Stellar Bancorp, Inc. (STEL) FY2025 10-K Annual Report

Filed: Feb 26, 2026
Financials
National Commercial BanksSEC EDGAR

Stellar Bancorp, Inc. (STEL) 10-K annual report for fiscal year 2025, filed with SEC EDGAR on Feb 26, 2026. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.

Stellar Bancorp, Inc. FY2025 10-K Analysis

Business Overview

  • Community banking and financial services with focus on retail and commercial banking
  • New $65 million common stock repurchase program authorized in April 2025 through May 2026
  • Completed merger with Allegiance Bancshares, Inc. October 2022, forming Stellar Bancorp, Inc. under CBTX
  • Repurchased 299,347 shares at $30.44 average price in Q4 2025, shares retired
  • Total shareholder return up to $133.67 from $100 invested in 2020 through 2025 per performance graph

Management Discussion & Analysis

  • Revenue: Net interest income $401.6M, down $6.4M (1.6%) YoY; noninterest income $21.8M, down $1.3M (5.4%) YoY; total net income $102.9M, down $12.1M (10.5%) YoY
  • Profitability: Return on average equity 6.34% vs 7.34%; return on average assets 0.97% vs 1.08%; efficiency ratio 62.28% vs 61.53% (all 2025 vs 2024)
  • Segment performance: Commercial and industrial loans grew 8.4% to $1.48B (best); commercial real estate loans declined 2.6% to $3.77B (worst)
  • Capital allocation: Income tax expense decreased to $24.9M from $30.0M; no specific buyback/dividend/capex amounts disclosed in provided data
  • Outlook/risks: Management highlights loan portfolio credit risk due to increased nonperforming loans and provision for credit losses rising to $10.2M from a $2.9M reversal in prior year

Risk Factors

  • Merger regulatory risk: requires approvals from Federal Reserve, FDIC, Texas Department of Banking for 2026 Q2 closing
  • Macroeconomic risk: exposure to Texas economy sectors, incl. real estate, energy, impacting loan portfolio quality
  • Credit loss allowance sensitivity: 5% increase in qualitative risk factors would raise reserves by $2.9 million
  • Competitive disruption: pending merger with Prosperity Bancshares may face shareholder dissent or alternative bids
  • Financial risk: $78 million termination fee payable if merger not completed by January 27, 2027, unless extended

Stellar Bancorp, Inc. FY2025 Key Financial Metrics
XBRL

Revenue

$6M

-2.3% YoY

Net Income

$103M

-10.5% YoY

Net Margin

1637.6%

-15097bp YoY

ROE

6.2%

-99bp YoY

Total Assets

$10.8B

-0.9% YoY

EPS (Diluted)

$1.99

-7.4% YoY

Operating Cash Flow

$97M

-26.9% YoY

Source: XBRL data from Stellar Bancorp, Inc. FY2025 10-K filing on SEC EDGAR. All figures in USD.

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