Expanded vertical reflects Five Star Bank’s commitment to supporting America’s food supply chain through trusted, relationship-driven financial servicesRANCHO CORDOVA, Calif., May 05, 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, has expanded its food and agribusiness vertical to serve clients nationwide. The vertical, now called Food, Agribusiness & Diversified Industries ...

Safe Harbor Statement and Disclaimer Forward-Looking Statements In this presentation, "we," "our," "us," "Five Star," or "the Company" refers to Five Star Bancorp, a California corporation, and our consolidated subsidiaries, including Five Star Bank, a California state- chartered bank, unless the context indicates that we refer only to the parent company, Five Star Bancorp. This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These ...

Financial Data and Key Metrics Changes - Net income for Q1 2025 was $13.1 million, with a return on average assets of 1.3% and return on average equity of 13.28% [11] - Total loans held for investment increased by $89.1 million or 2.52% from the prior quarter, with average loan yields rising by one basis point to 6.02% [4][11] - Net interest margin improved by nine basis points to 3.45% from 3.36% in the previous quarter, primarily due to lower average cost of deposits [11] - Non-interest income decreased to $1.4 million from $1.7 million in the previous quarter, mainly due to reduced income from equity investments [12] Business Line Data and Key Metrics Changes - The commercial real estate segment of the loan portfolio increased from 80.75% to 81.11% quarter over quarter, indicating a strong focus on this area [5] - Loan originations for the first quarter were $259.3 million, while payoffs and pay downs were $65.6 million and $104.6 million respectively [5] - Non-performing loans remained stable at 0.05% of loans held for investment [6] Market Data and Key Metrics Changes - Deposits increased by $178.4 million or 5% compared to the previous quarter, driven by increases in non-interest bearing demand and various types of interest-bearing deposits [6][9] - Non-interest bearing deposits as a percentage of total deposits decreased slightly to 24.99% from 25.93% in the prior quarter [8] - Wholesale deposits increased by $130 million or 23.21% quarter over quarter, while non-wholesale deposits rose by $48.4 million or 1.61% [9] Company Strategy and Development Direction - The company is focused on organic growth and disciplined business practices, aiming to benefit customers, employees, community, and shareholders [14] - Expansion into the San Francisco Bay Area is a key strategic initiative, supported by the addition of seasoned professionals [4][14] - The company aims to maintain a fortress balance sheet with a target of 10% in cash and a loan-to-deposit ratio of less than 100% [23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's resilience and ability to adapt to changing economic conditions, projecting loan growth of 10% to 12% for the remainder of the year [20][21] - Concerns regarding tariffs and economic slowdown were acknowledged, but management believes the bank is well-positioned due to the composition of its loan portfolio [30] - The company remains optimistic about the demand for loans, particularly in the mobile home park and RV park sectors, which have historically performed well [30] Other Important Information - The company declared a cash dividend of $0.20 per share, expected to be paid on May 12, 2025 [10] - Five Star Bancorp was ranked third on the S&P Global Market Intelligence List of best-performing community banks in the nation for banks with assets between $3 billion and $10 billion [64] Q&A Session Summary Question: Loan growth outlook for the year - Management is bullish on loan growth, projecting 10% to 12% for the rest of the year, supported by a strong sales force [20][21] Question: Reason for higher cost wholesale funding - Management indicated that core deposit growth is expected to match loan growth, and they do not anticipate additional wholesale funding [22][23] Question: Impact of tariffs on RV manufactured housing business - Management feels comfortable with their portfolio's performance in the face of tariffs, citing historical resilience during economic downturns [30] Question: Changes in allowance for loan losses - The increase in allowance was driven by portfolio growth and revised economic forecasts from the FOMC [36][37] Question: Loan pricing competition - Management acknowledged competitive pricing but remains satisfied with their current loan spreads [40][41] Question: Small business borrowers' response to economic uncertainty - Management noted that small business borrowers face high costs of borrowing, but they maintain a high level of reserves against this book [55][57]

Group 1 - Five Star Bancorp (FSBC) reported quarterly earnings of $0.62 per share, exceeding the Zacks Consensus Estimate of $0.61 per share, with an earnings surprise of 1.64% [1] - The company posted revenues of $35.34 million for the quarter ended March 2025, which was below the Zacks Consensus Estimate by 0.18%, compared to $28.58 million in the same quarter last year [2] - Over the last four quarters, Five Star Bancorp has surpassed consensus EPS estimates two times and topped consensus revenue estimates once [2] Group 2 - The stock has underperformed the market, losing about 10.3% since the beginning of the year, while the S&P 500 declined by 6.1% [3] - The current consensus EPS estimate for the upcoming quarter is $0.66 on revenues of $36.9 million, and for the current fiscal year, it is $2.62 on revenues of $150.6 million [7] - The Zacks Industry Rank for Banks - West is currently in the bottom 33% of over 250 Zacks industries, indicating potential challenges for the stock's performance [8]

"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 dif erentiated 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 March 31, 2025 our San Francisco B ...

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 March 31, 2025, as compared to $13.3 million for the three months ended December 31, 2024 and $10.6 million for the three months ended March 31, 2024. First Quarter Highlights Performance and operating highlights ...

RANCHO CORDOVA, Calif., April 15, 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"), expects to report its financial results for the quarter ended March 31, 2025, after the stock market closes on Monday, April 28, 2025. Management will host a live webcast for analysts and investors to review this information at 1:00 PM ET (10:00 AM PT) on April 29, 2025. The live we ...

RANCHO CORDOVA, Calif., April 15, 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”), expects to report its financial results for the quarter ended March 31, 2025, after the stock market closes on Monday, April 28, 2025. Management will host a live webcast for analysts and investors to review this information at 1:00 PM ET (10:00 AM PT) on April 29, 2025. The live w ...

Financial Overview - As of December 31, 2024, Five Star Bancorp had total assets of $4.1 billion, total loans held for investment of $3.5 billion, and total deposits of $3.6 billion[20]. - Total deposits as of December 31, 2024, included $922.6 million in non-interest-bearing deposits, representing 25.61% of total deposits[39]. - The company's 49 largest deposit relationships, each over $10 million, totaled $1.8 billion, or 50.35% of total deposits as of December 31, 2024[44]. - The investment portfolio had a carrying value of $100.9 million, representing 2.49% of total assets, with an average effective yield of 2.09%[45]. - The allowance for credit losses was $37.8 million as of December 31, 2024, reflecting management's judgment of probable losses in the loan portfolio[181]. Loan Portfolio - As of December 31, 2024, commercial real estate loans totaled $2.9 billion, representing 80.75% of total loans before deferred fees[27]. - The company had $115.2 million in commercial land and construction loans, accounting for 3.26% of total loans before deferred fees as of December 31, 2024[28]. - As of December 31, 2024, the total commercial SBA portfolio held for investment was $42.8 million, representing 1.21% of total loans before deferred fees[32]. - The company's 30 largest borrowing relationships totaled approximately $1.4 billion, representing 38.68% of total loans held for investment[179]. - Commercial real estate loans represent a significant portion of the loan portfolio and involve higher credit risks, particularly during economic downturns[153]. Regulatory Environment - The company is subject to comprehensive supervision and regulation by federal and state banking laws, which may impact its growth and operations[72]. - The Company reported a common equity Tier 1 capital ratio of 11.02% as of December 31, 2024, exceeding the minimum requirement of 7.00%[93]. - The Bank's Tier 1 leverage ratio was 11.50% as of December 31, 2024, indicating it was "well-capitalized" under prompt corrective action provisions[93]. - The Company and the Bank are required to maintain a total capital to risk-weighted assets ratio of at least 10.50%[90]. - The Federal Reserve requires bank holding companies to obtain prior approval for acquisitions that would result in owning 5% or more of a bank's voting shares[78]. Risk Management - The board of directors oversees risk management processes, including quarterly assessments of various risk exposures[56][57]. - The Bank is subject to regular examinations by regulatory agencies, which can impact its operations and growth[99]. - The company is subject to various risks, including credit, market, liquidity, and compliance risks, which could adversely affect its financial condition and results of operations[139]. - The company may not adequately measure and limit credit risk, which could adversely affect profitability and result in increased provisions for credit losses[151]. - The company faces risks from rapid technological changes in the financial services industry, which could adversely affect its competitive position and profitability[147]. Market Conditions - Interest rate changes significantly impact the Bank's net interest income, with variable rate liabilities repricing faster than variable rate assets as of December 31, 2024[142]. - The Federal Reserve has indicated a potential decrease in the federal funds rate target range in 2025, which may affect the Bank's profitability[143]. - The Bank's operations are concentrated in Northern California, making it sensitive to local economic downturns[137]. - The Bank faces increasing competition from traditional and new financial services providers, which may pressure loan and deposit pricing[145]. - The rapid rise in interest rates during 2022 and 2023 has resulted in volatility and uncertainty in the banking system, impacting the company's financial condition[171]. Corporate Governance and Employee Relations - The company has 205 full-time employees and five part-time employees as of December 31, 2024, with no labor disagreements reported[61]. - Five Star provides a competitive compensation and benefits program, including annual bonuses and a 401(k) plan with employer matching contributions[62]. - Significant shareholders own approximately 34.47% of the company's common stock, allowing them to influence corporate activities and decisions[213]. - The company is classified as an "emerging growth company," allowing it to utilize reduced disclosure requirements, which may affect its attractiveness to investors[210]. - The company may not pay dividends in the future, and its ability to do so is subject to federal regulatory considerations[215]. Technology and Innovation - The company has made significant investments in information technology systems to enhance capabilities, improve customer experience, and support future growth[49]. - The majority of the company's systems, including electronic funds transfer and online banking services, are hosted by third-party service providers, ensuring scalability for growth[52]. - The company anticipates that model-derived insights will be used more widely in decision-making in the future, enhancing operational efficiency[148]. - The company is dependent on data and modeling for decision-making and regulatory compliance, with potential risks from faulty data or flawed quantitative approaches[148]. - The company may face increased costs and risks associated with foreclosure processes due to changes in consumer protection laws[161]. Environmental, Social, and Governance (ESG) - The company is committed to environmental, social, and governance (ESG) strategies, focusing on reducing its carbon footprint and supporting community initiatives[65][66]. - Federal, state, and local consumer lending laws may increase the company's risk of liability and compliance costs[176]. - The company is required to comply with anti-money laundering regulations, with potential penalties for deficiencies in its compliance program[206]. - The Bank received a "Satisfactory" rating in its most recent CRA evaluation, covering activities from 2021 to July 22, 2024[128]. - The final rule amending CRA regulations will apply to large banks, including the Bank, starting January 1, 2026, with new data reporting requirements effective January 1, 2027[130].

Financial Data and Key Metrics Changes - Net income for Q4 2024 was $13.3 million, with a return on average assets of 1.31% and return on average equity of 13.48% [19] - For the year 2024, net income totaled $45.7 million, with a return on average assets of 1.23% and return on average equity of 12.72% [19] - The net interest margin for Q4 2024 was 3.36%, slightly down from 3.37% in the prior quarter, while the annual net interest margin was 3.32%, down from 3.42% in 2023 [21] - Non-interest income increased to $1.7 million in Q4 from $1.4 million in the previous quarter, but decreased to $6.5 million for the year from $7.5 million in 2023 [21] Business Line Data and Key Metrics Changes - Loans held for investment increased by $72.1 million or 2.08% from the prior quarter and $451 million or 14.63% year-over-year [8] - The commercial real estate concentration decreased from 86.76% as of December 31, 2023, to 80.75% as of December 31, 2024, while consumer and other loan concentrations increased from 1.2% to 7.9% year-over-year [9] - Loan originations in Q4 were $263.3 million, with total loan originations for 2024 at $1.1 billion [10] Market Data and Key Metrics Changes - Deposits increased by $158 million or 4.65% in Q4 and by $531.1 million or 17.55% for the year [12] - Non-interest-bearing deposits as a percentage of total deposits decreased to 25.93% at the end of Q4 from 26.67% in the prior quarter [13] - Wholesale deposits increased by $150 million or 36.59% quarter-over-quarter, while non-wholesale deposits increased by $8 million or 0.27% [16] Company Strategy and Development Direction - The company is focused on organic growth and disciplined business practices, targeting an annual growth rate of about 8% for both deposits and loans in 2025 [36][42] - Continued expansion in the San Francisco market is a priority, with plans for further geographic growth in the East Bay [62] - The company aims to maintain a $300 million book with BHG loans, indicating a strategy to remain active in loan purchases [79] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's resilience and long-term strategy, emphasizing a commitment to customer-centric services [24] - The competitive landscape for core deposits remains challenging, with management noting the need for active engagement to attract deposits [35] - Management anticipates slight margin expansion in 2025, driven by investments made in personnel and technology [41][42] Other Important Information - The company maintained a strong asset quality, with non-performing loans at 0.05% of loans held for investment [11] - The allowance for credit losses totaled $37.8 million, with a provision of $1.3 million recorded in Q4 [11] - The company received multiple awards and recognitions in 2024, highlighting its strong performance and community engagement [94] Q&A Session Summary Question: Insights on deposit growth and duration - Management noted that deposit growth was primarily on the wholesale side, with short-term CDs set to reprice every three months, allowing for potential benefits from future rate cuts [28][31] Question: Outlook for organic core deposit generation - Management acknowledged the competitive nature of attracting core deposits but targeted an 8% annual growth rate for 2025 [36] Question: Expense growth expectations for 2025 - Management indicated that expenses in the first half of 2025 would likely align with Q4 2024 levels, with ongoing investments in personnel and technology [83] Question: Trends in loan originations and payoffs - Management highlighted that loan growth is driven by active business development efforts, while payoffs are a natural progression in the commercial real estate portfolio [56][57] Question: Market conditions in the Bay Area - Management expressed optimism about the Bay Area market, noting ongoing expansion efforts and the potential for continued market share gains [62]