NYSE$STEL

Stellar Bancorp Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Reported a decrease in net income and earnings per share due to the uncertain economic environment, while maintaining a strong balance sheet and stable core deposits.

Stellar Bancorp reported a net income of $30.9 million and diluted earnings per share of $0.58 for Q3 2023. The company is focused on maintaining balance sheet strength, asset quality, and stable core deposits amidst economic uncertainty and rising interest rates.

  • Net income for Q3 2023 was $30.9 million, with diluted earnings per share of $0.58.
  • Total risk-based capital ratio increased to 13.42% as of September 30, 2023.
  • Tax equivalent net interest margin was 4.37% for Q3 2023.
  • Noninterest-bearing deposit balances remained a significant portion of the deposit funding base at 42.1%.

Headline financials

Total Revenue

$111M

Previous: $46.5M+139.8%
EPS (adj)

$0.58

Previous: $0.52+11.5%
Net interest margin (tax equivalent)

4.4%

No prior period
Return on average assets

1.1%

Previous: 0.8%+35.7%
Return on average tangible equity

14.5%

No prior period
Efficiency ratio

63.5%

Previous: 69.2%-8.2%
Estimated Total capital ratio

13.4%

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

9.8%

No prior period
Capital Expenditures

-$5.62M

Previous: $273K-2159.0%
Free Cash Flow

$25.3M

Previous: $12.7M+98.4%
Net Income

$30.9M

Previous: $12.7M+142.5%
Operating Income

$24.6M

Previous: $20.3M+21.1%
Gross Profit

$110M

Previous: $45.4M+141.9%
Cash & Equivalents

$302M

Previous: $119M+154.9%
Total Assets

$10.7B

Previous: $4.27B+149.7%
Stock-Based Comp

$2.81M

Previous: $515K+446.0%

Revenue & EPS history

Stellar Bancorp · Revenue · Quarterly

$111M

Q3 2023+139.8%vs Q3 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

Stellar Bancorp's management expressed caution regarding the economic environment and the impact of rising interest rates. The company will focus on building its capital base, managing liquidity, and monitoring credit quality to protect and increase long-term shareholder value.

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 2023

Historical avgQ3 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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