Stellar Bancorp, Inc. (the "Company" or "Stellar") (NYSE:STEL) today reported net income of $29.8 million, or diluted earnings per share of $0.56, for the second quarter of 2024 compared to net income of $26.1 million, or diluted earnings per share of $0.49, for the first quarter of 2024.

"We are pleased to announce our second quarter 2024 results," said Robert R. Franklin, Jr., Stellar's Chief Executive Officer. "Our disciplined focus on capital, credit and liquidity gives us strength and optionality as we move into the back half of the year. Although many anticipate lower interest rates in September, we are prepared if that does not come to pass," said Mr. Franklin. "Stellar Bank is well-positioned for either outcome."

"In addition to building capital, we have reduced our commercial real estate exposure and are pursuing a more balanced approach to our lending through new additions to our team to help us build our commercial and industrial portfolio. Our credit quality remains steady as the economy in our markets remains solid. We operate in some of, if not the best, markets in the country and they have shown resilience throughout this tightening cycle," Mr. Franklin continued.

"Our focus on capital, credit and liquidity will not change. We will continue to monitor effects of higher interest rates and the contentious presidential election on our markets. We believe that building and maintaining a strong balance sheet, positions us to take advantage of opportunities that arise from this economic cycle. Our focus remains on building long-term shareholder value as we embark on the second half of 2024 and the future is bright," concluded Mr. Franklin.

Second Quarter 2024 Financial Highlights

Solid Profitability: Second quarter 2024 net income of $29.8 million, or diluted earnings per share of $0.56, translated into an annualized return on average assets of 1.13%, an annualized return on average equity of 7.78% and an annualized return on average tangible equity of 12.82%⁽¹⁾.
Meaningful Regulatory Capital Build: Total risk-based capital ratio increased to 15.34% at June 30, 2024 from 14.62% at March 31, 2024 and Tier 1 leverage ratio increased to 10.93% at June 30, 2024 from 10.55% at March 31, 2024.
Strong Net Interest Margin: Tax equivalent net interest margin was 4.24% for the second quarter of 2024 compared to 4.26% for the first quarter of 2024. The tax equivalent net interest margin, excluding purchase accounting accretion ("PAA"), was 3.82%⁽¹⁾ for the second quarter of 2024 compared to 3.91%⁽¹⁾ for the first quarter of 2024.
Stable Credit Performance: Net charge-offs of $715 thousand, or 0.02%, for the year-to-date 2024.

________________________
⁽¹⁾	Refer to page 10 of this earnings release for the calculation of this non-GAAP financial measure.

Second Quarter 2024 Results

Net interest income in the second quarter of 2024 decreased $708 thousand, or 0.7%, to $101.4 million from $102.1 million for the first quarter of 2024. The net interest margin on a tax equivalent basis decreased 2 basis points to 4.24% for the second quarter of 2024 from 4.26% for the first quarter of 2024. The decrease in the net interest margin from the prior quarter was primarily due to the impact of increased interest rates on our cost of funding only partially offset by increased income on interest earning assets. Net interest income for the second quarter of 2024 benefited from $10.1 million of income from purchase accounting adjustments compared to $8.6 million in the first quarter of 2024. Excluding purchase accounting adjustments, net interest income (tax equivalent) for the second quarter 2024 would have been $91.4 million⁽¹⁾ and the tax equivalent net interest margin would have been 3.82%⁽¹⁾.

Noninterest income for the second quarter of 2024 was $5.4 million, a decrease of $880 thousand, or 14.0%, compared to $6.3 million for the first quarter of 2024. Noninterest income decreased in the second quarter of 2024 compared to the first quarter of 2024 primarily due to a decrease in gains on sales of assets in the second quarter of 2024 compared to the first quarter of 2024.

Noninterest expense for the second quarter of 2024 decreased $194 thousand, or 0.3%, to $71.2 million compared to $71.4 million for the first quarter of 2024. The decrease in noninterest expense in the second quarter of 2024 compared to the first quarter of 2024 was primarily due to a $2.3 million decrease in salaries and employee benefits and a $1.0 million decrease in professional fees partially offset by other expenses.

The efficiency ratio was 66.63% for the second quarter of 2024 compared to 66.18% for the first quarter of 2024. Annualized returns on average assets, average equity and average tangible equity were 1.13%, 7.78% and 12.82%⁽¹⁾for the second quarter of 2024, respectively, compared to 0.98%, 6.88% and 11.47%⁽¹⁾, respectively, for the first quarter of 2024.

Financial Condition

Total loans at June 30, 2024 decreased $194.2 million to $7.71 billion compared to $7.91 billion at March 31, 2024. At June 30, 2024, the remaining balance of the purchase accounting adjustments on loans was $87.4 million.

Total deposits at June 30, 2024 decreased $69.4 million to $8.73 billion compared to $8.79 billion at March 31, 2024, due to decreases in certificates and other time deposits, noninterest-bearing deposits and interest-bearing demand deposits, partially offset by increases in money market and savings deposits. Shifts in the deposit mix were primarily driven by the current interest rate environment and an intensely competitive market for deposits. Estimated uninsured deposits totaled $4.79 billion and estimated uninsured deposits net of collateralized deposits of $1.01 billion were $3.78 billion, or 43.3%, of total deposits at June 30, 2024.

Total assets at June 30, 2024 were $10.72 billion, a decrease of $5.6 million, compared to $10.73 billion at March 31, 2024.

Asset Quality

Nonperforming assets totaled $53.4 million, or 0.50% of total assets, at June 30, 2024, compared to $57.1 million, or 0.53% of total assets, at March 31, 2024. The allowance for credit losses on loans as a percentage of total loans was 1.23% at June 30, 2024 and 1.22% at March 31, 2024.

The second quarter of 2024 included a reversal of provision for credit losses expenses of $1.9 million compared to a $4.1 million provision for credit losses recorded during the first quarter of 2024. Net charge-offs for the second quarter of 2024 were $1 thousand, or 0.00% (annualized) of average loans, compared to net charge-offs of $714 thousand, or 0.04% (annualized) of average loans, for the first quarter of 2024.

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

Stellar's management team will host a conference call and webcast on Friday, July 26, 2024 at 8:00 a.m. Central Time (9:00 a.m. Eastern Time) to discuss its results for the second quarter of 2024. Participants may register for the conference call at https://registrations.events/direct/Q4I635860 to receive the dial-in numbers and unique PIN to access the call. If you need assistance in obtaining a dial-in number, please contact IR@stellar.bank. A simultaneous audio-only webcast may be accessed at https://events.q4inc.com/attendee/232230638. If you are unable to participate during the live webcast, the webcast will be accessible via the Investor Relations section of the Company's website at ir.stellar.bank.

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 the Houston, Dallas, Beaumont and surrounding communities in Texas.

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, statements about the benefits of the Company's merger with Allegiance Bancshares, Inc. (the "Merger"), including 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 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: the risk that the cost savings and any revenue synergies from the Merger may not be fully realized or may take longer than anticipated to be realized; disruption to our business as a result of the Merger; the risk that the integration of operations will be materially delayed or will be more costly or difficult than we expected or that we are otherwise unable to successfully integrate our legacy businesses; the amount of the costs, fees, expenses and charges related to the Merger; reputational risk and the reaction of our customers, suppliers, employees or other business partners to the Merger; 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 caused by recent bank failures, risks associated with uninsured deposits and responsive measures by federal or state governments or banking regulators, including increases in the cost of our deposit insurance assessments and other actions of the Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation and Texas Department of Banking and legislative and regulatory actions and reforms.

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 https://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)

	2024						2023
	June 30			March 31			December 31			September 30			June 30
	(Dollars in thousands)
ASSETS
Cash and due from banks	$	110,341		$	74,663		$	121,004		$	94,970		$	105,913
Interest-bearing deposits at other financial institutions		379,909			325,079			278,233			207,302			198,176
Total cash and cash equivalents		490,250			399,742			399,237			302,272			304,089

Available for sale securities, at fair value		1,630,971			1,523,100			1,395,680			1,414,952			1,478,222

Loans held for investment		7,713,897			7,908,111			7,925,133			8,004,528			8,068,718
Less: allowance for credit losses on loans		(94,772	)		(96,285	)		(91,684	)		(93,575	)		(100,195	)
Loans, net		7,619,125			7,811,826			7,833,449			7,910,953			7,968,523

Accrued interest receivable		43,348			45,466			44,244			43,536			42,051
Premises and equipment, net		113,984			115,698			118,683			119,332			119,142
Federal Home Loan Bank stock		15,089			16,050			25,051			29,022			24,478
Bank-owned life insurance		106,262			105,671			105,084			104,699			104,148
Goodwill		497,318			497,318			497,318			497,318			497,260
Core deposit intangibles, net		104,315			110,513			116,712			122,944			129,805
Other assets		103,001			103,838			111,681			120,432			110,633
Total assets	$	10,723,663		$	10,729,222		$	10,647,139		$	10,665,460		$	10,778,351


LIABILITIES AND SHAREHOLDERS' EQUITY

LIABILITIES:
Deposits:
Noninterest-bearing	$	3,308,441		$	3,323,149		$	3,546,815		$	3,656,288		$	3,713,536
Interest-bearing
Demand		1,564,405			1,576,261			1,659,999			1,397,492			1,437,509
Money market and savings		2,213,031			2,203,767			2,136,777			2,128,950			2,174,073
Certificates and other time		1,639,426			1,691,539			1,529,876			1,503,891			1,441,251
Total interest-bearing deposits		5,416,862			5,471,567			5,326,652			5,030,333			5,052,833
Total deposits		8,725,303			8,794,716			8,873,467			8,686,621			8,766,369

Accrued interest payable		12,327			12,227			11,288			7,612			4,555
Borrowed funds		240,000			215,000			50,000			323,981			369,963
Subordinated debt		109,964			109,864			109,765			109,665			109,566
Other liabilities		70,274			66,717			81,601			76,735			69,218
Total liabilities		9,157,868			9,198,524			9,126,121			9,204,614			9,319,671

SHAREHOLDERS' EQUITY:
Common stock		536			536			533			533			533
Capital surplus		1,238,477			1,235,221			1,232,627			1,231,686			1,228,532
Retained earnings		447,948			425,130			405,945			385,600			361,619
Accumulated other comprehensive loss		(121,166	)		(130,189	)		(118,087	)		(156,973	)		(132,004	)
Total shareholders' equity		1,565,795			1,530,698			1,521,018			1,460,846			1,458,680
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	10,723,663		$	10,729,222		$	10,647,139		$	10,665,460		$	10,778,351





Stellar Bancorp, Inc. Financial Highlights (Unaudited)

	Three Months Ended												Six Months Ended
	2024					2023							2024		2023
	June 30			March 31		December 31		September 30		June 30			June 30		June 30
	(Dollars in thousands, except per share data)
INTEREST INCOME:
Loans, including fees	$	135,885		$	134,685	$	139,114	$	138,948	$	133,931		$	270,570	$	259,660
Securities:
Taxable		11,923			9,293		9,622		9,493		9,726			21,216		19,379
Tax-exempt		816			818		418		437		436			1,634		1,698
Deposits in other financial institutions		3,555			3,627		3,021		2,391		2,865			7,182		6,636
Total interest income		152,179			148,423		152,175		151,269		146,958			300,602		287,373

INTEREST EXPENSE:
Demand, money market and savings deposits		28,399			27,530		25,033		23,557		20,708			55,929		38,745
Certificates and other time deposits		18,758			15,084		15,075		13,282		9,622			33,842		12,929
Borrowed funds		1,700			1,774		4,154		5,801		6,535			3,474		7,852
Subordinated debt		1,912			1,917		1,983		1,908		1,812			3,829		3,739
Total interest expense		50,769			46,305		46,245		44,548		38,677			97,074		63,265
NET INTEREST INCOME		101,410			102,118		105,930		106,721		108,281			203,528		224,108
(Reversal of) provision for credit losses		(1,935	)		4,098		1,047		2,315		1,915			2,163		5,581
Net interest income after provision for credit losses		103,345			98,020		104,883		104,406		106,366			201,365		218,527

NONINTEREST INCOME:
Service charges on deposit accounts		1,648			1,598		1,520		1,620		1,575			3,246		2,924
(Loss) gain on sale of assets		(64	)		513		198		—		(6	)		449		192
Bank-owned life insurance		591			587		573		551		532			1,178		1,054
Debit card and ATM income		543			527		542		935		1,821			1,070		3,519
Other		2,698			3,071		4,053		1,589		1,561			5,769		5,292
Total noninterest income		5,416			6,296		6,886		4,695		5,483			11,712		12,981

NONINTEREST EXPENSE:
Salaries and employee benefits		39,061			41,376		40,464		39,495		37,300			80,437		77,075
Net occupancy and equipment		4,503			4,390		4,572		4,455		3,817			8,893		7,905
Depreciation		1,948			1,964		1,955		1,952		1,841			3,912		3,677
Data processing and software amortization		5,501			4,894		5,000		4,798		4,674			10,395		9,728
Professional fees		1,620			2,662		3,867		997		1,564			4,282		3,091
Regulatory assessments and FDIC insurance		2,299			1,854		5,169		1,814		2,755			4,153		4,049
Amortization of intangibles		6,215			6,212		6,247		6,876		6,881			12,427		13,760
Communications		847			937		743		663		689			1,784		1,390
Advertising		891			765		1,004		877		907			1,656		1,746
Acquisition and merger-related expenses		—			—		3,072		3,421		2,897			—		9,062
Other		8,331			6,356		5,848		5,400		5,882			14,687		10,322
Total noninterest expense		71,216			71,410		77,941		70,748		69,207			142,626		141,805
INCOME BEFORE INCOME TAXES		37,545			32,906		33,828		38,353		42,642			70,451		89,703
Provision for income taxes		7,792			6,759		6,562		7,445		7,467			14,551		17,380
NET INCOME	$	29,753		$	26,147	$	27,266	$	30,908	$	35,175		$	55,900	$	72,323

EARNINGS PER SHARE
Basic	$	0.56		$	0.49	$	0.51	$	0.58	$	0.66		$	1.05	$	1.36
Diluted	$	0.56		$	0.49	$	0.51	$	0.58	$	0.66		$	1.04	$	1.36




	Three Months Ended															Six Months Ended
	2024						2023									2024			2023
	June 30			March 31			December 31			September 30			June 30			June 30			June 30
	(Dollars and share amounts in thousands, except per share data)
Net income	$	29,753		$	26,147		$	27,266		$	30,908		$	35,175		$	55,900		$	72,323

Earnings per share, basic	$	0.56		$	0.49		$	0.51		$	0.58		$	0.66		$	1.05		$	1.36
Earnings per share, diluted	$	0.56		$	0.49		$	0.51		$	0.58		$	0.66		$	1.04		$	1.36
Dividends per share	$	0.13		$	0.13		$	0.13		$	0.13		$	0.13		$	0.26		$	0.26

Return on average assets^(A)		1.13	%		0.98	%		1.02	%		1.14	%		1.31	%		1.06	%		1.35	%
Return on average equity^(A)		7.78	%		6.88	%		7.33	%		8.34	%		9.67	%		7.33	%		10.14	%
Return on average tangible equity^(A)(B)		12.82	%		11.47	%		12.61	%		14.47	%		17.05	%		12.15	%		18.14	%
Net interest margin (tax equivalent)^(A)(C)		4.24	%		4.26	%		4.40	%		4.37	%		4.49	%		4.25	%		4.64	%
Net interest margin (tax equivalent) excluding PAA^(A)(B)(C)		3.82	%		3.91	%		3.91	%		3.87	%		3.97	%		3.86	%		4.18	%
Efficiency ratio^(D)		66.63	%		66.18	%		69.21	%		63.50	%		60.83	%		66.40	%		59.86	%

Capital Ratios
Stellar Bancorp, Inc. (Consolidated)
Equity to assets		14.60	%		14.27	%		14.29	%		13.70	%		13.53	%		14.60	%		13.53	%
Tangible equity to tangible assets^(B)		9.53	%		9.12	%		9.04	%		8.37	%		8.19	%		9.53	%		8.19	%
Estimated Total capital ratio (to risk-weighted assets)		15.34	%		14.62	%		14.02	%		13.61	%		13.21	%		15.34	%		13.21	%
Estimated Common equity Tier 1 capital (to risk weighted assets)		12.98	%		12.29	%		11.77	%		11.30	%		10.83	%		12.98	%		10.83	%
Estimated Tier 1 capital (to risk-weighted assets)		13.10	%		12.41	%		11.89	%		11.41	%		10.94	%		13.10	%		10.94	%
Estimated Tier 1 leverage (to average tangible assets)		10.93	%		10.55	%		10.18	%		9.82	%		9.51	%		10.93	%		9.51	%
Stellar Bank
Estimated Total capital ratio (to risk-weighted assets)		14.65	%		14.13	%		13.65	%		13.32	%		12.98	%		14.65	%		12.98	%
Estimated Common equity Tier 1 capital (to risk-weighted assets)		13.12	%		12.61	%		12.20	%		11.80	%		11.38	%		13.12	%		11.38	%
Estimated Tier 1 capital (to risk-weighted assets)		13.12	%		12.61	%		12.20	%		11.80	%		11.38	%		13.12	%		11.38	%
Estimated Tier 1 leverage (to average tangible assets)		10.94	%		10.72	%		10.44	%		10.15	%		9.89	%		10.94	%		9.89	%

Other Data
Weighted average shares:
Basic		53,572			53,343			53,282			53,313			53,297			53,457			53,160
Diluted		53,608			53,406			53,350			53,380			53,375			53,506			53,261
Period end shares outstanding		53,564			53,551			53,291			53,322			53,303			53,564			53,303
Book value per share	$	29.23		$	28.58		$	28.54		$	27.40		$	27.37		$	29.23		$	27.37
Tangible book value per share^(B)	$	18.00		$	17.23		$	17.02		$	15.76		$	15.60		$	18.00		$	15.60
Employees - full-time equivalents		1,045			1,007			998			1,008			1,004			1,045			1,004

^(A)	Interim periods annualized.
^(B)	Refer to the calculation of these non-GAAP financial measures and a reconciliation to their most directly comparable GAAP financial measures on page 10 of this Earnings Release.
^(C)	Net interest margin represents net interest income divided by average interest-earning assets.
^(D)	Represents total noninterest expense divided by the sum of net interest income plus noninterest income, excluding net gains and losses on the sale of loans, securities and assets. Additionally, taxes and provision for credit losses are not part of this calculation.





Stellar Bancorp, Inc. Financial Highlights (Unaudited)

	Three Months Ended
	June 30, 2024							March 31, 2024							June 30, 2023
	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	$	7,808,320		$	135,885	7.00	%	$	7,938,824		$	134,685	6.82	%	$	7,980,856		$	133,931	6.73	%
Securities		1,549,638			12,739	3.31	%		1,441,814			10,111	2.82	%		1,502,949			10,162	2.71	%
Deposits in other financial institutions		258,916			3,555	5.52	%		264,906			3,627	5.51	%		209,722			2,865	5.48	%
Total interest-earning assets		9,616,874		$	152,179	6.36	%		9,645,544		$	148,423	6.19	%		9,693,527		$	146,958	6.08	%
Allowance for credit losses on loans		(96,306	)						(91,612	)						(96,414	)
Noninterest-earning assets		1,103,297							1,132,857							1,143,025
Total assets	$	10,623,865						$	10,686,789						$	10,740,138

Liabilities and Shareholders' Equity
Interest-Bearing Liabilities:
Interest-bearing demand deposits	$	1,545,096		$	12,213	3.18	%	$	1,697,211		$	12,278	2.91	%	$	1,387,604		$	9,343	2.70	%
Money market and savings deposits		2,227,393			16,186	2.92	%		2,150,805			15,252	2.85	%		2,220,827			11,365	2.05	%
Certificates and other time deposits		1,694,536			18,758	4.45	%		1,444,048			15,084	4.20	%		1,225,834			9,622	3.15	%
Borrowed funds		112,187			1,700	6.09	%		134,400			1,774	5.31	%		479,896			6,535	5.46	%
Subordinated debt		109,910			1,912	7.00	%		109,808			1,917	7.02	%		109,499			1,812	6.64	%
Total interest-bearing liabilities		5,689,122		$	50,769	3.59	%		5,536,272		$	46,305	3.36	%		5,423,660		$	38,677	2.86	%

Noninterest-Bearing Liabilities:
Noninterest-bearing demand deposits		3,308,633							3,525,758							3,779,594
Other liabilities		87,986							96,461							78,411
Total liabilities		9,085,741							9,158,491							9,281,665
Shareholders' equity		1,538,124							1,528,298							1,458,473
Total liabilities and shareholders' equity	$	10,623,865						$	10,686,789						$	10,740,138

Net interest rate spread						2.77	%						2.83	%						3.22	%

Net interest income and margin				$	101,410	4.24	%				$	102,118	4.26	%				$	108,281	4.48	%

Net interest income and net interest margin (tax equivalent)				$	101,482	4.24	%				$	102,207	4.26	%				$	108,509	4.49	%

Cost of funds						2.27	%						2.06	%						1.69	%
Cost of deposits						2.16	%						1.94	%						1.41	%





Stellar Bancorp, Inc. Financial Highlights (Unaudited)

	Six Months Ended June 30,
	2024							2023
	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	$	7,873,572		$	270,570	6.91	%	$	7,914,303		$	259,660	6.62	%
Securities		1,495,726			22,850	3.07	%		1,553,200			21,077	2.74	%
Deposits in other financial institutions		261,911			7,182	5.52	%		286,823			6,636	4.67	%
Total interest-earning assets		9,631,209		$	300,602	6.28	%		9,754,326		$	287,373	5.94	%
Allowance for credit losses on loans		(93,959	)						(94,881	)
Noninterest-earning assets		1,118,077							1,151,497
Total assets	$	10,655,327						$	10,810,942

Liabilities and Shareholders' Equity
Interest-Bearing Liabilities:
Interest-bearing demand deposits	$	1,621,154		$	24,491	3.04	%	$	1,518,213		$	17,725	2.35	%
Money market and savings deposits		2,189,099			31,438	2.89	%		2,355,112			21,020	1.80	%
Certificates and other time deposits		1,569,292			33,842	4.34	%		1,044,721			12,929	2.50	%
Borrowed funds		123,293			3,474	5.67	%		293,578			7,852	5.39	%
Subordinated debt		109,859			3,829	7.01	%		109,458			3,739	6.89	%
Total interest-bearing liabilities		5,612,697		$	97,074	3.48	%		5,321,082		$	63,265	2.40	%

Noninterest-Bearing Liabilities:
Noninterest-bearing demand deposits		3,417,196							3,971,862
Other liabilities		92,223							79,609
Total liabilities		9,122,116							9,372,553
Shareholders' equity		1,533,211							1,438,389
Total liabilities and shareholders' equity	$	10,655,327						$	10,810,942

Net interest rate spread						2.80	%						3.54	%

Net interest income and margin				$	203,528	4.25	%				$	224,108	4.63	%

Net interest income and net interest margin (tax equivalent)				$	203,688	4.25	%				$	224,628	4.64	%

Cost of funds						2.16	%

Stellar Bancorp, Inc. Reports Second Quarter 2024 Results