Stellar Bancorp Reports Steady Q1 2025 Earnings

Stellar Bancorp Inc. ( (STEL) ) has released its Q1 earnings. Here is a breakdown of the information Stellar Bancorp Inc. presented to its investors.

Stellar Bancorp, Inc., a bank holding company based in Houston, Texas, provides a wide range of commercial banking services primarily to small- and medium-sized businesses and individual customers across several Texan communities.

In its first quarter of 2025 earnings report, Stellar Bancorp announced a net income of $24.7 million, or $0.46 per diluted share, showing a slight decrease from the previous quarter. The company highlighted its strategic focus on growth and managing credit cautiously amid market uncertainties.

Key financial metrics revealed a solid profitability with an annualized return on average assets of 0.94% and a return on average equity of 6.21%. The net interest margin stood at 4.20%, slightly down from the previous quarter. Stellar’s capital position remained robust, with a total risk-based capital ratio of 15.94%. The company also repurchased 1.4 million shares and announced a new share repurchase program.

Despite a decrease in total assets and deposits, primarily due to seasonal factors, Stellar Bancorp maintained strong asset quality. Nonperforming assets increased to $59.7 million, representing 0.57% of total assets, while the allowance for credit losses on loans rose to 1.15%.

Looking ahead, Stellar Bancorp’s management anticipates growth in the latter half of the year, driven by stabilizing interest rates and strategic initiatives. The company remains committed to expanding its market presence while navigating economic uncertainties with caution.