Five Star Bancorp (FSBC) Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Mon, January 26, 2026 astatine 11:43 AM CST 26 min read

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Tuesday, October 28, 2025 astatine 1 p.m. ET

• President and Chief Executive Officer — James Beckwith

• Executive Vice President and Chief Financial Officer — Heather Luck

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James Beckwith: Thank you for joining america to reappraisal Five Star Bancorp's fiscal results for the 3rd 4th of 2025, which were released yesterday. The merchandise is disposable connected our website astatine fivestarbank.com nether the Investor Relations tab. Joining maine contiguous is Heather Luck, Executive Vice President and Chief Financial Officer. Our 3rd 4th results see outstanding maturation successful loans and halfway deposits attributable to our differentiated lawsuit acquisition and integrated maturation strategy. We support our unwavering committedness to clients and assemblage partners passim Northern California. Financial highlights during the 3rd 4th see $16.3 cardinal of nett income, net per stock of $0.77, instrumentality connected mean assets of 1.44% and instrumentality connected mean equity of 15.35%.

Our nett involvement borderline expanded 3 ground points to 3.56% and our outgo of full deposits declined by 2 ground points to 2.44%. Our ratio ratio was 40.13% for the 3rd quarter. During the 3rd quarter, we saw continued equilibrium expanse maturation arsenic loans held for concern grew by $129.2 cardinal oregon 14% connected an annualized basis. Total deposits accrued by astir $208.8 cardinal oregon 21% connected an annualized basis. During the quarter, non-wholesale deposits accrued by $359 cardinal oregon 11%, portion wholesale deposits decreased by $150.2 cardinal oregon 23%. Our plus prime remains beardown with nonperforming loans representing lone 5 ground points of full loans held for investment.

We proceed to beryllium good capitalized, with each superior ratios good supra regulatory thresholds for the quarter. On October 16, our committee declared a currency dividend of $0.20 per stock connected the company's communal stock, expected to beryllium paid successful November. We proceed to present worth to our shareholders. Our full assets accrued during the 3rd 4th by $228.3 million, mostly driven by indebtedness maturation wrong the commercialized existent property portfolio, which grew by $77.7 million. Our indebtedness pipeline remains strong. The recognition prime of loans remained beardown owed to our blimpish underwriting practices, robust monitoring passim the beingness of a indebtedness and our relationship-based attack to lending.

As a result, we person a precise debased measurement of nonperforming loans, which declined by $149,000 during the 3rd quarter. We recorded a $2.5 cardinal proviso for recognition losses during the quarter, chiefly owed to indebtedness growth. The summation of our full liabilities during the 3rd 4th was a effect of maturation successful interest-bearing and noninterest-bearing deposits related to caller accounts. The caller interest-bearing deposit accounts contributed to $171.6 cardinal of wide growth. New non-interest-bearing deposits contributed to $28.8 cardinal of wide growth. Noninterest-bearing deposits remained accordant astatine 26% of full deposits arsenic of September 30, 2025. Approximately 60% of our deposit relationships totaled much than $5 million.