Stellar Bancorp, Inc. Surveillance Report

Company Profile

Stellar Bancorp, Inc. (NYSE: STEL) (“the company” or “Stellar”) was established in October 2022 following the all-stock merger of equals between Allegiance Bancshares, Inc. (“Allegiance”) and CBTX, Inc. (“CBTX”). As a result, Stellar is the largest Texas-based community bank headquartered in Houston, Texas with $10.6 billion assets.
STEL maintains a Houston-centric footprint and a commercially oriented lending niche targeting small and medium-sized owner-operated businesses. KBRA anticipates higher middle market C&I customer growth as STEL continues to expand its market and brand recognition.
The commercially driven loan profile reflects a solid C&I (including owner-occupied CRE) mix, accounting for 40% of loans, underpinned by strong operating relationships derived from a high-touch community banking model. Additionally, the portfolio is granular, although with higher investor CRE concentrations, including multi-family (6% of loans),…

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