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Jun 30, 2025
Stellar Bancorp Q2 2025 Earnings Report
Stellar Bancorp reported solid Q2 2025 results with steady profitability and strong capital levels.
Key Takeaways
Stellar Bancorp delivered $26.4M in net income and maintained a strong net interest margin at 4.18%. Asset quality remained stable with low net charge-offs, while capital ratios improved slightly.
Net income reached $26.4M, with EPS at $0.51.
Net interest margin stood at 4.18%, reflecting strong lending performance.
Total risk-based capital ratio increased to 15.98%.
Nonperforming assets represented just 0.55% of total assets, indicating solid asset quality.
Revenue by Segment
Forward Guidance
Stellar Bancorp expects loan and deposit growth to continue, supported by strong pipelines in Texas markets.
Positive Outlook
- Strong loan origination pipelines building momentum.
- Core deposit growth supporting liquidity.
- Stable net interest margin outlook despite rate pressures.
- Improved capital ratios enhance financial flexibility.
- Houston economy expected to benefit from government spending.
Challenges Ahead
- Efficiency ratio remains elevated at over 61%.
- Asset quality still impacted by nonperforming loans at 0.69%.
- Allowance for credit losses coverage declined YoY.
- Deposit competition may pressure funding costs.
- Moderate decline in return on average equity compared to last year.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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