Stellar Bancorp, Inc. (NYSE:STEL) Q4 2023 Earnings Conference Call January 26, 2024 9:00 AM ET Company Participants Courtney Theriot - Chief Accounting Officer Robert Franklin - CEO Paul Egge - CFO Ramon Vitulli - President & CEO of the Bank Conference Call Participants David Feaster - Raymond James Matt Olney - Stephens John Rodis - Janney Operator Good morning. My name is Crista, and I'll be your conference operator today. At this times, I would like to welcome everyone to the Stellar Bancorp Fourth Quart ...

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 SEPTEMBER 30, 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. (NYSE:STEL) Q3 2023 Earnings Conference Call October 27, 2023 9:00 AM ET Company Participants Courtney Theriot - Chief Accounting Officer Bob Franklin - Chief Executive Officer Paul Egge - Chief Financial Officer Ray Vitulli - President and Chief Executive Officer of the Bank Conference Call Participants Eric Spector - Raymond James Will Jones - KBW Graham Dick - Piper Sandler John Rodis - Janney Matt Olney - Stephens Operator Good day, and thank you for standing by. Welcome to the Ste ...

Second Quarter 2023 Earnings Presentation Forward-Looking Statements and Non-GAAP Financial Measures Certain statements in this press release which are not historical in nature are intended to be, and are hereby identified as, "forward-looking statements" for purposes of the safe harbor provided by Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include, but are not limited to, statements about the benefits of the me ...

Stellar Bancorp, Inc. (NYSE:STEL) Q2 2023 Earnings Conference Call July 28, 2023 9:00 AM ET Company Participants Courtney Theriot - Chief Accounting Officer Robert Franklin - CEO Paul Egge - SEVP, CFO Ramon Vitulli - President Joe West - SEVP, Chief Credit Officer Conference Call Participants David Feaster - Raymond James Matt Olney - Stephens William Jones - KBW Graham Dick - Piper Sandler John Rodis - Janney Operator Good day, and thank you for standing by. Welcome to the Stellar Bancorp Inc. reports Seco ...

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 JUNE 30, 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 ____________________ ...

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, 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 ___________________ ...

First Quarter 2023 Earnings Presentation These statements include, but are not limited to, statements about the benefits of the merger of equals (the "Merger") between Allegiance Bancshares, Inc. and CBTX, Inc. which became effective on October 1, 2022, including future financial performance and operating results, the Company's plans, business and growth strategies, objectives, expectations and intentions, and other statements that are not historical facts, including projections of macroeconomic and industr ...

Financial Data and Key Metrics Changes - The net income for Q1 2023 was $37.1 million, with diluted earnings per share of $0.70, an annualized return on assets (ROA) of 1.38%, and a return on tangible common equity of 19.32% [11] - The adjusted net interest margin (NIM) was stable at 4.38%, consistent with the previous quarter, despite industry pressures [12] - Tangible book value per share increased by 8.7% from $14.02 to $15.24, and tangible equity to tangible assets rose to 8.15% from 7.24% in the previous quarter [25] Business Line Data and Key Metrics Changes - Deposits decreased by $529 million or 5.8% from $9.3 billion at year-end to $8.7 billion, with a significant portion attributed to seasonal factors and government banking group activities [14] - The bank originated approximately $530 million in loans at an average rate of 7.59%, up nearly 100 basis points from the previous quarter [35] - The average account balance was $81,000, excluding government deposits, with uninsured deposits net of collateralized deposits at about $4.1 billion, representing 46.4% of total deposits [22] Market Data and Key Metrics Changes - The bank's liquidity position is strong, with immediate liquidity sources of $4.5 billion covering about 110% of uninsured deposits [23] - The bank's strategy has focused on maintaining core funding and managing liquidity effectively in a competitive deposit market [20][21] Company Strategy and Development Direction - The company aims to maintain strong margins and pre-tax pre-provision earnings power while prudently managing the liability side of the balance sheet [13] - The management emphasized a cautious approach to new credit, particularly in the commercial real estate sector, while seeking strategic opportunities [37][38] - The company is positioned to take advantage of opportunities as the Federal Reserve concludes its rate hikes, with a focus on building capital and maintaining liquidity [15][27] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by the failures of Silicon Valley Bank and Signature Bank, but expressed confidence in their strong customer relationships [7][9] - The management believes that the current operating environment, characterized by rising interest rates, presents both challenges and opportunities for the bank [10][27] - The future outlook for Stellar Bancorp is positive, with expectations of continued growth and stability in a robust market [15][27] Other Important Information - The company completed a successful system conversion of merged banks, enhancing operational efficiency [6] - The management highlighted the importance of maintaining a favorable mix of non-interest bearing deposits, which accounted for 44.4% of total deposits [21] Q&A Session Summary Question: Deposit trends in the quarter - Management noted that outflows were primarily driven by rate peaking and seasonal factors, with no significant increase in account closures [33][34] Question: Loan pricing dynamics - The bank originated loans at higher rates, with new loans averaging 7.59% and renewed loans at 7.63%, indicating successful repricing opportunities [35][36] Question: Risk-adjusted returns and cautious areas - Management is cautious about new credit in commercial real estate but sees opportunities in C&I loans and residential construction [39][40] Question: Liquidity profile and securities sales - The bank is open to opportunistic sales of securities to improve liquidity but does not feel pressured to do so at this time [45][46] Question: Cost savings and expense management - Management is on track with cost savings from the merger and expects to maintain a stable expense base moving forward [47][48] Question: Capital accretion and buyback considerations - The management is considering buybacks but wants to navigate current uncertainties before making decisions [83]

Table of Contents 21 UNITED 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, 2022 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) (State or other jurisdiction ...