Stellar Bancorp Reports $26.4M Q2 Net Income

By Hao Liu • Friday, July 25 10:26 • Permanent Link

Stellar Bancorp, Inc. has reported its second quarter 2025 results, showing a net income of $26.4 million, or diluted earnings per share of $0.51. This represents an improvement from the first quarter of 2025, where the net income was $24.7 million, or diluted earnings per share of $0.46.

The annualized return on average assets saw an increase from the first quarter's 0.94% to 1.01% in the second quarter. Similarly, the annualized return on average equity rose from 6.21% to 6.62%, and the annualized return on average tangible equity increased from 11.48% to 12.16%.

However, net interest income for the second quarter of 2025 decreased to $98.3 million from $99.3 million in the first quarter. The net interest margin also saw a slight decrease from 4.20% to 4.18%, and excluding purchase accounting accretion ("PAA"), it would have been 3.95% for the second quarter, down from 3.97% in the first quarter.

On a positive note, noninterest income increased to $5.8 million in the second quarter, up from $5.5 million in the first quarter. The efficiency ratio remained relatively stable at 61.87% in the second quarter, compared to 61.93% in the first quarter.

Total assets at June 30, 2025, increased to $10.49 billion from $10.43 billion at March 31, 2025. Total loans also saw a slight uptick, reaching $7.29 billion compared to $7.28 billion in the previous quarter. Additionally, the total risk-based capital ratio increased to 15.98%, and the book value per share rose to $31.20 from $30.89.

In terms of asset quality, nonperforming assets decreased to $58.2 million, or 0.55% of total assets, at June 30, 2025, from $59.7 million, or 0.57% of total assets, at March 31, 2025. The allowance for credit losses on loans as a percentage of total loans also improved, dropping to 1.14% at June 30, 2025, from 1.15% at March 31, 2025.

The provision for credit losses in the second quarter of 2025 decreased to $1.1 million from $3.6 million in the first quarter, and net charge-offs for the second quarter were $206 thousand, compared to $163 thousand in the first quarter.

As a result of these announcements, the company's shares have moved -1.81% on the market, and are now trading at a price of $31.53. If you want to know more, read the company's complete 8-K report here.

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