Nov 20, 2025 4:45 PM Eastern Standard Time Stellar Bancorp, Inc. Announces Increase in Quarterly Dividend Share HOUSTON--(BUSINESS WIRE)--Stellar Bancorp, Inc. (the "Company†) (NYSE: STEL) announced today that its Board of Directors declared a quarterly cash dividend of $0.15 per share of common stock payable on December 31, 2025, to the shareholders of record at the close of business on December 15, 2025. This is an increase of $0.01 per share from the previous quarterly dividend of $0.14 per common shar ...

Core Viewpoint - Stellar Bancorp, Inc. is positioned as a significant entity in the financial services sector, focusing on competitive banking products and services to differentiate itself in a crowded market [1] Group 1: Company Performance - Stellar Bancorp's Q3 2025 earnings call featured CEO Robert Franklin and CFO Paul Egge, highlighting the company's performance and attracting analysts from notable firms [3] - The stock price of STEL fluctuated between $29.12 and $30.01 during the earnings call, indicating volatility and investor interest [3] Group 2: Market Sentiment and Analyst Ratings - Raymond James revised its outlook on STEL to "Outperform" while maintaining a "hold" action, with a price target adjustment from $34 to $32 [2][5] - Following the rating change, STEL's stock experienced a slight increase of $0.35, or 1.19%, closing at $29.81, reflecting cautiously optimistic market sentiment [2][5] Group 3: Market Capitalization and Trading Activity - Stellar Bancorp has a market capitalization of approximately $1.53 billion, indicating strong investor engagement [4][5] - The daily trading volume stands at 202,028 shares, further demonstrating the company's market presence [4]

Financial Performance - Net income for the three months ended September 30, 2025, was $25.7 million, or $0.50 per diluted share, compared to $33.9 million, or $0.63 per diluted share, for the same period in 2024, reflecting a decrease primarily due to a $6.3 million increase in the provision for credit losses [126]. - Net income for the nine months ended September 30, 2025, was $76.7 million, or $1.47 per diluted share, a decrease from $89.8 million, or $1.68 per diluted share for the same period in 2024 [129]. - Noninterest income for the three months ended September 30, 2025 totaled $5.0 million, down $1.3 million or 20.9% from $6.3 million in 2024 [150]. - Noninterest income for the nine months ended September 30, 2025 was $16.3 million, down $1.7 million or 9.6% from $18.0 million in 2024 [151]. - The efficiency ratio for the nine months ended September 30, 2025, was 62.50%, compared to 60.54% for the same period in 2024 [130]. - The efficiency ratio for the three months ended September 30, 2025, was 63.69%, compared to 60.40% for the same period in 2024 [161]. Credit Losses and Provisions - The provision for credit losses increased by $6.3 million, contributing to the decline in net income [126]. - Provision for credit losses recorded was $305 thousand for the three months ended September 30, 2025, compared to a reversal of $6.0 million in 2024 [148]. - The allowance for credit losses decreased from $94.2 million in 2024 to $82.6 million in 2025 [1]. - The allowance for credit losses on loans was $78.9 million as of September 30, 2025, compared to $81.1 million as of December 31, 2024 [183]. - Total charge-offs for all loan types were $4.27 million for the nine months ended September 30, 2025, compared to $5.86 million for the same period in 2024 [184]. - The net charge-offs to average loans ratio was 0.07% for the nine months ended September 30, 2025, compared to 0.08% for the same period in 2024 [184]. Interest Income and Expenses - Net interest income before the provision for credit losses for the nine months ended September 30, 2025, was $298.2 million, a decrease of $6.8 million, or 2.2%, compared to $305.0 million for the same period in 2024 [138]. - Interest income for the nine months ended September 30, 2025, was $430.4 million, down $21.9 million, or 4.9%, from $452.4 million for the same period in 2024 [139]. - Interest expense for the nine months ended September 30, 2025, was $132.2 million, a decrease of $15.1 million, or 10.3%, compared to $147.3 million for the same period in 2024 [140]. - The tax equivalent net interest margin for the nine months ended September 30, 2025, was 4.19%, a decrease of 4 basis points from 4.23% for the same period in 2024 [141]. - The net interest margin for the nine months ended September 30, 2025 was 4.19%, consistent with the margin in 2024 [1]. Loans and Deposits - Total loans as of September 30, 2025, were $7.17 billion, a decrease of $272.0 million, or 3.7%, compared to December 31, 2024 [164]. - Total deposits as of September 30, 2025, were $8.82 billion, a decrease of $310.9 million, or 3.4%, from $9.13 billion at December 31, 2024 [197]. - Noninterest-bearing deposits decreased by $365.3 million, or 10.2%, to $3.21 billion at September 30, 2025, compared to $3.58 billion at December 31, 2024 [197]. - Interest-bearing deposits increased by $54.3 million, or 1.0%, to $5.61 billion at September 30, 2025, from $5.55 billion at December 31, 2024 [197]. - Average loans to average interest-earning assets decreased to 76.5% for the nine months ended September 30, 2025, compared to 80.9% for the same period in 2024 [139]. Economic and Regulatory Environment - The company’s financial performance may be significantly affected by economic conditions, including inflation, interest rates, and the overall health of the banking sector [107]. - The company has identified risks related to uninsured deposits and potential regulatory changes that could impact its operations and financial results [107]. - Estimated uninsured deposits net of collateralized deposits were 46.0% of total deposits as of September 30, 2025, up from 43.4% at December 31, 2024 [213]. Asset Management - The carrying amount of investment securities increased by $169.3 million, or 10.1%, to $1.84 billion as of September 30, 2025, from $1.67 billion as of December 31, 2024 [188]. - The weighted-average life of the securities portfolio was 6.8 years as of September 30, 2025 [212]. - The yield on the securities portfolio increased to 3.77% for the nine months ended September 30, 2025, from 3.22% for the same period in 2024 [139]. Capital and Borrowing - As of September 30, 2025, the company maintained a total capital ratio of 16.33%, significantly above the minimum required ratio of 8.00% [223]. - The Company had a total borrowing capacity of $3.16 billion as of September 30, 2025, with $2.09 billion available under the Federal Home Loan Bank agreement [199]. - The Company redeemed $30.0 million of its $60.0 million aggregate principal amount of Fixed-to-Floating Rate Subordinated Notes on October 1, 2025 [205].

Financial Data and Key Metrics Changes - The company reported a net income of $25.7 million or $0.50 per diluted share for Q3 2025, a slight decrease from $26.4 million or $0.51 per diluted share in Q2 2025 [7] - Annualized return on assets (ROA) was 0.97% and return on average tangible common equity (ROATCE) was 11.45% [7] - Net interest income increased to $100.6 million from $98.3 million in the previous quarter, with a net interest margin of 4.2% compared to 4.18% in Q2 2025 [7][8] - Year-over-year tangible book value per share increased by 9.3% from $19.28 to $21.08 [11] Business Line Data and Key Metrics Changes - Non-interest income decreased to $5 million in Q3 2025 from $5.8 million in Q2 2025, primarily due to write-downs on foreclosed assets [9] - Non-interest expenses rose to $73.1 million from $70 million in the previous quarter, driven by increased salaries and benefits [10] Market Data and Key Metrics Changes - The company experienced a $50 million increase in payoffs compared to the previous quarter, with 44% of payoffs related to the sale of collateral and 25% due to refinancing elsewhere [19] - Loan originations were up 62% year-to-date compared to the same period last year, with a total of $500 million originated in the last quarter [21] Company Strategy and Development Direction - The company aims to grow by focusing on quality assets, protecting margins, and enhancing full client relationships [6] - The management expressed confidence in their ability to defend and potentially improve their net interest margin by adhering to their core relationship banking model [8][12] Management's Comments on Operating Environment and Future Outlook - Management noted that credit quality remains stable despite some charge-offs, with a comfortable reserve level based on their portfolio [4] - The company is positioned to take advantage of market disruptions and is focused on maintaining a strong balance sheet to support growth [12] Other Important Information - The company repurchased shares and paid down $30 million of subordinated debt after the quarter ended [5] - Total risk-based capital was reported at 16.33%, up from 15.98% in the previous quarter [11] Q&A Session Summary Question: What is driving the payoffs and paydowns? - Management indicated that payoffs were $50 million higher than the previous quarter, with a significant portion related to collateral sales and refinancing elsewhere [19] Question: What are the current credit concerns? - Management stated that they conduct stress testing and monitor portfolios closely, emphasizing a careful approach to credit management [24][25] Question: What are the drivers behind deposit growth? - 51% of new deposits were from new customers, reflecting increased brand awareness and market share gains [28] Question: What are the expectations for seasonal deposit strength in Q4? - Management acknowledged historical seasonal strength but noted it is difficult to predict exact amounts [36][38] Question: What makes the current expense level an outlier? - The increase in expenses was attributed to severance payments and elevated medical insurance costs, with expectations for a return to previous levels in Q4 [40][42] Question: How does the company plan to manage net interest margin? - Management plans to focus on lowering deposit costs and is optimistic about defending the current margin level [46][48] Question: What are the expectations for loan growth and M&A activity? - Management expressed confidence in loan growth in the coming quarters and indicated ongoing discussions regarding potential M&A opportunities while being cautious about balance sheet protection [60][61]

Financial Data and Key Metrics Changes - The company reported a net income of $25.7 million or $0.50 per diluted share for Q3 2025, a slight decrease from $26.4 million or $0.51 per diluted share in Q2 2025, reflecting an annualized ROA of 0.97% and an annualized ROATCE of 11.45% [7] - Net interest income increased to $100.6 million in Q3 2025 from $98.3 million in Q2 2025, with a net interest margin of 4.2% compared to 4.18% in the previous quarter [7][8] - The allowance for credit losses on loans decreased to $78.9 million or 1.1% of loans, down from $83.2 million or 1.14% at the end of Q2 2025 [9] Business Line Data and Key Metrics Changes - Non-interest income decreased to $5 million in Q3 2025 from $5.8 million in Q2 2025, primarily due to write-downs on foreclosed assets [10] - Non-interest expenses increased to $73.1 million from $70 million in the previous quarter, driven by higher salaries and benefits, including severance expenses related to branch closures [10] Market Data and Key Metrics Changes - The company experienced a significant increase in loan originations, up 62% year-to-date compared to the same period last year, with a focus on commercial and industrial (C&I) loans [21] - Deposit growth was strong, with 51% of new deposits coming from new customers, indicating successful market share gains [28] Company Strategy and Development Direction - The company aims to maintain a disciplined approach to building quality assets and protecting margins while focusing on full balance relationships to drive long-term shareholder value [6][12] - The management highlighted the importance of low-cost deposits and plans to continue acquiring customers while being cautious about competitive pressures in the market [30][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the stability of credit trends and the overall market, despite some charge-offs, indicating a favorable outlook for the company's credit quality [4][25] - The company is positioned to take advantage of opportunities arising from M&A disruptions in Texas, emphasizing its unique franchise strength in a competitive landscape [12] Other Important Information - The company repurchased shares totaling just under $5 million in Q3 2025, with a year-to-date total of approximately $64 million in share repurchases [11] - The total risk-based capital ratio improved to 16.33% at the end of Q3 2025, up from 15.98% at the end of Q2 2025 [11] Q&A Session Summary Question: What is driving the payoffs and paydowns, and what is the growth outlook? - Management noted that payoffs were about $50 million more than the previous quarter, with 44% related to collateral sales and 25% due to refinancing elsewhere, indicating a competitive market [19][20] Question: What are the current credit concerns and management's approach? - Management emphasized the importance of stress testing and careful monitoring of credit quality, with a focus on maintaining a healthy loan-to-deposit ratio [24][25] Question: What are the drivers behind the strong deposit growth? - The company reported that 51% of new deposits were from new customers, reflecting successful brand awareness and market share gains [28] Question: What are the expectations for seasonal deposit strength in Q4? - Management acknowledged historical seasonal strength in government banking deposits but noted the unpredictability of timing [36][38] Question: What makes the current expense level an outlier? - Management indicated that the increase in expenses was due to severance payments and elevated medical insurance costs, expecting expenses to return closer to previous levels in Q4 [40][42] Question: How does the company plan to manage deposit costs moving forward? - The company plans to focus on lowering deposit costs where possible, particularly for price-sensitive customers, while defending its net interest margin [46][49] Question: What are the company's thoughts on M&A opportunities? - Management continues to explore M&A opportunities but remains cautious about protecting the balance sheet and deposit base [60][61]

Financial Data and Key Metrics Changes - The company reported a net income of $25.7 million or $0.50 per diluted share for Q3 2025, a slight decrease from $26.4 million or $0.51 per diluted share in Q2 2025, reflecting an annualized ROA of 0.97% and an annualized ROATCE of 11.45% [6][11] - Net interest income increased to $100.6 million in Q3 2025 from $98.3 million in Q2 2025, driven by higher earning assets and a net interest margin of 4.2%, up from 4.18% in the previous quarter [6][7] - The allowance for credit losses on loans decreased to $78.9 million or 1.1% of loans, down from $83.2 million or 1.14% at the end of Q2 2025 [9] Business Line Data and Key Metrics Changes - Non-interest income decreased to $5 million in Q3 2025 from $5.8 million in Q2 2025, primarily due to write-downs on foreclosed assets [10] - Non-interest expenses increased to $73.1 million from $70 million in the previous quarter, attributed to higher salaries and benefits, including severance expenses related to branch closures [10] Market Data and Key Metrics Changes - The company experienced strong deposit growth, with 51% of new deposits coming from new customers, indicating a successful strategy in expanding market share [24] - The total risk-based capital ratio improved to 16.33% at the end of Q3 2025, compared to 15.98% at the end of Q2 2025 [11] Company Strategy and Development Direction - The company aims to enhance shareholder value through disciplined asset building, protecting margins, and focusing on full client relationships [5] - The management emphasized the importance of maintaining a strong balance sheet to support quality growth and to be opportunistic in the current competitive landscape [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in credit quality, noting that charge-offs were primarily from small credits that were already identified and reserved for [4] - The company anticipates continued loan origination growth, with a healthy pipeline and a year-to-date increase of 62% in loan originations compared to the previous year [18] Other Important Information - The company repurchased shares and paid down $30 million of subordinated debt after the quarter ended, reinforcing its capital position [5] - The tangible book value per share increased by 9.3% year-over-year, from $19.28 to $21.08 [11] Q&A Session Summary Question: What is driving the payoffs and paydowns? - Payoffs were about $50 million more than the previous quarter, with 44% related to collateral sales and 25% to refinancing elsewhere [16][17] Question: What are the current credit concerns? - Management stated that stress testing and portfolio monitoring are in place, and they are cautious about the mix of C&I credits while maintaining a focus on real estate loans [19][20] Question: What are the drivers behind deposit growth? - The growth was driven by new accounts, with 51% of new deposits from new customers, reflecting brand awareness and customer satisfaction improvements [24] Question: What are the expectations for loan growth and payoffs? - Management expects a lift from advances exceeding paydowns, with a healthy pipeline and loan originations anticipated to continue growing [44][46] Question: What is the company's approach to M&A? - The company is cautious about M&A, focusing on finding partners that align with their funding structure and protecting their balance sheet [48]

Financial Data and Key Metrics Changes - The company reported a net income of $25.7 million or $0.50 per diluted share for Q3 2025, compared to $26.4 million or $0.51 per share in Q2 2025, reflecting an annualized ROAA of 0.97% and an annualized ROATCE of 11.45% [9] - Net interest income increased to $100.6 million from $98.3 million in the previous quarter, with a net interest margin of 4.2% compared to 4.18% in Q2 2025 [10] - The total risk-based capital ratio improved to 16.33% at the end of Q3 2025 from 15.98% at the end of Q2 2025, and tangible book value per share increased by 9.3% year-over-year [13] Business Line Data and Key Metrics Changes - The provision for loan losses was $305,000 in Q3 2025, with net charge-offs totaling $3.3 million, primarily from previously identified credits [11] - Non-interest income decreased to $5 million from $5.8 million in the previous quarter, mainly due to write-downs on foreclosed assets [12] - Non-interest expenses rose to $73.1 million from $70 million in Q2 2025, driven by increased salaries and benefits, including severance expenses related to branch closures [12] Market Data and Key Metrics Changes - The company experienced strong deposit growth, with 51% of new deposits coming from new customers, reflecting improved brand awareness and customer satisfaction [32] - The company reported a significant increase in loan originations, up 62% year-to-date compared to the same period last year, although Q3 originations were lower than Q2 [22] Company Strategy and Development Direction - The company aims to enhance shareholder value through disciplined capital deployment, focusing on building quality assets and maintaining strong credit quality [8] - The management emphasized the importance of maintaining a competitive edge in a dynamic market, particularly in Texas, where M&A activity is increasing [13][67] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the stability of credit trends and the overall market, despite some concerns in the industry [7][29] - The company plans to continue optimizing expenses and managing its balance sheet effectively to support growth and maintain financial flexibility [45] Other Important Information - The company repurchased shares and paid down $30 million of subordinated debt after the quarter-end, reinforcing its capital position [8] - The management noted that Q3 expenses were considered an outlier and expected a return to a more typical expense level in Q4 2025 [12][44] Q&A Session Summary Question: What is driving the payoffs and paydowns, and what is the growth outlook? - Payoffs in the last quarter were about $50 million more than the previous quarter, with 44% related to collateral sales and 25% due to refinancing elsewhere. The company remains optimistic about future growth due to a healthy pipeline [20][22] Question: What are the current credit concerns and management's approach? - Management stated that they conduct stress testing and monitor portfolios closely, emphasizing a shift towards more stable C&I credits while maintaining a strong real estate loan portfolio [26][28] Question: What are the drivers behind the strong deposit growth? - The company reported that 51% of new deposits were from new customers, reflecting successful market share gains and improved customer satisfaction [31][32] Question: What are the expectations for seasonal deposit strength in Q4? - The company noted historical seasonal strength in government banking deposits, but it is difficult to predict exact amounts for the upcoming quarter [39][41] Question: What is the outlook for loan growth and M&A activity? - Management indicated that loan growth is expected to manifest in the second half of the year, with ongoing conversations about potential M&A opportunities while being cautious about maintaining a strong balance sheet [65][67]

Group 1: Earnings Performance - Stellar Bancorp reported quarterly earnings of $0.5 per share, matching the Zacks Consensus Estimate, but down from $0.63 per share a year ago [1] - The company had a surprise of +13.33% in the previous quarter, posting earnings of $0.51 per share against an expected $0.45 [1] - Over the last four quarters, Stellar Bancorp has exceeded consensus EPS estimates three times [1] Group 2: Revenue Analysis - The company posted revenues of $105.63 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 0.32% and down from $107.81 million year-over-year [2] - Stellar Bancorp has topped consensus revenue estimates only once in the last four quarters [2] Group 3: Stock Performance and Outlook - Stellar Bancorp shares have increased by approximately 3.9% since the beginning of the year, compared to a 14.6% gain in the S&P 500 [3] - The company's future stock performance will largely depend on management's commentary during the earnings call and the earnings outlook [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.49 on revenues of $107.07 million, and for the current fiscal year, it is $1.96 on revenues of $421.93 million [7] Group 4: Industry Context - The Zacks Industry Rank for Banks - Southeast places it in the top 24% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Performance - Total assets increased to $10,628.113 million as of September 30, 2025, from $10,493.010 million as of June 30, 2025[8] - Total deposits increased to $8,817.463 million as of September 30, 2025, from $8,673.614 million as of June 30, 2025[8] - Net interest margin (tax equivalent) was 4.20% for the third quarter of 2025, compared to 4.18% for the second quarter of 2025[8, 12, 20] - Net income for the third quarter of 2025 was $25.7 million, translating to an annualized return on average assets of 0.97%, an annualized return on average equity of 6.30%, and an annualized return on average tangible equity of 11.45%[20] - The total capital ratio (to risk-weighted assets) increased to 16.33% at September 30, 2025, from 15.98% at June 30, 2025[8, 12, 20] Balance Sheet Composition - Noninterest-bearing deposits constituted 36.4% of total deposits as of September 30, 2025[8, 12, 22, 24] - Total loans decreased to $7,167.857 million as of September 30, 2025, from $7,287.347 million as of June 30, 2025[8] - Loans to total deposits ratio was 81.29% as of September 30, 2025, compared to 84.02% as of June 30, 2025[8, 24] Market Position - Stellar Bancorp is ranked 6th in deposit market share for the Houston region[12] - Stellar has over $8.4 billion in deposits in the Houston region[14, 49] Asset Quality - Nonperforming loans to total loans were 0.65% at September 30, 2025, compared to 0.69% as of June 30, 2025[40] - Allowance for credit losses on loans to nonperforming loans was 170.65% at September 30, 2025, compared to 164.67% as of June 30, 2025[40]

Financial Performance - Net income for Q3 2025 was $25.7 million, or diluted earnings per share of $0.50, compared to $26.4 million, or $0.51 per share in Q2 2025[3]. - Noninterest income for Q3 2025 was $5.0 million, a decrease of $805 thousand, or 13.9%, compared to Q2 2025[11]. - Noninterest expense increased by $3.1 million, or 4.5%, to $73.1 million in Q3 2025, driven by higher salaries and employee benefits[12]. - Net income for the three months ended September 30, 2025, was $25,670,000, compared to $26,352,000 in the previous quarter[29]. - Earnings per share (basic) for the three months ended September 30, 2025, was $0.50, a decrease from $0.51 in the previous quarter[29]. - Net income for the three months ended September 30, 2025, was $25,670,000, a decrease of 2.6% from $26,352,000 in the previous quarter[31]. - Adjusted net income for the nine months ended September 30, 2025, was $89,878,000, compared to $104,516,000 in the same period of 2024, a decrease of 14.1%[43]. Asset and Liability Management - Total assets increased by $135 million to $10.63 billion at September 30, 2025, primarily due to growth in interest-bearing deposits and securities[13]. - Total loans decreased by $119.5 million to $7.17 billion at September 30, 2025, while total deposits increased by $143.8 million to $8.82 billion[14]. - Total assets increased to $10,628,113 thousand as of September 30, 2025, up from $10,493,010 thousand in the previous quarter, representing a growth of 1.29%[27]. - Total deposits rose to $8,817,463 thousand, an increase of 1.66% from $8,673,614 thousand in the previous quarter[27]. - Loans held for investment decreased slightly to $7,167,857 thousand from $7,287,347 thousand, reflecting a decline of 1.64%[27]. - Total interest-earning assets for the three months ended September 30, 2025, were $9,525,017 thousand, with a net interest income of $100,644 thousand and a margin of 4.19%[36]. - Interest-bearing liabilities totaled $5,612,068 thousand, with interest paid of $132,195 thousand and a yield of 3.15% for the nine months ended September 30, 2025[38]. Capital and Equity - Total risk-based capital ratio rose to 16.33% at September 30, 2025, up from 15.98% at June 30, 2025, while book value per share increased to $32.27[9]. - Total shareholders' equity increased to $1,653,138 thousand, up from $1,603,834 thousand, marking a growth of 3.07%[27]. - Book value per share increased to $32.27 from $31.20 in the previous quarter, reflecting a growth of 3.4%[31]. - Tangible book value per share rose to $21.08, up from $19.94 in the prior quarter, marking an increase of 5.7%[31]. - Shareholders' equity stood at $1,609,110 thousand as of September 30, 2025[38]. Credit Quality - Nonperforming assets totaled $54.2 million, or 0.51% of total assets, at September 30, 2025, down from $58.2 million, or 0.55%, at June 30, 2025[15]. - The provision for credit losses was $305 thousand in Q3 2025, significantly lower than $1.1 million in Q2 2025[16]. - The allowance for credit losses on loans was $78,924 thousand, slightly down from $83,165 thousand, indicating a decrease of 5.43%[27]. - Nonperforming loans to total loans ratio decreased to 0.65% in September 2025, down from 0.69% in June 2025[40]. - The allowance for credit losses on loans to nonperforming loans ratio was 170.65% in September 2025, an increase from 164.67% in June 2025[40]. - Net charge-offs increased to $3,323 thousand in September 2025 from $206 thousand in June 2025, indicating a significant rise[40]. Efficiency and Cost Management - The efficiency ratio for Q3 2025 was 63.69%, compared to 61.87% in Q2 2025[13]. - The efficiency ratio improved to 63.69% from 61.87% in the previous quarter, indicating better cost management[31]. - Noninterest expense for the three months ended September 30, 2025, was $73,142,000, compared to $70,004,000 in the previous quarter, indicating an increase of 3.1%[44]. Interest Income and Margin - Net interest income increased by $2.3 million, or 2.3%, to $100.6 million in Q3 2025 from $98.3 million in Q2 2025, with a net interest margin of 4.20%[8]. - Total interest income for the three months ended September 30, 2025, was $145,413,000, a slight increase from $142,699,000 in the previous quarter[29]. - Net interest income after provision for credit losses was $100,339,000 for the three months ended September 30, 2025, compared to $97,245,000 in the previous quarter[29]. - The net interest margin (tax equivalent) was 4.20%, slightly up from 4.18% in the previous quarter[31].