Stellar Bancorp, Inc. (the “Company” or “Stellar”) (NYSE: STEL)
today reported net income of $30.9 million and diluted earnings per
share of $0.58 for the third quarter 2023 compared to net income of
$35.2 million and diluted earnings per share of $0.66 for the
second quarter 2023.
“We are pleased with our results for the third quarter 2023
given the uncertainty of the economic environment. We remain
steadfast in our commitment to provide and protect the qualities we
think drive shareholder value; balance sheet strength; sound
quality; and stable core deposits,” said Robert R. Franklin, Jr.,
Stellar’s Chief Executive Officer.
“We continue our strategy of not fighting the actions of the
Federal Reserve as it attempts to slow the economy to tamp down
inflation. Raising interest rates is a blunt tool and there are
consequences to the velocity at which rates have increased. We must
remain vigilant as customers adjust to higher prices, the higher
cost of capital and potential adjustments to asset prices,”
continued Mr. Franklin.
“We will continue to build our capital base, be mindful of our
liquidity position and be watchful of our credit quality. We
believe that Stellar remains well positioned to have optionality as
we move through this economic cycle while protecting and increasing
long-term shareholder value,” concluded Mr. Franklin.
Third Quarter 2023 Financial Highlights
- Strong Profitability: Third quarter 2023 net income of $30.9
million and diluted earnings per share of $0.58 translated into an
annualized return on average assets of 1.14% and an annualized
return on average tangible equity of 14.47%(1).
- Continued Regulatory Capital Build: Total risk-based capital
ratio increased to 13.42% at September 30, 2023 from 12.39% at
December 31, 2022 and Tier 1 leverage ratio increased to 9.82% at
September 30, 2023 from 8.55% at December 31, 2022.
- Solid Margin: Tax equivalent net interest margin was 4.37% for
the third quarter of 2023 as compared to 4.49% in the second
quarter of 2023. The tax equivalent net interest margin, excluding
purchase accounting accretion (“PAA”), was 3.87%(1) for the third
quarter of 2023 and 3.97%(1) for the second quarter of 2023.
- Advantageous Funding Profile: Noninterest-bearing deposit
balances decreased from the second quarter but remained a
significant portion of our deposit funding base at 42.1% at the end
of the third quarter 2023 compared to 42.4% at the end of the
second quarter 2023.
Merger of Equals
The merger of equals (the “Merger”) between Allegiance
Bancshares, Inc. (“Allegiance”) and CBTX, Inc. (“CBTX”), which
became effective on October 1, 2022, 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 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,
second and third quarters of 2023 and the fourth quarter 2022 and
stand-alone Allegiance for all periods prior to October 1,
2022.
_____________________(1) Refer to page 10 of this earnings
release for the calculation of this non-GAAP financial
measure.Third Quarter 2023
Results
Stellar’s net interest income in the third quarter 2023
decreased $1.6 million, or 1.4%, from $108.3 million for
the second quarter 2023. The net interest margin on a tax
equivalent basis decreased 12 basis points to 4.37% for the third
quarter 2023 from 4.49% for the second quarter 2023. The decrease
in the net interest margin from the prior quarter was primarily due
to the impact of increased interest rates on our cost of funding
only partially offset by increased income on interest earning
assets. Net interest income for the third quarter of 2023 benefited
from $12.4 million of income from purchase accounting adjustments
compared to $12.6 million in the second quarter of 2023. Excluding
purchase accounting adjustments, a non-GAAP measure that is
reconciled on page 10 of this earnings release, net interest income
for the third quarter 2023 would have been $94.5 million and the
tax equivalent net interest margin would have been 3.87%.
Noninterest income for the third quarter 2023 was
$4.7 million, a decrease of $788 thousand, or 14.4%,
compared to $5.5 million for the second quarter 2023.
Noninterest income decreased in the third quarter of 2023 compared
to the second quarter of 2023 primarily due to a decrease in debit
card and ATM income due to the impact of the Durbin Amendment and
change in the Company’s policy on charging nonsufficient funds
fees.
Noninterest expense for the third quarter 2023 increased
$1.5 million, or 2.2%, to $70.7 million compared to $69.2
million for the second quarter of 2023. The increase in noninterest
expense in the third quarter of 2023 compared to the second quarter
of 2023 was primarily due to an increase in salaries and employee
benefits and acquisition and merger-related expenses which totaled
$3.4 million for the third quarter of 2023 compared to $2.9 million
in the second quarter of 2023.
Stellar’s efficiency ratio was 63.50% for the third quarter 2023
compared to 60.83% for the second quarter 2023. Third quarter 2023
annualized returns on average assets, average equity and average
tangible equity were 1.14%, 8.34% and 14.47%, respectively,
compared to 1.31%, 9.67% and 17.05%, respectively, for the second
quarter 2023. Return on average tangible equity is a non-GAAP
measure. Please refer to the non-GAAP reconciliation on page 10 of
this earnings release.
Financial Condition
Total loans at September 30, 2023 decreased
$64.2 million to $8.00 billion compared to $8.07 billion
at June 30, 2023. At September 30, 2023, the remaining balance of
the purchase accounting adjustments on loans was $118.8
million.
Total deposits at September 30, 2023 decreased
$79.7 million to $8.69 billion compared to $8.77 billion
at June 30, 2023, due to decreases in noninterest-bearing demand,
interest-bearing demand, money market and savings balances,
partially offset by increases in certificates and other time
deposits. Shifts in the deposit mix were primarily driven by the
current interest rate environment and an intensely competitive
market for deposits. Estimated uninsured deposits totaled $4.73
billion and estimated uninsured deposits net of collateralized
deposits of $865.7 million were $3.86 billion, or 44.5%, of total
deposits at September 30, 2023.
Total assets at September 30, 2023 were $10.67 billion, a
decrease of $112.9 million, compared to $10.78 billion at June
30, 2023.
Asset Quality
Nonperforming assets totaled $38.3 million, or 0.36% of
total assets, at September 30, 2023, compared to
$43.3 million, or 0.40%, of total assets, at June 30, 2023.
The allowance for credit losses on loans as a percentage of total
loans was 1.17% at September 30, 2023 and 1.24% at June 30,
2023.
The provision for credit losses for the third quarter 2023 was
$2.3 million compared to $1.9 million for the second
quarter 2023. Third quarter 2023 net charge-offs were
$8.1 million, or 0.40% (annualized) of average loans, compared
to net charge-offs of $236 thousand, or 0.01% (annualized) of
average loans, for the second quarter 2023. Net charge-offs
increased this quarter primarily due to a single commercial and
industrial loan relationship that was placed on nonaccrual status
at December 31, 2022 and had an allowance for credit losses of $5.1
million at June 30, 2023. During the third quarter 2023, the
borrower’s financial condition further deteriorated, which prompted
the charge-off of $8.0 million on the loan relationship.
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 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 27, 2023 at 8:00 a.m. Central Time
(9:00 a.m. Eastern Time) to discuss third quarter 2023 results.
Individuals and investment professionals may register for the
conference call at
https://register.vevent.com/register/BI6cc171f27f424552a720c74008bfa355 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 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
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 |
|
|
September 30 |
|
June 30 |
|
March 31 |
|
December 31 |
|
September 30 |
|
(Dollars in thousands) |
ASSETS |
|
|
|
|
|
|
|
|
|
Cash and due from banks |
$ |
94,970 |
|
|
$ |
105,913 |
|
|
$ |
99,231 |
|
|
$ |
67,063 |
|
|
$ |
16,449 |
|
Interest-bearing deposits at
other financial institutions |
|
207,302 |
|
|
|
198,176 |
|
|
|
164,102 |
|
|
|
304,642 |
|
|
|
102,118 |
|
Total cash and cash equivalents |
|
302,272 |
|
|
|
304,089 |
|
|
|
263,333 |
|
|
|
371,705 |
|
|
|
118,567 |
|
|
|
|
|
|
|
|
|
|
|
Available for sale securities, at
fair value |
|
1,414,952 |
|
|
|
1,478,222 |
|
|
|
1,519,175 |
|
|
|
1,807,586 |
|
|
|
1,618,995 |
|
|
|
|
|
|
|
|
|
|
|
Loans held for investment |
|
8,004,528 |
|
|
|
8,068,718 |
|
|
|
7,886,044 |
|
|
|
7,754,751 |
|
|
|
4,591,912 |
|
Less: allowance for credit losses
on loans |
|
(93,575 |
) |
|
|
(100,195 |
) |
|
|
(96,188 |
) |
|
|
(93,180 |
) |
|
|
(52,147 |
) |
Loans, net |
|
7,910,953 |
|
|
|
7,968,523 |
|
|
|
7,789,856 |
|
|
|
7,661,571 |
|
|
|
4,539,765 |
|
|
|
|
|
|
|
|
|
|
|
Accrued interest
receivable |
|
43,536 |
|
|
|
42,051 |
|
|
|
42,405 |
|
|
|
44,743 |
|
|
|
29,697 |
|
Premises and equipment,
net |
|
119,332 |
|
|
|
119,142 |
|
|
|
124,723 |
|
|
|
126,803 |
|
|
|
57,837 |
|
Federal Home Loan Bank
stock |
|
29,022 |
|
|
|
24,478 |
|
|
|
19,676 |
|
|
|
15,058 |
|
|
|
16,843 |
|
Bank-owned life insurance |
|
104,699 |
|
|
|
104,148 |
|
|
|
103,616 |
|
|
|
103,094 |
|
|
|
28,305 |
|
Goodwill |
|
497,318 |
|
|
|
497,260 |
|
|
|
497,260 |
|
|
|
497,260 |
|
|
|
223,642 |
|
Core deposit intangibles,
net |
|
122,944 |
|
|
|
129,805 |
|
|
|
136,665 |
|
|
|
143,525 |
|
|
|
12,406 |
|
Other assets |
|
120,432 |
|
|
|
110,633 |
|
|
|
108,009 |
|
|
|
129,092 |
|
|
|
84,285 |
|
Total assets |
$ |
10,665,460 |
|
|
$ |
10,778,351 |
|
|
$ |
10,604,718 |
|
|
$ |
10,900,437 |
|
|
$ |
6,730,342 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES: |
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
Noninterest-bearing |
$ |
3,656,288 |
|
|
$ |
3,713,536 |
|
|
$ |
3,877,859 |
|
|
$ |
4,230,169 |
|
|
$ |
2,465,839 |
|
Interest-bearing |
|
|
|
|
|
|
|
|
|
Demand |
|
1,397,492 |
|
|
|
1,437,509 |
|
|
|
1,394,244 |
|
|
|
1,591,828 |
|
|
|
956,920 |
|
Money market and savings |
|
2,128,950 |
|
|
|
2,174,073 |
|
|
|
2,401,840 |
|
|
|
2,575,923 |
|
|
|
1,471,690 |
|
Certificates and other time |
|
1,503,891 |
|
|
|
1,441,251 |
|
|
|
1,064,932 |
|
|
|
869,712 |
|
|
|
766,270 |
|
Total interest-bearing deposits |
|
5,030,333 |
|
|
|
5,052,833 |
|
|
|
4,861,016 |
|
|
|
5,037,463 |
|
|
|
3,194,880 |
|
Total deposits |
|
8,686,621 |
|
|
|
8,766,369 |
|
|
|
8,738,875 |
|
|
|
9,267,632 |
|
|
|
5,660,719 |
|
|
|
|
|
|
|
|
|
|
|
Accrued interest payable |
|
7,612 |
|
|
|
4,555 |
|
|
|
3,875 |
|
|
|
2,098 |
|
|
|
2,673 |
|
Borrowed funds |
|
323,981 |
|
|
|
369,963 |
|
|
|
238,944 |
|
|
|
63,925 |
|
|
|
257,000 |
|
Subordinated debt |
|
109,665 |
|
|
|
109,566 |
|
|
|
109,420 |
|
|
|
109,367 |
|
|
|
109,241 |
|
Other liabilities |
|
76,735 |
|
|
|
69,218 |
|
|
|
67,388 |
|
|
|
74,239 |
|
|
|
44,407 |
|
Total liabilities |
|
9,204,614 |
|
|
|
9,319,671 |
|
|
|
9,158,502 |
|
|
|
9,517,261 |
|
|
|
6,074,040 |
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS’ EQUITY: |
|
|
|
|
|
|
|
|
|
Common stock |
|
533 |
|
|
|
533 |
|
|
|
533 |
|
|
|
530 |
|
|
|
281 |
|
Capital surplus |
|
1,231,686 |
|
|
|
1,228,532 |
|
|
|
1,225,596 |
|
|
|
1,222,761 |
|
|
|
511,434 |
|
Retained earnings |
|
385,600 |
|
|
|
361,619 |
|
|
|
333,368 |
|
|
|
303,146 |
|
|
|
307,975 |
|
Accumulated other
comprehensive loss |
|
(156,973 |
) |
|
|
(132,004 |
) |
|
|
(113,281 |
) |
|
|
(143,261 |
) |
|
|
(163,388 |
) |
Total shareholders’ equity |
|
1,460,846 |
|
|
|
1,458,680 |
|
|
|
1,446,216 |
|
|
|
1,383,176 |
|
|
|
656,302 |
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
$ |
10,665,460 |
|
|
$ |
10,778,351 |
|
|
$ |
10,604,718 |
|
|
$ |
10,900,437 |
|
|
$ |
6,730,342 |
|
Stellar Bancorp, Inc.Financial
Highlights(Unaudited) |
|
Three Months Ended |
|
Nine Months Ended |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
September 30 |
|
June 30 |
|
March 31 |
|
December 31 |
|
September 30 |
|
September 30 |
|
September 30 |
|
(Dollars in thousands, except per share data) |
INTEREST INCOME: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, including fees |
$ |
138,948 |
|
$ |
133,931 |
|
|
$ |
125,729 |
|
$ |
116,145 |
|
|
$ |
58,025 |
|
$ |
398,608 |
|
$ |
164,230 |
Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
9,493 |
|
|
9,726 |
|
|
|
9,653 |
|
|
9,834 |
|
|
|
6,655 |
|
|
28,872 |
|
|
17,294 |
Tax-exempt |
|
437 |
|
|
436 |
|
|
|
1,262 |
|
|
3,057 |
|
|
|
2,594 |
|
|
2,135 |
|
|
7,676 |
Deposits in other financial institutions |
|
2,391 |
|
|
2,865 |
|
|
|
3,771 |
|
|
2,933 |
|
|
|
608 |
|
|
9,027 |
|
|
1,825 |
Total interest income |
|
151,269 |
|
|
146,958 |
|
|
|
140,415 |
|
|
131,969 |
|
|
|
67,882 |
|
|
438,642 |
|
|
191,025 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST EXPENSE: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand, money market and savings deposits |
|
23,557 |
|
|
20,708 |
|
|
|
18,037 |
|
|
12,406 |
|
|
|
3,527 |
|
|
62,302 |
|
|
6,733 |
Certificates and other time deposits |
|
13,282 |
|
|
9,622 |
|
|
|
3,307 |
|
|
2,083 |
|
|
|
1,664 |
|
|
26,211 |
|
|
5,742 |
Borrowed funds |
|
5,801 |
|
|
6,535 |
|
|
|
1,317 |
|
|
417 |
|
|
|
499 |
|
|
13,653 |
|
|
799 |
Subordinated debt |
|
1,908 |
|
|
1,812 |
|
|
|
1,927 |
|
|
1,449 |
|
|
|
1,502 |
|
|
5,647 |
|
|
4,407 |
Total interest expense |
|
44,548 |
|
|
38,677 |
|
|
|
24,588 |
|
|
16,355 |
|
|
|
7,192 |
|
|
107,813 |
|
|
17,681 |
NET INTEREST INCOME |
|
106,721 |
|
|
108,281 |
|
|
|
115,827 |
|
|
115,614 |
|
|
|
60,690 |
|
|
330,829 |
|
|
173,344 |
Provision for credit losses |
|
2,315 |
|
|
1,915 |
|
|
|
3,666 |
|
|
44,793 |
|
|
|
1,962 |
|
|
7,896 |
|
|
5,919 |
Net interest income after provision for credit losses |
|
104,406 |
|
|
106,366 |
|
|
|
112,161 |
|
|
70,821 |
|
|
|
58,728 |
|
|
322,933 |
|
|
167,425 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NONINTEREST INCOME: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonsufficient funds and overdraft charges |
|
291 |
|
|
418 |
|
|
|
406 |
|
|
447 |
|
|
|
145 |
|
|
1,115 |
|
|
387 |
Service charges on deposit accounts |
|
1,329 |
|
|
1,157 |
|
|
|
943 |
|
|
1,242 |
|
|
|
527 |
|
|
3,429 |
|
|
1,614 |
(Loss) gain on sale of assets |
|
— |
|
|
(6 |
) |
|
|
198 |
|
|
4,025 |
|
|
|
42 |
|
|
192 |
|
|
25 |
Bank-owned life insurance |
|
551 |
|
|
532 |
|
|
|
522 |
|
|
515 |
|
|
|
135 |
|
|
1,605 |
|
|
610 |
Debit card and ATM income |
|
935 |
|
|
1,821 |
|
|
|
1,698 |
|
|
1,897 |
|
|
|
869 |
|
|
4,454 |
|
|
2,568 |
Other |
|
1,589 |
|
|
1,561 |
|
|
|
3,731 |
|
|
2,511 |
|
|
|
1,277 |
|
|
6,881 |
|
|
4,513 |
Total noninterest income |
|
4,695 |
|
|
5,483 |
|
|
|
7,498 |
|
|
10,637 |
|
|
|
2,995 |
|
|
17,676 |
|
|
9,717 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NONINTEREST EXPENSE: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
39,495 |
|
|
37,300 |
|
|
|
39,775 |
|
|
40,949 |
|
|
|
22,013 |
|
|
116,570 |
|
|
66,605 |
Net occupancy and equipment |
|
4,455 |
|
|
3,817 |
|
|
|
4,088 |
|
|
3,781 |
|
|
|
2,129 |
|
|
12,360 |
|
|
6,554 |
Depreciation |
|
1,952 |
|
|
1,841 |
|
|
|
1,836 |
|
|
1,903 |
|
|
|
1,003 |
|
|
5,629 |
|
|
3,048 |
Data processing and software amortization |
|
4,798 |
|
|
4,674 |
|
|
|
5,054 |
|
|
3,776 |
|
|
|
2,541 |
|
|
14,526 |
|
|
7,561 |
Professional fees |
|
997 |
|
|
1,564 |
|
|
|
1,527 |
|
|
2,298 |
|
|
|
485 |
|
|
4,088 |
|
|
1,285 |
Regulatory assessments and FDIC insurance |
|
1,814 |
|
|
2,755 |
|
|
|
1,294 |
|
|
1,263 |
|
|
|
1,134 |
|
|
5,863 |
|
|
3,651 |
Amortization of intangibles |
|
6,876 |
|
|
6,881 |
|
|
|
6,879 |
|
|
7,051 |
|
|
|
750 |
|
|
20,636 |
|
|
2,252 |
Communications |
|
663 |
|
|
689 |
|
|
|
701 |
|
|
737 |
|
|
|
359 |
|
|
2,053 |
|
|
1,063 |
Advertising |
|
877 |
|
|
907 |
|
|
|
839 |
|
|
1,130 |
|
|
|
385 |
|
|
2,623 |
|
|
1,330 |
Acquisition and merger-related expenses |
|
3,421 |
|
|
2,897 |
|
|
|
6,165 |
|
|
11,469 |
|
|
|
10,551 |
|
|
12,483 |
|
|
12,669 |
Other |
|
5,400 |
|
|
5,882 |
|
|
|
4,440 |
|
|
5,267 |
|
|
|
2,681 |
|
|
15,722 |
|
|
10,434 |
Total noninterest expense |
|
70,748 |
|
|
69,207 |
|
|
|
72,598 |
|
|
79,624 |
|
|
|
44,031 |
|
|
212,553 |
|
|
116,452 |
INCOME BEFORE INCOME
TAXES |
|
38,353 |
|
|
42,642 |
|
|
|
47,061 |
|
|
1,834 |
|
|
|
17,692 |
|
|
128,056 |
|
|
60,690 |
Provision for income taxes |
|
7,445 |
|
|
7,467 |
|
|
|
9,913 |
|
|
(218 |
) |
|
|
3,406 |
|
|
24,825 |
|
|
11,310 |
NET INCOME |
$ |
30,908 |
|
$ |
35,175 |
|
|
$ |
37,148 |
|
$ |
2,052 |
|
|
$ |
14,286 |
|
$ |
103,231 |
|
$ |
49,380 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER SHARE |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.58 |
|
$ |
0.66 |
|
|
$ |
0.70 |
|
$ |
0.04 |
|
|
$ |
0.51 |
|
$ |
1.94 |
|
$ |
1.72 |
Diluted |
$ |
0.58 |
|
$ |
0.66 |
|
|
$ |
0.70 |
|
$ |
0.04 |
|
|
$ |
0.50 |
|
$ |
1.94 |
|
$ |
1.71 |
Stellar Bancorp, Inc.Financial
Highlights(Unaudited) |
|
Three Months Ended |
|
Nine Months Ended |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
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 |
$ |
30,908 |
|
|
$ |
35,175 |
|
|
$ |
37,148 |
|
|
$ |
2,052 |
|
|
$ |
14,286 |
|
|
$ |
103,231 |
|
|
$ |
49,380 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share, basic |
$ |
0.58 |
|
|
$ |
0.66 |
|
|
$ |
0.70 |
|
|
$ |
0.04 |
|
|
$ |
0.51 |
|
|
$ |
1.94 |
|
|
$ |
1.72 |
|
Earnings per share,
diluted |
$ |
0.58 |
|
|
$ |
0.66 |
|
|
$ |
0.70 |
|
|
$ |
0.04 |
|
|
$ |
0.50 |
|
|
$ |
1.94 |
|
|
$ |
1.71 |
|
Dividends per share |
$ |
0.13 |
|
|
$ |
0.13 |
|
|
$ |
0.13 |
|
|
$ |
0.13 |
|
|
$ |
0.10 |
|
|
$ |
0.39 |
|
|
$ |
0.30 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets(A) |
|
1.14 |
% |
|
|
1.31 |
% |
|
|
1.38 |
% |
|
|
0.07 |
% |
|
|
0.84 |
% |
|
|
1.28 |
% |
|
|
0.94 |
% |
Return on average
equity(A) |
|
8.34 |
% |
|
|
9.67 |
% |
|
|
10.62 |
% |
|
|
0.60 |
% |
|
|
7.90 |
% |
|
|
9.52 |
% |
|
|
8.74 |
% |
Return on average tangible
equity(A)(B) |
|
14.47 |
% |
|
|
17.05 |
% |
|
|
19.32 |
% |
|
|
1.16 |
% |
|
|
11.78 |
% |
|
|
16.86 |
% |
|
|
12.75 |
% |
Net interest margin (tax
equivalent)(A)(C) |
|
4.37 |
% |
|
|
4.49 |
% |
|
|
4.80 |
% |
|
|
4.71 |
% |
|
|
3.85 |
% |
|
|
4.55 |
% |
|
|
3.55 |
% |
Net interest margin (tax
equivalent) excluding PAA(A)(B)(C) |
|
3.87 |
% |
|
|
3.97 |
% |
|
|
4.38 |
% |
|
|
4.38 |
% |
|
|
3.85 |
% |
|
|
4.07 |
% |
|
|
3.55 |
% |
Efficiency ratio(D) |
|
63.50 |
% |
|
|
60.83 |
% |
|
|
58.96 |
% |
|
|
65.14 |
% |
|
|
69.18 |
% |
|
|
61.02 |
% |
|
|
63.62 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
Stellar Bancorp, Inc.
(Consolidated) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity to assets |
|
13.70 |
% |
|
|
13.53 |
% |
|
|
13.64 |
% |
|
|
12.69 |
% |
|
|
9.75 |
% |
|
|
13.70 |
% |
|
|
9.75 |
% |
Tangible equity to tangible assets(B) |
|
8.37 |
% |
|
|
8.19 |
% |
|
|
8.15 |
% |
|
|
7.24 |
% |
|
|
6.47 |
% |
|
|
8.37 |
% |
|
|
6.47 |
% |
Total capital ratio (to risk-weighted assets) |
|
13.42 |
% |
|
|
13.03 |
% |
|
|
12.72 |
% |
|
|
12.39 |
% |
|
|
14.66 |
% |
|
|
13.44 |
% |
|
|
14.66 |
% |
Common equity Tier 1 capital (to risk weighted assets) |
|
11.14 |
% |
|
|
10.67 |
% |
|
|
10.39 |
% |
|
|
10.04 |
% |
|
|
11.39 |
% |
|
|
11.14 |
% |
|
|
11.39 |
% |
Tier 1 capital (to risk-weighted assets) |
|
11.25 |
% |
|
|
10.78 |
% |
|
|
10.50 |
% |
|
|
10.15 |
% |
|
|
11.58 |
% |
|
|
11.25 |
% |
|
|
11.58 |
% |
Tier 1 leverage (to average tangible assets) |
|
9.82 |
% |
|
|
9.51 |
% |
|
|
9.01 |
% |
|
|
8.55 |
% |
|
|
9.00 |
% |
|
|
9.82 |
% |
|
|
9.00 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stellar Bank |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total capital ratio (to risk-weighted assets) |
|
13.13 |
% |
|
|
12.80 |
% |
|
|
12.42 |
% |
|
|
12.02 |
% |
|
|
14.12 |
% |
|
|
13.16 |
% |
|
|
14.12 |
% |
Common equity Tier 1 capital (to risk-weighted assets) |
|
11.63 |
% |
|
|
11.22 |
% |
|
|
10.87 |
% |
|
|
10.46 |
% |
|
|
12.20 |
% |
|
|
11.63 |
% |
|
|
12.20 |
% |
Tier 1 capital (to risk-weighted assets) |
|
11.63 |
% |
|
|
11.22 |
% |
|
|
10.87 |
% |
|
|
10.46 |
% |
|
|
12.20 |
% |
|
|
11.63 |
% |
|
|
12.20 |
% |
Tier 1 leverage (to average tangible assets) |
|
10.15 |
% |
|
|
9.89 |
% |
|
|
9.35 |
% |
|
|
8.81 |
% |
|
|
9.49 |
% |
|
|
10.15 |
% |
|
|
9.49 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
53,313 |
|
|
|
53,297 |
|
|
|
53,021 |
|
|
|
52,715 |
|
|
|
28,286 |
|
|
|
53,211 |
|
|
|
28,679 |
|
Diluted |
|
53,380 |
|
|
|
53,375 |
|
|
|
53,138 |
|
|
|
52,973 |
|
|
|
28,530 |
|
|
|
53,300 |
|
|
|
28,901 |
|
Period end shares
outstanding |
|
53,322 |
|
|
|
53,303 |
|
|
|
53,296 |
|
|
|
52,955 |
|
|
|
28,137 |
|
|
|
53,322 |
|
|
|
28,137 |
|
Book value per share |
$ |
27.40 |
|
|
$ |
27.37 |
|
|
$ |
27.14 |
|
|
$ |
26.12 |
|
|
$ |
23.33 |
|
|
$ |
27.40 |
|
|
$ |
23.33 |
|
Tangible book value per
share(B) |
$ |
15.76 |
|
|
$ |
15.60 |
|
|
$ |
15.24 |
|
|
$ |
14.02 |
|
|
$ |
14.94 |
|
|
$ |
15.76 |
|
|
$ |
14.94 |
|
Employees - full-time
equivalents |
|
1,008 |
|
|
|
1,004 |
|
|
|
1,055 |
|
|
|
1,025 |
|
|
|
562 |
|
|
|
1,008 |
|
|
|
562 |
|
(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, 2023 |
|
June 30, 2023 |
|
September 30, 2022 |
|
Average Balance |
|
Interest Earned/ Interest
Paid |
|
Average Yield/Rate |
|
Average Balance |
|
Interest Earned/ Interest
Paid |
|
Average Yield/Rate |
|
Average Balance |
|
Interest Earned/Interest
Paid |
|
Average Yield/Rate |
|
(Dollars in thousands) |
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Earning Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
$ |
8,043,706 |
|
|
$ |
138,948 |
|
6.85 |
% |
|
$ |
7,980,856 |
|
|
$ |
133,931 |
|
6.73 |
% |
|
$ |
4,456,174 |
|
|
$ |
58,025 |
|
5.17 |
% |
Securities |
|
1,471,916 |
|
|
|
9,930 |
|
2.68 |
% |
|
|
1,502,949 |
|
|
|
10,162 |
|
2.71 |
% |
|
|
1,709,470 |
|
|
|
9,249 |
|
2.15 |
% |
Deposits in other financial
institutions |
|
181,931 |
|
|
|
2,391 |
|
5.21 |
% |
|
|
209,722 |
|
|
|
2,865 |
|
5.48 |
% |
|
|
160,340 |
|
|
|
608 |
|
1.50 |
% |
Total interest-earning assets |
|
9,697,553 |
|
|
$ |
151,269 |
|
6.19 |
% |
|
|
9,693,527 |
|
|
$ |
146,958 |
|
6.08 |
% |
|
|
6,325,984 |
|
|
$ |
67,882 |
|
4.26 |
% |
Allowance for credit losses on loans |
|
(99,892 |
) |
|
|
|
|
|
|
(96,414 |
) |
|
|
|
|
|
|
(50,609 |
) |
|
|
|
|
Noninterest-earning assets |
|
1,143,634 |
|
|
|
|
|
|
|
1,143,025 |
|
|
|
|
|
|
|
442,511 |
|
|
|
|
|
Total assets |
$ |
10,741,295 |
|
|
|
|
|
|
$ |
10,740,138 |
|
|
|
|
|
|
$ |
6,717,886 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Bearing
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand
deposits |
$ |
1,400,508 |
|
|
$ |
10,415 |
|
2.95 |
% |
|
$ |
1,387,604 |
|
|
$ |
9,343 |
|
2.70 |
% |
|
$ |
978,531 |
|
|
$ |
2,380 |
|
0.96 |
% |
Money market and savings
deposits |
|
2,166,610 |
|
|
|
13,142 |
|
2.41 |
% |
|
|
2,220,827 |
|
|
|
11,365 |
|
2.05 |
% |
|
|
1,500,083 |
|
|
|
1,147 |
|
0.30 |
% |
Certificates and other time
deposits |
|
1,400,367 |
|
|
|
13,282 |
|
3.76 |
% |
|
|
1,225,834 |
|
|
|
9,622 |
|
3.15 |
% |
|
|
877,231 |
|
|
|
1,664 |
|
0.75 |
% |
Borrowed funds |
|
411,212 |
|
|
|
5,801 |
|
5.60 |
% |
|
|
479,896 |
|
|
|
6,535 |
|
5.46 |
% |
|
|
68,752 |
|
|
|
499 |
|
2.88 |
% |
Subordinated debt |
|
109,608 |
|
|
|
1,908 |
|
6.91 |
% |
|
|
109,499 |
|
|
|
1,812 |
|
6.64 |
% |
|
|
109,177 |
|
|
|
1,502 |
|
5.46 |
% |
Total interest-bearing liabilities |
|
5,488,305 |
|
|
$ |
44,548 |
|
3.22 |
% |
|
|
5,423,660 |
|
|
$ |
38,677 |
|
2.86 |
% |
|
|
3,533,774 |
|
|
$ |
7,192 |
|
0.81 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-Bearing
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand
deposits |
|
3,695,592 |
|
|
|
|
|
|
|
3,779,594 |
|
|
|
|
|
|
|
2,424,884 |
|
|
|
|
|
Other liabilities |
|
86,389 |
|
|
|
|
|
|
|
78,411 |
|
|
|
|
|
|
|
41,792 |
|
|
|
|
|
Total liabilities |
|
9,270,286 |
|
|
|
|
|
|
|
9,281,665 |
|
|
|
|
|
|
|
6,000,450 |
|
|
|
|
|
Shareholders' equity |
|
1,471,009 |
|
|
|
|
|
|
|
1,458,473 |
|
|
|
|
|
|
|
717,436 |
|
|
|
|
|
Total liabilities and shareholders' equity |
$ |
10,741,295 |
|
|
|
|
|
|
$ |
10,740,138 |
|
|
|
|
|
|
$ |
6,717,886 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest rate spread |
|
|
|
|
2.97 |
% |
|
|
|
|
|
3.22 |
% |
|
|
|
|
|
3.45 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income and
margin |
|
|
$ |
106,721 |
|
4.37 |
% |
|
|
|
$ |
108,281 |
|
4.48 |
% |
|
|
|
$ |
60,690 |
|
3.81 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income and net
interest margin (tax equivalent) |
|
|
$ |
106,919 |
|
4.37 |
% |
|
|
|
$ |
108,509 |
|
4.49 |
% |
|
|
|
$ |
61,418 |
|
3.85 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of funds |
|
|
|
|
1.92 |
% |
|
|
|
|
|
1.69 |
% |
|
|
|
|
|
0.48 |
% |
Cost of deposits |
|
|
|
|
1.69 |
% |
|
|
|
|
|
1.41 |
% |
|
|
|
|
|
0.36 |
% |
Stellar Bancorp, Inc.Financial
Highlights(Unaudited) |
|
Nine Months Ended September 30, |
|
|
2023 |
|
|
|
2022 |
|
|
Average Balance |
|
Interest Earned/ Interest
Paid |
|
Average Yield/ Rate |
|
Average Balance |
|
Interest Earned/ Interest
Paid |
|
Average Yield/Rate |
|
(Dollars in thousands) |
Assets |
|
|
|
|
|
|
|
|
|
|
|
Interest-Earning Assets: |
|
|
|
|
|
|
|
|
|
|
|
Loans |
$ |
7,957,911 |
|
|
$ |
398,608 |
|
6.70 |
% |
|
$ |
4,331,288 |
|
|
$ |
164,230 |
|
5.07 |
% |
Securities |
|
1,525,808 |
|
|
|
31,007 |
|
2.72 |
% |
|
|
1,774,149 |
|
|
|
24,970 |
|
1.88 |
% |
Deposits in other financial
institutions |
|
251,475 |
|
|
|
9,027 |
|
4.80 |
% |
|
|
498,456 |
|
|
|
1,825 |
|
0.49 |
% |
Total interest-earning assets |
|
9,735,194 |
|
|
$ |
438,642 |
|
6.02 |
% |
|
|
6,603,893 |
|
|
$ |
191,025 |
|
3.87 |
% |
Allowance for credit losses on
loans |
|
(96,570 |
) |
|
|
|
|
|
|
(49,422 |
) |
|
|
|
|
Noninterest-earning assets |
|
1,148,847 |
|
|
|
|
|
|
|
441,767 |
|
|
|
|
|
Total assets |
$ |
10,787,471 |
|
|
|
|
|
|
$ |
6,996,238 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
Interest-Bearing
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand
deposits |
$ |
1,478,547 |
|
|
$ |
28,141 |
|
2.54 |
% |
|
$ |
1,031,006 |
|
|
$ |
3,856 |
|
0.50 |
% |
Money market and savings
deposits |
|
2,291,588 |
|
|
|
34,161 |
|
1.99 |
% |
|
|
1,549,969 |
|
|
|
2,877 |
|
0.25 |
% |
Certificates and other time
deposits |
|
1,164,572 |
|
|
|
26,211 |
|
3.01 |
% |
|
|
1,069,011 |
|
|
|
5,742 |
|
0.72 |
% |
Borrowed funds |
|
333,220 |
|
|
|
13,653 |
|
5.48 |
% |
|
|
69,492 |
|
|
|
799 |
|
1.54 |
% |
Subordinated debt |
|
109,508 |
|
|
|
5,647 |
|
6.89 |
% |
|
|
109,046 |
|
|
|
4,407 |
|
5.40 |
% |
Total interest-bearing liabilities |
|
5,377,435 |
|
|
$ |
107,813 |
|
2.68 |
% |
|
|
3,828,524 |
|
|
|
17,681 |
|
0.62 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-Bearing
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand
deposits |
|
3,878,760 |
|
|
|
|
|
|
|
2,373,489 |
|
|
|
|
|
Other liabilities |
|
81,894 |
|
|
|
|
|
|
|
39,123 |
|
|
|
|
|
Total liabilities |
|
9,338,089 |
|
|
|
|
|
|
|
6,241,136 |
|
|
|
|
|
Shareholders' equity |
|
1,449,382 |
|
|
|
|
|
|
|
755,102 |
|
|
|
|
|
Total liabilities and shareholders' equity |
$ |
10,787,471 |
|
|
|
|
|
|
$ |
6,996,238 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest rate spread |
|
|
|
|
3.34 |
% |
|
|
|
|
|
3.25 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income and
margin |
|
|
$ |
330,829 |
|
4.54 |
% |
|
|
|
$ |
173,344 |
|
3.51 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income and net
interest margin (tax equivalent) |
|
|
$ |
331,549 |
|
4.55 |
% |
|
|
|
$ |
175,578 |
|
3.55 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of funds |
|
|
|
|
1.56 |
% |
|
|
|
|
|
0.38 |
% |
Cost of deposits |
|
|
|
|
1.34 |
% |
|
|
|
|
|
0.28 |
% |
Stellar Bancorp, Inc.Financial
Highlights(Unaudited) |
|
Three Months Ended |
|
|
2023 |
|
|
|
2022 |
|
|
September 30 |
|
June 30 |
|
March 31 |
|
December 31 |
|
September 30 |
|
(Dollars in thousands) |
Period-end Loan
Portfolio: |
|
|
|
|
|
|
|
|
|
Commercial and industrial |
$ |
1,474,600 |
|
|
$ |
1,512,476 |
|
|
$ |
1,477,340 |
|
|
$ |
1,455,795 |
|
|
$ |
732,636 |
|
Paycheck Protection Program
(PPP) |
|
5,968 |
|
|
|
8,027 |
|
|
|
11,081 |
|
|
|
13,226 |
|
|
|
17,827 |
|
Real estate: |
|
|
|
|
|
|
|
|
|
Commercial real estate (including multi-family residential) |
|
4,076,606 |
|
|
|
4,038,487 |
|
|
|
4,014,609 |
|
|
|
3,931,480 |
|
|
|
2,407,039 |
|
Commercial real estate construction and land development |
|
1,078,265 |
|
|
|
1,136,124 |
|
|
|
1,034,538 |
|
|
|
1,037,678 |
|
|
|
513,248 |
|
1-4 family residential (including home equity) |
|
1,024,945 |
|
|
|
1,009,439 |
|
|
|
1,008,362 |
|
|
|
1,000,956 |
|
|
|
699,636 |
|
Residential construction |
|
289,553 |
|
|
|
311,208 |
|
|
|
292,143 |
|
|
|
268,150 |
|
|
|
183,563 |
|
Consumer and other |
|
54,591 |
|
|
|
52,957 |
|
|
|
47,971 |
|
|
|
47,466 |
|
|
|
37,963 |
|
Total loans held for investment |
$ |
8,004,528 |
|
|
$ |
8,068,718 |
|
|
$ |
7,886,044 |
|
|
$ |
7,754,751 |
|
|
$ |
4,591,912 |
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
Noninterest-bearing |
$ |
3,656,288 |
|
|
$ |
3,713,536 |
|
|
$ |
3,877,859 |
|
|
$ |
4,230,169 |
|
|
$ |
2,465,839 |
|
Interest-bearing |
|
|
|
|
|
|
|
|
|
Demand |
|
1,397,492 |
|
|
|
1,437,509 |
|
|
|
1,394,244 |
|
|
|
1,591,828 |
|
|
|
956,920 |
|
Money market and savings |
|
2,128,950 |
|
|
|
2,174,073 |
|
|
|
2,401,840 |
|
|
|
2,575,923 |
|
|
|
1,471,690 |
|
Certificates and other time |
|
1,503,891 |
|
|
|
1,441,251 |
|
|
|
1,064,932 |
|
|
|
869,712 |
|
|
|
766,270 |
|
Total interest-bearing deposits |
|
5,030,333 |
|
|
|
5,052,833 |
|
|
|
4,861,016 |
|
|
|
5,037,463 |
|
|
|
3,194,880 |
|
Total deposits |
$ |
8,686,621 |
|
|
$ |
8,766,369 |
|
|
$ |
8,738,875 |
|
|
$ |
9,267,632 |
|
|
$ |
5,660,719 |
|
|
|
|
|
|
|
|
|
|
|
Asset
Quality: |
|
|
|
|
|
|
|
|
|
Nonaccrual loans |
$ |
38,291 |
|
|
$ |
43,349 |
|
|
$ |
43,413 |
|
|
$ |
45,048 |
|
|
$ |
21,551 |
|
Accruing loans 90 or more days
past due |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total nonperforming loans |
|
38,291 |
|
|
|
43,349 |
|
|
|
43,413 |
|
|
|
45,048 |
|
|
|
21,551 |
|
Other repossessed assets |
|
— |
|
|
|
— |
|
|
|
124 |
|
|
|
— |
|
|
|
— |
|
Total nonperforming assets |
$ |
38,291 |
|
|
$ |
43,349 |
|
|
$ |
43,537 |
|
|
$ |
45,048 |
|
|
$ |
21,551 |
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs
(recoveries) |
$ |
8,116 |
|
|
$ |
236 |
|
|
$ |
192 |
|
|
$ |
5,707 |
|
|
$ |
(245 |
) |
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans: |
|
|
|
|
|
|
|
|
|
Commercial and industrial |
$ |
14,991 |
|
|
$ |
22,968 |
|
|
$ |
23,329 |
|
|
$ |
25,402 |
|
|
$ |
6,916 |
|
Real estate: |
|
|
|
|
|
|
|
|
|
Commercial real estate (including multi-family residential) |
|
13,563 |
|
|
|
8,221 |
|
|
|
9,026 |
|
|
|
9,970 |
|
|
|
10,392 |
|
Commercial real estate construction and land development |
|
170 |
|
|
|
388 |
|
|
|
27 |
|
|
|
— |
|
|
|
241 |
|
1-4 family residential (including home equity) |
|
8,442 |
|
|
|
10,880 |
|
|
|
10,586 |
|
|
|
9,404 |
|
|
|
3,854 |
|
Residential construction |
|
635 |
|
|
|
665 |
|
|
|
195 |
|
|
|
— |
|
|
|
— |
|
Consumer and other |
|
490 |
|
|
|
227 |
|
|
|
250 |
|
|
|
272 |
|
|
|
148 |
|
Total nonaccrual loans |
$ |
38,291 |
|
|
$ |
43,349 |
|
|
$ |
43,413 |
|
|
$ |
45,048 |
|
|
$ |
21,551 |
|
|
|
|
|
|
|
|
|
|
|
Asset Quality
Ratios: |
|
|
|
|
|
|
|
|
|
Nonperforming assets to total
assets |
|
0.36 |
% |
|
|
0.40 |
% |
|
|
0.41 |
% |
|
|
0.41 |
% |
|
|
0.32 |
% |
Nonperforming loans to total
loans |
|
0.48 |
% |
|
|
0.54 |
% |
|
|
0.55 |
% |
|
|
0.58 |
% |
|
|
0.47 |
% |
Allowance for credit losses on
loans to nonperforming loans |
|
244.38 |
% |
|
|
231.14 |
% |
|
|
221.56 |
% |
|
|
206.85 |
% |
|
|
241.97 |
% |
Allowance for credit losses on
loans to total loans |
|
1.17 |
% |
|
|
1.24 |
% |
|
|
1.22 |
% |
|
|
1.20 |
% |
|
|
1.14 |
% |
Net charge-offs (recoveries)
to average loans (annualized) |
|
0.40 |
% |
|
|
0.01 |
% |
|
|
0.01 |
% |
|
|
0.30 |
% |
|
|
(0.02 |
%) |
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.
Stellar Bancorp, Inc.GAAP Reconciliation
and Management’s Explanation of Non-GAAP Financial
Measures(Unaudited) |
|
Three Months Ended |
|
Nine Months Ended |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
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 |
$ |
30,908 |
|
|
$ |
35,175 |
|
|
$ |
37,148 |
|
|
$ |
2,052 |
|
|
$ |
14,286 |
|
|
$ |
103,231 |
|
|
$ |
49,380 |
|
Add: Provision for credit
losses |
|
2,315 |
|
|
|
1,915 |
|
|
|
3,666 |
|
|
|
44,793 |
|
|
|
1,962 |
|
|
|
7,896 |
|
|
|
5,919 |
|
Add: Provision for income
taxes |
|
7,445 |
|
|
|
7,467 |
|
|
|
9,913 |
|
|
|
(218 |
) |
|
|
3,406 |
|
|
|
24,825 |
|
|
|
11,310 |
|
Pre-tax, pre-provision
income |
$ |
40,668 |
|
|
$ |
44,557 |
|
|
$ |
50,727 |
|
|
$ |
46,627 |
|
|
$ |
19,654 |
|
|
$ |
135,952 |
|
|
$ |
66,609 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total average assets |
$ |
10,741,295 |
|
|
$ |
10,740,138 |
|
|
$ |
10,882,533 |
|
|
$ |
10,946,009 |
|
|
$ |
6,717,886 |
|
|
$ |
10,787,471 |
|
|
$ |
6,996,238 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax, pre-provision
return on average assets(B) |
|
1.50 |
% |
|
|
1.66 |
% |
|
|
1.89 |
% |
|
|
1.69 |
% |
|
|
1.16 |
% |
|
|
1.68 |
% |
|
|
1.27 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax, pre-provision
income |
$ |
40,668 |
|
|
$ |
44,557 |
|
|
$ |
50,727 |
|
|
$ |
46,627 |
|
|
$ |
19,654 |
|
|
$ |
135,952 |
|
|
$ |
66,609 |
|
Add: Acquisition and
merger-related expenses |
|
3,421 |
|
|
|
2,897 |
|
|
|
6,165 |
|
|
|
11,469 |
|
|
|
10,551 |
|
|
|
12,483 |
|
|
|
12,669 |
|
Add: Amortization of
intangibles |
|
6,876 |
|
|
|
6,881 |
|
|
|
6,879 |
|
|
|
7,051 |
|
|
|
750 |
|
|
|
20,636 |
|
|
|
2,252 |
|
Less: Purchase accounting
accretion |
|
12,400 |
|
|
|
12,572 |
|
|
|
10,104 |
|
|
|
8,160 |
|
|
|
40 |
|
|
|
35,076 |
|
|
|
210 |
|
Less: (Loss) gain on sale of
assets |
|
— |
|
|
|
(6 |
) |
|
|
198 |
|
|
|
4,025 |
|
|
|
42 |
|
|
|
192 |
|
|
|
25 |
|
Adjusted pre-tax,
pre-provision income |
$ |
38,565 |
|
|
$ |
41,769 |
|
|
$ |
53,469 |
|
|
$ |
52,962 |
|
|
$ |
30,873 |
|
|
$ |
133,803 |
|
|
$ |
81,295 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted pre-tax,
pre-provision return on average
assets(B) |
|
1.42 |
% |
|
|
1.56 |
% |
|
|
1.99 |
% |
|
|
1.92 |
% |
|
|
1.82 |
% |
|
|
1.66 |
% |
|
|
1.55 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total noninterest expense |
$ |
70,748 |
|
|
$ |
69,207 |
|
|
$ |
72,598 |
|
|
$ |
79,624 |
|
|
$ |
44,031 |
|
|
$ |
212,553 |
|
|
$ |
116,452 |
|
Less: Acquisition and
merger-related expenses |
|
3,421 |
|
|
|
2,897 |
|
|
|
6,165 |
|
|
|
11,469 |
|
|
|
10,551 |
|
|
|
12,483 |
|
|
|
12,669 |
|
Less: Amortization of
intangibles |
|
6,876 |
|
|
|
6,881 |
|
|
|
6,879 |
|
|
|
7,051 |
|
|
|
750 |
|
|
|
20,636 |
|
|
|
2,252 |
|
Net interest income |
|
106,721 |
|
|
|
108,281 |
|
|
|
115,827 |
|
|
|
115,614 |
|
|
|
60,690 |
|
|
|
330,829 |
|
|
|
173,344 |
|
Less: Purchase accounting
accretion |
|
12,400 |
|
|
|
12,572 |
|
|
|
10,104 |
|
|
|
8,160 |
|
|
|
40 |
|
|
|
35,076 |
|
|
|
210 |
|
Total noninterest income |
|
4,695 |
|
|
|
5,483 |
|
|
|
7,498 |
|
|
|
10,637 |
|
|
|
2,995 |
|
|
|
17,676 |
|
|
|
9,717 |
|
Less: (Loss) gain on sale of
assets |
|
— |
|
|
|
(6 |
) |
|
|
198 |
|
|
|
4,025 |
|
|
|
42 |
|
|
|
192 |
|
|
|
25 |
|
Adjusted efficiency
ratio(A) |
|
61.05 |
% |
|
|
58.73 |
% |
|
|
52.69 |
% |
|
|
53.57 |
% |
|
|
51.46 |
% |
|
|
57.28 |
% |
|
|
55.53 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders'
equity |
$ |
1,460,846 |
|
|
$ |
1,458,680 |
|
|
$ |
1,446,216 |
|
|
$ |
1,383,176 |
|
|
$ |
656,302 |
|
|
$ |
1,460,846 |
|
|
$ |
656,302 |
|
Less: Goodwill and core
deposit intangibles, net |
|
620,262 |
|
|
|
627,065 |
|
|
|
633,925 |
|
|
|
640,785 |
|
|
|
236,048 |
|
|
|
620,262 |
|
|
|
236,048 |
|
Tangible shareholders’
equity |
$ |
840,584 |
|
|
$ |
831,615 |
|
|
$ |
812,291 |
|
|
$ |
742,391 |
|
|
$ |
420,254 |
|
|
$ |
840,584 |
|
|
$ |
420,254 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares outstanding at end of
period |
|
53,322 |
|
|
|
53,303 |
|
|
|
53,296 |
|
|
|
52,955 |
|
|
|
28,137 |
|
|
|
53,322 |
|
|
|
28,137 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible book value
per share |
$ |
15.76 |
|
|
$ |
15.60 |
|
|
$ |
15.24 |
|
|
$ |
14.02 |
|
|
$ |
14.94 |
|
|
$ |
15.76 |
|
|
$ |
14.94 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shareholders'
equity |
$ |
1,471,009 |
|
|
$ |
1,458,473 |
|
|
$ |
1,418,082 |
|
|
$ |
1,347,938 |
|
|
$ |
717,436 |
|
|
$ |
1,449,382 |
|
|
$ |
755,102 |
|
Less: Average goodwill
and core deposit intangibles, net |
|
623,864 |
|
|
|
630,854 |
|
|
|
638,110 |
|
|
|
658,107 |
|
|
|
236,399 |
|
|
|
630,890 |
|
|
|
237,153 |
|
Average tangible shareholders’
equity |
$ |
847,145 |
|
|
$ |
827,619 |
|
|
$ |
779,972 |
|
|
$ |
689,831 |
|
|
$ |
481,037 |
|
|
$ |
818,492 |
|
|
$ |
517,949 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
tangible equity(B) |
|
14.47 |
% |
|
|
17.05 |
% |
|
|
19.32 |
% |
|
|
1.18 |
% |
|
|
11.78 |
% |
|
|
16.86 |
% |
|
|
12.75 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
10,665,460 |
|
|
$ |
10,778,351 |
|
|
$ |
10,604,718 |
|
|
$ |
10,900,437 |
|
|
$ |
6,730,342 |
|
|
$ |
10,665,460 |
|
|
$ |
6,730,342 |
|
Less: Goodwill and core
deposit intangibles, net |
|
620,262 |
|
|
|
627,065 |
|
|
|
633,925 |
|
|
|
640,785 |
|
|
|
236,048 |
|
|
|
620,262 |
|
|
|
236,048 |
|
Tangible
assets |
$ |
10,045,198 |
|
|
$ |
10,151,286 |
|
|
$ |
9,970,793 |
|
|
$ |
10,259,652 |
|
|
$ |
6,494,294 |
|
|
$ |
10,045,198 |
|
|
$ |
6,494,294 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible equity to
tangible assets |
|
8.37 |
% |
|
|
8.19 |
% |
|
|
8.15 |
% |
|
|
7.24 |
% |
|
|
6.47 |
% |
|
|
8.37 |
% |
|
|
6.47 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (tax
equivalent) |
$ |
106,919 |
|
|
$ |
108,509 |
|
|
$ |
116,119 |
|
|
$ |
116,574 |
|
|
$ |
61,418 |
|
|
$ |
331,549 |
|
|
$ |
175,578 |
|
Less: Purchase accounting
accretion |
|
12,400 |
|
|
|
12,572 |
|
|
|
10,104 |
|
|
|
8,160 |
|
|
|
40 |
|
|
|
35,076 |
|
|
|
210 |
|
Adjusted net interest
income (tax equivalent) |
$ |
94,519 |
|
|
$ |
95,937 |
|
|
$ |
106,015 |
|
|
$ |
108,414 |
|
|
$ |
61,378 |
|
|
$ |
296,473 |
|
|
$ |
175,368 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average earning assets |
$ |
9,697,553 |
|
|
$ |
9,693,527 |
|
|
$ |
9,815,803 |
|
|
$ |
9,815,701 |
|
|
$ |
6,325,984 |
|
|
$ |
9,735,194 |
|
|
$ |
6,603,893 |
|
Net interest margin
(tax equivalent) excluding PAA |
|
3.87 |
% |
|
|
3.97 |
% |
|
|
4.38 |
% |
|
|
4.38 |
% |
|
|
3.85 |
% |
|
|
4.07 |
% |
|
|
3.55 |
% |
(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. |
Stellar Bancorp (NYSE:STEL)
Graphique Historique de l'Action
De Août 2024 à Sept 2024
Stellar Bancorp (NYSE:STEL)
Graphique Historique de l'Action
De Sept 2023 à Sept 2024