Five Star Bancorp(US:FSBC)2025-11-06 20:01Financial 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].