Fri, Jul 26, 8:23 PM (43 days ago)
Stellar Bancorp, Inc. reported financial results for Q2 2024. Key highlights include: 1. **Financial Performance**: Net income decreased to $29.8 million ($0.56 per diluted share) from $35.2 million ($0.66 per diluted share) in Q2 2023. The decline was primarily due to a $6.9 million decrease in net interest income and a $2.0 million increase in noninterest expense, partially offset by a $3.9 million decrease in the provision for credit losses. 2. **Revenue & Margins**: Interest income increased by $5.2 million (3.6%) to $152.2 million, driven by higher-yielding loans and securities. However, interest expense surged by $12.1 million (31.3%) to $50.8 million due to higher funding costs. Net interest margin decreased by 25 basis points to 4.24%. 3. **Loan Portfolio**: Total loans decreased by $211.2 million (2.7%) to $7.71 billion. The commercial real estate and construction loan segments saw notable declines. 4. **Deposits**: Total deposits decreased by $148.2 million (1.7%) to $8.73 billion, with noninterest-bearing deposits dropping by $238.4 million (6.7%). 5. **Asset Quality**: Nonperforming assets rose to $53.5 million (0.50% of total assets) from $39.2 million (0.37% of total assets). The allowance for credit losses on loans increased to $94.8 million (1.23% of total loans). 6. **Liquidity & Capital**: The company maintained a robust liquidity position with total contingent funding sources at $4.14 billion. Stellar Bancorp remains well-capitalized with a Tier 1 leverage ratio of 10.93%. Overall, while Stellar Bancorp faced challenges with declining net interest income and increased expenses, it maintained strong capital and liquidity positions.