Revenue Generation - The company generates most of its income from interest income on loans, interest income from investments in securities, and service charges on customer accounts[121]. - Net interest income is the largest source of revenue, calculated as the difference between interest income on earning assets and interest expense on liabilities[121]. - The company measures net interest margin, which is calculated as net interest income divided by average interest-earning assets[121]. Credit Losses and Allowance - The allowance for credit losses is based on expected losses, historical loss experience, and qualitative considerations, making it a critical accounting estimate[125]. - The company evaluates loans with similar risk characteristics collectively and applies reserve factors based on historical lifetime loss and current economic conditions[126]. - Individual credit loss estimates are performed for nonaccrual loans and modified loans classified as troubled loan modifications[127]. - The company assesses the overall quality of the loan portfolio and the adequacy of the allowance for credit losses on loans through a loan review process[127]. - Changes in the allowance for credit losses can be attributed to historical lifetime loss, specific reserves for individually evaluated loans, and changes in qualitative factors[127]. - A 5% increase in historical loss rates would have increased funded reserves by $1.8 million, while a 5% increase in qualitative risk factors would have increased reserves by $3.0 million[128]. - The allowance for credit losses recorded a reversal of $6.0 million for the three months ended September 30, 2024, compared to a provision of $2.3 million for the same period in 2023[155]. - The allowance for credit losses on loans was $84.5 million, or 1.12% of total loans, as of September 30, 2024, compared to $91.7 million, or 1.16%, as of December 31, 2023[184]. - The allowance for credit losses on unfunded commitments was $10.0 million as of September 30, 2024, down from $11.3 million at December 31, 2023[185]. Interest Income and Expense - Net interest income for the three months ended September 30, 2024, was $101.5 million, a decrease of $5.2 million, or 4.9%, compared to $106.7 million for the same period in 2023, primarily due to increased funding costs[137]. - Interest income for the three months ended September 30, 2024, was $151.8 million, an increase of $507 thousand, or 0.3%, compared to $151.3 million for the same period in 2023, driven by higher-yielding securities and loans[138]. - Interest expense for the three months ended September 30, 2024, was $50.3 million, an increase of $5.7 million, or 12.8%, compared to $44.5 million for the same period in 2023, primarily due to higher funding costs[139]. - Interest income increased to $452.4 million for the nine months ended September 30, 2024, up $13.7 million, or 3.1%, from $438.6 million in the same period in 2023[147]. - Interest expense rose to $147.3 million for the nine months ended September 30, 2024, an increase of $39.5 million, or 36.7%, compared to $107.8 million for the same period in 2023[148]. - The cost of average interest-bearing liabilities increased to 3.50% for the nine months ended September 30, 2024, compared to 2.68% for the same period in 2023[148]. - The average rate paid on interest-bearing liabilities increased by 82 basis points over the same period in 2023[149]. Financial Performance - Net income for the three months ended September 30, 2024, was $33.9 million, or $0.63 per diluted share, compared to $30.9 million, or $0.58 per diluted share for the same period in 2023, reflecting an increase primarily due to an $8.3 million decrease in the provision for credit losses[134]. - Annualized return on average assets for the three months ended September 30, 2024, was 1.27%, up from 1.14% in the same period of 2023, while return on average equity increased to 8.49% from 8.34%[135]. - For the nine months ended September 30, 2024, net income was $89.8 million, or $1.68 per diluted share, compared to $103.2 million, or $1.94 per diluted share for the same period in 2023, primarily due to a $25.8 million decrease in net interest income[136]. - Noninterest income increased by $1.6 million, or 34.2%, to $6.3 million for the three months ended September 30, 2024, compared to $4.7 million for the same period in 2023[156]. - Noninterest income for the nine months ended September 30, 2024, totaled $18.0 million, an increase of $338 thousand, or 1.9%, compared to $17.7 million for the same period in 2023[157]. Loan Portfolio and Asset Quality - Total loans decreased by $374.0 million, or 4.7%, to $7.55 billion as of September 30, 2024, compared to December 31, 2023[168]. - The commercial and industrial loan portfolio decreased by $61.1 million, or 4.3%, to $1.35 billion as of September 30, 2024[169]. - Commercial real estate loans decreased by $95.5 million, or 2.3%, to $3.98 billion as of September 30, 2024[172]. - Commercial real estate construction and land development loans decreased by $170.1 million, or 16.0%, to $890.3 million as of September 30, 2024[174]. - The residential real estate loan portfolio increased by $65.1 million, or 6.2%, to $1.11 billion as of September 30, 2024, compared to December 31, 2023[175]. - The residential construction loans portfolio decreased by $105.9 million, or 39.6%, to $161.5 million as of September 30, 2024, from $267.4 million as of December 31, 2023[176]. - The consumer and other loan portfolio decreased by $4.3 million, or 6.6%, to $60.0 million as of September 30, 2024, from $64.3 million as of December 31, 2023[177]. - Nonperforming assets totaled $35.1 million, or 0.33% of total assets, at September 30, 2024, down from $39.2 million, or 0.37%, at December 31, 2023[180]. - Total nonperforming loans amounted to $32.14 million as of September 30, 2024, compared to $39.19 million at December 31, 2023[181]. - Total charge-offs for all loan types amounted to $5.855 million for the nine months ended September 30, 2024, compared to $9.721 million for the same period in 2023[184]. Deposits and Funding - Total deposits as of September 30, 2024, were $8.74 billion, a decrease of $130.9 million, or 1.5%, from $8.87 billion at December 31, 2023[198]. - Noninterest-bearing deposits decreased by $243.8 million, or 6.9%, to $3.30 billion, while interest-bearing deposits increased by $112.9 million, or 2.1%, to $5.44 billion[198]. - The company had a total borrowing capacity of $2.98 billion as of September 30, 2024, with $1.86 billion available and $1.12 billion outstanding[200]. - Total immediate contingent funding sources were $4.33 billion, or 49.6% of total deposits at September 30, 2024, with an additional potential $1.55 billion from brokered deposits, bringing total contingent funding sources to approximately $5.89 billion, or 67.4% of deposits[214]. Capital and Equity - Total shareholders' equity increased to $1.63 billion at September 30, 2024, up from $1.52 billion at December 31, 2023, primarily due to net income of $89.8 million[219]. - The Bank was well-capitalized under regulatory capital guidelines, with total capital to risk-weighted assets at 15.91% as of September 30, 2024, exceeding the minimum required ratio of 8.0%[221]. - Common Equity Tier 1 capital to risk-weighted assets was 13.62% as of September 30, 2024, above the minimum required ratio of 4.5%[221]. Interest Rate Risk Management - The Asset Liability Committee (ALCO) manages interest rate risk by formulating strategies based on the current outlook on interest rates and other factors[226]. - During the nine months ended September 30, 2024, the overall interest rate profile was affected by a decrease in noninterest-bearing deposits and certain interest-bearing deposits, alongside increases in certificates of deposits and borrowed funds[228]. - A simulation model estimates the potential impact on net interest income under various interest rate scenarios, with a +300 basis points change resulting in a 5.9% increase in net interest income[229]. - The economic value of equity is projected to change by -4.9% with a -200 basis points interest rate change, compared to a 0.0% change in a stable rate scenario[229]. - The company does not face foreign exchange rate or commodity price risk, focusing instead on managing interest rate exposure through balance sheet structuring[225]. Operational and Regulatory Compliance - The effectiveness of the company's disclosure controls and procedures was confirmed by the Chief Executive Officer and Chief Financial Officer as of the end of the reporting period[230]. - There were no changes in the company's internal control over financial reporting that materially affected its operations during the quarter ended September 30, 2024[231]. - The company is not currently involved in any legal proceedings that would materially affect its business or financial condition[232].

Financial Data and Key Metrics Changes - The company reported a net income of $33.9 million or $0.63 per diluted share for Q3 2024, an increase from $29.8 million or $0.56 per diluted share in Q2 2024, resulting in an annualized ROAA of 1.27% and ROATCE of 13.63% [7] - Net interest income for the quarter was $101.5 million, slightly up from $101.4 million in Q2 2024, with a net interest margin of 4.19% compared to 4.24% in the previous quarter [9] - The allowance for credit losses on loans decreased to $84.5 million or 1.12% of loans from $94.8 million or 1.23% at the end of Q2 2024, reflecting a decrease in non-performing loans by nearly 37% [11] Business Line Data and Key Metrics Changes - The company originated over $300 million in loans during Q3 2024, which was $50 million more than in Q2 2024, but payoffs were $230 million, leading to a net decline in loans [15][16] - Non-interest income increased to $6.3 million in Q3 2024 from $5.4 million in Q2 2024, benefiting from $1.3 million of SEIC income and a small gain on asset sales [11] Market Data and Key Metrics Changes - The company noted that Texas markets continue to exhibit strength relative to the rest of the country, contributing to a positive outlook for growth into 2025 [14] - The deposit costs were reduced ahead of Federal Reserve cuts, with new accounts opened at a lower rate than previous quarters, indicating strong customer sentiment [18][19] Company Strategy and Development Direction - The company is focused on building a strong infrastructure to cross the $10 billion mark, emphasizing capital liquidity and credit while derisking the balance sheet [5] - Management is considering M&A opportunities to enhance growth, particularly looking for well-balanced franchises that can improve funding profiles [6][27] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, anticipating a more balanced lending philosophy and strong relationships to support both sides of the balance sheet [5] - The company is preparing for potential economic changes post-presidential election and believes that interest rates are normalizing, which could provide a favorable environment for growth in 2025 [5][22] Other Important Information - The company has started share repurchases, buying back 108,000 shares at an average price of $26.10, and plans to redeem $40 million of subordinated debt in December [13] - The tangible book value per share has grown by 37.5% since the merger, reflecting strong internal capital generation [12] Q&A Session Summary Question: Loan dynamics and growth outlook - Management noted that loan originations were $300 million, with payoffs of $230 million, indicating a cautious approach to growth due to market conditions [15][16] Question: Deposit front and customer sentiment - The company reported strong account openings in Q3, with new accounts coming in at a lower rate than previous quarters, indicating positive customer sentiment [18] Question: Margin trajectory and loan yield repricing - Management expressed confidence in defending the net interest margin and indicated potential for upward repricing opportunities as fixed-rate loans pay down [20][38] Question: M&A activity and market conditions - Management is actively exploring M&A opportunities but emphasized the importance of finding the right partner to enhance growth and manage expenses effectively [27]

Core Insights - Stellar Bancorp reported revenue of $107.81 million for Q3 2024, a year-over-year decline of 3.2% but a surprise of +1.87% over the Zacks Consensus Estimate of $105.83 million [1] - The EPS for the same period was $0.63, compared to $0.58 a year ago, with an EPS surprise of +28.57% against the consensus estimate of $0.49 [1] Financial Performance Metrics - Net interest margin (tax equivalent) was 4.2%, exceeding the three-analyst average estimate of 4.1% [1] - Efficiency Ratio stood at 66.2%, slightly better than the three-analyst average estimate of 66.6% [1] - Total nonperforming loans were reported at $32.14 million, significantly lower than the two-analyst average estimate of $51.14 million [1] - Average balance of total interest-earning assets was $9.64 billion, close to the $9.66 billion average estimate based on two analysts [1] - Total nonperforming assets were $35.12 million, compared to the two-analyst average estimate of $52.38 million [1] - Net Interest Income was $101.51 million, surpassing the $100.30 million estimated by three analysts on average [1] - Net Interest Income (tax equivalent) was $101.58 million, exceeding the three-analyst average estimate of $100.39 million [1] - Total Non-Interest Income was $6.30 million, higher than the $5.54 million estimated by three analysts on average [1] Stock Performance - Shares of Stellar Bancorp have returned +2.5% over the past month, outperforming the Zacks S&P 500 composite's +1.4% change [1] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [1]

Financial Performance - Stellar Bancorp reported quarterly earnings of $0.63 per share, exceeding the Zacks Consensus Estimate of $0.49 per share, and up from $0.58 per share a year ago, representing an earnings surprise of 28.57% [1] - The company posted revenues of $107.81 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 1.87%, although this is a decline from year-ago revenues of $111.42 million [1] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.48 on revenues of $106.5 million, and for the current fiscal year, it is $2.01 on revenues of $427.67 million [4] - The estimate revisions trend for Stellar Bancorp is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [4] Industry Context - The Banks - Southeast industry, to which Stellar Bancorp belongs, is currently in the bottom 45% of over 250 Zacks industries, suggesting that the industry outlook may negatively impact the stock's performance [5] - Customers Bancorp, another company in the same industry, is expected to report a significant decline in earnings, with a projected EPS of $1.45, down 44% year-over-year, and revenues expected to decrease by 11.5% [5]

Financial Performance - Net income for Q3 2024 was $33.9 million, or diluted earnings per share of $0.63, compared to $29.8 million, or $0.56 per share in Q2 2024[1][2] - Net income for Q3 2024 was $33,891 thousand, an increase from $29,753 thousand in the previous quarter[28] - Basic and diluted earnings per share for Q3 2024 were both $0.63, up from $0.56 in Q3 2023, representing a 12.5% increase[19] - Net interest income after provision for credit losses was $107,492,000 for Q3 2024, compared to $103,345,000 in Q2 2024[18] - Total noninterest income increased to $6,302,000 in Q3 2024, compared to $5,416,000 in Q2 2024[18] - Total noninterest expense for Q3 2024 was $71,066,000, a decrease from $71,216,000 in Q2 2024[18] - Net interest income for the nine months ended September 30, 2024, was $305,035 thousand, down from $330,829 thousand, representing a decrease of 7.8%[25] Asset and Liability Management - Total assets decreased by $93.9 million to $10.63 billion at September 30, 2024, from $10.72 billion at June 30, 2024[7] - Total liabilities amounted to $9,038,348 thousand, with shareholders' equity at $1,587,918 thousand[24] - Total liabilities decreased to $9,093,990 thousand from $9,338,089 thousand, a reduction of 2.62%[25] - Total deposits increased slightly to $8,742,601 thousand from $8,725,303 thousand, an increase of approximately 0.20%[16] - Total deposits increased slightly to $8,742,601 thousand from $8,725,303 thousand, an increase of 0.2%[26] Capital and Equity - Total risk-based capital ratio increased to 15.91% at September 30, 2024, up from 15.34% at June 30, 2024[4] - Total shareholders' equity rose to $1,626,123 thousand from $1,565,795 thousand, an increase of approximately 3.86%[16] - Shareholders' equity increased to $1,551,579 thousand from $1,449,382 thousand, reflecting a growth of 7.06%[25] - Tangible shareholders' equity increased to $1,030,689 thousand from $964,162 thousand in the previous quarter[28] Loan Performance - Nonperforming loans decreased by $18.8 million to $32.1 million at September 30, 2024, from $50.9 million at June 30, 2024[4] - Total loans decreased by $162.8 million to $7.55 billion at September 30, 2024, compared to $7.71 billion at June 30, 2024[8] - Nonaccrual loans decreased significantly to $32,140 thousand from $50,906 thousand, a reduction of 37.0%[26] - Loans held for investment decreased to $7,551,124 thousand from $7,713,897 thousand, a decrease of about 2.1%[16] Efficiency and Ratios - The efficiency ratio improved to 66.18% in Q3 2024 from 66.63% in Q2 2024[7] - Return on average assets improved to 1.27% in Q3 2024, compared to 1.13% in Q3 2023[19] - Estimated Tier 1 capital to risk-weighted assets was 13.74% as of September 30, 2024, up from 13.10% in June 2024[20] - Nonperforming assets to total assets ratio improved to 0.33% from 0.50%[26] Shareholder Returns - Dividends per share remained stable at $0.13 for both Q3 2024 and Q3 2023[19] - The company repurchased 108,984 shares at an average price of $26.10 during Q3 2024[8] Non-GAAP Measures - The company reported a tangible book value per share, which is a key non-GAAP financial measure, for internal planning and forecasting purposes[27] - Stellar's management emphasizes the importance of non-GAAP financial measures for evaluating performance and making comparisons[27] - The company continues to focus on pre-tax, pre-provision income as a significant performance metric[27] - Stellar's management believes that non-GAAP measures provide meaningful supplemental information regarding its performance[27]

Income Generation - The company generates most of its income from interest income on loans, investments in securities, and service charges on customer accounts[119]. - Interest income for the first half of 2024 was $300.6 million, an increase of $13.2 million, or 4.6%, compared to $287.4 million in the first half of 2023[156]. - Net interest income for Q2 2024 was $101.4 million, a decrease of $6.9 million, or 6.3%, compared to Q2 2023, attributed to increased funding costs[145]. Credit Losses and Reserves - The allowance for credit losses is based on estimates of expected losses in performing loans, specifically identified losses, and qualitative factors related to economic conditions[124]. - As of June 30, 2024, a 5% increase in historical loss rates would have increased funded reserves by $1.8 million, while a 5% increase in qualitative risk factors would have increased reserves by $3.1 million[129]. - The provision for credit losses for the six months ended June 30, 2024 was $2,200 thousand, down from $5,600 thousand in 2023, indicating a decrease of 60.7%[165]. Financial Performance - Net income for Q2 2024 was $29.8 million, or $0.56 per diluted share, down from $35.2 million, or $0.66 per diluted share in Q2 2023, primarily due to a $6.9 million decrease in net interest income[141]. - Annualized return on average assets for Q2 2024 was 1.13%, down from 1.31% in Q2 2023, while return on average equity decreased to 7.78% from 9.67%[142]. - For the first half of 2024, net income was $55.9 million, or $1.04 per diluted share, down from $72.3 million, or $1.36 per diluted share in the same period of 2023[143]. Interest Rates and Margins - The company’s net interest margin is calculated as net interest income divided by average interest-earning assets, including noninterest-bearing sources[119]. - Tax equivalent net interest margin for Q2 2024 was 4.24%, a decrease of 25 basis points from 4.49% in Q2 2023, primarily due to increased funding costs[149]. - The net interest margin for the six months ended June 30, 2024 was 4.25%, down from 4.63% in 2023, reflecting a decrease of 8.2%[161]. Asset and Liability Management - The company assesses the overall quality of the loan portfolio and the adequacy of the allowance for credit losses through a loan review program[126]. - The carrying amount of investment securities increased to $1.63 billion, a rise of $235.3 million, or 16.9%, from $1.40 billion as of December 31, 2023[200]. - The total amount of time deposits exceeding the FDIC insurance limit of $250,000 was $531.3 million as of June 30, 2024[210]. Market Conditions and Economic Factors - Economic uncertainty and market volatility in 2023 led to a decrease in the company's stock price and market capitalization, triggering an interim goodwill impairment analysis[133]. - Fluctuations in market interest rates are driven by factors such as governmental monetary policies, inflation, and macroeconomic developments[122]. - The company continues to evaluate economic conditions for potential goodwill impairment, which could materially impact financial results[138]. Nonperforming Assets - Nonperforming assets totaled $53.5 million, or 0.50% of total assets, at June 30, 2024, compared to $39.2 million, or 0.37%, at December 31, 2023[193]. - Nonperforming loans to total loans ratio increased to 0.66% as of June 30, 2024, compared to 0.49% as of December 31, 2023[194]. - The allowance for credit losses on loans was $94.8 million, or 1.23% of total loans, compared to $91.7 million, or 1.16% of total loans, as of December 31, 2023, indicating a rise in the allowance[197]. Operational Efficiency - The efficiency ratio was 66.63% for the three months ended June 30, 2024, compared to 60.83% for the same period in 2023, indicating a decrease in operational efficiency[176]. - Total noninterest expense for the three months ended June 30, 2024, was $71.2 million, an increase of $2.0 million (2.9%) compared to $69.2 million in 2023[172]. - Salaries and employee benefits increased by $1.8 million (4.7%) for the three months ended June 30, 2024, and by $3.4 million (4.4%) for the six months ended June 30, 2024, compared to the same periods in 2023[173]. Capital and Liquidity - Total shareholders' equity increased to $1.57 billion at June 30, 2024, up from $1.52 billion at December 31, 2023, primarily due to net income of $55.9 million[235]. - The Company maintained a total capital ratio of 15.34% to risk-weighted assets as of June 30, 2024, well above the minimum required ratio of 8.0%[237]. - The liquidity position is continuously monitored, with stress scenarios incorporated into the contingency funding plan to assess potential liquidity outflows[226]. Regulatory Compliance - The Bank was classified as well-capitalized under regulatory capital guidelines as of June 30, 2024[235]. - The company maintained compliance with all debt covenants under its loan agreement as of June 30, 2024[214]. - The company’s disclosure controls and procedures were deemed effective as of the end of the reporting period[245].

Houston's Largest Regionally Focused Bank 3 Stable Credit Performance: Net charge-offs of $715 thousand, or 0.02%, for the year-to-date 2024. As of June 30, 2024: | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |----------------------------------------------------------------------------------------------------------------|----------------------|-------|------------------------------------------|-----------------------|----------------------------|------------------------|--------- ...

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 ...

Company Performance - Stellar Bancorp reported quarterly earnings of $0.56 per share, exceeding the Zacks Consensus Estimate of $0.48 per share, but down from $0.66 per share a year ago [1] - The company posted revenues of $106.83 million for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 0.50%, but down from $113.76 million year-over-year [4] - The earnings surprise for the quarter was 16.67%, with a previous quarter's earnings of $0.49 per share also exceeding expectations [3] Market Comparison - Stellar Bancorp shares have declined approximately 1.2% since the beginning of the year, while the S&P 500 has gained 13.2% [5] - The current consensus EPS estimate for the upcoming quarter is $0.47 on revenues of $107.47 million, and for the current fiscal year, it is $1.93 on revenues of $430.23 million [9] Industry Outlook - The Zacks Industry Rank for Banks - Southeast is in the top 37% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [10] - National Bankshares, another company in the same industry, is expected to report quarterly earnings of $0.32 per share, reflecting a year-over-year decline of 51.5% [11]