Stellar Bancorp, Inc. (the “Company” or “Stellar”) (NASDAQ: STEL)
today reported net income of $37.1 million and diluted earnings per
share of $0.70 for the first quarter 2023 as compared to net income
of $2.1 million and diluted earnings per share of $0.04 for the
fourth quarter 2022. The results for the first quarter of 2023 and
the fourth quarter of 2022 for Stellar reflect significant
nonrecurring items related to the merger of equals (the “Merger”)
between Allegiance Bancshares, Inc. (“Allegiance”) and CBTX, Inc.
(“CBTX”), which became effective on October 1, 2022.
“We are pleased to present our results to start the year in what
was a tumultuous quarter for the banking industry. We believe the
resilience of our local and relationship-driven business model,
combined with Stellar’s ongoing focus on capital, liquidity and
credit, positions us well to manage through the challenges of the
current environment and drive long-term value to our shareholders,”
said Robert R. Franklin, Jr., Stellar’s Chief Executive
Officer.
“During the first quarter we completed a number of strategic
initiatives, including the conversion of technology systems in
February and launching the Stellar Bank brand. We are so grateful
for our team’s efforts and their shared commitment to serving our
customers and supporting the communities where we live and work,”
continued Mr. Franklin.
“Stellar is ready for the challenges and opportunities that lie
ahead. Although the economy in our markets remain strong, we remain
vigilant to changes impacting the economy and financing conditions.
We are focused on maintaining strong credit, liquidity and capital
while providing outstanding service to the markets that we serve.
Our balance sheet is strong, and as the largest, locally-focused
community bank in one of the best markets in the country, the
long-term future is bright for Stellar,” concluded Mr.
Franklin.
First Quarter 2023 Financial Highlights
- First quarter 2023 net income of $37.1 million and diluted
earnings per share of $0.70 translated into an annualized return on
average assets of 1.38% and an annualized return on average
tangible equity of 19.32%(1).
- Pre-tax, pre-provision income for the first quarter 2023 was
$50.7 million(1), representing an annualized pre-tax, pre-provision
return on average assets of 1.89%(1) and an adjusted pre-tax,
pre-provision income of $53.5 million(1), representing an
annualized adjusted pre-tax, pre-provision return on average assets
of 1.99%(1).
- Tax equivalent net interest margin was 4.80% for the first
quarter of 2023 as compared to 4.71% in the fourth quarter of 2022.
The tax equivalent net interest margin, excluding purchase
accounting accretion, was 4.38%(1) for the first quarter of 2023
and the fourth quarter of 2022.
- Book value per share was $27.14 for the first quarter 2023
compared to $26.12 for the fourth quarter 2022. Tangible book value
per share increased to $15.24(1) for the first quarter 2023 from
$14.02(1) for the fourth quarter 2022. Equity to assets and
tangible equity to tangible assets increased to 13.64% and 8.15%(1)
for the first quarter 2023 from 12.69% and 7.24%(1) for the fourth
quarter 2022, respectively.
(1) Refer to page 9 for the calculation of this non-GAAP
financial measure.
Merger of Equals
The Merger was accounted for as a reverse acquisition using the
acquisition method of accounting, with CBTX treated as the legal
acquirer and Allegiance treated as the accounting acquirer for
financial reporting purposes. Therefore, the historical financial
statements of the Company prior to the Merger reflect the
historical financial statement balances of Allegiance. In addition,
the assets and liabilities of CBTX as of the date of the Merger
were recorded at estimated fair value and added to those of
Allegiance. The Company’s valuations of CBTX's assets and
liabilities are preliminary and may be refined for up to a year
from the date of the Merger. The Merger had a significant impact on
all aspects of the Company's financial statements, and as a result,
financial results after the Merger are not comparable to financial
results prior to the Merger. Results of operations reflect the
combined operations following the Merger for the first quarter of
2023 and the fourth quarter 2022 and stand-alone Allegiance for all
periods prior.
First Quarter 2023
Results
Stellar’s net interest income in the first quarter 2023
increased $213 thousand, or 0.2%, from $115.6 million for
the fourth quarter 2022. The net interest margin on a tax
equivalent basis increased 9 basis points to 4.80% for the first
quarter 2023 from 4.71% for the fourth quarter 2022. The increase
in the margin over the prior quarter was primarily due to higher
purchase accounting adjustments (“PAA”) relating to the Merger and
increases in interest rates. Net interest income for the first
quarter of 2023 benefited from $10.1 million of income from
purchase accounting adjustments compared to $8.2 million in the
fourth quarter of 2022. Excluding purchase accounting adjustments,
a non-GAAP measure on page 9, net interest income for the first
quarter 2023 would have been $105.7 million and the tax equivalent
net interest margin would have been 4.38%.
Noninterest income for the first quarter 2023 was
$7.5 million, a decrease of $3.1 million, or 29.5%,
compared to $10.6 million for the fourth quarter 2022.
Noninterest income decreased in the first quarter of 2023 compared
to the fourth quarter of 2022 primarily due to nonrecurring gains
and losses on the sale of assets totaling $4.0 million recorded in
the fourth quarter of 2022.
Noninterest expense for the first quarter 2023 decreased
$7.0 million, or 8.8%, to $72.6 million compared to $79.6
million for the fourth quarter of 2022. The decrease in noninterest
expense in the first quarter of 2023 compared to the fourth quarter
of 2022 was primarily due to a decrease in acquisition and
merger-related expenses which totaled $6.2 million for the first
quarter of 2023 compared to $11.5 million in the fourth quarter of
2022.
Stellar’s efficiency ratio decreased to 58.96% for the first
quarter 2023 from 65.14% for the fourth quarter 2022. First quarter
2023 annualized returns on average assets, average equity and
average tangible equity were 1.38%, 10.62% and 19.32%,
respectively, compared to 0.07%, 0.60% and 1.16%, respectively, for
the fourth quarter 2022. Return on average tangible equity is a
non-GAAP measure. Please refer to the non-GAAP reconciliation on
page 9.
Financial Condition
Total loans at March 31, 2023 increased $131.3 million
to $7.89 billion compared to $7.75 billion at December 31,
2022. At March 31, 2023, the remaining balance of the purchase
accounting adjustments on loans was $144.0 million. Core loans,
which exclude Paycheck Protection Program (PPP) loans, increased
$133.4 million to $7.87 billion at March 31, 2023 from
$7.74 billion at December 31, 2022.
Total deposits at March 31, 2023 decreased
$528.8 million to $8.74 billion compared to $9.27 billion
at December 31, 2022. The linked quarter change was primarily
driven by seasonality, industry-wide pressures and the maintenance
of pricing discipline in an intensely competitive market for
deposits. Estimated uninsured deposits, excluding collateralized
deposits, totaled $4.06 billion, or 46.4% of total deposits as of
March 31, 2023.
Total assets at March 31, 2023 were $10.60 billion, a
decrease of $295.7 million, compared to $10.90 billion at
December 31, 2022.
Asset Quality
Nonperforming assets totaled $43.5 million, or 0.41% of
total assets, at March 31, 2023 compared to
$45.0 million, or 0.41% of total assets, at December 31, 2022.
The allowance for credit losses on loans as a percentage of total
loans was 1.22% at March 31, 2023 and 1.20% at December 31,
2022.
The provision for credit losses for the first quarter 2023 was
$3.7 million compared to $44.8 million for the fourth
quarter 2022. The fourth quarter 2022 provision included a $28.2
million provision for credit losses on loans and a $5.0 million
provision for unfunded commitments related to the Merger, along
with a $7.6 million allowance for credit losses on purchased credit
deteriorated loans acquired. First quarter 2023 net charge-offs
were $192 thousand, or 0.01% (annualized) of average loans,
compared to net charge-offs of $5.7 million, or 0.30%
(annualized) of average loans, for the fourth quarter 2022. Fourth
quarter net charge-offs included $4.6 million of charge-offs on
loans sold during the fourth quarter 2022.
GAAP Reconciliation of Non-GAAP Financial
Measures
Stellar’s management uses certain non-GAAP financial measures.
Please refer to the GAAP Reconciliation and Management’s
Explanation of Non-GAAP Financial Measures on page 9 of this
earnings release for a reconciliation of these non-GAAP financial
measures.
Conference Call
As previously announced, Stellar’s management team will host a
conference call and webcast on Friday, April 28, 2023 at 8:00
a.m. Central Time (9:00 a.m. Eastern Time) to discuss first quarter
2023 results. Individuals and investment professionals may register
for the conference call at
https://register.vevent.com/register/BId04d2f9fb05141c3b5efe6b285a38874
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@stellarbancorpinc.com. A simultaneous audio-only webcast
may be accessed via the Investor Relations section of Stellar’s
website at
https://ir.stellarbancorpinc.com/news-and-events/webcast-and-presentations.
If you are unable to participate during the live webcast, the
webcast will be accessible via the Investor Relations section of
Stellar’s website at ir.stellarbancorpinc.com.
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.
Investor relationsIR@stellarbancorpinc.com
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 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 our operations following the Merger 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) |
|
|
2023 |
|
2022 |
|
March 31 |
|
December 31 |
|
September 30 |
|
June 30 |
|
March 31 |
|
(Dollars in thousands) |
ASSETS |
|
|
|
|
|
|
|
|
|
Cash and due from banks |
$ |
99,231 |
|
|
$ |
67,063 |
|
|
$ |
16,449 |
|
|
$ |
17,547 |
|
|
$ |
26,629 |
|
Interest-bearing deposits at
other financial institutions |
|
164,102 |
|
|
|
304,642 |
|
|
|
102,118 |
|
|
|
275,290 |
|
|
|
672,755 |
|
Total cash and cash equivalents |
|
263,333 |
|
|
|
371,705 |
|
|
|
118,567 |
|
|
|
292,837 |
|
|
|
699,384 |
|
Available for sale securities, at
fair value |
|
1,519,175 |
|
|
|
1,807,586 |
|
|
|
1,618,995 |
|
|
|
1,709,321 |
|
|
|
1,790,707 |
|
Loans held for investment |
|
7,886,044 |
|
|
|
7,754,751 |
|
|
|
4,591,912 |
|
|
|
4,348,833 |
|
|
|
4,283,514 |
|
Less: allowance for credit losses
on loans |
|
(96,188 |
) |
|
|
(93,180 |
) |
|
|
(52,147 |
) |
|
|
(50,242 |
) |
|
|
(49,215 |
) |
Loans, net |
|
7,789,856 |
|
|
|
7,661,571 |
|
|
|
4,539,765 |
|
|
|
4,298,591 |
|
|
|
4,234,299 |
|
Accrued interest
receivable |
|
42,405 |
|
|
|
44,743 |
|
|
|
29,697 |
|
|
|
29,882 |
|
|
|
31,505 |
|
Premises and equipment,
net |
|
124,723 |
|
|
|
126,803 |
|
|
|
57,837 |
|
|
|
58,482 |
|
|
|
62,168 |
|
Federal Home Loan Bank
stock |
|
19,676 |
|
|
|
15,058 |
|
|
|
16,843 |
|
|
|
4,078 |
|
|
|
9,376 |
|
Bank owned life insurance |
|
103,616 |
|
|
|
103,094 |
|
|
|
28,305 |
|
|
|
28,170 |
|
|
|
28,374 |
|
Goodwill |
|
497,260 |
|
|
|
497,260 |
|
|
|
223,642 |
|
|
|
223,642 |
|
|
|
223,642 |
|
Core deposit intangibles,
net |
|
136,665 |
|
|
|
143,525 |
|
|
|
12,406 |
|
|
|
13,156 |
|
|
|
13,907 |
|
Other assets |
|
108,009 |
|
|
|
129,092 |
|
|
|
84,285 |
|
|
|
73,605 |
|
|
|
56,001 |
|
Total assets |
$ |
10,604,718 |
|
|
$ |
10,900,437 |
|
|
$ |
6,730,342 |
|
|
$ |
6,731,764 |
|
|
$ |
7,149,363 |
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’
EQUITY |
|
|
|
|
|
|
|
|
|
LIABILITIES: |
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
Noninterest-bearing |
$ |
3,877,859 |
|
|
$ |
4,230,169 |
|
|
$ |
2,465,839 |
|
|
$ |
2,394,719 |
|
|
$ |
2,353,604 |
|
Interest-bearing |
|
|
|
|
|
|
|
|
|
Demand |
|
1,394,244 |
|
|
|
1,591,828 |
|
|
|
956,920 |
|
|
|
1,016,381 |
|
|
|
1,070,855 |
|
Money market and savings |
|
2,401,840 |
|
|
|
2,575,923 |
|
|
|
1,471,690 |
|
|
|
1,510,008 |
|
|
|
1,552,853 |
|
Certificates and other time |
|
1,064,932 |
|
|
|
869,712 |
|
|
|
766,270 |
|
|
|
959,524 |
|
|
|
1,185,015 |
|
Total interest-bearing deposits |
|
4,861,016 |
|
|
|
5,037,463 |
|
|
|
3,194,880 |
|
|
|
3,485,913 |
|
|
|
3,808,723 |
|
Total deposits |
|
8,738,875 |
|
|
|
9,267,632 |
|
|
|
5,660,719 |
|
|
|
5,880,632 |
|
|
|
6,162,327 |
|
Accrued interest payable |
|
3,875 |
|
|
|
2,098 |
|
|
|
2,673 |
|
|
|
1,500 |
|
|
|
3,086 |
|
Borrowed funds |
|
238,944 |
|
|
|
63,925 |
|
|
|
257,000 |
|
|
|
— |
|
|
|
89,959 |
|
Subordinated debt |
|
109,420 |
|
|
|
109,367 |
|
|
|
109,241 |
|
|
|
109,109 |
|
|
|
108,978 |
|
Other liabilities |
|
67,388 |
|
|
|
74,239 |
|
|
|
44,407 |
|
|
|
35,194 |
|
|
|
33,073 |
|
Total liabilities |
|
9,158,502 |
|
|
|
9,517,261 |
|
|
|
6,074,040 |
|
|
|
6,026,435 |
|
|
|
6,397,423 |
|
SHAREHOLDERS’ EQUITY: |
|
|
|
|
|
|
|
|
|
Common stock |
|
533 |
|
|
|
530 |
|
|
|
281 |
|
|
|
286 |
|
|
|
290 |
|
Capital surplus |
|
1,225,596 |
|
|
|
1,222,761 |
|
|
|
511,434 |
|
|
|
524,033 |
|
|
|
532,372 |
|
Retained earnings |
|
333,368 |
|
|
|
303,146 |
|
|
|
307,975 |
|
|
|
296,477 |
|
|
|
282,896 |
|
Accumulated other
comprehensive loss |
|
(113,281 |
) |
|
|
(143,261 |
) |
|
|
(163,388 |
) |
|
|
(115,467 |
) |
|
|
(63,618 |
) |
Total shareholders’ equity |
|
1,446,216 |
|
|
|
1,383,176 |
|
|
|
656,302 |
|
|
|
705,329 |
|
|
|
751,940 |
|
TOTAL LIABILITIES AND
SHAREHOLDERS’ EQUITY |
$ |
10,604,718 |
|
|
$ |
10,900,437 |
|
|
$ |
6,730,342 |
|
|
$ |
6,731,764 |
|
|
$ |
7,149,363 |
|
Stellar Bancorp, Inc. |
Financial Highlights |
(Unaudited) |
|
|
Three Months Ended |
|
2023 |
|
2022 |
|
March 31 |
|
December 31 |
|
September 30 |
|
June 30 |
|
March 31 |
|
(Dollars in thousands, except per share data) |
INTEREST INCOME: |
|
|
|
|
|
|
|
|
|
Loans, including fees |
$ |
125,729 |
|
$ |
116,145 |
|
|
$ |
58,025 |
|
$ |
53,835 |
|
|
$ |
52,370 |
Securities: |
|
|
|
|
|
|
|
|
|
Taxable |
|
9,653 |
|
|
9,834 |
|
|
|
6,655 |
|
|
5,571 |
|
|
|
5,068 |
Tax-exempt |
|
1,262 |
|
|
3,057 |
|
|
|
2,594 |
|
|
2,557 |
|
|
|
2,525 |
Deposits in other financial institutions |
|
3,771 |
|
|
2,933 |
|
|
|
608 |
|
|
877 |
|
|
|
340 |
Total interest income |
|
140,415 |
|
|
131,969 |
|
|
|
67,882 |
|
|
62,840 |
|
|
|
60,303 |
|
|
|
|
|
|
|
|
|
|
INTEREST EXPENSE: |
|
|
|
|
|
|
|
|
|
Demand, money market and savings deposits |
|
18,037 |
|
|
12,406 |
|
|
|
3,527 |
|
|
1,859 |
|
|
|
1,347 |
Certificates and other time deposits |
|
3,307 |
|
|
2,083 |
|
|
|
1,664 |
|
|
1,922 |
|
|
|
2,156 |
Borrowed funds |
|
1,317 |
|
|
417 |
|
|
|
499 |
|
|
114 |
|
|
|
186 |
Subordinated debt |
|
1,927 |
|
|
1,449 |
|
|
|
1,502 |
|
|
1,463 |
|
|
|
1,442 |
Total interest expense |
|
24,588 |
|
|
16,355 |
|
|
|
7,192 |
|
|
5,358 |
|
|
|
5,131 |
NET INTEREST INCOME |
|
115,827 |
|
|
115,614 |
|
|
|
60,690 |
|
|
57,482 |
|
|
|
55,172 |
Provision for
credit losses |
|
3,666 |
|
|
44,793 |
|
|
|
1,962 |
|
|
2,143 |
|
|
|
1,814 |
Net interest
income after provision for credit losses |
|
112,161 |
|
|
70,821 |
|
|
|
58,728 |
|
|
55,339 |
|
|
|
53,358 |
|
|
|
|
|
|
|
|
|
|
NONINTEREST INCOME: |
|
|
|
|
|
|
|
|
|
Nonsufficient funds fees |
|
406 |
|
|
447 |
|
|
|
145 |
|
|
126 |
|
|
|
116 |
Service charges on deposit accounts |
|
943 |
|
|
1,242 |
|
|
|
527 |
|
|
560 |
|
|
|
527 |
Gain (loss) on sale of assets |
|
198 |
|
|
4,025 |
|
|
|
42 |
|
|
(17 |
) |
|
|
— |
Bank owned life insurance |
|
522 |
|
|
515 |
|
|
|
135 |
|
|
342 |
|
|
|
133 |
Debit card and ATM card income |
|
1,698 |
|
|
1,897 |
|
|
|
869 |
|
|
880 |
|
|
|
819 |
Other |
|
3,731 |
|
|
2,511 |
|
|
|
1,277 |
|
|
813 |
|
|
|
2,423 |
Total noninterest income |
|
7,498 |
|
|
10,637 |
|
|
|
2,995 |
|
|
2,704 |
|
|
|
4,018 |
|
|
|
|
|
|
|
|
|
|
NONINTEREST EXPENSE: |
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
39,775 |
|
|
40,949 |
|
|
|
22,013 |
|
|
21,864 |
|
|
|
22,728 |
Net occupancy and equipment |
|
4,088 |
|
|
3,781 |
|
|
|
2,129 |
|
|
2,220 |
|
|
|
2,205 |
Depreciation |
|
1,836 |
|
|
1,903 |
|
|
|
1,003 |
|
|
1,012 |
|
|
|
1,033 |
Data processing and software amortization |
|
5,054 |
|
|
3,776 |
|
|
|
2,541 |
|
|
2,522 |
|
|
|
2,498 |
Professional fees |
|
1,527 |
|
|
2,298 |
|
|
|
485 |
|
|
662 |
|
|
|
138 |
Regulatory assessments and FDIC insurance |
|
1,294 |
|
|
1,263 |
|
|
|
1,134 |
|
|
1,256 |
|
|
|
1,261 |
Amortization of intangibles |
|
6,879 |
|
|
7,051 |
|
|
|
750 |
|
|
751 |
|
|
|
751 |
Communications |
|
701 |
|
|
737 |
|
|
|
359 |
|
|
363 |
|
|
|
341 |
Advertising |
|
839 |
|
|
1,130 |
|
|
|
385 |
|
|
483 |
|
|
|
462 |
Other real estate expense |
|
272 |
|
|
152 |
|
|
|
93 |
|
|
65 |
|
|
|
59 |
Acquisition and merger-related expenses |
|
6,165 |
|
|
11,469 |
|
|
|
10,551 |
|
|
1,667 |
|
|
|
451 |
Other |
|
4,168 |
|
|
5,115 |
|
|
|
2,588 |
|
|
5,039 |
|
|
|
2,590 |
Total noninterest expense |
|
72,598 |
|
|
79,624 |
|
|
|
44,031 |
|
|
37,904 |
|
|
|
34,517 |
INCOME BEFORE INCOME TAXES |
|
47,061 |
|
|
1,834 |
|
|
|
17,692 |
|
|
20,139 |
|
|
|
22,859 |
Provision for income taxes |
|
9,913 |
|
|
(218 |
) |
|
|
3,406 |
|
|
3,702 |
|
|
|
4,202 |
NET INCOME |
$ |
37,148 |
|
$ |
2,052 |
|
|
$ |
14,286 |
|
$ |
16,437 |
|
|
$ |
18,657 |
|
|
|
|
|
|
|
|
|
|
EARNINGS PER SHARE |
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.70 |
|
$ |
0.04 |
|
|
$ |
0.51 |
|
$ |
0.57 |
|
|
$ |
0.65 |
Diluted |
$ |
0.70 |
|
$ |
0.04 |
|
|
$ |
0.50 |
|
$ |
0.56 |
|
|
$ |
0.64 |
Stellar Bancorp, Inc. |
Financial Highlights |
(Unaudited) |
|
|
Three Months Ended |
|
2023 |
|
2022 |
|
March 31 |
|
December 31 |
|
September 30 |
|
June 30 |
|
March 31 |
|
(Dollars and share amounts in thousands, except per share
data) |
Net income |
$ |
37,148 |
|
|
$ |
2,052 |
|
|
$ |
14,286 |
|
|
$ |
16,437 |
|
|
$ |
18,657 |
|
|
|
|
|
|
|
|
|
|
|
Earnings per share, basic |
$ |
0.70 |
|
|
$ |
0.04 |
|
|
$ |
0.51 |
|
|
$ |
0.57 |
|
|
$ |
0.65 |
|
Earnings per share,
diluted |
$ |
0.70 |
|
|
$ |
0.04 |
|
|
$ |
0.50 |
|
|
$ |
0.56 |
|
|
$ |
0.64 |
|
Dividends per share |
$ |
0.13 |
|
|
$ |
0.13 |
|
|
$ |
0.10 |
|
|
$ |
0.10 |
|
|
$ |
0.10 |
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets(A) |
|
1.38 |
% |
|
|
0.07 |
% |
|
|
0.84 |
% |
|
|
0.94 |
% |
|
|
1.04 |
% |
Return on average
equity(A) |
|
10.62 |
% |
|
|
0.60 |
% |
|
|
7.90 |
% |
|
|
8.86 |
% |
|
|
9.40 |
% |
Return on average tangible
equity(A)(B) |
|
19.32 |
% |
|
|
1.16 |
% |
|
|
11.78 |
% |
|
|
13.00 |
% |
|
|
13.35 |
% |
Net interest margin (tax
equivalent)(A)(C) |
|
4.80 |
% |
|
|
4.71 |
% |
|
|
3.85 |
% |
|
|
3.53 |
% |
|
|
3.30 |
% |
Net interest margin (tax
equivalent) excluding PAA(A)(B)(C) |
|
4.38 |
% |
|
|
4.38 |
% |
|
|
3.85 |
% |
|
|
3.52 |
% |
|
|
3.29 |
% |
Efficiency ratio(D) |
|
58.96 |
% |
|
|
65.14 |
% |
|
|
69.18 |
% |
|
|
62.96 |
% |
|
|
58.32 |
% |
|
|
|
|
|
|
|
|
|
|
Capital
Ratios |
|
|
|
|
|
|
|
|
|
Stellar Bancorp, Inc.
(consolidated) |
|
|
|
|
|
|
|
|
|
Equity to assets |
|
13.64 |
% |
|
|
12.69 |
% |
|
|
9.75 |
% |
|
|
10.48 |
% |
|
|
10.52 |
% |
Tangible equity to tangible assets(B) |
|
8.15 |
% |
|
|
7.24 |
% |
|
|
6.47 |
% |
|
|
7.21 |
% |
|
|
7.44 |
% |
Estimated Common equity tier 1 capital |
|
10.39 |
% |
|
|
10.04 |
% |
|
|
11.39 |
% |
|
|
12.06 |
% |
|
|
12.28 |
% |
Estimated Tier 1 risk-based capital |
|
10.50 |
% |
|
|
10.15 |
% |
|
|
11.58 |
% |
|
|
12.26 |
% |
|
|
12.49 |
% |
Estimated Total risk-based capital |
|
12.72 |
% |
|
|
12.39 |
% |
|
|
14.66 |
% |
|
|
15.47 |
% |
|
|
15.76 |
% |
Estimated Tier 1 leverage capital |
|
9.01 |
% |
|
|
8.55 |
% |
|
|
9.00 |
% |
|
|
8.65 |
% |
|
|
8.37 |
% |
Stellar Bank |
|
|
|
|
|
|
|
|
|
Estimated Common equity tier 1 capital |
|
10.87 |
% |
|
|
10.46 |
% |
|
|
12.20 |
% |
|
|
12.51 |
% |
|
|
12.48 |
% |
Estimated Tier 1 risk-based capital |
|
10.87 |
% |
|
|
10.46 |
% |
|
|
12.20 |
% |
|
|
12.51 |
% |
|
|
12.48 |
% |
Estimated Total risk-based capital |
|
12.42 |
% |
|
|
12.02 |
% |
|
|
14.12 |
% |
|
|
14.50 |
% |
|
|
14.50 |
% |
Estimated Tier 1 leverage capital |
|
9.35 |
% |
|
|
8.81 |
% |
|
|
9.49 |
% |
|
|
8.83 |
% |
|
|
8.37 |
% |
|
|
|
|
|
|
|
|
|
|
Other
Data |
|
|
|
|
|
|
|
|
|
Weighted average shares: |
|
|
|
|
|
|
|
|
|
Basic |
|
53,021 |
|
|
|
52,715 |
|
|
|
28,286 |
|
|
|
28,874 |
|
|
|
28,883 |
|
Diluted |
|
53,138 |
|
|
|
52,973 |
|
|
|
28,529 |
|
|
|
29,120 |
|
|
|
29,114 |
|
Period end shares
outstanding |
|
53,296 |
|
|
|
52,955 |
|
|
|
28,137 |
|
|
|
28,586 |
|
|
|
28,904 |
|
Book value per share |
$ |
27.14 |
|
|
$ |
26.12 |
|
|
$ |
23.33 |
|
|
$ |
24.67 |
|
|
$ |
26.02 |
|
Tangible book value per
share(B) |
$ |
15.24 |
|
|
$ |
14.02 |
|
|
$ |
14.94 |
|
|
$ |
16.39 |
|
|
$ |
17.80 |
|
Employees - full-time
equivalents |
|
1,055 |
|
|
|
1,025 |
|
|
|
562 |
|
|
|
578 |
|
|
|
586 |
|
(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 9 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 |
|
March 31, 2023 |
|
December 31, 2022 |
|
March 31, 2022 |
|
AverageBalance |
|
Interest Earned/Interest
Paid |
|
Average Yield/Rate |
|
AverageBalance |
|
Interest Earned/Interest
Paid |
|
Average Yield/Rate |
|
Average Balance |
|
Interest Earned/Interest
Paid |
|
Average Yield/Rate |
|
(Dollars in thousands) |
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Earning Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
$ |
7,847,011 |
|
|
$ |
125,729 |
|
6.50 |
% |
|
$ |
7,666,502 |
|
|
$ |
116,145 |
|
6.01 |
% |
|
$ |
4,231,507 |
|
|
$ |
52,370 |
|
5.02 |
% |
Securities |
|
1,604,011 |
|
|
|
10,915 |
|
2.76 |
% |
|
|
1,795,082 |
|
|
|
12,891 |
|
2.85 |
% |
|
|
1,835,618 |
|
|
|
7,593 |
|
1.68 |
% |
Deposits in other financial
institutions |
|
364,781 |
|
|
|
3,771 |
|
4.19 |
% |
|
|
354,117 |
|
|
|
2,933 |
|
3.29 |
% |
|
|
806,583 |
|
|
|
340 |
|
0.17 |
% |
Total interest-earning assets |
|
9,815,803 |
|
|
$ |
140,415 |
|
5.80 |
% |
|
|
9,815,701 |
|
|
$ |
131,969 |
|
5.33 |
% |
|
|
6,873,708 |
|
|
$ |
60,303 |
|
3.56 |
% |
Allowance for credit losses on
loans |
|
(93,331 |
) |
|
|
|
|
|
|
(88,150 |
) |
|
|
|
|
|
|
(48,343 |
) |
|
|
|
|
Noninterest-earning assets |
|
1,160,061 |
|
|
|
|
|
|
|
1,218,458 |
|
|
|
|
|
|
|
432,133 |
|
|
|
|
|
Total assets |
$ |
10,882,533 |
|
|
|
|
|
|
$ |
10,946,009 |
|
|
|
|
|
|
$ |
7,257,498 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
and Shareholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Bearing
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
demand deposits |
$ |
1,650,273 |
|
|
$ |
8,382 |
|
2.06 |
% |
|
$ |
1,465,711 |
|
|
$ |
5,422 |
|
1.47 |
% |
|
$ |
1,071,010 |
|
|
$ |
549 |
|
0.21 |
% |
Money market and
savings deposits |
|
2,490,889 |
|
|
|
9,655 |
|
1.57 |
% |
|
|
2,705,984 |
|
|
|
6,984 |
|
1.02 |
% |
|
|
1,584,373 |
|
|
|
798 |
|
0.20 |
% |
Certificates and other
time deposits |
|
861,595 |
|
|
|
3,307 |
|
1.56 |
% |
|
|
932,058 |
|
|
|
2,083 |
|
0.89 |
% |
|
|
1,245,180 |
|
|
|
2,156 |
|
0.70 |
% |
Borrowed funds |
|
105,191 |
|
|
|
1,317 |
|
5.08 |
% |
|
|
37,824 |
|
|
|
417 |
|
4.37 |
% |
|
|
89,880 |
|
|
|
186 |
|
0.84 |
% |
Subordinated debt |
|
109,415 |
|
|
|
1,927 |
|
7.14 |
% |
|
|
109,307 |
|
|
|
1,449 |
|
5.26 |
% |
|
|
108,913 |
|
|
|
1,442 |
|
5.37 |
% |
Total interest-bearing liabilities |
|
5,217,363 |
|
|
$ |
24,588 |
|
1.91 |
% |
|
|
5,250,884 |
|
|
$ |
16,355 |
|
1.24 |
% |
|
|
4,099,356 |
|
|
$ |
5,131 |
|
0.51 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-Bearing Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
demand deposits |
|
4,166,265 |
|
|
|
|
|
|
|
4,199,982 |
|
|
|
|
|
|
|
2,312,114 |
|
|
|
|
|
Other liabilities |
|
80,823 |
|
|
|
|
|
|
|
147,205 |
|
|
|
|
|
|
|
41,324 |
|
|
|
|
|
Total liabilities |
|
9,464,451 |
|
|
|
|
|
|
|
9,598,071 |
|
|
|
|
|
|
|
6,452,794 |
|
|
|
|
|
Shareholders' equity |
|
1,418,082 |
|
|
|
|
|
|
|
1,347,938 |
|
|
|
|
|
|
|
804,704 |
|
|
|
|
|
Total liabilities and shareholders' equity |
$ |
10,882,533 |
|
|
|
|
|
|
$ |
10,946,009 |
|
|
|
|
|
|
$ |
7,257,498 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest rate spread |
|
|
|
|
3.89 |
% |
|
|
|
|
|
4.09 |
% |
|
|
|
|
|
3.05 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income and
margin |
|
|
$ |
115,827 |
|
4.79 |
% |
|
|
|
$ |
115,614 |
|
4.67 |
% |
|
|
|
$ |
55,172 |
|
3.26 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income and
net interest margin (tax equivalent) |
|
|
$ |
116,119 |
|
4.80 |
% |
|
|
|
$ |
116,574 |
|
4.71 |
% |
|
|
|
$ |
55,922 |
|
3.30 |
% |
Stellar Bancorp, Inc. |
Financial Highlights |
(Unaudited) |
|
|
Three Months Ended |
|
2023 |
|
2022 |
|
March 31 |
|
December 31 |
|
September 30 |
|
June 30 |
|
March 31 |
|
(Dollars in thousands) |
Period-end Loan
Portfolio: |
|
|
|
|
|
|
|
|
|
Commercial and industrial |
$ |
1,477,340 |
|
|
$ |
1,455,795 |
|
|
$ |
732,636 |
|
|
$ |
727,068 |
|
|
$ |
714,450 |
|
Paycheck Protection Program
(PPP) |
|
11,081 |
|
|
|
13,226 |
|
|
|
17,827 |
|
|
|
31,855 |
|
|
|
78,624 |
|
Real estate: |
|
|
|
|
|
|
|
|
|
Commercial real estate (including multi-family residential) |
|
4,014,609 |
|
|
|
3,931,480 |
|
|
|
2,407,039 |
|
|
|
2,265,155 |
|
|
|
2,197,502 |
|
Commercial real estate construction and land development |
|
1,034,538 |
|
|
|
1,037,678 |
|
|
|
513,248 |
|
|
|
450,694 |
|
|
|
453,473 |
|
1-4 family residential (including home equity) |
|
1,008,362 |
|
|
|
1,000,956 |
|
|
|
699,636 |
|
|
|
682,066 |
|
|
|
669,306 |
|
Residential construction |
|
292,143 |
|
|
|
268,150 |
|
|
|
183,563 |
|
|
|
155,017 |
|
|
|
136,760 |
|
Consumer and other |
|
47,971 |
|
|
|
47,466 |
|
|
|
37,963 |
|
|
|
36,978 |
|
|
|
33,399 |
|
Total loans held for investment |
$ |
7,886,044 |
|
|
$ |
7,754,751 |
|
|
$ |
4,591,912 |
|
|
$ |
4,348,833 |
|
|
$ |
4,283,514 |
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
Interest-bearing demand |
$ |
1,394,244 |
|
|
$ |
1,591,828 |
|
|
$ |
956,920 |
|
|
$ |
1,016,381 |
|
|
$ |
1,070,855 |
|
Money market and savings |
|
2,401,840 |
|
|
|
2,575,923 |
|
|
|
1,471,690 |
|
|
|
1,510,008 |
|
|
|
1,552,853 |
|
Certificates and other
time |
|
1,064,932 |
|
|
|
869,712 |
|
|
|
766,270 |
|
|
|
959,524 |
|
|
|
1,185,015 |
|
Total interest-bearing deposits |
|
4,861,016 |
|
|
|
5,037,463 |
|
|
|
3,194,880 |
|
|
|
3,485,913 |
|
|
|
3,808,723 |
|
Noninterest-bearing
deposits |
|
3,877,859 |
|
|
|
4,230,169 |
|
|
|
2,465,839 |
|
|
|
2,394,719 |
|
|
|
2,353,604 |
|
Total deposits |
$ |
8,738,875 |
|
|
$ |
9,267,632 |
|
|
$ |
5,660,719 |
|
|
$ |
5,880,632 |
|
|
$ |
6,162,327 |
|
|
|
|
|
|
|
|
|
|
|
Asset
Quality: |
|
|
|
|
|
|
|
|
|
Nonaccrual loans |
$ |
43,413 |
|
|
$ |
45,048 |
|
|
$ |
21,551 |
|
|
$ |
28,225 |
|
|
$ |
26,275 |
|
Accruing loans 90 or more days
past due |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total nonperforming loans |
|
43,413 |
|
|
|
45,048 |
|
|
|
21,551 |
|
|
|
28,225 |
|
|
|
26,275 |
|
Other repossessed assets |
|
124 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total nonperforming assets |
$ |
43,537 |
|
|
$ |
45,048 |
|
|
$ |
21,551 |
|
|
$ |
28,225 |
|
|
$ |
26,275 |
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs
(recoveries) |
$ |
192 |
|
|
$ |
5,707 |
|
|
$ |
(245 |
) |
|
$ |
571 |
|
|
$ |
317 |
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans: |
|
|
|
|
|
|
|
|
|
Commercial and industrial |
$ |
23,329 |
|
|
$ |
25,402 |
|
|
$ |
6,916 |
|
|
$ |
9,145 |
|
|
$ |
7,809 |
|
Real estate: |
|
|
|
|
|
|
|
|
|
Commercial real estate (including multi-family residential) |
|
9,026 |
|
|
|
9,970 |
|
|
|
10,392 |
|
|
|
14,409 |
|
|
|
15,259 |
|
Commercial real estate construction and land development |
|
27 |
|
|
|
— |
|
|
|
241 |
|
|
|
1,511 |
|
|
|
— |
|
1-4 family residential (including home equity) |
|
10,586 |
|
|
|
9,404 |
|
|
|
3,854 |
|
|
|
3,040 |
|
|
|
3,065 |
|
Residential construction |
|
195 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Consumer and other |
|
250 |
|
|
|
272 |
|
|
|
148 |
|
|
|
120 |
|
|
|
142 |
|
Total nonaccrual loans |
$ |
43,413 |
|
|
$ |
45,048 |
|
|
$ |
21,551 |
|
|
$ |
28,225 |
|
|
$ |
26,275 |
|
|
|
|
|
|
|
|
|
|
|
Asset Quality
Ratios: |
|
|
|
|
|
|
|
|
|
Nonperforming assets to total
assets |
|
0.41 |
% |
|
|
0.41 |
% |
|
|
0.32 |
% |
|
|
0.42 |
% |
|
|
0.37 |
% |
Nonperforming loans to total
loans |
|
0.55 |
% |
|
|
0.58 |
% |
|
|
0.47 |
% |
|
|
0.65 |
% |
|
|
0.61 |
% |
Allowance for credit losses on
loans to nonperforming loans |
|
221.56 |
% |
|
|
206.85 |
% |
|
|
241.97 |
% |
|
|
178.01 |
% |
|
|
187.31 |
% |
Allowance for credit losses on
loans to total loans |
|
1.22 |
% |
|
|
1.20 |
% |
|
|
1.14 |
% |
|
|
1.16 |
% |
|
|
1.15 |
% |
Net charge-offs (recoveries)
to average loans (annualized) |
|
0.01 |
% |
|
|
0.30 |
% |
|
|
(0.02 |
%) |
|
|
0.05 |
% |
|
|
0.03 |
% |
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,
adjusted pre-tax, pre-provision income, adjusted pre-tax,
pre-provision ROAA, adjusted efficiency ratio, 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 |
|
2023 |
|
2022 |
|
March 31 |
|
December 31 |
|
September 30 |
|
June 30 |
|
March 31 |
|
(Dollars and share amounts in thousands, except per share
data) |
Net income |
$ |
37,148 |
|
|
$ |
2,052 |
|
|
$ |
14,286 |
|
|
$ |
16,437 |
|
|
$ |
18,657 |
|
Add: Provision for credit
losses |
|
3,666 |
|
|
|
44,793 |
|
|
|
1,962 |
|
|
|
2,143 |
|
|
|
1,814 |
|
Add: Provision for income
taxes |
|
9,913 |
|
|
|
(218 |
) |
|
|
3,406 |
|
|
|
3,702 |
|
|
|
4,202 |
|
Pre-tax, pre-provision
income |
$ |
50,727 |
|
|
$ |
46,627 |
|
|
$ |
19,654 |
|
|
$ |
22,282 |
|
|
$ |
24,673 |
|
|
|
|
|
|
|
|
|
|
|
Total average assets |
$ |
10,882,533 |
|
|
$ |
10,946,009 |
|
|
$ |
6,717,886 |
|
|
$ |
7,019,299 |
|
|
$ |
7,257,498 |
|
|
|
|
|
|
|
|
|
|
|
Pre-tax, pre-provision
return on average assets(B) |
|
1.89 |
% |
|
|
1.69 |
% |
|
|
1.16 |
% |
|
|
1.27 |
% |
|
|
1.38 |
% |
|
|
|
|
|
|
|
|
|
|
Pre-tax, pre-provision
income |
$ |
50,727 |
|
|
$ |
46,627 |
|
|
$ |
19,654 |
|
|
$ |
22,282 |
|
|
$ |
24,673 |
|
Add: Acquisition and
merger-related expenses |
|
6,165 |
|
|
|
11,469 |
|
|
|
10,551 |
|
|
|
1,667 |
|
|
|
451 |
|
Add: Amortization of
intangibles |
|
6,879 |
|
|
|
7,051 |
|
|
|
750 |
|
|
|
751 |
|
|
|
751 |
|
Less: Purchase accounting
accretion |
|
10,104 |
|
|
|
8,160 |
|
|
|
40 |
|
|
|
77 |
|
|
|
93 |
|
Less: Gain (loss) on sale of
assets |
|
198 |
|
|
|
4,025 |
|
|
|
42 |
|
|
|
(17 |
) |
|
|
— |
|
Adjusted pre-tax,
pre-provision income |
$ |
53,469 |
|
|
$ |
52,962 |
|
|
$ |
30,873 |
|
|
$ |
24,640 |
|
|
$ |
25,782 |
|
|
|
|
|
|
|
|
|
|
|
Adjusted pre-tax,
pre-provision return on average
assets(B) |
|
1.99 |
% |
|
|
1.92 |
% |
|
|
1.82 |
% |
|
|
1.41 |
% |
|
|
1.44 |
% |
|
|
|
|
|
|
|
|
|
|
Total noninterest expense |
$ |
72,598 |
|
|
$ |
79,624 |
|
|
$ |
44,031 |
|
|
$ |
37,904 |
|
|
$ |
34,517 |
|
Less: Acquisition and
merger-related expenses |
|
6,165 |
|
|
|
11,469 |
|
|
|
10,551 |
|
|
|
1,667 |
|
|
|
451 |
|
Less: Amortization of
intangibles |
|
6,879 |
|
|
|
7,051 |
|
|
|
750 |
|
|
|
751 |
|
|
|
751 |
|
Net interest income |
|
115,827 |
|
|
|
115,614 |
|
|
|
60,690 |
|
|
|
57,482 |
|
|
|
55,172 |
|
Less: Purchase accounting
accretion |
|
10,104 |
|
|
|
8,160 |
|
|
|
40 |
|
|
|
77 |
|
|
|
93 |
|
Total noninterest income |
|
7,498 |
|
|
|
10,637 |
|
|
|
2,995 |
|
|
|
2,704 |
|
|
|
4,018 |
|
Less: Gain (loss) on sale of
assets |
|
198 |
|
|
|
4,025 |
|
|
|
42 |
|
|
|
(17 |
) |
|
|
— |
|
Adjusted efficiency
ratio(A) |
|
52.69 |
% |
|
|
53.57 |
% |
|
|
51.46 |
% |
|
|
59.02 |
% |
|
|
56.37 |
% |
|
|
|
|
|
|
|
|
|
|
Total shareholders'
equity |
$ |
1,446,216 |
|
|
$ |
1,383,176 |
|
|
$ |
656,302 |
|
|
$ |
705,329 |
|
|
$ |
751,940 |
|
Less: Goodwill and core
deposit intangibles, net |
|
633,925 |
|
|
|
640,785 |
|
|
|
236,048 |
|
|
|
236,798 |
|
|
|
237,549 |
|
Tangible shareholders’
equity |
$ |
812,291 |
|
|
$ |
742,391 |
|
|
$ |
420,254 |
|
|
$ |
468,531 |
|
|
$ |
514,391 |
|
|
|
|
|
|
|
|
|
|
|
Shares outstanding at end of
period |
|
53,296 |
|
|
|
52,955 |
|
|
|
28,137 |
|
|
|
28,586 |
|
|
|
28,904 |
|
|
|
|
|
|
|
|
|
|
|
Tangible book value
per share |
$ |
15.24 |
|
|
$ |
14.02 |
|
|
$ |
14.94 |
|
|
$ |
16.39 |
|
|
$ |
17.80 |
|
|
|
|
|
|
|
|
|
|
|
Average shareholders'
equity |
$ |
1,418,082 |
|
|
$ |
1,347,938 |
|
|
$ |
717,436 |
|
|
$ |
744,126 |
|
|
$ |
804,704 |
|
Less: Average goodwill
and core deposit intangibles, net |
|
638,110 |
|
|
|
658,107 |
|
|
|
236,399 |
|
|
|
237,153 |
|
|
|
237,925 |
|
Average tangible shareholders’
equity |
$ |
779,972 |
|
|
$ |
689,831 |
|
|
$ |
481,037 |
|
|
$ |
506,973 |
|
|
$ |
566,779 |
|
|
|
|
|
|
|
|
|
|
|
Return on average
tangible equity(B) |
|
19.32 |
% |
|
|
1.18 |
% |
|
|
11.78 |
% |
|
|
13.00 |
% |
|
|
13.35 |
% |
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
10,604,718 |
|
|
$ |
10,900,437 |
|
|
$ |
6,730,342 |
|
|
$ |
6,731,764 |
|
|
$ |
7,149,363 |
|
Less: Goodwill and core
deposit intangibles, net |
|
633,925 |
|
|
|
640,785 |
|
|
|
236,048 |
|
|
|
236,798 |
|
|
|
237,549 |
|
Tangible
assets |
$ |
9,970,793 |
|
|
$ |
10,259,652 |
|
|
$ |
6,494,294 |
|
|
$ |
6,494,966 |
|
|
$ |
6,911,814 |
|
|
|
|
|
|
|
|
|
|
|
Tangible equity to
tangible assets |
|
8.15 |
% |
|
|
7.24 |
% |
|
|
6.47 |
% |
|
|
7.21 |
% |
|
|
7.44 |
% |
|
|
|
|
|
|
|
|
|
|
Net interest income (tax
equivalent) |
$ |
116,119 |
|
|
$ |
116,574 |
|
|
$ |
61,418 |
|
|
$ |
58,238 |
|
|
$ |
55,922 |
|
Less: Purchase accounting
accretion |
|
10,104 |
|
|
|
8,160 |
|
|
|
40 |
|
|
|
77 |
|
|
|
93 |
|
Adjusted net interest
income (tax equivalent) |
$ |
106,015 |
|
|
$ |
108,414 |
|
|
$ |
61,378 |
|
|
$ |
58,161 |
|
|
$ |
55,829 |
|
|
|
|
|
|
|
|
|
|
|
Average earning assets |
$ |
9,815,803 |
|
|
$ |
9,815,701 |
|
|
$ |
6,325,984 |
|
|
$ |
6,618,005 |
|
|
$ |
6,873,708 |
|
Net interest margin
(tax equivalent) excluding PAA |
|
4.38 |
% |
|
|
4.38 |
% |
|
|
3.85 |
% |
|
|
3.52 |
% |
|
|
3.29 |
% |
(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.
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