2023 | 2022 | |||||||||
September 30 | June 30 | March 31 | December 31 | September 30 | ||||||
(Dollars in thousands) | ||||||||||
ASSETS | ||||||||||
Cash and due from banks | $ | 94,970 | $ | 105,913 | $ | 99,231 | $ | 67,063 | $ | 16,449 |
Interest-bearing deposits at other financial institutions | 207,302 | 198,176 | 164,102 | 304,642 | 102,118 | |||||
Total cash and cash equivalents | 302,272 | 304,089 | 263,333 | 371,705 | 118,567 | |||||
Available for sale securities, at fair value | 1,414,952 | 1,478,222 | 1,519,175 | 1,807,586 | 1,618,995 | |||||
Loans held for investment | 8,004,528 | 8,068,718 | 7,886,044 | 7,754,751 | 4,591,912 | |||||
Less: allowance for credit losses on loans | (93,575) | (100,195) | (96,188) | (93,180) | (52,147) | |||||
Loans, net | 7,910,953 | 7,968,523 | 7,789,856 | 7,661,571 | 4,539,765 | |||||
Accrued interest receivable | 43,536 | 42,051 | 42,405 | 44,743 | 29,697 | |||||
Premises and equipment, net | 119,332 | 119,142 | 124,723 | 126,803 | 57,837 | |||||
Federal Home Loan Bank stock | 29,022 | 24,478 | 19,676 | 15,058 | 16,843 | |||||
Bank-owned life insurance | 104,699 | 104,148 | 103,616 | 103,094 | 28,305 | |||||
Goodwill | 497,318 | 497,260 | 497,260 | 497,260 | 223,642 | |||||
Core deposit intangibles, net | 122,944 | 129,805 | 136,665 | 143,525 | 12,406 | |||||
Other assets | 120,432 | 110,633 | 108,009 | 129,092 | 84,285 | |||||
Total assets | $ | 10,665,460 | $ | 10,778,351 | $ | 10,604,718 | $ | 10,900,437 | $ | 6,730,342 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||
LIABILITIES: | ||||||||||
Deposits: | ||||||||||
Noninterest-bearing | $ | 3,656,288 | $ | 3,713,536 | $ | 3,877,859 | $ | 4,230,169 | $ | 2,465,839 |
Interest-bearing | ||||||||||
Demand | 1,397,492 | 1,437,509 | 1,394,244 | 1,591,828 | 956,920 | |||||
Money market and savings | 2,128,950 | 2,174,073 | 2,401,840 | 2,575,923 | 1,471,690 | |||||
Certificates and other time | 1,503,891 | 1,441,251 | 1,064,932 | 869,712 | 766,270 | |||||
Total interest-bearing deposits | 5,030,333 | 5,052,833 | 4,861,016 | 5,037,463 | 3,194,880 | |||||
Total deposits | 8,686,621 | 8,766,369 | 8,738,875 | 9,267,632 | 5,660,719 | |||||
Accrued interest payable | 7,612 | 4,555 | 3,875 | 2,098 | 2,673 | |||||
Borrowed funds | 323,981 | 369,963 | 238,944 | 63,925 | 257,000 | |||||
Subordinated debt | 109,665 | 109,566 | 109,420 | 109,367 | 109,241 | |||||
Other liabilities | 76,735 | 69,218 | 67,388 | 74,239 | 44,407 | |||||
Total liabilities | 9,204,614 | 9,319,671 | 9,158,502 | 9,517,261 | 6,074,040 | |||||
SHAREHOLDERS' EQUITY: | ||||||||||
Common stock | 533 | 533 | 533 | 530 | 281 | |||||
Capital surplus | 1,231,686 | 1,228,532 | 1,225,596 | 1,222,761 | 511,434 | |||||
Retained earnings | 385,600 | 361,619 | 333,368 | 303,146 | 307,975 | |||||
Accumulated other comprehensive loss | (156,973) | (132,004) | (113,281) | (143,261) | (163,388) | |||||
Total shareholders' equity | 1,460,846 | 1,458,680 | 1,446,216 | 1,383,176 | 656,302 | |||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 10,665,460 | $ | 10,778,351 | $ | 10,604,718 | $ | 10,900,437 | $ | 6,730,342 |
Three Months Ended | Nine Months Ended | |||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||
September 30 | June 30 | March 31 | December 31 | September 30 | September 30 | September 30 | ||||||||
(Dollars in thousands, except per share data) | ||||||||||||||
INTEREST INCOME: | ||||||||||||||
Loans, including fees | $ | 138,948 | $ | 133,931 | $ | 125,729 | $ | 116,145 | $ | 58,025 | $ | 398,608 | $ | 164,230 |
Securities: | ||||||||||||||
Taxable | 9,493 | 9,726 | 9,653 | 9,834 | 6,655 | 28,872 | 17,294 | |||||||
Tax-exempt | 437 | 436 | 1,262 | 3,057 | 2,594 | 2,135 | 7,676 | |||||||
Deposits in other financial institutions | 2,391 | 2,865 | 3,771 | 2,933 | 608 | 9,027 | 1,825 | |||||||
Total interest income | 151,269 | 146,958 | 140,415 | 131,969 | 67,882 | 438,642 | 191,025 | |||||||
INTEREST EXPENSE: | ||||||||||||||
Demand, money market and savings deposits | 23,557 | 20,708 | 18,037 | 12,406 | 3,527 | 62,302 | 6,733 | |||||||
Certificates and other time deposits | 13,282 | 9,622 | 3,307 | 2,083 | 1,664 | 26,211 | 5,742 | |||||||
Borrowed funds | 5,801 | 6,535 | 1,317 | 417 | 499 | 13,653 | 799 | |||||||
Subordinated debt | 1,908 | 1,812 | 1,927 | 1,449 | 1,502 | 5,647 | 4,407 | |||||||
Total interest expense | 44,548 | 38,677 | 24,588 | 16,355 | 7,192 | 107,813 | 17,681 | |||||||
NET INTEREST INCOME | 106,721 | 108,281 | 115,827 | 115,614 | 60,690 | 330,829 | 173,344 | |||||||
Provision for credit losses | 2,315 | 1,915 | 3,666 | 44,793 | 1,962 | 7,896 | 5,919 | |||||||
Net interest income after provision for credit losses | 104,406 | 106,366 | 112,161 | 70,821 | 58,728 | 322,933 | 167,425 | |||||||
NONINTEREST INCOME: | ||||||||||||||
Nonsufficient funds and overdraft charges | 291 | 418 | 406 | 447 | 145 | 1,115 | 387 | |||||||
Service charges on deposit accounts | 1,329 | 1,157 | 943 | 1,242 | 527 | 3,429 | 1,614 | |||||||
(Loss) gain on sale of assets | - | (6) | 198 | 4,025 | 42 | 192 | 25 | |||||||
Bank-owned life insurance | 551 | 532 | 522 | 515 | 135 | 1,605 | 610 | |||||||
Debit card and ATM income | 935 | 1,821 | 1,698 | 1,897 | 869 | 4,454 | 2,568 | |||||||
Other | 1,589 | 1,561 | 3,731 | 2,511 | 1,277 | 6,881 | 4,513 | |||||||
Total noninterest income | 4,695 | 5,483 | 7,498 | 10,637 | 2,995 | 17,676 | 9,717 | |||||||
NONINTEREST EXPENSE: | ||||||||||||||
Salaries and employee benefits | 39,495 | 37,300 | 39,775 | 40,949 | 22,013 | 116,570 | 66,605 | |||||||
Net occupancy and equipment | 4,455 | 3,817 | 4,088 | 3,781 | 2,129 | 12,360 | 6,554 | |||||||
Depreciation | 1,952 | 1,841 | 1,836 | 1,903 | 1,003 | 5,629 | 3,048 | |||||||
Data processing and software amortization | 4,798 | 4,674 | 5,054 | 3,776 | 2,541 | 14,526 | 7,561 | |||||||
Professional fees | 997 | 1,564 | 1,527 | 2,298 | 485 | 4,088 | 1,285 | |||||||
Regulatory assessments and FDIC insurance | 1,814 | 2,755 | 1,294 | 1,263 | 1,134 | 5,863 | 3,651 | |||||||
Amortization of intangibles | 6,876 | 6,881 | 6,879 | 7,051 | 750 | 20,636 | 2,252 | |||||||
Communications | 663 | 689 | 701 | 737 | 359 | 2,053 | 1,063 | |||||||
Advertising | 877 | 907 | 839 | 1,130 | 385 | 2,623 | 1,330 | |||||||
Acquisition and merger-related expenses | 3,421 | 2,897 | 6,165 | 11,469 | 10,551 | 12,483 | 12,669 | |||||||
Other | 5,400 | 5,882 | 4,440 | 5,267 | 2,681 | 15,722 | 10,434 | |||||||
Total noninterest expense | 70,748 | 69,207 | 72,598 | 79,624 | 44,031 | 212,553 | 116,452 | |||||||
INCOME BEFORE INCOME TAXES | 38,353 | 42,642 | 47,061 | 1,834 | 17,692 | 128,056 | 60,690 | |||||||
Provision for income taxes | 7,445 | 7,467 | 9,913 | (218) | 3,406 | 24,825 | 11,310 | |||||||
NET INCOME | $ | 30,908 | $ | 35,175 | $ | 37,148 | $ | 2,052 | $ | 14,286 | $ | 103,231 | $ | 49,380 |
EARNINGS PER SHARE | ||||||||||||||
Basic | $ | 0.58 | $ | 0.66 | $ | 0.70 | $ | 0.04 | $ | 0.51 | $ | 1.94 | $ | 1.72 |
Diluted | $ | 0.58 | $ | 0.66 | $ | 0.70 | $ | 0.04 | $ | 0.50 | $ | 1.94 | $ | 1.71 |
Three Months Ended | Nine Months Ended | |||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||
September 30 | June 30 | March 31 | December 31 | September 30 | September 30 | September 30 | ||||||||
(Dollars and share amounts in thousands, except per share data) | ||||||||||||||
Net income | $ | 30,908 | $ | 35,175 | $ | 37,148 | $ | 2,052 | $ | 14,286 | $ | 103,231 | $ | 49,380 |
Earnings per share, basic | $ | 0.58 | $ | 0.66 | $ | 0.70 | $ | 0.04 | $ | 0.51 | $ | 1.94 | $ | 1.72 |
Earnings per share, diluted | $ | 0.58 | $ | 0.66 | $ | 0.70 | $ | 0.04 | $ | 0.50 | $ | 1.94 | $ | 1.71 |
Dividends per share | $ | 0.13 | $ | 0.13 | $ | 0.13 | $ | 0.13 | $ | 0.10 | $ | 0.39 | $ | 0.30 |
Return on average assets(A)
| 1.14 | % | 1.31 | % | 1.38 | % | 0.07 | % | 0.84 | % | 1.28 | % | 0.94 | % |
Return on average equity(A)
| 8.34 | % | 9.67 | % | 10.62 | % | 0.60 | % | 7.90 | % | 9.52 | % | 8.74 | % |
Return on average tangible equity(A)(B)
| 14.47 | % | 17.05 | % | 19.32 | % | 1.16 | % | 11.78 | % | 16.86 | % | 12.75 | % |
Net interest margin (tax equivalent)(A)(C)
| 4.37 | % | 4.49 | % | 4.80 | % | 4.71 | % | 3.85 | % | 4.55 | % | 3.55 | % |
Net interest margin (tax equivalent) excluding PAA(A)(B)(C)
| 3.87 | % | 3.97 | % | 4.38 | % | 4.38 | % | 3.85 | % | 4.07 | % | 3.55 | % |
Efficiency ratio(D)
| 63.50 | % | 60.83 | % | 58.96 | % | 65.14 | % | 69.18 | % | 61.02 | % | 63.62 | % |
Capital Ratios | ||||||||||||||
Stellar Bancorp, Inc. (Consolidated) | ||||||||||||||
Equity to assets | 13.70 | % | 13.53 | % | 13.64 | % | 12.69 | % | 9.75 | % | 13.70 | % | 9.75 | % |
Tangible equity to tangible assets(B)
| 8.37 | % | 8.19 | % | 8.15 | % | 7.24 | % | 6.47 | % | 8.37 | % | 6.47 | % |
Total capital ratio (to risk-weighted assets) | 13.42 | % | 13.03 | % | 12.72 | % | 12.39 | % | 14.66 | % | 13.44 | % | 14.66 | % |
Common equity Tier 1 capital (to risk weighted assets)
| 11.14 | % | 10.67 | % | 10.39 | % | 10.04 | % | 11.39 | % | 11.14 | % | 11.39 | % |
Tier 1 capital (to risk-weighted assets)
| 11.25 | % | 10.78 | % | 10.50 | % | 10.15 | % | 11.58 | % | 11.25 | % | 11.58 | % |
Tier 1 leverage (to average tangible assets)
| 9.82 | % | 9.51 | % | 9.01 | % | 8.55 | % | 9.00 | % | 9.82 | % | 9.00 | % |
Stellar Bank | ||||||||||||||
Total capital ratio (to risk-weighted assets) | 13.13 | % | 12.80 | % | 12.42 | % | 12.02 | % | 14.12 | % | 13.16 | % | 14.12 | % |
Common equity Tier 1 capital (to risk-weighted assets)
| 11.63 | % | 11.22 | % | 10.87 | % | 10.46 | % | 12.20 | % | 11.63 | % | 12.20 | % |
Tier 1 capital (to risk-weighted assets)
| 11.63 | % | 11.22 | % | 10.87 | % | 10.46 | % | 12.20 | % | 11.63 | % | 12.20 | % |
Tier 1 leverage (to average tangible assets)
| 10.15 | % | 9.89 | % | 9.35 | % | 8.81 | % | 9.49 | % | 10.15 | % | 9.49 | % |
Other Data | ||||||||||||||
Weighted average shares: | ||||||||||||||
Basic | 53,313 | 53,297 | 53,021 | 52,715 | 28,286 | 53,211 | 28,679 | |||||||
Diluted | 53,380 | 53,375 | 53,138 | 52,973 | 28,530 | 53,300 | 28,901 | |||||||
Period end shares outstanding | 53,322 | 53,303 | 53,296 | 52,955 | 28,137 | 53,322 | 28,137 | |||||||
Book value per share | $ | 27.40 | $ | 27.37 | $ | 27.14 | $ | 26.12 | $ | 23.33 | $ | 27.40 | $ | 23.33 |
Tangible book value per share(B)
| $ | 15.76 | $ | 15.60 | $ | 15.24 | $ | 14.02 | $ | 14.94 | $ | 15.76 | $ | 14.94 |
Employees - full-time equivalents | 1,008 | 1,004 | 1,055 | 1,025 | 562 | 1,008 | 562 |
Three Months Ended | ||||||||||||||||||
September 30, 2023 | June 30, 2023 | September 30, 2022 | ||||||||||||||||
Average Balance |
Interest Earned/ Interest Paid | Average Yield/Rate | Average Balance |
Interest Earned/ Interest Paid | Average Yield/Rate | Average Balance |
Interest Earned/ Interest Paid | Average Yield/Rate | ||||||||||
(Dollars in thousands) | ||||||||||||||||||
Assets | ||||||||||||||||||
Interest-Earning Assets: | ||||||||||||||||||
Loans | $ | 8,043,706 | $ | 138,948 | 6.85 | % | $ | 7,980,856 | $ | 133,931 | 6.73 | % | $ | 4,456,174 | $ | 58,025 | 5.17 | % |
Securities | 1,471,916 | 9,930 | 2.68 | % | 1,502,949 | 10,162 | 2.71 | % | 1,709,470 | 9,249 | 2.15 | % | ||||||
Deposits in other financial institutions | 181,931 | 2,391 | 5.21 | % | 209,722 | 2,865 | 5.48 | % | 160,340 | 608 | 1.50 | % | ||||||
Total interest-earning assets | 9,697,553 | $ | 151,269 | 6.19 | % | 9,693,527 | $ | 146,958 | 6.08 | % | 6,325,984 | $ | 67,882 | 4.26 | % | |||
Allowance for credit losses on loans | (99,892) | (96,414) | (50,609) | |||||||||||||||
Noninterest-earning assets | 1,143,634 | 1,143,025 | 442,511 | |||||||||||||||
Total assets | $ | 10,741,295 | $ | 10,740,138 | $ | 6,717,886 | ||||||||||||
Liabilities and
Shareholders' Equity
| ||||||||||||||||||
Interest-Bearing Liabilities: | ||||||||||||||||||
Interest-bearing demand
deposits
| $ | 1,400,508 | $ | 10,415 | 2.95 | % | $ | 1,387,604 | $ | 9,343 | 2.70 | % | $ | 978,531 | $ | 2,380 | 0.96 | % |
Money market and savings
deposits
| 2,166,610 | 13,142 | 2.41 | % | 2,220,827 | 11,365 | 2.05 | % | 1,500,083 | 1,147 | 0.30 | % | ||||||
Certificates and other time
deposits
| 1,400,367 | 13,282 | 3.76 | % | 1,225,834 | 9,622 | 3.15 | % | 877,231 | 1,664 | 0.75 | % | ||||||
Borrowed funds | 411,212 | 5,801 | 5.60 | % | 479,896 | 6,535 | 5.46 | % | 68,752 | 499 | 2.88 | % | ||||||
Subordinated debt | 109,608 | 1,908 | 6.91 | % | 109,499 | 1,812 | 6.64 | % | 109,177 | 1,502 | 5.46 | % | ||||||
Total interest-bearing liabilities | 5,488,305 | $ | 44,548 | 3.22 | % | 5,423,660 | $ | 38,677 | 2.86 | % | 3,533,774 | $ | 7,192 | 0.81 | % | |||
Noninterest-Bearing
Liabilities:
| ||||||||||||||||||
Noninterest-bearing demand
deposits
| 3,695,592 | 3,779,594 | 2,424,884 | |||||||||||||||
Other liabilities | 86,389 | 78,411 | 41,792 | |||||||||||||||
Total liabilities | 9,270,286 | 9,281,665 | 6,000,450 | |||||||||||||||
Shareholders' equity | 1,471,009 | 1,458,473 | 717,436 | |||||||||||||||
Total liabilities and
shareholders' equity
| $ | 10,741,295 | $ | 10,740,138 | $ | 6,717,886 | ||||||||||||
Net interest rate spread | 2.97 | % | 3.22 | % | 3.45 | % | ||||||||||||
Net interest income and margin | $ | 106,721 | 4.37 | % | $ | 108,281 | 4.48 | % | $ | 60,690 | 3.81 | % | ||||||
Net interest income and net
interest margin (tax equivalent)
| $ | 106,919 | 4.37 | % | $ | 108,509 | 4.49 | % | $ | 61,418 | 3.85 | % | ||||||
Cost of funds | 1.92 | % | 1.69 | % | 0.48 | % | ||||||||||||
Cost of deposits | 1.69 | % | 1.41 | % | 0.36 | % |
Nine Months Ended September 30, | ||||||||||||
2023 | 2022 | |||||||||||
Average Balance |
Interest Earned/ Interest Paid |
Average Yield/ Rate | Average Balance |
Interest Earned/ Interest Paid | Average Yield/Rate | |||||||
(Dollars in thousands) | ||||||||||||
Assets | ||||||||||||
Interest-Earning Assets: | ||||||||||||
Loans | $ | 7,957,911 | $ | 398,608 | 6.70 | % | $ | 4,331,288 | $ | 164,230 | 5.07 | % |
Securities | 1,525,808 | 31,007 | 2.72 | % | 1,774,149 | 24,970 | 1.88 | % | ||||
Deposits in other financial institutions | 251,475 | 9,027 | 4.80 | % | 498,456 | 1,825 | 0.49 | % | ||||
Total interest-earning assets | 9,735,194 | $ | 438,642 | 6.02 | % | 6,603,893 | $ | 191,025 | 3.87 | % | ||
Allowance for credit losses on loans | (96,570) | (49,422) | ||||||||||
Noninterest-earning assets | 1,148,847 | 441,767 | ||||||||||
Total assets | $ | 10,787,471 | $ | 6,996,238 | ||||||||
Liabilities and Shareholders' Equity | ||||||||||||
Interest-Bearing Liabilities: | ||||||||||||
Interest-bearing demand deposits | $ | 1,478,547 | $ | 28,141 | 2.54 | % | $ | 1,031,006 | $ | 3,856 | 0.50 | % |
Money market and savings deposits | 2,291,588 | 34,161 | 1.99 | % | 1,549,969 | 2,877 | 0.25 | % | ||||
Certificates and other time deposits | 1,164,572 | 26,211 | 3.01 | % | 1,069,011 | 5,742 | 0.72 | % | ||||
Borrowed funds | 333,220 | 13,653 | 5.48 | % | 69,492 | 799 | 1.54 | % | ||||
Subordinated debt | 109,508 | 5,647 | 6.89 | % | 109,046 | 4,407 | 5.40 | % | ||||
Total interest-bearing liabilities | 5,377,435 | $ | 107,813 | 2.68 | % | 3,828,524 | 17,681 | 0.62 | % | |||
Noninterest-Bearing Liabilities: | ||||||||||||
Noninterest-bearing demand deposits | 3,878,760 | 2,373,489 | ||||||||||
Other liabilities | 81,894 | 39,123 | ||||||||||
Total liabilities | 9,338,089 | 6,241,136 | ||||||||||
Shareholders' equity | 1,449,382 | 755,102 | ||||||||||
Total liabilities and shareholders' equity | $ | 10,787,471 | $ | 6,996,238 | ||||||||
Net interest rate spread | 3.34 | % | 3.25 | % | ||||||||
Net interest income and margin | $ | 330,829 | 4.54 | % | $ | 173,344 | 3.51 | % | ||||
Net interest income and net interest
margin (tax equivalent)
| $ | 331,549 | 4.55 | % | $ | 175,578 | 3.55 | % | ||||
Cost of funds | 1.56 | % | 0.38 | % | ||||||||
Cost of deposits | 1.34 | % | 0.28 | % |
Three Months Ended | ||||||||||
2023 | 2022 | |||||||||
September 30 | June 30 | March 31 | December 31 | September 30 | ||||||
(Dollars in thousands) | ||||||||||
Period-end Loan Portfolio: | ||||||||||
Commercial and industrial | $ | 1,474,600 | $ | 1,512,476 | $ | 1,477,340 | $ | 1,455,795 | $ | 732,636 |
Paycheck Protection Program (PPP) | 5,968 | 8,027 | 11,081 | 13,226 | 17,827 | |||||
Real estate: | ||||||||||
Commercial real estate (including multi-family residential) | 4,076,606 | 4,038,487 | 4,014,609 | 3,931,480 | 2,407,039 | |||||
Commercial real estate construction and land development | 1,078,265 | 1,136,124 | 1,034,538 | 1,037,678 | 513,248 | |||||
1-4 family residential (including home equity) | 1,024,945 | 1,009,439 | 1,008,362 | 1,000,956 | 699,636 | |||||
Residential construction | 289,553 | 311,208 | 292,143 | 268,150 | 183,563 | |||||
Consumer and other | 54,591 | 52,957 | 47,971 | 47,466 | 37,963 | |||||
Total loans held for investment | $ | 8,004,528 | $ | 8,068,718 | $ | 7,886,044 | $ | 7,754,751 | $ | 4,591,912 |
Deposits: | ||||||||||
Noninterest-bearing | $ | 3,656,288 | $ | 3,713,536 | $ | 3,877,859 | $ | 4,230,169 | $ | 2,465,839 |
Interest-bearing | ||||||||||
Demand | 1,397,492 | 1,437,509 | 1,394,244 | 1,591,828 | 956,920 | |||||
Money market and savings | 2,128,950 | 2,174,073 | 2,401,840 | 2,575,923 | 1,471,690 | |||||
Certificates and other time | 1,503,891 | 1,441,251 | 1,064,932 | 869,712 | 766,270 | |||||
Total interest-bearing deposits | 5,030,333 | 5,052,833 | 4,861,016 | 5,037,463 | 3,194,880 | |||||
Total deposits | $ | 8,686,621 | $ | 8,766,369 | $ | 8,738,875 | $ | 9,267,632 | $ | 5,660,719 |
Asset Quality: | ||||||||||
Nonaccrual loans | $ | 38,291 | $ | 43,349 | $ | 43,413 | $ | 45,048 | $ | 21,551 |
Accruing loans 90 or more days past due | - | - | - | - | - | |||||
Total nonperforming loans | 38,291 | 43,349 | 43,413 | 45,048 | 21,551 | |||||
Other repossessed assets | - | - | 124 | - | - | |||||
Total nonperforming assets | $ | 38,291 | $ | 43,349 | $ | 43,537 | $ | 45,048 | $ | 21,551 |
Net charge-offs (recoveries) | $ | 8,116 | $ | 236 | $ | 192 | $ | 5,707 | $ | (245) |
Nonaccrual loans: | ||||||||||
Commercial and industrial | $ | 14,991 | $ | 22,968 | $ | 23,329 | $ | 25,402 | $ | 6,916 |
Real estate: | ||||||||||
Commercial real estate (including multi-family residential) | 13,563 | 8,221 | 9,026 | 9,970 | 10,392 | |||||
Commercial real estate construction and land development | 170 | 388 | 27 | - | 241 | |||||
1-4 family residential (including home equity) | 8,442 | 10,880 | 10,586 | 9,404 | 3,854 | |||||
Residential construction | 635 | 665 | 195 | - | - | |||||
Consumer and other | 490 | 227 | 250 | 272 | 148 | |||||
Total nonaccrual loans | $ | 38,291 | $ | 43,349 | $ | 43,413 | $ | 45,048 | $ | 21,551 |
Asset Quality Ratios: | ||||||||||
Nonperforming assets to total assets | 0.36 | % | 0.40 | % | 0.41 | % | 0.41 | % | 0.32 | % |
Nonperforming loans to total loans | 0.48 | % | 0.54 | % | 0.55 | % | 0.58 | % | 0.47 | % |
Allowance for credit losses on loans to nonperforming loans | 244.38 | % | 231.14 | % | 221.56 | % | 206.85 | % | 241.97 | % |
Allowance for credit losses on loans to total loans | 1.17 | % | 1.24 | % | 1.22 | % | 1.20 | % | 1.14 | % |
Net charge-offs (recoveries) to average loans (annualized) | 0.40 | % | 0.01 | % | 0.01 | % | 0.30 | % | (0.02 | %) |
Three Months Ended | Nine Months Ended | |||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||
September 30 | June 30 | March 31 | December 31 | September 30 | September 30 | September 30 | ||||||||
(Dollars and share amounts in thousands, except per share data) | ||||||||||||||
Net income | $ | 30,908 | $ | 35,175 | $ | 37,148 | $ | 2,052 | $ | 14,286 | $ | 103,231 | $ | 49,380 |
Add: Provision for credit losses | 2,315 | 1,915 | 3,666 | 44,793 | 1,962 | 7,896 | 5,919 | |||||||
Add: Provision for income taxes | 7,445 | 7,467 | 9,913 | (218) | 3,406 | 24,825 | 11,310 | |||||||
Pre-tax, pre-provision income | $ | 40,668 | $ | 44,557 | $ | 50,727 | $ | 46,627 | $ | 19,654 | $ | 135,952 | $ | 66,609 |
Total average assets | $ | 10,741,295 | $ | 10,740,138 | $ | 10,882,533 | $ | 10,946,009 | $ | 6,717,886 | $ | 10,787,471 | $ | 6,996,238 |
Pre-tax, pre-provision return on average assets(B)
| 1.50 | % | 1.66 | % | 1.89 | % | 1.69 | % | 1.16 | % | 1.68 | % | 1.27 | % |
Pre-tax, pre-provision income | $ | 40,668 | $ | 44,557 | $ | 50,727 | $ | 46,627 | $ | 19,654 | $ | 135,952 | $ | 66,609 |
Add: Acquisition and merger-related expenses | 3,421 | 2,897 | 6,165 | 11,469 | 10,551 | 12,483 | 12,669 | |||||||
Add: Amortization of intangibles | 6,876 | 6,881 | 6,879 | 7,051 | 750 | 20,636 | 2,252 | |||||||
Less: Purchase accounting accretion | 12,400 | 12,572 | 10,104 | 8,160 | 40 | 35,076 | 210 | |||||||
Less: (Loss) gain on sale of assets | - | (6) | 198 | 4,025 | 42 | 192 | 25 | |||||||
Adjusted pre-tax, pre-provision income | $ | 38,565 | $ | 41,769 | $ | 53,469 | $ | 52,962 | $ | 30,873 | $ | 133,803 | $ | 81,295 |
Adjusted pre-tax, pre-provision return on average assets(B)
| 1.42 | % | 1.56 | % | 1.99 | % | 1.92 | % | 1.82 | % | 1.66 | % | 1.55 | % |
Total noninterest expense | $ | 70,748 | $ | 69,207 | $ | 72,598 | $ | 79,624 | $ | 44,031 | $ | 212,553 | $ | 116,452 |
Less: Acquisition and merger-related expenses | 3,421 | 2,897 | 6,165 | 11,469 | 10,551 | 12,483 | 12,669 | |||||||
Less: Amortization of intangibles | 6,876 | 6,881 | 6,879 | 7,051 | 750 | 20,636 | 2,252 | |||||||
Net interest income | 106,721 | 108,281 | 115,827 | 115,614 | 60,690 | 330,829 | 173,344 | |||||||
Less: Purchase accounting accretion | 12,400 | 12,572 | 10,104 | 8,160 | 40 | 35,076 | 210 | |||||||
Total noninterest income | 4,695 | 5,483 | 7,498 | 10,637 | 2,995 | 17,676 | 9,717 | |||||||
Less: (Loss) gain on sale of assets | - | (6) | 198 | 4,025 | 42 | 192 | 25 | |||||||
Adjusted efficiency ratio(A)
| 61.05% | 58.73% | 52.69% | 53.57% | 51.46% | 57.28% | 55.53% | |||||||
Total shareholders' equity | $ | 1,460,846 | $ | 1,458,680 | $ | 1,446,216 | $ | 1,383,176 | $ | 656,302 | $ | 1,460,846 | $ | 656,302 |
Less: Goodwill and core deposit intangibles, net | 620,262 | 627,065 | 633,925 | 640,785 | 236,048 | 620,262 | 236,048 | |||||||
Tangible shareholders' equity | $ | 840,584 | $ | 831,615 | $ | 812,291 | $ | 742,391 | $ | 420,254 | $ | 840,584 | $ | 420,254 |
Shares outstanding at end of period | 53,322 | 53,303 | 53,296 | 52,955 | 28,137 | 53,322 | 28,137 | |||||||
Tangible book value per share | $ | 15.76 | $ | 15.60 | $ | 15.24 | $ | 14.02 | $ | 14.94 | $ | 15.76 | $ | 14.94 |
Average shareholders' equity | $ | 1,471,009 | $ | 1,458,473 | $ | 1,418,082 | $ | 1,347,938 | $ | 717,436 | $ | 1,449,382 | $ | 755,102 |
Less: Average goodwill and core deposit intangibles, net | 623,864 | 630,854 | 638,110 | 658,107 | 236,399 | 630,890 | 237,153 | |||||||
Average tangible shareholders' equity | $ | 847,145 | $ | 827,619 | $ | 779,972 | $ | 689,831 | $ | 481,037 | $ | 818,492 | $ | 517,949 |
Return on average tangible equity(B)
| 14.47 | % | 17.05 | % | 19.32 | % | 1.18 | % | 11.78 | % | 16.86 | % | 12.75 | % |
Total assets | $ | 10,665,460 | $ | 10,778,351 | $ | 10,604,718 | $ | 10,900,437 | $ | 6,730,342 | $ | 10,665,460 | $ | 6,730,342 |
Less: Goodwill and core deposit intangibles, net | 620,262 | 627,065 | 633,925 | 640,785 | 236,048 | 620,262 | 236,048 | |||||||
Tangible assets | $ | 10,045,198 | $ | 10,151,286 | $ | 9,970,793 | $ | 10,259,652 | $ | 6,494,294 | $ | 10,045,198 | $ | 6,494,294 |
Tangible equity to tangible assets | 8.37 | % | 8.19 | % | 8.15 | % | 7.24 | % | 6.47 | % | 8.37 | % | 6.47 | % |
Net interest income (tax equivalent) | $ | 106,919 | $ | 108,509 | $ | 116,119 | $ | 116,574 | $ | 61,418 | $ | 331,549 | $ | 175,578 |
Less: Purchase accounting accretion | 12,400 | 12,572 | 10,104 | 8,160 | 40 | 35,076 | 210 | |||||||
Adjusted net interest income (tax equivalent) | $ | 94,519 | $ | 95,937 | $ | 106,015 | $ | 108,414 | $ | 61,378 | $ | 296,473 | $ | 175,368 |
Average earning assets | $ | 9,697,553 | $ | 9,693,527 | $ | 9,815,803 | $ | 9,815,701 | $ | 6,325,984 | $ | 9,735,194 | $ | 6,603,893 |
Net interest margin (tax equivalent) excluding PAA | 3.87 | % | 3.97 | % | 4.38 | % | 4.38 | % | 3.85 | % | 4.07 | % | 3.55 | % |
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Stellar Bancorp Inc. published this content on 27 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 October 2023 10:59:43 UTC.