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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