NYSE$STEL

Stellar Bancorp Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Reported net income and diluted earnings per share for the second quarter of 2023, while maintaining focus on capital, credit, and liquidity.

Stellar Bancorp reported a net income of $35.2 million and diluted earnings per share of $0.66 for Q2 2023. The company remains focused on capital, credit, and liquidity, which is reflected in their results.

  • Second quarter 2023 net income of $35.2 million and diluted earnings per share of $0.66, annualized return on average assets of 1.31% and an annualized return on average tangible equity of 17.05%.
  • Total risk-based capital ratio increased to 13.03% at June 30, 2023 from 12.39% at December 31, 2022 and Tier 1 leverage ratio increased to 9.51% at June 30, 2023 from 8.55% at December 31, 2022.
  • Net charge-offs of $428 thousand, or 0.01%, for the year-to-date 2023, while nonperforming assets remained stable.
  • Tax equivalent net interest margin was 4.49% for the second quarter of 2023 as compared to 4.80% in the first quarter of 2023.

Headline financials

Total Revenue

$114M

Previous: $38.4M+196.1%
EPS (adj)

$0.66

Previous: $0.57+15.8%
Net interest margin (tax equivalent)

4.5%

Previous: 3.5%+28.7%
Return on average assets

1.3%

No prior period
Return on average equity

9.7%

No prior period
Efficiency ratio

60.8%

No prior period
Estimated Tier 1 leverage (to average tangible assets)

9.5%

Previous: 11.5%-17.2%
Capital Expenditures

-$2.48M

Previous: $211K-1274.9%
Free Cash Flow

$32.7M

Previous: $11.7M+179.3%
Net Income

$35.2M

Previous: $11.7M+200.5%
Operating Income

$39.4M

Previous: $15.9M+148.7%
Gross Profit

$110M

Previous: $38.3M+186.0%
Cash & Equivalents

$304M

Previous: $484M-37.2%
Total Assets

$10.8B

Previous: $4.32B+149.4%
Stock-Based Comp

$2.84M

Previous: $63K+4411.1%

Revenue & EPS history

Stellar Bancorp · Revenue · Quarterly

$114M

Q2 2023+196.1%vs Q2 2022
Beat estimate in 11 of 14 quarters(79%)
ActualEstimate

Revenue by segment

Stellar Bancorp · $5.56M total across 5 segments · Q3 2021

  • Bank-owned life insurance
    $2.32M
  • Service charges on deposit accounts
    $1.35M
  • Debit card and interchange income
    $1.05M
  • Other noninterest income
    $479K
  • (Loss) gain on sale/write-down of assets
    $360K

Forward guidance

This press release contains forward-looking statements regarding the company's future performance, which are subject to risks and uncertainties.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

-0.2%

Avg return

Earnings day

-0.2%

Avg return

5 days after

+2.1%

Avg return

30 days after

49%

20 / 41 earnings

Positive

+11.4%

Q4 2025

Best reaction

-9.6%

Q4 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.9%-0.2%-0.2%
Q4 2025+11.4%+14.7%+15.4%
Q3 2025+0.8%-0.4%+6.7%
Q1 2025-4.6%-7.6%-1.0%
Q4 2024-0.8%+3.0%+1.4%
Q3 2024+5.9%+6.1%+18.2%
Q2 2024-0.2%-0.4%-2.1%
Q1 2024-6.9%-4.5%-4.1%
Q4 2023+0.6%-5.7%-9.4%
Q3 2023-3.4%-1.8%+6.8%
Q2 2023-2.4%-6.4%-18.0%
Q1 2023+4.8%+0.2%+8.0%
Q4 2022-9.6%-1.7%+2.9%
Q3 2022+4.5%+11.7%+11.4%
Q2 2022+3.3%+1.8%+2.3%
Q1 2022-2.3%-4.0%-8.9%
Q4 2021+2.1%+3.3%+8.3%
Q3 2021-0.9%+1.1%+6.6%
Q2 2021+3.0%-4.9%+1.7%
Q1 2021-0.9%+0.7%+0.7%
Q4 2020+2.2%+3.1%+7.8%
Q3 2020-2.8%-2.5%+16.5%
Q2 2020-2.3%-6.2%-4.6%
Q4 2019-9.2%-10.2%+5.3%
Q1 2020-8.4%-8.0%+2.6%
Q3 2019-2.4%-1.2%+1.2%
Q2 2019+2.6%+4.1%-9.5%
Q1 2019+0.4%+1.6%-2.4%
Q4 2018+0.1%-0.2%-3.6%
Q3 2018+0.3%-0.3%+4.7%
Q2 2018+3.3%+3.9%+0.8%
Q1 2017+0.3%-0.0%+2.1%
Q1 2018-1.1%-0.7%-1.5%
Q4 2015+1.5%+0.6%+2.0%
Q2 2016+1.5%+0.6%+2.0%
Q1 2016+1.5%+0.6%+2.0%
Q2 2017+1.5%+0.6%+2.0%
Q4 2017-0.2%-2.7%-3.6%
Q3 2016-0.6%+1.5%+5.4%
Q3 2017-0.6%+1.5%+5.4%
Q4 2016-0.6%+1.5%+5.4%

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