STEL News & Events

Raymond James analyst David Feaster downgraded Stellar Bancorp (STEL) to Market Perform from Outperform without a price target. The firm cites the pending merger with Prosperity Bancshares (PB) for the downgrade. The merits of the deal are positive from both a cultural and financial standpoint, but Prosperity's risk/reward dynamic is balanced for now given the integration of three deals, the analyst tells investors in a research note. The firm aligned its rating on Stellar with Prosperity.

The net interest margin on a tax equivalent basis increased to 4.21% for the fourth quarter of 2025 from 4.20% for the third quarter of 2025. The increase in net interest income from the prior quarter was primarily due to the decrease in cost of average interest-bearing liabilities.