Stellar Bancorp Inc. ( (STEL) ) has released its Q4 earnings. Here is a breakdown of the information Stellar Bancorp Inc. presented to its investors.
Stellar Bancorp, Inc., headquartered in Houston, Texas, operates as a bank holding company providing a diverse array of commercial banking services to small- and medium-sized businesses and individuals across various Texan communities. In its recently released earnings report, Stellar Bancorp announced a net income of $27.8 million for the fourth quarter of 2024, with a full-year net income totaling $117.6 million. The company highlighted its strategic focus on establishing a robust foundation, preparing for growth, and leveraging opportunities with downstream partners.
The company’s financial performance in 2024 demonstrated solid profitability with a return on average assets of 1.10% and a return on average equity of 7.50%. However, there was a slight decrease in net interest income, which fell by 6.6% compared to 2023, due to increased average interest-bearing liabilities and higher rates. Despite these challenges, Stellar Bancorp achieved a strong net interest margin of 4.24% for the year.
Stellar Bancorp’s financial condition remained stable, with total assets increasing to $10.91 billion by year-end, supported by a significant increase in deposits. The company’s capital ratios improved, with the total risk-based capital ratio rising to 16.06%. Additionally, the book value per share and tangible book value per share saw notable growth over the year.
Looking forward, Stellar Bancorp’s management expresses optimism about the economic activity in its markets as it enters 2025. The company is poised to focus on core fundamentals while exploring growth opportunities that enhance operating leverage.