Stellar Bancorp, Inc. · NYSE:STEL
Stellar Bancorp — Q3 2025 Earnings Presentation
19 slides from Stellar Bancorp's earnings presentation, Oct 24, 2025
Slide 1: Third Quarter 2025 Earnings Presentation
Third 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) • 9th in deposit market share for Texas-based b
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 $177.0 JPMorgan 4,552 177.0 6.9 50.1 Wells Fargo $31.6 Wells Fargo 1,981
Slide 5: Third Quarter 2025 Highlights
Third Quarter 2025 Highlights Strong Net Interest Margin: Tax equivalent net interest margin for the third quarter of 2025 was 4.20% compared to 4.18% for the second quarter of 2025. The tax equivalent net interest margin, excluding PAA, was 4.00%(1) for the third quarter of 2025 compared to 3.95%
Slide 6: Deposit Summary
Deposit Summary Maintaining Discipline Navigating Competitive Deposit Market Deposit Portfolio Composition As of September 30, 2025: (1) • Noninterest-bearing deposits to total deposits: 36.4% • Cost of deposits: 1.96% CD's 13.1% • Cost of funds: 2.01% NIB • Loan to deposit ratio: 81.29% 36.4% MMDA
Slide 7: Loan Summary
Loan Summary Loan Portfolio Composition Q3 2025 Q2 2025 (In thousands) C&I 18.6% 1-4 Family Commercial and Industrial (“C&I”) $ 1,332,795 $ 1,346,744 15.9% Nonowner-occupied Commercial Real Estate (“NOO CRE”) 1,513,338 1,579,848 MF Owner-occupied CRE (“OO CRE”) 1,782,405 1,805,487 6.1% Resi. C&D 1.7
Slide 8: CRE and Office Detail: Q3 2025
CRE and Office Detail: Q3 2025 CRE (incl. multifamily) by Property Type CRE - Office Healthcare Other Retail 2.8% 15.3% 15.7% Church 3.5% Auto Sales Office / Repair 10.3% Owner- 3.2% occupied Non-owner 43.8% Restaurant / occupied Bar 56.2% Warehouse 4.0% 15.6% Hotel / Motel 2.5% Multi-family Industr
Slide 9: Loans – Repricing and Maturity: Q3 2025
Loans – Repricing and Maturity: Q3 2025 Repricing Term 3 Months or 3-12 Months 1-3 Years 3-5 Years 5-10 Years 10-15 Years Over 15 Years Total Less (Dollars in thousands) Commercial and industrial $ 724,406 $ 104,006 $ 210,094 $ 206,068 $ 60,201 $ 28,020 $ - $ 1,332,795 Real Estate: Commercial real e
Slide 10: CRE Construction and Development: Q3 2025
CRE Construction and Development: Q3 2025 CRE Construction Lending Highlights Retail Other 4.2% 12.5% Commercial Development 1.0% • Total committed exposure for CRE construction loans was $1.23 billion at September Land - 30, 2025 and $1.24 billion at June 30, 2025. Land - Commercial Residential Lot
Slide 11: Asset Quality Summary
Asset Quality Summary Nonperforming loans to total loans: Q3 2025 Q2 2025 • 0.65% at September 30, 2025 compared to 0.69% as of June 30, 2025 (Dollars in thousands) Allowance for credit losses on loans to nonperforming loans: Total nonperforming loans $ 46,250 $ 50,505 • 170.65% at September 30,
Slide 12: Regulatory Capital Ratios
Regulatory Capital Ratios Minimum Required September 30, 2025 June 30, 2025 Plus Capital Conservation Buffer Consolidated Capital Ratios Estimated Total Capital Ratio (to risk-weighted assets) 16.33% 15.98% 10.50% Estimated Common Equity Tier 1 Capital Ratio (to risk-weighted assets) 14.43% 14.06% 7
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% Change Houston’s GDP has grown at a 2.3% CAGR since ‘18 (’20-’25) Texas: 7.2% / U.S: 1.9% Houston has the 3rd lowest cost of living out of the top 2
Slide 15: 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 2.3 million new residents and created over 1.15 million jobs since 2007 4.0 7.0 Great Recession 6.0 3.5 Employment (M) Population (M) 5.0
Slide 16: 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 17: 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 18: Appendix: Non-GAAP Reconciliation
Appendix: Non-GAAP Reconciliation(1) Q3 2025 Q2 2025 (Dollars in thousands) Total shareholders’ equity $ 1,653,138 $ 1,603,834 Less: Goodw ill and core deposit intangibles, net 573,247 578,786 Tangible shareholders’ equity $ 1,079,891 $ 1,025,048 Shares outstanding at end of period 51,228 51,398 Tan
Slide 19: NYSE: STEL
ol, Be Stellar. NYSE: STEL stellar BANCORP, INC. 19