Business Overview
Stellar Bancorp Inc. (NYSE: STEL) reported fourth-quarter and full-year 2025 results in a filing dated Jan. 28, 2026. The company is a regional bank with a commercial lending focus. Total assets were $10.81 billion at Dec. 31, 2025, with total loans of $7.30 billion and total deposits of $9.02 billion. Book value per share was $32.78 at year-end.
Financial Performance
Consolidated revenue for Q4 2025 was $108.891 million. Net income for the quarter was $26.148 million. Quarterly revenue rose 0.8% year‑over‑year, and quarterly net income rose 3.7% year‑over‑year. For the full year 2025, revenue was $423.410 million and net income was $102.872 million. Full‑year revenue and net income contracted versus 2024. The company reported a dividend of $0.57 per share for 2025 and a book value per share of $32.78.
Operating Metrics
Key operating metrics for Q4 2025 included a net interest margin of 4.21% (tax equivalent) and an efficiency ratio of 61.64%. Net interest income was $103.383 million, and total noninterest income was $5.508 million for the quarter. Provision for credit losses in the quarter was $5.131 million. Pre‑tax, pre‑provision income for the quarter was $36.733 million. The allowance for credit losses represented 1.15% of total loans, and nonperforming assets were $60.0 million.
Figure 1 — Quarterly Revenue (USD millions)
Figure 2 — 1‑Month Stock Price (USD)
Figure 3 — Revenue mix Q4 2025 (Net interest income vs Noninterest income)
Key Developments
On Jan. 28, 2026, the company disclosed a merger agreement with Prosperity Bancshares, under which Stellar shareholders will receive $11.36 in cash plus 0.3803 Prosperity shares per Stellar share. Following the announcement, the company cancelled the scheduled fourth‑quarter conference call. In Q4 the company repurchased 299,347 shares at a weighted average price of $30.44 and redeemed $30 million of subordinated debt during the year.
Risks and Constraints
Credit risk remains a principal concern given exposure to commercial real estate and commercial and industrial loans. Allowance coverage and nonperforming assets are monitored alongside loan growth. Regulatory approvals and shareholder consent are required for the proposed merger. Capital and liquidity metrics, including the company’s CET1 ratio, will be reviewed by regulators as part of any transaction review.
Outlook / Guidance
What to watch for: filings and proxy materials required for the merger, shareholder votes, and regulatory clearances. Upcoming quarterly filings will provide updates on loan growth, credit provisioning, and capital ratios. The company has not issued forward earnings guidance in the filing and provided no revised dividend policy in the announcement.
Performance Summary
Shares closed higher on the day of the announcement. Q4 revenue was $108.891 million, and net income was $26.148 million. Stellar disclosed a merger agreement with Prosperity Bancshares and repurchased shares in the quarter. Key near‑term items include shareholder and regulatory approvals and Q1 filings that will show loan and credit trends.