Stellar Bancorp Business Summary

Stellar Bancorp, Inc. (NYSE: STEL) is a Houston-based bank holding company that operates as the parent entity for Stellar Bank, the largest Texas-based community bank headquartered in Houston. Formed in early 2023 through the strategic merger of Allegiance Bancshares, Inc. and CBTX, Inc., the company generates approximately 98% of its revenue through net interest income derived from a diverse portfolio of commercial and retail lending activities. Its primary business segments focus on relationship-driven banking for small-to-medium-sized businesses (SMBs), professionals, and individual customers across the Greater Houston, Beaumont, and Dallas markets. Revenue is supplemented by non-interest income streams, including service charges on deposit accounts, cash management fees, and wire transfer services. In the regional banking landscape, Stellar competes directly with institutions such as Prosperity Bancshares, Inc., Southside Bancshares, Inc., and Origin Bancorp, Inc., positioning itself as a high-touch, community-centric alternative to larger national players. Notably, as of late January 2026, the company entered into a definitive agreement to be acquired by Prosperity Bancshares in an all-stock transaction valued at approximately $2 billion. The leadership team is composed of seasoned banking executives from its predecessor organizations, led by Robert R. Franklin, Jr., who serves as Chief Executive Officer and Director. Franklin previously served as the CEO of CBTX, Inc. and has over 40 years of experience in the Texas banking sector. He is supported by Ramon A. Vitulli, III, who serves as President of the company and CEO of Stellar Bank, and Steven F. Retzloff, the Executive Chairman and former Chairman of Allegiance Bancshares. Financial operations are overseen by Senior Executive Vice President and CFO Paul P. Egge, while Justin M. Long serves as General Counsel and Corporate Secretary. The company’s board of directors includes prominent figures such as Lead Independent Director John Beckworth and Laura D. Bellows. Institutional backing is significant, with major positions held by investment firms such as BlackRock, Vanguard, and Dimensional Fund Advisors, reflecting the company's established footprint in the robust Texas economic corridor.