The earnings beat is positive but secondary to the merger with Prosperity. Focus on the May 27 shareholder vote and closing expected around July 1, 2026. The deterioration in asset quality (NPAs up 17%) may pressure the stock if the merger faces delays.
Price Chart
Executive Summary
Stellar Bancorp reported Q1 2026 diluted EPS of $0.53, beating the $0.50 consensus by 6%, and total revenue (net interest income + noninterest income) of $111.0M, above the $108.4M estimate. However, asset quality deteriorated: nonperforming assets rose to $70.1M (0.64% of assets) from $60.0M, and net charge-offs increased to $1.4M from $71K. The results are largely overshadowed by the pending merger with Prosperity Bancshares, with a shareholder vote scheduled for May 27, 2026.
Key Financial Metrics
Key Facts
- Diluted EPS $0.53 vs consensus $0.50 (+6.0%)
- Total revenue $111.0M vs consensus $108.4M (+2.4%)
- Net interest income $105.9M, up 2.5% linked-quarter; NIM expanded to 4.24%
- Loans held for investment grew $287.4M (+3.94% linked-quarter, 16.0% annualized)
- Nonperforming assets increased to $70.1M (0.64% of total assets) from $60.0M
- Net charge-offs $1.4M vs $71K in prior quarter; provision for credit losses $2.5M
- Acquisition and merger-related expenses of $3.3M; adjusted EPS $0.58
- Pending merger with Prosperity Bancshares; all regulatory approvals received; shareholder vote May 27, 2026
Financial Impact
EPS beat by $0.03, revenue beat by ~$2.6M; asset quality weakening adds uncertainty
Risk Factors
- Merger not approved by shareholders or delayed
- Further asset quality deterioration (NPAs at 0.64%, up from 0.56%)
- Integration costs and merger-related expenses burdening near-term earnings
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001473844-26-000023 |
| Document: stel-20260428.htm | 0001473844-26-000023 |
| Document: 0001473844-26-000023-index-headers.html | 0001473844-26-000023 |
| Document: 0001473844-26-000023-index.html | 0001473844-26-000023 |
| Document: 0001473844-26-000023.txt | 0001473844-26-000023 |
| 8-K Data (Synthetic) | 0001473844-26-000023 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 8, 2026 17d ago | SC 13G/A | — | awaiting T+20 | — | — |
Jul 13, 2026 15w ago | 15-12G | — | awaiting T+20 | — | — |
Jul 1, 2026 16w ago | 25-NSE | $39.27 | awaiting T+20 | — | — |
Jul 1, 2026 16w ago | 8-K | $39.27 | awaiting T+20 | — | — |
May 20, 2026 22w ago | 425 | $37.41 $38.57 | ▲ +3.10% | ▲ +2.77% | — |
May 20, 2026 22w ago | 8-K | $37.41 $38.57 | ▲ +3.10% | ▲ +2.77% | — |
May 19, 2026 22w ago | DEFA14A | $37.42 $38.43 | ▲ +2.70% | ▲ +1.96% | — |
Apr 29, 2026 25w ago | 425 | $37.32 $37.49 | ▲ +0.46% | ▼ −5.59% | — |
Apr 28, 2026 25w ago | 8-K | $37.32 $37.32 | · 0.00% | ▼ −5.46% | — |
Apr 22, 2026 26w ago | 8-K | $37.70 $36.95 | ▼ −1.99% | ▼ −5.15% | — |
US Market Status
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