Form 4: Stellar Bancorp Director Reagan Reaud Reports Acquisition of Restricted Stock and Indirect Share Disposition

Stellar Bancorp, Inc. Director Reagan A. Reaud reported the acquisition of 2,230 restricted shares of common stock and the indirect disposition of 500 shares by Reaud Holdings LLC, both occurring on June 6, 2025.

Summary

• Stellar Bancorp, Inc. (STEL) Director Reagan A. Reaud acquired 2,230 shares of common stock on June 6, 2025.
• These 2,230 shares are restricted and will vest on May 1, 2026, contingent upon continued service as a director.
• The acquisition price for these restricted shares was $0, indicating a grant or award.
• Reaud Holdings LLC, an entity through which Mr. Reaud has indirect beneficial ownership, disposed of 500 shares of common stock on the same date, June 6, 2025, also at a price of $0.
• Following these transactions, Mr. Reaud directly beneficially owns 12,763 shares of Stellar Bancorp, Inc. common stock.

Sentiment

Score: 6

Explanation: The sentiment is neutral to slightly positive. The acquisition of restricted shares by a director is generally seen as a positive sign of alignment with company interests, while the indirect disposition at $0 is a neutral event, likely a non-market transfer.

Positives

• The acquisition of 2,230 restricted shares by Director Reagan A. Reaud at a price of $0 indicates a grant, aligning the director's interests with long-term shareholder value.

Negatives

• The indirect disposition of 500 shares by Reaud Holdings LLC at a price of $0, while not a sale, represents a decrease in the total beneficial ownership held through this entity, though the specific reason for this transaction is not detailed.

Risks

• The vesting of the 2,230 restricted shares is subject to continued service as a director until May 1, 2026, meaning the shares could be forfeited if service ceases before this date.

Future Outlook

The document indicates that 2,230 restricted shares granted to Director Reagan A. Reaud are set to vest on May 1, 2026, contingent on his continued service as a director.

Industry Context

This Form 4 filing reflects routine insider transaction reporting for a director of a publicly traded financial institution. Such equity grants are common compensation practices in the banking sector to align executive and director incentives with long-term company performance and shareholder interests. The disposition of shares at $0 by an indirect entity could be part of personal financial planning or internal trust/entity restructuring, which is also not uncommon among high-net-worth individuals.

Comparison to Industry Standards

• The grant of restricted stock to a director at a $0 price is a standard practice for equity-based compensation across various industries, including financial services, aiming to incentivize long-term commitment and performance.
• The vesting schedule tied to continued service (May 1, 2026) is typical for such grants, ensuring retention and alignment.
• The indirect disposition of shares at $0 by an entity like Reaud Holdings LLC is not unusual for insider transactions, often representing gifts, transfers to family trusts, or other non-market transactions, which are common in personal wealth management for high-net-worth individuals.

Related Party Transactions

• The disposition of 500 shares by Reaud Holdings LLC, an entity through which Director Reagan A. Reaud has indirect beneficial ownership, constitutes a related party transaction.

Stakeholder Impact

• Shareholders: The acquisition of restricted shares by a director at $0 aligns the director's interests with long-term shareholder value, as the shares vest based on continued service and potential stock price appreciation. The indirect disposition of 500 shares at $0 is unlikely to have a material impact on the broader shareholder base.

Next Steps

• The 2,230 restricted shares granted to Director Reagan A. Reaud are scheduled to vest on May 1, 2026, provided he continues his service as a director.

Key Dates

Recommendation

Keywords

Stellar Bancorp, STEL, SEC Form 4, Insider Trading, Beneficial Ownership, Restricted Stock, Director Compensation, Equity Grant, Share Disposition