Exhibit 99.1

PRESS RELEASE

STELLAR BANCORP, INC. REPORTS

SECOND QUARTER 2024 RESULTS

HOUSTON, July 26, 2024 - Stellar Bancorp, Inc. (the “Company” or “Stellar”) (NYSE: STEL) today reported net income of $29.8 million, or diluted earnings per share of $0.56, for the second quarter of 2024 compared to net income of $26.1 million, or diluted earnings per share of $0.49, for the first quarter of 2024.

“We are pleased to announce our second quarter 2024 results,” said Robert R. Franklin, Jr., Stellar’s Chief Executive Officer. “Our disciplined focus on capital, credit and liquidity gives us strength and optionality as we move into the back half of the year. Although many anticipate lower interest rates in September, we are prepared if that does not come to pass,” said Mr. Franklin. “Stellar Bank is well-positioned for either outcome.”

“In addition to building capital, we have reduced our commercial real estate exposure and are pursuing a more balanced approach to our lending through new additions to our team to help us build our commercial and industrial portfolio. Our credit quality remains steady as the economy in our markets remains solid. We operate in some of, if not the best, markets in the country and they have shown resilience throughout this tightening cycle,” Mr. Franklin continued.

“Our focus on capital, credit and liquidity will not change. We will continue to monitor effects of higher interest rates and the contentious presidential election on our markets. We believe that building and maintaining a strong balance sheet, positions us to take advantage of opportunities that arise from this economic cycle. Our focus remains on building long-term shareholder value as we embark on the second half of 2024 and the future is bright,” concluded Mr. Franklin.

Second Quarter 2024 Financial Highlights

•Solid Profitability: Second quarter 2024 net income of $29.8 million, or diluted earnings per share of $0.56, translated into an annualized return on average assets of 1.13%, an annualized return on average equity of 7.78% and an annualized return on average tangible equity of 12.82%(1).

•Meaningful Regulatory Capital Build: Total risk-based capital ratio increased to 15.34% at June 30, 2024 from 14.62% at March 31, 2024 and Tier 1 leverage ratio increased to 10.93% at June 30, 2024 from 10.55% at March 31, 2024.

•Strong Net Interest Margin: Tax equivalent net interest margin was 4.24% for the second quarter of 2024 compared to 4.26% for the first quarter of 2024. The tax equivalent net interest margin, excluding purchase accounting accretion (“PAA”), was 3.82%(1) for the second quarter of 2024 compared to 3.91%(1) for the first quarter of 2024.

•Stable Credit Performance: Net charge-offs of $715 thousand, or 0.02%, for the year-to-date 2024.

Second Quarter 2024 Results

Net interest income in the second quarter of 2024 decreased $708 thousand, or 0.7%, to $101.4 million from $102.1 million for the first quarter of 2024. The net interest margin on a tax equivalent basis decreased 2 basis points to 4.24% for the second quarter of 2024 from 4.26% for the first quarter of 2024. The decrease in the net interest margin from the prior quarter was primarily due to the impact of increased interest rates on our cost of funding only partially offset by increased income on interest earning assets. Net interest income for the second quarter of 2024 benefited from $10.1 million of income from purchase accounting adjustments compared to $8.6 million in the first quarter of 2024. Excluding purchase accounting adjustments, net interest income (tax equivalent) for the second quarter 2024 would have been $91.4 million(1) and the tax equivalent net interest margin would have been 3.82%(1).

_____________________

(1) Refer to page 10 of this earnings release for the calculation of this non-GAAP financial measure.

1

Noninterest income for the second quarter of 2024 was $5.4 million, a decrease of $880 thousand, or 14.0%, compared to $6.3 million for the first quarter of 2024. Noninterest income decreased in the second quarter of 2024 compared to the first quarter of 2024 primarily due to

a decrease in gains on sales of assets in the second quarter of 2024 compared to the first quarter of 2024.

Noninterest expense for the second quarter of 2024 decreased $194 thousand, or 0.3%, to $71.2 million compared to $71.4 million for the first quarter of 2024. The decrease in noninterest expense in the second quarter of 2024 compared to the first quarter of 2024 was primarily due to a $2.3 million decrease in salaries and employee benefits and a $1.0 million decrease in professional fees partially offset by other expenses.

The efficiency ratio was 66.63% for the second quarter of 2024 compared to 66.18% for the first quarter of 2024. Annualized returns on average assets, average equity and average tangible equity were 1.13%, 7.78% and 12.82%(1) for the second quarter of 2024, respectively, compared to 0.98%, 6.88% and 11.47%(1), respectively, for the first quarter of 2024.

Financial Condition

Total loans at June 30, 2024 decreased $194.2 million to $7.71 billion compared to $7.91 billion at March 31, 2024. At June 30, 2024, the remaining balance of the purchase accounting adjustments on loans was $87.4 million.

Total deposits at June 30, 2024 decreased $69.4 million to $8.73 billion compared to $8.79 billion at March 31, 2024, due to decreases in certificates and other time deposits, noninterest-bearing deposits and interest-bearing demand deposits, partially offset by increases in money market and savings deposits. Shifts in the deposit mix were primarily driven by the current interest rate environment and an intensely competitive market for deposits. Estimated uninsured deposits totaled $4.79 billion and estimated uninsured deposits net of collateralized deposits of $1.01 billion were $3.78 billion, or 43.3%, of total deposits at June 30, 2024.

Total assets at June 30, 2024 were $10.72 billion, a decrease of $5.6 million, compared to $10.73 billion at March 31, 2024.

Asset Quality

Nonperforming assets totaled $53.4 million, or 0.50% of total assets, at June 30, 2024, compared to $57.1 million, or 0.53% of total assets, at March 31, 2024. The allowance for credit losses on loans as a percentage of total loans was 1.23% at June 30, 2024 and 1.22% at March 31, 2024.

The second quarter of 2024 included a reversal of provision for credit losses expenses of $1.9 million compared to a $4.1 million provision for credit losses recorded during the first quarter of 2024. Net charge-offs for the second quarter of 2024 were $1 thousand, or 0.00% (annualized) of average loans, compared to net charge-offs of $714 thousand, or 0.04% (annualized) of average loans, for the first quarter of 2024.

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, July 26, 2024 at 8:00 a.m. Central Time (9:00 a.m. Eastern Time) to discuss its results for the second quarter of 2024. Participants may register for the conference call at https://registrations.events/direct/Q4I635860 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 audio-only webcast may be accessed at https://events.q4inc.com/attendee/232230638. 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 the Houston, Dallas, Beaumont and surrounding communities in Texas.

Investor Relations

IR@stellar.bank

2

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, statements about the benefits of the Company’s merger with Allegiance Bancshares, Inc. (the “Merger”), including 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: the risk that the cost savings and any revenue synergies from the Merger may not be fully realized or may take longer than anticipated to be realized; disruption to our business as a result of the Merger; the risk that the integration of operations will be materially delayed or will be more costly or difficult than we expected or that we are otherwise unable to successfully integrate our legacy businesses; the amount of the costs, fees, expenses and charges related to the Merger; reputational risk and the reaction of our customers, suppliers, employees or other business partners to the Merger; 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 caused by recent bank failures, risks associated with uninsured deposits and responsive measures by federal or state governments or banking regulators, including increases in the cost of our deposit insurance assessments and other actions of the Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation and Texas Department of Banking and legislative and regulatory actions and reforms.

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 https://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.

3

Stellar Bancorp, Inc.

Financial Highlights

(Unaudited)

			2024												2023
			June 30						March 31						December 31						September 30						June 30
			(Dollars in thousands)
ASSETS
Cash and due from banks			$	110,341					$	74,663					$	121,004					$	94,970					$	105,913
Interest-bearing deposits at other financial institutions			379,909						325,079						278,233						207,302						198,176
Total cash and cash equivalents			490,250						399,742						399,237						302,272						304,089
Available for sale securities, at fair value			1,630,971						1,523,100						1,395,680						1,414,952						1,478,222
Loans held for investment			7,713,897						7,908,111						7,925,133						8,004,528						8,068,718
Less: allowance for credit losses on loans			(94,772)						(96,285)						(91,684)						(93,575)						(100,195)
Loans, net			7,619,125						7,811,826						7,833,449						7,910,953						7,968,523
Accrued interest receivable			43,348						45,466						44,244						43,536						42,051
Premises and equipment, net			113,984						115,698						118,683						119,332						119,142
Federal Home Loan Bank stock			15,089						16,050						25,051						29,022						24,478
Bank-owned life insurance			106,262						105,671						105,084						104,699						104,148
Goodwill			497,318						497,318						497,318						497,318						497,260
Core deposit intangibles, net			104,315						110,513						116,712						122,944						129,805
Other assets			103,001						103,838						111,681						120,432						110,633
Total assets			$	10,723,663					$	10,729,222					$	10,647,139					$	10,665,460					$	10,778,351
LIABILITIES AND SHAREHOLDERS’ EQUITY
LIABILITIES:
Deposits:
Noninterest-bearing			$	3,308,441					$	3,323,149					$	3,546,815					$	3,656,288					$	3,713,536
Interest-bearing
Demand			1,564,405						1,576,261						1,659,999						1,397,492						1,437,509
Money market and savings			2,213,031						2,203,767						2,136,777						2,128,950						2,174,073
Certificates and other time			1,639,426						1,691,539						1,529,876						1,503,891						1,441,251
Total interest-bearing deposits			5,416,862						5,471,567						5,326,652						5,030,333						5,052,833
Total deposits			8,725,303						8,794,716						8,873,467						8,686,621						8,766,369
Accrued interest payable			12,327						12,227						11,288						7,612						4,555
Borrowed funds			240,000						215,000						50,000						323,981						369,963
Subordinated debt			109,964						109,864						109,765						109,665						109,566
Other liabilities			70,274						66,717						81,601						76,735						69,218
Total liabilities			9,157,868						9,198,524						9,126,121						9,204,614						9,319,671
SHAREHOLDERS’ EQUITY:
Common stock			536						536						533						533						533
Capital surplus			1,238,477						1,235,221						1,232,627						1,231,686						1,228,532
Retained earnings			447,948						425,130						405,945						385,600						361,619
Accumulated other comprehensive loss			(121,166)						(130,189)						(118,087)						(156,973)						(132,004)
Total shareholders’ equity			1,565,795						1,530,698						1,521,018						1,460,846						1,458,680
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY			$	10,723,663					$	10,729,222					$	10,647,139					$	10,665,460					$	10,778,351

4

Stellar Bancorp, Inc.

Financial Highlights

(Unaudited)

			Three Months Ended																														Six Months Ended
			2024												2023																		2024						2023
			June 30						March 31						December 31						September 30						June 30						June 30						June 30
			(Dollars in thousands, except per share data)
INTEREST INCOME:
Loans, including fees			$	135,885					$	134,685					$	139,114					$	138,948					$	133,931					$	270,570					$	259,660
Securities:
Taxable			11,923						9,293						9,622						9,493						9,726						21,216						19,379
Tax-exempt			816						818						418						437						436						1,634						1,698
Deposits in other financial institutions			3,555						3,627						3,021						2,391						2,865						7,182						6,636
Total interest income			152,179						148,423						152,175						151,269						146,958						300,602						287,373
INTEREST EXPENSE:
Demand, money market and savings deposits			28,399						27,530						25,033						23,557						20,708						55,929						38,745
Certificates and other time deposits			18,758						15,084						15,075						13,282						9,622						33,842						12,929
Borrowed funds			1,700						1,774						4,154						5,801						6,535						3,474						7,852
Subordinated debt			1,912						1,917						1,983						1,908						1,812						3,829						3,739
Total interest expense			50,769						46,305						46,245						44,548						38,677						97,074						63,265
NET INTEREST INCOME			101,410						102,118						105,930						106,721						108,281						203,528						224,108
(Reversal of) provision for credit losses			(1,935)						4,098						1,047						2,315						1,915						2,163						5,581
Net interest income after provision for credit losses			103,345						98,020						104,883						104,406						106,366						201,365						218,527
NONINTEREST INCOME:
Service charges on deposit accounts			1,648						1,598						1,520						1,620						1,575						3,246						2,924
(Loss) gain on sale of assets			(64)						513						198						—						(6)						449						192
Bank-owned life insurance			591						587						573						551						532						1,178						1,054
Debit card and ATM income			543						527						542						935						1,821						1,070						3,519
Other			2,698						3,071						4,053						1,589						1,561						5,769						5,292
Total noninterest income			5,416						6,296						6,886						4,695						5,483						11,712						12,981
NONINTEREST EXPENSE:
Salaries and employee benefits			39,061						41,376						40,464						39,495						37,300						80,437						77,075
Net occupancy and equipment			4,503						4,390						4,572						4,455						3,817						8,893						7,905
Depreciation			1,948						1,964						1,955						1,952						1,841						3,912						3,677
Data processing and software amortization			5,501						4,894						5,000						4,798						4,674						10,395						9,728
Professional fees			1,620						2,662						3,867						997						1,564						4,282						3,091
Regulatory assessments and FDIC insurance			2,299						1,854						5,169						1,814						2,755						4,153						4,049
Amortization of intangibles			6,215						6,212						6,247						6,876						6,881						12,427						13,760
Communications			847						937						743						663						689						1,784						1,390
Advertising			891						765						1,004						877						907						1,656						1,746
Acquisition and merger-related expenses			—						—						3,072						3,421						2,897						—						9,062
Other			8,331						6,356						5,848						5,400						5,882						14,687						10,322
Total noninterest expense			71,216						71,410						77,941						70,748						69,207						142,626						141,805
INCOME BEFORE INCOME TAXES			37,545						32,906						33,828						38,353						42,642						70,451						89,703
Provision for income taxes			7,792						6,759						6,562						7,445						7,467						14,551						17,380
NET INCOME			$	29,753					$	26,147					$	27,266					$	30,908					$	35,175					$	55,900					$	72,323
EARNINGS PER SHARE
Basic			$	0.56					$	0.49					$	0.51					$	0.58					$	0.66					$	1.05					$	1.36
Diluted			$	0.56					$	0.49					$	0.51					$	0.58					$	0.66					$	1.04					$	1.36

5

Stellar Bancorp, Inc.

Financial Highlights

(Unaudited)

			Three Months Ended																														Six Months Ended
			2024												2023																		2024						2023
			June 30						March 31						December 31						September 30						June 30						June 30						June 30
			(Dollars and share amounts in thousands, except per share data)
Net income			$	29,753					$	26,147					$	27,266					$	30,908					$	35,175					$	55,900					$	72,323
Earnings per share, basic			$	0.56					$	0.49					$	0.51					$	0.58					$	0.66					$	1.05					$	1.36
Earnings per share, diluted			$	0.56					$	0.49					$	0.51					$	0.58					$	0.66					$	1.04					$	1.36
Dividends per share			$	0.13					$	0.13					$	0.13					$	0.13					$	0.13					$	0.26					$	0.26
Return on average assets(A)			1.13		%				0.98		%				1.02		%				1.14		%				1.31		%				1.06		%				1.35		%
Return on average equity(A)			7.78		%				6.88		%				7.33		%				8.34		%				9.67		%				7.33		%				10.14		%
Return on average tangible equity(A)(B)			12.82		%				11.47		%				12.61		%				14.47		%				17.05		%				12.15		%				18.14		%
Net interest margin (tax equivalent)(A)(C)			4.24		%				4.26		%				4.40		%				4.37		%				4.49		%				4.25		%				4.64		%
Net interest margin (tax equivalent) excluding PAA(A)(B)(C)			3.82		%				3.91		%				3.91		%				3.87		%				3.97		%				3.86		%				4.18		%
Efficiency ratio(D)			66.63		%				66.18		%				69.21		%				63.50		%				60.83		%				66.40		%				59.86		%
Capital Ratios
Stellar Bancorp, Inc. (Consolidated)
Equity to assets			14.60		%				14.27		%				14.29		%				13.70		%				13.53		%				14.60		%				13.53		%
Tangible equity to tangible assets(B)			9.53		%				9.12		%				9.04		%				8.37		%				8.19		%				9.53		%				8.19		%
Estimated Total capital ratio (to risk-weighted assets)			15.34		%				14.62		%				14.02		%				13.61		%				13.21		%				15.34		%				13.21		%
Estimated Common equity Tier 1 capital (to risk weighted assets)			12.98		%				12.29		%				11.77		%				11.30		%				10.83		%				12.98		%				10.83		%
Estimated Tier 1 capital (to risk-weighted assets)			13.10		%				12.41		%				11.89		%				11.41		%				10.94		%				13.10		%				10.94		%
Estimated Tier 1 leverage (to average tangible assets)			10.93		%				10.55		%				10.18		%				9.82		%				9.51		%				10.93		%				9.51		%
Stellar Bank
Estimated Total capital ratio (to risk-weighted assets)			14.65		%				14.13		%				13.65		%				13.32		%				12.98		%				14.65		%				12.98		%
Estimated Common equity Tier 1 capital (to risk-weighted assets)			13.12		%				12.61		%				12.20		%				11.80		%				11.38		%				13.12		%				11.38		%
Estimated Tier 1 capital (to risk-weighted assets)			13.12		%				12.61		%				12.20		%				11.80		%				11.38		%				13.12		%				11.38		%
Estimated Tier 1 leverage (to average tangible assets)			10.94		%				10.72		%				10.44		%				10.15		%				9.89		%				10.94		%				9.89		%
Other Data
Weighted average shares:
Basic			53,572						53,343						53,282						53,313						53,297						53,457						53,160
Diluted			53,608						53,406						53,350						53,380						53,375						53,506						53,261
Period end shares outstanding			53,564						53,551						53,291						53,322						53,303						53,564						53,303
Book value per share			$	29.23					$	28.58					$	28.54					$	27.40					$	27.37					$	29.23					$	27.37
Tangible book value per share(B)			$	18.00					$	17.23					$	17.02					$	15.76					$	15.60					$	18.00					$	15.60
Employees - full-time equivalents			1,045						1,007						998						1,008						1,004						1,045						1,004

(A)Interim periods annualized.

(B)Refer to the calculation of these non-GAAP financial measures and a reconciliation to their most directly comparable 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)Represents total noninterest expense divided by the sum of net interest income plus noninterest income, excluding net gains and losses on the sale of loans, securities and assets. Additionally, taxes and provision for credit losses are not part of this calculation.

6

Stellar Bancorp, Inc.

Financial Highlights

(Unaudited)

			Three Months Ended
			June 30, 2024																		March 31, 2024																		June 30, 2023
			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			$	7,808,320					$	135,885					7.00		%				$	7,938,824					$	134,685					6.82		%				$	7,980,856					$	133,931					6.73		%
Securities			1,549,638						12,739						3.31		%				1,441,814						10,111						2.82		%				1,502,949						10,162						2.71		%
Deposits in other financial institutions			258,916						3,555						5.52		%				264,906						3,627						5.51		%				209,722						2,865						5.48		%
Total interest-earning assets			9,616,874						$	152,179					6.36		%				9,645,544						$	148,423					6.19		%				9,693,527						$	146,958					6.08		%
Allowance for credit losses on loans			(96,306)																		(91,612)																		(96,414)
Noninterest-earning assets			1,103,297																		1,132,857																		1,143,025
Total assets			$	10,623,865																	$	10,686,789																	$	10,740,138
Liabilities and Shareholders' Equity
Interest-Bearing Liabilities:
Interest-bearing demand deposits			$	1,545,096					$	12,213					3.18		%				$	1,697,211					$	12,278					2.91		%				$	1,387,604					$	9,343					2.70		%
Money market and savings deposits			2,227,393						16,186						2.92		%				2,150,805						15,252						2.85		%				2,220,827						11,365						2.05		%
Certificates and other time deposits			1,694,536						18,758						4.45		%				1,444,048						15,084						4.20		%				1,225,834						9,622						3.15		%
Borrowed funds			112,187						1,700						6.09		%				134,400						1,774						5.31		%				479,896						6,535						5.46		%
Subordinated debt			109,910						1,912						7.00		%				109,808						1,917						7.02		%				109,499						1,812						6.64		%
Total interest-bearing liabilities			5,689,122						$	50,769					3.59		%				5,536,272						$	46,305					3.36		%				5,423,660						$	38,677					2.86		%
Noninterest-Bearing Liabilities:
Noninterest-bearing demand deposits			3,308,633																		3,525,758																		3,779,594
Other liabilities			87,986																		96,461																		78,411
Total liabilities			9,085,741																		9,158,491																		9,281,665
Shareholders’ equity			1,538,124																		1,528,298																		1,458,473
Total liabilities and shareholders’ equity			$	10,623,865																	$	10,686,789																	$	10,740,138
Net interest rate spread															2.77		%																2.83		%																3.22		%
Net interest income and margin									$	101,410					4.24		%										$	102,118					4.26		%										$	108,281					4.48		%
Net interest income and net interest margin (tax equivalent)									$	101,482					4.24		%										$	102,207					4.26		%										$	108,509					4.49		%
Cost of funds															2.27		%																2.06		%																1.69		%
Cost of deposits															2.16		%																1.94		%																1.41		%

7

Stellar Bancorp, Inc.

Financial Highlights

(Unaudited)

			Six Months Ended June 30,
			2024																		2023
			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			$	7,873,572					$	270,570					6.91		%				$	7,914,303					$	259,660					6.62		%
Securities			1,495,726						22,850						3.07		%				1,553,200						21,077						2.74		%
Deposits in other financial institutions			261,911						7,182						5.52		%				286,823						6,636						4.67		%
Total interest-earning assets			9,631,209						$	300,602					6.28		%				9,754,326						$	287,373					5.94		%
Allowance for credit losses on loans			(93,959)																		(94,881)
Noninterest-earning assets			1,118,077																		1,151,497
Total assets			$	10,655,327																	$	10,810,942
Liabilities and Shareholders' Equity
Interest-Bearing Liabilities:
Interest-bearing demand deposits			$	1,621,154					$	24,491					3.04		%				$	1,518,213					$	17,725					2.35		%
Money market and savings deposits			2,189,099						31,438						2.89		%				2,355,112						21,020						1.80		%
Certificates and other time deposits			1,569,292						33,842						4.34		%				1,044,721						12,929						2.50		%
Borrowed funds			123,293						3,474						5.67		%				293,578						7,852						5.39		%
Subordinated debt			109,859						3,829						7.01		%				109,458						3,739						6.89		%
Total interest-bearing liabilities			5,612,697						$	97,074					3.48		%				5,321,082						$	63,265					2.40		%
Noninterest-Bearing Liabilities:
Noninterest-bearing demand deposits			3,417,196																		3,971,862
Other liabilities			92,223																		79,609
Total liabilities			9,122,116																		9,372,553
Shareholders’ equity			1,533,211																		1,438,389
Total liabilities and shareholders' equity			$	10,655,327																	$	10,810,942
Net interest rate spread															2.80		%																3.54		%
Net interest income and margin									$	203,528					4.25		%										$	224,108					4.63		%
Net interest income and net interest margin (tax equivalent)									$	203,688					4.25		%										$	224,628					4.64		%
Cost of funds															2.16		%																1.37		%
Cost of deposits															2.05		%																1.17		%

8

Stellar Bancorp, Inc.

Financial Highlights

(Unaudited)

			Three Months Ended
			2024												2023
			June 30						March 31						December 31						September 30						June 30
			(Dollars in thousands)
Period-end Loan Portfolio:
Commercial and industrial			$	1,392,435					$	1,451,462					$	1,409,002					$	1,474,600					$	1,512,476
Paycheck Protection Program (PPP)			3,629						4,293						5,100						5,968						8,027
Real estate:
Commercial real estate (including multi-family residential)			4,029,671						4,049,885						4,071,807						4,076,606						4,038,487
Commercial real estate construction and land development			922,805						1,039,443						1,060,406						1,078,265						1,136,124
1-4 family residential (including home equity)			1,098,681						1,049,316						1,047,174						1,024,945						1,009,439
Residential construction			200,134						252,573						267,357						289,553						311,208
Consumer and other			66,542						61,139						64,287						54,591						52,957
Total loans held for investment			$	7,713,897					$	7,908,111					$	7,925,133					$	8,004,528					$	8,068,718
Deposits:
Noninterest-bearing			$	3,308,441					$	3,323,149					$	3,546,815					$	3,656,288					$	3,713,536
Interest-bearing
Demand			1,564,405						1,576,261						1,659,999						1,397,492						1,437,509
Money market and savings			2,213,031						2,203,767						2,136,777						2,128,950						2,174,073
Certificates and other time			1,639,426						1,691,539						1,529,876						1,503,891						1,441,251
Total interest-bearing deposits			5,416,862						5,471,567						5,326,652						5,030,333						5,052,833
Total deposits			$	8,725,303					$	8,794,716					$	8,873,467					$	8,686,621					$	8,766,369
Asset Quality:
Nonaccrual loans			$	50,906					$	57,129					$	39,191					$	38,291					$	43,349
Accruing loans 90 or more days past due			—						—						—						—						—
Total nonperforming loans			50,906						57,129						39,191						38,291						43,349
Other real estate			2,548						—						—						—						—
Total nonperforming assets			$	53,454					$	57,129					$	39,191					$	38,291					$	43,349
Net (recoveries) charge-offs			$	(1)					$	714					$	2,577					$	8,116					$	236
Nonaccrual loans:
Commercial and industrial			$	18,451					$	15,465					$	5,048					$	14,991					$	22,968
Real estate:
Commercial real estate (including multi-family residential)			18,094						21,268						16,699						13,563						8,221
Commercial real estate construction and land development			1,641						8,406						5,043						170						388
1-4 family residential (including home equity)			12,454						10,368						8,874						8,442						10,880
Residential construction			155						1,410						3,288						635						665
Consumer and other			111						212						239						490						227
Total nonaccrual loans			$	50,906					$	57,129					$	39,191					$	38,291					$	43,349
Asset Quality Ratios:
Nonperforming assets to total assets			0.50		%				0.53		%				0.37		%				0.36		%				0.40		%
Nonperforming loans to total loans			0.66		%				0.72		%				0.49		%				0.48		%				0.54		%
Allowance for credit losses on loans to nonperforming loans			186.17		%				168.54		%				233.94		%				244.38		%				231.14		%
Allowance for credit losses on loans to total loans			1.23		%				1.22		%				1.16		%				1.17		%				1.24		%
Net charge-offs to average loans (annualized)			0.00		%				0.04		%				0.13		%				0.40		%				0.01		%

9

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																														Six Months Ended
			2024												2023																		2024						2023
			June 30						March 31						December 31						September 30						June 30						June 30						June 30
			(Dollars and share amounts in thousands, except per share data)
Net income			$	29,753					$	26,147					$	27,266					$	30,908					$	35,175					$	55,900					$	72,323
Add: Provision for credit losses			(1,935)						4,098						1,047						2,315						1,915						2,163						5,581
Add: Provision for income taxes			7,792						6,759						6,562						7,445						7,467						14,551						17,380
Pre-tax, pre-provision income			$	35,610					$	37,004					$	34,875					$	40,668					$	44,557					$	72,614					$	95,284
Total average assets			$	10,623,865					$	10,686,789					$	10,626,373					$	10,741,295					$	10,740,138					$	10,655,327					$	10,810,942
Pre-tax, pre-provision return on average assets(B)			1.35		%				1.39		%				1.30		%				1.50		%				1.66		%				1.37		%				1.78		%
Total shareholders’ equity			$	1,565,795					$	1,530,698					$	1,521,018					$	1,460,846					$	1,458,680					$	1,565,795					$	1,458,680
Less: Goodwill and core deposit intangibles, net			601,633						607,831						614,030						620,262						627,065						601,633						627,065
Tangible shareholders’ equity			$	964,162					$	922,867					$	906,988					$	840,584					$	831,615					$	964,162					$	831,615
Shares outstanding at end of period			53,564						53,551						53,291						53,322						53,303						53,564						53,303
Tangible book value per share			$	18.00					$	17.23					$	17.02					$	15.76					$	15.60					$	18.00					$	15.60
Average shareholders’ equity			$	1,538,124					$	1,528,298					$	1,475,377					$	1,471,009					$	1,458,473					$	1,533,211					$	1,438,389
Less: Average goodwill and core deposit intangibles, net			604,722						611,149						617,236						623,864						630,854						607,935						634,462
Average tangible shareholders’ equity			$	933,402					$	917,149					$	858,141					$	847,145					$	827,619					$	925,276					$	803,927
Return on average tangible equity(B)			12.82		%				11.47		%				12.61		%				14.47		%				17.05		%				12.15		%				18.14		%
Total assets			$	10,723,663					$	10,729,222					$	10,647,139					$	10,665,460					$	10,778,351					$	10,723,663					$	10,778,351
Less: Goodwill and core deposit intangibles, net			601,633						607,831						614,030						620,262						627,065						601,633						627,065
Tangible assets			$	10,122,030					$	10,121,391					$	10,033,109					$	10,045,198					$	10,151,286					$	10,122,030					$	10,151,286
Tangible equity to tangible assets			9.53		%				9.12		%				9.04		%				8.37		%				8.19		%				9.53		%				8.19		%
Net interest income (tax equivalent)			$	101,482					$	102,207					$	106,121					$	106,919					$	108,509					$	203,688					$	224,628
Less: Purchase accounting accretion			10,098						8,551						11,726						12,400						12,572						18,649						22,676
Adjusted net interest income (tax equivalent)			$	91,384					$	93,656					$	94,395					$	94,519					$	95,937					$	185,039					$	201,952
Average earning assets			$	9,616,874					$	9,645,544					$	9,576,927					$	9,697,553					$	9,693,527					$	9,631,209					$	9,754,326
Net interest margin (tax equivalent) excluding PAA			3.82		%				3.91		%				3.91		%				3.87		%				3.97		%				3.86		%				4.18		%

(A)Represents total noninterest expense, excluding acquisition and merger-related expenses, core deposit intangibles amortization and write-downs on assets moved to held for sale, divided by the sum of net interest income, excluding purchase accounting adjustments plus noninterest income, excluding gains and losses on the sale of assets. Additionally, taxes and provision for credit losses are not part of this calculation.

(B)Interim periods annualized.

10