• It's like a regional U.S. Bank or PNC, concentrated on community banking for businesses and individuals primarily in the Greater Houston and Dallas areas.
• Think of it as the community-focused alternative to a national bank like Wells Fargo, serving local businesses and individuals across the Greater Houston and Dallas metros.

• Deposit Services: Stellar Bancorp offers various deposit accounts, including checking, savings, money market, and certificates of deposit, for both individual and business customers.
• Commercial and Industrial Loans: The bank provides loans to businesses for operating capital, equipment purchases, expansion, and other commercial needs.
• Real Estate Loans: Lending services include commercial real estate loans, construction loans, and residential mortgage loans.
• Consumer Loans: Stellar Bancorp offers personal loans to individuals for various purposes, such as auto loans, personal lines of credit, and other secured or unsecured loans.
• Treasury Management Services: Businesses can access a suite of cash management solutions, including remote deposit capture, ACH services, and other financial tools to optimize cash flow.

Stellar Bancorp (STEL), through its subsidiary Stellar Bank, operates as a community bank primarily serving the greater Houston, Dallas, San Antonio, and Austin metropolitan areas in Texas. Like most diversified banks, Stellar Bancorp serves a broad base of both individuals and businesses. Due to the confidential nature of banking relationships, specific major customer names are not publicly disclosed.

Given the diverse customer base and the impracticality of identifying specific "major customer companies" that are publicly named, Stellar Bancorp's major customers are best described by the following categories:

1. Individuals and Households: This segment comprises consumers who utilize a wide range of personal banking services, including checking and savings accounts, mortgages, home equity loans, personal loans, and credit cards.
2. Small to Medium-sized Businesses (SMBs): This category includes various local and regional commercial enterprises that require financial solutions such as business checking and savings accounts, commercial loans, lines of credit, treasury management services, and other business banking products to support their operations and growth.
3. Commercial Real Estate Developers and Investors: Stellar Bancorp has a significant focus on commercial real estate lending, serving clients involved in the acquisition, development, and investment of various property types, including office, retail, industrial, and multi-family residential projects.

Robert R. Franklin, Jr. Chief Executive Officer and Director

Mr. Franklin has over 40 years of experience in Houston banking. He currently serves as Executive Chairman of Stellar Bank and Chief Executive Officer of Stellar Bancorp, Inc.. He previously held the positions of Chairman, President, and Chief Executive Officer of CBTX, Inc. from 2013 to 2022. His career also includes serving as President of American Bank until its sale to Whitney Holding Corp. in early 2001. Subsequently, he was President of Horizon Capital Bank, which was sold to Cullen/Frost Bankers, Inc. in 2005. He founded VB Texas, Inc. in November 2006, serving as Chairman, President, and Chief Executive Officer until its merger of equals with CBTX, Inc. in 2013. Mr. Franklin joined Stellar Bancorp in 2023 following the merger of equals between Allegiance and CBTX.

Paul P. Egge Senior Executive Vice President and Chief Financial Officer

Mr. Egge possesses over 20 years of financial services experience, primarily as an investment banker providing strategic and capital markets advisory services to financial institutions. He serves as Senior Executive Vice President and Chief Financial Officer of Stellar Bank. Prior to joining Allegiance in 2016, he was the Director of Capital Planning and Corporate Development for Cadence Bank. He also previously served as Executive Vice President and Chief Financial Officer of Allegiance Bank and Allegiance Bancshares, Inc.

Ramon A. Vitulli III President and Chief Executive Officer of Stellar Bank

Mr. Vitulli has over 30 years of banking experience. He currently serves as President of Stellar Bancorp, Inc. and Chief Executive Officer of Stellar Bank. He previously held the roles of Chief Executive Officer of Allegiance Bank and President of Allegiance Bancshares, Inc. His banking career began as a loan review examiner at Charter National Bank, followed by a tenure at Sterling Bank before he joined Allegiance Bank in 2007 prior to its opening.

Steven F. Retzloff Executive Chairman

Mr. Retzloff serves as Executive Chairman of Stellar Bancorp, Inc. and Senior Executive Chairman of Stellar Bank. He brings more than 30 years of Houston banking experience. He was one of the organizers of Allegiance and previously served as Chairman of Allegiance Bank and CEO of Allegiance Bancshares, Inc. His past professional experience also includes roles at General Motors, Bristol Myers, Retzloff Capital Corporation, and as CEO of Travis Body & Trailer, Inc.

Justin M. Long Senior Executive Vice President, General Counsel and Corporate Secretary

Mr. Long serves as Senior Executive Vice President, General Counsel and Corporate Secretary of Stellar Bancorp, Inc. and Stellar Bank.

The key risks to Stellar Bancorp (STEL) primarily revolve around challenges to its profitability and growth in the evolving banking landscape.

1. Erosion of Banking Margins and Slower Growth due to Digital Disruption, Rising Costs, and Competitive Pressures: Stellar Bancorp faces significant challenges from digital disruption and increasing compliance and technology costs, which are projected to erode banking margins and threaten long-term earnings stability. Profit margins are forecast to shrink in the coming years. The company has experienced declines in revenue and earnings per share, and its net interest margin has decreased. Analysts anticipate modest annual revenue and earnings growth that lags behind the broader market, indicating potential limitations to its upside potential.
2. Geographic Concentration Risk: Stellar Bancorp primarily serves the growing Texas business community, which, while offering regional growth tailwinds, also exposes the company to an underestimated risk from geographic concentration. A potential regional economic downturn in Texas or the Southwest could pressure loan growth and future earnings, impacting the company's financial performance.
3. Exposure to Fluctuations in Interest Rates and Regulatory Changes: As a financial institution, Stellar Bancorp is inherently sensitive to the monetary policies and regulations of the Federal Reserve, which can adversely affect its business. The company also faces cyclical headwinds from rising interest expenses. The broader banking system is subject to ongoing regulatory scrutiny and potential disruptions, as evidenced by recent bank failures.

Stellar Bancorp (STEL) operates primarily in the commercial banking and community banking sectors, serving small to medium-sized businesses, professionals, and individual customers with a diversified range of financial products and services. The company's operations are concentrated in Texas, particularly within the Houston, Dallas, and Beaumont metropolitan areas.

The addressable markets for Stellar Bancorp's main products and services are as follows:

• Commercial Banking Market (Texas): The market size of the Commercial Banking industry in Texas is projected to be $108.7 billion in 2025.
• Community Banking Market (U.S.): The U.S. community banking market was valued at $6.35 billion in 2024 and is expected to grow to $19.39 billion in 2025, with a compound annual growth rate (CAGR) of 9.0%. This market is projected to reach $26.98 billion by 2029.

Stellar Bancorp (STEL) is expected to drive future revenue growth over the next 2-3 years through several key strategies:

1. Loan Portfolio Growth, particularly Commercial & Industrial (C&I) and Real Estate Loans: Stellar Bancorp is strategically focused on expanding its loan book, with an emphasis on increasing its Commercial & Industrial (C&I) loan mix and real estate loans. The company is actively repositioning its loan portfolio to reduce exposure to non-relationship real estate commitments and enhance its C&I and real estate loan offerings. Stellar Bancorp anticipates continued loan growth into 2026.

2. Deposit Growth and Cultivating Full Client Relationships: A significant driver of balance sheet expansion has been strong deposit growth, which management attributes to an emphasis on securing "full client relationships." This robust deposit growth is crucial for strengthening the company's balance sheet and providing the necessary liquidity to support future lending activities, thereby contributing to net interest income.

3. Expansion within the Small-to-Medium-Sized Enterprise (SME) Sector and Texas Market: Stellar Bancorp's strategic focus on delivering commercial banking services positions it favorably for growth within the SME sector. The company aims to capitalize on the increasing demand for financial services in this segment. Furthermore, its presence in the expanding Texas business community offers ongoing strategic opportunities for market penetration and growth.

4. Optimization and Defense of Net Interest Income (NII) and Net Interest Margin (NIM): Management has underscored its commitment to defending net interest margins and optimizing expenses. Recent earnings reports have highlighted improvements in net interest income and margin. The company's CFO expressed confidence in maintaining a 4% net interest margin (excluding purchase accounting accretion), even in a potential Federal Reserve easing cycle, through strategic management of deposit costs.

5. Pursuit of Strategic Opportunities and Operating Leverage: While merger and acquisition (M&A) activities are considered only if they align with strengthening funding and the balance sheet, Stellar Bancorp intends to pursue growth through a "more normalized organic pattern." The company is also actively seeking opportunities with "downstream partners" that can enhance its operating leverage, suggesting a proactive approach to strategic partnerships and efficiency gains to drive revenue.

Share Repurchases

• Stellar Bancorp's Board of Directors authorized a new share repurchase program in May 2025, allowing for the repurchase of up to $65 million of common stock through May 31, 2026.
• Prior to this, a share repurchase program authorized up to $60 million of common stock through May 31, 2025, which was terminated upon the approval of the new program.
• Year-to-date in 2025, the company had repurchased approximately $64 million in shares by the third quarter.

Share Issuance

• In 2023, Stellar Bancorp was formed through the merger of Allegiance Bancshares, Inc. and CBTX, Inc. In connection with this merger, 28.1 million shares of common stock were issued to Allegiance shareholders.

Capital Expenditures

• Stellar Bancorp reported capital expenditures of $4.663 million in 2025, $6.861 million in 2024, and $3.811 million in 2023.
• The company prioritizes innovations in financial technology to improve customer experience and operational efficiency.
• As of December 31, 2024, and 2023, there were no known material future cash requirements for capital expenditures beyond the ordinary course of business.