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HOUSTON - On Friday, Stellar Bancorp , Inc. (NYSE:STEL) reported second quarter 2025 earnings that exceeded analyst expectations, with net income rising to $26.4 million, or $0.51 per diluted share, compared to $24.7 million, or $0.46 per share, in the first quarter of 2025.
The quarterly profit of $0.51 per share came in $0.06 above the analyst consensus estimate of $0.45, while revenue reached $104.13 million, slightly below the consensus estimate of $104.92 million. Revenue was essentially flat compared to the same quarter last year.
"We are pleased to report our second quarter results that reflect the efforts of our team beginning to add growth to the foundation we’ve built at Stellar Bank," said Robert R. Franklin, Jr., Stellar’s Chief Executive Officer. "Our bankers made meaningful progress on originations during the second quarter after experiencing elevated payoff activity."
The bank maintained a strong net interest margin of 4.18% for the quarter, compared to 4.20% in the first quarter of 2025. Excluding purchase accounting accretion, the net interest margin was 3.95%. Total (EPA:TTEF) loans increased marginally by $4.2 million to $7.29 billion, while deposits grew by $110.9 million to $8.67 billion.
Asset quality remained solid with nonperforming assets totaling $58.2 million, or 0.55% of total assets, down from 0.57% in the previous quarter. The bank’s provision for credit losses decreased to $1.1 million from $3.6 million in the first quarter.
Stellar maintained strong capital positions with a total risk-based capital ratio of 15.98%. The bank also continued its share repurchase program, buying back 791,000 shares at an average price of $26.08 during the quarter.
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