Stellar Bancorp(STEL) - 2024 Q3 - Quarterly Results

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]