# EDGAR Filing Document

**Accession Number:** 0001473844
**File Stem:** 0001104659-26-007187
**Filing Date:** 2026-1
**Character Count:** 50486
**Document Hash:** fd965372b22b2ab86ef7f3b929b6d0b6
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001104659-26-007187.hdr.sgml**: 20260128

**ACCESSION NUMBER**: 0001104659-26-007187

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 14

**CONFORMED PERIOD OF REPORT**: 20260128

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Regulation FD Disclosure

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20260128

**DATE AS OF CHANGE**: 20260128

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Stellar Bancorp, Inc.
- **CENTRAL INDEX KEY:** 0001473844
- **STANDARD INDUSTRIAL CLASSIFICATION:** NATIONAL COMMERCIAL BANKS [6021]
- **ORGANIZATION NAME:** 02 Finance
- **EIN:** 208339782
- **STATE OF INCORPORATION:** TX
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-38280
- **FILM NUMBER:** 26568162

**BUSINESS ADDRESS:**
- **STREET 1:** 9 GREENWAY PLAZA, SUITE 110
- **CITY:** HOUSTON
- **STATE:** TX
- **ZIP:** 77046
- **BUSINESS PHONE:** (713) 210-7600

**MAIL ADDRESS:**
- **STREET 1:** 9 GREENWAY PLAZA, SUITE 110
- **CITY:** HOUSTON
- **STATE:** TX
- **ZIP:** 77046

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Stellar Bancorp. Inc.
- **DATE OF NAME CHANGE:** 20221003

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** CBTX, Inc.
- **DATE OF NAME CHANGE:** 20171011

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** CBFH, Inc.
- **DATE OF NAME CHANGE:** 20091005

?xml version='1.0' encoding='ASCII'?

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**Form 8-K**

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934**

Date of Report (Date of earliest event Reported): January 28, 2026

**Stellar Bancorp, Inc.**

(Exact Name of Registrant as Specified in Charter)

---

| | | |
|:---|:---|:---|
| **Texas** | **001-38280** | **20-8339782** |
| (State or Other Jurisdiction of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification Number) |

---

**9 Greenway Plaza, Suite 110** 

**Houston,Texas 77046**

(Address of Principal Executive Offices) (Zip Code)

**(713) 210-7600**

(Registrant's telephone number, including area code)

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

▣ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

▣ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

▣ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

▣ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading**<br> **Symbol(s)**  | **Name of each exchange on which registered** |
| Common stock, par value $0.01 per share | STEL | New York Stock Exchange |
|  |  | NYSE Texas |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ▣

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ▣

**Item 2.02. Results of Operations and Financial Condition.**

On January 28, 2026, Stellar Bancorp, Inc. (the "Company") issued a press release announcing its financial results for the fourth quarter of 2025. A copy of the press release is furnished as Exhibit 99.1 hereto and incorporated herein by reference.

In accordance with General Instruction B.2 to Form 8-K, the information furnished in this Item 2.02 and Exhibit 99.1 of this Current Report on Form 8-K shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, and such information shall not be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.

**Item 7.01 Regulation FD Disclosure**

As a result of today's announcement that the Company has entered into a merger agreement with Prosperity Bancshares, Inc., the Company has cancelled the previously announced conference call regarding the Company's fourth quarter results, which was scheduled for Friday, January 30, 2026, at 8:00 a.m. Central Time (9:00 a.m. Eastern Time).

**Item 9.01. Financial Statements and Exhibits.**

*Exhibits*. The following are furnished as exhibits to this Current Report on Form 8-K:

<u>Exhibit Number</u> <u>Description of Exhibit</u> <br> [99.1](tm264235d1_ex99-1.htm) [Q4 2025 Earnings Release](tm264235d1_ex99-1.htm) <br> 104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

**Forward-Looking Statements**

This Current Report on Form 8-K contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the Company's actual results, performance or achievements to be materially different from any future results, performance or achievements anticipated in such statements. Forward-looking statements speak only as of the date they are made and, except as required by law, the Company does not assume any duty to update forward-looking statements. Such forward-looking statements include, but are not limited to, statements concerning the Company's plans, objectives, strategies, expectations, intentions and other statements that are not statements of historical fact, and may be identified by words such as "anticipates," "believes," "building," "continue," "could," "drive," "estimates," "expects," "extent," "focus," "forecasts," "goal," "guidance," "intends," "may," "might," "outlook," "plan," "position," "probable," "progressing," "projects," "prudent," "seeks," "should," "target," "view," "will" or "would" or the negative of these words and phrases or similar words or phrases. For a list of factors that could cause actual results to differ materially from those set forth in the forward-looking statements, see the risk factors described in the Company's most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q and other reports that are filed with the Securities and Exchange Commission. All forward-looking statements are qualified in their entirety by this cautionary statement.

**SIGNATURE**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | **STELLAR BANCORP, INC.** | **STELLAR BANCORP, INC.** |
| Date: January 28, 2026 | By: | /s/ Paul P. Egge |
|  |  | Paul P. Egge |
|  |  | Chief Financial Officer |

---

## Exhibit 99.1

**Exhibit 99.1**

![](tm264235d1_ex99-1img001.jpg)

**PRESS RELEASE**

**STELLAR BANCORP, INC. REPORTS** 

**FOURTH QUARTER 2025 RESULTS**

HOUSTON, January 28, 2026 - Stellar Bancorp, Inc. (the "Company" or "Stellar") (NYSE: STEL) today reported net income of $26.1 million, or diluted earnings per share of $0.51, for the fourth quarter of 2025 and net income of $102.9 million, or diluted earnings per share of $1.99, for the full year 2025.

**Financial Highlights**

• *Strong Net Interest Income and Margin:* Net interest income was $103.4 million for the fourth quarter of 2025 up from $100.6
million for the third quarter of 2025. The tax equivalent net interest margin, excluding PAA ("Purchase Accounting Adjustments"),
was 4.06%<sup>(1)</sup> for the fourth quarter of 2025 compared to 4.00%<sup>(1)</sup> for the third quarter of 2025.

• *Solid Profitability:* Net income for the full year 2025 was $102.9 million, or diluted earnings per share of $1.99, which translated
into a return on average assets of 0.97%, a return on average equity of 6.34% and a return on average tangible equity of 11.48%<sup>(1)</sup>.
Net income for the fourth quarter of 2025 was $26.1 million, or diluted earnings per share of $0.51, which translated into an annualized
return on average assets of 0.97%, an annualized return on average equity of 6.23% and an annualized return on average tangible equity
of 10.90%<sup>(1)</sup>.

• *Meaningful Book Value Build:* Book value per share increased to $32.78 at December 31, 2025 from $30.09 at December 31, 2024.
Tangible book value per share increased to $21.62<sup>(1)</sup> at December 31, 2025 from $21.08<sup>(1)</sup> at September 30, 2025 and
from $19.05<sup>(1)</sup> at December 31, 2024.

• *Repurchase of Shares:* Repurchased 299,347 shares at a weighted average price per share of $30.44 during the fourth quarter
of 2025.

• *Paydown of Subordinated Debt:* On October 1, 2025, the Company completed the previously announced redemption of $30 million
of its $60 million of subordinated debt.

 

**Year 2025 Results**

Net interest income for 2025 decreased $6.4 million, or 1.6%, to $401.6 million from $408.0 million for 2024. The net interest margin on a tax equivalent basis decreased to 4.20% for 2025 from 4.24% for 2024. The decrease in net interest income from the prior year was primarily due to the decrease in average interest-earning assets partially offset by the decrease in cost of interest-bearing liabilities. Net interest income for 2025 benefited from $19.3 million of income from PAA down from $33.0 million for 2024. Excluding PAA, net interest income (tax equivalent) for 2025 would have been $382.7 million<sup>(1)</sup> and the tax equivalent net interest margin would have been 3.99%<sup>(1)</sup> an increase from $375.3 million and 3.89% for the year 2024.

Noninterest income for 2025 was $21.8 million, a decrease of $1.3 million, or 5.4%, compared to $23.0 million for 2024. Noninterest income decreased in 2025 compared to 2024 primarily due to losses on sales and write-downs on foreclosed assets recorded during 2025.

Noninterest expense for 2025 decreased $3.5 million, or 1.2%, to $285.5 million compared to $289.0 million for 2024. The decrease in noninterest expense during 2025 compared to 2024 was primarily due to a $3.2 million decrease in professional fees, a $2.6 million decrease in amortization of intangibles and a $1.4 million decrease in regulatory assessments partially offset by a $3.5 million increase salaries and employee benefits.

The efficiency ratio was 62.28%<sup>(1)</sup> for 2025 compared to 61.53%<sup>(1)</sup> for 2024. Annualized returns on average assets, average equity and average tangible equity were 0.97%, 6.34% and 11.48%<sup>(1)</sup> for 2025, respectively, compared to 1.08%, 7.34% and 13.89%<sup>(1)</sup> for 2024, respectively.

<sup>(1)</sup> Refer to the calculation of this non-GAAP financial measure on page 10 of this earnings release. The calculation of returns on average tangible equity and the efficiency ratio have been adjusted from prior period disclosures.

**Fourth Quarter 2025 Results**

Net interest income in the fourth quarter of 2025 increased $2.7 million, or 2.7%, to $103.4 million from $100.6 million for the third quarter of 2025. The net interest margin on a tax equivalent basis increased to 4.21% for the fourth quarter of 2025 from 4.20% for the third quarter of 2025. The increase in net interest income from the prior quarter was primarily due to the decrease in the balance and cost of average interest-bearing liabilities. Net interest income for the fourth quarter of 2025 benefited from $3.8 million of income from PAA compared to $4.8 million in the third quarter of 2025. Excluding PAA, net interest income (tax equivalent) for the fourth quarter of 2025 would have been $99.7 million<sup>(1)</sup> and the tax equivalent net interest margin would have been 4.06%<sup>(1)</sup> compared to net interest income of $95.9 million and tax equivalent net interest margin of 4.00% for the third quarter of 2025.

Noninterest income for the fourth quarter of 2025 was $5.5 million, an increase of $522 thousand, or 10.5%, compared to $5.0 million for the third quarter of 2025. Noninterest income increased in the fourth quarter of 2025 compared to the third quarter of 2025 primarily due to a death benefit on bank-owned life insurance received during the fourth quarter of 2025.

Noninterest expense for the fourth quarter of 2025 decreased $984 thousand, or 1.3%, to $72.2 million compared to $73.1 million for the third quarter of 2025. The decrease in noninterest expense during the fourth quarter of 2025 compared to the third quarter of 2025 was primarily due to a decrease in amortization of intangibles of $624 thousand and a decrease in regulatory assessments of $483 thousand.

The efficiency ratio was 61.64%<sup>(1)</sup> for the fourth quarter of 2025 compared to 63.69%<sup>(1)</sup> for the third quarter of 2025. Annualized returns on average assets, average equity and average tangible equity were 0.97%, 6.23% and 10.90%<sup>(1)</sup> for the fourth quarter of 2025, respectively, compared to 0.97%, 6.30% and 11.45%<sup>(1)</sup> for the third quarter of 2025, respectively.

**Financial Condition**

Total assets at December 31, 2025 were $10.81 billion, an increase of $178.5 million compared to $10.63 billion at September 30, 2025. The increase in total assets was largely due to an increase of $356.2 million in securities and a $132.7 million increase in loans, partially offset by a $303.9 million decrease in interest-bearing deposits at other financial institutions.

Total loans at December 31, 2025 increased $132.7 million to $7.30 billion compared to $7.17 billion at September 30, 2025. At December 31, 2025, the remaining balance of the PAA on loans was $54.3 million.

Total deposits at December 31, 2025 increased $204.0 million to $9.02 billion compared to $8.82 billion at September 30, 2025 primarily due to increases in noninterest-bearing and interest-bearing demand deposits partially offset by a decrease in certificates and other time deposits.

**Asset Quality**

Nonperforming assets totaled $60.0 million, or 0.56% of total assets, at December 31, 2025, compared to $54.2 million, or 0.51% of total assets, at September 30, 2025 and $38.9 million, or 0.36% of total assets, at December 31, 2024. The allowance for credit losses on loans as a percentage of total loans was 1.15% at December 31, 2025 compared to 1.10% at September 30, 2025 and 1.09% at December 31, 2024.

The year ended December 31, 2025 included a provision for credit losses of $10.2 million compared to a reversal of provision for credit losses of $2.9 million for the year ended December 31, 2024. Net charge-offs for the year ended December 31, 2025 were $3.8 million, or 0.05% of average loans, compared to net charge-offs of $6.7 million, or 0.09% of average loans, for the year ended December 31, 2024.

The provision for credit losses was $5.1 million for the fourth quarter of 2025 compared to $305 thousand for the third quarter of 2025 primarily due to loan growth. Net charge-offs for the fourth quarter of 2025 were $71 thousand compared to net charge-offs of $3.3 million, or 0.18% (annualized) of average loans, for the third quarter of 2025.

**GAAP Reconciliation of Non-GAAP Financial Measures**

Stellar's management uses certain non-GAAP financial measures to evaluate its performance. Please refer to the GAAP Reconciliation and Management's Explanation of Non-GAAP Financial Measures on page 10 of this earnings release for a reconciliation of these non-GAAP financial measures.

**Conference Call Cancelled**

As a result of today's announcement that the Company has entered into a merger agreement with Prosperity Bancshares, Inc., the Company has cancelled the previously announced conference call regarding the Company's fourth quarter results, which was scheduled for Friday, January 30, 2026, at 8:00 a.m. Central Time (9:00 a.m. Eastern Time).

**About Stellar Bancorp, Inc.**

Stellar Bancorp, Inc. is a bank holding company headquartered in Houston, Texas. Stellar's principal banking subsidiary, Stellar Bank, provides a diversified range of commercial banking services primarily to small- to medium-sized businesses and individual customers across Houston, Dallas, Beaumont and surrounding communities in Texas.

**Investor Relations**

ir@stellar.bank

**Forward-Looking Statements**

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, 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 statements related to the expected timing, completion and benefits of the proposed transaction with Prosperity Bancshares, Inc., projections of macroeconomic and industry trends, which are inherently unreliable due to the multiple factors that impact economic trends, and any such variations may be material. Forward-looking statements may be identified by terminology such as "may," "will," "should," "could," "scheduled," "plans," "intends," "projects," "anticipates," "expects," "believes," "estimates," "potential," "would," or "continue" or negatives of such terms or other comparable terminology.

All forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and other factors that may cause the actual results, performance or achievements of Stellar to differ materially from any results expressed or implied by such forward-looking statements. Such factors include, among others: changes in the interest rate environment, the value of Stellar's assets and obligations and the availability of capital and liquidity; general competitive, economic, political and market conditions; and other factors that may affect future results of Stellar including changes in asset quality and credit risk; the inability to sustain revenue and earnings growth; changes in interest rates and capital markets; inflation; customer borrowing, repayment, investment and deposit practices; the impact, extent and timing of technological changes; capital management activities; disruptions to the economy and the U.S. banking system; risks associated with uninsured deposits and responsive measures by federal or state governments or banking regulators; legislative changes, executive orders, regulatory actions and reforms of the Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation and Texas Department of Banking.

Additional factors which could affect the Company's future results can be found in the Company's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, in each case filed with the SEC and available on the SEC's website at www.sec.gov. We disclaim any obligation and do not intend to update or revise any forward-looking statements contained in this communication, which speak only as of the date hereof, whether as a result of new information, future events or otherwise, except as required by federal securities laws. As forward-looking statements involve significant risks and uncertainties, caution should be exercised against placing undue reliance on such statements.

**Stellar Bancorp, Inc.**

**Financial Highlights**

**(Unaudited)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **2025** | **2025** | **2025** | **2025** | **2024** |
|  | **December 31** | **September 30** | **June 30** | **March 31** | **December 31** |
|  | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** |
| ASSETS: |  |  |  |  |  |
| Cash and due from banks | $94331 | $99407 | $136060 | $130932 | $419967 |
| Interest-bearing deposits at other financial institutions | 325122 | 629042 | 442044 | 429643 | 491249 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total cash and cash equivalents | 419453 | 728449 | 578104 | 560575 | 911216 |
| Available for sale securities, at fair value | 2198459 | 1842268 | 1729684 | 1719371 | 1673016 |
| Loans held for investment | 7300591 | 7167857 | 7287347 | 7283133 | 7439854 |
| Less: allowance for credit losses on loans | (83629) | (78924) | (83165) | (83746) | (81058) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans, net | 7216962 | 7088933 | 7204182 | 7199387 | 7358796 |
| Accrued interest receivable | 35869 | 34865 | 35537 | 37669 | 37884 |
| Premises and equipment, net | 106118 | 107803 | 108615 | 109750 | 111856 |
| Federal Reserve Bank and Federal Home Loan Bank stock | 45532 | 45437 | 47099 | 20902 | 8209 |
| Bank-owned life insurance | 109477 | 109358 | 108726 | 108108 | 107498 |
| Goodwill | 497318 | 497318 | 497318 | 497318 | 497318 |
| Core deposit intangibles, net | 71018 | 75929 | 81468 | 87007 | 92546 |
| Other assets | 106388 | 97753 | 102277 | 94800 | 107451 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $10806594 | $10628113 | $10493010 | $10434887 | $10905790 |
| LIABILITIES AND SHAREHOLDERS' EQUITY |  |  |  |  |  |
| LIABILITIES: |  |  |  |  |  |
| Deposits: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Noninterest-bearing | $3407865 | $3210948 | $3183693 | $3205619 | $3576206 |
| &nbsp;&nbsp;&nbsp;Interest-bearing |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Demand | 2114997 | 1960857 | 1941156 | 1863752 | 1845749 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Money market and savings | 2469845 | 2489169 | 2393767 | 2248616 | 2253193 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certificates and other time | 1028759 | 1156489 | 1154998 | 1244726 | 1453236 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest-bearing deposits | 5613601 | 5606515 | 5489921 | 5357094 | 5552178 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total deposits | 9021466 | 8817463 | 8673614 | 8562713 | 9128384 |
| Accrued interest payable | 5508 | 9429 | 7607 | 9856 | 17052 |
| Borrowed funds |  |  | 69925 | 119923 |  |
| Subordinated debt | 40226 | 70196 | 70165 | 70135 | 70105 |
| Other liabilities | 70740 | 77887 | 67865 | 61428 | 82389 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 9137940 | 8974975 | 8889176 | 8824055 | 9297930 |
| SHAREHOLDERS' EQUITY: |  |  |  |  |  |
| Common stock | 509 | 512 | 514 | 521 | 534 |
| Capital surplus | 1174894 | 1182781 | 1185048 | 1202628 | 1240050 |
| Retained earnings | 566216 | 547717 | 529216 | 510072 | 492640 |
| Accumulated other comprehensive loss | (72965) | (77872) | (110944) | (102389) | (125364) |
| Total shareholders' equity | 1668654 | 1653138 | 1603834 | 1610832 | 1607860 |
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $10806594 | $10628113 | $10493010 | $10434887 | $10905790 |

---

**Stellar Bancorp, Inc.**

**Financial Highlights**

**(Unaudited)**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Year Ended** | **Year Ended** |
|  | **2025** | **2025** | **2025** | **2025** | **2024** | **2025** | **2024** |
|  | **December 31** | **September 30** | **June 30** | **March 31** | **December 31** | **December 31** | **December 31** |
|  | **(Dollars in thousands, except per share data)** | **(Dollars in thousands, except per share data)** | **(Dollars in thousands, except per share data)** | **(Dollars in thousands, except per share data)** | **(Dollars in thousands, except per share data)** | **(Dollars in thousands, except per share data)** | **(Dollars in thousands, except per share data)** |
| INTEREST INCOME: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Loans, including fees | $119866 | $122557 | $121814 | $120640 | $128738 | $484877 | $531680 |
| &nbsp;&nbsp;&nbsp;Securities: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Taxable | 17619 | 16278 | 15293 | 16148 | 14789 | 65338 | 49903 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax-exempt | 808 | 808 | 810 | 812 | 814 | 3238 | 3262 |
| &nbsp;&nbsp;&nbsp;Deposits in other financial institutions | 5745 | 5770 | 4782 | 4720 | 5681 | 21017 | 17555 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest income | 144038 | 145413 | 142699 | 142320 | 150022 | 574470 | 602400 |
| INTEREST EXPENSE: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Demand, money market and savings deposits | 29484 | 32376 | 31097 | 27574 | 27877 | 120531 | 113246 |
| &nbsp;&nbsp;&nbsp;Certificates and other time deposits | 10370 | 10920 | 11459 | 13527 | 16830 | 46276 | 68745 |
| &nbsp;&nbsp;&nbsp;Borrowed funds | 6 | 56 | 407 | 517 | 235 | 986 | 4549 |
| &nbsp;&nbsp;&nbsp;Subordinated debt | 795 | 1417 | 1401 | 1444 | 2123 | 5057 | 7868 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest expense | 40655 | 44769 | 44364 | 43062 | 47065 | 172850 | 194408 |
| NET INTEREST INCOME | 103383 | 100644 | 98335 | 99258 | 102957 | 401620 | 407992 |
| &nbsp;&nbsp;&nbsp;Provision for (reversal of) credit losses | 5131 | 305 | 1090 | 3632 | 942 | 10158 | (2880) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net interest income after provision for credit losses | 98252 | 100339 | 97245 | 95626 | 102015 | 391462 | 410872 |
| NONINTEREST INCOME: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Service charges on deposit accounts | 1592 | 1545 | 1561 | 1584 | 1590 | 6282 | 6430 |
| &nbsp;&nbsp;&nbsp;(Loss) gain on sale/write-down of assets | (171) | (491) | (57) | 417 | (112) | (302) | 769 |
| &nbsp;&nbsp;&nbsp;Bank-owned life insurance | 1026 | 632 | 618 | 610 | 622 | 2886 | 2414 |
| &nbsp;&nbsp;&nbsp;Debit card and interchange income | 583 | 572 | 566 | 520 | 570 | 2241 | 2191 |
| &nbsp;&nbsp;&nbsp;Other | 2478 | 2728 | 3103 | 2374 | 2362 | 10683 | 11242 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total noninterest income | 5508 | 4986 | 5791 | 5505 | 5032 | 21790 | 23046 |
| NONINTEREST EXPENSE: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Salaries and employee benefits | 42913 | 43175 | 40927 | 41792 | 43797 | 168807 | 165357 |
| &nbsp;&nbsp;&nbsp;Net occupancy and equipment | 4776 | 4518 | 4399 | 3926 | 4401 | 17619 | 17864 |
| &nbsp;&nbsp;&nbsp;Depreciation | 2056 | 2015 | 1992 | 1995 | 1984 | 8058 | 7807 |
| &nbsp;&nbsp;&nbsp;Data processing and software amortization | 5796 | 5882 | 5620 | 5682 | 5551 | 22980 | 21652 |
| &nbsp;&nbsp;&nbsp;Professional fees | 1587 | 1601 | 1287 | 1786 | 3428 | 6261 | 9424 |
| &nbsp;&nbsp;&nbsp;Regulatory assessments and FDIC insurance | 1205 | 1688 | 1561 | 1733 | 1636 | 6187 | 7568 |
| &nbsp;&nbsp;&nbsp;Amortization of intangibles | 4930 | 5554 | 5548 | 5548 | 5581 | 21580 | 24220 |
| &nbsp;&nbsp;&nbsp;Communications | 872 | 855 | 861 | 847 | 807 | 3435 | 3418 |
| &nbsp;&nbsp;&nbsp;Advertising | 1333 | 1425 | 1167 | 782 | 1593 | 4707 | 4127 |
| &nbsp;&nbsp;&nbsp;Other | 6690 | 6429 | 6642 | 6075 | 6488 | 25836 | 27521 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total noninterest expense | 72158 | 73142 | 70004 | 70166 | 75266 | 285470 | 288958 |
| INCOME BEFORE INCOME TAXES | 31602 | 32183 | 33032 | 30965 | 31781 | 127782 | 144960 |
| &nbsp;&nbsp;&nbsp;Provision for income taxes | 5454 | 6513 | 6680 | 6263 | 6569 | 24910 | 29957 |
| NET INCOME | $26148 | $25670 | $26352 | $24702 | $25212 | $102872 | $115003 |
| EARNINGS PER SHARE |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Basic | $0.51 | $0.50 | $0.51 | $0.46 | $0.47 | $1.99 | $2.15 |
| &nbsp;&nbsp;&nbsp;Diluted | $0.51 | $0.50 | $0.51 | $0.46 | $0.47 | $1.99 | $2.15 |

---

**Stellar Bancorp, Inc.**

**Financial Highlights**

**(Unaudited)**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Year Ended** | **Year Ended** |
|  | **2025** | **2025** | **2025** | **2025** | **2024** | **2025** | **2024** |
|  | **December 31** | **September 30** | **June 30** | **March 31** | **December 31** | **December 31** | **December 31** |
|  | **(Dollars and share amounts in thousands, except per share data)** | **(Dollars and share amounts in thousands, except per share data)** | **(Dollars and share amounts in thousands, except per share data)** | **(Dollars and share amounts in thousands, except per share data)** | **(Dollars and share amounts in thousands, except per share data)** | **(Dollars and share amounts in thousands, except per share data)** | **(Dollars and share amounts in thousands, except per share data)** |
| Net income | $26148 | $25670 | $26352 | $24702 | $25212 | $102872 | $115003 |
| Earnings per share, basic | $0.51 | $0.50 | $0.51 | $0.46 | $0.47 | $1.99 | $2.15 |
| Earnings per share, diluted | $0.51 | $0.50 | $0.51 | $0.46 | $0.47 | $1.99 | $2.15 |
| Dividends per share | $0.15 | $0.14 | $0.14 | $0.14 | $0.14 | $0.57 | $0.53 |
| Return on average assets<sup>(A)</sup> | 0.97% | 0.97% | 1.01% | 0.94% | 0.94% | 0.97% | 1.08% |
| Return on average equity<sup>(A)</sup> | 6.23% | 6.30% | 6.62% | 6.21% | 6.21% | 6.34% | 7.34% |
| Return on average tangible equity<sup>(A)(B)(D)</sup> | 10.90% | 11.45% | 12.16% | 11.48% | 11.53% | 11.48% | 13.89% |
| Net interest margin (tax equivalent)<sup>(A)(C)</sup> | 4.21% | 4.20% | 4.18% | 4.20% | 4.25% | 4.20% | 4.24% |
| Net interest margin (tax equivalent) excluding PAA<sup>(A)(B)(C)</sup> | 4.06% | 4.00% | 3.95% | 3.97% | 3.94% | 3.99% | 3.89% |
| Efficiency ratio<sup>(B)(E)</sup> | 61.64% | 63.69% | 61.87% | 61.93% | 64.46% | 62.28% | 61.53% |
| **Capital Ratios** |  |  |  |  |  |  |  |
| Stellar Bancorp, Inc. (Consolidated) |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Equity to assets | 15.44% | 15.55% | 15.28% | 15.44% | 14.74% | 15.44% | 14.74% |
| &nbsp;&nbsp;&nbsp;Tangible equity to tangible assets<sup>(B)(E)</sup> | 10.75% | 10.74% | 10.34% | 10.42% | 9.87% | 10.75% | 9.87% |
| &nbsp;&nbsp;&nbsp;Estimated Total capital ratio (to risk-weighted assets) | 15.73% | 16.33% | 15.98% | 15.97% | 16.00% | 15.73% | 16.00% |
| &nbsp;&nbsp;&nbsp;Estimated Common equity Tier 1 capital (to risk weighted assets) | 14.18% | 14.43% | 14.06% | 14.05% | 14.14% | 14.18% | 14.14% |
| &nbsp;&nbsp;&nbsp;Estimated Tier 1 capital (to risk-weighted assets) | 14.31% | 14.55% | 14.18% | 14.17% | 14.26% | 14.31% | 14.26% |
| &nbsp;&nbsp;&nbsp;Estimated Tier 1 leverage (to average tangible assets) | 11.52% | 11.60% | 11.44% | 11.20% | 11.31% | 11.52% | 11.31% |
| Stellar Bank |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Estimated Total capital ratio (to risk-weighted assets) | 15.03% | 15.45% | 15.39% | 15.40% | 15.28% | 15.03% | 15.28% |
| &nbsp;&nbsp;&nbsp;Estimated Common equity Tier 1 capital (to risk-weighted assets) | 13.83% | 14.27% | 14.18% | 14.20% | 14.13% | 13.83% | 14.13% |
| &nbsp;&nbsp;&nbsp;Estimated Tier 1 capital (to risk-weighted assets) | 13.83% | 14.27% | 14.18% | 14.20% | 14.13% | 13.83% | 14.13% |
| &nbsp;&nbsp;&nbsp;Estimated Tier 1 leverage (to average tangible assets) | 11.14% | 11.37% | 11.44% | 11.22% | 11.21% | 11.14% | 11.21% |
| **Other Data** |  |  |  |  |  |  |  |
| Weighted average shares: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Basic | 51083 | 51283 | 51529 | 53146 | 53422 | 51753 | 53469 |
| &nbsp;&nbsp;&nbsp;Diluted | 51167 | 51356 | 51569 | 53197 | 53471 | 51805 | 53510 |
| Period end shares outstanding | 50902 | 51228 | 51398 | 52141 | 53429 | 50902 | 53429 |
| Book value per share | $32.78 | $32.27 | $31.20 | $30.89 | $30.09 | $32.78 | $30.09 |
| Tangible book value per share<sup>(B)</sup> | $21.62 | $21.08 | $19.94 | $19.69 | $19.05 | $21.62 | $19.05 |
| Employees - full-time equivalents | 1075 | 1065 | 1062 | 1054 | 1037 | 1075 | 1037 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) Interim periods annualized.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) Refer to the calculation of these non-GAAP financial measures on pa ge 10 o f this Earnings
Release.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) Net interest margin represents net interest income divided by average interest-earning assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) The calculation of return on average tangible equity has been adjusted from prior period disclosures and all periods presented above
have been recalculated and disclosed under the same calculation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) The calculation of the efficiency ratio represents total noninterest expense less amortization of core deposits, divided by the sum
of net interest income and noninterest income, excluding net gains and losses on the sale/write-down of assets. This calculation has been
adjusted from prior period disclosures and all periods presented above have been recalculated and disclosed under the same calculation.

**Stellar Bancorp, Inc.**

**Financial Highlights**

**(Unaudited)**

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** |
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Average Balance** | **Interest<br> Earned/** <br> **Interest<br> Paid**  | **Average<br> Yield/Rate** | **Average<br> Balance** | **Interest<br> Earned/** <br> **Interest<br> Paid**  | **Average<br> Yield/Rate** | **Average<br> Balance** | **Interest<br> Earned/**<br> **Interest<br> Paid**  | **Average<br> Yield/Rate** |
|  | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** |
| **Assets** |  |  |  |  |  |  |  |  |  |
| Interest-earning assets: |  |  |  |  |  |  |  |  |  |
| Loans | $7198899 | $119866 | 6.61% | $7228778 | $122557 | 6.73% | $7477332 | $128738 | 6.85% |
| Securities | 1976112 | 18427 | 3.70% | 1790897 | 17086 | 3.79% | 1702111 | 15603 | 3.65% |
| Deposits in other financial institutions | 578480 | 5745 | 3.94% | 505342 | 5770 | 4.53% | 473719 | 5681 | 4.77% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest-earning assets | 9753491 | $144038 | 5.86% | 9525017 | $145413 | 6.06% | 9653162 | $150022 | 6.18% |
| Allowance for credit losses on loans | (78995) |  |  | (82983) |  |  | (84423) |  |  |
| Noninterest-earning assets | 1070537 |  |  | 1076831 |  |  | 1080436 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $10745033 |  |  | $10518865 |  |  | $10649175 |  |  |
| **Liabilities and Shareholders' Equity** |  |  |  |  |  |  |  |  |  |
| Interest-bearing liabilities: |  |  |  |  |  |  |  |  |  |
| Interest-bearing demand deposits | $2008416 | $13281 | 2.62% | $1935203 | $14356 | 2.94% | $1623867 | $11341 | 2.78% |
| Money market and savings deposits | 2546538 | 16203 | 2.52% | 2475306 | 18020 | 2.89% | 2312711 | 16536 | 2.84% |
| Certificates and other time deposits | 1127248 | 10370 | 3.65% | 1162461 | 10920 | 3.73% | 1538785 | 16830 | 4.35% |
| Borrowed funds | 327 | 6 | 7.28% | 3156 | 56 | 7.04% | 15979 | 235 | 5.85% |
| Subordinated debt | 40211 | 795 | 7.84% | 70181 | 1417 | 8.01% | 101394 | 2123 | 8.33% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest-bearing liabilities | 5722740 | $40655 | 2.82% | 5646307 | $44769 | 3.15% | 5592736 | $47065 | 3.35% |
| Noninterest-bearing liabilities: |  |  |  |  |  |  |  |  |  |
| Noninterest-bearing demand deposits | 3269053 |  |  | 3172054 |  |  | 3342636 |  |  |
| Other liabilities | 88715 |  |  | 82993 |  |  | 99041 |  |  |
| Total liabilities | 9080492 |  |  | 8901354 |  |  | 9034413 |  |  |
| Shareholders' equity | 1664541 |  |  | 1617511 |  |  | 1614762 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and shareholders' equity | $10745033 |  |  | $10518865 |  |  | $10649175 |  |  |
| Net interest rate spread |  |  | 3.04% |  |  | 2.91% |  |  | 2.83% |
| Net interest income and margin |  | $103383 | 4.21% |  | $100644 | 4.19% |  | $102957 | 4.24% |
| Net interest income and margin (tax equivalent) |  | $103487 | 4.21% |  | $100739 | 4.20% |  | $103039 | 4.25% |
| Cost of funds |  |  | 1.79% |  |  | 2.01% |  |  | 2.10% |
| Cost of deposits |  |  | 1.77% |  |  | 1.96% |  |  | 2.02% |

---

**Stellar Bancorp, Inc.**

**Financial Highlights**

**(Unaudited)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2025** | **2025** | **2025** | **2024** | **2024** | **2024** |
|  | **Average <br> Balance** | **Interest<br> Earned/** <br> **Interest <br> Paid**  | **Average <br> Yield/Rate** | **Average<br> Balance** | **Interest<br> Earned/** <br> **Interest <br> Paid**  | **Average<br> Yield/Rate** |
|  | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** |
| **Assets** |  |  |  |  |  |  |
| Interest-earning assets: |  |  |  |  |  |  |
| Loans | $7263152 | $484877 | 6.68% | $7712122 | $531680 | 6.89% |
| Securities | 1828752 | 68576 | 3.75% | 1593073 | 53165 | 3.34% |
| Deposits in other financial institutions | 488213 | 21017 | 4.30% | 334654 | 17555 | 5.25% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest-earning assets | 9580117 | $574470 | 6.00% | 9639849 | $602400 | 6.25% |
| Allowance for credit losses on loans | (81708) |  |  | (91770) |  |  |
| Noninterest-earning assets | 1086711 |  |  | 1098396 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $10585120 |  |  | $10646475 |  |  |
| **Liabilities and Shareholders' Equity** |  |  |  |  |  |  |
| Interest-bearing liabilities: |  |  |  |  |  |  |
| Interest-bearing demand deposits | $1952032 | $54429 | 2.79% | $1618212 | $48290 | 2.98% |
| Money market and savings deposits | 2407951 | 66102 | 2.75% | 2236678 | 64956 | 2.90% |
| Certificates and other time deposits | 1196586 | 46276 | 3.87% | 1574598 | 68745 | 4.37% |
| Borrowed funds | 20791 | 986 | 4.74% | 77662 | 4549 | 5.86% |
| Subordinated debt | 62605 | 5057 | 8.08% | 107768 | 7868 | 7.30% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest-bearing liabilities | 5639965 | $172850 | 3.06% | 5614918 | $194408 | 3.46% |
| Noninterest-bearing liabilities: |  |  |  |  |  |  |
| Noninterest-bearing demand deposits | 3236602 |  |  | 3369931 |  |  |
| Other liabilities | 85472 |  |  | 94165 |  |  |
| Total liabilities | 8962039 |  |  | 9079014 |  |  |
| Shareholders' equity | 1623081 |  |  | 1567461 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and shareholders' equity | $10585120 |  |  | $10646475 |  |  |
| Net interest rate spread |  |  | 2.94% |  |  | 2.79% |
| Net interest income and margin |  | $401620 | 4.19% |  | $407992 | 4.23% |
| Net interest income and margin (tax equivalent) |  | $402005 | 4.20% |  | $408305 | 4.24% |
| Cost of funds |  |  | 1.95% |  |  | 2.16% |
| Cost of deposits |  |  | 1.90% |  |  | 2.07% |

---

**Stellar Bancorp, Inc.**

**Financial Highlights**

**(Unaudited)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** |
|  | **2025** | **2025** | **2025** | **2025** | **2024** |
|  | **December 31** | **September 30** | **June 30** | **March 31** | **December 31** |
|  | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** | **(Dollars in thousands)** |
| **Loan Portfolio:** |  |  |  |  |  |
| Commercial and industrial | $1476559 | $1332795 | $1346744 | $1362266 | $1362260 |
| Real estate: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Commercial real estate (including multi-family residential) | 3766294 | 3733293 | 3840981 | 3854607 | 3868218 |
| &nbsp;&nbsp;&nbsp;Commercial real estate construction and land development | 720779 | 753381 | 762911 | 721488 | 845494 |
| &nbsp;&nbsp;&nbsp;1-4 family residential (including home equity) | 1136227 | 1142614 | 1126523 | 1125837 | 1115484 |
| &nbsp;&nbsp;&nbsp;Residential construction | 124653 | 121197 | 137855 | 141283 | 157977 |
| Consumer and other | 76079 | 84577 | 72333 | 77652 | 90421 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total loans held for investment | $7300591 | $7167857 | $7287347 | $7283133 | $7439854 |
| **Deposits:** |  |  |  |  |  |
| Noninterest-bearing | $3407865 | $3210948 | $3183693 | $3205619 | $3576206 |
| Interest-bearing |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Demand | 2114997 | 1960857 | 1941156 | 1863752 | 1845749 |
| &nbsp;&nbsp;&nbsp;Money market and savings | 2469845 | 2489169 | 2393767 | 2248616 | 2253193 |
| &nbsp;&nbsp;&nbsp;Certificates and other time | 1028759 | 1156489 | 1154998 | 1244726 | 1453236 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest-bearing deposits | 5613601 | 5606515 | 5489921 | 5357094 | 5552178 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total deposits | $9021466 | $8817463 | $8673614 | $8562713 | $9128384 |
| **Asset Quality:** |  |  |  |  |  |
| Nonaccrual loans | $52548 | $46250 | $50505 | $54518 | $37212 |
| Accruing loans 90 or more days past due |  |  |  |  |  |
| Total nonperforming loans | 52548 | 46250 | 50505 | 54518 | 37212 |
| Foreclosed assets | 7492 | 7939 | 7652 | 5154 | 1734 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total nonperforming assets | $60040 | $54189 | $58157 | $59672 | $38946 |
| Net charge-offs | $71 | $3323 | $206 | $163 | $2016 |
| Nonaccrual loans: |  |  |  |  |  |
| Commercial and industrial | $7616 | $5594 | $13395 | $11471 | $8500 |
| Real estate: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Commercial real estate (including multi-family residential) | 29271 | 25156 | 23359 | 26383 | 16459 |
| &nbsp;&nbsp;&nbsp;Commercial real estate construction and land development | 1838 | 2899 | 3412 | 2027 | 3061 |
| &nbsp;&nbsp;&nbsp;1-4 family residential (including home equity) | 13333 | 12083 | 9965 | 14550 | 9056 |
| &nbsp;&nbsp;&nbsp;Residential construction | 448 | 457 | 176 |  |  |
| Consumer and other | 42 | 61 | 198 | 87 | 136 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total nonaccrual loans | $52548 | $46250 | $50505 | $54518 | $37212 |
| **Asset Quality Ratios:** |  |  |  |  |  |
| Nonperforming assets to total assets | 0.56% | 0.51% | 0.55% | 0.57% | 0.36% |
| Nonperforming loans to total loans | 0.72% | 0.65% | 0.69% | 0.75% | 0.50% |
| Allowance for credit losses on loans to nonperforming loans | 159.15% | 170.65% | 164.67% | 153.61% | 217.83% |
| Allowance for credit losses on loans to total loans | 1.15% | 1.10% | 1.14% | 1.15% | 1.09% |
| Net charge-offs to average loans (annualized) | 0.00% | 0.18% | 0.01% | 0.01% | 0.11% |

---

**Stellar Bancorp, Inc.**

**Financial Highlights**

**(Unaudited)**

Stellar's management uses certain non-GAAP (generally accepted accounting principles) financial measures to evaluate its performance. Stellar believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance and that management and investors benefit from referring to these non-GAAP financial measures in assessing Stellar's performance and when planning, forecasting, analyzing and comparing past, present and future periods. Specifically, Stellar reviews pre-tax, pre-provision income, pre-tax pre-provision ROAA, tangible book value per share, return on average tangible equity, tangible equity to tangible assets and net interest margin (tax equivalent) excluding PAA for internal planning and forecasting purposes. Stellar has included in this earnings release information relating to these non-GAAP financial measures for the applicable periods presented. These non-GAAP measures should not be considered in isolation or as a substitute for the most directly comparable or other financial measures calculated in accordance with GAAP. Moreover, the manner in which Stellar calculates the non-GAAP financial measures may differ from that of other companies reporting measures with similar names.

**Stellar Bancorp, Inc.**

**Financial Highlights**

**(Unaudited)**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Year Ended** | **Year Ended** |
|  | **2025** | **2025** | **2025** | **2025** | **2024** | **2025** | **2024** |
|  | **December 31** | **September 30** | **June 30** | **March 31** | **December 31** | **December 31** | **December 31** |
|  | **(Dollars and share amounts in thousands, except per share data)** | **(Dollars and share amounts in thousands, except per share data)** | **(Dollars and share amounts in thousands, except per share data)** | **(Dollars and share amounts in thousands, except per share data)** | **(Dollars and share amounts in thousands, except per share data)** | **(Dollars and share amounts in thousands, except per share data)** | **(Dollars and share amounts in thousands, except per share data)** |
| Net income | $26148 | $25670 | $26352 | $24702 | $25212 | $102872 | $115003 |
| Add: Provision for (reversal of) credit losses | 5131 | 305 | 1090 | 3632 | 942 | 10158 | (2880) |
| Add: Provision for income taxes | 5454 | 6513 | 6680 | 6263 | 6569 | 24910 | 29957 |
| **Pre-tax, pre-provision income** | $36733 | $32488 | $34122 | $34597 | $32723 | $137940 | $142080 |
| Total average assets | $10745033 | $10518865 | $10464157 | $10611691 | $10649175 | $10585120 | $10646475 |
| **Pre-tax, pre-provision return on average assets<sup>(A)</sup>** | 1.36% | 1.23% | 1.31% | 1.32% | 1.22% | 1.30% | 1.33% |
| Total shareholders' equity | $1668654 | $1653138 | $1603834 | $1610832 | $1607860 | $1668654 | $1607860 |
| Less: Goodwill and core deposit intangibles, net | 568336 | 573247 | 578786 | 584325 | 589864 | 568336 | 589864 |
| **Tangible shareholders' equity** | $1100318 | $1079891 | $1025048 | $1026507 | $1017996 | $1100318 | $1017996 |
| Shares outstanding at end of period | 50902 | 51228 | 51398 | 52141 | 53429 | 50902 | 53429 |
| **Tangible book value per share** | $21.62 | $21.08 | $19.94 | $19.69 | $19.05 | $21.62 | $19.05 |
| Average shareholders' equity | $1664541 | $1617511 | $1595540 | $1614242 | $1614762 | $1623081 | $1567461 |
| Less: Average goodwill and core deposit intangibles, net | 570721 | 575836 | 581438 | 586895 | 592471 | 578670 | 601768 |
| Average tangible shareholders' equity | $1093820 | $1041675 | $1014102 | $1027347 | $1022291 | $1044411 | $965693 |
| Net income | $26148 | $25670 | $26352 | $24702 | $25212 | $102872 | $115003 |
| Add: Core deposit intangibles amortization, net of tax | 3895 | 4388 | 4383 | 4383 | 4409 | 17048 | 19134 |
| Adjusted net income | $30043 | $30058 | $30735 | $29085 | $29621 | $119920 | $134137 |
| **Return on average tangible equity<sup>(A)(B)</sup>** | 10.90% | 11.45% | 12.16% | 11.48% | 11.53% | 11.48% | 13.89% |
| Total assets | $10806594 | $10628113 | $10493010 | $10434887 | $10905790 | $10806594 | $10905790 |
| Less: Goodwill and core deposit intangibles, net | 568336 | 573247 | 578786 | 584325 | 589864 | 568336 | 589864 |
| **Tangible assets** | $10238258 | $10054866 | $9914224 | $9850562 | $10315926 | $10238258 | $10315926 |
| **Tangible equity to tangible assets** | 10.75% | 10.74% | 10.34% | 10.42% | 9.87% | 10.75% | 9.87% |
| Net interest income (tax equivalent) | $103487 | $100739 | $98427 | $99353 | $103039 | $402005 | $408305 |
| Less: Purchase accounting accretion | 3781 | 4800 | 5344 | 5397 | 7555 | 19322 | 32999 |
| **Adjusted net interest income (tax equivalent)** | $99706 | $95939 | $93083 | $93956 | $95484 | $382683 | $375306 |
| Average earning assets | $9753491 | $9525017 | $9448589 | $9592205 | $9653162 | $9580117 | $9639849 |
| **Net interest margin (tax equivalent) excluding PAA<sup>(A)</sup>** | 4.06% | 4.00% | 3.95% | 3.97% | 3.94% | 3.99% | 3.89% |
| Noninterest expense | $72158 | $73142 | $70004 | $70166 | $75266 | $285470 | $288958 |
| Less: Core deposit intangibles amortization | 4930 | 5554 | 5548 | 5548 | 5581 | 21580 | 24220 |
| Adjusted noninterest expense | $67228 | $67588 | $64456 | $64618 | $69685 | $263890 | $264738 |
| Net interest income | 103383 | 100644 | 98335 | 99258 | 102957 | 401620 | 407992 |
| Noninterest income | 5508 | 4986 | 5791 | 5505 | 5032 | 21790 | 23046 |
| Less: (Loss) gain on sale of assets | (171) | (491) | (57) | 417 | (112) | (302) | 769 |
| Adjusted noninterest income | 5679 | 5477 | 5848 | 5088 | 5144 | 22092 | 22277 |
| Net interest income plus adjusted noninterest income | $109062 | $106121 | $104183 | $104346 | $108101 | $423712 | $430269 |
| **Efficiency ratio<sup>(C)</sup>** | 61.64% | 63.69% | 61.87% | 61.93% | 64.46% | 62.28% | 61.53% |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) Interim periods annualized.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) The calculation of return on average tangible equity has been adjusted from prior period disclosures and all periods presented above
have been recalculated and disclosed under the same calculation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) The calculation of the efficiency ratio has been adjusted from prior period disclosures and all periods presented above have been
recalculated and disclosed under the same calculation.