Financial Data and Key Metrics Changes - In 2025, Five Star Bancorp achieved a year-over-year growth in total loans held for investments of 15%, total deposit growth of 18%, net income growth of 35%, and an increase in earnings per share of 28% to $2.90 per share [5][6] - Financial highlights for the fourth quarter include $17.6 million in net income, earnings per share of $0.83, return on average assets of 1.50%, and return on average equity of 15.97% [5] - The net interest margin expanded 10 basis points to 3.66%, and the total cost of deposits declined by 21 basis points to 2.23% [5][6] Business Line Data and Key Metrics Changes - Loans held for investment grew by $187.7 million, or 19% on an annualized basis in the fourth quarter, and total deposits increased by $97.6 million, or 10% on an annualized basis [6] - The commercial real estate portfolio saw significant growth, increasing by $161.4 million in the fourth quarter and $448.5 million for the year [7] Market Data and Key Metrics Changes - The company expanded its footprint in the San Francisco Bay Area through the opening of a new office in Walnut Creek, contributing to overall growth [4] - Non-wholesale deposits increased by $139.1 million during the fourth quarter and $738.1 million during the year, indicating strong market demand [8] Company Strategy and Development Direction - The company is committed to further developing all business verticals while expanding into new markets, blending technology with personalized service [16] - Five Star Bancorp aims to maintain a high-tech and high-touch approach to business, focusing on innovation and service excellence [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to achieve a 10% growth rate in both loans and deposits for 2026, despite acknowledging the challenges of maintaining such growth [24][25] - The competitive landscape for deposits is described as very competitive, with a focus on core deposit growth as a competitive advantage [22][23] Other Important Information - The company successfully reduced its balance of wholesale deposits by $95 million, or 17%, in 2025, while growing non-wholesale deposits significantly [6][8] - The efficiency ratio was reported at 40.62% for the fourth quarter and 41.03% for the year, reflecting ongoing investments in business development [5][13] Q&A Session Summary Question: Drivers behind the acceleration in loan originations - Management noted that all verticals performed well, with significant contributions from the food and agribusiness sector, particularly during the fourth quarter [21] Question: Competitive landscape for deposits - Management highlighted the competitive nature of the deposit market and emphasized the importance of their business development team in driving core deposit growth [22][23] Question: Expense growth outlook for 2026 - Management indicated that expenses are expected to grow at a rate of 148%-155% of total assets, accommodating growth and regular maintenance [35][36] Question: Capital comfortability and outlook - Management expressed confidence in maintaining capital positions with a 10% growth rate, while acknowledging that higher growth rates would necessitate a capital event [44][46]

Financial Data and Key Metrics Changes - In 2025, Five Star Bancorp achieved a year-over-year growth in total loans held for investments of 15%, total deposit growth of 18%, net income growth of 35%, and an increase in earnings per share of 28% to $2.90 per share [5][6] - Financial highlights for the fourth quarter include $17.6 million in net income, earnings per share of $0.83, return on average assets of 1.50%, and return on average equity of 15.97% [5][6] - The net interest margin expanded 10 basis points to 3.66%, and the total cost of deposits declined by 21 basis points to 2.23% [5][6] Business Line Data and Key Metrics Changes - Loans held for investment grew by $187.7 million, or 19% on an annualized basis, in the fourth quarter, while total deposits increased by $97.6 million, or 10% on an annualized basis [6] - The commercial real estate portfolio saw significant growth, increasing by $161.4 million in the fourth quarter and $448.5 million for the year [7] Market Data and Key Metrics Changes - Non-wholesale deposits increased by $139.1 million during the fourth quarter and $738.1 million during the year, while wholesale deposits decreased by $41.4 million during the quarter and $95 million during the year [8][9] - Total non-interest-bearing deposits accounted for 26% of total deposits, with approximately 61% of deposit relationships totaling more than $5 million [9] Company Strategy and Development Direction - The company plans to further develop all business verticals while expanding into new markets, emphasizing a blend of technology and personalized service [16] - Five Star Bancorp aims to maintain a focus on innovation and service excellence, with a commitment to building deep, meaningful relationships with clients [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth pipeline for 2026, indicating that while growth may not match the previous year, a target of 10% growth on both sides of the balance sheet is achievable [24][25] - The competitive landscape for deposits is described as very competitive, with a focus on core deposit growth as a competitive advantage [23][24] Other Important Information - The company successfully reduced its balance of wholesale deposits by $95 million, or 17%, in 2025, while growing non-wholesale deposits by 25% [6][7] - A cash dividend of $0.25 per share was announced, marking the first increase since April 2023 [7] Q&A Session Summary Question: Drivers behind the acceleration in loan originations - Management noted strong performance across all verticals, particularly in food and agriculture, with seasonal factors contributing to growth [21] Question: Competitive landscape for deposits - Management acknowledged a highly competitive environment for core deposits but emphasized their business development team's effectiveness in attracting core relationships [22][23] Question: Expense growth outlook - Management indicated that expenses are expected to grow at a rate of 1.48%-1.55% of total assets in 2026, accommodating growth and regular maintenance [35][36] Question: Capital comfortability and outlook - Management expressed confidence in maintaining capital positions with a 10% growth rate, but noted that higher growth rates would necessitate a capital event in the future [44][45]

Financial Data and Key Metrics Changes - In 2025, Five Star Bancorp achieved a year-over-year growth in total loans held for investments of 15%, total deposit growth of 18%, net income growth of 35%, and an increase in earnings per share of 28% to $2.90 per share [5][6] - Financial highlights for Q4 included net income of $17.6 million, earnings per share of $0.83, return on average assets of 1.50%, and return on average equity of 15.97% [5][6] - The net interest margin expanded by 10 basis points to 3.66%, while the total cost of deposits declined by 21 basis points to 2.23% [5][6] Business Line Data and Key Metrics Changes - Loans held for investment grew by $187.7 million, or 19% on an annualized basis in Q4, and total deposits increased by $97.6 million, or 10% on an annualized basis [6][9] - The commercial real estate portfolio saw significant growth, increasing by $161.4 million in Q4 and $448.5 million for the year [8] Market Data and Key Metrics Changes - The company experienced outstanding balance sheet growth, with total assets increasing by $113.1 million in Q4 and $701.6 million for the full year [8] - Non-wholesale deposits increased by $738.1 million, or 25%, while wholesale deposits decreased by $95 million, or 17% [6][10] Company Strategy and Development Direction - The company plans to further develop all business verticals while expanding into new markets, emphasizing a blend of technology and personalized service [17] - Five Star Bancorp aims to maintain a focus on innovation and service excellence, with a commitment to organic growth and community engagement [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to achieve 10% growth in both loans and deposits for 2026, despite acknowledging the competitive landscape [26][44] - The company is focused on maintaining strong asset quality, with non-performing loans representing only 8 basis points of total loans held for investment [6][9] Other Important Information - The company announced a cash dividend increase to $0.25 per share, marking the first increase since April 2023 [8] - The efficiency ratio was reported at 40.62% for Q4 and 41.03% for the year, indicating a focus on managing expenses while supporting growth [5][6] Q&A Session Summary Question: Drivers behind loan origination growth - Management noted strong performance across all verticals, particularly in food and agriculture, with seasonal factors contributing to loan production [21][22] Question: Competitive landscape for deposits - The market is highly competitive, but the company believes its business development team provides a competitive advantage in attracting core deposits [24][25] Question: Expense growth outlook - Management anticipates a moderate increase in expenses, targeting an expense-to-asset ratio of 148%-155% for 2026 [36][37] Question: Loan origination yields and competition - The company is experiencing competitive pressures on loan spreads, particularly in owner-occupied real estate and lines of credit [38][39] Question: Capital comfort and growth expectations - Management expressed confidence in maintaining capital ratios with a 10% growth rate, but acknowledged that higher growth rates would necessitate additional capital [42][44]

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 ...

Core Viewpoint - Five Star Bancorp (FSBC) demonstrated strong financial performance in the quarter ended December 2025, with significant year-over-year growth in revenue and earnings per share (EPS) [1] Financial Performance - Revenue for the quarter was reported at $43.47 million, marking a year-over-year increase of 23.7% [1] - EPS for the same period was $0.83, compared to $0.63 a year ago, reflecting a positive growth trend [1] - The reported revenue exceeded the Zacks Consensus Estimate of $42.25 million by 2.88% [1] - The EPS also surpassed the consensus estimate of $0.77 by 7.79% [1] Key Metrics - Efficiency ratio stood at 40.6%, slightly better than the average estimate of 40.9% based on two analysts [4] - Net interest margin was reported at 3.7%, above the average estimate of 3.6% from two analysts [4] - Non-interest income was $1.4 million, slightly below the estimated $1.5 million [4] - Net interest income reached $42.07 million, exceeding the average estimate of $40.75 million [4] Stock Performance - Shares of Five Star Bancorp have returned +4.7% over the past month, outperforming the Zacks S&P 500 composite's +0.2% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Core Viewpoint - Five Star Bancorp (FSBC) reported quarterly earnings of $0.83 per share, exceeding the Zacks Consensus Estimate of $0.77 per share, and showing an increase from $0.63 per share a year ago, indicating a positive earnings surprise of +7.79% [1] Financial Performance - The company achieved revenues of $43.47 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 2.88%, and up from $35.15 million year-over-year [2] - Over the last four quarters, Five Star Bancorp has consistently surpassed consensus EPS estimates four times and topped revenue estimates three times [2] Stock Performance - Since the beginning of the year, Five Star Bancorp shares have increased by approximately 6.9%, outperforming the S&P 500, which gained 1% [3] Future Outlook - The company's earnings outlook will be crucial for future stock performance, with current consensus EPS estimates at $0.79 for the coming quarter and $3.35 for the current fiscal year [7] - The Zacks Rank for Five Star Bancorp is currently 3 (Hold), indicating expected performance in line with the market in the near future [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 environment for performance [8]

Financial Performance - Net income for the three months ended December 31, 2025, was $17.6 million, up from $16.3 million in the previous quarter and $13.3 million year-over-year, representing a 32.4% increase from the same quarter last year[2][10] - Basic earnings per common share increased to $2.90 for the year ended December 31, 2025, compared to $2.26 in 2024, reflecting a 28.4% growth[3][11] - Net income for the year ended December 31, 2025, was $61.606 million, an increase of 35% from $45.671 million in 2024[66] - Net income for the three months ended December 31, 2025, was $17,643 thousand, reflecting a $1,299 thousand increase or 7.95% from the previous quarter[14] - Pre-tax income for the three months ended December 31, 2025, was $23,008,000, an increase from $22,234,000 in the previous quarter and $19,367,000 in the same quarter last year[73] Loan and Deposit Growth - Total loans held for investment increased by $542.2 million, or 15%, year-over-year, reaching $4.07 billion as of December 31, 2025[4][8] - Total deposits rose by $643.1 million, or 18%, year-over-year, with non-wholesale deposits increasing by $738.1 million, or 25%[4][11] - Total loans held for investment increased to $4,074,929 thousand as of December 31, 2025, up from $3,887,259 thousand on September 30, 2025, representing a growth of 4.8%[28] - The average balance of loans increased by $474.1 million, or 13.55%, contributing to the rise in net interest income[26] - The average balance of deposits increased by $627.4 million, or 19.45%, leading to an additional $10.0 million in deposit interest expense for the year[27] Interest Income and Margin - The net interest margin for the year ended December 31, 2025, was 3.55%, up from 3.32% in 2024, driven by loan growth and improved yields[7][11] - Net interest income for the year ended December 31, 2025, was $151.905 million, an increase of 26.9% from $119.711 million in 2024[66] - Net interest income for the three months ended December 31, 2025, was $42,065 thousand, an increase of $2,717 thousand or 6.91% from the previous quarter[14] - Year-over-year, net interest income rose by $8.6 million, or 25.61%, from $33.5 million in Q4 2024 to $42.1 million in Q4 2025[26] - The net interest margin for the same period was 3.66%, an increase of ten basis points from the prior quarter[25] Credit Losses and Nonperforming Loans - The provision for credit losses increased by $2.8 million, or 39.57%, year-over-year, due to loan growth and higher loss rates[11][12] - The allowance for credit losses rose to $44.4 million at December 31, 2025, compared to $37.8 million at December 31, 2024, reflecting a 17.5% increase[30] - The ratio of nonperforming loans to loans held for investment increased from 0.05% at December 31, 2024, to 0.08% at December 31, 2025[12] - Provision for credit losses increased to $2,800 thousand, up $300 thousand or 12.00% from the previous quarter[14] - The provision for credit losses for the three months ended December 31, 2025, was $2,800,000, compared to $2,500,000 in the previous quarter and $1,300,000 in the same quarter last year[73] Expenses and Efficiency - The efficiency ratio improved to 41.03% in 2025, down from 43.19% in 2024, indicating better cost management[4][12] - Non-interest expense for the three months ended December 31, 2025, was $17,657 thousand, an increase of $1,077 thousand or 6.50% from the previous quarter[14] - Total non-interest expense for the year ended December 31, 2025, was $65.008 million, up from $54.493 million in 2024, indicating a rise of 19.3%[66] - Salaries and employee benefits increased to $10,125 thousand for the three months ended December 31, 2025, up 4.21% from $9,716 thousand in the previous quarter[40] - Advertising and promotional expenses increased by $767,000, or 31.81%, to $3.178 million for the year ended December 31, 2025, compared to $2.411 million for the year ended December 31, 2024[49] Shareholder Returns - The Company declared a cash dividend of $0.20 per share for the three months ended December 31, 2025, and an additional dividend of $0.25 per share expected to be paid on February 9, 2026[13] - Book value per share increased to $20.87 as of December 31, 2025, from $18.60 in 2024, representing a growth of 12.2%[66] Market Presence and Future Plans - Five Star Bank expanded its market presence by opening a new office in Walnut Creek and plans to continue focusing on vertical market growth in 2026[5][6] - The company plans to host a live webcast on January 27, 2026, to discuss its fourth quarter and annual financial results[60]

Core Insights - The company reported a strong financial performance for the third quarter of 2025, with significant growth in loans and core deposits, resulting in a net income of $16.3 million and earnings per share of $0.77 [4] - The total assets increased by $228.3 million, primarily driven by loan growth in the commercial real estate portfolio, which grew by $77.7 million [2] - The company maintains a low volume of nonperforming loans, which decreased by $149,000 during the quarter, reflecting strong credit quality [1][3] Financial Performance - The net interest margin expanded by 3 basis points to 3.56%, while the cost of total deposits declined by 2 basis points to 2.44% [3] - Total deposits increased by approximately $208.8 million or 21% on an annualized basis, with non-wholesale deposits growing by $359 million or 11% [3] - Noninterest income rose to $2 million from $1.8 million, mainly due to an increase in swap referral fees [6] Deposit Growth - The company experienced substantial growth in interest-bearing deposits, contributing $171.6 million to overall growth, while non-interest-bearing deposits added $28.8 million [1] - Approximately 60% of deposit relationships exceed $5 million, indicating a stable funding base for future growth [1][5] - The average age of deposits is 8 years, suggesting a stable deposit portfolio [5] Loan Growth and Quality - Loans held for investment grew by $129.2 million or 14% on an annualized basis, with a strong loan pipeline remaining in place [3] - The credit quality of loans is maintained through conservative underwriting practices and robust monitoring [2] - Nonperforming loans represent only 5 basis points of total loans held for investment, indicating strong asset quality [3] Strategic Initiatives - The company opened a new full-service office in Walnut Creek, enhancing its presence in the San Francisco Bay Area, which now has 36 employees and $548.9 million in deposits [7] - Continued investment in technology and operational efficiencies is expected to benefit customers and shareholders [9] - The company is focused on organic growth and maintaining a strong relationship-based service model [8][9] Future Outlook - The company anticipates deposit growth of 1% to 2% in the fourth quarter, with a focus on optimizing the funding base [12] - There is potential for continued margin expansion in a down rate environment, with expectations of 1 to 3 basis points improvement in the fourth quarter [22] - The loan-to-deposit ratio is targeted at 95%, with flexibility to adjust based on market conditions [27]

Core Viewpoint - Five Star Bancorp is set to announce its financial results for the quarter and year ending December 31, 2025, on January 26, 2026, after market close [1] Group 1: Financial Reporting - The financial results will be disclosed after the stock market closes on January 26, 2026 [1] - A live webcast for analysts and investors will take place on January 27, 2026, at 1:00 PM ET to review the financial information [2] - The webcast will be accessible from the Company's website and will be archived for 90 days [2] Group 2: Company Overview - Five Star Bancorp is a bank holding company based in Rancho Cordova, California, operating through its wholly owned subsidiary, Five Star Bank [3] - Five Star Bank has nine branches located in Northern California [3]

Group 1 - Five Star Bancorp is set to report its financial results for the quarter and year ended December 31, 2025, on January 26, 2026, after market close [1] - A live webcast for analysts and investors will take place on January 27, 2026, at 1:00 PM ET to discuss the financial results [2] - Five Star Bancorp operates through its wholly owned banking subsidiary, Five Star Bank, which has nine branches in Northern California [3]