The following is a summary of the Stellar Bancorp, Inc. (STEL) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Stellar Bancorp reported Q1 net income of $26.1 million, or $0.49 per diluted share, representing an annualized return on average assets of 0.98% and an annualized return on average tangible common equity of 11.47%.

• Net interest income for the quarter was $102.1 million, a decrease of $3.8 million from the previous quarter.

• Noninterest income was $6.3 million for the quarter due to nearly $0.5 million gain on asset sales and Small Business Investment Company income in the quarter.

• Noninterest expense for the quarter was approximately $71.4 million, consistent with their expectations.

• Total risk-based capital was 14.62% at the end of the first quarter relative to 14.02% at the end of 2023 and 12.39% at the end of 2022.

Business Progress:

• Stellar Bancorp is focusing on strengthening its operations, building capital, enhancing liquidity, and credit monitoring.

• With higher interest rates, the bank is working closely with customers, offering additional support to help them navigate the project cycle.

• Stellar Bancorp is optimistic about future growth due to the increasing population in Houston and a strong job market.

• The bank aims to maintain a good deposit base, strong capital, and good credit metrics in response to the Federal Reserve's efforts to tackle inflation with higher interest rates.

• The bank is prioritising asset and liability composition, balance sheet management, capital accumulation over loan growth, and protecting earnings power in the current interest rate environment.

More details: Stellar Bancorp IR

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