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PRESS RELEASE                    

STELLAR BANCORP, INC. REPORTS

SECOND QUARTER 2025 RESULTS

HOUSTON, July 25, 2025 - Stellar Bancorp, Inc. (the “Company” or “Stellar”) (NYSE: STEL) today reported net income of $26.4 million, or diluted earnings per share of $0.51, for the second quarter of 2025, compared to net income of $24.7 million, or diluted earnings per share of $0.46, for the first quarter of 2025.

“We are pleased to report our second quarter results that reflect the efforts of our team beginning to add growth to the foundation we’ve built at Stellar Bank,” said Robert R. Franklin, Jr., Stellar’s Chief Executive Officer.

“Our bankers made meaningful progress on originations during the second quarter after experiencing elevated payoff activity. We believe that the momentum we saw at the end of the second quarter will continue, which sets us up for loan and deposit growth over the remainder of the year,” Mr. Franklin continued.

“We also anticipate that the President’s spending bill will provide some tail wind for the Houston economy. The Stellar message is resonating with our customer base, and we are seeing great progress with our prospects. Our pipelines are building and Stellar Bank is well-positioned to gain market share in the vibrant Texas markets we serve,” Mr. Franklin concluded.

Financial Highlights

•Solid Profitability: Net income for the second quarter of 2025 was $26.4 million, or diluted earnings per share of $0.51, which translated into an annualized return on average assets of 1.01%, an annualized return on average equity of 6.62% and an annualized return on average tangible equity of 12.16%(1).

•Strong Net Interest Margin: Tax equivalent net interest margin for the second quarter of 2025 was 4.18% compared to 4.20% for the first quarter of 2025. The tax equivalent net interest margin, excluding purchase accounting accretion (“PAA”), was 3.95%(1) for the second quarter of 2025 compared to 3.97%(1) for the first quarter of 2025.

•Strong Capital Position and Book Value Build: Total risk-based capital ratio increased to 15.98% at June 30, 2025, while book value per share increased to $31.20 at June 30, 2025 from $30.89 at March 31, 2025 and tangible book value per share increased to $19.94(1) at June 30, 2025 from $19.69(1) at March 31, 2025.

•Low Net Charge-offs: Net charge-offs of $370 thousand, or 0.01% of average loans, for the six months ended June 30, 2025 along with manageable asset quality, compared to $713 thousand, or 0.02% of average loans, for the six months ended June 30, 2024.

•Repurchase of Shares: Repurchased 791 thousand shares at a weighted average price per share of $26.08 during the second quarter of 2025.

Second Quarter 2025 Results

Net interest income in the second quarter of 2025 decreased $923 thousand, or 0.9%, to $98.3 million from $99.3 million for the first quarter of 2025. The net interest margin on a tax equivalent basis decreased to 4.18% for the second quarter of 2025 from 4.20% for the first quarter of 2025. The decrease in the net interest margin from the prior quarter was primarily due to the impact of increased rates on interest-bearing liabilities along with the decrease in average interest-earning assets partially offset by higher rates on loans. Net interest income for the second quarter of 2025 benefited from $5.3 million of income from PAA compared to $5.4 million in the first quarter of 2025. Excluding

1

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PAA, net interest income (tax equivalent) for the second quarter of 2025 would have been $93.1 million(1) and the tax equivalent net interest margin would have been 3.95%(1).

Noninterest income for the second quarter of 2025 was $5.8 million, an increase of $286 thousand, or 5.2%, compared to $5.5 million for the first quarter of 2025. Noninterest income increased in the second quarter of 2025 compared to the first quarter of 2025 primarily due to

the increase in other noninterest income partially offset by the loss on sale of assets during the second quarter. A significant driver of the increase in other noninterest income was $490 thousand in Federal Reserve Bank dividends as a result of Stellar Bank becoming a member of the Federal Reserve System effective in April 2025.

Noninterest expense for the second quarter of 2025 decreased $162 thousand, or 0.2%, to $70.0 million compared to $70.2 million for the first quarter of 2025. The decrease in noninterest expense in the second quarter of 2025 compared to the first quarter of 2025 was primarily due to a decrease in salaries and employee benefits of $865 thousand along with a decrease in professional fees of $499 thousand partially

offset by a $473 thousand increase in net occupancy and equipment, a $385 thousand increase in advertising expense and a $567 thousand increase in other noninterest expense.

The efficiency ratio was 61.87% for the second quarter of 2025 compared to 61.93%(1) for the first quarter of 2025. Annualized returns on average assets, average equity and average tangible equity were 1.01%, 6.62% and 12.16%(1) for the second quarter of 2025, respectively, compared to 0.94%, 6.21% and 11.48%(1) for the first quarter of 2025, respectively.

Financial Condition

Total assets at June 30, 2025 were $10.49 billion, an increase of $58.1 million compared to $10.43 billion at March 31, 2025. The increase in total assets was largely due to an increase in Federal Reserve Bank stock along with increases in cash and securities, all of which were funded largely by core deposit growth.

Total loans at June 30, 2025 increased $4.2 million to $7.29 billion compared to $7.28 billion at March 31, 2025. At June 30, 2025, the remaining balance of the purchase accounting accretion (“PAA”) on loans was $62.9 million.

Total deposits at June 30, 2025 increased $110.9 million to $8.67 billion compared to $8.56 billion at March 31, 2025 primarily due to increases in demand and money market and savings deposits partially offset by decreases in certificates and other time and noninterest-bearing deposits. Certificates and other time deposits decreased primarily due to the reduction in brokered deposits.

Asset Quality

Nonperforming assets totaled $58.2 million, or 0.55% of total assets, at June 30, 2025, compared to $59.7 million, or 0.57% of total assets, at March 31, 2025. The allowance for credit losses on loans as a percentage of total loans was 1.14% at June 30, 2025 compared to 1.15% at March 31, 2025.

The provision for credit losses was $1.1 million for the second quarter of 2025 compared to $3.6 million for the first quarter of 2025. Net charge-offs for the second quarter of 2025 were $206 thousand, or 0.01% (annualized) of average loans, compared to net charge-offs of $163 thousand, or 0.01% (annualized) of average loans, for the first 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, July 25, 2025 at 8:00 a.m. Central Time (9:00 a.m. Eastern Time) to discuss its results for the second quarter of 2025. Participants may register for the conference call at https://registrations.events/direct/Q4I635866891 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/Q4I635866891 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.

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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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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.

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
			June 30						March 31						December 31						September 30						June 30
			(Dollars in thousands)
ASSETS:
Cash and due from banks			$	136,060					$	130,932					$	419,967					$	103,735					$	110,341
Interest-bearing deposits at other financial institutions			442,044						429,643						491,249						412,482						379,909
Total cash and cash equivalents			578,104						560,575						911,216						516,217						490,250
Available for sale securities, at fair value			1,729,684						1,719,371						1,673,016						1,691,752						1,630,971
Loans held for investment			7,287,347						7,283,133						7,439,854						7,551,124						7,713,897
Less: allowance for credit losses on loans			(83,165)						(83,746)						(81,058)						(84,501)						(94,772)
Loans, net			7,204,182						7,199,387						7,358,796						7,466,623						7,619,125
Accrued interest receivable			35,537						37,669						37,884						39,473						43,348
Premises and equipment, net			108,615						109,750						111,856						113,742						113,984
Federal Reserve Bank and Federal Home Loan Bank stock			47,099						20,902						8,209						20,123						15,089
Bank-owned life insurance			108,726						108,108						107,498						106,876						106,262
Goodwill			497,318						497,318						497,318						497,318						497,318
Core deposit intangibles, net			81,468						87,007						92,546						98,116						104,315
Other assets			102,277						94,800						107,451						79,537						103,001
Total assets			$	10,493,010					$	10,434,887					$	10,905,790					$	10,629,777					$	10,723,663
LIABILITIES AND SHAREHOLDERS’ EQUITY
LIABILITIES:
Deposits:
Noninterest-bearing			$	3,183,693					$	3,205,619					$	3,576,206					$	3,303,048					$	3,308,441
Interest-bearing
Demand			1,941,156						1,863,752						1,845,749						1,571,504						1,564,405
Money market and savings			2,393,767						2,248,616						2,253,193						2,280,651						2,213,031
Certificates and other time			1,154,998						1,244,726						1,453,236						1,587,398						1,639,426
Total interest-bearing deposits			5,489,921						5,357,094						5,552,178						5,439,553						5,416,862
Total deposits			8,673,614						8,562,713						9,128,384						8,742,601						8,725,303
Accrued interest payable			7,607						9,856						17,052						16,915						12,327
Borrowed funds			69,925						119,923						—						60,000						240,000
Subordinated debt			70,165						70,135						70,105						110,064						109,964
Other liabilities			67,865						61,428						82,389						74,074						70,274
Total liabilities			8,889,176						8,824,055						9,297,930						9,003,654						9,157,868
SHAREHOLDERS’ EQUITY:
Common stock			514						521						534						535						536
Capital surplus			1,185,048						1,202,628						1,240,050						1,238,619						1,238,477
Retained earnings			529,216						510,072						492,640						474,905						447,948
Accumulated other comprehensive loss			(110,944)						(102,389)						(125,364)						(87,936)						(121,166)
Total shareholders’ equity			1,603,834						1,610,832						1,607,860						1,626,123						1,565,795
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY			$	10,493,010					$	10,434,887					$	10,905,790					$	10,629,777					$	10,723,663

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Stellar Bancorp, Inc.

Financial Highlights

(Unaudited)

			Three Months Ended																														Six Months Ended
			2025												2024																		2025						2024
			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			$	121,814					$	120,640					$	128,738					$	132,372					$	135,885					$	242,454					$	270,570
Securities:
Taxable			15,293						16,148						14,789						13,898						11,923						31,441						21,216
Tax-exempt			810						812						814						814						816						1,622						1,634
Deposits in other financial institutions			4,782						4,720						5,681						4,692						3,555						9,502						7,182
Total interest income			142,699						142,320						150,022						151,776						152,179						285,019						300,602
INTEREST EXPENSE:
Demand, money market and savings deposits			31,097						27,574						27,877						29,440						28,399						58,671						55,929
Certificates and other time deposits			11,459						13,527						16,830						18,073						18,758						24,986						33,842
Borrowed funds			407						517						235						840						1,700						924						3,474
Subordinated debt			1,401						1,444						2,123						1,916						1,912						2,845						3,829
Total interest expense			44,364						43,062						47,065						50,269						50,769						87,426						97,074
NET INTEREST INCOME			98,335						99,258						102,957						101,507						101,410						197,593						203,528
Provision for (reversal of) credit losses			1,090						3,632						942						(5,985)						(1,935)						4,722						2,163
Net interest income after provision for credit losses			97,245						95,626						102,015						107,492						103,345						192,871						201,365
NONINTEREST INCOME:
Service charges on deposit accounts			1,561						1,584						1,590						1,594						1,648						3,145						3,246
(Loss) gain on sale of assets			(57)						417						(112)						432						(64)						360						449
Bank-owned life insurance			618						610						622						614						591						1,228						1,178
Debit card and interchange income			566						520						570						551						543						1,086						1,070
Other			3,103						2,374						2,362						3,111						2,698						5,477						5,769
Total noninterest income			5,791						5,505						5,032						6,302						5,416						11,296						11,712
NONINTEREST EXPENSE:
Salaries and employee benefits			40,927						41,792						43,797						41,123						39,061						82,719						80,437
Net occupancy and equipment			4,399						3,926						4,401						4,570						4,503						8,325						8,893
Depreciation			1,992						1,995						1,984						1,911						1,948						3,987						3,912
Data processing and software amortization			5,620						5,682						5,551						5,706						5,501						11,302						10,395
Professional fees			1,287						1,786						3,428						1,714						1,620						3,073						4,282
Regulatory assessments and FDIC insurance			1,561						1,733						1,636						1,779						2,299						3,294						4,153
Amortization of intangibles			5,548						5,548						5,581						6,212						6,215						11,096						12,427
Communications			861						847						807						827						847						1,708						1,784
Advertising			1,167						782						1,593						878						891						1,949						1,656
Other			6,642						6,075						6,488						6,346						8,331						12,717						14,687
Total noninterest expense			70,004						70,166						75,266						71,066						71,216						140,170						142,626
INCOME BEFORE INCOME TAXES			33,032						30,965						31,781						42,728						37,545						63,997						70,451
Provision for income taxes			6,680						6,263						6,569						8,837						7,792						12,943						14,551
NET INCOME			$	26,352					$	24,702					$	25,212					$	33,891					$	29,753					$	51,054					$	55,900
EARNINGS PER SHARE
Basic			$	0.51					$	0.46					$	0.47					$	0.63					$	0.56					$	0.98					$	1.05
Diluted			$	0.51					$	0.46					$	0.47					$	0.63					$	0.56					$	0.97					$	1.04

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Stellar Bancorp, Inc.

Financial Highlights

(Unaudited)

			Three Months Ended																														Six Months Ended
			2025												2024																		2025						2024
			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			$	26,352					$	24,702					$	25,212					$	33,891					$	29,753					$	51,054					$	55,900
Earnings per share, basic			$	0.51					$	0.46					$	0.47					$	0.63					$	0.56					$	0.98					$	1.05
Earnings per share, diluted			$	0.51					$	0.46					$	0.47					$	0.63					$	0.56					$	0.97					$	1.04
Dividends per share			$	0.14					$	0.14					$	0.14					$	0.13					$	0.13					$	0.28					$	0.26
Return on average assets(A)			1.01		%				0.94		%				0.94		%				1.27		%				1.13		%				0.98		%				1.06		%
Return on average equity(A)			6.62		%				6.21		%				6.21		%				8.49		%				7.78		%				6.42		%				7.33		%
Return on average tangible equity(A)(B)(D)			12.16		%				11.48		%				11.53		%				15.61		%				14.94		%				11.82		%				14.28		%
Net interest margin (tax equivalent)(A)(C)			4.18		%				4.20		%				4.25		%				4.19		%				4.24		%				4.19		%				4.25		%
Net interest margin (tax equivalent) excluding PAA(A)(B)(C)			3.95		%				3.97		%				3.94		%				3.91		%				3.82		%				3.96		%				3.86		%
Efficiency ratio(B)(E)			61.87		%				61.93		%				64.46		%				60.40		%				60.81		%				61.90		%				60.62		%
Capital Ratios
Stellar Bancorp, Inc. (Consolidated)
Equity to assets			15.28		%				15.44		%				14.74		%				15.30		%				14.60		%				15.28		%				14.60		%
Tangible equity to tangible assets(B)(E)			10.34		%				10.42		%				9.87		%				10.27		%				9.53		%				10.34		%				9.53		%
Estimated Total capital ratio (to risk-weighted assets)			15.98		%				15.97		%				16.00		%				15.85		%				15.30		%				15.98		%				15.30		%
Estimated Common equity Tier 1 capital (to risk weighted assets)			14.06		%				14.05		%				14.14		%				13.57		%				12.95		%				14.06		%				12.95		%
Estimated Tier 1 capital (to risk-weighted assets)			14.18		%				14.17		%				14.26		%				13.69		%				13.06		%				14.18		%				13.06		%
Estimated Tier 1 leverage (to average tangible assets)			11.44		%				11.20		%				11.31		%				11.10		%				10.77		%				11.44		%				10.77		%
Stellar Bank
Estimated Total capital ratio (to risk-weighted assets)			15.39		%				15.40		%				15.28		%				15.02		%				14.61		%				15.39		%				14.61		%
Estimated Common equity Tier 1 capital (to risk-weighted assets)			14.18		%				14.20		%				14.13		%				13.58		%				13.08		%				14.18		%				13.08		%
Estimated Tier 1 capital (to risk-weighted assets)			14.18		%				14.20		%				14.13		%				13.58		%				13.08		%				14.18		%				13.08		%
Estimated Tier 1 leverage (to average tangible assets)			11.44		%				11.22		%				11.21		%				11.01		%				10.78		%				11.44		%				10.78		%
Other Data
Weighted average shares:
Basic			51,529						53,146						53,422						53,541						53,572						52,333						53,457
Diluted			51,569						53,197						53,471						53,580						53,608						52,376						53,506
Period end shares outstanding			51,398						52,141						53,429						53,446						53,564						51,398						53,564
Book value per share			$	31.20					$	30.89					$	30.09					$	30.43					$	29.23					$	31.20					$	29.23
Tangible book value per share(B)			$	19.94					$	19.69					$	19.05					$	19.28					$	18.00					$	19.94					$	18.00
Employees - full-time equivalents			1,062						1,054						1,037						1,040						1,045						1,062						1,045

(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. All periods presented above have been recalculated and disclosed under the same calculation.

(E)The calculation of the efficiency ratio has been adjusted from prior period disclosures. 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
			June 30, 2025																		March 31, 2025																		June 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			$	7,282,609					$	121,814					6.71		%				$	7,344,298					$	120,640					6.66		%				$	7,808,320					$	135,885					7.00		%
Securities			1,729,384						16,103						3.73		%				1,817,286						16,960						3.78		%				1,549,638						12,739						3.31		%
Deposits in other financial institutions			436,596						4,782						4.39		%				430,621						4,720						4.45		%				258,916						3,555						5.52		%
Total interest-earning assets			9,448,589						$	142,699					6.06		%				9,592,205						$	142,320					6.02		%				9,616,874						$	152,179					6.36		%
Allowance for credit losses on loans			(83,700)																		(81,166)																		(96,306)
Noninterest-earning assets			1,099,268																		1,100,652																		1,103,297
Total assets			$	10,464,157																	$	10,611,691																	$	10,623,865
Liabilities and Shareholders' Equity
Interest-Bearing Liabilities:
Interest-bearing demand deposits			$	1,952,004					$	14,399					2.96		%				$	1,911,625					$	12,392					2.63		%				$	1,545,096					$	12,213					3.18		%
Money market and savings deposits			2,371,221						16,698						2.82		%				2,234,571						15,182						2.76		%				2,227,393						16,186						2.92		%
Certificates and other time deposits			1,201,903						11,459						3.82		%				1,296,972						13,527						4.23		%				1,694,536						18,758						4.45		%
Borrowed funds			34,427						407						4.74		%				45,795						517						4.58		%				112,187						1,700						6.09		%
Subordinated debt			70,151						1,401						8.01		%				70,121						1,444						8.35		%				109,910						1,912						7.00		%
Total interest-bearing liabilities			5,629,706						$	44,364					3.16		%				5,559,084						$	43,062					3.14		%				5,689,122						$	50,769					3.59		%
Noninterest-Bearing Liabilities:
Noninterest-bearing demand deposits			3,160,791																		3,346,066																		3,308,633
Other liabilities			78,120																		92,299																		87,986
Total liabilities			8,868,617																		8,997,449																		9,085,741
Shareholders’ equity			1,595,540																		1,614,242																		1,538,124
Total liabilities and shareholders’ equity			$	10,464,157																	$	10,611,691																	$	10,623,865
Net interest rate spread															2.90		%																2.88		%																2.77		%
Net interest income and margin									$	98,335					4.17		%										$	99,258					4.20		%										$	101,410					4.24		%
Net interest income and margin (tax equivalent)									$	98,427					4.18		%										$	99,353					4.20		%										$	101,482					4.24		%
Cost of funds															2.02		%																1.96		%																2.27		%
Cost of deposits															1.97		%																1.90		%																2.16		%

7

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Stellar Bancorp, Inc.

Financial Highlights

(Unaudited)

			Six Months Ended June 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			$	7,313,283					$	242,454					6.69		%				$	7,873,572					$	270,570					6.91		%
Securities			1,773,092						33,063						3.76		%				1,495,726						22,850						3.07		%
Deposits in other financial institutions			433,625						9,502						4.42		%				261,911						7,182						5.51		%
Total interest-earning assets			9,520,000						$	285,019					6.04		%				9,631,209						$	300,602					6.28		%
Allowance for credit losses on loans			(82,440)																		(93,959)
Noninterest-earning assets			1,099,956																		1,118,077
Total assets			$	10,537,516																	$	10,655,327
Liabilities and Shareholders' Equity
Interest-Bearing Liabilities:
Interest-bearing demand deposits			$	1,931,926					$	26,791					2.80		%				$	1,621,154					$	24,491					3.04		%
Money market and savings deposits			2,303,273						31,880						2.79		%				2,189,099						31,438						2.89		%
Certificates and other time deposits			1,249,175						24,986						4.03		%				1,569,292						33,842						4.34		%
Borrowed funds			40,079						924						4.65		%				123,293						3,474						5.67		%
Subordinated debt			70,136						2,845						8.18		%				109,859						3,829						7.01		%
Total interest-bearing liabilities			5,594,589						$	87,426					3.15		%				5,612,697						$	97,074					3.48		%
Noninterest-Bearing Liabilities:
Noninterest-bearing demand deposits			3,252,917																		3,417,196
Other liabilities			85,171																		92,223
Total liabilities			8,932,677																		9,122,116
Shareholders' equity			1,604,839																		1,533,211
Total liabilities and shareholders' equity			$	10,537,516																	$	10,655,327
Net interest rate spread															2.89		%																2.80		%
Net interest income and margin									$	197,593					4.19		%										$	203,528					4.25		%
Net interest income and margin (tax equivalent)									$	197,780					4.19		%										$	203,688					4.25		%
Cost of funds															1.99		%																2.16		%
Cost of deposits															1.93		%																2.05		%

8

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Stellar Bancorp, Inc.

Financial Highlights

(Unaudited)

			Three Months Ended
			2025												2024
			June 30						March 31						December 31						September 30						June 30
			(Dollars in thousands)
Period-end Loan Portfolio:
Commercial and industrial			$	1,346,744					$	1,362,266					$	1,362,260					$	1,350,753					$	1,396,064
Real estate:
Commercial real estate (including multi-family residential)			3,840,981						3,854,607						3,868,218						3,976,296						4,029,671
Commercial real estate construction and land development			762,911						721,488						845,494						890,316						922,805
1-4 family residential (including home equity)			1,126,523						1,125,837						1,115,484						1,112,235						1,098,681
Residential construction			137,855						141,283						157,977						161,494						200,134
Consumer and other			72,333						77,652						90,421						60,030						66,542
Total loans held for investment			$	7,287,347					$	7,283,133					$	7,439,854					$	7,551,124					$	7,713,897
Deposits:
Noninterest-bearing			$	3,183,693					$	3,205,619					$	3,576,206					$	3,303,048					$	3,308,441
Interest-bearing
Demand			1,941,156						1,863,752						1,845,749						1,571,504						1,564,405
Money market and savings			2,393,767						2,248,616						2,253,193						2,280,651						2,213,031
Certificates and other time			1,154,998						1,244,726						1,453,236						1,587,398						1,639,426
Total interest-bearing deposits			5,489,921						5,357,094						5,552,178						5,439,553						5,416,862
Total deposits			$	8,673,614					$	8,562,713					$	9,128,384					$	8,742,601					$	8,725,303
Asset Quality:
Nonaccrual loans			$	50,505					$	54,518					$	37,212					$	32,140					$	50,906
Accruing loans 90 or more days past due			—						—						—						—						—
Total nonperforming loans			50,505						54,518						37,212						32,140						50,906
Foreclosed assets			7,652						5,154						1,734						2,984						2,548
Total nonperforming assets			$	58,157					$	59,672					$	38,946					$	35,124					$	53,454
Net charge-offs (recoveries)			$	206					$	163					$	2,016					$	3,933					$	(1)
Nonaccrual loans:
Commercial and industrial			$	13,395					$	11,471					$	8,500					$	9,718					$	18,451
Real estate:
Commercial real estate (including multi-family residential)			23,359						26,383						16,459						10,695						18,094
Commercial real estate construction and land development			3,412						2,027						3,061						4,183						1,641
1-4 family residential (including home equity)			9,965						14,550						9,056						7,259						12,454
Residential construction			176						—						—						121						155
Consumer and other			198						87						136						164						111
Total nonaccrual loans			$	50,505					$	54,518					$	37,212					$	32,140					$	50,906
Asset Quality Ratios:
Nonperforming assets to total assets			0.55		%				0.57		%				0.36		%				0.33		%				0.50%
Nonperforming loans to total loans			0.69		%				0.75		%				0.50		%				0.43		%				0.66%
Allowance for credit losses on loans to nonperforming loans			164.67		%				153.61		%				217.83		%				262.92		%				186.17%
Allowance for credit losses on loans to total loans			1.14		%				1.15		%				1.09		%				1.12		%				1.23%
Net charge-offs to average loans (annualized)			0.01		%				0.01		%				0.11		%				0.21		%				0.00%

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																														Six Months Ended
			2025												2024																		2025						2024
			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			$	26,352					$	24,702					$	25,212					$	33,891					$	29,753					$	51,054					$	55,900
Add: Provision for (reversal of) credit losses			1,090						3,632						942						(5,985)						(1,935)						4,722						2,163
Add: Provision for income taxes			6,680						6,263						6,569						8,837						7,792						12,943						14,551
Pre-tax, pre-provision income			$	34,122					$	34,597					$	32,723					$	36,743					$	35,610					$	68,719					$	72,614
Total average assets			$	10,464,157					$	10,611,691					$	10,649,175					$	10,626,266					$	10,623,865					$	10,537,516					$	10,655,327
Pre-tax, pre-provision return on average assets(A)			1.31		%				1.32		%				1.22		%				1.38		%				1.35		%				1.32		%				1.37		%
Total shareholders’ equity			$	1,603,834					$	1,610,832					$	1,607,860					$	1,626,123					$	1,565,795					$	1,603,834					$	1,565,795
Less: Goodwill and core deposit intangibles, net			578,786						584,325						589,864						595,434						601,633						578,786						601,633
Tangible shareholders’ equity			$	1,025,048					$	1,026,507					$	1,017,996					$	1,030,689					$	964,162					$	1,025,048					$	964,162
Shares outstanding at end of period			51,398						52,141						53,429						53,446						53,564						51,398						53,564
Tangible book value per share			$	19.94					$	19.69					$	19.05					$	19.28					$	18.00					$	19.94					$	18.00
Average shareholders’ equity			$	1,595,540					$	1,614,242					$	1,614,762					$	1,587,918					$	1,538,124					$	1,604,839					$	1,533,211
Less: Average goodwill and core deposit intangibles, net			581,438						586,895						592,471						598,866						604,722						584,152						607,935
Average tangible shareholders’ equity			$	1,014,102					$	1,027,347					$	1,022,291					$	989,052					$	933,402					$	1,020,687					$	925,276
Net income			$	26,352					$	24,702					$	25,212					$	33,891					$	29,753					$	51,054					$	55,900
Add: Core deposit intangibles amortization, net of tax			4,383						4,383						4,409						4,907						4,910						8,766						9,817
Adjusted net income			$	30,735					$	29,085					$	29,621					$	38,798					$	34,663					$	59,820					$	65,717
Return on average tangible equity(A)(B)			12.16		%				11.48		%				11.53		%				15.61		%				14.94		%				11.82		%				14.28		%
Total assets			$	10,493,010					$	10,434,887					$	10,905,790					$	10,629,777					$	10,723,663					$	10,493,010					$	10,723,663
Less: Goodwill and core deposit intangibles, net			578,786						584,325						589,864						595,434						601,633						578,786						601,633
Tangible assets			$	9,914,224					$	9,850,562					$	10,315,926					$	10,034,343					$	10,122,030					$	9,914,224					$	10,122,030
Tangible equity to tangible assets			10.34		%				10.42		%				9.87		%				10.27		%				9.53		%				10.34		%				9.53		%
Net interest income (tax equivalent)			$	98,427					$	99,353					$	103,039					$	101,578					$	101,482					$	197,780					$	203,688
Less: Purchase accounting accretion			5,344						5,397						7,555						6,795						10,098						10,741						18,649
Adjusted net interest income (tax equivalent)			$	93,083					$	93,956					$	95,484					$	94,783					$	91,384					$	187,039					$	185,039
Average earning assets			$	9,448,589					$	9,592,205					$	9,653,162					$	9,643,629					$	9,616,874					$	9,520,000					$	9,631,209
Net interest margin (tax equivalent) excluding PAA(A)			3.95		%				3.97		%				3.94		%				3.91		%				3.82		%				3.96		%				3.86		%
Noninterest expense			$	70,004					$	70,166					$	75,266					$	71,066					$	71,216					$	140,170					$	142,626
Less: Core deposit intangibles amortization			5,548						5,548						5,581						6,212						6,215						11,096						12,427
Adjusted noninterest expense			$	64,456					$	64,618					$	69,685					$	64,854					$	65,001					$	129,074					$	130,199
Net interest income			$	98,335					$	99,258					$	102,957					$	101,507					$	101,410					$	197,593					$	203,528
Noninterest income			5,791						5,505						5,032						6,302						5,416						11,296						11,712
Less: (Loss) gain on sale of assets			(57)						417						(112)						432						(64)						360						449
Adjusted noninterest income			5,848						5,088						5,144						5,870						5,480						10,936						11,263
Net interest income plus adjusted noninterest income			$	104,183					$	104,346					$	108,101					$	107,377					$	106,890					$	208,529					$	214,791
Efficiency ratio(C)			61.87		%				61.93		%				64.46		%				60.40		%				60.81		%				61.90		%				60.62		%

(A)Interim periods annualized.

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

10