Exhibit 99.1

PRESS RELEASE                    

STELLAR BANCORP, INC. REPORTS

THIRD QUARTER 2025 RESULTS

HOUSTON, October 24, 2025 - Stellar Bancorp, Inc. (the “Company” or “Stellar”) (NYSE: STEL) today reported net income of $25.7 million, or diluted earnings per share of $0.50, for the third quarter of 2025, compared to net income of $26.4 million, or diluted earnings per share of $0.51, for the second quarter of 2025.

“We are pleased to report strong third quarter results for 2025, highlighted by improved net interest income and margin. We also saw growth in deposits and tangible book value, which further strengthened our balance sheet to support our future,” said Robert R. Franklin, Jr., Stellar’s Chief Executive Officer.

“Our team has continued to reposition the loan portfolio, reducing our exposure to non-relationship real estate commitments and moving toward a more balanced mix of C&I and real estate loans. Our real estate portfolio remains within regulatory guidance, and we intend to stay within those parameters. While loan payoffs persisted during the quarter, we believe this strategic portfolio shift will help moderate payoff activity over the longer term,” Mr. Franklin continued.

“Credit quality remains good, and the Texas markets we serve continue to perform well. Stellar is increasingly recognized as a strong, locally-managed bank focused on serving small-to-medium sized businesses, and we are well-positioned to capitalize on merger-related disruption in our markets. We remain confident in our ability to deepen customer relationships and deliver long-term value for our shareholders,” Mr. Franklin concluded.

Financial Highlights

•Strong Net Interest Margin: Tax equivalent net interest margin for the third quarter of 2025 was 4.20% compared to 4.18% for the second quarter of 2025. The tax equivalent net interest margin, excluding purchase accounting accretion (“PAA”), was 4.00%(1) for the third quarter of 2025 compared to 3.95%(1) for the second quarter of 2025.

•Solid Profitability: Net income for the third quarter of 2025 was $25.7 million, or diluted earnings per share of $0.50, which translated into an annualized return on average assets of 0.97%, an annualized return on average equity of 6.30% and an annualized return on average tangible equity of 11.45%(1).

•Strong Capital Position and Book Value Build: Total risk-based capital ratio increased to 16.33% at September 30, 2025 from 15.98% at June 30, 2025, while book value per share increased to $32.27 at September 30, 2025 from $31.20 at June 30, 2025 and tangible book value per share increased to $21.08(1) at September 30, 2025 from $19.94(1) at June 30, 2025.

•Paydown of Subordinated Debt: On October 1, 2025, the Company completed the previously announced redemption of $30 million of its $60 million of subordinated debt outstanding as of September 30, 2025.

Third Quarter 2025 Results

Net interest income in the third quarter of 2025 increased $2.3 million, or 2.3%, to $100.6 million from $98.3 million for the second quarter of 2025. The net interest margin on a tax equivalent basis increased to 4.20% for the third quarter of 2025 from 4.18% for the second quarter of 2025. The increase in net interest income from the prior quarter was primarily due to the increase in average securities, average yield on securities and deposits in other financial institutions. Net interest income for the third quarter of 2025 benefited from $4.8 million of income from PAA compared to $5.3 million in the second quarter of 2025. Excluding PAA, net interest income (tax equivalent) for the third quarter of 2025 would have been $95.9 million(1) and the tax equivalent net interest margin would have been 4.00%(1).

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(1)     Refer to the calculation of this non-GAAP financial measure on page 10 of this earnings release. The calculation of returns on average tangible equity and the efficiency ratio have been adjusted from prior period disclosures.

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Noninterest income for the third quarter of 2025 was $5.0 million, a decrease of $805 thousand, or 13.9%, compared to $5.8 million for the second quarter of 2025. Noninterest income decreased in the third quarter of 2025 compared to the second quarter of 2025 primarily due to losses on sales and write-downs on foreclosed assets recorded during the third quarter.

Noninterest expense for the third quarter of 2025 increased $3.1 million, or 4.5%, to $73.1 million compared to $70.0 million for the second quarter of 2025. The increase in noninterest expense during the third quarter of 2025 compared to the second quarter of 2025 was primarily due to an increase in salaries and employee benefits of $2.2 million, an increase in professional fees of $314 thousand and a $258 thousand increase in advertising expense. Salaries and benefits during the third quarter of 2025 included $464 thousand in severance expense related to planned upcoming branch closures.

The efficiency ratio was 63.69%(1) for the third quarter of 2025 compared to 61.87%(1) for the second quarter of 2025. Annualized returns on average assets, average equity and average tangible equity were 0.97%, 6.30% and 11.45%(1) for the third quarter of 2025, respectively, compared to 1.01%, 6.62% and 12.16%(1) for the second quarter of 2025, respectively.

Financial Condition

Total assets at September 30, 2025 were $10.63 billion, an increase of $135 million compared to $10.49 billion at June 30, 2025. The increase in total assets was largely due to an increase in interest-bearing deposits at other financial institutions and securities, all of which were funded largely by core deposit growth, partially offset by a decrease in loans.

Total loans at September 30, 2025 decreased $119.5 million to $7.17 billion compared to $7.29 billion at June 30, 2025. At September 30, 2025, the remaining balance of the PAA on loans was $58.1 million.

Total deposits at September 30, 2025 increased $143.8 million to $8.82 billion compared to $8.67 billion at June 30, 2025 primarily due to increases in money market and savings deposits.

Asset Quality

Nonperforming assets totaled $54.2 million, or 0.51% of total assets, at September 30, 2025, compared to $58.2 million, or 0.55% of total assets, at June 30, 2025. The allowance for credit losses on loans as a percentage of total loans was 1.10% at September 30, 2025 compared to 1.14% at June 30, 2025.

The provision for credit losses was $305 thousand for the third quarter of 2025 compared to $1.1 million for the second quarter of 2025. Net charge-offs for the third quarter of 2025 were $3.3 million, or 0.18% (annualized) of average loans, compared to net charge-offs of $206 thousand, or 0.01% (annualized) of average loans, for the second quarter of 2025.

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, October 24, 2025 at 8:00 a.m. Central Time (9:00 a.m. Eastern Time) to discuss its results for the third quarter of 2025. Participants may register for the conference call at https://registrations.events/direct/Q4I6358688 conference ID 63586 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 webcast is available at https://registrations.events/direct/Q4I6358688 and requires pre-registration. 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 Houston, Dallas, Beaumont and surrounding communities in Texas.

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(1)     Refer to the calculation of this non-GAAP financial measure on page 10 of this earnings release. The calculation of returns on average tangible equity and the efficiency ratio have been adjusted from prior period disclosures.

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Investor Relations

ir@stellar.bank

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, 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: 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; risks associated with uninsured deposits and responsive measures by federal or state governments or banking regulators; legislative changes, executive orders, regulatory actions and reforms of the Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation and Texas Department of Banking.

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 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.

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Stellar Bancorp, Inc.

Financial Highlights

(Unaudited)

			2025																		2024
			September 30						June 30						March 31						December 31						September 30
			(Dollars in thousands)
ASSETS:
Cash and due from banks			$	99,407					$	136,060					$	130,932					$	419,967					$	103,735
Interest-bearing deposits at other financial institutions			629,042						442,044						429,643						491,249						412,482
Total cash and cash equivalents			728,449						578,104						560,575						911,216						516,217
Available for sale securities, at fair value			1,842,268						1,729,684						1,719,371						1,673,016						1,691,752
Loans held for investment			7,167,857						7,287,347						7,283,133						7,439,854						7,551,124
Less: allowance for credit losses on loans			(78,924)						(83,165)						(83,746)						(81,058)						(84,501)
Loans, net			7,088,933						7,204,182						7,199,387						7,358,796						7,466,623
Accrued interest receivable			34,865						35,537						37,669						37,884						39,473
Premises and equipment, net			107,803						108,615						109,750						111,856						113,742
Federal Reserve Bank and Federal Home Loan Bank stock			45,437						47,099						20,902						8,209						20,123
Bank-owned life insurance			109,358						108,726						108,108						107,498						106,876
Goodwill			497,318						497,318						497,318						497,318						497,318
Core deposit intangibles, net			75,929						81,468						87,007						92,546						98,116
Other assets			97,753						102,277						94,800						107,451						79,537
Total assets			$	10,628,113					$	10,493,010					$	10,434,887					$	10,905,790					$	10,629,777
LIABILITIES AND SHAREHOLDERS’ EQUITY
LIABILITIES:
Deposits:
Noninterest-bearing			$	3,210,948					$	3,183,693					$	3,205,619					$	3,576,206					$	3,303,048
Interest-bearing
Demand			1,960,857						1,941,156						1,863,752						1,845,749						1,571,504
Money market and savings			2,489,169						2,393,767						2,248,616						2,253,193						2,280,651
Certificates and other time			1,156,489						1,154,998						1,244,726						1,453,236						1,587,398
Total interest-bearing deposits			5,606,515						5,489,921						5,357,094						5,552,178						5,439,553
Total deposits			8,817,463						8,673,614						8,562,713						9,128,384						8,742,601
Accrued interest payable			9,429						7,607						9,856						17,052						16,915
Borrowed funds			—						69,925						119,923						—						60,000
Subordinated debt			70,196						70,165						70,135						70,105						110,064
Other liabilities			77,887						67,865						61,428						82,389						74,074
Total liabilities			8,974,975						8,889,176						8,824,055						9,297,930						9,003,654
SHAREHOLDERS’ EQUITY:
Common stock			512						514						521						534						535
Capital surplus			1,182,781						1,185,048						1,202,628						1,240,050						1,238,619
Retained earnings			547,717						529,216						510,072						492,640						474,905
Accumulated other comprehensive loss			(77,872)						(110,944)						(102,389)						(125,364)						(87,936)
Total shareholders’ equity			1,653,138						1,603,834						1,610,832						1,607,860						1,626,123
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY			$	10,628,113					$	10,493,010					$	10,434,887					$	10,905,790					$	10,629,777

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Stellar Bancorp, Inc.

Financial Highlights

(Unaudited)

			Three Months Ended																														Nine Months Ended
			2025																		2024												2025						2024
			September 30						June 30						March 31						December 31						September 30						September 30						September 30
			(Dollars in thousands, except per share data)
INTEREST INCOME:
Loans, including fees			$	122,557					$	121,814					$	120,640					$	128,738					$	132,372					$	365,011					$	402,942
Securities:
Taxable			16,278						15,293						16,148						14,789						13,898						47,719						35,114
Tax-exempt			808						810						812						814						814						2,430						2,448
Deposits in other financial institutions			5,770						4,782						4,720						5,681						4,692						15,272						11,874
Total interest income			145,413						142,699						142,320						150,022						151,776						430,432						452,378
INTEREST EXPENSE:
Demand, money market and savings deposits			32,376						31,097						27,574						27,877						29,440						91,047						85,369
Certificates and other time deposits			10,920						11,459						13,527						16,830						18,073						35,906						51,915
Borrowed funds			56						407						517						235						840						980						4,314
Subordinated debt			1,417						1,401						1,444						2,123						1,916						4,262						5,745
Total interest expense			44,769						44,364						43,062						47,065						50,269						132,195						147,343
NET INTEREST INCOME			100,644						98,335						99,258						102,957						101,507						298,237						305,035
Provision for (reversal of) credit losses			305						1,090						3,632						942						(5,985)						5,027						(3,822)
Net interest income after provision for credit losses			100,339						97,245						95,626						102,015						107,492						293,210						308,857
NONINTEREST INCOME:
Service charges on deposit accounts			1,545						1,561						1,584						1,590						1,594						4,690						4,840
(Loss) gain on sale/write-down of assets			(491)						(57)						417						(112)						432						(131)						881
Bank-owned life insurance			632						618						610						622						614						1,860						1,792
Debit card and interchange income			572						566						520						570						551						1,658						1,621
Other			2,728						3,103						2,374						2,362						3,111						8,205						8,880
Total noninterest income			4,986						5,791						5,505						5,032						6,302						16,282						18,014
NONINTEREST EXPENSE:
Salaries and employee benefits			43,175						40,927						41,792						43,797						41,123						125,894						121,560
Net occupancy and equipment			4,518						4,399						3,926						4,401						4,570						12,843						13,463
Depreciation			2,015						1,992						1,995						1,984						1,911						6,002						5,823
Data processing and software amortization			5,882						5,620						5,682						5,551						5,706						17,184						16,101
Professional fees			1,601						1,287						1,786						3,428						1,714						4,674						5,996
Regulatory assessments and FDIC insurance			1,688						1,561						1,733						1,636						1,779						4,982						5,932
Amortization of intangibles			5,554						5,548						5,548						5,581						6,212						16,650						18,639
Communications			855						861						847						807						827						2,563						2,611
Advertising			1,425						1,167						782						1,593						878						3,374						2,534
Other			6,429						6,642						6,075						6,488						6,346						19,146						21,033
Total noninterest expense			73,142						70,004						70,166						75,266						71,066						213,312						213,692
INCOME BEFORE INCOME TAXES			32,183						33,032						30,965						31,781						42,728						96,180						113,179
Provision for income taxes			6,513						6,680						6,263						6,569						8,837						19,456						23,388
NET INCOME			$	25,670					$	26,352					$	24,702					$	25,212					$	33,891					$	76,724					$	89,791
EARNINGS PER SHARE
Basic			$	0.50					$	0.51					$	0.46					$	0.47					$	0.63					$	1.48					$	1.68
Diluted			$	0.50					$	0.51					$	0.46					$	0.47					$	0.63					$	1.47					$	1.68

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Stellar Bancorp, Inc.

Financial Highlights

(Unaudited)

			Three Months Ended																														Nine Months Ended
			2025																		2024												2025						2024
			September 30						June 30						March 31						December 31						September 30						September 30						September 30
			(Dollars and share amounts in thousands, except per share data)
Net income			$	25,670					$	26,352					$	24,702					$	25,212					$	33,891					$	76,724					$	89,791
Earnings per share, basic			$	0.50					$	0.51					$	0.46					$	0.47					$	0.63					$	1.48					$	1.68
Earnings per share, diluted			$	0.50					$	0.51					$	0.46					$	0.47					$	0.63					$	1.47					$	1.68
Dividends per share			$	0.14					$	0.14					$	0.14					$	0.14					$	0.13					$	0.42					$	0.39
Return on average assets(A)			0.97		%				1.01		%				0.94		%				0.94		%				1.27		%				0.97		%				1.13		%
Return on average equity(A)			6.30		%				6.62		%				6.21		%				6.21		%				8.49		%				6.37		%				7.73		%
Return on average tangible equity(A)(B)(D)			11.45		%				12.16		%				11.48		%				11.53		%				15.61		%				11.69		%				14.75		%
Net interest margin (tax equivalent)(A)(C)			4.20		%				4.18		%				4.20		%				4.25		%				4.19		%				4.19		%				4.23		%
Net interest margin (tax equivalent) excluding PAA(A)(B)(C)			4.00		%				3.95		%				3.97		%				3.94		%				3.91		%				3.97		%				3.88		%
Efficiency ratio(B)(E)			63.69		%				61.87		%				61.93		%				64.46		%				60.40		%				62.50		%				60.54		%
Capital Ratios
Stellar Bancorp, Inc. (Consolidated)
Equity to assets			15.55		%				15.28		%				15.44		%				14.74		%				15.30		%				15.55		%				15.30		%
Tangible equity to tangible assets(B)(E)			10.74		%				10.34		%				10.42		%				9.87		%				10.27		%				10.74		%				10.27		%
Estimated Total capital ratio (to risk-weighted assets)			16.33		%				15.98		%				15.97		%				16.00		%				15.85		%				16.33		%				15.85		%
Estimated Common equity Tier 1 capital (to risk weighted assets)			14.43		%				14.06		%				14.05		%				14.14		%				13.57		%				14.43		%				13.57		%
Estimated Tier 1 capital (to risk-weighted assets)			14.55		%				14.18		%				14.17		%				14.26		%				13.69		%				14.55		%				13.69		%
Estimated Tier 1 leverage (to average tangible assets)			11.60		%				11.44		%				11.20		%				11.31		%				11.10		%				11.60		%				11.10		%
Stellar Bank
Estimated Total capital ratio (to risk-weighted assets)			15.45		%				15.39		%				15.40		%				15.28		%				15.02		%				15.45		%				15.02		%
Estimated Common equity Tier 1 capital (to risk-weighted assets)			14.27		%				14.18		%				14.20		%				14.13		%				13.58		%				14.27		%				13.58		%
Estimated Tier 1 capital (to risk-weighted assets)			14.27		%				14.18		%				14.20		%				14.13		%				13.58		%				14.27		%				13.58		%
Estimated Tier 1 leverage (to average tangible assets)			11.37		%				11.44		%				11.22		%				11.21		%				11.01		%				11.37		%				11.01		%
Other Data
Weighted average shares:
Basic			51,283						51,529						53,146						53,422						53,541						51,979						53,485
Diluted			51,356						51,569						53,197						53,471						53,580						52,027						53,531
Period end shares outstanding			51,228						51,398						52,141						53,429						53,446						51,228						53,446
Book value per share			$	32.27					$	31.20					$	30.89					$	30.09					$	30.43					$	32.27					$	30.43
Tangible book value per share(B)			$	21.08					$	19.94					$	19.69					$	19.05					$	19.28					$	21.08					$	19.28
Employees - full-time equivalents			1,065						1,062						1,054						1,037						1,040						1,065						1,040

(A)Interim periods annualized.

(B)Refer to the calculation of these non-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)The calculation of return on average tangible equity has been adjusted from prior period disclosures and all periods presented above have been recalculated and disclosed under the same calculation.

(E)The calculation of the efficiency ratio represents total noninterest expense less amortization of core deposits, divided by the sum of net interest income and noninterest income, excluding net gains and losses on the sale/write-down of assets. This calculation has been adjusted from prior period disclosures and all periods presented above have been recalculated and disclosed under the same calculation.

    

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Stellar Bancorp, Inc.

Financial Highlights

(Unaudited)

			Three Months Ended
			September 30, 2025																		June 30, 2025																		September 30, 2024
			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			$	7,228,778					$	122,557					6.73		%				$	7,282,609					$	121,814					6.71		%				$	7,627,522					$	132,372					6.90		%
Securities			1,790,897						17,086						3.79		%				1,729,384						16,103						3.73		%				1,676,614						14,712						3.49		%
Deposits in other financial institutions			505,342						5,770						4.53		%				436,596						4,782						4.39		%				339,493						4,692						5.50		%
Total interest-earning assets			9,525,017						$	145,413					6.06		%				9,448,589						$	142,699					6.06		%				9,643,629						$	151,776					6.26		%
Allowance for credit losses on loans			(82,983)																		(83,700)																		(94,785)
Noninterest-earning assets			1,076,831																		1,099,268																		1,077,422
Total assets			$	10,518,865																	$	10,464,157																	$	10,626,266
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Interest-bearing demand deposits			$	1,935,203					$	14,356					2.94		%				$	1,952,004					$	14,399					2.96		%				$	1,606,736					$	12,458					3.08		%
Money market and savings deposits			2,475,306						18,020						2.89		%				2,371,221						16,698						2.82		%				2,254,767						16,982						3.00		%
Certificates and other time deposits			1,162,461						10,920						3.73		%				1,201,903						11,459						3.82		%				1,620,908						18,073						4.44		%
Borrowed funds			3,156						56						7.04		%				34,427						407						4.74		%				49,077						840						6.81		%
Subordinated debt			70,181						1,417						8.01		%				70,151						1,401						8.01		%				110,007						1,916						6.93		%
Total interest-bearing liabilities			5,646,307						$	44,769					3.15		%				5,629,706						$	44,364					3.16		%				5,641,495						$	50,269					3.54		%
Noninterest-bearing liabilities:
Noninterest-bearing demand deposits			3,172,054																		3,160,791																		3,303,726
Other liabilities			82,993																		78,120																		93,127
Total liabilities			8,901,354																		8,868,617																		9,038,348
Shareholders’ equity			1,617,511																		1,595,540																		1,587,918
Total liabilities and shareholders’ equity			$	10,518,865																	$	10,464,157																	$	10,626,266
Net interest rate spread															2.91		%																2.90		%																2.72		%
Net interest income and margin									$	100,644					4.19		%										$	98,335					4.17		%										$	101,507					4.19		%
Net interest income and margin (tax equivalent)									$	100,739					4.20		%										$	98,427					4.18		%										$	101,578					4.19		%
Cost of funds															2.01		%																2.02		%																2.24		%
Cost of deposits															1.96		%																1.97		%																2.15		%

7

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Stellar Bancorp, Inc.

Financial Highlights

(Unaudited)

			Nine Months Ended September 30,
			2025																		2024
			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			$	7,284,805					$	365,011					6.70		%				$	7,790,957					$	402,942					6.91		%
Securities			1,779,093						50,149						3.77		%				1,556,462						37,562						3.22		%
Deposits in other financial institutions			457,794						15,272						4.46		%				287,960						11,874						5.51		%
Total interest-earning assets			9,521,692						$	430,432					6.04		%				9,635,379						$	452,378					6.27		%
Allowance for credit losses on loans			(82,623)																		(94,236)
Noninterest-earning assets			1,092,163																		1,104,426
Total assets			$	10,531,232																	$	10,645,569
Liabilities and Shareholders' Equity
Interest-bearing liabilities:
Interest-bearing demand deposits			$	1,933,030					$	41,148					2.85		%				$	1,616,313					$	36,949					3.05		%
Money market and savings deposits			2,361,247						49,899						2.83		%				2,211,148						48,420						2.93		%
Certificates and other time deposits			1,219,953						35,906						3.94		%				1,586,623						51,915						4.37		%
Borrowed funds			27,687						980						4.73		%				98,374						4,314						5.86		%
Subordinated debt			70,151						4,262						8.12		%				109,909						5,745						6.98		%
Total interest-bearing liabilities			5,612,068						$	132,195					3.15		%				5,622,367						$	147,343					3.50		%
Noninterest-bearing liabilities:
Noninterest-bearing demand deposits			3,225,666																		3,379,096
Other liabilities			84,388																		92,527
Total liabilities			8,922,122																		9,093,990
Shareholders' equity			1,609,110																		1,551,579
Total liabilities and shareholders' equity			$	10,531,232																	$	10,645,569
Net interest rate spread															2.89		%																2.77		%
Net interest income and margin									$	298,237					4.19		%										$	305,035					4.23		%
Net interest income and margin (tax equivalent)									$	298,519					4.19		%										$	305,266					4.23		%
Cost of funds															2.00		%																2.19		%
Cost of deposits															1.94		%																2.09		%

8

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Stellar Bancorp, Inc.

Financial Highlights

(Unaudited)

			Three Months Ended
			2025																		2024
			September 30						June 30						March 31						December 31						September 30
			(Dollars in thousands)
Loan Portfolio:
Commercial and industrial			$	1,332,795					$	1,346,744					$	1,362,266					$	1,362,260					$	1,350,753
Real estate:
Commercial real estate (including multi-family residential)			3,733,293						3,840,981						3,854,607						3,868,218						3,976,296
Commercial real estate construction and land development			753,381						762,911						721,488						845,494						890,316
1-4 family residential (including home equity)			1,142,614						1,126,523						1,125,837						1,115,484						1,112,235
Residential construction			121,197						137,855						141,283						157,977						161,494
Consumer and other			84,577						72,333						77,652						90,421						60,030
Total loans held for investment			$	7,167,857					$	7,287,347					$	7,283,133					$	7,439,854					$	7,551,124
Deposits:
Noninterest-bearing			$	3,210,948					$	3,183,693					$	3,205,619					$	3,576,206					$	3,303,048
Interest-bearing
Demand			1,960,857						1,941,156						1,863,752						1,845,749						1,571,504
Money market and savings			2,489,169						2,393,767						2,248,616						2,253,193						2,280,651
Certificates and other time			1,156,489						1,154,998						1,244,726						1,453,236						1,587,398
Total interest-bearing deposits			5,606,515						5,489,921						5,357,094						5,552,178						5,439,553
Total deposits			$	8,817,463					$	8,673,614					$	8,562,713					$	9,128,384					$	8,742,601
Asset Quality:
Nonaccrual loans			$	46,250					$	50,505					$	54,518					$	37,212					$	32,140
Accruing loans 90 or more days past due			—						—						—						—						—
Total nonperforming loans			46,250						50,505						54,518						37,212						32,140
Foreclosed assets			7,939						7,652						5,154						1,734						2,984
Total nonperforming assets			$	54,189					$	58,157					$	59,672					$	38,946					$	35,124
Net charge-offs (recoveries)			$	3,323					$	206					$	163					$	2,016					$	3,933
Nonaccrual loans:
Commercial and industrial			$	5,594					$	13,395					$	11,471					$	8,500					$	9,718
Real estate:
Commercial real estate (including multi-family residential)			25,156						23,359						26,383						16,459						10,695
Commercial real estate construction and land development			2,899						3,412						2,027						3,061						4,183
1-4 family residential (including home equity)			12,083						9,965						14,550						9,056						7,259
Residential construction			457						176						—						—						121
Consumer and other			61						198						87						136						164
Total nonaccrual loans			$	46,250					$	50,505					$	54,518					$	37,212					$	32,140
Asset Quality Ratios:
Nonperforming assets to total assets			0.51		%				0.55		%				0.57		%				0.36		%				0.33%
Nonperforming loans to total loans			0.65		%				0.69		%				0.75		%				0.50		%				0.43%
Allowance for credit losses on loans to nonperforming loans			170.65		%				164.67		%				153.61		%				217.83		%				262.92%
Allowance for credit losses on loans to total loans			1.10		%				1.14		%				1.15		%				1.09		%				1.12%
Net charge-offs to average loans (annualized)			0.18		%				0.01		%				0.01		%				0.11		%				0.21%

9

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Stellar Bancorp, Inc.

GAAP Reconciliation and Management’s Explanation of Non-GAAP Financial Measures

(Unaudited)

Stellar’s management uses certain non-GAAP (generally accepted accounting principles) financial measures to evaluate its performance. Stellar believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance and that management and investors benefit from referring to these non-GAAP financial measures in assessing Stellar’s performance and when planning, forecasting, analyzing and comparing past, present and future periods. Specifically, Stellar reviews pre-tax, pre-provision income, pre-tax pre-provision ROAA, tangible book value per share, return on average tangible equity, tangible equity to tangible assets and net interest margin (tax equivalent) excluding PAA for internal planning and forecasting purposes. Stellar has included in this earnings release information relating to these non-GAAP financial measures for the applicable periods presented. These non-GAAP measures should not be considered in isolation or as a substitute for the most directly comparable or other financial measures calculated in accordance with GAAP. Moreover, the manner in which Stellar calculates the non-GAAP financial measures may differ from that of other companies reporting measures with similar names.

			Three Months Ended																														Nine Months Ended
			2025																		2024												2025						2024
			September 30						June 30						March 31						December 31						September 30						September 30						September 30
			(Dollars and share amounts in thousands, except per share data)
Net income			$	25,670					$	26,352					$	24,702					$	25,212					$	33,891					$	76,724					$	89,791
Add: Provision for (reversal of) credit losses			305						1,090						3,632						942						(5,985)						5,027						(3,822)
Add: Provision for income taxes			6,513						6,680						6,263						6,569						8,837						19,456						23,388
Pre-tax, pre-provision income			$	32,488					$	34,122					$	34,597					$	32,723					$	36,743					$	101,207					$	109,357
Total average assets			$	10,518,865					$	10,464,157					$	10,611,691					$	10,649,175					$	10,626,266					$	10,531,232					$	10,645,569
Pre-tax, pre-provision return on average assets(A)			1.23		%				1.31		%				1.32		%				1.22		%				1.38		%				1.28		%				1.37		%
Total shareholders’ equity			$	1,653,138					$	1,603,834					$	1,610,832					$	1,607,860					$	1,626,123					$	1,653,138					$	1,626,123
Less: Goodwill and core deposit intangibles, net			573,247						578,786						584,325						589,864						595,434						573,247						595,434
Tangible shareholders’ equity			$	1,079,891					$	1,025,048					$	1,026,507					$	1,017,996					$	1,030,689					$	1,079,891					$	1,030,689
Shares outstanding at end of period			51,228						51,398						52,141						53,429						53,446						51,228						53,446
Tangible book value per share			$	21.08					$	19.94					$	19.69					$	19.05					$	19.28					$	21.08					$	19.28
Average shareholders’ equity			$	1,617,511					$	1,595,540					$	1,614,242					$	1,614,762					$	1,587,918					$	1,609,110					$	1,551,579
Less: Average goodwill and core deposit intangibles, net			575,836						581,438						586,895						592,471						598,866						581,349						604,890
Average tangible shareholders’ equity			$	1,041,675					$	1,014,102					$	1,027,347					$	1,022,291					$	989,052					$	1,027,761					$	946,689
Net income			$	25,670					$	26,352					$	24,702					$	25,212					$	33,891					$	76,724					$	89,791
Add: Core deposit intangibles amortization, net of tax			4,388						4,383						4,383						4,409						4,907						13,154						14,725
Adjusted net income			$	30,058					$	30,735					$	29,085					$	29,621					$	38,798					$	89,878					$	104,516
Return on average tangible equity(A)(B)			11.45		%				12.16		%				11.48		%				11.53		%				15.61		%				11.69		%				14.75		%
Total assets			$	10,628,113					$	10,493,010					$	10,434,887					$	10,905,790					$	10,629,777					$	10,628,113					$	10,629,777
Less: Goodwill and core deposit intangibles, net			573,247						578,786						584,325						589,864						595,434						573,247						595,434
Tangible assets			$	10,054,866					$	9,914,224					$	9,850,562					$	10,315,926					$	10,034,343					$	10,054,866					$	10,034,343
Tangible equity to tangible assets			10.74		%				10.34		%				10.42		%				9.87		%				10.27		%				10.74		%				10.27		%
Net interest income (tax equivalent)			$	100,739					$	98,427					$	99,353					$	103,039					$	101,578					$	298,519					$	305,266
Less: Purchase accounting accretion			4,800						5,344						5,397						7,555						6,795						15,541						25,444
Adjusted net interest income (tax equivalent)			$	95,939					$	93,083					$	93,956					$	95,484					$	94,783					$	282,978					$	279,822
Average earning assets			$	9,525,017					$	9,448,589					$	9,592,205					$	9,653,162					$	9,643,629					$	9,521,692					$	9,635,379
Net interest margin (tax equivalent) excluding PAA(A)			4.00		%				3.95		%				3.97		%				3.94		%				3.91		%				3.97		%				3.88		%
Noninterest expense			$	73,142					$	70,004					$	70,166					$	75,266					$	71,066					$	213,312					$	213,692
Less: Core deposit intangibles amortization			5,554						5,548						5,548						5,581						6,212						16,650						18,639
Adjusted noninterest expense			$	67,588					$	64,456					$	64,618					$	69,685					$	64,854					$	196,662					$	195,053
Net interest income			$	100,644					$	98,335					$	99,258					$	102,957					$	101,507					$	298,237					$	305,035
Noninterest income			4,986						5,791						5,505						5,032						6,302						16,282						18,014
Less: (Loss) gain on sale of assets			(491)						(57)						417						(112)						432						(131)						881
Adjusted noninterest income			5,477						5,848						5,088						5,144						5,870						16,413						17,133
Net interest income plus adjusted noninterest income			$	106,121					$	104,183					$	104,346					$	108,101					$	107,377					$	314,650					$	322,168
Efficiency ratio(C)			63.69		%				61.87		%				61.93		%				64.46		%				60.40		%				62.50		%				60.54		%

(A)Interim periods annualized.

(B)The calculation of return on average tangible equity has been adjusted from prior period disclosures and all periods presented above have been recalculated and disclosed under the same calculation.

(C)The calculation of the efficiency ratio has been adjusted from prior period disclosures and all periods presented above have been recalculated and disclosed under the same calculation.

10