Five Star Bancorp(FSBC) - 2025 Q2 - Quarterly Results

Executive Summary & Highlights Second Quarter 2025 Performance Overview Five Star Bancorp achieved strong financial performance in Q2 2025, with net income reaching $14.5 million and improvements in ROAA, ROAE, and EPS, alongside a lower efficiency ratio | Metric | June 30, 2025 (Q2) | March 31, 2025 (Q1) | June 30, 2024 (YoY) | | :--------------------------------- | :------------------- | :------------------- | :------------------- | | Net Income (Millions USD) | 14.5 | 13.1 | 10.8 | | Return on Average Assets (ROAA) | 1.37 % | 1.30 % | 1.23 % | | Return on Average Equity (ROAE) | 14.17 % | 13.28 % | 11.72 % | | Pre-tax Income (Thousands USD) | 20,099 | 18,391 | 15,152 | | Basic Earnings Per Share | $0.68 | $0.62 | $0.51 | | Diluted Earnings Per Share | $0.68 | $0.62 | $0.51 | | Efficiency Ratio | 41.03 % | 42.58 % | 44.07 % | CEO Commentary and Strategic Initiatives CEO James E. Beckwith expressed satisfaction with the quarter's results, highlighting organic growth in loans and deposits and plans for new market expansion - The company drove loan and deposit growth through an organic growth strategy, opening new accounts[3] - A new office is planned for the Walnut Creek market in Q3 2025, expanding the San Francisco Bay Area presence, where the team has grown to 34 employees with $456.9 million in deposits[5][9] - The company will continue developing business verticals such as food, agribusiness, and diversified industries, offering global trade services and treasury management tools[5] Key Financial and Operational Highlights The company achieved growth in loans and deposits, improved its efficiency ratio, expanded net interest margin, and maintained low nonperforming loan levels Loan and Deposit Growth (QoQ) | Metric | June 30, 2025 (Thousands USD) | March 31, 2025 (Thousands USD) | Change (Thousands USD) | Change (%) | | :------------------- | :--------------------- | :--------------------- | :------------ | :------- | | Loans Held for Sale | 3,758,025 | 3,621,819 | 136,206 | 3.76 % | | Noninterest-bearing Deposits | 1,004,061 | 933,652 | 70,409 | 7.54 % | | Interest-bearing Deposits | 2,890,561 | 2,802,702 | 87,859 | 3.13 % | | Total Deposits | 3,894,622 | 3,736,354 | 158,268 | 4.24 % | Loan and Deposit Growth (YoY) | Metric | June 30, 2025 (Thousands USD) | June 30, 2024 (Thousands USD) | Change (Thousands USD) | Change (%) | | :------------------- | :--------------------- | :--------------------- | :------------ | :------- | | Loans Held for Sale | 3,758,025 | 3,266,291 | 491,734 | 15.05 % | | Noninterest-bearing Deposits | 1,004,061 | 825,733 | 178,328 | 21.60 % | | Interest-bearing Deposits | 2,890,561 | 2,323,898 | 566,663 | 24.38 % | | Total Deposits | 3,894,622 | 3,149,631 | 744,991 | 23.66 % | - The ratio of nonperforming loans to loans held for sale increased from 0.05% on March 31, 2025, to 0.06% on June 30, 2025, primarily due to one commercial real estate loan becoming nonaccrual[7] - The Board of Directors declared and paid a cash dividend of $0.20 per share on April 17, 2025, and again declared an equivalent dividend on July 17, 2025[8] - The efficiency ratio decreased from 42.58% in Q1 2025 to 41.03% in Q2 2025, demonstrating continued effective expense management[9] - Net interest margin increased from 3.45% in Q1 2025 to 3.53% in Q2 2025[9] - The company had no short-term borrowings as of June 30, 2025, and March 31, 2025[9] Summary of Operating Results Q2 2025 vs. Q1 2025 Net income increased by 10.66% quarter-over-quarter in Q2 2025, driven by higher net interest income and improved noninterest income, partially offset by increased provision for credit losses and noninterest expense Q2 2025 vs. Q1 2025 Operating Data | Metric (Thousands USD) | June 30, 2025 | March 31, 2025 | Change (Thousands USD) | Change (%) | | :------------------- | :------------ | :------------ | :------------ | :------- | | Net Interest Income | 36,515 | 33,977 | 2,538 | 7.47 % | | Provision for Credit Losses | 2,500 | 1,900 | 600 | 31.58 % | | Noninterest Income | 1,810 | 1,359 | 451 | 33.19 % | | Noninterest Expense | 15,726 | 15,045 | 681 | 4.53 % | | Pre-tax Income | 20,099 | 18,391 | 1,708 | 9.29 % | | Net Income | 14,508 | 13,111 | 1,397 | 10.66 % | | Basic Earnings Per Share | $0.68 | $0.62 | $0.06 | 9.68 % | | Diluted Earnings Per Share | $0.68 | $0.62 | $0.06 | 9.68 % | - The increase in net interest income was primarily due to loan growth and a higher average yield on loans, partially offset by increased interest expense from deposit growth[10] - The increase in noninterest income was mainly due to an overall improvement in venture capital fund investment income[10] - The increase in noninterest expense was primarily related to higher travel, conference, training, and advertising expenses associated with the expansion of the business development team[10] Q2 2025 vs. Q2 2024 Net income increased by 34.56% year-over-year in Q2 2025, driven by significant growth in net interest income and improved noninterest income, partially offset by higher noninterest expense and provision for credit losses Q2 2025 vs. Q2 2024 Operating Data | Metric (Thousands USD) | June 30, 2025 | June 30, 2024 | Change (Thousands USD) | Change (%) | | :------------------- | :------------ | :------------ | :------------ | :------- | | Net Interest Income | 36,515 | 29,092 | 7,423 | 25.52 % | | Provision for Credit Losses | 2,500 | 2,000 | 500 | 25.00 % | | Noninterest Income | 1,810 | 1,573 | 237 | 15.07 % | | Noninterest Expense | 15,726 | 13,513 | 2,213 | 16.38 % | | Pre-tax Income | 20,099 | 15,152 | 4,947 | 32.65 % | | Net Income | 14,508 | 10,782 | 3,726 | 34.56 % | | Basic Earnings Per Share | $0.68 | $0.51 | $0.17 | 33.33 % | | Diluted Earnings Per Share | $0.68 | $0.51 | $0.17 | 33.33 % | - The increase in net interest income was primarily due to loan growth and a higher average yield on loans, partially offset by increased interest expense from deposit growth[11] - The increase in noninterest income was mainly due to an overall improvement in venture capital fund investment income, partially offset by a decrease in loan sales volume[11] - The increase in noninterest expense was primarily due to higher salaries and employee benefits expenses resulting from an increase in headcount[11] Balance Sheet Analysis Balance Sheet Overview (QoQ) Total assets and liabilities increased quarter-over-quarter as of June 30, 2025, primarily driven by growth in loans and deposits, with shareholder equity also growing Balance Sheet Data (June 30, 2025 vs. March 31, 2025) | Metric (Thousands USD) | June 30, 2025 | March 31, 2025 | Change (Thousands USD) | Change (%) | | :------------------- | :------------ | :------------ | :------------ | :------- | | Total Assets | 4,413,473 | 4,245,057 | 168,416 | 3.97 % | | Cash and Cash Equivalents | 483,810 | 452,571 | 31,239 | 6.90 % | | Total Loans Held for Sale | 3,758,025 | 3,621,819 | 136,206 | 3.76 % | | Total Liabilities | 3,996,731 | 3,838,606 | 158,125 | 4.12 % | | Total Deposits | 3,894,622 | 3,736,354 | 158,268 | 4.24 % | | Total Stockholders' Equity | 416,742 | 406,451 | 10,291 | 2.53 % | Balance Sheet Overview (YoY) Total assets, liabilities, and shareholder equity significantly increased as of June 30, 2025, compared to December 31, 2024, driven by growth in loans, cash, and interest-bearing deposits Balance Sheet Data (June 30, 2025 vs. December 31, 2024) | Metric (Thousands USD) | June 30, 2025 | December 31, 2024 | Change (Thousands USD) | Change (%) | | :------------------- | :------------ | :------------ | :------------ | :------- | | Total Assets | 4,413,473 | 4,053,278 | 360,195 | 8.89 % | | Cash and Cash Equivalents | 483,810 | 352,343 | 131,467 | 37.31 % | | Total Loans Held for Sale | 3,758,025 | 3,532,686 | 225,339 | 6.38 % | | Total Liabilities | 3,996,731 | 3,656,654 | 340,077 | 9.30 % | | Total Deposits | 3,894,622 | 3,557,994 | 336,628 | 9.46 % | | Total Stockholders' Equity | 416,742 | 396,624 | 20,118 | 5.07 % | - The increase in total assets was primarily composed of a $225.3 million increase in loans held for sale and a $131.5 million increase in cash and cash equivalents[17] - The increase in total liabilities was primarily due to a $255.2 million increase in interest-bearing deposits, with money market deposits and time deposits increasing by $179.4 million and $101.9 million, respectively[18] - The increase in stockholders' equity was primarily due to the recognition of $27.6 million in net income and a $0.4 million increase in accumulated other comprehensive income, partially offset by $8.5 million in cash dividends paid[19] Deposit Composition and Trends Total deposits reached $3.9 billion as of June 30, 2025, growing 4.24% quarter-over-quarter, driven by increases in both interest-bearing and noninterest-bearing deposits, with an improved non-wholesale deposit mix - Insured and collateralized deposits were approximately $2.6 billion, representing 67.06% of total deposits as of June 30, 2025, with net uninsured and uncollateralized deposits at approximately $1.3 billion[14] - Non-wholesale deposit accounts constituted 83.14% of total deposits, up from 81.53% in the prior quarter[15] - Total deposits increased by $158.3 million, with interest-bearing deposits growing primarily from $87.4 million in new money market deposit accounts and noninterest-bearing deposits growing from $68.7 million in new accounts[16] Liquidity Position As of June 30, 2025, cash and cash equivalents represented 12.42% of total deposits, with total liquidity increasing to approximately $2.2 billion, indicating a robust liquidity profile Sources of Liquidity (June 30, 2025) | Source (Thousands USD) | Credit Line | Letters of Credit Issued | Borrowings | Available Line | | :----------------------- | :--------- | :----------- | :----- | :--------- | | Federal Home Loan Bank (FHLB) Advances | 1,290,446 | 732,500 | — | 557,946 | | Federal Reserve Discount Window | 926,573 | — | — | 926,573 | | Correspondent Bank Credit Lines | 185,000 | — | — | 185,000 | | Cash and Cash Equivalents | — | — | — | 483,810 | | Total | 2,402,019 | 732,500 | — | 2,153,329 | - Cash and cash equivalents totaled $483.8 million, representing 12.42% of total deposits as of June 30, 2025[20] - Total liquidity, including cash and cash equivalents and unused immediate borrowing capacity, was approximately $2.2 billion, up from $2.0 billion as of March 31, 2025[20] Net Interest Income and Margin Net Interest Income Trends (QoQ & YoY) Net interest income increased by 7.47% quarter-over-quarter and 25.52% year-over-year in Q2 2025, primarily due to higher interest income, partially offset by increased interest expense, with net interest margin also rising Net Interest Income and Margin (QoQ) | Metric (Thousands USD) | June 30, 2025 | March 31, 2025 | Change (Thousands USD) | Change (%) | | :------------------- | :------------ | :------------ | :------------ | :------- | | Interest and Fee Income | 60,580 | 57,087 | 3,493 | 6.12 % | | Interest Expense | 24,065 | 23,110 | 955 | 4.13 % | | Net Interest Income | 36,515 | 33,977 | 2,538 | 7.47 % | | Net Interest Margin | 3.53 % | 3.45 % | - | +8 bps | Net Interest Income and Margin (YoY) | Metric (Thousands USD) | June 30, 2025 | June 30, 2024 | Change (Thousands USD) | Change (%) | | :------------------- | :------------ | :------------ | :------------ | :------- | | Interest and Fee Income | 60,580 | 48,998 | 11,582 | 23.64 % | | Interest Expense | 24,065 | 19,906 | 4,159 | 20.89 % | | Net Interest Income | 36,515 | 29,092 | 7,423 | 25.52 % | | Net Interest Margin | 3.53 % | 3.39 % | - | +14 bps | Detailed Interest Income and Expense Analysis Growth in net interest income was primarily driven by increased average loan balances and higher average loan yields, despite an increase in interest expense due to higher average deposit balances Interest Income and Expense Composition (Q2 2025) | Item | Average Balance (Thousands USD) | Income/Expense (Thousands USD) | Yield/Rate (%) | | :----------------------- | :---------------- | :----------------- | :-------------- | | Assets | | | | | Interest-bearing Deposits in Banks | 361,866 | 3,987 | 4.42 % | | Investment Securities | 97,886 | 577 | 2.37 % | | Loans Held for Sale | 3,691,616 | 56,016 | 6.09 % | | Liabilities | | | | | Interest-bearing Transaction Accounts | 283,369 | 1,043 | 1.48 % | | Savings Accounts | 121,692 | 801 | 2.64 % | | Money Market Accounts | 1,647,628 | 13,270 | 3.23 % | | Time Accounts | 726,295 | 7,790 | 4.30 % | | Subordinated Notes and Other Borrowings | 73,967 | 1,161 | 6.30 % | - Net interest income increased by $2.5 million quarter-over-quarter, primarily due to a $123.6 million (3.46%) increase in average loan balances and a 7 basis point increase in the average yield on loans[23] - Net interest income increased by $7.4 million year-over-year, primarily due to a $493.7 million (15.44%) increase in average loan balances and a 26 basis point increase in the average yield on loans[24] - The increase in interest expense was primarily driven by a $150.2 million (4.19%) increase in average deposit balances, though the average rate was 2 basis points lower than the prior quarter[23] Loan and Deposit Portfolio Loans by Type Commercial real estate loans remained the largest loan category as of June 30, 2025, showing quarter-over-quarter growth, while consumer and other loans also maintained stable growth Loan Balances by Type (Thousands USD) | Loan Type | June 30, 2025 | March 31, 2025 | | :----------------------- | :------------ | :------------ | | Real Estate: Commercial | 3,066,627 | 2,941,201 | | Real Estate: Commercial Land and Development | 1,422 | 3,556 | | Real Estate: Commercial Construction | 112,399 | 113,002 | | Real Estate: Residential Construction | 5,479 | 5,747 | | Real Estate: Residential | 33,132 | 34,053 | | Real Estate: Farmland | 51,579 | 43,643 | | Commercial: Secured | 173,855 | 170,525 | | Commercial: Unsecured | 37,568 | 34,970 | | Consumer and Other | 278,215 | 277,093 | | Total Loans Held for Sale | 3,758,025 | 3,621,819 | Interest-bearing Deposits by Type Money market accounts were the largest interest-bearing deposit category as of June 30, 2025, experiencing significant growth, while time accounts and interest-bearing transaction accounts decreased Interest-bearing Deposit Balances by Type (Thousands USD) | Deposit Type | June 30, 2025 | March 31, 2025 | | :----------------------- | :------------ | :------------ | | Interest-bearing Transaction Accounts | 292,257 | 295,633 | | Money Market Accounts | 1,704,652 | 1,577,473 | | Savings Accounts | 121,567 | 128,210 | | Time Accounts | 772,085 | 801,386 | | Total Interest-bearing Deposits | 2,890,561 | 2,802,702 | Asset Quality Allowance for Credit Losses The allowance for credit losses increased to $40.2 million as of June 30, 2025, primarily due to a $4.6 million provision for credit losses, partially offset by $2.2 million in net charge-offs Allowance for Credit Losses (Thousands USD) | Metric | June 30, 2025 | December 31, 2024 | | :------------------- | :------------ | :------------ | | Allowance for Credit Losses | 40,167 | 37,791 | | Allowance for Credit Losses to Loans Held for Sale | 1.07 % | 1.07 % | - The allowance for credit losses increased by $2.4 million, primarily due to a $4.6 million provision for credit losses during the period, partially offset by $2.2 million in net charge-offs, mainly attributable to commercial and industrial loans[27] Nonperforming Assets The ratio of nonperforming loans to loans held for sale slightly increased to 0.06% as of June 30, 2025, remaining at a low level, with a decrease in watch list loans and an increase in substandard loans Nonperforming Asset Metrics | Metric | June 30, 2025 | December 31, 2024 | | :----------------------- | :------------ | :------------ | | Nonperforming Loans to Loans Held for Sale | 0.06 % | 0.05 % | | Watch List Loans (Millions USD) | 106.5 | 123.4 | | Substandard Loans (Millions USD) | 4.2 | 2.6 | | Doubtful Risk Grade Loans | None | None | Non-Interest Income Non-Interest Income Trends (QoQ) Noninterest income increased by 33.19% quarter-over-quarter in Q2 2025, primarily driven by a significant increase in other income, mainly due to improved venture capital fund investment returns Non-Interest Income Composition (Q2 2025 vs. Q1 2025) | Item (Thousands USD) | June 30, 2025 | March 31, 2025 | Change (Thousands USD) | Change (%) | | :----------------------- | :------------ | :------------ | :------------ | :------- | | Deposit Account Service Charges | 196 | 215 | (19) | (8.84)% | | Gain on Sale of Loans | 119 | 125 | (6) | (4.80)% | | Loan Related Fees | 468 | 448 | 20 | 4.46 % | | FHLB Stock Dividends | 325 | 331 | (6) | (1.81)% | | Bank-Owned Life Insurance Income | 220 | 161 | 59 | 36.65 % | | Other Income | 482 | 79 | 403 | 510.13 % | | Total Noninterest Income | 1,810 | 1,359 | 451 | 33.19 % | - The increase in other income primarily resulted from an overall improvement in venture capital fund investment income during Q2 2025[30] Non-Interest Income Trends (YoY) Noninterest income increased by 15.07% year-over-year in Q2 2025, driven by higher other income and loan-related fees, but significantly impacted by a decrease in gain on sale of loans Non-Interest Income Composition (Q2 2025 vs. Q2 2024) | Item (Thousands USD) | June 30, 2025 | June 30, 2024 | Change (Thousands USD) | Change (%) | | :----------------------- | :------------ | :------------ | :------------ | :------- | | Deposit Account Service Charges | 196 | 189 | 7 | 3.70 % | | Gain on Sale of Loans | 119 | 449 | (330) | (73.50)% | | Loan Related Fees | 468 | 370 | 98 | 26.49 % | | FHLB Stock Dividends | 325 | 329 | (4) | (1.22)% | | Bank-Owned Life Insurance Income | 220 | 158 | 62 | 39.24 % | | Other Income | 482 | 78 | 404 | 517.95 % | | Total Noninterest Income | 1,810 | 1,573 | 237 | 15.07 % | - The decrease in gain on sale of loans was primarily associated with a general decrease in loan sales volume, despite an improved effective yield on loans sold[31] - The increase in other income primarily resulted from an overall improvement in venture capital fund investment income during Q2 2025[32] Non-Interest Expense Non-Interest Expense Trends (QoQ) Noninterest expense increased by 4.53% quarter-over-quarter in Q2 2025, driven by higher advertising, loan-related fees, and other operating expenses, while salaries and employee benefits slightly decreased Non-Interest Expense Composition (Q2 2025 vs. Q1 2025) | Item (Thousands USD) | June 30, 2025 | March 31, 2025 | Change (Thousands USD) | Change (%) | | :----------------------- | :------------ | :------------ | :------------ | :------- | | Salaries and Employee Benefits | 8,910 | 9,134 | (224) | (2.45)% | | Advertising | 865 | 522 | 343 | 65.71 % | | Loan Related Expenses | 423 | 319 | 104 | 32.60 % | | Other Operating Expenses | 1,975 | 1,608 | 367 | 22.82 % | | Total Noninterest Expense | 15,726 | 15,045 | 681 | 4.53 % | - The decrease in salaries and employee benefits was primarily due to an increase in deferred loan origination costs, partially offset by higher commission expense[33] - The increase in advertising expense was primarily to support the expansion of the banking business development team[34] - The increase in other operating expenses was primarily due to higher travel and conference training expenses[35] Non-Interest Expense Trends (YoY) Noninterest expense increased by 16.38% year-over-year in Q2 2025, driven by higher salaries and employee benefits, data processing and software, professional services, and advertising expenses Non-Interest Expense Composition (Q2 2025 vs. Q2 2024) | Item (Thousands USD) | June 30, 2025 | June 30, 2024 | Change (Thousands USD) | Change (%) | | :----------------------- | :------------ | :------------ | :------------ | :------- | | Salaries and Employee Benefits | 8,910 | 7,803 | 1,107 | 14.19 % | | Data Processing and Software | 1,508 | 1,235 | 273 | 22.11 % | | FDIC Insurance | 470 | 390 | 80 | 20.51 % | | Professional Services | 918 | 767 | 151 | 19.69 % | | Advertising | 865 | 615 | 250 | 40.65 % | | Loan Related Expenses | 423 | 297 | 126 | 42.42 % | | Other Operating Expenses | 1,975 | 1,760 | 215 | 12.22 % | | Total Noninterest Expense | 15,726 | 13,513 | 2,213 | 16.38 % | - The increase in salaries and employee benefits was primarily due to a 16.58% increase in headcount and higher commission payments[36] - Data processing and software expenses increased due to higher usage of digital banking platforms, increased transaction volumes from a greater number of loan and deposit accounts, and more licenses required for new users[37] - Professional services expenses increased primarily due to higher compensation and business development consulting services[37] Provision for Income Taxes Impact of New Tax Legislation The "One Big Beautiful Bill Act," signed on July 4, 2025, introduces federal tax law changes, including immediate expensing of domestic R&D and 100% bonus depreciation, with the company currently assessing their future impact - The "One Big Beautiful Bill Act" was signed into law on July 4, 2025, including several federal tax law changes such as the restoration of immediate expensing for domestic R&D expenditures and 100% bonus depreciation[40] - These changes are not reflected in the provision for income taxes as of June 30, 2025, and the company is evaluating their impact on future periods[40] Tax Provision Analysis (QoQ & YoY) The provision for income taxes increased both quarter-over-quarter and year-over-year in Q2 2025 due to higher taxable income, partially offset by a decrease in the effective tax rate from California tax law changes Income Tax Provision and Effective Tax Rate | Metric | June 30, 2025 (Q2) | March 31, 2025 (Q1) | June 30, 2024 (YoY) | | :------------------- | :------------------- | :------------------- | :------------------- | | Income Tax Provision (Thousands USD) | 5,591 | 5,280 | 4,370 | | Effective Tax Rate | 27.82 % | 28.71 % | 28.84 % | - The increase in income tax provision was primarily due to higher taxable income, partially offset by a net $0.2 million reduction in the provision due to California tax law changes (transition from a three-factor apportionment formula to a single sales factor formula)[41][42] Company Information Webcast Details Five Star Bancorp will host a webcast on July 24, 2025, to discuss its second-quarter financial results, with a 90-day replay available - The company will host a webcast on July 24, 2025, at 1:00 PM ET (10:00 AM PT) to discuss its second-quarter financial results[43] - The webcast will be archived on the company's website for 90 days[43] About Five Star Bancorp Five Star Bancorp is a bank holding company headquartered in Rancho Cordova, California, operating through its wholly-owned subsidiary, Five Star Bank, with eight branches in Northern California - Five Star Bancorp is a bank holding company headquartered in Rancho Cordova, California[44] - The company operates through its wholly-owned bank subsidiary, Five Star Bank, with eight branches in Northern California[44] Forward-Looking Statements This press release contains forward-looking statements, based on company expectations and subject to known and unknown risks and uncertainties, where actual results may differ materially from expectations, with no obligation to update unless legally required - This press release contains forward-looking statements, representing the company's expectations and beliefs regarding future events, business plans, and operating results[45] - Forward-looking statements are based on company expectations and are subject to known and unknown risks and uncertainties, where actual results may differ materially from expectations[45] - The company undertakes no obligation to revise or update forward-looking statements unless expressly required by law[46] Investor and Media Contacts Contact information for investor relations and media inquiries, including names, titles, company, phone numbers, and email addresses, is provided for further assistance - Investor Contact: Heather C. Luck, Chief Financial Officer, Phone: (916) 626-5008, Email: hluck@fivestarbank.com[55] - Media Contact: Shelley R. Wetton, Chief Marketing Officer, Phone: (916) 284-7827, Email: swetton@fivestarbank.com[55] Condensed Financial Data (Unaudited) Revenue and Expense Data This section provides detailed revenue and expense data for Q2 2025, Q1 2025, and Q2 2024, including key financial metrics such as interest income, interest expense, net interest income, provision for credit losses, noninterest income, and noninterest expense Revenue and Expense Data (Thousands USD) | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :----------------------- | :------------ | :------------ | :------------ | | Interest and Fee Income | 60,580 | 57,087 | 48,998 | | Interest Expense | 24,065 | 23,110 | 19,906 | | Net Interest Income | 36,515 | 33,977 | 29,092 | | Provision for Credit Losses | 2,500 | 1,900 | 2,000 | | Total Noninterest Income | 1,810 | 1,359 | 1,573 | | Total Noninterest Expense | 15,726 | 15,045 | 13,513 | | Net Income | 14,508 | 13,111 | 10,782 | Share and Per Share Data This section lists key per-share data for the reporting period, including earnings per share, book value per share, and weighted average common shares outstanding, reflecting shareholder value and share structure changes Share and Per Share Data | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :----------------------- | :------------ | :------------ | :------------ | | Basic Earnings Per Share | $0.68 | $0.62 | $0.51 | | Diluted Earnings Per Share | $0.68 | $0.62 | $0.51 | | Book Value Per Share | $19.51 | $19.06 | $17.85 | | Weighted Average Basic Common Shares | 21,225,831 | 21,209,881 | 21,039,798 | | Period-End Shares Outstanding | 21,360,991 | 21,329,235 | 21,319,583 | Balance Sheet Data This section provides detailed balance sheet data at the end of the reporting period, including cash, investment securities, loans, deposits, liabilities, and stockholders' equity, illustrating the company's financial position Balance Sheet Data (Thousands USD) | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :----------------------- | :------------ | :------------ | :------------ | | Total Assets | 4,413,473 | 4,245,057 | 3,634,217 | | Loans Held for Sale | 3,758,025 | 3,621,819 | 3,266,291 | | Allowance for Credit Losses | (40,167) | (39,224) | (35,406) | | Total Deposits | 3,894,622 | 3,736,354 | 3,149,631 | | Total Liabilities | 3,996,731 | 3,838,606 | 3,253,747 | | Total Stockholders' Equity | 416,742 | 406,451 | 380,470 | Quarterly Average Balance Data This section lists the company's average loans, average interest-earning assets, average total assets, average deposits, and average total equity for the reporting period, providing a basis for analyzing asset-liability structure and profitability Quarterly Average Balance Data (Thousands USD) | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :----------------------- | :------------ | :------------ | :------------ | | Average Loans Held for Sale | 3,691,616 | 3,567,992 | 3,197,921 | | Average Interest-Earning Assets | 4,151,368 | 3,997,037 | 3,452,676 | | Average Total Assets | 4,253,000 | 4,090,580 | 3,537,230 | | Average Deposits | 3,736,018 | 3,585,782 | 3,049,919 | | Average Total Equity | 410,609 | 400,501 | 370,135 | Credit Quality Ratios This section presents the company's credit quality ratios at the end of the reporting period, including allowance for credit losses to nonperforming loans, nonperforming loans to loans held for sale, and nonperforming assets to total assets, reflecting asset quality Credit Quality Ratios | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :----------------------- | :------------ | :------------ | :------------ | | Allowance for Credit Losses to Nonperforming Loans | 1,763.26 % | 2,222.32 % | 1,882.30 % | | Nonperforming Loans to Loans Held for Sale | 0.06 % | 0.05 % | 0.06 % | | Nonperforming Assets to Total Assets | 0.05 % | 0.04 % | 0.05 % | Capital Ratios This section lists the company's capital ratios at the end of the reporting period, including total stockholders' equity to total assets, total capital to risk-weighted assets, Tier 1 capital to risk-weighted assets, common equity Tier 1 capital to risk-weighted assets, and Tier 1 leverage ratio, demonstrating capital adequacy Capital Ratios | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :----------------------- | :------------ | :------------ | :------------ | | Total Stockholders' Equity to Total Assets | 9.44 % | 9.57 % | 10.47 % | | Total Capital (to Risk-Weighted Assets) | 13.72 % | 13.97 % | 14.38 % | | Tier 1 Capital (to Risk-Weighted Assets) | 10.85 % | 11.00 % | 11.27 % | | Common Equity Tier 1 Capital (to Risk-Weighted Assets) | 10.85 % | 11.00 % | 11.27 % | | Tier 1 Leverage Ratio | 10.03 % | 10.17 % | 11.05 % | Non-GAAP Reconciliation (Unaudited) Explanation of Non-GAAP Measures The company uses non-GAAP financial measures to supplement GAAP analysis, finding them useful for management and investors, while acknowledging their limitations and advising against their use as GAAP substitutes - The company uses non-GAAP financial measures to supplement its analysis of GAAP financial condition, operating results, and cash flows[51] - Non-GAAP measures have limitations and should not be considered a substitute for GAAP results, and may not be comparable to non-GAAP measures used by other banking companies[51] - Tangible stockholders' equity to tangible assets and tangible book value per share are the same as their corresponding GAAP measures, as the company had no goodwill or other intangible assets during the periods presented[52][53] Pre-tax, Pre-provision Income Reconciliation Pre-tax, pre-provision income, defined as pre-tax income plus provision for credit losses, is a metric management uses to assess the company's ability to generate operating earnings and capital - Pre-tax, pre-provision income is defined as pre-tax income plus the provision for credit losses[54] - Management believes this metric is useful for evaluating the company's ability to generate operating earnings and capital[54] Pre-tax, Pre-provision Income Reconciliation (Thousands USD) | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :------------------- | :------------ | :------------ | :------------ | | Pre-tax Income | 20,099 | 18,391 | 15,152 | | Add: Provision for Credit Losses | 2,500 | 1,900 | 2,000 | | Pre-tax, Pre-provision Income | 22,599 | 20,291 | 17,152 |