Five Star Bancorp (FSBC) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.Individual investors often ...

The Sacramento Metropolitan Chamber of Commerce honors Beckwith for two decades of leadership, community investment, and regional advancementRANCHO CORDOVA, Calif., Nov. 20, 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, today announced its President and CEO James Beckwith has earned the distinction of Sacramentan of the Year from the Sacramento Metropolitan Chamber of Comm ...

Core Points - Five Star Bancorp's President and CEO, James Beckwith, has been named Sacramentan of the Year by the Sacramento Metropolitan Chamber of Commerce for his significant contributions to the Capital Region over the past 20 years [1][2][3] Company Achievements - Under Beckwith's leadership, Five Star Bank has received multiple awards, including the Sacramento Business Journal's Corporate Champion of the Year and the Greater Sacramento Economic Council's Sustainability Award [3] - The bank has been recognized as one of S&P Global Market Intelligence's Top 3 Best-Performing Community Banks in the nation, and it received the 2024 Raymond James Community Bankers Cup [7] - In 2025, Five Star Bank was ranked 4 among U.S. banks with assets less than $5 billion by Bank Director Magazine [7] Community Involvement - Beckwith has actively supported various non-profit organizations and educational institutions, including Cristo Rey High School and Capital College & Career Academy [4] - He serves on several boards, including the Greater Sacramento Economic Council and the California Bankers Association, promoting economic development in the region [4] Expansion Efforts - In 2024, Five Star Bank expanded into San Francisco's Financial District, followed by an expansion into Walnut Creek in 2025, enhancing its business banking services [5]

Financial Performance - Net income for the three and nine months ended September 30, 2025, totaled $16.3 million and $44.0 million, respectively, compared to $10.9 million and $32.4 million for the same periods in 2024, representing an increase of 49.54% and 35.68%[158]. - Net income for the nine months ended September 30, 2025, was $43,963 thousand, a 36.1% increase from $32,354 thousand in 2024[166]. - Basic earnings per common share increased to $0.77 for the three months ended September 30, 2025, compared to $0.52 in 2024, reflecting a growth of 48.1%[166]. Asset Growth - Total assets were $4.6 billion at September 30, 2025, reflecting a $588.5 million, or 14.52%, increase compared to $4.1 billion at December 31, 2024[159]. - Total assets increased to $4,641,770 thousand as of September 30, 2025, from $4,053,278 thousand at the end of 2024, reflecting a growth of 14.5%[161]. - Total loans held for investment rose to $3.9 billion at September 30, 2025, an increase of $354.6 million, or 10.04%, from $3.5 billion at December 31, 2024[159]. Deposits - Total deposits increased by $545.4 million, or 15.33%, from $3.6 billion at December 31, 2024, to $4.1 billion at September 30, 2025[159]. - Non-interest-bearing deposits increased by $136.5 million in the first nine months of 2025 to $1.1 billion, representing 25.81% of total deposits at September 30, 2025[159]. - Total deposits grew to $4,103,438 thousand as of September 30, 2025, from $3,557,994 thousand in 2024, marking an increase of 15.4%[161]. Loan Portfolio - The average balance of loans increased by $477.8 million, or 14.25%, during the three months ended September 30, 2025, contributing to the rise in interest income[171]. - Total loans held for investment grossed $3.9 billion, with consumer and other loans making up 7.15% of the total[218]. - Commercial real estate loans accounted for 80.86% of total loans, amounting to $3.1 billion as of September 30, 2025, up from 80.75% or $2.9 billion at December 31, 2024[218]. Interest Income and Margin - Net interest income for the three months ended September 30, 2025, increased by $9.0 million, or 29.49%, compared to the same period in 2024, reaching $39,348 thousand[166]. - The net interest margin improved to 3.56% and 3.52% for the three and nine months ended September 30, 2025, compared to 3.37% and 3.30% for the same periods in 2024[159]. - Total interest income for the three months ended September 30, 2025, was $64.8 million, and $207.0 million for the year ended December 31, 2024[318]. Non-Interest Income - Non-interest income rose to $1,966 thousand for the three months ended September 30, 2025, up from $1,381 thousand in 2024, marking an increase of 42.3%[166]. - Non-interest income for the nine months ended September 30, 2025, totaled $5.1 million, a 7.27% increase from $4.8 million in the same period of 2024[185]. - Loan-related fees increased by 32.70% to $1.6 million for the nine months ended September 30, 2025, compared to $1.2 million in 2024[185]. Expenses - Total non-interest expense for the nine months ended September 30, 2025, was $47.4 million, an increase of 18.36% from $40.0 million in 2024[198]. - Salaries and employee benefits for the nine months ended September 30, 2025, increased by 18.89% to $27.8 million from $23.3 million in 2024[198]. - The provision for income taxes for the nine months ended September 30, 2025, was $16.8 million, up from $13.0 million in 2024, reflecting an increase in pre-tax income[205]. Capital and Ratios - The total risk-based capital ratio for the Company was 13.59% at September 30, 2025, compared to 13.99% at December 31, 2024, remaining above well-capitalized regulatory thresholds[159]. - As of September 30, 2025, Bancorp's total capital to risk-weighted assets ratio was 13.59%, exceeding the required minimum of 8.00%[305]. - The allowance for credit losses to total loans held for investment was 1.08% as of September 30, 2025, slightly up from 1.07% in 2024, indicating stable asset quality[161]. Risk Management - The company has implemented strong risk management practices, including annual evaluations of income property loans and semi-annual stress testing[227]. - The company has established internal concentration limits for commercial real estate loans by sector, with all loan sectors remaining within established limits as of September 30, 2025[226]. - Nonperforming loans consist of non-accrual loans and loans contractually past due by 90 days or more, impacting the overall asset quality assessment[238]. Liquidity - Total liquidity was approximately $2.3 billion as of September 30, 2025, which includes cash and cash equivalents and unused borrowing capacity[288]. - Cash and cash equivalents increased to $580.4 million as of September 30, 2025, up $228.1 million from $352.3 million at December 31, 2024[209]. - Cash inflows from deposits amounted to $545.4 million during the nine months ended September 30, 2025[280]. Dividends - The board of directors declared a cash dividend of $0.20 per share on July 17, 2025[159]. - The Company paid dividends totaling $4.3 million during the three months ended September 30, 2025, with an expected quarterly dividend rate of $0.20 per share[291][292].

Financial Data and Key Metrics Changes - The company reported net income of $16.3 million for Q3 2025, with earnings per share at $0.77, a return on average assets of 1.44%, and a return on average equity of 15.35% [3][4] - Net interest margin expanded by three basis points to 3.56%, while the cost of total deposits decreased by two basis points to 2.44% [3][4] - The efficiency ratio for the third quarter was 40.13% [4] Business Line Data and Key Metrics Changes - Loans held for investment grew by $129.2 million, or 14% on an annualized basis, while total deposits increased by approximately $208.8 million, or 21% on an annualized basis [4] - Non-wholesale deposits increased by $359 million, or 11%, whereas wholesale deposits decreased by $150.2 million, or 23% [4] - Non-performing loans represented only five basis points of total loans held for investment, indicating strong asset quality [4][5] Market Data and Key Metrics Changes - Total assets increased by $228.3 million, primarily driven by loan growth in the commercial real estate portfolio, which grew by $77.7 million [5] - Non-interest-bearing deposits remained consistent at 26% of total deposits as of September 30, 2025, with approximately 60% of deposit relationships totaling more than $5 million [6] Company Strategy and Development Direction - The company is focused on organic growth and maintaining a differentiated client experience, with a commitment to community partners throughout Northern California [3][4] - The opening of a new full-service office in Walnut Creek is part of the strategy to expand in the San Francisco Bay Area, which has shown significant growth potential [8] - The company aims to eliminate brokered deposits over time while optimizing its funding base through core deposit growth [12][13] 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 while focusing on long-term strategy execution [9] - The company anticipates deposit growth of 1%-2% in Q4 2025, acknowledging that replicating the strong growth seen in Q3 may be challenging [13] - Management highlighted the importance of maintaining strong credit quality and conservative underwriting practices to support future growth [5][8] Other Important Information - A cash dividend of $0.20 per share was declared by the board, expected to be paid in November [4] - The company recorded a $2.5 million provision for credit losses during the quarter, primarily due to loan growth [5] Q&A Session Summary Question: Core deposit growth and optimization - Management noted exceptional core deposit growth in Q3, driven by new clients across all platforms, but anticipates slower growth in Q4 due to efforts to reduce brokered deposits [12][13] Question: Loan payoffs and paydowns - Management explained that payoffs are influenced by the business model, particularly in MHC and RV park lending, and expect this trend to continue [18][21] Question: Growth opportunities and team expansion - Management highlighted growth in the ag team and other segments, with a focus on larger credits that significantly impact both deposits and loans [22][24] Question: Net interest margin outlook - Management expressed optimism about margin expansion in a down rate environment, with expectations of continued loan repricings contributing positively [31][33] Question: M&A landscape - Management indicated a preference for organic growth but remains open to opportunistic M&A if a compelling opportunity arises [60][61]

Financial Data and Key Metrics Changes - The company reported a net income of $16.3 million for Q3 2025, with earnings per share of $0.77, a return on average assets of 1.44%, and a return on average equity of 15.35% [4] - The net interest margin expanded by three basis points to 3.56%, while the cost of total deposits declined by two basis points to 2.44% [4][5] - The efficiency ratio was reported at 40.13% for the third quarter [4] Business Line Data and Key Metrics Changes - Loans held for investment grew by $129.2 million, or 14% on an annualized basis, while total deposits increased by approximately $208.8 million, or 21% on an annualized basis [5] - Non-wholesale deposits increased by $359 million, or 11%, while wholesale deposits decreased by $150.2 million, or 23% [5] - Non-performing loans represented only five basis points of total loans held for investment, indicating strong asset quality [5][6] Market Data and Key Metrics Changes - Total assets increased by $228.3 million, primarily driven by loan growth within the commercial real estate portfolio, which grew by $77.7 million [6] - Non-interest-bearing deposits remained consistent at 26% of total deposits as of September 30, 2025, with approximately 60% of deposit relationships totaling more than $5 million [7] Company Strategy and Development Direction - The company is focused on organic growth and maintaining a differentiated client experience, with a commitment to community partners throughout Northern California [4] - The opening of a new full-service office in Walnut Creek is part of the company's strategy to expand its presence in the San Francisco Bay Area [9] - The company aims to eliminate brokered deposits over the long term while continuing to grow core deposits [15][16] 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 while focusing on long-term strategy execution [10] - The company anticipates deposit growth in the fourth quarter to be between 1% to 2% on an absolute basis, acknowledging that replicating the strong growth seen in Q3 may be challenging [15][16] - Management highlighted the importance of maintaining a stable funding base through a strong deposit portfolio [7] Other Important Information - The company declared a cash dividend of $0.20 per share, expected to be paid in November [5] - A provision for credit losses of $2.5 million was recorded during the quarter, primarily due to loan growth [6] Q&A Session Summary Question: Core deposit growth and optimization - Management noted exceptional core deposit growth in Q3, driven by new clients across all platforms, but anticipates more modest growth of 1% to 2% in Q4 due to efforts to eliminate brokered deposits [15][16] Question: Loan payoffs and paydowns - Management explained that payoffs and paydowns are influenced by the business model, particularly in MHC and RV park lending, and expect this trend to continue [21][22] Question: Growth opportunities and team expansion - Management highlighted growth in the ag team and other segments like MHC and RV business, with a strong loan pipeline in the Bay Area [25][28] Question: Net interest margin outlook - Management expressed optimism about margin expansion in a down rate environment, estimating a potential increase of one to three basis points in Q4 [34][39] Question: M&A landscape - Management indicated a preference for organic growth but remains open to opportunistic M&A if a compelling opportunity arises [68][70]

Company Overview - Five Star Bancorp (FSBC) has total assets of $46 billion, loans held for investment of $39 billion, and deposits of $41 billion as of September 30, 2025[21] - The company operates 9 bank branches[21] Financial Performance - Net income for the three months ended September 30, 2025 was $16344 thousand, with a Return on Average Assets (ROAA) of 144% and a Return on Average Equity (ROAE) of 1535%[27] - Basic and diluted earnings per share for the three months ended September 30, 2025 were $077[27] - Non-interest-bearing deposits totaled $1059082 thousand as of September 30, 2025, representing 2581% of total deposits[27, 29] - Insured and collateralized deposits were approximately $27 billion, representing 6525% of total deposits as of September 30, 2025[29] Loan Portfolio - Loans held for investment increased by $1292 million since June 30, 2025[29] - Commercial real estate loans constitute 8086% of the loan portfolio, with manufactured home loans making up 3118% of CRE loans[52] - Adjustable-rate loans represent 667% ($26 billion) of the total loans held for investment as of September 30, 2025[63] Asset Quality - Nonperforming loans to loans held for investment stood at 005% as of September 30, 2025[27] - Allowance for credit losses to loans held for investment was 108% as of September 30, 2025[27]

Core Insights - Five Star Bancorp (FSBC) reported quarterly earnings of $0.77 per share, exceeding the Zacks Consensus Estimate of $0.71 per share, and showing an increase from $0.52 per share a year ago, resulting in an earnings surprise of +8.45% [1] - The company achieved revenues of $41.31 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 2.90%, and up from $31.77 million year-over-year [2] - Five Star Bancorp shares have increased approximately 18.4% year-to-date, outperforming the S&P 500's gain of 15.5% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.74 on revenues of $41.25 million, and for the current fiscal year, it is $2.75 on revenues of $155.05 million [7] - The estimate revisions trend for Five Star Bancorp was favorable prior to the earnings release, leading to a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Banks - West industry, to which Five Star Bancorp belongs, is currently ranked in the top 17% of over 250 Zacks industries, suggesting a positive outlook for stocks within this sector [8]

Financial Performance - Net income for the third quarter of 2025 was $16.3 million, up 12.66% from $14.5 million in the previous quarter and up 49.86% from $10.9 million in the same quarter last year[2][11] - Basic and diluted earnings per share were both $0.77, representing a 13.24% increase from $0.68 in the previous quarter[12] - Net income for the three months ended September 30, 2025, was $16,344,000, up $5,403,000 or 49.38% from the same period in 2024[13] - Total comprehensive income for the three months ended September 30, 2025, was $18.424 million, compared to $13.441 million for the same period in 2024[45] - The bank's return on average assets (ROAA) improved to 1.44% for the three months ended September 30, 2025, compared to 1.18% for the same period in 2024[47] - The return on average equity (ROAE) increased to 15.35% for the three months ended September 30, 2025, compared to 11.31% for the same period in 2024[47] - Earnings per common share for the three months ended September 30, 2025, were $0.77, up from $0.52 for the same period in 2024[46] Loan and Deposit Growth - Total loans held for investment increased by $129.2 million, or 3.44% (13.76% annualized), while total deposits increased by $208.8 million, or 5.36% (21.45% annualized) during the third quarter[3][9] - Non-wholesale deposits rose by $359.0 million, or 11.09% (44.34% annualized), while wholesale deposits decreased by $150.2 million, or 22.87%[3][9] - Total loans held for investment as of September 30, 2025, were $3,887.3 million, up from $3,758.0 million in the prior quarter[24] - Total deposits reached $4,103,438,000, reflecting an increase of $208,816,000 or 5.36% from June 30, 2025[15] - The average balance of loans increased by $140.2 million, or 3.80%, contributing to an additional $4.3 million in interest income[22] - The average balance of deposits increased by $776.9 million, or 24.39%, compared to the same quarter of the prior year[23] Interest Income and Margin - Net interest income for the three months ended September 30, 2025, was $39,348,000, an increase of $8,962,000 or 29.49% compared to the same period in 2024[13] - Net interest income for the three months ended September 30, 2025, increased by $2.8 million, or 7.76%, to $39.3 million compared to $36.5 million in the prior quarter[22] - The net interest margin improved to 3.56% for the three months ended September 30, 2025, compared to 3.37% for the same period in 2024[20] - Net interest margin for the same period was 3.56%, an increase of three basis points from the previous quarter[22] Efficiency and Expenses - The efficiency ratio improved to 40.13% from 41.03% in the previous quarter, reflecting disciplined expense management[4][12] - Total non-interest expense for the three months ended September 30, 2025, was $16.580 million, an increase of $2.804 million or 20.35% compared to $13.776 million for the same period in 2024[33] - Salaries and employee benefits increased by $1.747 million, or 21.92%, to $9.716 million for the three months ended September 30, 2025, compared to $7.969 million for the same period in 2024[33] Asset Quality - The ratio of nonperforming loans to loans held for investment decreased from 0.06% at June 30, 2025, to 0.05% at September 30, 2025[9] - The allowance for credit losses was $42.1 million as of September 30, 2025, compared to $37.8 million at December 31, 2024[26] - The allowance for credit losses to nonperforming loans ratio was 1,975.62%, up from 1,763.26% in the previous quarter, indicating improved credit quality[48] - Nonperforming loans to loans held for investment ratio remained stable at 0.05% for both the current and previous quarters[48] Capital and Equity - The company's common equity Tier 1 capital ratio was 10.77%, meeting all requirements to be considered "well-capitalized" under regulatory guidelines[9] - Total shareholders' equity increased by $14,566,000 or 3.50% from June 30, 2025, totaling $431,308,000[14] - Total shareholders' equity to total assets ratio decreased to 9.29% from 9.44% in the previous quarter[49] - The Tier 1 leverage ratio decreased to 9.78% from 10.03% in the previous quarter[49] - The company reported a retained earnings increase to $137,615,000, up from $125,545,000 in the previous quarter, a growth of 9.2%[48]

Core Insights - Five Star Bancorp reported a net income of $16.3 million for Q3 2025, an increase from $14.5 million in Q2 2025 and $10.9 million in Q3 2024 [1][8][11] Financial Performance - Return on average assets (ROAA) improved to 1.44% in Q3 2025 from 1.37% in Q2 2025 and 1.18% in Q3 2024 [2][12] - Return on average equity (ROAE) increased to 15.35% in Q3 2025 from 14.17% in Q2 2025 and 11.31% in Q3 2024 [2][12] - Pre-tax income rose to $22.2 million in Q3 2025, up from $20.1 million in Q2 2025 and $15.2 million in Q3 2024 [2][12] - Basic and diluted earnings per share were both $0.77 in Q3 2025, compared to $0.68 in Q2 2025 and $0.52 in Q3 2024 [2][12] Loan and Deposit Growth - Total loans held for investment increased by $129.2 million, or 3.44% (13.76% annualized), reaching $3.887 billion in Q3 2025 [3][7] - Total deposits grew by $208.8 million, or 5.36% (21.45% annualized), totaling $4.103 billion in Q3 2025 [3][7] - Non-wholesale deposits increased by $359.0 million, or 11.09% (44.34% annualized), while wholesale deposits decreased by $150.2 million, or 22.87% [3][9] Interest Income and Margin - Net interest income rose by $2.8 million, or 7.76%, to $39.3 million in Q3 2025 compared to Q2 2025 [12][24] - Net interest margin increased to 3.56% in Q3 2025 from 3.53% in Q2 2025 [4][12] - Interest and fee income for Q3 2025 was $64.8 million, up from $60.6 million in Q2 2025 [22][24] Cost and Efficiency - Cost of funds decreased to 2.51% in Q3 2025 from 2.53% in Q2 2025 [4][12] - Efficiency ratio improved to 40.13% in Q3 2025 from 41.03% in Q2 2025 [4][12] Asset Quality - The ratio of nonperforming loans to loans held for investment decreased to 0.05% in Q3 2025 from 0.06% in Q2 2025 [10][30] - The allowance for credit losses was $42.1 million, representing 1.08% of loans held for investment [29][31] Strategic Developments - The company opened its ninth full-service office in Walnut Creek, California, to meet demand in the San Francisco Bay Area [5][6] - Total deposits from the San Francisco Bay Area reached $548.9 million as of September 30, 2025 [5][9]