| Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations |
The following is a summary of the Company’s and the Bank’s actual and required capital ratios as of March 31, 2026 and December 31, 2025: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Actual | | Minimum Required for Capital Adequacy Purposes | | Minimum Required Plus Capital Conservation Buffer | | To Be Categorized As Well-Capitalized Under
Prompt Corrective Action Provisions | | Amount | | Ratio | | Amount | | Ratio | | Amount | | Ratio | | Amount | | Ratio | | (Dollars in thousands) | STELLAR BANCORP, INC. (Consolidated) | | | | | | | | | | | | | | | | | March 31, 2026 | | | | | | | | | | | | | | | | Total Capital (to risk-weighted assets) | $ | 1,322,183 | | | 15.48 | % | | $ | 683,464 | | | 8.00 | % | | $ | 897,046 | | | 10.50 | % | | N/A | | N/A | Common Equity Tier 1 Capital (to risk-weighted assets) | 1,193,324 | | | 13.97 | % | | 384,448 | | | 4.50 | % | | 598,031 | | | 7.00 | % | | N/A | | N/A | Tier 1 Capital (to risk-weighted assets) | 1,203,580 | | | 14.09 | % | | 512,598 | | | 6.00 | % | | 726,180 | | | 8.50 | % | | N/A | | N/A | Tier 1 Leverage (to average tangible assets) | 1,203,580 | | | 11.29 | % | | 426,520 | | | 4.00 | % | | 426,520 | | | 4.00 | % | | N/A | | N/A | | December 31, 2025 | | | | | | | | | | | | | | | | Total Capital (to risk-weighted assets) | $ | 1,301,075 | | | 15.73 | % | | $ | 661,851 | | | 8.00 | % | | $ | 868,679 | | | 10.50 | % | | N/A | | N/A | Common Equity Tier 1 Capital (to risk-weighted assets) | 1,173,283 | | | 14.18 | % | | 372,291 | | | 4.50 | % | | 579,119 | | | 7.00 | % | | N/A | | N/A | Tier 1 Capital (to risk-weighted assets) | 1,183,509 | | | 14.31 | % | | 496,388 | | | 6.00 | % | | 703,216 | | | 8.50 | % | | N/A | | N/A | Tier 1 Leverage (to average tangible assets) | 1,183,509 | | | 11.52 | % | | 410,785 | | | 4.00 | % | | 410,785 | | | 4.00 | % | | N/A | | N/A | | STELLAR BANK | | | | | | | | | | | | | | | | | March 31, 2026 | | | | | | | | | | | | | | | | Total Capital (to risk-weighted assets) | $ | 1,256,576 | | | 14.74 | % | | $ | 682,062 | | | 8.00 | % | | $ | 895,206 | | | 10.50 | % | | $ | 852,577 | | | 10.00 | % | Common Equity Tier 1 Capital (to risk-weighted assets) | 1,155,974 | | | 13.56 | % | | 383,660 | | | 4.50 | % | | 596,804 | | | 7.00 | % | | 554,175 | | | 6.50 | % | Tier 1 Capital (to risk-weighted assets) | 1,155,974 | | | 13.56 | % | | 511,546 | | | 6.00 | % | | 724,691 | | | 8.50 | % | | 682,062 | | | 8.00 | % | Tier 1 Leverage (to average tangible assets) | 1,155,974 | | | 10.86 | % | | 425,814 | | | 4.00 | % | | 425,814 | | | 4.00 | % | | 532,267 | | | 5.00 | % | | December 31, 2025 | | | | | | | | | | | | | | | | Total Capital (to risk-weighted assets) | $ | 1,241,007 | | | 15.03 | % | | $ | 660,452 | | | 8.00 | % | | $ | 866,844 | | | 10.50 | % | | $ | 825,566 | | | 10.00 | % | Common Equity Tier 1 Capital (to risk-weighted assets) | 1,141,442 | | | 13.83 | % | | 371,504 | | | 4.50 | % | | 577,896 | | | 7.00 | % | | 536,618 | | | 6.50 | % | Tier 1 Capital (to risk-weighted assets) | 1,141,442 | | | 13.83 | % | | 495,339 | | | 6.00 | % | | 701,731 | | | 8.50 | % | | 660,452 | | | 8.00 | % | Tier 1 Leverage (to average tangible assets) | 1,141,442 | | | 11.14 | % | | 410,038 | | | 4.00 | % | | 410,038 | | | 4.00 | % | | 512,548 | | | 5.00 | % |
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