NYSE$STEL

Stellar Bancorp Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Reported solid profitability, strong net interest margin, meaningful capital and book value build, and improving credit metrics.

Stellar Bancorp reported a net income of $33.9 million, or $0.63 diluted earnings per share, for the third quarter of 2024. The company saw improvements in credit metrics and an increase in the total risk-based capital ratio.

  • Net income for Q3 2024 was $33.9 million, with diluted earnings per share at $0.63.
  • The tax equivalent net interest margin was 4.19% for Q3 2024.
  • Total risk-based capital ratio increased to 15.91% at the end of Q3 2024.
  • Nonperforming loans decreased by $18.8 million to $32.1 million at the end of Q3 2024.

Headline financials

Total Revenue

$108M

Previous: $111M-3.2%
EPS

$0.63

Previous: $0.58+8.6%
Net interest margin (tax equivalent)

4.2%

Previous: 4.4%-4.1%
Return on average assets

1.3%

Previous: 1.1%+11.4%
Return on average equity

8.5%

No prior period
Return on average tangible equity

15.6%

Previous: 14.5%+7.9%
Efficiency ratio

60.4%

Previous: 63.5%-4.9%
Equity to assets

15.3%

No prior period
Tangible equity to tangible assets

10.3%

No prior period
Nonperforming assets to total assets

0.3%

No prior period
Nonperforming loans to total loans

0.4%

No prior period
Allowance for credit losses on loans to nonperforming loans

262.9%

No prior period
Allowance for credit losses on loans to total loans

1.1%

No prior period
Net charge-offs to average loans (annualized)

0.2%

No prior period
Estimated Total capital ratio

15.8%

Previous: 13.4%+18.1%
Estimated Tier 1 leverage (to average tangible assets)

11.1%

Previous: 9.8%+13.0%
Capital Expenditures

-$3.39M

Previous: -$5.62M+39.7%
Free Cash Flow

$30.5M

Previous: $25.3M+20.6%
Net Income

$33.9M

Previous: $30.9M+9.7%
Operating Income

$13.6M

Previous: $24.6M-44.7%
Gross Profit

$101M

Previous: $110M-7.7%
Stock-Based Comp

$3M

Previous: $2.81M+6.7%

Revenue & EPS history

Stellar Bancorp · Revenue · Quarterly

$108M

Q3 2024-3.2%vs Q3 2023
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 Bank is positioned for success as the economic and political environment becomes clearer. The company feels comfortable with their revenue outlook. The election cycle will soon be complete and some of the elevated stress and uncertainty around the process will abate. The company has positioned the Bank for quality growth and looks forward to furthering the Stellar brand in their markets.

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 2024

Historical avgQ3 2024

-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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