Revenue: As of FY2026 Q1, the actual value is USD 150.21 M.EPS: As of FY2026 Q1, the actual value is USD 0.53, beating the estimate of USD 0.5.EBIT: As of FY2026 Q1, the actual value is USD -72.55 M.Stellar Bancorp, Inc. operates as one reportable operating segment, providing commercial banking services primarily to small-to medium-sized businesses, professionals, and individuals through 52 banking centers in the Houston, Beaumont, and Dallas MSAs.<h4>Operational Metrics</h4><ul><li>Net Income: Increased to $26,966 thousand for the three months ended March 31, 2026, from $24,702 thousand for the same period in 2025.</li><li>Net Interest Income: Increased by $6,700 thousand, or 6.7%, to $105,931 thousand for the three months ended March 31, 2026, compared to $99,258 thousand for the three months ended March 31, 2025, driven primarily by an increase in average securities and a decrease in interest expense due to lower rates on interest-bearing liabilities.</li><li>Interest Income: Total interest income was $145,095 thousand for the three months ended March 31, 2026, an increase of $2,775 thousand, or 1.9%, from $142,320 thousand for the same period in 2025, mainly due to an increase in average securities and the yield on securities, partially offset by a decrease in the yield on loans and deposits in other financial institutions.</li><li>Interest Expense: Decreased by $3,900 thousand, or 9.1%, to $39,164 thousand for the three months ended March 31, 2026, from $43,062 thousand for the same period in 2025, primarily due to lower interest rates, a decrease in higher-rate certificates and time deposits, and a decrease in average borrowed funds and subordinated debt.</li><li>Net Interest Margin (Tax Equivalent): Was 4.24% for the three months ended March 31, 2026, an increase of 4 basis points from 4.20% for the three months ended March 31, 2025.</li><li>Noninterest Income: Decreased by $395 thousand, or -7.2%, to $5,110 thousand for the three months ended March 31, 2026, from $5,505 thousand for the same period in 2025, mainly due to a net loss of - $37 thousand on the sale/write-down of assets in Q1 2026, compared to a net gain of $417 thousand in Q1 2025.</li><li>Noninterest Expense: Increased by $4,998 thousand, or 7.1%, to $75,164 thousand for the three months ended March 31, 2026, from $70,166 thousand for the same period in 2025, driven by $3,307 thousand in acquisition and merger-related expenses and increases in annual salaries and employee benefits, partially offset by decreases in professional fees and amortization of intangibles.</li><li>Provision for Credit Losses: Was $2,497 thousand for the three months ended March 31, 2026, compared to $3,632 thousand for the same period in 2025, primarily due to an increase in loan balances and specific reserves in Q1 2026.</li><li>Efficiency Ratio: Was 63.27% for the three months ended March 31, 2026, compared to 61.93% for the three months ended March 31, 2025.</li></ul><h4>Loan Portfolio (as of March 31, 2026)</h4><ul><li>Total Loans: $7,587,952 thousand, an increase of $287,400 thousand (3.9%) from December 31, 2025.<ul><li>Commercial and industrial: $1,563,421 thousand (20.6% of total loans), an increase of $86,900 thousand (5.9%) from December 31, 2025.</li><li>Commercial real estate (including multi-family residential): $3,844,629 thousand (50.7% of total loans), an increase of $78,300 thousand (2.1%) from December 31, 2025, with owner-occupied commercial real estate loans representing 47.2% and including $289,500 thousand in multi-family community development loans with tax credits.</li><li>Commercial real estate construction and land development: $821,723 thousand (10.8% of total loans), an increase of $100,900 thousand (14.0%) from December 31, 2025, with owner-occupied construction loans at 18.3% and including $111,300 thousand of construction and development loans to support multi-family community development loans with tax credits.</li><li>1-4 family residential (including home equity): $1,167,436 thousand (15.4% of total loans), an increase of $31,200 thousand (2.7%) from December 31, 2025.</li><li>Residential construction: $102,609 thousand (1.3% of total loans), a decrease of - $22,000 thousand (-17.7%) from December 31, 2025.</li><li>Consumer and other: $88,134 thousand (1.2% of total loans), an increase of $12,100 thousand (15.8%) from December 31, 2025.</li></ul></li></ul><h4>Asset Quality (as of March 31, 2026)</h4><ul><li>Nonperforming assets: Totaled $70,079 thousand (0.64% of total assets), compared to $60,040 thousand (0.56% of total assets) at December 31, 2025.</li><li>Nonaccrual loans: Totaled $60,590 thousand, compared to $52,548 thousand at December 31, 2025.</li><li>Allowance for credit losses on loans: $85,431 thousand (1.13% of total loans), compared to $83,629 thousand (1.15% of total loans) at December 31, 2025.</li><li>Allowance for credit losses on unfunded commitments: Decreased to $15,500 thousand, compared to $16,200 thousand at December 31, 2025, primarily due to a decrease in unfunded commitments.</li></ul><h4>Securities Portfolio (as of March 31, 2026)</h4><ul><li>Available for sale securities (fair value): $1,864,710 thousand, a decrease of - $333,700 thousand (-15.2%) from $2,198,459 thousand at December 31, 2025.</li><li>Unrealized losses: - $117,944 thousand, compared to - $102,918 thousand at December 31, 2025, primarily due to increases in market interest rates.</li><li>Pledged securities: $1.86 billion, compared to $828.5 million at December 31, 2025.</li></ul><h4>Deposits (as of March 31, 2026)</h4><ul><li>Total deposits: $8,982,010 thousand, a decrease of - $39,500 thousand (-0.4%) from $9,021,466 thousand at December 31, 2025, driven by seasonality, industry-wide pressures, and pricing discipline.</li><li>Noninterest-bearing deposits: $3,210,579 thousand, a decrease of - $197,300 thousand (-5.8%) from $3,407,865 thousand at December 31, 2025.</li><li>Public funds: Totaled $1.30 billion (14.5% of total deposits), compared to $1.22 billion (13.6% of total deposits) at December 31, 2025.</li><li>Time deposits: Scheduled maturities for 2026 are $873,147 thousand.</li></ul><h4>Borrowings and Borrowing Capacity (as of March 31, 2026)</h4><ul><li>FHLB borrowing capacity: $3.17 billion, with $1.81 billion available, $1.23 billion outstanding in FHLB letters of credit, and $135,000 thousand outstanding in FHLB advances.</li><li>Revolving line of credit: $75,000 thousand with another financial institution, with no outstanding borrowings.</li></ul><h4>Capital Ratios (as of March 31, 2026)</h4><ul><li>Stellar Bancorp, Inc. (Consolidated): Total Capital to risk-weighted assets was 15.48%, Common Equity Tier 1 Capital to risk-weighted assets was 13.97%, Tier 1 Capital to risk-weighted assets was 14.09%, and Tier 1 Leverage to average tangible assets was 11.29%.</li><li>Stellar Bank: Total Capital to risk-weighted assets was 14.74%, Common Equity Tier 1 Capital to risk-weighted assets was 13.56%, Tier 1 Capital to risk-weighted assets was 13.56%, and Tier 1 Leverage to average tangible assets was 10.86%. Stellar Bank was categorized as well-capitalized.</li></ul><h4>Other Metrics (as of March 31, 2026)</h4><ul><li>Goodwill: $497,318 thousand at both March 31, 2026, and December 31, 2025.</li><li>Core deposit intangibles, net: $66,137 thousand, compared to $71,018 thousand at December 31, 2025. Estimated aggregate future amortization expense is $14,015 thousand for 2026 and $16,272 thousand for 2027.</li><li>Stock-based compensation expense: $2,000 thousand for both the three months ended March 31, 2026, and 2025.</li><li>Unrecognized compensation expense for restricted stock awards: $12,900 thousand, expected to be recognized over a weighted-average period of 2.34 years.</li><li>Unrecognized compensation expense for Performance Share Units (PSUs): $4,000 thousand, expected to be recognized over a weighted-average period of 2.23 years.</li><li>Commitments to extend credit: $2,064,820 thousand, compared to $2,102,646 thousand at December 31, 2025.</li><li>Standby letters of credit: $186,179 thousand, compared to $64,616 thousand at December 31, 2025.</li></ul><h4>Future Outlook and Strategy</h4>Stellar Bancorp, Inc. entered into a Merger Agreement with Prosperity Bancshares, Inc. on January 27, 2026, with the Merger expected to be completed on or about July 1, 2026, subject to shareholder approval and other closing conditions. The company aims to sustain revenue and earnings growth and benefit from its scalable operating platform.

Stellar Bancorp | 10-Q: FY2026 Q1 Revenue: USD 150.21 M