a focus on low-cost deposits. Management expects to pivot to net loan growth as advances exceed paydowns, potentially in the coming quarters, and into 2026.

Balance Sheet & CapEx

Not discussed in this earnings call.

Margins

Net interest margin improved to 4.2% (4.18% prior quarter), and excluding purchase accounting, it reached 4.0% (from 3.95%). Management feels good about defending and potentially improving the margin through relationship banking. Expenses in Q3 were an outlier due to severance and elevated medical insurance; Q4 expenses are expected to be closer to the first-half run rate (~$70 million). The company is in optimization mode to hold the line on expenses.

Key Risks

Risks flagged include elevated loan payoffs ($330 million in Q3, above the run rate of ~$300 million), competitive pressures on pricing and credit structure, and industry-wide credit quality concerns. Management notes they experienced $3.3 million in net charge-offs over 10 relationships, most previously identified and reserved. They have little exposure to non-originated credits and feel comfortable with their reserve level.

Generated by AI · Q3 2025 results · Not investment advice

✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter

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📞 Earnings Call Transcripts (5)

Q3 2025 Q3 2025 2025-10-24

Net interest income and margin improved in Q3 2025, supported by strong deposit growth and disciplined relationship banking. Credit quality remains stable, expenses were elevated due to one-time items, and capital ratios strengthened.

Q2 2025 Q2 2025 2025-07-25

Net income rose to $26.4M in Q2 2025, with strong loan originations and deposit growth. Margins remained healthy despite slight compression, and disciplined expense management enabled opportunistic investments. Tangible book value per share increased 10.8% year-over-year.

Q1 2025 Q1 2025 2025-04-25

Q1 2025 net income was $24.7M with strong capital and improved expense control. Loan pipelines and new account growth are robust, but growth is expected to accelerate in the second half of 2025 amid ongoing economic uncertainty.

Q4 2024 Q4 2024 2025-01-31

Q4 2024 net income reached $27.8M, with strong capital ratios and a 36% increase in tangible book value per share since 2022. Management expects mid-single-digit loan growth, positive operating leverage, and stable credit quality in 2025.

Q3 2024 Q3 2024 2024-10-25

Reported Q3 net income of $33.9M with improved ROAA and ROATCE, driven by a $6M provision reversal and strong capital growth. Loan originations rose, but net loans declined due to payoffs and cautious C&D lending. NIM remains strong, with disciplined deposit costs and robust Texas market conditions.

📊 Analysis Methodology

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