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Sep 30
Stellar Bancorp Q3 2025 Earnings Report
Stellar Bancorp reported solid Q3 2025 results, with stable earnings, improved net interest margin, and higher tangible book value.
Key Takeaways
Stellar Bancorp posted $25.7 million in net income for Q3 2025, with diluted EPS of $0.50. The net interest margin rose to 4.20% and return on average tangible equity reached 11.45%. Deposits and tangible book value per share also increased, while credit quality metrics remained stable.
Net income was $25.7 million with EPS of $0.50.
Net interest margin (tax equivalent) rose to 4.20%.
Tangible book value per share grew to $21.08.
Nonperforming assets declined to 0.51% of total assets.
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 remains confident in its market positioning and expects to benefit from continued deposit growth, a strengthened balance sheet, and opportunities from regional merger disruption.
Positive Outlook
- Net interest margin improved sequentially.
- Deposits increased by $143.8 million in Q3.
- Tangible book value per share rose to $21.08.
- Return on average tangible equity remained strong at 11.45%.
- Total capital ratio increased to 16.33%.
Challenges Ahead
- Noninterest expense rose due to higher compensation and professional fees.
- Efficiency ratio deteriorated to 63.69% from 61.87%.
- Net charge-offs increased to $3.3 million.
- Nonperforming loans remained elevated at $46.3 million.
- Loan portfolio declined by $119.5 million due to continued paydowns.