Stellar Bancorp, Inc. · NYSE:STEL
Stellar Bancorp — Q1 2025 Earnings Presentation
20 slides from Stellar Bancorp's earnings presentation, Apr 25, 2025
Slide 1: First Quarter 2025 Earnings Presentation
First Quarter 2025 Earnings Presentation Exhibit 99.2
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
Forward-Looking Statements and Non-GAAP Financial Measures 2 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 193
Slide 3: Houston's Largest Regionally Focused Bank
3 (1) Deposit market share based on FDIC data as of June 30, 2024. (2) Houston Region defined as the Houston-Pasadena-The Woodlands and Beaumont-Port Arthur MSAs; Excludes non-retail branches. (3) Refer to the calculation of this non-GAAP financial measure and a reconciliation to its most directly c
Slide 4: Focused on Serving the Houston Region
$30.1 $25.3 $13.2 $9.0 $8.6 $7.8 $5.7 $5.7 $5.7 $5.3 $3.4 $3.0 $2.6 $2.4 $2.3 $2.1 $1.9 JPMorgan Wells Fargo BofA Zions PNC Frost Prosperity Cadence Woodforest Capital One Third Coast Comerica Truist BOK Regions Texas Capital Texas Independent Focused on Serving the Houston Region 4 Note: Deposit ma
Slide 5: Q1 2025 Highlights
5 Q1 2025 Highlights (1) Refer to the calculation of these non-GAAP financial measures and a reconciliation to their most directly comparable GAAP financial measures in the appendix. The calculation of return on average tangible equity has been adjusted from prior period disclosures. Solid Profita
Slide 6: Deposit Summary
Deposit Summary 6 Deposit Portfolio Composition Deposits (in millions)(1) Maintaining Discipline Navigating Competitive Deposit Market As of March 31, 2025: • Noninterest-bearing deposits to total deposits: 37.4% • Cost of deposits: 1.90% • Cost of funds: 1.96% • Loan to deposit ratio: 85.1% • Broke
Slide 7: Loan Summary
Loan Summary 7 (1) Refer to the calculation of these non-GAAP financial measures and a reconciliation to their most directly comparable GAAP financial measures in the appendix. . Loan Portfolio Composition (1) (1) 1-4 Family 15.5% MF 6.1% Resi. C&D 1.9% Other 1.1% CRE C&D 9.9% NOO CRE 21.8% OO CRE 2
Slide 8: CRE and Office Detail: Q1 2025
CRE and Office Detail: Q1 2025 8 (1) (1) CRE (incl. multifamily) by Property Type CRE - Office Retail 16.3% Office 10.3% Warehouse 14.9% C-Store 11.1% Multi-family 11.5% Industrial 4.1% Hotel / Motel 3.3% Restaurant / Bar 3.9% Auto Sales / Repair 3.4% Church 3.4% Healthcare 2.9% Other 14.9% Owner- o
Slide 9: Loans – Repricing and Maturity: Q1 2025
9 Loans – Repricing and Maturity: Q1 2025 Floating-21% WA Rate-8.64% Variable-26% WA Rate-6.41% Fixed-53% WA Rate-6.07% (1) Rates do not include purchase accounting accretion or fee income on loans. Total Loans in thousands Commercial and industrial 681,459$ 121,601$ 248,077$ 229,235$ 55,928$ 25,965
Slide 10: CRE Construction and Development: Q1 2025
CRE Construction and Development: Q1 2025 10 (1) (1) • Total committed exposure for CRE construction loans was $1.05 billion at March 31, 2025 and $1.18 billion at December 31, 2024. • The largest category of CRE construction loans was Land – Commercial at $283.5 million outstanding, or 39.3%, of CR
Slide 11: Asset Quality Summary
Asset Quality Summary 11 Nonperforming Loans by Type (1) Combined represents the simple addition of legacy balances for 2022; estimated. Nonperforming loans to total loans: • 0.75% at March 31, 2025 compared to 0.50% as of December 31, 2024 Allowance for credit losses on loans to nonperforming l
Slide 12: Regulatory Capital Ratios
Regulatory Capital Ratios 12 (1) Refer to the calculation of this non-GAAP financial measure and a reconciliation to its most directly comparable GAAP financial measure in the appendix. Minimum Required Plus Capital Conservation Buffer Consolidated Capital Ratios Estimated Total Capital Ratio (to ri
Slide 13: Key Takeaways
13 Key Takeaways Excellent core funding profile Strong earnings power and franchise value in one of the best markets in the U.S. Key success factors: Credit performance and risk management Significant financial flexibility Positioned for continued strong internal capital generation
Slide 14: Diverse and Strong Markets of Operation
$5.7 $5.7 $5.7 $7.8 $8.6 $9.0 $13.2 $25.3 $30.1 $151 Woodforest Cadence Prosperity Frost Stellar PNC Zions BofA Wells Fargo JP Morgan 6.1% 5.6% 2.4% Houston MSA Texas USA 6.4% 6.0% 2.7% Houston MSA Texas USA Diverse and Strong Markets of Operation 14 Houston is Diverse, with Significant Economic Tai
Slide 15: Diversified and Growing Economy
4.2% 2.1% (0.2)% 1.5% 2.0% (4.9)% 2.2% 1.4% 1.5% 1.7% 1.4% 1.8% 0.2% 6.6% Mining and Logging Private Education and Health Services Financial Activities Leisure and Hospitality Professional and Business Services Information Wholesale Trade Transportation, Warehousing, and Utilities Government Total N
Slide 16: Houston is a Resilient Market
2.0 3.0 4.0 5.0 6.0 7.0 2.0 2.5 3.0 3.5 4.0 2007 2009 2011 2013 2015 2017 2019 2021 2023 Houston is a Resilient Market 16 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
Slide 17: Houston's Growth Projected to Continue
197,171 0 50,000 100,000 150,000 200,000 250,000 N ew Y or k H ou st on D al la s M ia m i W as hi ng to n Ph oe ni x O rla nd o At la nt a C hi ca go Se at tle Houston’s Growth Projected to Continue 17 Source: S&P Capital IQ Pro; U.S. Census Bureau 2010-2025 Population Change (%) Houston had the se
Slide 18: Housing Market and Cost of Living
$94,960 $91,380 $86,627 $88,783 $78,845 $76,585 $78,770 New York MSA Los Angeles MSA Chicago MSA Dallas MSA Houston MSA Texas U.S. $850,000 $1,072,000 $350,000 $395,000 $314,900 $334,900 $418,284 New York Los Angeles Chicago Dallas Houston Texas U.S. 9.0x 11.7x 4.0x 4.4x 4.0x 4.4x 5.3x New York MSA
Slide 19: Appendix: Non-GAAP Reconciliation
Appendix: Non-GAAP Reconciliation(1) 19 (1) See the disclosure under the heading “GAAP Reconciliation of Non-GAAP Financial Measures” on slide 2 regarding the use of non-GAAP financial measures. (2) Interim periods annualized. (3) The calculation of return on average tangible equity has been adjuste
Slide 20: Be Stellar.
ol, Be Stellar. NYSE: STEL stellar BANCORP, INC. 20