Fri, Apr 25, 8:48 PM (16 days ago)
**Stellar Bancorp, Inc. (STEL) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $142.3 million (down 4.1% YoY) - **Net Income:** $24.7 million (down 5.5% YoY) - **Earnings per Share (EPS):** $0.46 (down 8.2% YoY) - **Profit Margins:** Net interest margin decreased to 4.20% (down 6 basis points YoY) - **Cash Flow:** Net cash provided by operating activities was -$5.7 million (down from $31.1 million in Q1 2024) **Key Metrics:** - **Loans:** $7.28 billion (down 2.1% from Q4 2024) - **Deposits:** $8.56 billion (down 6.2% from Q4 2024) - **Allowance for Credit Losses:** $83.7 million (up 3.3% from Q4 2024) - **Nonperforming Assets:** $59.7 million (up 53.6% from Q4 2024) **Trends & Uncertainties:** - **Loan Portfolio:** Decrease in commercial real estate construction and land development loans (down 14.7% QoQ) - **Deposit Base:** Decrease in noninterest-bearing deposits (down 10.4% QoQ) - **Interest Rates:** Decrease in average yield on interest-earning assets (down 17 basis points YoY) - **Economic Conditions:** Potential impacts from economic disruptions, financial market volatility, and credit events **Future Operations Impact:** - **Share Repurchase:** Completed repurchase of 679,331 shares under the 2024-2025 program - **New Repurchase Program:** Authorized to repurchase up to $65 million of common stock through May 2026 - **Capital Ratios:** Maintained well-capitalized status under regulatory guidelines **Conclusion:** Stellar Bancorp faced challenges in Q1 2025, with declines in revenue, net income, and key performance metrics. The company continues to manage its loan portfolio and deposit base amidst economic uncertainties and competitive pressures. The new share repurchase program and maintained capital ratios indicate a focus on shareholder value and regulatory compliance.