Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: Stellar Bancorp (STEL) - Stellar Bancorp currently holds a Momentum Style Score of A, indicating strong momentum characteristics [3] - The company has a Zacks Rank of 2 (Buy), suggesting a favorable outlook based on historical performance metrics [4] Performance Metrics - Over the past week, STEL shares increased by 0.31%, outperforming the Zacks Banks - Southeast industry, which rose by 0.16% [6] - In the last month, STEL's price change was 20.74%, significantly higher than the industry's 5.34% [6] - Over the past quarter, STEL shares have risen by 23.35%, and over the last year, they have gained 30.77%, compared to the S&P 500's increases of 2.08% and 15.65%, respectively [7] Trading Volume - The average 20-day trading volume for STEL is 416,853 shares, which serves as a bullish indicator when combined with rising stock prices [8] Earnings Outlook - In the last two months, one earnings estimate for STEL has increased, while none have decreased, raising the consensus estimate from $1.99 to $2.03 [10] - For the next fiscal year, one estimate has moved upwards with no downward revisions, indicating positive earnings momentum [10] Conclusion - Considering the strong performance metrics and positive earnings outlook, STEL is positioned as a 2 (Buy) stock with a Momentum Score of A, making it a potential candidate for near-term investment [12]

Core Viewpoint - Halper Sadeh LLC is investigating several companies for potential violations of federal securities laws and breaches of fiduciary duties to shareholders related to their sales transactions [1][2]. Group 1: Company Investigations - Stellar Bancorp, Inc. is being investigated regarding its sale to Prosperity Bancshares, Inc. for 0.3803 shares of Prosperity common stock and $11.36 in cash for each share of Stellar common stock [1]. - Gold Resource Corporation's sale to Goldgroup Mining Inc. involves an exchange of 1.4476 common shares of Goldgroup for each share of Gold Resource common stock [2]. - SkyWater Technology, Inc. is under scrutiny for its sale to IonQ, which includes $15.00 in cash and $20.00 in shares of IonQ common stock for each share of SkyWater [2]. Group 2: Legal Rights and Options - Halper Sadeh LLC may seek increased consideration for shareholders, additional disclosures, and other relief on behalf of shareholders [3]. - Shareholders are encouraged to contact Halper Sadeh LLC to discuss their legal rights and options at no charge [4].

Core Viewpoint - The proposed sale of Stellar Bancorp, Inc. to Prosperity Bancshares, Inc. is under investigation to assess whether the transaction adequately values Stellar and the process leading to this valuation is appropriate [1]. Group 1: Transaction Details - Shareholders of Stellar Bancorp will receive 0.3803 shares of Prosperity common stock and $11.36 in cash for each share of Stellar they own as part of the proposed transaction [1]. Group 2: Legal Investigation - Kahn Swick & Foti, LLC is investigating the proposed sale to determine if the consideration offered undervalues Stellar Bancorp [1]. - The firm is inviting shareholders who believe the transaction undervalues the company to discuss their legal rights regarding the proposed sale [2].

Core Viewpoint - Monteverde & Associates PC is investigating the proposed sale of Stellar Bancorp, Inc. to Prosperity Bancshares, Inc., questioning the fairness of the deal for Stellar shareholders [1]. Group 1: Company Overview - Monteverde & Associates PC is recognized as a Top 50 Firm in the 2024 ISS Securities Class Action Services Report and has recovered millions for shareholders [1]. - The firm is located in the Empire State Building, New York City, and specializes in class action securities litigation [2]. Group 2: Transaction Details - Under the terms of the proposed transaction, Stellar shareholders are expected to receive 0.3803 shares of Prosperity common stock and $11.36 in cash for each share of Stellar common stock [1].

Core Viewpoint - Prosperity Bancshares has announced an agreement to acquire Stellar Bancorp, creating a $54 billion-asset bank with a strong presence in the Houston market [1] Group 1: Acquisition Details - Prosperity Bancshares will pay approximately $2 billion for Stellar in a part-cash, part-stock transaction, with 70% of the value in stock, resulting in an implied value of $39.08 per Stellar share [1] - The pro forma bank will have the number one deposit market share in Beaumont County and the number five deposit market share in Houston [2] Group 2: Financial Implications - The acquisition is projected to be over 9% accretive to Prosperity's earnings by 2027, with the ability to cut 35% of Stellar's non-interest expense base [3] - Management projects the combined entity to generate a return on average assets of 1.58% and a return on average tangible common equity of 17.1% by 2027, with an efficiency ratio of 44% [4] Group 3: Valuation and Market Reaction - The deal values Stellar at slightly over 180% of its tangible book value, which is a strong multiple in the current high bank stock valuation market [5] - The acquisition is projected to dilute Prosperity's tangible book value by nearly 8%, with an estimated 4.5 years to earn that back, leading to an approximate 8% decline in Prosperity's stock [6]

Core Insights - Stellar Bancorp reported revenue of $108.89 million for the quarter ended December 2025, marking a year-over-year increase of 0.8% and a surprise of +1.04% over the Zacks Consensus Estimate of $107.77 million [1] - The EPS for the same period was $0.51, slightly down from $0.52 a year ago, with an EPS surprise of -3.17% compared to the consensus estimate of $0.53 [1] Financial Performance Metrics - Efficiency Ratio stood at 61.6%, outperforming the three-analyst average estimate of 66.2% [4] - Net interest margin (tax equivalent) was 4.2%, aligning with the average estimate based on three analysts [4] - Total nonperforming assets reached $60.04 million, exceeding the average estimate of $51.46 million [4] - Total nonperforming loans amounted to $52.55 million, higher than the average estimate of $43.84 million [4] - Average balance of total interest-earning assets was $9.75 billion, slightly above the average estimate of $9.67 billion [4] - Net charge-offs (recoveries) to average loans (annualized) were at 0%, better than the two-analyst average estimate of 0.1% [4] - Total Non-Interest Income was $5.51 million, slightly below the three-analyst average estimate of $5.57 million [4] - Net Interest Income was reported at $103.38 million, surpassing the average estimate of $102.17 million [4] - Net Interest Income (tax equivalent) was $103.49 million, compared to the average estimate of $102.27 million [4] Stock Performance - Shares of Stellar Bancorp have returned +6.3% over the past month, outperforming the Zacks S&P 500 composite's +0.8% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Viewpoint - Halper Sadeh LLC is investigating the fairness of the sale of Stellar Bancorp, Inc. to Prosperity Bancshares, Inc. for 0.3803 shares of Prosperity common stock and $11.36 in cash per share of Stellar common stock, focusing on whether the transaction is fair to Stellar shareholders [1]. Group 1: Investigation Details - The investigation aims to determine if Stellar Bancorp and its board violated federal securities laws or breached fiduciary duties by not securing the best possible consideration for shareholders [1]. - Key concerns include whether Prosperity is underpaying for Stellar and if all material information necessary for shareholders to assess the merger consideration has been disclosed [1]. Group 2: Legal Representation - Halper Sadeh LLC may seek increased consideration for shareholders, additional disclosures, and other relief related to the proposed transaction [1]. - The firm operates on a contingent fee basis, meaning shareholders would not incur out-of-pocket legal fees or expenses [1].

Core Viewpoint - Ademi LLP is investigating Stellar for potential breaches of fiduciary duty and other legal violations related to its transaction with Prosperity Bancshares, Inc. [1] Group 1: Transaction Details - Stellar stockholders will receive 0.3803 shares of common stock and $11.36 in cash for each outstanding share, valuing the transaction at approximately $2.002 billion based on Prosperity's closing price of $72.90 on January 27, 2026 [2] - Stellar insiders are set to receive substantial benefits as part of the change of control arrangements [2] Group 2: Board Conduct and Limitations - The transaction agreement imposes significant penalties on Stellar for accepting competing bids, which may limit competing transactions unreasonably [3] - The investigation focuses on whether the Stellar board of directors is fulfilling their fiduciary duties to all shareholders [3]

分组1 - Stellar Bancorp reported quarterly earnings of $0.51 per share, missing the Zacks Consensus Estimate of $0.53 per share, and showing a slight decrease from $0.52 per share a year ago, resulting in an earnings surprise of -3.17% [1] - The company posted revenues of $108.89 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 1.04%, and showing an increase from $107.99 million year-over-year [2] - Over the last four quarters, Stellar Bancorp has surpassed consensus EPS estimates two times and topped consensus revenue estimates just once [2] 分组2 - The stock has gained approximately 5.5% since the beginning of the year, outperforming the S&P 500's gain of 1.9% [3] - The current consensus EPS estimate for the upcoming quarter is $0.46 on revenues of $105.15 million, and for the current fiscal year, it is $1.99 on revenues of $433.03 million [7] - The Zacks Industry Rank for Banks - Southeast is currently in the top 23% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

Financial Performance - Net income for Q4 2025 was $26.1 million, or diluted earnings per share of $0.51, while full-year net income reached $102.9 million, or diluted earnings per share of $1.99[3] - Net income for the three months ended December 31, 2025, was $26,148,000, compared to $25,670,000 for the previous quarter, reflecting a growth of 1.87%[31] - Adjusted net income for the quarter was $30,043,000, slightly down from $30,058,000 in the prior quarter, a decrease of 0.05%[46] - Pre-tax, pre-provision income increased to $36,733,000, up from $32,488,000 in the prior quarter, marking a rise of 13.83%[46] Income and Expenses - Net interest income for 2025 decreased by $6.4 million, or 1.6%, to $401.6 million, with a net interest margin of 4.20% compared to 4.24% in 2024[5] - Noninterest income for 2025 was $21.8 million, a decrease of $1.3 million, or 5.4%, primarily due to losses on sales and write-downs on foreclosed assets[6] - Total interest income for the three months ended December 31, 2025, was $144,038,000, a decrease from $150,022,000 in the previous quarter[29] - Total noninterest income increased to $5,508,000 for the three months ended December 31, 2025, from $5,032,000 in the previous quarter[29] - Total noninterest expense for the three months ended December 31, 2025, was $72,158,000, a slight decrease from $75,266,000 in the previous quarter[29] Assets and Liabilities - Total assets increased to $10.81 billion at December 31, 2025, up $178.5 million from September 30, 2025, largely due to a $356.2 million increase in securities[14] - Total assets reached $10,745,033 thousand in Q4 2025, an increase from $10,518,865 thousand in Q3 2025[36] - Total liabilities increased to $9,080,492 thousand in Q4 2025, compared to $8,901,354 thousand in Q3 2025[36] - Total deposits rose to $9,021,466 thousand, an increase of 2.3% from $8,817,463 thousand in the prior quarter[27] Loans and Credit Quality - Total loans increased by $132.7 million to $7.30 billion at December 31, 2025, while total deposits rose by $204.0 million to $9.02 billion[15] - Nonperforming assets totaled $60.0 million, or 0.56% of total assets, at December 31, 2025, compared to 0.51% at September 30, 2025[16] - The allowance for credit losses on loans was $83,629 thousand, up from $78,924 thousand, indicating a 9.4% increase in provisions for potential loan losses[27] - The allowance for credit losses on loans was $78,995 thousand in Q4 2025, slightly down from $82,983 thousand in Q3 2025[36] Efficiency and Ratios - The efficiency ratio improved to 61.64% for Q4 2025 from 63.69% in Q3 2025, indicating better cost management[13] - The return on average assets (ROAA) remained stable at 0.97% for the last two quarters, while the return on average equity (ROAE) slightly decreased to 6.23% from 6.30%[31] - The estimated total capital ratio (to risk-weighted assets) was 15.73%, slightly down from 16.33% in the previous quarter, indicating a stable capital position[31] Shareholder Value - Book value per share increased to $32.78 at December 31, 2025, up from $30.09 at December 31, 2024[8] - Dividends per share increased to $0.15 from $0.14, reflecting a commitment to returning value to shareholders[31] - Tangible book value per share also rose to $21.62 from $21.08, indicating improved asset quality[31] Operational Metrics - The number of full-time equivalent employees increased to 1,075 from 1,065, suggesting growth in operational capacity[31] - Total interest-earning assets increased to $9,753,491 thousand in Q4 2025, up from $9,525,017 thousand in Q3 2025, reflecting a growth of 2.4%[36] - The cost of funds decreased to 1.79% in Q4 2025 from 2.01% in Q3 2025, indicating improved funding efficiency[36]