Financial Data and Key Metrics Changes - The company reported a net income of $29.8 million or $0.56 per diluted share for Q2 2024, an increase from $26.1 million or $0.49 per diluted share in Q1 2024, resulting in an annualized ROAA of 1.13% and ROATCE of 12.82% compared to 0.98% and 11.47% respectively in the previous quarter [51][52] - Net interest income for the quarter was $101.4 million, a slight decrease of about $700,000 from $102.1 million in Q1 2024, with a net interest margin of 4.24% compared to 4.26% in the prior quarter [35][36] - The total risk-based capital ratio improved to 15.34% at the end of Q2 2024 from 14.02% at the end of 2023 and 12.39% at the end of 2022 [38] Business Line Data and Key Metrics Changes - Non-interest income decreased to $5.4 million in Q2 from $6.3 million in Q1, primarily due to a prior quarter gain on asset sales [56] - Non-interest expense was $71.2 million, slightly down from $71.4 million in Q1, with notable non-recurring items including a $420,000 FDIC special assessment charge and $450,000 in severance costs [57][90] Market Data and Key Metrics Changes - The company noted a stabilization in non-interest-bearing deposits after previous outflows, which is expected to support future growth in net interest income [54][82] - The company is focusing on small to medium-sized businesses and enhancing its deposit base, which is crucial for its growth strategy [31][33] Company Strategy and Development Direction - The company aims to de-risk its balance sheet by focusing on capital, liquidity, and credit, while managing its commercial real estate portfolio within regulatory guidelines [26][28] - The strategic goal is to build a strong deposit base and maintain a good net interest margin to capitalize on future growth opportunities [33][59] - The company is exploring both organic growth and potential M&A opportunities, emphasizing the importance of maintaining an attractive funding profile [72] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the economic impact of interest rates and the upcoming election year, while remaining optimistic about future growth opportunities [50][45] - The company is well-positioned to take advantage of market opportunities as conditions stabilize [37][59] Other Important Information - The company has a remaining loan discount of $87.4 million, which is expected to contribute positively to income as loans pay down [3][39] - The company has been successful in retaining capital since the merger and is considering various options for capital utilization moving forward [6][8] Q&A Session Summary Question: What drove the minimal net charge-offs and the provision reversal this quarter? - The minimal net charge-offs were attributed to lower outstanding amounts in certain categories and stable credit quality, leading to a reversal of provision for credit losses [5][20] Question: What is the outlook for yield accretion in the second half of the year? - Management suggested a conservative approach, guiding towards a yield accretion closer to the first quarter's performance rather than the second quarter's [2][3] Question: How is the company approaching capital retention versus returning capital to shareholders? - The company is focused on growth and is considering various options for capital utilization, including buybacks and dividends, while also emphasizing the importance of building its franchise [6][7] Question: What is the company's strategy regarding loan growth and credit appetite? - The company is taking a balanced approach to loan growth, with a focus on diversifying its lending business and managing its commercial real estate exposure [61][78]

Stellar Bancorp (STEL) reported $106.83 million in revenue for the quarter ended June 2024, representing a year-over-year decline of 6.1%. EPS of $0.56 for the same period compares to $0.66 a year ago. The reported revenue represents a surprise of +0.50% over the Zacks Consensus Estimate of $106.3 million. With the consensus EPS estimate being $0.48, the EPS surprise was +16.67%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to dete ...

Stellar Bancorp (STEL) came out with quarterly earnings of $0.56 per share, beating the Zacks Consensus Estimate of $0.48 per share. This compares to earnings of $0.66 per share a year ago. These figures are adjusted for non-recurring items. National Bankshares' revenues are expected to be $11.43 million, down 4.8% from the year-ago quarter. This quarterly report represents an earnings surprise of 16.67%. A quarter ago, it was expected that this bank holding company would post earnings of $0.48 per share wh ...

Exhibit 99.1 PRESS RELEASE STELLAR BANCORP, INC. REPORTS SECOND QUARTER 2024 RESULTS HOUSTON, July 26, 2024 - Stellar Bancorp, Inc. (the "Company" or "Stellar") (NYSE: STEL) today reported net income of $29.8 million, or diluted earnings per share of $0.56, for the second quarter of 2024 compared to net income of $26.1 million, or diluted earnings per share of $0.49, for the first quarter of 2024. "We are pleased to announce our second quarter 2024 results," said Robert R. Franklin, Jr., Stellar's Chief Exe ...

Highlights PETAH TIKVA, Israel, June 17, 2024 (GLOBE NEWSWIRE) -- Gilat Satellite Networks Ltd. (Nasdaq: GILT, TASE: GILT), a worldwide leader in satellite networking technology, solutions, and services, announced today that it has signed a definitive agreement to acquire Stellar Blu Solutions LLC, which will become a core component of Gilat's IFC growth strategy. Gilat will pay an initial cash payment of $98 Million at closing, subject to customary adjustments, and up to an additional $147 Million payable ...

Financial Data and Key Metrics Changes - The company reported a first quarter net income of $26.1 million or $0.49 per diluted share, down from $27.3 million or $0.51 per diluted share in the fourth quarter of 2023, reflecting an annualized return on average assets of 0.98% compared to 1.02% in the previous quarter [14] - Net interest income decreased to $102.1 million from $105.9 million in the fourth quarter, primarily due to a decrease in purchase accounting accretion [16] - The net interest margin for the first quarter was 4.26%, down from 4.4% in the fourth quarter, while excluding purchase accounting accretion, it remained unchanged at 3.91% [17] - A credit provision of $4.1 million was recorded, significantly higher than the $1 million in the prior quarter, reflecting conservative reserving for potential problem credits [17] Business Line Data and Key Metrics Changes - The company originated approximately $335 million in new loans during the first quarter, which is consistent with prior quarters, but faced $256 million in payoffs, leading to a net decrease in loan balances [31][32] - Noninterest income was reported at $6.3 million, bolstered by a gain on asset sales and some SBIC income [18] - Noninterest expense was approximately $71.4 million, aligning with expectations and reflecting seasonal dynamics [19] Market Data and Key Metrics Changes - The Houston market experienced significant growth, with a population increase of nearly 140,000 and over 100,000 new jobs created in the previous year, positioning the company favorably in a strong market [12][24] - The company noted that its funding profile remains strong despite a decrease in noninterest-bearing deposits, which fell below the 40% threshold [23] Company Strategy and Development Direction - The company is focused on building capital, strengthening liquidity, and closely monitoring credit quality, maintaining a defensive posture regarding loan growth [10][15] - The strategic positioning in the Houston market, characterized by job growth and affordability, is expected to support the company's success in 2024 and beyond [25] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by higher interest rates affecting cash flows and loan demand, but expressed confidence in the company's ability to manage these pressures [5][34] - The management team remains optimistic about the future, citing strong capital and liquidity metrics, and a commitment to maintaining a conservative approach to underwriting [10][20] Other Important Information - The total risk-based capital ratio improved to 14.62% at the end of the first quarter, up from 14.02% at the end of 2023 [20] - The company aims to increase its securities as a percentage of assets to around 15%, currently at 14.2% [57] Q&A Session Summary Question: Drivers behind the decline in loan balances - The company originated $335 million in new loans but faced $256 million in payoffs, leading to a net decrease in loan balances. The underwriting posture and higher interest rates have contributed to slower loan growth [31][34] Question: Trends in core deposit growth - The company is onboarding new accounts successfully, although the dollar amount in noninterest-bearing deposits has decreased due to broker deposits impacting the overall mix [35][36] Question: Increase in nonaccruals and credit quality - The increase in nonaccruals was primarily due to two C&I credits facing management issues, along with some smaller construction loans encountering unexpected cost increases [38][39] Question: Core loan yields and repricing schedule - New loans were originated at a note rate of $8.49, with renewed loans averaging $8.05. The company is managing the impact of higher rates on borrowers, who are generally accepting of the changes [46][49] Question: Outlook for net interest margin - The company anticipates pressure on net interest margin in the second quarter due to rising deposit costs and an increase in nonperformers [53] Question: Investment securities portfolio - The company is focused on building liquidity through its securities portfolio, aiming for better yields moving forward [54]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________________________________________ FORM 10-Q _______________________________________________ S QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2024 OR £ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO COMMISSION FILE NUMBER: 001-38280 ___________________ ...

Exhibit 99.1 PRESS RELEASE STELLAR BANCORP, INC. REPORTS FIRST QUARTER 2024 RESULTS HOUSTON, April 26, 2024 - Stellar Bancorp, Inc. (the "Company" or "Stellar") (NYSE: STEL) today reported net income of $26.1 million, or diluted earnings per share of $0.49, for the first quarter of 2024 compared to net income of $27.3 million, or diluted earnings per share of $0.51, for the fourth quarter of 2023. "We are pleased to announce our first quarter 2024 results that reflect our continued focus on building capital ...

Table of Contents 21UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K S ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, 2023 OR £ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO COMMISSION FILE NUMBER: 001-38280 Stellar Bancorp, Inc. (Exact name of registrant as specified in its charter) Texas 20-8339782 (State or other jurisdi ...

Forward-Looking Statements and Non-GAAP Financial Measures All forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and other factors that may cause the actual results, performance or achievements of Stellar Bancorp, Inc. ("Stellar") to differ materially from any results expressed or implied by such forward-looking statements. GAAP Reconciliation of Non-GAAP Financial Measures Stellar Bancorp, Inc. - Snapshot Strong core earnings power and capital posit ...