# Stellar Bancorp

Stellar Bancorp is an Asset Manager based in Houston, United States.

## Overview

- **Organization type:** Asset Manager
- **Headquarters:** Houston, United States
- **Region:** North America
- **Address:** Houston, TX, United States
- **Founded:** 1908
- **Assets under management:** Undisclosed
- **Website:** stellarbancorpinc.com
- **LinkedIn:** https://www.linkedin.com/company/stellar-bancorp-inc

## Regulatory record

- **Reports private funds:** No

## About

Stellar Bancorp traces its lineage to the 1908 founding of what became CommunityBank of Texas (CBTX), a Beaumont-rooted commercial lender that grew across Jefferson, Harris, and Montgomery counties over more than a century. The modern entity took shape in October 2022 when CBTX and Allegiance Bank merged in an all-stock combination, creating a combined franchise with approximately $10.8 billion in total assets, $8.3 billion in loans, and $9.3 billion in deposits across 55 locations concentrated in Houston, Beaumont, and surrounding southeast Texas communities (per the firm, October 2022). CEO Bob Franklin, previously CBTX's chairman, now runs the combined group alongside Allegiance veteran Steve Retzloff as executive chairman. Stellar operates through its wholly owned bank subsidiary, Stellar Bank, delivering commercial and industrial lending, owner-occupied and investor-owned commercial real estate finance, residential mortgage, and treasury management services to middle-market businesses, entrepreneurs, and professionals across the Gulf Coast. The loan book tilts heavily toward commercial real estate and C&I credits, with disclosed concentrations in healthcare, professional-services firms, and distribution companies. Deposit gathering is similarly local, with deep relationships in Houston's energy-adjacent business corridors and suburban professional communities like The Woodlands and Sugar Land. Stellar participates in SBA 7(a) lending and generates fee income through mortgage banking and treasury products, though net interest income drives approximately 80 percent of revenue. The franchise spans 55 branches, roughly 800 employees, and a market presence stretching from Bryan/College Station south to Galveston and west into Katy and Richmond. Adjacent infrastructure includes Stellar Investment Services, a broker-dealer arm offering wealth management and retirement-plan advisory to retail and business clients. In May 2023, Stellar Bancorp completed its core-systems integration, consolidating operating platforms following the merger and signaling the end of the heavy-lift conversion phase (per the firm, May 2023). The 2022 merger that formed Stellar represented a rare public-market rollup of two Texas community banks — a structural oddity at a moment when most consolidation happens via cash acquisitions by larger regionals. The all-stock deal preserved insider ownership and local control, with the top five institutional holders as of 2024 being Wellington, BlackRock, Vanguard, Dimensional Fund Advisors, and Castle Creek Capital, a bank-specialist investor. That insider-plus-specialist shareholder base gives Stellar a governance profile closer to a privately held partnership than a typical NASDAQ-traded bank, with management incentives tied to long-term regional credit performance rather than short-term spread capture.

## Sectors

- Financial Services

## People

- Robert R. Franklin Jr. — Chief Executive Officer
- Paul P. Egge — Chief Financial Officer

## Questions

### Who runs investment decisions at Stellar Bancorp?

Stellar Bancorp is a community bank, not an asset manager. Credit decisions are made by the subsidiary Stellar Bank's senior lending officers under CEO Bob Franklin, with ultimate oversight from the board's risk committee. The investment portfolio is managed internally by the treasury group, which focuses on agency mortgage-backed securities, municipals, and short-duration government obligations — a standard hold-to-maturity or available-for-sale community-bank book rather than a proprietary trading operation.

### How did Stellar Bancorp reach its current form?

Stellar Bancorp formed through the October 2022 all-stock merger of equals between CBTX Inc. (the holding company for CommunityBank of Texas, founded 1908) and Allegiance Bancshares Inc. (founded 2007). The combined entity adopted the Stellar Bancorp name, with CBTX's Bob Franklin remaining CEO and Allegiance's Steve Retzloff becoming executive chairman, retaining both legacy leadership teams inside a single $10.8 billion platform (per the firm, October 2022).

### What investment stages does Stellar Bancorp typically target?

Stellar Bancorp's subsidiary bank focuses on established middle-market businesses with recurring revenue and hard collateral, not pre-revenue or early-stage companies. Typical borrowers are privately held industrial, distribution, healthcare, and professional-services firms with $5 million to $100 million in annual revenue seeking asset-based or cash-flow-based credit facilities between $1 million and $30 million. The bank offers no seed, venture, or growth-equity stage capital.

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Last updated: 2026-06-03T20:00:00.000Z

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