Joe F. West
About Joe F. West
Senior Executive Vice President and Chief Credit Officer of Stellar Bancorp, Inc. and Stellar Bank; 40+ years in banking with a BBA in Accounting from Baylor University (1978) and licensed CPA. Responsible for loan asset quality, loan policy, and the Bank’s loan approval process; previously Senior EVP/CCO at CommunityBank since 2013, joining Stellar following the October 1, 2022 merger of Allegiance Bancshares, Inc. and CBTX, Inc. . Company 2024 performance context: net income $115.0M, EPS $2.15, ROAA 1.08%, ROAE 7.34%, ROATCE 11.91%; NCOs 0.09% of average loans and NPLs at 0.50%—credit metrics directly relevant to his remit .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Stellar Bancorp, Inc. / Stellar Bank | Senior EVP & Chief Credit Officer | Not disclosed (current) | Oversees loan asset quality, loan policy, and approval process |
| CommunityBank (CBTX) | Senior EVP & Chief Credit Officer | 2013–2022 | Led credit function pre-merger into Stellar |
| Vista Bank Texas | EVP & Senior Credit Officer | 2006–2013 | Senior credit leadership prior to CBTX merger |
| Horizon Capital Bank (Houston) | Senior Credit Officer | Not disclosed (prior to 2006) | Senior credit oversight |
Fixed Compensation
- Joe F. West is an executive officer but not a Named Executive Officer (NEO); individual salary, target bonus %, and actual bonus are not disclosed in the proxy’s NEO tables .
- All officers (including executive officers) participate in the Annual Incentive Plan (AIP), but specific payouts for non-NEOs are not provided .
Performance Compensation
Annual Incentive Plan (AIP) – Structure and 2024 Outcomes
| Metric | Weighting | Minimum (0%) | Target (100%) | Maximum (150%) | 2024 Actual |
|---|---|---|---|---|---|
| ROATCE | 50% | 7.00% | 11.25%–12.25% | 14.00% | 12.00% |
| Pre-tax Pre-provision ROAA (PTPP ROAA) | 30% | 1.10% | 1.40%–1.55% | 1.75% | 1.35% |
| Net Charge-offs / Average Loans (bps) | 20% | 35 | 25–20 | 5 | 9 |
- All officers participate in the AIP with formulaic payouts against these corporate metrics; NEO payout calibration for 2024 was 102.33% of target (framework indicative for officers generally) .
Long-Term Incentives (LTI) – Plan Design
| Award Type | Metric | Performance Window | Earning Curve | Vesting |
|---|---|---|---|---|
| PSUs | Relative TSR vs S&P U.S. SmallCap Bank Index | Jan 1, 2024–Dec 31, 2026 | 0% <20th pct; 100% at 45th–55th pct; 200% ≥75th pct (linear interpolation) | Cliff vest at end of period (employment required) |
| RSAs | Time-based | Not applicable | Not applicable | Ratable over 3 years (one-third annually) |
- Stellar’s equity plan prohibits dividends on unvested awards and repricing of options/SARs without shareholder approval; minimum 1-year vesting with limited exceptions; new award agreements include a 12-month minimum holding period for executives post receipt (vesting/exercise/settlement) adopted Feb 2025 .
Equity Ownership & Alignment
| Policy | Requirement |
|---|---|
| Stock Ownership Guidelines | CEO: 5x base salary; Non-employee directors: 5x cash retainer; All other executive officers (includes CCO role): 2x base salary |
| Post-Vest Holding | Executives must hold shares acquired from 2025+ LTI vestings for 1 year |
| Clawback | Executive Officer Clawback Policy effective Oct 2, 2023 for erroneously awarded incentive-based compensation upon restatement |
| Insider Trading Policy | Pre-clearance required; hedging/short sales prohibited; pledging discouraged and requires prior notice, with ongoing governance oversight of outstanding pledges |
- Joe F. West’s personal beneficial ownership, vested/unvested share breakdown, and any pledging are not disclosed in the proxy’s beneficial ownership table (covers directors and NEOs) .
Employment Terms
- No individual employment agreement for Joe F. West is disclosed; only the CEO’s agreement terms are summarized in the proxy .
- Change-in-Control Severance Plan explicitly covers NEOs with 2.0–3.0x salary+target bonus multiples; West’s eligibility is not stated .
- Stellar Bank Severance Plan terms are discussed for NEOs; broader employee coverage is not detailed by name .
Performance & Track Record (Company Metrics Relevant to Credit)
| Metric | 2023 | 2024 |
|---|---|---|
| Net Income ($MM) | $130.5 | $115.0 |
| Diluted EPS ($) | $2.45 | $2.15 |
| ROATCE (%) | 15.75 | 11.91 |
| Pre-tax Pre-provision ROAA (%) | 1.59 | 1.33 |
| Net Charge-offs / Avg Loans (%) | 0.14 | 0.09 |
| Nonperforming Loans / Total Loans (%) | 0.49 | 0.50 |
| Tangible Book Value per Share ($) | $17.02 | $19.05 |
| Noninterest-bearing Deposits (% of total) | Not disclosed | 39.2% |
| Quarterly Dividend ($/share) | $0.13 | $0.14 |
- These outcomes (especially NCOs/NPLs) reflect the core credit risk profile managed under the CCO’s oversight; AIP metrics incorporate ROATCE, PTPP ROAA, and charge-off discipline .
Compensation Structure Analysis
- Mix and risk: Executives’ pay emphasis is variable and performance-based via AIP and LTI (TSR PSUs + RSAs), aligning to shareholder returns and disciplined credit outcomes; no excessive perquisites or excise tax gross-ups, with clawback compliance to SEC/NYSE rules .
- Metric quality: AIP metrics target profitability (ROATCE), core earnings (PTPP ROAA), and asset quality (NCOs), balancing growth with risk control—directly within the CCO’s sphere .
- Equity governance: Minimum vesting/holding periods and no dividends on unvested stock mitigate short-term selling pressure and promote long-term alignment; shareholder-approved plan governance (no repricing) .
Investment Implications
- Alignment: Strong linkage of annual incentives to ROATCE/PTPP ROAA/NCOs and LTI to relative TSR, paired with 2x salary ownership requirements and 1-year post-vest holding, supports long-term alignment and reduces near-term selling pressure from executive awards .
- Execution: Credit quality metrics (NCOs at 0.09%; NPLs at 0.50%) and tangible book value growth underscore disciplined underwriting and portfolio oversight during a challenging rate/credit environment—positive read-through for CCO effectiveness .
- Risks/Unknowns: Pledging is discouraged but not prohibited (requires notice), representing a potential alignment red flag if used; Joe West’s individual compensation, ownership levels, and severance eligibility are not disclosed, limiting precision in pay-for-performance and retention risk assessment .
- Shareholder context: Say-on-pay support was ~96.5%, indicating broad investor approval of the overall program design, which applies the same AIP framework to officers broadly .