Slide 1: Second Quarter 2025 Earnings Presentation
Second Quarter 2025 Earnings Presentation
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
Forward-Looking Statements and Non-GAAP Financial Measures Certain statements in this press release which are not historical in nature are intended to be, and are hereby identified as, “forward-looking statements” for purposes of the safe harbor provided by Section 27A of the Securities Act of 1933,
Slide 3: Houston’s Largest Regionally Focused Bank
Houston’s Largest Regionally Focused Bank Valuable franchise in one of the best markets in the U.S. Banking Centers • 6th in deposit market share for Houston region(1)(2) • 1st in deposit market share for Texas-based banks in the Houston region(1)(2) • 10th in deposit market share for Texas-based
Slide 4: Focused on Serving the Houston Region
Focused on Serving the Houston Region Houston Region Market Share(1) Deposits (dollars in billions) Houston Percent of Houston Total Assets Region(1) Company Region Market Name ($B) Deposits ($B) Deposits (%) Share (%) JPMorgan $150.8 JPMorgan 4,143 150.8 7.5 47.4 Wells Fargo $30.1 Wells Fargo 1,940
Slide 5: Q2 2025 Highlights
Q2 2025 Highlights Solid Profitability: Net income for the second quarter of 2025 was $26.4 million, or diluted earnings per share of $0.51, which translated into an annualized return on average assets of 1.01%, an annualized return on average equity of 6.62% and an annualized return on average ta
Slide 6: Deposit Summary
Deposit Summary Maintaining Discipline Navigating Competitive Deposit Market Deposit Portfolio Composition As of June 30, 2025: CD's (1) • Noninterest-bearing deposits to total deposits: 36.71% 13.3% • Cost of deposits: 1.97% NIB 36.7% • Cost of funds: 2.02% • Loan to deposit ratio: 84.02% MMDA • Br
Slide 7: Loan Summary
Loan Summary Loan Portfolio Composition Q2 2025 Q1 2025 (In thousands) C&I 18.5% 1-4 Family Commercial and Industrial (“C&I”) $ 1,346,744 $ 1,362,266 15.4% Nonowner-occupied Commercial Real Estate (“NOO CRE”) 1,579,848 1,587,456 MF 6.3% Resi. C&D Owner-occupied CRE (“OO CRE”) 1,805,487 1,823,044 1.9
Slide 8: CRE and Office Detail: Q2 2025
CRE and Office Detail: Q2 2025 CRE (incl. multifamily) by Property Type CRE - Office Other Retail Healthcare 15.2% 16.0% 2.9% Church 3.4% Office Owner- Auto Sales / Repair 10.1% occupied 3.4% 41.8% Restaurant / Bar Non- 3.9% owner Warehouse Hotel / Motel 14.8% occupied 2.7% 58.2% Industrial Multi-fa
Slide 9: Loans – Repricing and Maturity: Q2 2025
Loans – Repricing and Maturity: Q2 2025 Repricing Term Total Loans 3 Months or 3-12 Months 1-3 Years 3-5 Years 5-10 Years 10-15 Years Over 15 Years Total in thousands Less Commercial and industrial $ 689,671 $ 133,833 $ 221,195 $ 211,667 $ 62,228 $ 28,151 $ - $ 1,346,744 Real Estate: Commercial real
Slide 10: CRE Construction and Development: Q2 2025
CRE Construction and Development: Q2 2025 CRE Construction Lending Highlights Retail Other 4.9% 12.1% Commercial Development • Total committed exposure for CRE construction loans was $1.24 billion at June 30, 1.6% Land - 2025 and $1.05 billion at March 31, 2025. Land - Commercial Residential Lot 36.
Slide 11: Asset Quality Summary
Asset Quality Summary Nonperforming loans to total loans: Q2 2025 Q1 2025 • 0.69% at June 30, 2025 compared to 0.75% as of March 31, 2025 Allowance for credit losses on loans to nonperforming loans: (Dollars in thousands) • 164.67% at June 30, 2025 compared to 153.61% as of March 31, Total nonpe
Slide 12: Regulatory Capital Ratios
Regulatory Capital Ratios Minimum Required June 30, 2025 March 31, 2025 Plus Capital Conservation Buffer Consolidated Capital Ratios Estimated Total Capital Ratio (to risk-weighted assets) 15.98% 15.97% 10.50% Estimated Common Equity Tier 1 Capital Ratio (to risk-weighted assets) 14.06% 14.05% 7.00%
Slide 13: Key Takeaways
Key Takeaways Strong earnings power and franchise value in one of the best markets in the U.S. Excellent core funding profile Significant financial flexibility Positioned for continued strong internal capital generation Key success factors: Credit performance and risk management 13
Slide 14: Diverse and Strong Markets of Operation
Diverse and Strong Markets of Operation Houston is Diverse, with Significant Economic Tailwinds Greater Houston Market Population Houston MSA: 7.7% Houston’s 25.1% GDP growth from ’21 to ’23 ranked first out Change of the 20 most populus U.S. metro areas (’20-’25) Texas: 7.2% / U.S: 1.9% Median
Slide 15: Diversified and Growing Economy
Diversified and Growing Economy Houston vs. U.S. Job Change by Industry (Jan ‘24 – Jan ‘25)(1) Commentary Houston’s economy has become much more diversified over the Mining and Logging 4.2% years, while remaining the energy capital of the United States Private Education and Health Services 2.1%
Slide 16: Houston is a Resilient Market
Houston is a Resilient Market Since the Great Recession, Houston has proven its resiliency, weathering economic cycles and natural disasters − Houston welcomed 2.2 million new residents and created over one million jobs since 2007 4.0 7.0 Great Recession 6.0 3.5 Employment (M) Population (M) 5.0 3
Slide 17: Houston’s Growth Projected to Continue
Houston’s Growth Projected to Continue Houston had the second highest net migration in 2024 • Houston has seen tremendous 10 most populated metros growth over the past ten years, Houston added ~198,000 people by aided by the relocation of multiple net migration in 2024, second only to 250,000 New Yo
Slide 18: Household Income
Housing $94,960 $91,380 $86,627 $88,783 $78,845 $76,585 $78,770 Household Income Market and 2025 Median Cost of Living New York Los Angeles Chicago MSA Dallas MSA Houston MSA Texas U.S. MSA MSA • Cost of living in Houston is 5.3% $1,072,000 less than that of the U.S. market $850,000 average while th
Slide 19: Appendix: Non-GAAP Reconciliation
Appendix: Non-GAAP Reconciliation(1) Q2 2025 Q1 2025 (Dollars in thousands) Total shareholders’ equity $ 1,603,834 $ 1,610,832 Less: Goodw ill and core deposit intangibles, net 578,786 584,325 Tangible shareholders’ equity $ 1,025,048 $ 1,026,507 Shares outstanding at end of period 51,398 52,141 Tan
Slide 20: NYSE: STEL
ol, Be Stellar. NYSE: STEL stellar BANCORP, INC. 20