Part I: Financial Information [Financial Statements (Unaudited)](index=3&type=section&id=ITEM%201.%20Financial%20Statements%20(unaudited)) The company reported increased assets and net income in Q1 2025, driven by loan growth and higher net interest income [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) The balance sheet reflects significant asset growth, primarily in loans and cash, funded by increased deposits and shareholders' equity Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | **Total Assets** | **$4,245,057** | **$4,053,278** | **+4.7%** | | Cash and cash equivalents | $452,571 | $352,343 | +28.4% | | Loans held for investment, net | $3,582,595 | $3,494,895 | +2.5% | | **Total Liabilities** | **$3,838,606** | **$3,656,654** | **+5.0%** | | Total deposits | $3,736,354 | $3,557,994 | +5.0% | | **Total Shareholders' Equity** | **$406,451** | **$396,624** | **+2.5%** | [Consolidated Statements of Income](index=4&type=section&id=Consolidated%20Statements%20of%20Income) Net income increased significantly due to higher net interest income, despite increased provision for credit losses and non-interest expenses - Net income for Q1 2025 increased by **23.3%** to **$13,111 thousand**, primarily due to a **27.1%** increase in net interest income to **$33,977 thousand**, with diluted EPS remaining flat at **$0.62** year-over-year[12](index=12&type=chunk) Income Statement Highlights (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Net Interest Income | $33,977 | $26,744 | +27.1% | | Provision for credit losses | $1,900 | $900 | +111.1% | | Non-interest Income | $1,359 | $1,833 | -25.9% | | Non-interest Expense | $15,045 | $12,716 | +18.3% | | **Net Income** | **$13,111** | **$10,631** | **+23.3%** | | Diluted EPS | $0.62 | $0.62 | 0.0% | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Cash and cash equivalents increased significantly, primarily driven by financing activities offsetting cash used in investing - Cash and cash equivalents increased by **$100,228 thousand** for Q1 2025, primarily due to **$174,094 thousand** from financing activities, offsetting **$89,338 thousand** used in investing activities[19](index=19&type=chunk) Cash Flow Summary (in thousands) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $15,472 | $247 | | Net cash used in investing activities | ($89,338) | ($11,923) | | Net cash provided by (used in) financing activities | $174,094 | ($124,575) | | **Net change in cash and cash equivalents** | **$100,228** | **($136,251)** | [Notes to Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail accounting policies, loan and deposit composition, credit quality, and capital adequacy, confirming the company's well-capitalized status - The company operates as a single banking segment, primarily serving small to medium-sized businesses and individuals in Northern California[25](index=25&type=chunk) - The loan portfolio is heavily concentrated in real estate, comprising **86.62%** of total loans as of March 31, 2025[126](index=126&type=chunk) - As of March 31, 2025, **104** deposit relationships exceeded **$5.0 million** each, totaling **$2.3 billion** and representing **60.87%** of total deposits[127](index=127&type=chunk) - A cash dividend of **$0.20 per share** was declared and paid in Q1 2025, with another **$0.20 per share** declared in April 2025[113](index=113&type=chunk)[133](index=133&type=chunk) [Management's Discussion and Analysis (MD&A)](index=31&type=section&id=ITEM%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) MD&A highlights strong Q1 2025 performance driven by loan and deposit growth, improved net interest margin, robust credit quality, and strong capital ratios [Executive Summary & Highlights](index=35&type=section&id=Executive%20Summary) The executive summary outlines key financial achievements including asset growth, strong credit quality, improved net interest margin, and robust capital - Total assets grew by **4.73%** to **$4.2 billion** in Q1 2025, driven by a **$89.1 million (2.52%)** increase in loans and a **$178.4 million (5.01%)** increase in deposits[150](index=150&type=chunk) - Credit quality remains strong, with non-accrual loans at **0.05%** of total loans and the allowance for credit losses stable at **1.08%**[150](index=150&type=chunk) - Net interest margin improved to **3.45%** for Q1 2025, up from **3.14%** in Q1 2024, driven by higher loan balances and yields[150](index=150&type=chunk) - All capital ratios exceed well-capitalized regulatory thresholds, with a Tier 1 leverage ratio of **10.17%** as of March 31, 2025[150](index=150&type=chunk) [Results of Operations](index=38&type=section&id=Results%20of%20Operations) Operating results show increased net interest income driven by loan growth and yields, offset by higher provision for credit losses and non-interest expenses Change in Net Interest Income (Q1 2025 vs Q1 2024, in thousands) | Component | Change due to Volume | Change due to Yield/Rate | Total Change | | :--- | :--- | :--- | :--- | | **Interest Income** | **$7,858** | **$1,688** | **$9,546** | | Loans | $6,916 | $2,229 | $9,145 | | **Interest Expense** | **$3,605** | **($1,292)** | **$2,313** | | **Change in Net Interest Income** | **$4,253** | **$2,980** | **$7,233** | - The provision for credit losses increased to **$1,900 thousand** in Q1 2025 from **$900 thousand** in Q1 2024, reflecting loan growth and economic forecast adjustments[164](index=164&type=chunk) - Non-interest income decreased by **$500 thousand (25.9%)** year-over-year, mainly due to lower gains on loan sales and reduced income from equity investments[167](index=167&type=chunk)[168](index=168&type=chunk) - Salaries and employee benefits increased by **$1,600 thousand (20.6%)**, driven by a **13.19%** increase in headcount and higher commissions[172](index=172&type=chunk)[173](index=173&type=chunk) [Financial Condition](index=42&type=section&id=Financial%20Condition%20Summary) Financial condition shows asset and loan portfolio growth, strong asset quality, increased deposits, and higher shareholders' equity Loan Portfolio Composition (in thousands) | Loan Type | March 31, 2025 | % of Total | | :--- | :--- | :--- | | Commercial Real Estate | $2,941,201 | 81.11% | | Commercial Construction | $113,002 | 3.12% | | Commercial (Secured & Unsecured) | $205,495 | 5.66% | | Consumer and other | $277,093 | 7.64% | | Other Real Estate & Farmland | $83,443 | 2.30% | | **Total Loans Held for Investment** | **$3,623,790** | **99.93%** | - Commercial real estate loan concentration was **576.23%** of risk-based capital as of March 31, 2025, remaining within internal limits[199](index=199&type=chunk) - Asset quality remains strong with nonperforming loans at **$1,800 thousand**, or **0.05%** of total loans, and an allowance for credit losses to nonperforming loans of **2,222%**[213](index=213&type=chunk) - Total deposits grew by **$178.4 million** in Q1 2025, with non-interest-bearing deposits increasing by **$11.0 million** to **$933.7 million**, representing **24.99%** of total deposits[228](index=228&type=chunk) [Liquidity and Capital Resources](index=55&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity and capital, with available liquidity of **$2.0 billion** and capital ratios exceeding well-capitalized thresholds Total Liquidity as of March 31, 2025 (in thousands) | Source | Available Amount | | :--- | :--- | | FHLB advances | $544,572 | | Federal Reserve Discount Window | $856,366 | | Correspondent bank lines of credit | $175,000 | | Cash and cash equivalents | $452,571 | | **Total** | **$2,028,509** | Capital Ratios as of March 31, 2025 | Ratio | Bancorp | Bank | Well-Capitalized Minimum (Bank) | | :--- | :--- | :--- | :--- | | Total capital (to risk-weighted assets) | 13.97% | 13.50% | 10.00% | | Tier 1 capital (to risk-weighted assets) | 11.00% | 12.48% | 8.00% | | Common equity tier 1 capital | 11.00% | 12.48% | 6.50% | | Tier 1 leverage | 10.17% | 11.52% | 5.00% | - The company's primary parent company liquidity source is Bank dividends, subject to regulatory limitations, which management believes will not impact its ability to meet obligations[244](index=244&type=chunk) [Quantitative and Qualitative Disclosure About Market Risk](index=63&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosure%20About%20Market%20Risk) The company manages interest rate risk by monitoring NII and EVE sensitivity, showing a liability-sensitive position in rising rate scenarios Interest Rate Sensitivity Analysis as of March 31, 2025 | Change in Interest Rates (bps) | Estimated Change in NII (%) | Estimated Change in EVE (%) | | :--- | :--- | :--- | | +300 | (5.26)% | (10.22)% | | +200 | (3.52)% | (7.04)% | | +100 | (1.95)% | (3.55)% | | -100 | 2.03% | 3.16% | | -200 | 4.29% | 5.87% | | -300 | 7.61% | 8.99% | - Interest rate risk management policies are overseen by the Management and Director Asset Liability Committees[294](index=294&type=chunk) [Controls and Procedures](index=64&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective, with no material changes to internal control over financial reporting - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of March 31, 2025[299](index=299&type=chunk) - No material changes to internal control over financial reporting occurred during the first quarter of 2025[300](index=300&type=chunk) Part II: Other Information [Other Disclosures (Items 1-5)](index=65&type=section&id=ITEM%201.%20Legal%20Proceedings) This section confirms no material legal proceedings, no changes to risk factors, and no unregistered equity sales or issuer purchases - The company is not a party to any pending legal proceedings expected to have a material adverse effect on its business[302](index=302&type=chunk) - No material changes to risk factors previously disclosed in the Company's 2024 Annual Report on Form 10-K have occurred[303](index=303&type=chunk) - No unregistered sales or issuer purchases of equity securities occurred during the quarter[304](index=304&type=chunk)[306](index=306&type=chunk)

Core Insights - Five Star Bancorp has expanded its food and agribusiness vertical to enhance support for clients across the nation, reflecting its commitment to the food supply chain [1][2] - The new vertical, named Food, Agribusiness & Diversified Industries, will focus on various sectors including production agriculture, wholesale distribution, retail, manufacturing, food processing, and food distribution services [2] - The initiative is led by a team of experienced professionals, including Cliff Cooper, who has over 35 years of banking expertise in the food and agribusiness sector [2][3] Company Strategy - The enhanced vertical aligns with Five Star Bank's organic growth strategy, emphasizing a high-tech and high-touch approach to business banking [3] - The company aims to build strong relationships with clients in the agricultural community, recognizing the importance of trust and in-person interactions [4] - Five Star Bank is dedicated to honoring the work of those involved in the food supply chain, ensuring they receive exceptional banking services [4] Company Overview - Five Star Bancorp is headquartered in Rancho Cordova, California, and operates through its wholly owned banking subsidiary, Five Star Bank [5] - The bank currently has eight branches located in Northern California [5]

Company Overview - Five Star Bancorp's asset size reached $4245 million as of March 31, 2025 [20] - Loans held for investment (HFI) totaled $3600 million [20] - Total deposits amounted to $3700 million [20] Financial Highlights - Loans held for investment increased by $891 million since December 31, 2024 [29] - Non-wholesale deposits increased by $484 million since December 31, 2024 [29] - Non-interest-bearing deposits comprised 2499% of total deposits [29] - Insured and collateralized deposits represented 6755% of total deposits [29] - Cash and cash equivalents were $4526 million, representing 1211% of total deposits [29] Loan Portfolio - Commercial real estate loans accounted for 8111% of the loan portfolio [36] - Manufactured home community loans within CRE totaled $918864 thousand, representing 3124% of CRE loans [37] - RV Park loans within CRE totaled $378525 thousand, representing 1287% of CRE loans [37] Financial Performance - Net income for the three months ended March 31, 2025, was $13111 thousand [77] - Return on average assets (ROAA) was 130% [77] - Net interest margin was 345% [77]

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]

Financial Data and Key Metrics Changes - Net income for the first quarter of 2025 was $13.1 million, with a return on average assets of 1.3% and return on average equity of 13.28% [10] - Average loan yields increased by one basis point to 6.02%, while net interest margin improved to 3.45% from 3.36% in the previous quarter [10] - Total loans held for investment rose by $89.1 million or 2.52% from the prior quarter [4] Business Line Data and Key Metrics Changes - The commercial real estate segment of the loan portfolio increased to 81.11% from 80.75% quarter over quarter [5] - Loan originations for the first quarter were $259.3 million, with payoffs and pay downs totaling $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][7] - Non-wholesale deposits increased by $48.4 million or 1.61% quarter over quarter [8] - The cost of total deposits decreased by 10 basis points to 2.48% during the first quarter [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 supported by adding seasoned professionals and increasing core deposit accounts [4] - The company aims to maintain a fortress balance sheet with a target of 10% cash and a loan-to-deposit ratio below 100% [22] 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 [19][20] - 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 its services, particularly in the mobile home park and RV park sectors [29] Other Important Information - The company declared a cash dividend of $0.20 per share, expected to be paid on May 12, 2025 [9] - Five Star Bancorp was ranked third on the S&P Global Market Intelligence List of best-performing community banks among banks with assets between $3 billion and $10 billion [61] Q&A Session Summary Question: Loan growth outlook for the year - Management is bullish on loan growth, projecting 10% to 12% for the remainder of the year due to a strong sales force and solid pipelines [19][20] 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] 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 [35] Question: Loan pricing competition - Management acknowledged competitive pricing but remains satisfied with their current loan spreads [40] Question: Customer hesitancy to borrow - Management noted strong demand in certain asset classes and emphasized their robust sales team as a key factor in maintaining loan growth [46][47] Question: Loan demand differences across regions - Management reported no significant challenges in the Bay Area, highlighting strong opportunities and a growing client base [49][50] Question: Small business borrowers' response to economic uncertainty - Management indicated that small business borrowers face high costs of borrowing, but they maintain a high level of reserves against this book [52][54]

Financial Data and Key Metrics Changes - Net income for the first quarter of 2025 was $13.1 million, with a return on average assets of 1.3% and return on average equity of 13.28% [10] - The net interest margin improved to 3.45% from 3.36% in the previous quarter, driven by lower average cost of deposits [10] - Total loans held for investment increased by $89.1 million or 2.52% from the prior quarter [4][10] - Non-performing loans remained stable at 0.05% of loans held for investment [6] 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 [5] - Loan originations during the first quarter were $259.3 million, while payoffs and pay downs were $65.6 million and $104.6 million respectively [5] - Non-interest income decreased to $1.4 million from $1.7 million in the previous quarter, primarily due to a reduction in income from equity investments [11] 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][7] - Non-wholesale deposits increased by $48.4 million or 1.61% quarter over quarter [8] - Local agency deposits accounted for 22.4% of total deposits as of March 31, 2025 [8] Company Strategy and Development Direction - The company is focused on organic growth and disciplined business practices, aiming to benefit customers, employees, community, and shareholders [13] - Expansion into the San Francisco Bay Area is a key strategic initiative, supported by the addition of seasoned professionals [4][12] - The company aims to maintain a fortress balance sheet with a target of 10% in cash and a loan-to-deposit ratio below 100% [21] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's resilience and ability to adapt to changing economic conditions [13] - The company anticipates loan growth of 10% to 12% for the remainder of the year, supported by a strong sales force [18][19] - Concerns regarding tariffs and economic slowdown were acknowledged, but management believes the company is well-positioned relative to competitors [30] Other Important Information - The company declared a cash dividend of $0.20 per share, expected to be paid on May 12, 2025 [9] - Five Star Bancorp was ranked third on the S&P Global Market Intelligence List of best-performing community banks in the nation [61] Q&A Session Summary Question: Loan growth outlook for the year - Management is bullish on loan growth, expecting 10% to 12% for the remainder of the year, supported by a strong sales force [18][19] 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 [21] Question: Impact of tariffs on RV manufactured housing business - Management feels comfortable about the portfolio's performance, 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 [34][35] Question: Loan pricing competition - Management acknowledged competitive pricing but remains satisfied with current spreads [38][39] Question: Customer hesitancy to borrow - Management noted strong demand in certain asset classes and emphasized the effectiveness of their sales force [46][47] Question: Small business borrowers' response to economic uncertainty - Management indicated that small business borrowers face high costs of borrowing, but reserves against this book remain high [53][55]

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]

[Q1 2025 Financial Performance Overview](index=1&type=section&id=Five%20Star%20Bancorp%20Announces%20First%20Quarter%202025%20Results) This section provides a comprehensive overview of Five Star Bancorp's Q1 2025 financial results, including income statement analysis and key performance drivers [Q1 2025 Performance Highlights](index=1&type=section&id=First%20Quarter%20Highlights) Five Star Bancorp reported a strong Q1 2025 with net income of **$13.1 million**, a significant **23.3% increase year-over-year**, though slightly down from the previous quarter, driven by robust loan and deposit growth, an expanded net interest margin of **3.45%**, and continued expansion in the San Francisco Bay Area, while maintaining a stable dividend of **$0.20 per share** and earning recognition as a top-performing bank by S&P Global Market Intelligence | (in thousands, except per share data) | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | Net Income | $13,111 | $13,317 | $10,631 | | Diluted EPS | $0.62 | $0.63 | $0.62 | | ROAA | 1.30% | 1.31% | 1.22% | | ROAE | 13.28% | 13.48% | 14.84% | | Net Interest Margin | 3.45% | 3.36% | 3.14% | - Total loans held for investment grew by **$89.1 million** (**2.52% QoQ**) and total deposits increased by **$178.4 million** (**5.01% QoQ**)[4](index=4&type=chunk) - The company declared a cash dividend of **$0.20 per share**, consistent with the previous quarter[5](index=5&type=chunk)[7](index=7&type=chunk) - Expansion in the San Francisco Bay Area continues, with the team growing to **31 employees** and generating **$379.8 million** in total deposits as of March 31, 2025[3](index=3&type=chunk)[8](index=8&type=chunk) [Income Statement Analysis](index=3&type=section&id=Summary%20Results) Net income for Q1 2025 was **$13.1 million**, decreasing slightly by **1.55%** QoQ due to higher non-interest expenses and provision for credit losses, while growing strongly by **23.33%** YoY, primarily driven by a **$7.2 million** increase in net interest income [QoQ Performance Comparison (Q1 2025 vs. Q4 2024)](index=3&type=section&id=Three%20months%20ended%20March%2031%2C%202025%2C%20as%20compared%20to%20three%20months%20ended%20December%2031%2C%202024) Net income decreased by **$0.2 million** to **$13.1 million** from Q4 2024, driven by increased provision for credit losses and non-interest expense, partially offset by higher net interest income from lower deposit interest costs | (in thousands) | Q1 2025 | Q4 2024 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Net interest income | $33,977 | $33,489 | $488 | 1.46% | | Provision for credit losses | $1,900 | $1,300 | $600 | 46.15% | | Non-interest income | $1,359 | $1,666 | ($307) | (18.43)% | | Non-interest expense | $15,045 | $14,488 | $557 | 3.84% | | Net income | $13,111 | $13,317 | ($206) | (1.55)% | [YoY Performance Comparison (Q1 2025 vs. Q1 2024)](index=3&type=section&id=Three%20months%20ended%20March%2031%2C%202025%2C%20as%20compared%20to%20three%20months%20ended%20March%2031%2C%202024) Net income increased by **$2.5 million** (**23.3%**) to **$13.1 million** from Q1 2024, primarily fueled by a **$7.2 million** increase in net interest income, partially offset by higher provision for credit losses and non-interest expenses | (in thousands) | Q1 2025 | Q1 2024 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Net interest income | $33,977 | $26,744 | $7,233 | 27.05% | | Provision for credit losses | $1,900 | $900 | $1,000 | 111.11% | | Non-interest expense | $15,045 | $12,716 | $2,329 | 18.32% | | Net income | $13,111 | $10,631 | $2,480 | 23.33% | [Net Interest Income and Margin](index=5&type=section&id=Net%20Interest%20Income%20and%20Net%20Interest%20Margin) Net interest income (NII) for Q1 2025 was **$34.0 million**, with a net interest margin (NIM) of **3.45%**, showing QoQ growth due to lower deposit interest costs and YoY expansion driven by increased loan balances and yields - QoQ, NII increased by **1.46%** to **$34.0 million**, and NIM rose to **3.45%** from **3.36%** in Q4 2024, primarily due to a **$1.1 million** decrease in interest expense[20](index=20&type=chunk)[22](index=22&type=chunk) - YoY, NII increased by **27.05%** from **$26.7 million**, and NIM expanded to **3.45%** from **3.14%** in Q1 2024, driven by a **$485.7 million** increase in average loan balance and a **31 basis point** improvement in loan yields[20](index=20&type=chunk)[23](index=23&type=chunk) | (in thousands) | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | Average Interest-Earning Assets | $3,997,037 | $3,965,867 | $3,424,469 | | Net Interest Income | $33,977 | $33,489 | $26,744 | | Net Interest Margin | 3.45% | 3.36% | 3.14% | | Cost of Funds | 2.56% | 2.65% | 2.62% | [Non-Interest Income](index=8&type=section&id=Non-interest%20Income) Total non-interest income for Q1 2025 was **$1.4 million**, decreasing both QoQ and YoY primarily due to the non-recurrence of income from equity investments in venture-backed funds and lower gain on sale of loans - QoQ, non-interest income fell by **$0.3 million**, mainly because **$0.3 million** income from venture-backed fund investments in Q4 2024 did not recur[29](index=29&type=chunk)[31](index=31&type=chunk) - YoY, non-interest income fell by **$0.5 million**, also due to non-recurring income from venture-backed funds and a **$0.2 million** decrease in gain on sale of loans[31](index=31&type=chunk)[32](index=32&type=chunk) [Non-Interest Expense](index=9&type=section&id=Non-interest%20Expense) Non-interest expense totaled **$15.0 million** in Q1 2025, increasing both QoQ and YoY primarily due to higher salaries and employee benefits reflecting increased headcount for company expansion - QoQ, non-interest expense increased by **$0.6 million**, with salaries and benefits rising by **$0.8 million** due to higher salary, bonus, and lower deferred loan origination costs[33](index=33&type=chunk) - YoY, non-interest expense increased by **$2.3 million**, with salaries and benefits rising by **$1.6 million** largely due to a **13.19%** increase in headcount, alongside a **$0.3 million** increase in data processing and software costs[36](index=36&type=chunk)[37](index=37&type=chunk) [Provision for Income Taxes](index=10&type=section&id=Provision%20for%20Income%20Taxes) The provision for income taxes was **$5.3 million** in Q1 2025, with an effective tax rate of **28.71%**, decreasing QoQ due to a non-recurring true-up adjustment and increasing YoY due to higher pre-tax income - The effective tax rate was **28.71%** in Q1 2025, compared to **31.24%** in Q4 2024 and **28.94%** in Q1 2024[40](index=40&type=chunk)[41](index=41&type=chunk) - The QoQ decrease in tax provision was due to slightly lower taxable income and a **$0.6 million** provision true-up in Q4 2024 that did not recur[40](index=40&type=chunk) [Balance Sheet and Asset Quality](index=4&type=section&id=Balance%20Sheet%20and%20Asset%20Quality) This section analyzes the company's balance sheet structure, loan and deposit portfolio composition, and asset quality metrics as of Q1 2025 [Balance Sheet Analysis](index=4&type=section&id=Balance%20Sheet%20Summary) As of March 31, 2025, total assets grew to **$4.25 billion**, a **4.73%** increase QoQ, driven by strong loan and cash growth, with total deposits increasing by **5.01%** to **$3.74 billion**, while maintaining approximately **$2.0 billion** in liquidity and no short-term borrowings | (in thousands) | Mar 31, 2025 | Dec 31, 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Assets | $4,245,057 | $4,053,278 | 4.73% | | Total Loans Held for Investment | $3,621,819 | $3,532,686 | 2.52% | | Total Deposits | $3,736,354 | $3,557,994 | 5.01% | | Total Shareholders' Equity | $406,451 | $396,624 | 2.48% | - Total liquidity, including cash and available borrowing capacity, was approximately **$2.0 billion**[16](index=16&type=chunk)[17](index=17&type=chunk) - Insured and collateralized deposits represented **67.55%** of total deposits, up slightly from **66.92%** in the prior quarter[13](index=13&type=chunk) - The company had no short-term borrowings at the end of Q1 2025, consistent with the prior quarter[8](index=8&type=chunk) [Loan and Deposit Portfolio Composition](index=7&type=section&id=Loans%20and%20Deposits%20by%20Type) The loan portfolio as of March 31, 2025, totaled **$3.62 billion**, heavily concentrated in commercial real estate at **$2.94 billion**, while the **$2.80 billion** interest-bearing deposit base is dominated by money market and time accounts Loan Composition (in thousands) | Loan Type | Amount | | :--- | :--- | | Commercial Real Estate | $2,941,201 | | Commercial (Secured & Unsecured) | $205,495 | | Consumer and other | $277,093 | | Other Real Estate & Construction | $199,948 | | **Total Loans Held for Investment** | **$3,621,819** | Interest-Bearing Deposit Composition (in thousands) | Deposit Type | Amount | | :--- | :--- | | Money market accounts | $1,577,473 | | Time accounts | $801,386 | | Interest-bearing transaction accounts | $295,633 | | Savings accounts | $128,210 | | **Total Interest-Bearing Deposits** | **$2,802,702** | [Asset Quality and Allowance for Credit Losses](index=8&type=section&id=Asset%20Quality) Asset quality remained strong in Q1 2025, with nonperforming loans to total loans held for investment stable at **0.05%**, and the allowance for credit losses increasing to **$39.2 million** (**1.08%** of loans) reflecting provisions partially offset by net charge-offs - The ratio of nonperforming loans to loans held for investment remained stable at **0.05%**[27](index=27&type=chunk) - The allowance for credit losses increased by **$1.4 million** to **$39.2 million**, representing **1.08%** of loans held for investment[26](index=26&type=chunk)[28](index=28&type=chunk) - Loans designated as 'watch' decreased from **$123.4 million** to **$112.0 million**, while 'substandard' loans increased slightly from **$2.6 million** to **$3.7 million**[27](index=27&type=chunk) [Supplementary and Non-GAAP Information](index=11&type=section&id=Supplementary%20Information) This section presents unaudited condensed financial data and reconciliations of non-GAAP financial measures to their GAAP equivalents [Condensed Financial Data (Unaudited)](index=12&type=section&id=Condensed%20Financial%20Data%20%28Unaudited%29) This section provides detailed unaudited financial statements for the quarter ended March 31, 2025, with comparative data, including the income statement, balance sheet, and key financial ratios - Provides detailed breakdowns of the income statement, balance sheet, per share data, financial ratios, and credit quality metrics[47](index=47&type=chunk)[48](index=48&type=chunk)[49](index=49&type=chunk) [Non-GAAP Reconciliation](index=16&type=section&id=Non-GAAP%20Reconciliation%20%28Unaudited%29) The company provides reconciliations for non-GAAP financial measures, such as Pre-tax, pre-provision income, which was **$20.3 million** for Q1 2025, to their most directly comparable GAAP measures - The company uses non-GAAP measures like Tangible Book Value Per Share and Pre-tax, Pre-provision Income to supplement GAAP results[51](index=51&type=chunk) Pre-tax, pre-provision income reconciliation (in thousands) | | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | Pre-tax income (GAAP) | $18,391 | $19,367 | $14,961 | | Add: provision for credit losses | $1,900 | $1,300 | $900 | | **Pre-tax, pre-provision income (Non-GAAP)** | **$20,291** | **$20,667** | **$15,861** |

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 ...