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Investing.com -- Stellar Bancorp , Inc. (NYSE:STEL) reported first quarter 2025 earnings that surpassed analyst expectations, while revenue fell slightly short. The company’s shares rose 1.9% following the announcement.
The Houston-based bank posted adjusted earnings per share of $0.46, beating the analyst consensus of $0.44. However, revenue came in at $104.76 million, below the estimated $105.72 million. Compared to the same quarter last year, revenue decreased by 3.6%.
Stellar Bancorp’s net income for the quarter was $24.7 million, down from $25.2 million in the previous quarter. The company’s tax equivalent net interest margin narrowed to 4.20% from 4.25% in the fourth quarter of 2024.
CEO Robert R. Franklin, Jr. commented on the results, stating, "We are pleased with the great work our team is doing as we turn our efforts from building our foundation to growing our bank." He added, "We are seeing our pipelines build while experiencing payoffs as commercial real estate is sold or refinanced."
Total (EPA:TTEF) loans decreased by $156.7 million to $7.28 billion compared to the end of 2024. Deposits also fell by $565.7 million to $8.56 billion, primarily due to decreases in noninterest-bearing and certificates and other time deposits.
The company’s asset quality showed some deterioration, with nonperforming assets increasing to 0.57% of total assets, up from 0.36% at the end of 2024. The allowance for credit losses on loans as a percentage of total loans rose to 1.15% from 1.09% in the previous quarter.
Stellar Bancorp maintained a strong capital position, with its total risk-based capital ratio increasing to 15.94%. The company also repurchased 1.4 million shares during the quarter at a weighted average price of $27.99 per share.
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