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Five Star Bancorp Announces First Quarter 2025 Results

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Five Star Bancorp reported strong Q1 2025 financial results with net income of $13.1 million, slightly down from $13.3 million in Q4 2024 but up from $10.6 million in Q1 2024. The bank showed impressive growth with:

  • Total loans increased by $89.1 million (2.52%)
  • Total deposits grew by $178.4 million (5.01%)
  • Net interest margin improved to 3.45%
  • Zero short-term borrowings maintained

The bank's San Francisco expansion continues successfully, with Bay Area employees increasing from 27 to 31, generating $379.8 million in deposits. The bank maintains strong capital positions with a common equity Tier 1 ratio of 11.00%. Five Star declared a cash dividend of $0.20 per share and ranked third among best-performing banks nationwide in its asset category ($3-10 billion) by S&P Global Market Intelligence.

Key metrics show solid performance with an efficiency ratio of 42.58% and return on average assets (ROAA) of 1.30%. The bank's total liquidity position remained strong at approximately $2.0 billion.

Five Star Bancorp ha riportato risultati finanziari solidi nel primo trimestre 2025 con un utile netto di 13,1 milioni di dollari, leggermente inferiore ai 13,3 milioni del quarto trimestre 2024, ma in crescita rispetto ai 10,6 milioni del primo trimestre 2024. La banca ha mostrato una crescita notevole con:

  • Un aumento dei prestiti totali di 89,1 milioni di dollari (2,52%)
  • Una crescita dei depositi totali di 178,4 milioni di dollari (5,01%)
  • Un miglioramento del margine di interesse netto al 3,45%
  • Nessun indebitamento a breve termine

L'espansione della banca a San Francisco procede con successo, con il personale nella Bay Area che è passato da 27 a 31 dipendenti, generando depositi per 379,8 milioni di dollari. La banca mantiene solide posizioni patrimoniali con un indice di common equity Tier 1 dell'11,00%. Five Star ha dichiarato un dividendo in contanti di 0,20 dollari per azione ed è stata classificata terza tra le banche con le migliori performance a livello nazionale nella sua categoria di asset ($3-10 miliardi) da S&P Global Market Intelligence.

I principali indicatori mostrano una performance solida con un indice di efficienza del 42,58% e un rendimento medio degli attivi (ROAA) dell'1,30%. La posizione di liquidità complessiva della banca è rimasta forte, attestandosi a circa 2,0 miliardi di dollari.

Five Star Bancorp reportó sólidos resultados financieros en el primer trimestre de 2025 con un ingreso neto de 13,1 millones de dólares, ligeramente inferior a los 13,3 millones del cuarto trimestre de 2024, pero superior a los 10,6 millones del primer trimestre de 2024. El banco mostró un crecimiento impresionante con:

  • Un aumento en los préstamos totales de 89,1 millones de dólares (2,52%)
  • Un crecimiento en los depósitos totales de 178,4 millones de dólares (5,01%)
  • Una mejora en el margen de interés neto al 3,45%
  • Mantener cero préstamos a corto plazo

La expansión del banco en San Francisco continúa con éxito, aumentando el personal en el Área de la Bahía de 27 a 31 empleados, generando depósitos por 379,8 millones de dólares. El banco mantiene sólidas posiciones de capital con una ratio de capital común Tier 1 del 11,00%. Five Star declaró un dividendo en efectivo de 0,20 dólares por acción y se ubicó en tercer lugar entre los bancos con mejor desempeño a nivel nacional en su categoría de activos ($3-10 mil millones) según S&P Global Market Intelligence.

Los indicadores clave muestran un desempeño sólido con una ratio de eficiencia del 42,58% y un retorno sobre activos promedio (ROAA) del 1,30%. La posición total de liquidez del banco se mantuvo fuerte en aproximadamente 2,0 mil millones de dólares.

Five Star Bancorp� 2025� 1분기� 순이� 1,310� 달러� 기록하며 강력� 재무 실적� 발표했습니다. 이는 2024� 4분기� 1,330� 달러보다� 약간 감소했지� 2024� 1분기� 1,060� 달러보다� 증가� 수치입니�. 은행은 다음� 같은 인상적인 성장� 보였습니�:

  • � 대출금 8,910� 달러(2.52%) 증가
  • � 예금 1� 7,840� 달러(5.01%) 증가
  • 순이자마� 3.45%� 개선
  • 단기 차입� 0 유지

읶행의 샌프란시스� 확장은 성공적으� 진행 중이�, 베이 지� 직원 수가 27명에� 31명으� 늘어� 3� 7,980� 달러� 예금� 창출했습니다. 은행은 보통� 자기자본 1등급 비율 11.00%� 강력� 자본 상태� 유지하고 있습니다. Five Star� 주당 0.20달러� 현금 배당� 선언했으�, S&P 글로벌 마켓 인텔리전스가 선정� 자산 규모($30억~100� 달러) � 전국 최고 성과 은� � 3위를 차지했습니다.

주요 지표는 42.58%� 효율� 비율� 1.30%� 평균 자산 수익�(ROAA)� 견고� 성과� 보여줍니�. 읶행의 � 유동� 위치� � 20� 달러� 강세� 유지했습니다.

Five Star Bancorp a publié de solides résultats financiers pour le premier trimestre 2025 avec un revenu net de 13,1 millions de dollars, légèrement en baisse par rapport aux 13,3 millions du quatrième trimestre 2024, mais en hausse par rapport aux 10,6 millions du premier trimestre 2024. La banque a affiché une croissance impressionnante avec :

  • Une augmentation des prêts totaux de 89,1 millions de dollars (2,52%)
  • Une croissance des dépôts totaux de 178,4 millions de dollars (5,01%)
  • Une amélioration de la marge d'intérêt nette à 3,45%
  • Aucun emprunt à court terme maintenu

L'expansion de la banque à San Francisco se poursuit avec succès, le nombre d'employés dans la région de la baie passant de 27 à 31, générant 379,8 millions de dollars de dépôts. La banque conserve une solide position de capital avec un ratio de fonds propres de base Tier 1 de 11,00%. Five Star a déclaré un dividende en espèces de 0,20 dollar par action et s'est classée troisième parmi les banques les plus performantes au niveau national dans sa catégorie d'actifs (3-10 milliards de dollars) selon S&P Global Market Intelligence.

Les indicateurs clés montrent une performance solide avec un ratio d'efficacité de 42,58% et un rendement des actifs moyens (ROAA) de 1,30%. La position globale de liquidité de la banque est restée forte à environ 2,0 milliards de dollars.

Five Star Bancorp meldete starke Finanzergebnisse für das erste Quartal 2025 mit einem Nettoeinkommen von 13,1 Millionen US-Dollar, was leicht unter den 13,3 Millionen im vierten Quartal 2024 liegt, aber über den 10,6 Millionen im ersten Quartal 2024. Die Bank zeigte beeindruckendes Wachstum mit:

  • Gesamtkredite stiegen um 89,1 Millionen US-Dollar (2,52%)
  • Gesamteinlagen wuchsen um 178,4 Millionen US-Dollar (5,01%)
  • Nettozinsmarge verbesserte sich auf 3,45%
  • Keine kurzfristigen Kredite aufgenommen

Die Expansion der Bank in San Francisco verläuft erfolgreich, mit einem Anstieg der Mitarbeiter in der Bay Area von 27 auf 31, was Einlagen in Höhe von 379,8 Millionen US-Dollar generiert. Die Bank hält starke Kapitalpositionen mit einer Common Equity Tier 1 Ratio von 11,00%. Five Star erklärte eine Bardividende von 0,20 US-Dollar je Aktie und belegte den dritten Platz unter den bestperformenden Banken landesweit in ihrer Vermögenskategorie (3-10 Milliarden US-Dollar) laut S&P Global Market Intelligence.

Wichtige Kennzahlen zeigen eine solide Leistung mit einer Effizienzquote von 42,58% und einer Rendite auf das durchschnittliche Vermögen (ROAA) von 1,30%. Die gesamte Liquiditätsposition der Bank blieb mit etwa 2,0 Milliarden US-Dollar stark.

Positive
  • Net income increased 23.33% YoY to $13.1M in Q1 2025 vs $10.6M in Q1 2024
  • Net interest margin improved to 3.45% from 3.14% YoY
  • Total loans grew 16.68% YoY to $3.62B
  • Total deposits increased by $178.4M (5.01%) in Q1, with strong growth in both wholesale and non-wholesale deposits
  • San Francisco expansion showing success with deposits increasing $87.4M to $379.8M
  • Zero short-term borrowings maintained, indicating strong liquidity position
  • Strong efficiency ratio of 42.58%
  • Maintained healthy asset quality with nonperforming loans ratio at just 0.05%
  • Ranked 3rd among best-performing banks nationally by S&P Global Market Intelligence
Negative
  • Quarter-over-quarter net income slightly decreased from $13.3M to $13.1M
  • ROAE declined to 13.28% from 14.84% YoY
  • Non-interest expense increased 18.32% YoY to $15.045M
  • Provision for credit losses increased significantly by 111.11% YoY to $1.9M
  • Non-interest income decreased 25.86% YoY to $1.359M

Insights

Five Star Bancorp delivered strong Q1 2025 results with 23.33% YoY net income growth, improving NIM, and successful San Francisco expansion.

Five Star Bancorp reported $13.1 million in Q1 2025 net income, slightly below Q4 2024's $13.3 million but substantially higher than Q1 2024's $10.6 million, representing a 23.33% year-over-year increase. Diluted EPS remained stable at $0.62.

The bank showed impressive performance metrics with ROAA at 1.30% and ROAE at 13.28%. Net interest margin expanded to 3.45%, up from 3.36% in Q4 2024 and 3.14% a year ago, demonstrating effective yield management as the Federal Funds rate remained constant at 4.33%.

Five Star's balance sheet displayed robust growth with total loans increasing 2.52% quarter-over-quarter (10.09% annualized) and 16.68% year-over-year. Total deposits grew 5.01% for the quarter (20.05% annualized). The bank maintained strong liquidity with $452.6 million in cash and cash equivalents, representing 12.11% of total deposits.

The San Francisco Bay Area expansion continues to gain traction, with employee count increasing from 27 to 31 and deposits in the region reaching $379.8 million, up $87.4 million from Q4 2024. Credit quality remains excellent with nonperforming loans at just 0.05% of total loans.

The efficiency ratio increased slightly to 42.58% from 41.21% in Q4, primarily due to higher salaries and employee benefits related to the expansion strategy. The bank maintained its quarterly dividend at $0.20 per share while reporting recognition as the third-ranked best-performing bank among institutions with assets between $3-10 billion according to S&P Global Market Intelligence.

RANCHO CORDOVA, Calif., April 28, 2025 (GLOBE NEWSWIRE) -- Five Star Bancorp(Nasdaq: FSBC) (“Five Star� or the “Company�), a holding company that operates through its wholly owned banking subsidiary, Five Star Bank (the “Bank�), today reported net income of $13.1 million for the three months ended March31, 2025, as compared to $13.3 million for the three months ended December31, 2024 and $10.6 million for the three months ended March31, 2024.

First Quarter Highlights

Performance and operating highlights for the Company for the periods noted below included the following:

Three months ended
(in thousands, except per share and share data)March 31,
2025
December 31,
2024
March 31,
2024
Return on average assets (“ROAA�)1.30%1.31%1.22%
Return on average equity (“ROAE�)13.28%13.48%14.84%
Pre-tax income$18,391$19,367$14,961
Pre-tax, pre-provision income(1)$20,291$20,667$15,861
Net income$13,111$13,317$10,631
Basic earnings per common share$0.62$0.63$0.62
Diluted earnings per common share$0.62$0.63$0.62
Weighted average basic common shares outstanding21,209,88121,182,14317,190,867
Weighted average diluted common shares outstanding21,253,58821,235,31817,272,994
Shares outstanding at end of period21,329,23521,319,08317,353,251
(1) See the section entitled “Non-GAAP Reconciliation (Unaudited)� for a reconciliation of this non-GAAP financial measure.

James E. Beckwith, President and Chief Executive Officer, commented:

“The strength of Five Star Bank’s first quarter 2025 financial results is emblematic of a reputation built on an unwavering commitment to customers and community partners who rely on our speed to serve and certainty of execution for their own successes. This differentiated customer experience has created great demand for our services and seized market opportunities in San Francisco. As we continue to grow our presence, we now have 31 San Francisco Bay Area employees. As of March31, 2025 our San Francisco Bay Area operations had $379.8 million in total deposits.

At the Company level, total loans held for investment increased by $89.1 million, or 2.52% (10.09% when annualized). Total deposits increased by $178.4 million, or 5.01% (20.05% when annualized), with wholesale deposits increasing by $130.0 million, or 23.21%, and non-wholesale deposits increasing by $48.4 million, or 1.61%. Short-term borrowings remained at zero as of March31, 2025 and December31, 2024. Net interest margin increased by nine basis points to 3.45% and our efficiency ratio increased to 42.58%, as compared to 41.21% for the fourth quarter of 2024, while cost of funds decreased nine basis points to 2.56%.

In the first quarter of 2025, we were pleased to declare another cash dividend of $0.20 per share. We were also pleased to have been ranked third among best-performing banks in the nation by S&P Global Market Intelligence (among banks with assets between $3 billion and $10 billion).

As we execute on the expansion of industry verticals and our presence in new geographies to meet customer demand, we expect the ongoing acceleration of our growth to benefit our customers, employees, and shareholders. We also expect our demonstrated ability to adapt to changing economic conditions to serve us well into the future as we remain vigilant and focused on disciplined business practices. We thank our employees for their outstanding commitment to ensuring Five Star Bank remains a safe, trusted, and steadfast banking partner.�

Financial highlights during the quarter included the following:

  • The San Francisco Bay Area team increased from 27 to 31 employees who generated deposit balances totaling $379.8 million at March31, 2025, an increase of $87.4 million from December31, 2024.
  • Cash and cash equivalents were $452.6 million, representing 12.11% of total deposits at March31, 2025, as compared to 9.90% at December31, 2024.
  • Total deposits increased by $178.4million, or 5.01%, during the three months ended March31, 2025, due to increases in both non-wholesale and wholesale deposits, which the Company defines as brokered deposits and California Time Deposit Program deposits. During the three months ended March31, 2025, non-wholesale deposits increased by $48.4 million, or 1.61%, and wholesale deposits increased by $130.0 million, or 23.21%.
  • The Company had no short-term borrowings at March31, 2025 or December31, 2024.
  • Consistent, disciplined management of expenses contributed to our efficiency ratio of 42.58% for the three months ended March31, 2025, as compared to 41.21% for the three months ended December31, 2024.
  • For the three months ended March31, 2025, net interest margin was 3.45%, as compared to 3.36% for the three months ended December31, 2024 and 3.14% for the three months ended March31, 2024. The effective Federal Funds rate was 4.33% as of March31, 2025, remaining constant from December31, 2024 and decreasing from 5.33% at March31, 2024.
  • Other comprehensive income was $0.7 million during the three months ended March31, 2025. Unrealized losses, net of tax effect, on available-for-sale securities were $11.6 million as of March31, 2025. Total carrying value of held-to-maturity and available-for-sale securities represented 0.06% and 2.35% of total interest-earning assets, respectively, as of March31, 2025.
  • The Company’s common equity Tier 1 capital ratio was 11.00% and 11.02% as of March31, 2025 and December31, 2024, respectively. The Bank continues to meet all requirements to be considered “well-capitalized� under applicable regulatory guidelines.
  • Loan and deposit growth in the three and twelve months ended March31, 2025 was as follows:
(in thousands)March 31,
2025
December 31,
2024
$ Change% Change
Loans held for investment$3,621,819$3,532,686$89,1332.52%
Non-interest-bearing deposits933,652922,62911,0231.19%
Interest-bearing deposits2,802,7022,635,365167,3376.35%
(in thousands)March 31,
2025
March 31,
2024
$ Change% Change
Loans held for investment$3,621,819$3,104,130$517,68916.68%
Non-interest-bearing deposits933,652817,388116,26414.22%
Interest-bearing deposits2,802,7022,138,384664,31831.07%
  • The ratio of nonperforming loans to loans held for investment at period end remained at 0.05% from December31, 2024 to March31, 2025.
  • The Company’s Board of Directors declared on January16, 2025, and the Company subsequently paid, a cash dividend of $0.20 per share during the three months ended March31, 2025. The Company’s Board of Directors subsequently declared another cash dividend of $0.20 per share on April17, 2025, which the Company expects to pay on May12, 2025 to shareholders of record as of May5, 2025.

Summary Results

Three months ended March31, 2025, as compared to three months ended December31, 2024

The Company’s net income was $13.1 million for the three months ended March31, 2025, as compared to $13.3 million for the three months ended December31, 2024. Net interest income increased by $0.5 million, primarily due to a decrease in interest expense due to lower average rates on deposits, partially offset by a decrease in interest income driven by lower balances and yields on interest-earning deposits in banks, as compared to the three months ended December31, 2024. The provision for credit losses increased by $0.6 million, reflecting adjustments to expectations for credit losses based on economic trends and forecasts in the three months ended March31, 2025 compared to the three months ended December31, 2024. Non-interest income decreased by $0.3 million, primarily due to a reduction in income received on equity investments in venture-backed funds during the three months ended March31, 2025, as compared to the three months ended December31, 2024. Non-interest expense increased by $0.6 million, primarily related to an increase in salaries and employee benefits, partially offset by decreases in advertising, promotional, and other operating expenses during the three months ended March31, 2025, as compared to the three months ended December31, 2024.

Three months ended March31, 2025, as compared to three months ended March31, 2024

The Company’s net income was $13.1 million for the three months ended March31, 2025, as compared to $10.6 million for the three months ended March31, 2024. Net interest income increased by $7.2 million, primarily due to an increase in interest income driven by a higher balance of loans with higher yields, partially offset by an increase in interest expense due to larger average deposit balances, as compared to the three months ended March31, 2024. The provision for credit losses increased by $1.0 million, relating to loan growth and adjustments to expectations for credit losses based on economic trends and forecasts during the three months ended March31, 2025, as compared to the three months ended March31, 2024. Non-interest income decreased by $0.5 million, primarily due to a reduction in income received on equity investments in venture-backed funds during the three months ended March31, 2025, as compared to the three months ended March31, 2024. Non-interest expense increased by $2.3 million during the three months ended March31, 2025, as compared to the three months ended March31, 2024, with an increase in salaries and employee benefits related to increased headcount as the leading driver.

The following is a summary of the components of the Company’s operating results and performance ratios for the periods indicated:

Three months ended
(in thousands, except per share data)March 31,
2025
December 31,
2024
$ Change% Change
Selected operating data:
Net interest income$33,977$33,489$4881.46%
Provision for credit losses1,9001,30060046.15%
Non-interest income1,3591,666(307)(18.43)%
Non-interest expense15,04514,4885573.84%
Pre-tax income18,39119,367(976)(5.04)%
Provision for income taxes5,2806,050(770)(12.73)%
Net income$13,111$13,317$(206)(1.55)%
Earnings per common share:
Basic$0.62$0.63$(0.01)(1.59)%
Diluted$0.62$0.63$(0.01)(1.59)%
Performance and other financial ratios:
ROAA1.30%1.31%
ROAE13.28%13.48%
Net interest margin3.45%3.36%
Cost of funds2.56%2.65%
Efficiency ratio42.58%41.21%
Three months ended
(in thousands, except per share data)March 31,
2025
March 31,
2024
$ Change% Change
Selected operating data:
Net interest income$33,977$26,744$7,23327.05%
Provision for credit losses1,9009001,000111.11%
Non-interest income1,3591,833(474)(25.86)%
Non-interest expense15,04512,7162,32918.32%
Pre-tax income18,39114,9613,43022.93%
Provision for income taxes5,2804,33095021.94%
Net income$13,111$10,631$2,48023.33%
Earnings per common share:
Basic$0.62$0.62$%
Diluted$0.62$0.62$%
Performance and other financial ratios:
ROAA1.30%1.22%
ROAE13.28%14.84%
Net interest margin3.45%3.14%
Cost of funds2.56%2.62%
Efficiency ratio42.58%44.50%

Balance Sheet Summary

(in thousands)March 31,
2025
December 31,
2024
$ Change% Change
Selected financial condition data:
Total assets$4,245,057$4,053,278$191,7794.73%
Cash and cash equivalents452,571352,343100,22828.45%
Total loans held for investment3,621,8193,532,68689,1332.52%
Total investments99,696100,914(1,218)(1.21)%
Total liabilities3,838,6063,656,654181,9524.98%
Total deposits3,736,3543,557,994178,3605.01%
Subordinated notes, net73,93273,895370.05%
Total shareholders� equity406,451396,6249,8272.48%
  • Insured and collateralized deposits were approximately $2.5 billion, representing 67.55% of total deposits as of March31, 2025, as compared to 66.92% as of December31, 2024. Net uninsured and uncollateralized deposits were approximately $1.2 billion as of March31, 2025, remaining constant from December31, 2024.
  • Non-wholesale deposit accounts constituted 81.53% of total deposits as of March31, 2025, as compared to 84.26% at December31, 2024. Deposit relationships of greater than $5 million represented 60.87% of total deposits, as compared to 61.13% as of December31, 2024, and had an average age of approximately 8.80 years as of March31, 2025, as compared to 9.28 years as of December31, 2024.
  • Cash and cash equivalents as of March31, 2025 were $452.6 million, representing 12.11% of total deposits at March31, 2025, as compared to 9.90% as of December31, 2024.
  • Total liquidity (consisting of cash and cash equivalents and unused and immediately available borrowing capacity as set forth below) was approximately $2.0 billion as of March31, 2025, as compared to $1.9 billion at December31, 2024.
March 31, 2025
(in thousands)Line of CreditLetters of Credit IssuedBorrowingsAvailable
Federal Home Loan Bank of San Francisco (“FHLB�) advances$1,276,072$731,500$$544,572
Federal Reserve Discount Window856,366856,366
Correspondent bank lines of credit175,000175,000
Cash and cash equivalents452,571
Total$2,307,438$731,500$$2,028,509

The increase in total assets from December31, 2024 to March31, 2025 was primarily due to a $100.2 millionincrease in cash and cash equivalents and an $89.1 millionincrease in total loans held for investment. The $100.2 million increase in cash and cash equivalents primarily resulted from net cash inflows related to financing and operating activities of $174.1 million and $15.5 million, respectively, partially offset by net cash outflows related to investing activities of $89.3 million. The $89.1 million increase in total loans held for investment between December31, 2024 and March31, 2025 was a result of $259.3 million in loan originations and advances, partially offset by $65.6 million and $104.6 million in loan payoffs and paydowns, respectively. The $89.1 million increase in total loans held for investment included $19.8 million in purchases of loans within the consumer concentration of the loan portfolio.

The increase in total liabilities from December31, 2024 to March31, 2025 was primarily due to an increase in interest-bearing deposits of $167.3 million. The increase in interest-bearing deposits was largely due to increases in time and money market deposits of $131.2 million and $52.2 million, respectively.

The increase in total shareholders� equity from December31, 2024 to March31, 2025 was primarily a result of net income recognized of $13.1 million and a $0.7 million increase in accumulated other comprehensive income, partially offset by $4.3 million in cash dividends paid during the period.

Net Interest Income and Net Interest Margin

The following is a summary of the components of net interest income for the periods indicated:

Three months ended
(in thousands)March 31,
2025
December 31,
2024
$ Change% Change
Interest and fee income$57,087$57,745$(658)(1.14)%
Interest expense23,11024,256(1,146)(4.72)%
Net interest income$33,977$33,489$4881.46%
Net interest margin3.45%3.36%
Three months ended
(in thousands)March 31,
2025
March 31,
2024
$ Change% Change
Interest and fee income$57,087$47,541$9,54620.08%
Interest expense23,11020,7972,31311.12%
Net interest income$33,977$26,744$7,23327.05%
Net interest margin3.45%3.14%


The following table shows the components of net interest income and net interest margin for the quarterly periods indicated:

Three months ended
March 31, 2025December 31, 2024March 31, 2024
(in thousands)Average
Balance
Interest
Income/
Expense
Yield/
Rate
Average
Balance
Interest
Income/
Expense
Yield/
Rate
Average
Balance
Interest
Income/
Expense
Yield/
Rate
Assets
Interest-earning deposits in banks$328,571$3,5754.41%$363,828$4,3354.74%$233,002$3,1025.35%
Investment securities100,4745812.34%103,9306072.33%109,1776532.41%
Loans held for investment and sale3,567,99252,9316.02%3,498,10952,8036.01%3,082,29043,7865.71%
Total interest-earning assets3,997,03757,0875.79%3,965,86757,7455.79%3,424,46947,5415.58%
Interest receivable and other assets, net93,54391,73693,983
Total assets$4,090,580$4,057,603$3,518,452
Liabilities and shareholders� equity
Interest-bearing transaction accounts$303,822$1,1121.48%$298,518$1,2491.66%$300,325$1,1261.51%
Savings accounts123,5997722.53%127,2988872.77%124,5618612.78%
Money market accounts1,540,87912,4353.27%1,596,11613,5203.37%1,410,26412,1553.47%
Time accounts706,5287,6294.38%617,5967,4384.79%429,5865,3695.03%
Subordinated notes and other borrowings73,9081,1626.37%73,8721,1626.25%82,7751,2866.25%
Total interest-bearing liabilities2,748,73623,1103.41%2,713,40024,2563.56%2,347,51120,7973.56%
Demand accounts910,954921,881842,105
Interest payable and other liabilities30,38929,23440,730
Shareholders� equity400,501393,088288,106
Total liabilities & shareholders� equity$4,090,580$4,057,603$3,518,452
Net interest spread2.38%2.23%2.02%
Net interest income/margin$33,9773.45%$33,4893.36%$26,7443.14%


Net interest income during the three months ended March31, 2025 increased $0.5 million, or 1.46%, to $34.0 million compared to $33.5 million during the three months ended December31, 2024. Net interest margin totaled 3.45% for the three months ended March31, 2025, an increase of nine basis points compared to the prior quarter. The increase in net interest income is primarily attributable to a $1.1 million decrease in interest expense, driven by a 15 basis point decrease in the average rate on interest-bearing deposits compared to the prior quarter. The decrease in interest expense was partially offset by a $0.7 million decrease in interest income, primarily due to a $35.3 million, or 9.69%, decrease in the average balance of interest-earning deposits in banks, combined with a 33 basis point decrease in the average yield on interest-earning deposits in banks.

As compared to the three months ended March31, 2024, net interest income increased $7.2 million, or 27.05%, to $34.0 million from $26.7 million. Net interest margin totaled 3.45% for the three months ended March31, 2025, an increase of 31 basis points compared to the same quarter of the prior year. The increase in net interest income is primarily attributable to an additional $9.1 million in loan interest income due to a $485.7 million, or 15.76%, increase in the average balance of loans and a 31 basis point improvement in the average yield on loans during the three months ended March31, 2025 compared to the same quarter of the prior year. The increase in interest income was partially offset by a $2.4 million increase in deposit interest expense compared to the same quarter of the prior year. The increase in deposit interest expense is primarily attributable to a $478.9 million, or 15.42%, increase in the average balance of deposits and a five basis point increase in the average cost of deposits during the three months ended March31, 2025 compared to the same quarter of the prior year.

Loans by Type

The following table provides loan balances, excluding deferred loan fees, by type as of March31, 2025:

(in thousands)
AG˹ٷ estate:
Commercial$2,941,201
Commercial land and development3,556
Commercial construction113,002
Residential construction5,747
Residential34,053
Farmland43,643
Commercial:
Secured170,525
Unsecured34,970
Consumer and other277,093
Net deferred loan fees(1,971)
Total loans held for investment$3,621,819


Interest-bearing Deposits

The following table provides interest-bearing deposit balances by type as of March31, 2025:

(in thousands)
Interest-bearing transaction accounts$295,633
Money market accounts1,577,473
Savings accounts128,210
Time accounts801,386
Total interest-bearing deposits$2,802,702


Asset Quality

Allowance for Credit Losses

At March31, 2025, the Company’s allowance for credit losses was $39.2 million, as compared to $37.8 million at December31, 2024. The $1.4 million increase in the allowance is due to a $2.2 million provision for credit losses recorded during the three months ended March31, 2025, partially offset by net charge-offs mainly attributable to commercial and industrial loans of $0.7 million, during the same period.

The Company’s ratio of nonperforming loans to loans held for investment remained at 0.05% from December31, 2024 to March31, 2025. Loans designated as watch decreased from $123.4 million to $112.0 million between December31, 2024 and March31, 2025. Loans designated as substandard increased from $2.6 million to $3.7 million between December31, 2024 and March31, 2025. There were no loans with doubtful risk grades at March31, 2025 or December31, 2024.

A summary of the allowance for credit losses by loan class is as follows:

March 31, 2025December 31, 2024
(in thousands)Amount% of TotalAmount% of Total
AG˹ٷ estate:
Commercial$27,02768.91%$25,86468.44%
Commercial land and development700.18%780.21%
Commercial construction2,2275.68%2,2686.00%
Residential construction780.20%640.17%
Residential2790.71%2700.71%
Farmland5981.52%6071.61%
30,27977.20%29,15177.14%
Commercial:
Secured5,90515.05%5,86615.52%
Unsecured4031.03%2780.74%
6,30816.08%6,14416.26%
Consumer and other2,6376.72%2,4966.60%
Total allowance for credit losses$39,224100.00%$37,791100.00%


The ratio of allowance for credit losses to loans held for investment was 1.08% at March31, 2025, as compared to 1.07% at December31, 2024.

Non-interest Income

The following table presents the key components of non-interest income for the periods indicated:

Three months ended
(in thousands)March 31,
2025
December 31,
2024
$ Change% Change
Service charges on deposit accounts$215$179$3620.11%
Gain on sale of loans125150(25)(16.67)%
Loan-related fees4484004812.00%
FHLB stock dividends331332(1)(0.30)%
Earnings on bank-owned life insurance161182(21)(11.54)%
Other income79423(344)(81.32)%
Total non-interest income$1,359$1,666$(307)(18.43)%


Service charges on deposit accounts.
The increase resulted primarily from individually immaterial increases in fees earned for services and products to support deposit accounts including, but not limited to, service charges, check order fees, and debit card income.

Gain on sale of loans. The decrease resulted from a decline in the volume and effective yield of loans sold. During the three months ended March31, 2025, approximately $1.7 million of loans were sold with an effective yield of 7.24%, as compared to approximately $2.0 million of loans sold with an effective yield of 7.60% during the three months ended December31, 2024.

Other income. The decrease resulted primarily from $0.3 million of income received on equity investments in venture-backed funds during the three months ended December31, 2024 which did not reoccur during the three months ended March31, 2025.

The following table presents the key components of non-interest income for the periods indicated:

Three months ended
(in thousands)March 31,
2025
March 31,
2024
$ Change% Change
Service charges on deposit accounts$215$188$2714.36%
Gain on sale of loans125369(244)(66.12)%
Loan-related fees448429194.43%
FHLB stock dividends331332(1)(0.30)%
Earnings on bank-owned life insurance1611421913.38%
Other income79373(294)(78.82)%
Total non-interest income$1,359$1,833$(474)(25.86)%


Gain on sale of loans.
The decrease related primarily to an overall decline in the volume of loans sold, partially offset by an improvement in the effective yield of loans sold. During the three months ended March31, 2025, approximately $1.7 million of loans were sold with an effective yield of 7.24%, as compared to approximately $5.2 million of loans sold with an effective yield of 7.08% during the three months ended March31, 2024.

Other income. The decrease related primarily to $0.3 million of income received on equity investments in venture-backed funds during the three months ended March31, 2024, which did not reoccur during the three months ended March31, 2025.

Non-interest Expense

The following table presents the key components of non-interest expense for the periods indicated:

Three months ended
(in thousands)March 31,
2025
December 31,
2024
$ Change% Change
Salaries and employee benefits$9,134$8,360$7749.26%
Occupancy and equipment637649(12)(1.85)%
Data processing and software1,4571,369886.43%
Federal Deposit Insurance Corporation (“FDIC�) insurance455440153.41%
Professional services91377413917.96%
Advertising and promotional522752(230)(30.59)%
Loan-related expenses319321(2)(0.62)%
Other operating expenses1,6081,823(215)(11.79)%
Total non-interest expense$15,045$14,488$5573.84%


Salaries and employee benefits.
The increase related primarily to: (i) a $0.9 million increase in salaries, benefits, and bonus expense; and (ii) a $0.3 million decrease in loan origination costs due to fewer loan originations, net of purchased consumer loans. The increase was partially offset by a $0.5 million decrease in commissions expense due to fewer loan originations, net of purchased consumer loans, period-over-period.

Professional services. The increase was primarily due to $0.1 million in fees paid for compensation consulting services, which did not occur in the three months ended December31, 2024.

Advertising and promotional. The decrease related primarily to a $0.1 million decrease in expenses related to sponsored events and partnerships and $0.1 million decrease related to business development expenses.

Other operating expenses. The decrease was primarily due to a $0.1 million decrease in director expenses, such as conferences and meetings, combined with individually immaterial decreases in expenses related to operations, including administrative and operational expenses.

The following table presents the key components of non-interest expense for the periods indicated:

Three months ended
(in thousands)March 31,
2025
March 31,
2024
$ Change% Change
Salaries and employee benefits$9,134$7,577$1,55720.55%
Occupancy and equipment637626111.76%
Data processing and software1,4571,15730025.93%
FDIC insurance4554005513.75%
Professional services91370720629.14%
Advertising and promotional5224606213.48%
Loan-related expenses319297227.41%
Other operating expenses1,6081,4921167.77%
Total non-interest expense$15,045$12,716$2,32918.32%


Salaries and employee benefits.
The increase related primarily to: (i) a $1.6 million increase in salaries, benefits, and bonus expense, mainly related to a 13.19% increase in headcount between March31, 2024 and March31, 2025; and (ii) a $0.1 million increase in commissions paid. This increase was partially offset by a $0.2 million increase in loan origination costs due to a greater number of loan originations, net of purchased consumer loans, period-over-period.

Data processing and software. The increase was primarily due to: (i) increased usage of our digital banking platform; (ii) higher transaction volumes related to the increased number of loan and deposit accounts; and (iii) an increased number of licenses required for new users on our loan origination and documentation system.

Professional services. The increase was primarily due to $0.1 million in fees paid for compensation consulting services and $0.1 million in consulting services relating to operations in San Francisco, neither of which occurred in the three months ended March31, 2024.

Other operating expenses. The increase was primarily due to individually immaterial increases in expenses related to operations, including administrative and operational expenses such as travel, subscriptions, and professional association memberships.

Provision for Income Taxes

Three months ended March31, 2025, as compared to three months ended December31, 2024

Provision for income taxes decreased to $5.3 million for the three months ended March31, 2025 from $6.1 million for the three months ended December31, 2024, which was primarily due to: (i) a slight decline in taxable income recognized during the three months ended March31, 2025; and (ii) a $0.6 million provision to return true-up recorded during the three months ended December31, 2024 related primarily to the timing of recognition of low income housing tax credits, which did not reoccur during the three months ended March31, 2025. The effective tax rates were 28.71% and 31.24% for the three months ended March31, 2025 and December31, 2024, respectively.

Three months ended March31, 2025, as compared to three months ended March31, 2024

Provision for income taxes increased by $1.0 million, or 21.94%, for the three months ended March31, 2025 compared to the three months ended March31, 2024. This increase was primarily driven by an increase in taxable income. The effective tax rates were 28.71% and 28.94% for the three months ended March31, 2025 and March31, 2024, respectively.

Webcast Details

Five Star Bancorp will host a live webcast for analysts and investors on Tuesday, April 29, 2025 at 1:00 PM ET (10:00 AM PT) to discuss its first quarter financial results. To view the live webcast, visit the “News & Events� section of the Company’s website under “Events� at https://investors.fivestarbank.com/news-events/events. The webcast will be archived on the Company’s website for a period of 90 days.

AboutFive Star Bancorp

Five Star is a bank holding company headquartered in Rancho Cordova, California. Five Star operates through its wholly owned banking subsidiary, Five Star Bank. The Bank has eight branches in Northern California.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent plans, estimates, objectives, goals, guidelines, expectations, intentions, projections, and statements of the Company’s beliefs concerning future events, business plans, objectives, expected operating results, and the assumptions upon which those statements are based. Forward-looking statements include without limitation, any statement that may predict, forecast, indicate, or imply future results, performance, or achievements, and are typically identified with words such as “may,� “could,� “should,� “will,� “would,� “believe,� “anticipate,� “estimate,� “expect,� “aim,� “intend,� “plan,� or words or phases of similar meaning. The Company cautions that the forward-looking statements are based largely on the Company’s expectations and are subject to a number of known and unknown risks and uncertainties that are subject to change based on factors which are, in many instances, beyond the Company’s control. Such forward-looking statements are based on various assumptions (some of which may be beyond the Company’s control) and are subject to risks and uncertainties, which change over time, and other factors, which could cause actual results to differ materially from those currently anticipated. New risks and uncertainties may emerge from time to time, and it is not possible for the Company to predict their occurrence or how they will affect the Company. If one or more of the factors affecting the Company’s forward-looking information and statements proves incorrect, then the Company’s actual results, performance, or achievements could differ materially from those expressed in, or implied by, forward-looking information and statements contained in this press release. Therefore, the Company cautions you not to place undue reliance on the Company’s forward-looking information and statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements are set forth in the Company’s Annual Report on Form 10-K for the year ended December31, 2024 under the section entitled “Risk Factors,� and other documents filed by the Company with the Securities and Exchange Commission from time to time.

The Company disclaims any duty to revise or update the forward-looking statements, whether written or oral, to reflect actual results or changes in the factors affecting the forward-looking statements, except as specifically required by law.


Condensed Financial Data (Unaudited)

Three months ended
(in thousands, except per share and share data)March 31,
2025
December 31,
2024
March 31,
2024
Revenue and Expense Data
Interest and fee income$57,087$57,745$47,541
Interest expense23,11024,25620,797
Net interest income33,97733,48926,744
Provision for credit losses1,9001,300900
Net interest income after provision32,07732,18925,844
Non-interest income:
Service charges on deposit accounts215179188
Gain on sale of loans125150369
Loan-related fees448400429
FHLB stock dividends331332332
Earnings on bank-owned life insurance161182142
Other income79423373
Total non-interest income1,3591,6661,833
Non-interest expense:
Salaries and employee benefits9,1348,3607,577
Occupancy and equipment637649626
Data processing and software1,4571,3691,157
FDIC insurance455440400
Professional services913774707
Advertising and promotional522752460
Loan-related expenses319321297
Other operating expenses1,6081,8231,492
Total non-interest expense15,04514,48812,716
Income before provision for income taxes18,39119,36714,961
Provision for income taxes5,2806,0504,330
Net income$13,111$13,317$10,631
Comprehensive Income
Net income$13,111$13,317$10,631
Net unrealized holding gain (loss) on securities available-for-sale during the period1,030(3,747)(955)
Less: Income tax expense (benefit) related to other comprehensive income (loss)305(1,108)(282)
Other comprehensive income (loss)725(2,639)(673)
Total comprehensive income$13,836$10,678$9,958
Share and Per Share Data
Earnings per common share:
Basic$0.62$0.63$0.62
Diluted0.620.630.62
Book value per share19.0618.6016.86
Tangible book value per share(1)19.0618.6016.86
Weighted average basic common shares outstanding21,209,88121,182,14317,190,867
Weighted average diluted common shares outstanding21,253,58821,235,31817,272,994
Shares outstanding at end of period21,329,23521,319,08317,353,251
Selected Financial Ratios
ROAA1.30%1.31%1.22%
ROAE13.28%13.48%14.84%
Net interest margin3.45%3.36%3.14%
Loan to deposit(2)97.01%99.38%105.37%

(1) See the section entitled “Non-GAAP Reconciliation (Unaudited)� for a reconciliation of this non-GAAP financial measure.
(2) Loan balance in loan to deposit ratio is total loans held for investment and sale at period end. Deposit balance in loan to deposit ratio is total deposits at period end.


(in thousands)March 31,
2025
December 31,
2024
March 31,
2024
Balance Sheet Data
Cash and due from financial institutions$42,473$33,882$29,750
Interest-bearing deposits in banks410,098318,461155,575
Time deposits in banks4,0244,1215,878
Securities - available-for-sale, at fair value97,11198,194105,006
Securities - held-to-maturity, at amortized cost2,5852,7203,000
Loans held for sale2,6693,24710,243
Loans held for investment3,621,8193,532,6863,104,130
Allowance for credit losses(39,224)(37,791)(34,653)
Loans held for investment, net of allowance for credit losses3,582,5953,494,8953,069,477
FHLB stock15,00015,00015,000
Operating leases, right-of-use asset5,9446,2456,932
Premises and equipment, net1,5241,5841,569
Bank-owned life insurance23,24619,37518,872
Interest receivable and other assets57,78855,55455,058
Total assets$4,245,057$4,053,278$3,476,360
Non-interest-bearing deposits$933,652$922,629$817,388
Interest-bearing deposits2,802,7022,635,3652,138,384
Total deposits3,736,3543,557,9942,955,772
Subordinated notes, net73,93273,89573,786
Other borrowings120,000
Operating lease liability6,5916,8577,320
Interest payable and other liabilities21,72917,90826,902
Total liabilities3,838,6063,656,6543,183,780
Common stock302,788302,531220,804
Retained earnings115,309106,46484,216
Accumulated other comprehensive loss, net of taxes(11,646)(12,371)(12,440)
Total shareholders� equity406,451396,624292,580
Total liabilities and shareholders� equity$4,245,057$4,053,278$3,476,360
Quarterly Average Balance Data
Average loans held for investment and sale$3,567,992$3,498,109$3,082,290
Average interest-earning assets3,997,0373,965,8673,424,469
Average total assets4,090,5804,057,6033,518,452
Average deposits3,585,7823,561,4093,106,841
Average total equity400,501393,088288,106
Credit Quality
Allowance for credit losses to nonperforming loans2,222.32%2,101.78%1,806.73%
Nonperforming loans to loans held for investment0.05%0.05%0.06%
Nonperforming assets to total assets0.04%0.05%0.06%
Nonperforming loans plus performing loan modifications to loans held for investment0.05%0.05%0.06%
Capital Ratios
Total shareholders� equity to total assets9.57%9.79%8.42%
Tangible shareholders� equity to tangible assets(1)9.57%9.79%8.42%
Total capital (to risk-weighted assets)13.97%13.99%12.34%
Tier 1 capital (to risk-weighted assets)11.00%11.02%9.13%
Common equity Tier 1 capital (to risk-weighted assets)11.00%11.02%9.13%
Tier 1 leverage ratio10.17%10.05%8.63%

(1) See the section entitled “Non-GAAP Reconciliation (Unaudited)� for a reconciliation of this non-GAAP financial measure.


Non-GAAP Reconciliation (Unaudited)

The Company uses financial information in its analysis of the Company’s performance that is not in conformity with accounting principles generally accepted in the United States of America (“GAAP�). The Company believes that these non-GAAP financial measures provide useful information to management and investors that is supplementary to the Company’s financial condition, results of operations, and cash flows computed in accordance with GAAP. However, the Company acknowledges that its non-GAAP financial measures have a number of limitations. As such, investors should not view these disclosures as a substitute for results determined in accordance with GAAP. Additionally, these non-GAAP measures are not necessarily comparable to non-GAAP financial measures that other banking companies use. Other banking companies may use names similar to those the Company uses for the non-GAAP financial measures the Company discloses, but may calculate them differently. Investors should understand how the Company and other companies each calculate their non-GAAP financial measures when making comparisons.

Tangible shareholders� equity to tangible assets is defined as total equity less goodwill and other intangible assets, divided by total assets less goodwill and other intangible assets. The most directly comparable GAAP financial measure is total shareholders� equity to total assets. Management believes that tangible shareholders� equity to tangible assets is a useful financial measure because it enables management, investors, and others to assess the Company’s financial health based on tangible capital. We had no goodwill or other intangible assets at the end of any period indicated. As a result, tangible shareholders� equity to tangible assets is the same as total shareholders� equity to total assets at the end of each of the periods indicated.

Tangible book value per share is defined as total shareholders� equity less goodwill and other intangible assets, divided by the outstanding number of common shares at the end of the period. The most directly comparable GAAP financial measure is book value per share. Management believes that tangible book value per share is a useful financial measure because it enables management, investors, and others to assess the Company’s value and use of equity. We had no goodwill or other intangible assets at the end of any period indicated. As a result, tangible book value per share is the same as book value per share at the end of each of the periods indicated.

Pre-tax, pre-provision income is defined as pre-tax income plus provision for credit losses. The most directly comparable GAAP financial measure is pre-tax income. Management believes that pre-tax, pre-provision income is a useful financial measure because it enables management, investors, and others to assess the Company’s ability to generate operating profit and capital.

The following reconciliation table provides a more detailed analysis of this non-GAAP financial measure:

Three months ended
(in thousands)March 31,
2025
December 31,
2024
March 31,
2024
Pre-tax, pre-provision income
Pre-tax income$18,391$19,367$14,961
Add: provision for credit losses1,9001,300900
Pre-tax, pre-provision income$20,291$20,667$15,861


Investor Contact:
Heather C. Luck, Chief Financial Officer
Five Star Bancorp
(916) 626-5008
[email protected]

Media Contact:
Shelley R. Wetton, Chief Marketing Officer
Five Star Bancorp
(916) 284-7827
[email protected]


FAQ

What was Five Star Bancorp (FSBC) earnings per share in Q1 2025?

Five Star Bancorp reported diluted earnings per share of $0.62 for Q1 2025, consistent with Q1 2024 but slightly down from $0.63 in Q4 2024.

How much did Five Star Bancorp (FSBC) grow its deposits in Q1 2025?

FSBC increased total deposits by $178.4 million (5.01%) in Q1 2025, with wholesale deposits growing by $130.0 million (23.21%) and non-wholesale deposits increasing by $48.4 million (1.61%).

What is Five Star Bancorp's (FSBC) dividend payment for Q1 2025?

Five Star Bancorp declared a cash dividend of $0.20 per share, payable on May 12, 2025, to shareholders of record as of May 5, 2025.

How did Five Star Bancorp's (FSBC) net interest margin perform in Q1 2025?

FSBC's net interest margin increased to 3.45% in Q1 2025, up from 3.36% in Q4 2024 and 3.14% in Q1 2024, showing consistent improvement.

What is Five Star Bancorp's (FSBC) loan growth rate in Q1 2025?

FSBC's total loans held for investment increased by $89.1 million or 2.52% (10.09% annualized) during Q1 2025, reaching $3.62 billion.

How much cash and liquidity does Five Star Bancorp (FSBC) maintain as of Q1 2025?

As of March 31, 2025, FSBC maintained $452.6 million in cash and cash equivalents, representing 12.11% of total deposits, with total liquidity of approximately $2.0 billion.
FIVE STAR BANCORP

NASDAQ:FSBC

FSBC Rankings

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FSBC Stock Data

635.70M
15.29M
26.61%
55.91%
0.85%
Banks - Regional
State Commercial Banks
United States
RANCHO CORDOVA