Five Star Bancorp(US:FSBC)2025-10-27 23:48Financial 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]