Stellar Bancorp, Inc. (NYSE:STEL), a Texas-based national commercial bank with a market capitalization of $1.47 billion and a "GOOD" financial health rating according to InvestingPro, announced today that Michael A. Havard, a member of its Board of Directors, has decided not to stand for re-election at the upcoming 2025 Annual Shareholder's Meeting. Havard, who has been a part of Stellar Bancorp's board since 2017, also serves on the company's Compensation Committee and Audit Committee.
The news comes after Havard provided notice of his decision on Sunday, January 6, 2025, stating his intent to retire following the completion of his term at the meeting. His departure is not due to any disagreements with the company's operations, policies, or practices, as confirmed by the company's filing with the Securities and Exchange Commission. The announcement comes as the company trades at a P/E ratio of 12.7, with analysts setting price targets between $28 and $34.
During his tenure, Havard has contributed to the governance of Stellar Bancorp, overseeing various aspects of its strategic and financial operations. His experience and insights have been valuable to the bank as it navigated the changing financial landscape.
The announcement was made in a regulatory filing and marks a significant transition for Stellar Bancorp as the company prepares for its annual meeting. The filing did not specify any potential successors or the company's plans for filling the upcoming vacancy on the board.
As Stellar Bancorp moves forward without Havard, it will be looking to maintain the strength and integrity of its board, which plays a critical role in the strategic direction and oversight of the company. The bank has not yet announced any additional changes to its board or executive team. With its upcoming earnings report scheduled for January 24, 2025, and two analysts recently revising earnings estimates upward, investors can access deeper insights through InvestingPro's comprehensive research reports, which offer detailed analysis of the company's financial health and growth prospects.
This report is based on a press release statement and the details contained in the company's recent SEC filing.
In other recent news, Stellar Bancorp has secured a $75 million credit line from Frost Bank and announced a rise in its quarterly cash dividend from $0.13 to $0.14 per common share. These developments come after the company reported a significant increase in net income to $33.9 million, up from $29.8 million in the previous quarter, primarily due to a $6 million reversal of provision for credit losses. Stellar Bancorp also redeemed all $40 million of its Fixed-to-Floating Rate Subordinated Notes without drawing from the new credit line.
The company has initiated share repurchases and plans to redeem $40 million of subordinated debt, demonstrating a strategic approach to capital management and future growth. Stellar Bancorp has originated over $300 million in loans and improved its total risk-based capital ratio to 15.91%. However, the company anticipates challenges in loan growth due to economic uncertainty but aims for mid-single-digit growth in 2025. These are some of the recent developments at Stellar Bancorp.
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