Stellar Bancorp, Inc. has reported its fourth quarter and full-year 2025 results, showcasing a mix of positive and negative changes in key financial metrics compared to the previous periods.
In the fourth quarter of 2025, the company's net interest income increased to $103.4 million from $100.6 million in the third quarter. The net interest margin, excluding purchase accounting adjustments, also saw a slight increase to 4.06% from 4.00% in the third quarter.
However, noninterest income for the same period increased to $5.5 million, up from $5.0 million in the third quarter. Noninterest expenses decreased to $72.2 million from $73.1 million in the third quarter, leading to a lower efficiency ratio of 61.64% compared to 63.69% in the previous quarter.
For the full year 2025, net interest income decreased by $6.4 million to $401.6 million compared to 2024, attributed to a decrease in average interest-earning assets. Noninterest income also decreased by $1.3 million to $21.8 million compared to 2024 due to losses on sales and write-downs on foreclosed assets. Noninterest expenses decreased by $3.5 million to $285.5 million compared to 2024, primarily due to decreases in professional fees and amortization of intangibles.
In terms of financial condition, total assets increased to $10.81 billion from $10.63 billion at September 30, 2025. Total loans increased to $7.30 billion from $7.17 billion at September 30, 2025, and total deposits increased to $9.02 billion from $8.82 billion at September 30, 2025.
The company also reported that nonperforming assets totaled $60.0 million at December 31, 2025, compared to $54.2 million at September 30, 2025. The allowance for credit losses on loans as a percentage of total loans increased to 1.15% at December 31, 2025, from 1.10% at September 30, 2025.
Following these announcements, the company's shares moved -0.95%, and are now trading at a price of $32.46. For the full picture, make sure to review Stellar Bancorp's 8-K report.
