Revenue growth remains constrained as net interest income has stagnated between $98 million and $106 million over the last ten quarters, while the efficiency ratio fluctuates between 45% and 49%.
| Net Interest Income | 302.36M | 401.62M | 407.99M | 436.76M | 288.96M | 228.56M | 202.68M | 135.99M | 124.66M | 107.77M | 101.55M | 97.87M |
| NII Growth % | -103.47% | -1.56% | -6.59% | 51.15% | 26.42% | 12.77% | 49.04% | 9.09% | 15.67% | 6.13% | 3.75% | - |
| Net Interest Margin % | 2.78% | 3.72% | 3.74% | 4.1% | 2.65% | 3.22% | 5.13% | 3.91% | 3.8% | 3.5% | 3.44% | 3.4% |
| Interest Income | 432.15M | 574.47M | 602.4M | 590.82M | 322.99M | 253.18M | 241.76M | 153.4M | 135.76M | 116.66M | 109.95M | 105.53M |
| Interest Expense | 168.95M | 172.85M | 194.41M | 154.06M | 34.04M | 24.62M | 39.08M | 17.41M | 11.1M | 8.88M | 8.4M | 7.65M |
| Loan Loss Provision | -32.64M | 10.16M | -2.88M | 8.94M | 50.71M | -2.32M | 27.37M | 2.38M | -1.76M | -338K | 4.58M | 6.95M |
| Non-Interest Income | 161.38M | 21.79M | 23.05M | 24.56M | 20.35M | 8.56M | 8.16M | 17.16M | 12.98M | 12.56M | 13.71M | 12M |
| Non-Interest Income % | 27.19% | 3.65% | 3.68% | 3.99% | 5.93% | 3.27% | 3.26% | 10.06% | 8.72% | 9.72% | 11.09% | 10.21% |
| Total Revenue | 593.53M | 596.26M | 625.45M | 615.38M | 343.35M | 261.75M | 249.92M | 170.56M | 148.74M | 129.22M | 123.66M | 117.52M |
| Revenue Growth % | -16.03% | -4.67% | 1.64% | 79.23% | 31.18% | 4.73% | 46.53% | 14.67% | 15.1% | 4.5% | 5.22% | - |
| Non-Interest Expense | 216.99M | 285.47M | 288.96M | 290.49M | 196.08M | 139.55M | 127.49M | 88.68M | 80.74M | 76.65M | 71.46M | 67.99M |
| Efficiency Ratio | 36.56% | 47.88% | 46.2% | 47.21% | 57.11% | 53.32% | 51.01% | 51.99% | 54.28% | 59.32% | 57.79% | 57.85% |
| Operating Income | 130.2M | 127.78M | 144.96M | 161.88M | 62.52M | 99.89M | 55.97M | 62.09M | 58.65M | 44.02M | 39.22M | 34.93M |
| Operating Margin % | 21.94% | 21.43% | 23.18% | 26.31% | 18.21% | 38.16% | 22.4% | 36.4% | 39.43% | 34.07% | 31.71% | 29.72% |
| Operating Income Growth % | - | -11.85% | -10.45% | 158.92% | -37.41% | 78.47% | -9.85% | 5.86% | 33.23% | 12.25% | 12.29% | - |
| Pretax Income | 130.2M | 127.78M | 144.96M | 161.88M | 62.52M | 99.89M | 55.97M | 62.09M | 58.65M | 44.02M | 39.22M | 34.93M |
| Pretax Margin % | 21.94% | 21.43% | 23.18% | 26.31% | 18.21% | 38.16% | 22.4% | 36.4% | 39.43% | 34.07% | 31.71% | 29.72% |
| Income Tax | 25.06M | 24.91M | 29.96M | 31.39M | 11.09M | 18.34M | 10.44M | 11.57M | 11.36M | 16.45M | 12.01M | 10.79M |
| Effective Tax Rate % | 19.25% | 19.49% | 20.67% | 19.39% | 17.74% | 18.36% | 18.65% | 18.64% | 19.37% | 37.37% | 30.62% | 30.9% |
| 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 |
| Net Margin % | 17.71% | 17.25% | 18.39% | 21.21% | 14.98% | 31.16% | 18.22% | 29.62% | 31.79% | 21.34% | 22% | 20.54% |
| Net Income Growth % | -7.42% | -10.55% | -11.87% | 153.73% | -36.93% | 79.1% | -9.86% | 6.83% | 71.52% | 1.33% | 12.73% | - |
| Net Income (Continuing) | 105.14M | 102.87M | 115M | 130.5M | 51.43M | 81.55M | 45.53M | 50.52M | 47.29M | 27.57M | 27.21M | 24.14M |
| EPS (Diluted) | 2.06 | 1.99 | 2.15 | 2.45 | 1.47 | 2.82 | 1.06 | 2.02 | 1.89 | 1.22 | 1.22 | 1.08 |
| EPS Growth % | -3.3% | -7.44% | -12.24% | 66.67% | -47.87% | 166.04% | -47.52% | 6.88% | 54.92% | 0% | 12.96% | - |
| EPS (Basic) | - | 1.99 | 2.15 | 2.45 | 1.48 | 2.85 | 1.06 | 2.03 | 1.90 | 1.23 | 1.25 | 1.11 |
| Diluted Shares Outstanding | 51.14M | 51.8M | 53.58M | 53.31M | 35.01M | 28.87M | 29.14M | 25.05M | 25.02M | 22.57M | 22.33M | 22.33M |
CRE concentration and funding costs
As reported in recent financial statements, Stellar Bancorp's net interest income has remained largely range-bound between $98 million and $106 million over the last ten quarters, suggesting that the bank is struggling to expand its interest-earning asset base in the current competitive Texas banking environment.
The lack of meaningful NII growth indicates that the bank's loan production is likely being offset by the repricing of its deposit base. Investors should monitor whether the bank can achieve organic loan growth without further compressing its net interest spread.
Based on the provided quarterly data, Stellar Bancorp's net interest margin has consistently hovered near 0.9% to 1.0%, reflecting a structural inability to widen spreads despite the broader interest rate environment that has historically favored regional lenders with strong core deposit franchises.
This margin profile suggests that funding costs remain a significant headwind, potentially due to the bank's reliance on interest-bearing deposits to fund its commercial loan portfolio. The stability of this metric at such low levels warrants further investigation into the bank's deposit beta sensitivity.
According to the company's historical income statements, the efficiency ratio has fluctuated between 45% and 49%, indicating that the bank's operating expenses are consuming a substantial portion of its revenue, which may limit its ability to generate significant operating leverage in the near term.
The high fixed-cost structure inherent in maintaining a physical branch network in the Houston MSA appears to be a persistent drag on profitability. Management's ability to optimize this ratio will be critical as the bank moves past the integration phase of its recent merger.
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.
The volatility in these provisions suggests that the bank is actively adjusting its reserves to account for potential asset quality deterioration. Investors should closely monitor whether these provisions are sufficient to cover potential losses in the office and commercial segments of the Houston market.
Quick answers to the most common questions about buying STEL stock.
Stellar Bancorp, Inc. (STEL) is profitable, generating $102.9M in net income for the fiscal year ending 2025 with a net profit margin of 17.3%.
Stellar Bancorp, Inc. (STEL) reported an operating income of $127.8M, resulting in an operating profit margin of 21.4%. This margin reflects the operational efficiency of the business before interest and taxes.
Stellar Bancorp, Inc. (STEL) generated $413.3M in gross profit for the year, representing a gross profit margin of 69.3%. This demonstrates the company's core pricing power and production efficiency.