NYSE$STEL

Stellar Bancorp Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Net income increased driven by decrease in the allowance for credit losses.

CBTX, Inc. reported a net income of $14.4 million, or $0.59 per diluted share, for the third quarter of 2021, compared to $11.7 million, or $0.48 per diluted share, for the second quarter of 2021.

  • Net income was $14.4 million for the third quarter of 2021, or $0.59 per diluted share.
  • Recapture of credit losses of $4.9 million during the third quarter of 2021, primarily due to continued improvements in the national and local economies and economic forecasts and the reduction of the loan portfolios during the third quarter of 2021.
  • Net interest margin on a tax equivalent basis decreased to 3.22% for the third quarter of 2021, compared to 3.29% for the second quarter of 2021, primarily due to lower average balances for the loan portfolio.
  • Cash and equivalents increased $210.4 million to $998.8 million during the third quarter of 2021, primarily due to net deposit inflows and loan payments received.

Headline financials

Total Revenue

$36.8M

Previous: $35.7M+3.0%
EPS (adj)

$0.59

Previous: $0.26+126.9%
Net interest margin (tax equivalent)

3.2%

Previous: 3.5%-9.3%
Efficiency ratio

66.2%

No prior period
Tangible equity to tangible assets

11.6%

No prior period
Nonperforming assets to total assets

0.5%

Previous: 0.4%+19.5%
Estimated Total capital ratio

18.1%

Previous: 16.7%+8.7%
Estimated Tier 1 leverage (to average tangible assets)

11.7%

Previous: 11.9%-1.8%
Estimated Common equity Tier 1 capital (to risk weighted assets)

16.9%

No prior period
Free Cash Flow

$14.4M

Previous: $6.42M+124.6%
Net Income

$14.4M

Previous: $6.42M+124.6%
Operating Income

$7.5M

Previous: $6.35M+18.1%
Gross Profit

$31.9M

Previous: $31.6M+0.9%
Cash & Equivalents

$999M

Previous: $378M+164.5%
Total Assets

$4.21B

Previous: $3.81B+10.3%
Stock-Based Comp

$698K

Previous: $582K+19.9%

Revenue & EPS history

Stellar Bancorp · Revenue · Quarterly

$36.8M

Q3 2021+3%vs Q3 2020
Beat estimate in 11 of 16 quarters(69%)
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

Company's goal is to finish strong in the fourth quarter as we build momentum into 2022 and return to our traditional growth rate.

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 Q3 2021

Historical avgQ3 2021

-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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