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]

Investor Presentation Fourth Quarter and Year End 2024 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 ...

Core Viewpoint - Five Star Bancorp (FSBC) reported quarterly earnings of $0.63 per share, exceeding the Zacks Consensus Estimate of $0.59 per share, with a year-over-year comparison showing no change in earnings per share [1][2] Financial Performance - The company achieved revenues of $35.16 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 4.32%, compared to $28.61 million in the same quarter last year [2] - Over the last four quarters, Five Star Bancorp has exceeded consensus EPS estimates two times and topped revenue estimates once [2] Stock Performance - Since the beginning of the year, Five Star Bancorp shares have declined by approximately 0.8%, while the S&P 500 has increased by 3.7% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.59 on revenues of $34.7 million, and for the current fiscal year, it is $2.63 on revenues of $148.4 million [7] - The trend of estimate revisions for Five Star Bancorp is mixed, which may change following the recent earnings report [6] Industry Context - The Banks - West industry, to which Five Star Bancorp belongs, is currently ranked in the top 36% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Financial Performance - Net income for the three months ended December 31, 2024, was $13.3 million, an increase of 22.1% from $10.9 million for the three months ended September 30, 2024, and a 23.1% increase from $10.8 million for the three months ended December 31, 2023[2][10][11]. - Net income for the year ended December 31, 2024, was $45,671 thousand, a decrease of $2,063 thousand or 4.32% compared to the previous year[14]. - Net income for the three months ended December 31, 2024, was $13.3 million, representing a 21.7% increase from $10.9 million in the previous quarter and a 23.3% increase from $10.8 million year-over-year[57]. - Basic and diluted earnings per share fell to $2.26 in 2024 from $2.78 in 2023, a decrease of 18.7%[59]. Deposits and Loans - Total deposits increased by $158.0 million, or 4.65%, during the three months ended December 31, 2024, with non-wholesale deposits increasing by $8.0 million (0.27%) and wholesale deposits increasing by $150.0 million (36.59%) compared to the previous quarter[7]. - Total deposits increased by $531,098 thousand or 17.55% to $3,557,994 thousand as of December 31, 2024[15]. - Loans held for investment increased by $72.1 million (2.08%) from September 30, 2024, and by $450.97 million (14.63%) from December 31, 2023, reaching $3.53 billion[12]. - Total loans held for investment rose by $450,967 thousand or 14.63% to $3,532,686 thousand as of December 31, 2024[15]. - Average loans held for investment and sale increased to $3,498,109,000 in 2024 from $3,055,042,000 in 2023, a growth of 14.5%[61]. Interest Income and Margin - The Company's net interest margin for the three months ended December 31, 2024, was 3.36%, slightly down from 3.37% in the previous quarter but up from 3.19% in the same quarter of the previous year[7]. - Net interest income for the three months ended December 31, 2024, was $33,489 thousand, an increase of $3,103 thousand or 10.21% from the previous quarter[13]. - Net interest income for the three months ended December 31, 2024, increased by $3.1 million, or 10.21%, to $33.5 million compared to $30.4 million for the prior quarter[23]. - Interest and fee income increased to $206,951,000 in 2024 from $174,382,000 in 2023, representing a growth of 18.7%[59]. - Net interest income after provision for credit losses rose to $112,761,000 in 2024, compared to $106,880,000 in 2023, an increase of 5.3%[59]. Credit Losses and Allowance - The provision for credit losses decreased by $1.5 million during the three months ended December 31, 2024, reflecting adjustments based on economic trends[10]. - Provision for credit losses decreased by $1,450 thousand or 52.73% from the previous quarter, totaling $1,300 thousand for the three months ended December 31, 2024[13]. - The allowance for credit losses increased to $37.8 million from $34.4 million year-over-year, driven by a $7.5 million provision for credit losses[29]. - The total allowance for credit losses increased to $37,791,000 at December 31, 2024, compared to $34,431,000 at December 31, 2023, reflecting a ratio of 1.07% to loans held for investment[31]. Non-Interest Income and Expenses - Non-interest income for the three months ended December 31, 2024, was $1,666,000, a 20.64% increase from $1,381,000 in the previous quarter[32]. - Total non-interest expense for the three months ended December 31, 2024, was $14,488,000, a 5.17% increase from $13,776,000 in the previous quarter[41]. - Total non-interest expense increased to $54,493,000 in 2024 from $47,775,000 in 2023, reflecting a rise of 14.4%[59]. - Salaries and employee benefits increased to $31,709,000 for the year ended December 31, 2024, up 17.02% from $27,097,000 in 2023[45]. Capital and Ratios - The common equity Tier 1 capital ratio was 11.02% as of December 31, 2024, indicating the Company continues to meet "well-capitalized" regulatory requirements[7]. - The total capital ratio was 13.99% for 2024, slightly up from 13.94% in 2023[61]. - The return on average assets (ROAA) improved to 1.31%, up from 1.18% in the previous quarter and 1.26% year-over-year[58]. - The return on average assets (ROAA) decreased to 1.23% in 2024 from 1.44% in 2023[60]. Future Plans and Events - The company plans to host a live webcast on January 28, 2025, to discuss its fourth quarter and annual financial results[52]. - The company plans to expand into the San Francisco Bay Area, contributing to increased salaries and employee benefits[43].

Core Points - Five Star Bancorp reported a net income of $13.3 million for Q4 2024, an increase from $10.9 million in Q3 2024 and $10.8 million in Q4 2023 [1][9][10] - For the year ended December 31, 2024, net income was $45.7 million, down from $47.7 million in 2023 [1][11] - The company experienced growth in loans and deposits, with total loans held for investment increasing by 14.63% year-over-year [16][19] Financial Performance - Return on average assets (ROAA) for Q4 2024 was 1.31%, up from 1.18% in Q3 2024 and 1.26% in Q4 2023 [2][15] - Return on average equity (ROAE) for Q4 2024 was 13.48%, compared to 11.31% in Q3 2024 and 15.45% in Q4 2023 [2][15] - Net interest income for Q4 2024 increased by 10.21% to $33.5 million compared to Q3 2024 [12][21] - The efficiency ratio improved to 41.21% in Q4 2024 from 43.37% in Q3 2024 [7][15] Loan and Deposit Growth - Total deposits increased by $158.0 million, or 4.65%, in Q4 2024, with non-wholesale deposits rising by 0.27% and wholesale deposits increasing by 36.59% [6][7] - The San Francisco Bay Area team contributed $229.5 million in deposits from June 5, 2023, to December 31, 2024 [3][6] - Total loans held for investment reached $3.53 billion as of December 31, 2024, up from $3.08 billion a year earlier [16][19] Recognition and Awards - Five Star Bank received multiple accolades in 2024, including a Super Premier rating from Findley Reports and a 5-star rating from Bauer Financial [4][5] - The company was recognized as one of S&P Global Market Intelligence's Top 20 Best-Performing Community Banks in the nation [4] Balance Sheet Highlights - Total assets increased by 12.81% to $4.05 billion as of December 31, 2024, compared to $3.59 billion a year earlier [16] - Total liabilities rose by 10.56% to $3.66 billion, primarily due to a $531.1 million increase in deposits [17][19] - Total shareholders' equity increased by 38.79% to $396.6 million, driven by net income and additional common stock issued [20]

Core Points - Five Star Bancorp's President and CEO, James Beckwith, has been elected to the California Chamber of Commerce Board of Directors for a three-year term starting January 1, 2025 [1][2][3] - The CalChamber aims to advocate for policies that strengthen California's economy and support job creation [2][3] - Beckwith's involvement is expected to enhance the business perspective in discussions on laws and regulations affecting the job climate in California [4] Company Overview - Five Star Bancorp is a bank holding company based in Rancho Cordova, California, operating through its wholly owned subsidiary, Five Star Bank, which has eight branches in Northern California [5]

Core Points - Five Star Bancorp's President and CEO, James Beckwith, has been elected to the California Chamber of Commerce (CalChamber) Board of Directors for a three-year term starting January 1, 2025 [1][4] - CalChamber is the largest advocate for business interests in California, working at both state and federal levels to promote policies that strengthen the economy [3] - Beckwith's election is expected to enhance CalChamber's efforts to improve the California economy and support job creation [2][3] Company Overview - Five Star Bancorp is a bank holding company based in Rancho Cordova, California, operating through its wholly owned subsidiary, Five Star Bank, which has eight branches in Northern California [5] - The company aims to engage in discussions on business-friendly policies that influence laws and regulations affecting the job market [4]

Core Viewpoint - Five Star Bancorp has declared a cash dividend of $0.20 per share on its voting common stock, which will be paid on February 10, 2025, to shareholders of record as of February 3, 2025 [1] Company Overview - Five Star Bancorp is a bank holding company headquartered in Rancho Cordova, California, operating through its wholly owned banking subsidiary, Five Star Bank [2] - Five Star Bank has eight branches located in Northern California [2]

Core Points - Five Star Bancorp is set to report its financial results for the quarter and year ended December 31, 2024, on January 27, 2025, after market close [1] - A live webcast for analysts and investors will take place on January 28, 2025, at 1:00 PM ET to discuss the financial results [2] - Five Star Bancorp is headquartered in Rancho Cordova, California, and operates through its wholly owned banking subsidiary, Five Star Bank, which has eight branches in Northern California [3]