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