Stellar Bancorp posts higher Q4 profit, announces merger with Prosperity Bancshares

Overview

• Texas bank holding company's Q4 net interest income rose 2.7% from prior quarter

• Company repurchased 299,347 shares at an average price of $30.44 in Q4

• Company completed $30 mln subordinated debt redemption on October 1, 2025

Outlook

• Merger with Prosperity Bancshares may impact future financial performance

Result Drivers

• NET INTEREST INCOME - Increased due to lower cost of interest-bearing liabilities

• NONINTEREST INCOME - Boosted by a death benefit on bank-owned life insurance

• NONINTEREST EXPENSES - Decreased due to lower amortization of intangibles and regulatory assessments

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy."

• Wall Street's median 12-month price target for Stellar Bancorp Inc is $32.00, about 1.9% below its January 27 closing price of $32.63

• The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 15 three months ago

Press Release: ID:nBw1Cc9Lfa

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