Fri, Oct 25, 8:03 PM (69 days ago)
For the third quarter of 2024, Stellar Bancorp, Inc. (STEL) reported a net income of $33.9 million ($0.63 per diluted share), reflecting a 6.4% increase from $30.9 million ($0.58 per diluted share) in Q3 2023. The rise was attributed to an $8.3 million reduction in the provision for credit losses and a $1.6 million increase in noninterest income, despite a $5.2 million decline in net interest income due to rising funding costs. Total loans decreased by 4.7% to $7.55 billion, with a notable shift in the loan composition, particularly a reduction in commercial real estate loans. The allowance for credit losses on loans was $84.5 million, down from $91.7 million at year-end 2023, representing 1.12% of total loans. Stellar's total deposits fell by 1.5% to $8.74 billion, driven by a decrease in noninterest-bearing deposits. The efficiency ratio increased to 66.18%, indicating higher operational costs relative to income. The company maintained strong capital ratios, exceeding regulatory requirements, with a total capital ratio of 15.91%. Overall, while Stellar experienced pressure on net interest income and a decline in loans, it demonstrated resilience through reduced provisions for credit losses and solid capital management.