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Jun 30
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.
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 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.