Stellar Bancorp Inc. ( (STEL) ) has released its Q2 earnings. Here is a breakdown of the information Stellar Bancorp Inc. presented to its investors.
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Stellar Bancorp, Inc. is a bank holding company based in Houston, Texas, primarily offering commercial banking services to small- and medium-sized businesses and individual customers in Texas, including Houston, Dallas, and Beaumont.
In its second quarter of 2025 earnings report, Stellar Bancorp, Inc. announced a net income of $26.4 million, or $0.51 per diluted share, marking an increase from the first quarter’s net income of $24.7 million. The company highlighted its efforts in loan originations and its anticipation of continued growth in loans and deposits throughout the year.
Key financial metrics for the second quarter included a solid profitability with an annualized return on average assets of 1.01% and a return on average equity of 6.62%. The company’s net interest margin slightly decreased to 4.18%, while its capital position remained strong with a total risk-based capital ratio of 15.98%. Stellar also repurchased 791,000 shares at an average price of $26.08 per share.
Stellar’s financial condition showed an increase in total assets to $10.49 billion, driven by growth in core deposits. Total loans and deposits also saw modest increases, while the company’s asset quality remained stable with low net charge-offs and a slight decrease in nonperforming assets.
Looking ahead, Stellar Bancorp’s management remains optimistic about the company’s growth prospects, supported by favorable economic conditions in Texas and strategic efforts to expand market share. The company is well-positioned to capitalize on opportunities in the vibrant Texas markets it serves.