Five Star Bancorp(US:FSBC) 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][10][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 as of September 30, 2025 [3][7] - Total deposits rose by $208.8 million, or 5.36% (21.45% annualized), totaling $4.103 billion [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][8] Interest Income and Margin - Net interest income for Q3 2025 was $39.3 million, a 7.76% increase from $36.5 million in Q2 2025 and a 29.49% increase from $30.4 million in Q3 2024 [12][21] - Net interest margin improved to 3.56% in Q3 2025, up from 3.53% in Q2 2025 and 3.37% in Q3 2024 [12][21] 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 and 43.37% in Q3 2024 [4][12] Asset Quality - The ratio of nonperforming loans to loans held for investment decreased to 0.05% as of September 30, 2025, down from 0.06% at June 30, 2025 [9][26] - The allowance for credit losses was $42.1 million, representing 1.08% of loans held for investment [25][27] Non-Interest Income - Non-interest income increased by $0.2 million to $1.966 million in Q3 2025, primarily due to an increase in loan-related fees [12][28]