Five Star Bancorp(FSBC) - 2024 Q4 - Annual Results

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].