Five Star Bancorp(US:FSBC)2026-01-26 23:53Financial Performance - Net income for the three months ended December 31, 2025, was $17.6 million, up from $16.3 million in the previous quarter and $13.3 million year-over-year, representing a 32.4% increase from the same quarter last year[2][10] - Basic earnings per common share increased to $2.90 for the year ended December 31, 2025, compared to $2.26 in 2024, reflecting a 28.4% growth[3][11] - Net income for the year ended December 31, 2025, was $61.606 million, an increase of 35% from $45.671 million in 2024[66] - Net income for the three months ended December 31, 2025, was $17,643 thousand, reflecting a $1,299 thousand increase or 7.95% from the previous quarter[14] - Pre-tax income for the three months ended December 31, 2025, was $23,008,000, an increase from $22,234,000 in the previous quarter and $19,367,000 in the same quarter last year[73] Loan and Deposit Growth - Total loans held for investment increased by $542.2 million, or 15%, year-over-year, reaching $4.07 billion as of December 31, 2025[4][8] - Total deposits rose by $643.1 million, or 18%, year-over-year, with non-wholesale deposits increasing by $738.1 million, or 25%[4][11] - Total loans held for investment increased to $4,074,929 thousand as of December 31, 2025, up from $3,887,259 thousand on September 30, 2025, representing a growth of 4.8%[28] - The average balance of loans increased by $474.1 million, or 13.55%, contributing to the rise in net interest income[26] - The average balance of deposits increased by $627.4 million, or 19.45%, leading to an additional $10.0 million in deposit interest expense for the year[27] Interest Income and Margin - The net interest margin for the year ended December 31, 2025, was 3.55%, up from 3.32% in 2024, driven by loan growth and improved yields[7][11] - Net interest income for the year ended December 31, 2025, was $151.905 million, an increase of 26.9% from $119.711 million in 2024[66] - Net interest income for the three months ended December 31, 2025, was $42,065 thousand, an increase of $2,717 thousand or 6.91% from the previous quarter[14] - Year-over-year, net interest income rose by $8.6 million, or 25.61%, from $33.5 million in Q4 2024 to $42.1 million in Q4 2025[26] - The net interest margin for the same period was 3.66%, an increase of ten basis points from the prior quarter[25] Credit Losses and Nonperforming Loans - The provision for credit losses increased by $2.8 million, or 39.57%, year-over-year, due to loan growth and higher loss rates[11][12] - The allowance for credit losses rose to $44.4 million at December 31, 2025, compared to $37.8 million at December 31, 2024, reflecting a 17.5% increase[30] - The ratio of nonperforming loans to loans held for investment increased from 0.05% at December 31, 2024, to 0.08% at December 31, 2025[12] - Provision for credit losses increased to $2,800 thousand, up $300 thousand or 12.00% from the previous quarter[14] - The provision for credit losses for the three months ended December 31, 2025, was $2,800,000, compared to $2,500,000 in the previous quarter and $1,300,000 in the same quarter last year[73] Expenses and Efficiency - The efficiency ratio improved to 41.03% in 2025, down from 43.19% in 2024, indicating better cost management[4][12] - Non-interest expense for the three months ended December 31, 2025, was $17,657 thousand, an increase of $1,077 thousand or 6.50% from the previous quarter[14] - Total non-interest expense for the year ended December 31, 2025, was $65.008 million, up from $54.493 million in 2024, indicating a rise of 19.3%[66] - Salaries and employee benefits increased to $10,125 thousand for the three months ended December 31, 2025, up 4.21% from $9,716 thousand in the previous quarter[40] - Advertising and promotional expenses increased by $767,000, or 31.81%, to $3.178 million for the year ended December 31, 2025, compared to $2.411 million for the year ended December 31, 2024[49] Shareholder Returns - The Company declared a cash dividend of $0.20 per share for the three months ended December 31, 2025, and an additional dividend of $0.25 per share expected to be paid on February 9, 2026[13] - Book value per share increased to $20.87 as of December 31, 2025, from $18.60 in 2024, representing a growth of 12.2%[66] Market Presence and Future Plans - Five Star Bank expanded its market presence by opening a new office in Walnut Creek and plans to continue focusing on vertical market growth in 2026[5][6] - The company plans to host a live webcast on January 27, 2026, to discuss its fourth quarter and annual financial results[60]