Globenewswireยท2025-10-27 22:30Core Insights - Five Star Bancorp reported a net income of $16.3 million for Q3 2025, an increase from $14.5 million in Q2 2025 and $10.9 million in Q3 2024 [1][8][11] Financial Performance - Return on average assets (ROAA) improved to 1.44% in Q3 2025 from 1.37% in Q2 2025 and 1.18% in Q3 2024 [2][12] - Return on average equity (ROAE) increased to 15.35% in Q3 2025 from 14.17% in Q2 2025 and 11.31% in Q3 2024 [2][12] - Pre-tax income rose to $22.2 million in Q3 2025, up from $20.1 million in Q2 2025 and $15.2 million in Q3 2024 [2][12] - Basic and diluted earnings per share were both $0.77 in Q3 2025, compared to $0.68 in Q2 2025 and $0.52 in Q3 2024 [2][12] Loan and Deposit Growth - Total loans held for investment increased by $129.2 million, or 3.44% (13.76% annualized), reaching $3.887 billion in Q3 2025 [3][7] - Total deposits grew by $208.8 million, or 5.36% (21.45% annualized), totaling $4.103 billion in Q3 2025 [3][7] - Non-wholesale deposits increased by $359.0 million, or 11.09% (44.34% annualized), while wholesale deposits decreased by $150.2 million, or 22.87% [3][9] Interest Income and Margin - Net interest income rose by $2.8 million, or 7.76%, to $39.3 million in Q3 2025 compared to Q2 2025 [12][24] - Net interest margin increased to 3.56% in Q3 2025 from 3.53% in Q2 2025 [4][12] - Interest and fee income for Q3 2025 was $64.8 million, up from $60.6 million in Q2 2025 [22][24] Cost and Efficiency - Cost of funds decreased to 2.51% in Q3 2025 from 2.53% in Q2 2025 [4][12] - Efficiency ratio improved to 40.13% in Q3 2025 from 41.03% in Q2 2025 [4][12] Asset Quality - The ratio of nonperforming loans to loans held for investment decreased to 0.05% in Q3 2025 from 0.06% in Q2 2025 [10][30] - The allowance for credit losses was $42.1 million, representing 1.08% of loans held for investment [29][31] Strategic Developments - The company opened its ninth full-service office in Walnut Creek, California, to meet demand in the San Francisco Bay Area [5][6] - Total deposits from the San Francisco Bay Area reached $548.9 million as of September 30, 2025 [5][9]