Capital allocation remains inconsistent, evidenced by quarterly share buybacks that have swung from zero to as much as $39.4 million in recent periods.
| Cash from Operations | 119.19M | 97M | 132.62M | 168.22M | 109.07M | 107.38M | 61.06M | 56.09M | 49.32M | 35.59M | 36.04M | 32.83M |
| Operating CF Growth % | 608.06% | -26.86% | -21.16% | 54.23% | 1.57% | 75.85% | 8.87% | 13.72% | 38.58% | -1.25% | 9.77% | - |
| Net Income | 105.14M | 102.87M | 115M | 130.5M | 51.43M | 81.55M | 45.53M | 50.52M | 47.29M | 27.57M | 27.21M | 24.14M |
| Depreciation & Amortization | 30.25M | 29.64M | 32.03M | 34.47M | 14.25M | 7.55M | 7.64M | 5.44M | 4.29M | 4.43M | 4.43M | 4.95M |
| Deferred Taxes | -1.86M | -1.74M | 3.3M | 10.25M | 1.93M | 2.78M | -7.06M | -1.66M | -734K | 2.93M | 601K | -1.66M |
| Other Non-Cash Items | 918K | -11.62M | -34.13M | -35.12M | 43.37M | 5.33M | 31.21M | -1.57M | -3.19M | -1.86M | 2.58M | 4.79M |
| Working Capital Changes | -24.39M | -31.3M | 5.66M | 18.18M | -10.96M | 6.18M | -19.68M | 956K | 65K | 2.18M | 1.19M | 617K |
| Cash from Investing | -463.77M | -348.22M | 246.09M | 295.25M | 73.76M | -754.82M | -961.1M | -189.74M | -147.72M | -185.43M | -131.57M | -88.66M |
| Purchase of Investments | -6.11B | -6.39B | -5.54B | -4.09B | -2.45B | -4.32B | -4.36B | -655.59M | -496.67M | -355.69M | -406.23M | -385.05M |
| Sale/Maturity of Investments | 5.99B | 5.93B | 5.24B | 4.53B | 2.72B | 3.29B | 4B | 656.28M | 484.8M | 337.98M | 341.46M | 332.01M |
| Net Investment Activity | -123.86M | -456.01M | -292.33M | 436.61M | 271.56M | -1.03B | -365.16M | 684K | -11.87M | -17.71M | -64.77M | -53.03M |
| Acquisitions | 0 | 0 | 0 | 0 | 370.45M | 0 | 0 | 0 | 0 | 0 | 0 | -5.94M |
| Other Investing | -338.64M | 112.19M | 543.08M | -134.5M | -564.43M | 277.64M | -588.77M | -187.94M | -134.56M | -166.73M | -64.92M | -26.9M |
| Cash from Financing | 333.58M | -240.55M | 133.27M | -435.94M | -568.63M | 982.19M | 976.56M | 123.64M | 154.27M | 93.94M | 42.73M | -17K |
| Dividends Paid | -20.38M | -29.3M | -28.31M | -27.7M | -15.38M | -9.7M | -9.96M | -8.76M | -4.98M | -4.41M | -4.39M | -4.49M |
| Share Repurchases | -72.83M | -73.35M | -2.84M | -76K | -23.61M | -5.66M | -18.58M | -3K | 0 | 0 | -11.08M | -4.42M |
| Stock Issued | -801K | -980K | 0 | 0 | 77K | 0 | 2.57M | 0 | 0 | 71.76M | 0 | 0 |
| Net Stock Activity | -73.63M | -74.33M | -2.84M | -76K | -23.53M | -5.66M | -16.01M | -3K | 0 | 71.76M | -11.08M | -4.42M |
| Debt Issuance (Net) | -3M | -1000K | -1000K | -1000K | -1000K | -1000K | -485K | 1000K | 0 | -1000K | -1000K | 1000K |
| Other Financing | 573.41M | -106.92M | 254.42M | -394.24M | -503.65M | 1.06B | 1B | 82.4M | 159.25M | 54.27M | 61.53M | -15M |
| Net Change in Cash | -11.01M | -491.76M | 511.98M | 27.53M | -385.8M | 334.74M | 76.52M | -10.01M | 55.87M | -55.9M | -52.8M | -55.85M |
| Exchange Rate Effect | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash at Beginning | 419.45M | 911.22M | 399.24M | 371.7M | 757.51M | 422.77M | 346.25M | 382.07M | 326.2M | 382.1M | 434.9M | 490.75M |
| Cash at End | 549.57M | 419.45M | 911.22M | 399.24M | 371.7M | 757.51M | 422.77M | 372.06M | 382.07M | 326.2M | 382.1M | 434.9M |
| Interest Paid | 89.56M | 184.39M | 188.64M | 144.87M | 33.69M | 25.57M | 40.7M | 17.04M | 10.8M | 9.09M | 8.37M | 7.43M |
| Income Taxes Paid | 18.5M | 18.5M | 27.4M | 14M | 15.05M | 19.25M | 15.1M | 13.71M | 11.63M | 13.75M | 11.39M | 11.05M |
| Free Cash Flow | 117.92M | 92.61M | 127.96M | 161.36M | 105.25M | 104.45M | 53.88M | 53.6M | 48.03M | 35.59M | 36.04M | 30.04M |
| FCF Growth % | 29.62% | -27.63% | -20.7% | 53.3% | 0.77% | 93.85% | 0.52% | 11.61% | 34.95% | -1.25% | 19.96% | - |
CRE concentration and funding
According to recent SEC filings, Stellar Bancorp's net income has remained remarkably consistent, averaging approximately $26 million per quarter, which provides a stable, albeit modest, foundation for organic capital generation despite the broader revenue contraction observed in the bank's recent quarterly financial performance reports.
The bank's ability to maintain steady net income suggests that core operations are resilient, even if they are not currently driving significant growth. Investors should monitor whether this internal capital generation remains sufficient to support the bank's risk-weighted asset growth without necessitating external capital raises.
As reported in financial statements, Stellar Bancorp exhibits an unusually high level of investment securities activity, with quarterly purchases and sales frequently exceeding $1 billion, suggesting an active management strategy that may be intended to optimize yield or manage duration in a volatile rate environment.
This high turnover rate warrants further investigation into the realized gains or losses embedded within these transactions, as they may be masking underlying volatility in the bank's core interest-earning asset base. Such frequent portfolio rebalancing appears to be a primary driver of the bank's cash flow fluctuations.
Based on the company's reported figures, capital return to shareholders has been inconsistent, with buybacks fluctuating significantly from zero to nearly $40 million in a single quarter, indicating that management prioritizes capital flexibility over a predictable or programmatic return of excess capital to its shareholders.
The variability in buyback activity suggests that management may be timing repurchases based on perceived valuation discounts or internal capital needs rather than a fixed payout policy. This approach may leave investors uncertain regarding the long-term sustainability of total capital returns in periods of economic stress.
As evidenced by the significant swing in provision expense from a $39.2 million charge in 2026Q1 to a $6 million credit in 2024Q3, Stellar Bancorp's credit cost management appears highly reactive to shifting economic expectations within its concentrated Southeast Texas commercial real estate portfolio.
These large swings in provisioning suggest that the bank is actively adjusting its reserve levels to account for potential credit migration in its CRE book. Analysts should interpret these movements as a signal of management's evolving outlook on regional asset quality rather than a reflection of realized losses.
Quick answers to the most common questions about buying STEL stock.
Stellar Bancorp, Inc. (STEL) generated $97.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Stellar Bancorp, Inc. (STEL) generated $92.6M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Stellar Bancorp, Inc. (STEL) spent $4.4M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Stellar Bancorp, Inc. (STEL) returned $29.3M to shareholders via cash dividends and spent $73.4M on share repurchases. This shows the company's commitment to returning capital to its equity investors.