Stellar Bancorp, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Stellar Bancorp, Inc. has filed its annual report detailing its 2023 financial performance and business operations.</b>

AI Summary

Stellar Bancorp, Inc. (STEL) filed a Annual Report (10-K) with the SEC on February 29, 2024. Stellar Bancorp, Inc. filed its 2023 Form 10-K on February 29, 2024. The filing covers the fiscal year ending December 31, 2023. The company's principal business is national commercial banking. Stellar Bancorp, Inc. is incorporated in Texas. The company's headquarters are located at 9 Greenway Plaza, Suite 110, Houston, TX 77046.

Why It Matters

For investors and stakeholders tracking Stellar Bancorp, Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of Stellar Bancorp's financial health, strategic initiatives, and risk factors for the fiscal year 2023, crucial for investors assessing its performance and future outlook. The detailed financial statements and disclosures within this report are essential for stakeholders to understand the company's revenue streams, profitability, asset management, and debt levels as of December 31, 2023.

Risk Assessment

Risk Level: medium — Stellar Bancorp, Inc. shows moderate risk based on this filing. The company operates in the national commercial banking sector, which is subject to significant regulatory oversight and economic fluctuations, as indicated by its SIC code 6021 and the nature of a 10-K filing.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to assess Stellar Bancorp's performance and strategic positioning in the banking industry.

Key Numbers

• 2023-12-31 — Fiscal Year End (Period covered by the report)
• 2024-02-29 — Filing Date (Date the 10-K was filed)
• 6021 — SIC Code (Standard Industrial Classification for National Commercial Banks)

Key Players & Entities

• Stellar Bancorp, Inc. (company) — Filer and subject of the report
• STEL (company) — Ticker symbol for Stellar Bancorp, Inc.
• 9 Greenway Plaza, Suite 110, Houston, TX 77046 (company) — Business and mailing address
• CBTX, Inc. (company) — Former company name
• CBFH, Inc. (company) — Former company name

FAQ

Industry Context

Stellar Bancorp, Inc. operates within the national commercial banking industry, a sector characterized by its role in financial intermediation, lending, and deposit-taking services.

Regulatory Implications

As a commercial bank, Stellar Bancorp is subject to extensive regulation by federal and state authorities, including but not limited to capital requirements, lending standards, and consumer protection laws.

What Investors Should Do

1. Analyze the detailed financial statements for revenue, net income, and asset growth.
2. Review the risk factors section for potential challenges and mitigation strategies.
3. Compare key financial metrics to industry benchmarks and prior year performance.

Key Dates

• 2023-12-31: Fiscal Year End — Marks the end of the reporting period for the 10-K.
• 2024-02-29: Filing Date — Official date Stellar Bancorp, Inc. submitted its 10-K to the SEC.

Year-Over-Year Comparison

This filing is the annual report (10-K) for the fiscal year ending December 31, 2023, providing a comprehensive update compared to previous filings.

Key Financial Figures

• $0.01 — ich registered Common stock, par value $0.01 per share STEL New York Stock Exchange
• $10.65 b — cember 31, 2023, we had total assets of $10.65 billion, total loans of $7.93 billion, to
• $7.93 b — ssets of $10.65 billion, total loans of $7.93 billion, total deposits of $8.87 billion
• $8.87 billion — ans of $7.93 billion, total deposits of $8.87 billion and total shareholders' equity of $1.52
• $1.52 billion — llion and total shareholders' equity of $1.52 billion. Business Strategy The Company's obj
• $467 thousand — rage funded loan size was approximately $467 thousand. Community Banking Services Lending A

Filing Documents

• stel-20231231.htm (10-K) — 3819KB
• stel-descriptionofregistra.htm (EX-4.2) — 20KB
• stel-subsidiaries2023xexx2.htm (EX-21.1) — 12KB
• stel10-kconsentx2023xexx231.htm (EX-23.1) — 2KB
• stel-20231231xxpowerofatto.htm (EX-24.1) — 27KB
• stel-20231231x10kxexx311.htm (EX-31.1) — 10KB
• stel-20231231x10kxexx312.htm (EX-31.2) — 10KB
• stel-20231231x10kxexx321.htm (EX-32.1) — 4KB
• stel-20231231x10kxexx322.htm (EX-32.2) — 4KB
• stel-20231231x10kxexx971.htm (EX-97.1) — 37KB
• image.jpg (GRAPHIC) — 30KB
• stel-20231231_g1.jpg (GRAPHIC) — 57KB
• 0001473844-24-000010.txt (&nbsp;) — 18951KB
• stel-20231231.xsd (EX-101.SCH) — 86KB
• stel-20231231_cal.xml (EX-101.CAL) — 141KB
• stel-20231231_def.xml (EX-101.DEF) — 545KB
• stel-20231231_lab.xml (EX-101.LAB) — 1191KB
• stel-20231231_pre.xml (EX-101.PRE) — 862KB
• stel-20231231_htm.xml (XML) — 3974KB

Business

Business 1 Item 1A.

Risk Factors

Risk Factors 16 Item 1B. Unresolved Staff Comments 36

Cybersecurity

Item 1C. Cybersecurity 36 Item 2.

Properties

Properties 38 Item 3.

Legal Proceedings

Legal Proceedings 38 Item 4. Mine Safety Disclosures 38 PART II Item 5. Market for Registrant's Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities 39 Item 6. [Reserved] 41 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 42 Item 7A.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 65 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 65 Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 65 Item 9A.

Controls and Procedures

Controls and Procedures 65 Item 9B. Other Information 66

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 66 PART III Item 10. Directors, Executive Officers and Corporate Governance 67 Item 11.

Executive Compensation

Executive Compensation 67 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters 67 Item 13. Certain Relationships and Related Transactions, and Director Independence 67 Item 14. Principal Accounting Fees and Services 67 PART IV Item 15. Exhibits and Financial Statement Schedules 68 Item 16. Form 10-K Summary 70

Signatures

Signatures 71 Table of Contents PART I Except where the context otherwise requires or where otherwise indicated in this Annual Report on Form 10-K the term "Stellar" refers to Stellar Bancorp, Inc., the terms "we," "us," "our," "Company" and "our business" refer to Stellar Bancorp, Inc. and our wholly owned banking subsidiary, Stellar Bank, a Texas banking association, and the term or the "Bank" refers to Stellar Bank.

BUSINESS

ITEM 1. BUSINESS The disclosures set forth in this item are qualified by "Item 1A. Risk Factors," and; the section captioned "Cautionary Notice Regarding Forward-Looking Statements" in the forepart of this report, Item 7. "Cautionary Notice Regarding Forward-Looking Statements" and other cautionary statements set forth elsewhere in this Annual Report on Form 10-K. Merger of Equals On October 1, 2022, Allegiance Bancshares, Inc. ("Allegiance") and CBTX, Inc. ("CBTX") merged (the "Merger") with CBTX as the surviving corporation that was renamed Stellar Bancorp, Inc. and the ticker symbol changed to "STEL." At the effective time of the Merger, each outstanding share of Allegiance common stock was converted into the right to receive 1.4184 shares of common stock of the Company. Immediately following the Merger, CommunityBank of Texas, N.A. ("CommunityBank"), a national banking association and a wholly-owned subsidiary of CBTX, merged with and into Allegiance Bank, a wholly-owned subsidiary of Allegiance (the "Bank Merger"), with Allegiance Bank as the surviving bank. In connection with the operational conversion, Allegiance Bank changed its name to Stellar Bank on February 18, 2023. After the Merger, Stellar Bank became one of the largest banks based in Houston, Texas. The Company's results of operations for the year ended December 31, 2022 reflect Allegiance's results for the first nine months of 2022, while the results for the fourth quarter of 2022, after the Merger on October 1, 2022, set forth the results of operations for Stellar. The Company's historical operating results as of and for the year ended December 31, 2021, as presented and discussed in this Annual Report on Form 10-K, do not include the historical results of CBTX. The Merger had a significant impact on all aspects of the Company's financial statements and, as a result, financial results for periods after the Merger are not comparable to financial results for periods prior to the Merger. See Note

View Full Filing

View this 10-K filing on SEC EDGAR