If you’ve been watching Stellar Bancorp, Inc. (NYSE: STEL), now might be a good time to lean in a little closer.

The Texas-based banking company just made two big moves that investors and industry watchers alike should care about: a fresh $65 million stock buyback program and newly minted membership in the Federal Reserve System.

This Program Means More Confidence

In a clear show of confidence, Stellar’s Board has approved a brand-new 2025–2026 share repurchase program, authorizing the company to buy back up to $65 million of its stock by May 31, 2026.

This isn’t their first rodeo.

Back in 2024, Stellar launched a $60 million repurchase plan.

Before that program ended, the company had already repurchased 108,900 shares in Q3 2024 at an average of $26.10, 1,378,962 shares in Q1 2025 at an average of $27.99, and 679,331 shares post-Q1 2025 at an average of $25.83.

That’s nearly 2.2 million shares off the market, which suggests that Stellar’s leadership sees strong value in its stock, even amid a choppy economic environment.

Share buybacks typically signal that a company believes its shares are undervalued.

It also reduces the number of outstanding shares, which can boost earnings per share (EPS) and return more value to shareholders. It is a classic “we believe in ourselves” move, and Wall Street usually approves.

But There’s More

Stellar also just joined the Federal Reserve System, effective April 14, 2025.

That means its primary federal regulator is now the Board of Governors of the Federal Reserve System, while the Texas Department of Banking remains its state-level watchdog

For banks, joining the Fed is like stepping into a new league. It often means access to broader financial services, greater credibility and oversight, and alignment with national regulatory standards.

In short, this move signals maturity, stability, and a commitment to operating at the highest regulatory levels.

That’s something institutional investors and commercial clients definitely take note of.

Whether you’re an investor looking at STEL stock or a banking nerd watching the sector evolve, these two announcements are telling.

Stellar Bancorp isn’t just resting on past performance, it is doubling down on growth, stability, and shareholder value.

With a $65 million repurchase plan in motion and the Federal Reserve badge freshly pinned, Stellar is signaling it’s here for the long haul.