Stellar Bancorp, Inc. reported strong third-quarter results for 2025, with a net income of $25.7 million, or diluted earnings per share of $0.50. This is a slight decrease from the previous quarter's net income of $26.4 million, or diluted earnings per share of $0.51.
The tax equivalent net interest margin for the third quarter of 2025 was 4.20%, a slight increase from 4.18% in the second quarter of 2025. Excluding purchase accounting accretion, the tax equivalent net interest margin was 4.00% for the third quarter, up from 3.95% in the second quarter.
The total risk-based capital ratio increased to 16.33% at September 30, 2025, from 15.98% at June 30, 2025. Additionally, book value per share increased to $32.27 at September 30, 2025, from $31.20 at June 30, 2025, and tangible book value per share increased to $21.08 at September 30, 2025, from $19.94 at June 30, 2025.
Net interest income in the third quarter of 2025 increased to $100.6 million from $98.3 million in the second quarter of 2025. Noninterest income decreased to $5.0 million in the third quarter, from $5.8 million in the second quarter, primarily due to losses on sales and write-downs on foreclosed assets. Noninterest expense increased to $73.1 million in the third quarter, compared to $70.0 million in the second quarter, mainly due to increases in salaries, employee benefits, professional fees, and advertising expense.
Total assets at September 30, 2025, were $10.63 billion, an increase of $135 million compared to $10.49 billion at June 30, 2025. Total loans decreased to $7.17 billion at September 30, 2025, from $7.29 billion at June 30, 2025, while total deposits increased to $8.82 billion at September 30, 2025, from $8.67 billion at June 30, 2025.
Nonperforming assets totaled $54.2 million at September 30, 2025, compared to $58.2 million at June 30, 2025. The provision for credit losses decreased to $305 thousand in the third quarter, from $1.1 million in the second quarter, and net charge-offs for the third quarter were $3.3 million, compared to $206 thousand in the second quarter.
Stellar Bancorp, Inc. continues to be recognized as a strong, locally-managed bank focused on serving small-to-medium sized businesses. The company remains confident in its ability to deepen customer relationships and deliver long-term value for its shareholders. As a result of these announcements, the company's shares have moved -1.57% on the market, and are now trading at a price of $29.46. For more information, read the company's full 8-K submission here.
