10-K · April 17, 2026
Stellar reported 2025 net income of $102.9 million (diluted EPS $1.99) with tangible book value per share up 13.5% to $21.62 and book value per share rising to $32.78. Capital metrics remain solid (total risk-based…
Earnings analysis · 10-Q
STEL earnings analysis
Filed April 28, 2026 · Our reading of the company's report
The latest report
Stellar reported net income of $27.0 million and diluted EPS of $0.53 for Q1 2026, up from $24.7 million and $0.46 a year earlier, driven by a $6.7 million increase in net interest income to $105.9 million and a $3.9…
Read full summary
Stellar reported net income of $27.0 million and diluted EPS of $0.53 for Q1 2026, up from $24.7 million and $0.46 a year earlier, driven by a $6.7 million increase in net interest income to $105.9 million and a $3.9 million reduction in interest expense to $39.2 million. Net interest margin (tax-equivalent) improved slightly to 4.24% (up 4 bps) while noninterest expense rose $5.0 million and the efficiency ratio widened to 63.27%. Management reiterates the pending merger with Prosperity, which is subject to shareholder approval and is expected to close on or about July 1, 2026.
Reported figures
- Earnings per share
- $0.53
What stood out
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Net income and EPS improved year-over-year
Net income rose to $27.0 million and diluted EPS to $0.53 for the three months ended March 31, 2026, from $24.7 million and $0.46 for the three months ended March 31, 2025.
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Net interest income growth
Net interest income increased $6.7 million (6.7%) to $105.9 million for Q1 2026 from $99.3 million in Q1 2025.
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Lower interest expense supported margins
Interest expense declined $3.9 million (9.1%) to $39.2 million for the three months ended March 31, 2026 from $43.1 million in the prior-year period, helping tax-equivalent NIM rise to 4.24% (from 4.20%).
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Balance-sheet growth in interest-earning assets
Average interest-earning assets increased $547.0 million (5.7%) to $10,139,233 (dollars in thousands) for the three months ended March 31, 2026 compared with $9,592,205 for the same period in 2025.
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Share repurchase activity
The company repurchased 134,362 shares during Q1 2026 at a weighted-average price of $31.06 per share; as of March 31, 2026 the number of shares that may still be repurchased was 1,191,820 (based on the closing price).
What to watch
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Rising noninterest expense
Noninterest expense increased $5.0 million in Q1 2026 versus Q1 2025, contributing to a wider efficiency ratio of 63.27% (up from 61.93%).
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Loan-yield compression
Average yield on loans decreased to 6.51% for Q1 2026 from 6.66% for Q1 2025, and overall average yield on interest-earning assets fell to 5.80% from 6.02%.
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Allowance sensitivity
As of March 31, 2026, a 5% increase in historical loss rates would raise funded reserves by $1.1 million; a 5% increase in qualitative risk factors would add $2.9 million; combined quantitative and qualitative increases would impact reserves by $3.6 million.
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Merger completion is not guaranteed
Completion of the proposed merger with Prosperity remains subject to Stellar shareholder approval at a special meeting scheduled for May 27, 2026, and the Merger is expected to be completed on or about July 1, 2026 (subject to customary closing conditions).
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No material update to risk factors
The company states there have been no material changes in the risk factors previously disclosed in the 2025 Form 10-K.
Management's outlook
The filing contains forward-looking statements but provides no numeric revenue or EPS guidance. Management notes the Merger is expected to be completed on or about July 1, 2026 and a shareholder vote is scheduled for May 27, 2026; outlook and forward-looking statements are otherwise deferred to future disclosures.
Earlier filings 1
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