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Stellar Bancorp Q1 2025 Earnings Report
Stellar Bancorp, Inc. reported its first quarter 2025 results, with a slight decrease in net income and diluted earnings per share compared to the previous quarter.
Key Takeaways
Stellar Bancorp, Inc. reported net income of $24.7 million and diluted earnings per share of $0.46 for the first quarter of 2025. The company saw a decrease in total assets due to seasonality in government deposits and a decrease in total loans. Noninterest income increased, primarily due to a gain on sales of assets, while noninterest expense decreased.
Net income for Q1 2025 was $24.7 million, a slight decrease from $25.2 million in Q4 2024.
Diluted earnings per share for Q1 2025 were $0.46, down from $0.47 in Q4 2024.
Total assets decreased by $470.9 million to $10.43 billion, largely due to seasonal government deposits.
Nonperforming assets increased to $59.7 million, or 0.57% of total assets, compared to $38.9 million in the prior quarter.
Stellar Bancorp
Stellar Bancorp
Stellar Bancorp Revenue by Segment
Revenue by Segment
Deposit Service Charges Revenue
CapyFin.comGain/Loss on Asset Sales Revenue
CapyFin.comBank-Owned Life Insurance Revenue
CapyFin.comCard Interchange Fees Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
Stellar Bancorp expects most of its growth to occur in the second half of the year, despite an encouraging start to the year. The company will continue to monitor the effects of tariffs on the economy and remain cautious about credit as pipelines build.
Positive Outlook
- Pipelines are building, indicating future growth opportunities.
- Interest rates are beginning to stabilize, which can provide a more predictable operating environment.
- The company operates in dynamic markets, offering potential for growth.
- The Stellar Team is recognized for their efforts in building the bank.
- New share repurchase program authorized for up to $65 million through May 31, 2026.
Challenges Ahead
- Uncertainty introduced by administration through tariffs.
- Payoffs from commercial real estate sales and refinances are impacting current growth.
- Need to remain cautious around credit as pipelines build.
- Most growth is expected in the second half of the year, implying slower growth in the near term.
- Regulatory guidance stabilization is a factor being monitored.