8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of report (Date of earliest event reported): January 27, 2025

FIVE STAR BANCORP

(Exact Name of Registrant as Specified in Charter)

California	001-40379	75-3100966
(State or Other Jurisdiction<br><br>of Incorporation)	(Commission<br><br>File Number)	(I.R.S. Employer<br><br>Identification No.)

3100 Zinfandel Drive, Suite 100, Rancho Cordova, California, 95670

(Address of Principal Executive Offices, and Zip Code)

(916) 626-5000

Registrant’s Telephone Number, Including Area Code

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐	Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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☐	Pre-commencement communication pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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☐	Pre-commencement communication pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, no par value per share	FSBC	The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). Emerging growth company ☑

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02    Results of Operations and Financial Condition

On January 27, 2025, Five Star Bancorp (the “Company”) issued a press release announcing its results of operations and financial condition for the quarter and year ended December 31, 2024. A copy of the press release is attached to this Current Report on Form 8-K as Exhibit 99.1 and is incorporated herein by reference.

This information (including Exhibit 99.1) is being furnished under Item 2.02 hereof and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, and such information shall not be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 7.01    Regulation FD Disclosure

The Company is conducting an earnings call on January 28, 2025 at 10:00 am PT/1:00 pm ET to discuss its fourth quarter and year end 2024 financial results. A copy of the investor presentation to be used during the earnings call is attached to this Current Report on Form 8-K as Exhibit 99.2 and is incorporated herein by reference.

This information (including Exhibit 99.2) is being furnished under Item 7.01 hereof and shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section, and such information shall not be deemed incorporated by reference into any filing under the Securities Act, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01    Financial Statements and Exhibits

(d) Exhibits

Number	Description
99.1	Press Release datedJanuary 27, 2025
99.2	FourthQuarterand Year End2024 Investor Presentation, datedJanuary 28, 2025
104	Cover Page Interactive Data File (embedded within the Inline XBRL)

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	FIVE STAR BANCORP
	By:	/s/ Heather C. Luck
		Name: Heather C. Luck
		Title: Executive Vice President and Chief Financial Officer
Date: January 27, 2025

Document

PRESS RELEASE	FOR IMMEDIATE RELEASE

Five Star Bancorp Announces Quarterly and Annual Results

RANCHO CORDOVA, CA January 27, 2025 (GLOBE NEWSWIRE) – Five Star Bancorp (Nasdaq: FSBC) (“Five Star” or the “Company”), a holding company that operates through its wholly owned banking subsidiary, Five Star Bank (the “Bank”), today reported net income of $13.3 million for the three months ended December 31, 2024, as compared to $10.9 million for the three months ended September 30, 2024 and $10.8 million for the three months ended December 31, 2023. Net income for the year ended December 31, 2024 was $45.7 million, as compared to $47.7 million for the year ended December 31, 2023.

Financial and Other Highlights

Performance highlights and other developments for the Company for the periods noted below included the following:

	Three months ended
(in thousands, except per share and share data)	December 31, 2024			September 30, 2024			December 31, 2023
Return on average assets (“ROAA”)	1.31		%	1.18		%	1.26		%
Return on average equity (“ROAE”)	13.48		%	11.31		%	15.45		%
Pre-tax income	$	19,367		$	15,241		$	15,151
Pre-tax, pre-provision income(1)	$	20,667		$	17,991		$	15,951
Net income	$	13,317		$	10,941		$	10,799
Basic earnings per common share	$	0.63		$	0.52		$	0.63
Diluted earnings per common share	$	0.63		$	0.52		$	0.63
Weighted average basic common shares outstanding	21,182,143			21,182,143			17,175,445
Weighted average diluted common shares outstanding	21,235,318			21,232,758			17,193,114
Shares outstanding at end of period	21,319,083			21,319,583			17,256,989					Year ended
---	---	---	---	---	---	---
(in thousands, except per share and share data)	December 31, 2024			December 31, 2023
ROAA	1.23		%	1.44		%
ROAE	12.72		%	17.85		%
Pre-tax income	$	64,721		$	66,616
Pre-tax, pre-provision income(1)	$	71,671		$	70,616
Net income	$	45,671		$	47,734
Basic earnings per common share	$	2.26		$	2.78
Diluted earnings per common share	$	2.26		$	2.78
Weighted average basic common shares outstanding	20,154,385			17,166,592
Weighted average diluted common shares outstanding	20,205,440			17,187,969
Shares outstanding at end of period	21,319,083			17,256,989

(1) See the section entitled “Non-GAAP Reconciliation (Unaudited)” for a reconciliation of this non-GAAP financial measure.

James E. Beckwith, President and Chief Executive Officer, commented:

“While we focus on the future and maintaining a position of distinction and respect in the markets we serve, we proudly look back at 2024 as another outstanding year of achievement. We experienced consistent, strong financial performance with year-over-year growth in loans and deposits, a consistent shareholder dividend, and stable net interest margin. We also continued our successful execution of our San Francisco market expansion and now have 27 employees in the San Francisco Bay Area who contributed $229.5 million in deposits from June 5, 2023 to December 31, 2024. We have managed expenses and executed on conservative underwriting practices, which are foundational to our success.

Five Star Bank consistently executes on client and community-focused initiatives, and in 2024, we received a Super Premier rating from Findley Reports, an IDC Superior rating, and a Bauer Financial rating of 5 stars (out of five). We were also awarded the prestigious 2023 Raymond James Community Bankers Cup, were among S&P Global Market Intelligence’s 2023 Top 20 Best-Performing Community banks in the nation (with assets between $3 billion and $10 billion), and were ranked fifth on the 2024 Bank Director Magazine (RankingBanking) Best U.S. Banks with assets less than $5 billion. We also received the Greater Sacramento Economic Council’s Sustainability Award recognizing a company that has supported industry growth in the Greater Sacramento region.

In 2024, our senior leadership was recognized by the Sacramento Business Journal with a C-Suite Award, a Women Who Mean Business honor, a 40 Under 40 recognition, and placement on the Power 100 list. Our senior leadership was also recognized on the San Francisco Business Times’ Newsmaker 100 list, as part of the Independent Community Bankers of America’s 40 Under 40: Emerging Community Bank Leaders, among the Association of Latino Professionals for America’s 50 Most Powerful Latinas, and with a National Association of Women Business Owners’ Sacramento Valley Outstanding Women Leaders’ Executive Woman award.

Being recognized as community leaders ensures Five Star Bank remains top of mind in the markets we serve as we continue to build-out our market presence. I am humbled and proud of our team’s accomplishments and look forward to the future.”

Financial highlights included the following:

•The San Francisco Bay Area team, which increased from 24 to 27 employees during the three months ended December 31, 2024, generated deposit balances totaling $229.5 million at December 31, 2024, an increase of $40.4 million from September 30, 2024.

•Cash and cash equivalents were $352.3 million, representing 9.90% of total deposits at December 31, 2024, as compared to 7.38% at September 30, 2024.

•Total deposits increased by $158.0 million, or 4.65%, during the three months ended December 31, 2024, due to increases in both non-wholesale and wholesale deposits, which the Company defines as brokered deposits and public time deposits. During the three months ended December 31, 2024, non-wholesale deposits increased by $8.0 million, or 0.27%, and wholesale deposits increased by $150.0 million, or 36.59%.

•Consistent, disciplined management of expenses contributed to our efficiency ratio of 41.21% for the three months ended December 31, 2024, as compared to 43.37% for the three months ended September 30, 2024.

•For the three months ended December 31, 2024, net interest margin was 3.36%, as compared to 3.37% for the three months ended September 30, 2024 and 3.19% for the three months ended December 31, 2023. For the year ended December 31, 2024, net interest margin was 3.32%, as compared to 3.42% for the year ended December 31, 2023. The effective Federal Funds rate fell to 4.33% as of December 31, 2024 from 4.83% as of September 30, 2024 and 5.33% as of December 31, 2023.

•Other comprehensive loss was $2.6 million during the three months ended December 31, 2024. Unrealized losses, net of tax effect, on available-for-sale securities were $12.4 million as of December 31, 2024. Total carrying value of held-to-maturity and available-for-sale securities represented 0.07% and 2.48% of total interest-earning assets, respectively, as of December 31, 2024.

•The Company’s common equity Tier 1 capital ratio was 11.02% and 10.93% as of December 31, 2024 and September 30, 2024, respectively. The Bank continues to meet all requirements to be considered “well-capitalized” under applicable regulatory guidelines.

•Loan and deposit growth in the three and twelve months ended December 31, 2024 was as follows:

(in thousands)	December 31, 2024		September 30, 2024		Change	% Change
Loans held for investment	$	3,532,686	$	3,460,565		2.08	%
Non-interest-bearing deposits	922,629		906,939		15,690	1.73	%
Interest-bearing deposits	2,635,365		2,493,040		142,325	5.71	%
(in thousands)	December 31, 2024		December 31, 2023		Change	% Change
Loans held for investment	$	3,532,686	$	3,081,719		14.63	%
Non-interest-bearing deposits	922,629		831,101		91,528	11.01	%
Interest-bearing deposits	2,635,365		2,195,795		439,570	20.02	%

All values are in US Dollars.

•The ratio of nonperforming loans to loans held for investment at period end decreased from 0.06% at December 31, 2023 to 0.05% at December 31, 2024.

•The Company’s Board of Directors declared, and the Company subsequently paid, a cash dividend of $0.20 per share during the three months ended December 31, 2024. The Company’s Board of Directors subsequently declared another cash dividend of $0.20 per share on January 16, 2025, which the Company expects to pay on February 10, 2025 to shareholders of record as of February 3, 2025.

Summary Results

Three months ended December 31, 2024, as compared to three months ended September 30, 2024

The Company’s net income was $13.3 million for the three months ended December 31, 2024, as compared to $10.9 million for the three months ended September 30, 2024. Net interest income increased by $3.1 million, primarily due to an increase in interest income driven by a larger average balance of interest-earning assets, partially offset by an increase in interest expense due to a larger average balance of deposits, as compared to September 30, 2024. The provision for credit losses decreased by $1.5 million, reflecting adjustments to expectations for credit losses based on economic trends and forecasts in the three months ended December 31, 2024 compared to the three months ended September 30, 2024. Non-interest income increased by $0.3 million, primarily due to income received on equity investments in venture-backed funds during the three months ended December 31, 2024, combined with a loss from equity investments in venture-backed funds during the three months ended September 30, 2024. Non-interest expense increased by $0.7 million, primarily due to: (i) increased salaries and employee benefits mainly resulting from increased loan production driving higher commissions expense period-over-period; and (ii) increased advertising and promotional expenses due to a larger number of events sponsored and attended period-over-period.

Three months ended December 31, 2024, as compared to three months ended December 31, 2023

The Company’s net income was $13.3 million for the three months ended December 31, 2024, as compared to $10.8 million for the three months ended December 31, 2023. Net interest income increased by $6.8 million, primarily due to an increase in interest income driven by higher average balances and yields on loans, partially offset by an increase in interest expense due to higher average balances and rates on deposits. The provision for credit losses increased by $0.5 million, reflecting adjustments to expectations for credit losses based on economic trends and forecasts in the three months ended December 31, 2024 compared to the three months ended December 31, 2023. Non-interest income decreased by $0.3 million, primarily due to lower swap referral and rate lock fees during the three months ended December 31, 2024 compared to the same quarter of the prior year. Non-interest expense increased by $1.8 million with an increase in salaries and employee benefits related to the Company’s expansion into the San Francisco Bay Area as the leading driver.

Year ended December 31, 2024, as compared to year ended December 31, 2023

The Company’s net income was $45.7 million for the year ended December 31, 2024, as compared to $47.7 million for the year ended December 31, 2023. Net interest income increased by $8.8 million, primarily due to an increase in interest income driven by higher average balances and yields on loans, partially offset by an increase in interest expense due to higher average balances and rates on deposits. The provision for credit losses increased by $3.0 million, or 73.75%, as loan originations in the year ended December 31, 2024 were almost double those for the year ended December 31, 2023. Non-interest income decreased by $1.1 million, primarily due to lower income received on equity investments in venture-backed funds during the year ended December 31, 2024 than during the year ended

December 31, 2023. Non-interest expense increased by $6.7 million with an increase in salaries and employee benefits related to the Company’s expansion into the San Francisco Bay Area as the leading driver.

The following is a summary of the components of the Company’s operating results and performance ratios for the periods indicated:

	Three months ended
(in thousands, except per share data)	December 31, 2024			September 30, 2024			Change	% Change
Selected operating data:
Net interest income	$	33,489		$	30,386			10.21	%
Provision for credit losses	1,300			2,750			(1,450)	(52.73)	%
Non-interest income	1,666			1,381			285	20.64	%
Non-interest expense	14,488			13,776			712	5.17	%
Pre-tax income	19,367			15,241			4,126	27.07	%
Provision for income taxes	6,050			4,300			1,750	40.70	%
Net income	$	13,317		$	10,941			21.72	%
Earnings per common share:
Basic	$	0.63		$	0.52			21.15	%
Diluted	$	0.63		$	0.52			21.15	%
Performance and other financial ratios:
ROAA	1.31		%	1.18		%
ROAE	13.48		%	11.31		%
Net interest margin	3.36		%	3.37		%
Cost of funds	2.65		%	2.72		%
Efficiency ratio	41.21		%	43.37		%

All values are in US Dollars.

	Three months ended
(in thousands, except per share data)	December 31, 2024			December 31, 2023			Change	% Change
Selected operating data:
Net interest income	$	33,489		$	26,678			25.53	%
Provision for credit losses	1,300			800			500	62.50	%
Non-interest income	1,666			1,936			(270)	(13.95)	%
Non-interest expense	14,488			12,663			1,825	14.41	%
Pre-tax income	19,367			15,151			4,216	27.83	%
Provision for income taxes	6,050			4,352			1,698	39.02	%
Net income	$	13,317		$	10,799			23.32	%
Earnings per common share:
Basic	$	0.63		$	0.63			—	%
Diluted	$	0.63		$	0.63			—	%
Performance and other financial ratios:
ROAA	1.31		%	1.26		%
ROAE	13.48		%	15.45		%
Net interest margin	3.36		%	3.19		%
Cost of funds	2.65		%	2.50		%
Efficiency ratio	41.21		%	44.25		%

All values are in US Dollars.

	Year ended
(in thousands, except per share data)	December 31, 2024			December 31, 2023			Change	% Change
Selected operating data:
Net interest income	$	119,711		$	110,880			7.96	%
Provision for credit losses	6,950			4,000			2,950	73.75	%
Non-interest income	6,453			7,511			(1,058)	(14.09)	%
Non-interest expense	54,493			47,775			6,718	14.06	%
Pre-tax income	64,721			66,616			(1,895)	(2.84)	%
Provision for income taxes	19,050			18,882			168	0.89	%
Net income	$	45,671		$	47,734			(4.32)	%
Earnings per common share:
Basic	$	2.26		$	2.78			(18.71)	%
Diluted	$	2.26		$	2.78			(18.71)	%
Performance and other financial ratios:
ROAA	1.23		%	1.44		%
ROAE	12.72		%	17.85		%
Net interest margin	3.32		%	3.42		%
Cost of funds	2.64		%	2.10		%
Efficiency ratio	43.19		%	40.35		%

All values are in US Dollars.

Balance Sheet Summary

(in thousands)	December 31, 2024		December 31, 2023		Change	% Change
Selected financial condition data:
Total assets	$	4,053,278	$	3,593,125		12.81	%
Cash and cash equivalents	352,343		321,576		30,767	9.57	%
Total loans held for investment	3,532,686		3,081,719		450,967	14.63	%
Total investments	100,914		111,160		(10,246)	(9.22)	%
Total liabilities	3,656,654		3,307,351		349,303	10.56	%
Total deposits	3,557,994		3,026,896		531,098	17.55	%
Subordinated notes, net	73,895		73,749		146	0.20	%
Total shareholders’ equity	396,624		285,774		110,850	38.79	%

All values are in US Dollars.

•Insured and collateralized deposits were approximately $2.4 billion, representing 66.92% of total deposits as of December 31, 2024. Net uninsured and uncollateralized deposits were approximately $1.2 billion as of December 31, 2024.

•Commercial and consumer deposit accounts constituted 77.00% of total deposits. Deposit relationships of greater than $5 million represented 61.13% of total deposits and had an average age of approximately 9.28 years as of December 31, 2024.

•Cash and cash equivalents as of December 31, 2024 were $352.3 million, representing 9.90% of total deposits at December 31, 2024, as compared to 10.62% as of December 31, 2023.

•Total liquidity (consisting of cash and cash equivalents and unused and immediately available borrowing capacity as set forth below) was approximately $1.9 billion as of December 31, 2024.

	December 31, 2024
(in thousands)	Line of Credit		Letters of Credit Issued		Borrowings		Available
Federal Home Loan Bank of San Francisco (“FHLB”) advances	$	1,212,209	$	701,500	$	—	$	510,709
Federal Reserve Discount Window	862,136		—		—		862,136
Correspondent bank lines of credit	175,000		—		—		175,000
Cash and cash equivalents	—		—		—		352,343
Total	$	2,249,345	$	701,500	$	—	$	1,900,188

The increase in total assets from December 31, 2023 to December 31, 2024 was primarily due to a $451.0 million increase in total loans held for investment and a $30.8 million increase in cash and cash equivalents, partially offset by a $10.2 million decrease in investments. The $451.0 million increase in total loans held for investment between December 31, 2023 and December 31, 2024 was the result of $1.1 billion in loan originations, partially offset by $263.0 million and $423.0 million in loan payoffs and paydowns, respectively. The $451.0 million increase in total loans held for investment included $281.4 million in purchased loans within the consumer concentration of the loan portfolio. The $30.8 million increase in cash and cash equivalents primarily resulted from net cash inflows related to financing and operating activities of $425.7 million and $52.3 million, respectively, partially offset by net cash outflows related to investing activities of $447.3 million.

The increase in total liabilities from December 31, 2023 to December 31, 2024 was primarily attributable to an increase in deposits of $531.1 million, partially offset by a decrease in other borrowings of $170.0 million. The $531.1 million increase in deposits was largely due to increases in money market, time, and non-interest-bearing demand deposits of $242.9 million, $203.6 million, and $91.5 million, respectively, partially offset by decreases in interest-bearing demand and savings deposits of $5.1 million and $1.8 million, respectively.

The increase in total shareholders’ equity from December 31, 2023 to December 31, 2024 was primarily a result of $80.9 million of additional common stock issued during the year and net income recognized of $45.7 million, partially offset by $16.2 million in cash dividends paid during the period.

Net Interest Income and Net Interest Margin

The following is a summary of the components of net interest income for the periods indicated:

	Three months ended
(in thousands)	December 31, 2024			September 30, 2024			Change	% Change
Interest and fee income	$	57,745		$	52,667			9.64	%
Interest expense	24,256			22,281			1,975	8.86	%
Net interest income	$	33,489		$	30,386			10.21	%
Net interest margin	3.36		%	3.37		%
	Three months ended
(in thousands)	December 31, 2024			December 31, 2023			Change	% Change
Interest and fee income	$	57,745		$	46,180			25.04	%
Interest expense	24,256			19,502			4,754	24.38	%
Net interest income	$	33,489		$	26,678			25.53	%
Net interest margin	3.36		%	3.19		%
	Year ended
(in thousands)	December 31, 2024			December 31, 2023			Change	% Change
Interest and fee income	$	206,951		$	174,382			18.68	%
Interest expense	87,240			63,502			23,738	37.38	%
Net interest income	$	119,711		$	110,880			7.96	%
Net interest margin	3.32		%	3.42		%

All values are in US Dollars.

The following table shows the components of net interest income and net interest margin for the quarterly periods indicated:

	Three months ended
	December 31, 2024						September 30, 2024						December 31, 2023
(in thousands)	Average Balance		Interest Income/Expense		Yield/Rate		Average Balance		Interest Income/Expense		Yield/Rate		Average Balance		Interest Income/Expense		Yield/Rate
Assets
Interest-earning deposits in banks	$	363,828	$	4,335	4.74	%	$	126,266	$	1,657	5.22	%	$	157,775	$	2,100	5.28	%
Investment securities	103,930		607		2.33	%	106,256		620		2.32	%	106,483		651		2.43	%
Loans held for investment and sale	3,498,109		52,803		6.01	%	3,354,050		50,390		5.98	%	3,055,042		43,429		5.64	%
Total interest-earning assets	3,965,867		57,745		5.79	%	3,586,572		52,667		5.84	%	3,319,300		46,180		5.52	%
Interest receivable and other assets, net	91,736						91,965						80,360
Total assets	$	4,057,603					$	3,678,537					$	3,399,660
Liabilities and shareholders’ equity
Interest-bearing transaction accounts	$	298,518	$	1,249	1.66	%	$	302,188	$	1,237	1.63	%	$	291,967	$	1,091	1.48	%
Savings accounts	127,298		887		2.77	%	124,851		979		3.12	%	130,915		891		2.70	%
Money market accounts	1,596,116		13,520		3.37	%	1,578,244		14,688		3.70	%	1,347,111		10,824		3.19	%
Time accounts	617,596		7,438		4.79	%	326,640		4,172		5.08	%	417,434		5,322		5.06	%
Subordinated notes and other borrowings	73,872		1,162		6.25	%	76,988		1,205		6.23	%	88,401		1,374		6.16	%
Total interest-bearing liabilities	2,713,400		24,256		3.56	%	2,408,911		22,281		3.68	%	2,275,828		19,502		3.40	%
Demand accounts	921,881						852,872						821,651
Interest payable and other liabilities	29,234						32,062						24,886
Shareholders’ equity	393,088						384,692						277,295
Total liabilities & shareholders’ equity	$	4,057,603					$	3,678,537					$	3,399,660
Net interest spread					2.23	%					2.16	%					2.12	%
Net interest income/margin			$	33,489	3.36	%			$	30,386	3.37	%			$	26,678	3.19	%

Net interest income during the three months ended December 31, 2024 increased $3.1 million, or 10.21%, to $33.5 million compared to $30.4 million during the three months ended September 30, 2024. Net interest margin totaled 3.36% for the three months ended December 31, 2024, a decrease of one basis point compared to the prior quarter. The increase in net interest income is primarily attributable to an additional $5.1 million in interest income due to a $379.3 million, or 10.58%, increase in the average balance of interest-earning assets during the three months ended December 31, 2024 compared to the prior quarter. The increase in interest income was partially offset by a $2.0 million increase in deposit interest expense due to a $376.6 million, or 11.83%, increase in the average balance of deposits during the three months ended December 31, 2024 compared to the prior quarter.

As compared to the three months ended December 31, 2023, net interest income increased $6.8 million, or 25.53%, to $33.5 million compared to $26.7 million. Net interest margin totaled 3.36% for the three months ended December 31, 2024, an increase of 17 basis points compared to the same quarter of the prior year. The increase in net interest income is primarily attributable to an additional $9.4 million in loan interest income due to a $443.1 million, or 14.50%, increase in the average balance of loans and a 37 basis point improvement in the average yield on loans during the three months ended December 31, 2024 compared to the same quarter of the prior year. The increase in interest income was partially offset by a $5.0 million increase in deposit interest expense due to a $552.3 million, or 18.36%, increase in the average balance of deposits and a 19 basis point increase in the average cost of deposits during the three months ended December 31, 2024 compared to the same quarter of the prior year.

The following table shows the components of net interest income and net interest margin for the annual periods indicated:

	Year ended
	December 31, 2024						December 31, 2023
(in thousands)	Average Balance		Interest Income/Expense		Yield/Rate		Average Balance		Interest Income/Expense		Yield/Rate
Assets
Interest-earning deposits in banks	$	218,156	$	11,080	5.08	%	$	184,103	$	9,069	4.93	%
Investment securities	106,289		2,530		2.38	%	113,515		2,600		2.29	%
Loans held for investment and sale	3,283,874		193,341		5.89	%	2,947,603		162,713		5.52	%
Total interest-earning assets	3,608,319		206,951		5.74	%	3,245,221		174,382		5.37	%
Interest receivable and other assets, net	90,061						75,741
Total assets	$	3,698,380					$	3,320,962
Liabilities and shareholders’ equity
Interest-bearing transaction accounts	$	298,137	$	4,716	1.58	%	$	312,944	$	3,321	1.06	%
Savings accounts	124,208		3,584		2.89	%	140,060		3,073		2.19	%
Money market accounts	1,533,405		53,750		3.51	%	1,263,539		33,932		2.69	%
Time accounts	412,007		20,348		4.94	%	372,557		17,535		4.71	%
Subordinated notes and other borrowings	77,335		4,842		6.26	%	93,279		5,641		6.05	%
Total interest-bearing liabilities	2,445,092		87,240		3.57	%	2,182,379		63,502		2.91	%
Demand accounts	858,789						844,057
Interest payable and other liabilities	35,331						27,127
Shareholders’ equity	359,168						267,399
Total liabilities & shareholders’ equity	$	3,698,380					$	3,320,962
Net interest spread					2.17	%					2.46	%
Net interest income/margin			$	119,711	3.32	%			$	110,880	3.42	%

Net interest income during the year ended December 31, 2024 increased $8.8 million, or 7.96%, to $119.7 million compared to $110.9 million during the year ended December 31, 2023. Net interest margin totaled 3.32% for the year ended December 31, 2024, a decrease of 10 basis points compared to the prior year. The increase in net interest income is primarily attributable to an additional $30.6 million in loan interest income due to a $336.3 million, or 11.41%, increase in the average balance of loans and a 37 basis point improvement in the average yield on loans as compared to the prior year. The increase in interest income was partially offset by an additional $24.5 million in deposit interest expense due to a $293.4 million, or 10.00%, increase in the average balance of deposits and a 58 basis point increase in the average cost of deposits compared to the prior year.

Loans by Type

The following table provides loan balances, excluding deferred loan fees, by type as of December 31, 2024:

(in thousands)
Real estate:
Commercial	$	2,857,173
Commercial land and development	3,849
Commercial construction	111,318
Residential construction	4,561
Residential	32,774
Farmland	47,241
Commercial:
Secured	170,548
Unsecured	27,558
Consumer and other	279,584
Net deferred loan fees	(1,920)
Total loans held for investment	$	3,532,686

Interest-bearing Deposits

The following table provides interest-bearing deposit balances by type as of December 31, 2024:

(in thousands)
Interest-bearing demand accounts	$	315,217
Money market accounts	1,525,293
Savings accounts	124,702
Time accounts	670,153
Total interest-bearing deposits	$	2,635,365

Asset Quality

Allowance for Credit Losses

At December 31, 2024, the Company’s allowance for credit losses was $37.8 million, as compared to $34.4 million at December 31, 2023. The $3.4 million increase in the allowance is due to a $7.5 million provision for credit losses recorded during the twelve months ended December 31, 2024, partially offset by net charge-offs of $4.1 million, mainly attributable to commercial and industrial loans, during the same period.

The Company’s ratio of nonperforming loans to loans held for investment decreased from 0.06% at December 31, 2023 to 0.05% at December 31, 2024. Loans designated as watch increased from $39.6 million to $123.4 million between December 31, 2023 and December 31, 2024. Loans designated as substandard increased from $2.0 million to $2.6 million between December 31, 2023 and December 31, 2024. There were no loans with doubtful risk grades at December 31, 2024 or December 31, 2023.

A summary of the allowance for credit losses by loan class is as follows:

	December 31, 2024				December 31, 2023
(in thousands)	Amount		% of Total		Amount		% of Total
Real estate:
Commercial	$	25,864	68.44	%	$	29,015	84.27	%
Commercial land and development	78		0.21	%	178		0.52	%
Commercial construction	2,268		6.00	%	718		2.08	%
Residential construction	64		0.17	%	89		0.26	%
Residential	270		0.71	%	151		0.44	%
Farmland	607		1.61	%	399		1.16	%
	29,151		77.14	%	30,550		88.73	%
Commercial:
Secured	5,866		15.52	%	3,314		9.62	%
Unsecured	278		0.74	%	189		0.55	%
	6,144		16.26	%	3,503		10.17	%
Consumer and other	2,496		6.60	%	378		1.10	%
Total allowance for credit losses	$	37,791	100.00	%	$	34,431	100.00	%

The ratio of allowance for credit losses to loans held for investment was 1.07% at December 31, 2024, as compared to 1.12% at December 31, 2023.

Non-interest Income

The following table presents the key components of non-interest income for the periods indicated:

	Three months ended
(in thousands)	December 31, 2024		September 30, 2024		Change	% Change
Service charges on deposit accounts	$	179	$	165		8.48	%
Gain on sale of loans	150		306		(156)	(50.98)	%
Loan-related fees	400		406		(6)	(1.48)	%
FHLB stock dividends	332		327		5	1.53	%
Earnings on bank-owned life insurance	182		162		20	12.35	%
Other income	423		15		408	2,720.00	%
Total non-interest income	$	1,666	$	1,381		20.64	%

All values are in US Dollars.

Gain on sale of loans. The decrease related primarily to an overall decline in the volume of loans sold during the three months ended December 31, 2024 compared to the three months ended September 30, 2024. During the three months ended December 31, 2024, approximately $2.0 million of loans were sold with an effective yield of 7.60%, as compared to approximately $4.4 million of loans sold with an effective yield of 7.03% during the three months ended September 30, 2024.

Other income. The increase resulted primarily from $0.3 million of income received on equity investments in venture-backed funds during the three months ended December 31, 2024, combined with a $0.1 million loss from equity investments in venture-backed funds during the three months ended September 30, 2024.

The following table presents the key components of non-interest income for the periods indicated:

	Three months ended
(in thousands)	December 31, 2024		December 31, 2023		Change	% Change
Service charges on deposit accounts	$	179	$	165		8.48	%
Net gain (loss) on sale of securities	—		(167)		167	(100.00)	%
Gain on sale of loans	150		317		(167)	(52.68)	%
Loan-related fees	400		667		(267)	(40.03)	%
FHLB stock dividends	332		314		18	5.73	%
Earnings on bank-owned life insurance	182		155		27	17.42	%
Other income	423		485		(62)	(12.78)	%
Total non-interest income	$	1,666	$	1,936		(13.95)	%

All values are in US Dollars.

Net gain (loss) on sale of securities. The decrease in the net loss on sale of securities related to the sale of two municipal securities with a par value of approximately $0.8 million for a loss of approximately $0.2 million during the three months ended December 31, 2023, with no sales occurring during the three months ended December 31, 2024.

Gain on sale of loans. The decrease resulted from an overall decline in the volume of loans sold during the three months ended December 31, 2024, as compared to the three months ended December 31, 2023. During the three months ended December 31, 2024, approximately $2.0 million of loans were sold with an effective yield of 7.60%, as compared to approximately $5.9 million of loans sold with an effective yield of 5.41% during the three months ended December 31, 2023.

Loan-related fees. The decrease resulted from the recognition of $0.2 million lower rate lock fees and $0.1 million lower swap referral fees during the three months ended December 31, 2024 than the three months ended December 31, 2023.

Non-interest income for the periods indicated:

	Year ended
(in thousands)	December 31, 2024		December 31, 2023		Change	% Change
Service charges on deposit accounts	$	721	$	575		25.39	%
Net gain (loss) on sale of securities	—		(167)		167	(100.00)	%
Gain on sale of loans	1,274		1,952		(678)	(34.73)	%
Loan-related fees	1,605		1,719		(114)	(6.63)	%
FHLB stock dividends	1,320		970		350	36.08	%
Earnings on bank-owned life insurance	644		510		134	26.27	%
Other income	889		1,952		(1,063)	(54.46)	%
Total non-interest income	$	6,453	$	7,511		(14.09)	%

All values are in US Dollars.

Service charges on deposit accounts. The increase resulted primarily from a $0.2 million increase in wire transfer fees recognized, partially offset by a small decrease in other fees recognized during the year ended December 31, 2024 compared to the year ended December 31, 2023.

Net gain (loss) on sale of securities. The decrease in the net loss on sale of securities resulted from the sale of two municipal securities with a par value of approximately $0.8 million for a loss of approximately $0.2 million during the year ended December 31, 2023, with no sales occurring during the year ended December 31, 2024.

Gain on sale of loans. The decrease related primarily to an overall decline in the volume of loans sold during the year ended December 31, 2024 compared to the year ended December 31, 2023. During the year ended December 31, 2024, approximately $18.3 million of loans were sold with an effective yield of 6.96%, as compared to approximately $36.5 million of loans sold with an effective yield of 5.35% during the year ended December 31, 2023.

Loan-related fees. The decrease was primarily a result of a $0.2 million net decrease in income earned from the credit card program, partially offset by a small increase in loan fee income earned on various loan types and services.

FHLB stock dividends. The increase primarily relates to a 50 basis point increase in the annualized dividend rate earned year-over-year, while the average shares outstanding remained consistent.

Earnings on bank-owned life insurance. The increase was primarily due to additional policies purchased between December 31, 2024 and December 31, 2023.

Other income. The decrease resulted primarily from $0.5 million in income received on equity investments in venture-backed funds during the year ended December 31, 2024, as compared to $1.7 million in income received on equity investments in venture-back funds during the year ended December 31, 2023.

Non-interest Expense

The following table presents the key components of non-interest expense for the periods indicated:

	Three months ended
(in thousands)	December 31, 2024		September 30, 2024		Change	% Change
Salaries and employee benefits	$	8,360	$	7,969		4.91	%
Occupancy and equipment	649		626		23	3.67	%
Data processing and software	1,369		1,327		42	3.17	%
Federal Deposit Insurance Corporation (“FDIC”) insurance	440		405		35	8.64	%
Professional services	774		830		(56)	(6.75)	%
Advertising and promotional	752		584		168	28.77	%
Loan-related expenses	321		292		29	9.93	%
Other operating expenses	1,823		1,743		80	4.59	%
Total non-interest expense	$	14,488	$	13,776		5.17	%

All values are in US Dollars.

Salaries and employee benefits. The increase was primarily a result of: (i) a $0.1 million increase in salaries, benefits, and bonus expense; and (ii) a $0.5 million increase in commissions expense due to higher loan production, net of purchased consumer loans. These increases were partially offset by a $0.2 million increase in loan origination costs due to higher loan production, net of purchased consumer loans, period-over-period.

Advertising and promotional. The increase was primarily due to the timing of events sponsored and attended during the three months ended December 31, 2024 compared to the three months ended September 30, 2024.

The following table presents the key components of non-interest expense for the periods indicated:

	Three months ended
(in thousands)	December 31, 2024		December 31, 2023		Change	% Change
Salaries and employee benefits	$	8,360	$	7,182		16.40	%
Occupancy and equipment	649		583		66	11.32	%
Data processing and software	1,369		1,110		259	23.33	%
FDIC insurance	440		370		70	18.92	%
Professional services	774		658		116	17.63	%
Advertising and promotional	752		717		35	4.88	%
Loan-related expenses	321		268		53	19.78	%
Other operating expenses	1,823		1,775		48	2.70	%
Total non-interest expense	$	14,488	$	12,663		14.41	%

All values are in US Dollars.

Salaries and employee benefits. The increase was primarily a result of: (i) a $1.0 million increase in salaries, benefits, and bonus expense, of which approximately $0.8 million related to employees hired to support expansion into the San Francisco Bay Area; and (ii) a $0.7 million increase in commissions expense due to higher loan production, net of purchased consumer loans. These increases were partially offset by a $0.5 million increase in loan origination costs due to higher loan production, net of purchased consumer loans, period-over-period.

Data processing and software. The increase was primarily due to: (i) increased usage of our digital banking platform; (ii) higher transaction volumes related to the increased number of loan and deposit accounts; and (iii) an increased number of licenses required for new users on our loan origination and documentation system.

Professional services. The increase was primarily due to increased audit and examination fees for services provided for the three months ended December 31, 2024 compared to the three months ended December 31, 2023.

The following table presents the key components of non-interest expense for the periods indicated:

	Year ended
(in thousands)	December 31, 2024		December 31, 2023		Change	% Change
Salaries and employee benefits	$	31,709	$	27,097		17.02	%
Occupancy and equipment	2,547		2,218		329	14.83	%
Data processing and software	5,088		4,015		1,073	26.72	%
FDIC insurance	1,635		1,557		78	5.01	%
Professional services	3,078		2,575		503	19.53	%
Advertising and promotional	2,411		2,403		8	0.33	%
Loan-related expenses	1,207		1,192		15	1.26	%
Other operating expenses	6,818		6,718		100	1.49	%
Total non-interest expense	$	54,493	$	47,775		14.06	%

All values are in US Dollars.

Salaries and employee benefits. The increase was the result of: (i) a $3.5 million increase in salaries, benefits, and bonus, of which approximately $3.3 million related to employees hired to support expansion into the San Francisco Bay Area; and (ii) a $1.4 million increase in commissions paid, primarily to employees in the San Francisco Bay Area. The increase was partially offset by a $0.3 million increase in loan origination costs due to higher loan production, net of purchased consumer loans, period-over-period.

Occupancy and equipment. The increase related to rent expense for the San Francisco branch office and a new office lease to support back office staff during the year ended December 31, 2024, which did not exist for the full year ended December 31, 2023.

Data processing and software. The increase related to: (i) increased usage of our digital banking platform; (ii) higher transaction volumes related to the increased number of loan and deposit accounts; and (iii) an increased number of licenses required for new users on our loan origination and documentation system.

Professional services. The increase was due to an increase in audit, IT support, and other consulting fees for services provided for the year ended December 31, 2024 compared to the year ended December 31, 2023.

Other operating expenses. The increase is primarily related to a $0.2 million increase in IntraFi Network fees resulting from an overall increase in balances carried in the network, partially offset by a $0.1 million decrease in conference and training expenses.

Provision for Income Taxes

Three months ended December 31, 2024, as compared to the three months ended September 30, 2024

Provision for income taxes for the quarter ended December 31, 2024 increased by $1.8 million, or 40.70%, to $6.1 million, as compared to $4.3 million for the quarter ended September 30, 2024, which was primarily due to: (i) the increase in taxable income recognized during the three months ended December 31, 2024; and (ii) a $0.6 million provision to return true-up recorded during the three months ended December 31, 2024 related primarily to the timing of recognition of low income housing tax credits, which did not occur during the three months ended September 30, 2024. The effective tax rate was 31.24% and 28.21% for the three months ended December 31, 2024 and September 30, 2024, respectively.

Three months ended December 31, 2024, as compared to the three months ended December 31, 2023

Provision for income taxes increased by $1.7 million, or 39.02%, to $6.1 million for the three months ended December 31, 2024, as compared to $4.4 million for the three months ended December 31, 2023. This increase is due to: (i) the increase in taxable income for the three months ended December 31, 2024 compared to the three months ended December 31, 2023; and (ii) a $0.6 million provision to return true-up recorded during the three months ended December 31, 2024 related primarily to the timing of recognition of low income housing tax credits, which did not occur during the three months ended December 31, 2023. The effective tax rate was 31.24% and 28.72% for the three months ended December 31, 2024 and December 31, 2023, respectively.

Year ended December 31, 2024, as compared to the year ended December 31, 2023

Provision for income taxes increased by $0.2 million, or 0.89%, to $19.1 million for the year ended December 31, 2024, as compared to $18.9 million for the year ended December 31, 2023. This increase is due to a $0.6 million provision to return true-up recorded during the year ended December 31, 2024, partially offset by a decline in taxable income year-over-year. The effective tax rate was 29.43% and 28.34% for the years ended December 31, 2024 and December 31, 2023, respectively.

Webcast Details

Five Star Bancorp will host a live webcast for analysts and investors on Tuesday, January 28, 2025, at 1:00 pm ET (10:00 am PT), to discuss its fourth quarter and annual financial results. To view the live webcast, visit the “News & Events” section of the Company’s website under “Events” at https://investors.fivestarbank.com/news-events/events. The webcast will be archived on the Company’s website for a period of 90 days.

About Five Star Bancorp

Five Star is a bank holding company headquartered in Rancho Cordova, California. Five Star operates through its wholly owned banking subsidiary, Five Star Bank. The Bank has eight branches in Northern California.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent plans, estimates, objectives, goals, guidelines, expectations, intentions, projections, and statements of the Company’s beliefs concerning future events, business plans, objectives, expected operating results, and the assumptions upon which those statements are based. Forward-looking statements include without limitation, any statement that may predict, forecast, indicate, or imply future results, performance, or achievements, and are typically identified with words such as “may,” “could,” “should,” “will,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “aim,” “intend,” “plan,” or words or phases of similar meaning. The Company cautions that the forward-looking statements are based largely on the Company’s expectations and are subject to a number of known and unknown risks and uncertainties that are subject to change based on factors which are, in many instances, beyond the Company’s control. Such forward-looking statements are based on various assumptions (some of which may be beyond the Company’s control) and are subject to risks and uncertainties, which change over time, and other factors, which could cause actual results to differ materially from those currently anticipated. New risks and uncertainties may emerge from time to time, and it is not possible for the Company to predict their occurrence or how they will affect the Company. If one or more of the factors affecting the Company’s forward-looking information and statements proves incorrect, then the Company’s actual results,

performance, or achievements could differ materially from those expressed in, or implied by, forward-looking information and statements contained in this press release. Therefore, the Company cautions you not to place undue reliance on the Company’s forward-looking information and statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements are set forth in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 and Quarterly Reports on Form 10-Q for the three months ended March 31, 2024, June 30, 2024, and September 30, 2024, in each case under the section entitled “Risk Factors,” and other documents filed by the Company with the Securities and Exchange Commission from time to time.

The Company disclaims any duty to revise or update the forward-looking statements, whether written or oral, to reflect actual results or changes in the factors affecting the forward-looking statements, except as specifically required by law.

Condensed Financial Data (Unaudited)

	Three months ended
(in thousands, except per share and share data)	December 31, 2024		September 30, 2024		December 31, 2023
Revenue and Expense Data
Interest and fee income	$	57,745	$	52,667	$	46,180
Interest expense	24,256		22,281		19,502
Net interest income	33,489		30,386		26,678
Provision for credit losses	1,300		2,750		800
Net interest income after provision	32,189		27,636		25,878
Non-interest income:
Service charges on deposit accounts	179		165		165
Net gain (loss) on sale of securities	—		—		(167)
Gain on sale of loans	150		306		317
Loan-related fees	400		406		667
FHLB stock dividends	332		327		314
Earnings on bank-owned life insurance	182		162		155
Other income	423		15		485
Total non-interest income	1,666		1,381		1,936
Non-interest expense:
Salaries and employee benefits	8,360		7,969		7,182
Occupancy and equipment	649		626		583
Data processing and software	1,369		1,327		1,110
FDIC insurance	440		405		370
Professional services	774		830		658
Advertising and promotional	752		584		717
Loan-related expenses	321		292		268
Other operating expenses	1,823		1,743		1,775
Total non-interest expense	14,488		13,776		12,663
Income before provision for income taxes	19,367		15,241		15,151
Provision for income taxes	6,050		4,300		4,352
Net income	$	13,317	$	10,941	$	10,799
Comprehensive Income
Net income	$	13,317	$	10,941	$	10,799
Net unrealized holding (loss) gain on securities available-for-sale during the period	(3,747)		3,549		5,744
Reclassification for net loss on sale of securities included in net income	—		—		167
Less: Income tax (benefit) expense related to other comprehensive (loss) income	(1,108)		1,049		1,747
Other comprehensive (loss) income	(2,639)		2,500		4,164
Total comprehensive income	$	10,678	$	13,441	$	14,963
	Three months ended
---	---	---	---	---	---	---	---	---	---
(in thousands, except per share and share data)	December 31, 2024			September 30, 2024			December 31, 2023
Share and Per Share Data
Earnings per common share:
Basic	$	0.63		$	0.52		$	0.63
Diluted	$	0.63		$	0.52		$	0.63
Book value per share	$	18.60		$	18.29		$	16.56
Tangible book value per share(1)	$	18.60		$	18.29		$	16.56
Weighted average basic common shares outstanding	21,182,143			21,182,143			17,175,445
Weighted average diluted common shares outstanding	21,235,318			21,232,758			17,193,114
Shares outstanding at end of period	21,319,083			21,319,583			17,256,989
Credit Quality
Allowance for credit losses to period end nonperforming loans	2,101.78		%	2,041.44		%	1,752.70		%
Nonperforming loans to loans held for investment	0.05		%	0.05		%	0.06		%
Nonperforming assets to total assets	0.05		%	0.05		%	0.05		%
Nonperforming loans plus performing loan modifications to loans held for investment	0.05		%	0.05		%	0.06		%
Selected Financial Ratios
ROAA	1.31		%	1.18		%	1.26		%
ROAE	13.48		%	11.31		%	15.45		%
Net interest margin	3.36		%	3.37		%	3.19		%
Loan to deposit	99.38		%	101.87		%	102.19		%

(1) See the section entitled “Non-GAAP Reconciliation (Unaudited)” for a reconciliation of this non-GAAP financial measure.

	Year ended
(in thousands, except per share and share data)	December 31, 2024		December 31, 2023
Revenue and Expense Data
Interest and fee income	$	206,951	$	174,382
Interest expense	87,240		63,502
Net interest income	119,711		110,880
Provision for credit losses	6,950		4,000
Net interest income after provision	112,761		106,880
Non-interest income:
Service charges on deposit accounts	721		575
Net gain (loss) on sale of securities	—		(167)
Gain on sale of loans	1,274		1,952
Loan-related fees	1,605		1,719
FHLB stock dividends	1,320		970
Earnings on bank-owned life insurance	644		510
Other income	889		1,952
Total non-interest income	6,453		7,511
Non-interest expense:
Salaries and employee benefits	31,709		27,097
Occupancy and equipment	2,547		2,218
Data processing and software	5,088		4,015
FDIC insurance	1,635		1,557
Professional services	3,078		2,575
Advertising and promotional	2,411		2,403
Loan-related expenses	1,207		1,192
Other operating expenses	6,818		6,718
Total non-interest expense	54,493		47,775
Income before provision for income taxes	64,721		66,616
Provision for income taxes	19,050		18,882
Net income	$	45,671	$	47,734
Comprehensive Income
Net income	$	45,671	$	47,734
Net unrealized holding (loss) gain on securities available-for-sale during the period	(858)		2,228
Reclassification for net loss on sale of securities included in net income	—		167
Less: Income tax (benefit) expense related to other comprehensive (loss) income	(254)		708
Other comprehensive (loss) income	(604)		1,687
Total comprehensive income	$	45,067	$	49,421
Share and Per Share Data
Earnings per common share:
Basic	$	2.26	$	2.78
Diluted	$	2.26	$	2.78
Book value per share	$	18.60	$	16.56
Tangible book value per share(1)	$	18.60	$	16.56
Weighted average basic common shares outstanding	20,154,385		17,166,592
Weighted average diluted common shares outstanding	20,205,440		17,187,969
Shares outstanding at end of period	21,319,083		17,256,989
	Year ended
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(in thousands, except per share and share data)	December 31, 2024		December 31, 2023
Credit Quality
Allowance for credit losses to period end nonperforming loans	2,101.78	%	1,752.70	%
Nonperforming loans to loans held for investment	0.05	%	0.06	%
Nonperforming assets to total assets	0.05	%	0.05	%
Nonperforming loans plus performing loan modifications to loans held for investment	0.05	%	0.06	%
Selected Financial Ratios
ROAA	1.23	%	1.44	%
ROAE	12.72	%	17.85	%
Net interest margin	3.32	%	3.42	%
Loan to deposit	99.38	%	102.19	%

(1) See the section entitled “Non-GAAP Reconciliation (Unaudited)” for a reconciliation of this non-GAAP financial measure.

(in thousands)	December 31, 2024			September 30, 2024			December 31, 2023
Balance Sheet Data
Cash and due from financial institutions	$	33,882		$	44,531		$	26,986
Interest-bearing deposits in banks	318,461			206,321			294,590
Time deposits in banks	4,121			4,118			5,858
Securities - available-for-sale, at fair value	98,194			104,238			108,083
Securities - held-to-maturity, at amortized cost	2,720			2,720			3,077
Loans held for sale	3,247			2,910			11,464
Loans held for investment	3,532,686			3,460,565			3,081,719
Allowance for credit losses	(37,791)			(37,583)			(34,431)
Loans held for investment, net of allowance for credit losses	3,494,895			3,422,982			3,047,288
FHLB stock	15,000			15,000			15,000
Operating leases, right-of-use asset	6,245			6,590			5,284
Premises and equipment, net	1,584			1,657			1,623
Bank-owned life insurance	19,375			19,192			17,180
Interest receivable and other assets	55,554			56,745			56,692
Total assets	$	4,053,278		$	3,887,004		$	3,593,125
Non-interest-bearing deposits	$	922,629		$	906,939		$	831,101
Interest-bearing deposits	2,635,365			2,493,040			2,195,795
Total deposits	3,557,994			3,399,979			3,026,896
Subordinated notes, net	73,895			73,859			73,749
Other borrowings	—			—			170,000
Operating lease liability	6,857			7,101			5,603
Interest payable and other liabilities	17,908			16,135			31,103
Total liabilities	3,656,654			3,497,074			3,307,351
Common stock	302,531			302,251			220,505
Retained earnings	106,464			97,411			77,036
Accumulated other comprehensive loss, net of taxes	(12,371)			(9,732)			(11,767)
Total shareholders’ equity	396,624			389,930			285,774
Total liabilities and shareholders’ equity	$	4,053,278		$	3,887,004		$	3,593,125
Quarterly Average Balance Data
Average loans held for investment and sale	$	3,498,109		$	3,354,050		$	3,055,042
Average interest-earning assets	3,965,867			3,586,572			3,319,300
Average total assets	4,057,603			3,678,537			3,399,660
Average deposits	3,561,409			3,184,795			3,009,078
Average total equity	393,088			384,692			277,295
Capital Ratios
Total shareholders’ equity to total assets	9.79		%	10.03		%	7.95		%
Tangible shareholders’ equity to tangible assets(1)	9.79		%	10.03		%	7.95		%
Total capital (to risk-weighted assets)	13.99		%	13.94		%	12.30		%
Tier 1 capital (to risk-weighted assets)	11.02		%	10.93		%	9.07		%
Common equity Tier 1 capital (to risk-weighted assets)	11.02		%	10.93		%	9.07		%
Tier 1 leverage ratio	10.05		%	10.83		%	8.73		%

(1) See the section entitled “Non-GAAP Reconciliation (Unaudited)” for a reconciliation of this non-GAAP financial measure.

Non-GAAP Reconciliation (Unaudited)

The Company uses financial information in its analysis of the Company’s performance that is not in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The Company believes that these non-GAAP financial measures provide useful information to management and investors that is supplementary to the Company’s financial condition, results of operations, and cash flows computed in accordance with GAAP. However, the Company acknowledges that its non-GAAP financial measures have a number of limitations. As such, investors should not view these disclosures as a substitute for results determined in accordance with GAAP. Additionally, these non-GAAP measures are not necessarily comparable to non-GAAP financial measures that other banking companies use. Other banking companies may use names similar to those the Company uses for the non-GAAP financial measures the Company discloses, but may calculate them differently. Investors should understand how the Company and other companies each calculate their non-GAAP financial measures when making comparisons.

Tangible shareholders’ equity to tangible assets is defined as total equity less goodwill and other intangible assets, divided by total assets less goodwill and other intangible assets. The most directly comparable GAAP financial measure is total shareholders’ equity to total assets. We had no goodwill or other intangible assets at the end of any period indicated. As a result, tangible shareholders’ equity to tangible assets is the same as total shareholders’ equity to total assets at the end of each of the periods indicated.

Tangible book value per share is defined as total shareholders’ equity less goodwill and other intangible assets, divided by the outstanding number of common shares at the end of the period. The most directly comparable GAAP financial measure is book value per share. We had no goodwill or other intangible assets at the end of any period indicated. As a result, tangible book value per share is the same as book value per share at the end of each of the periods indicated.

Pre-tax, pre-provision income is defined as pre-tax income plus provision for credit losses. The most directly comparable GAAP financial measure is pre-tax income.

The following reconciliation tables provide a more detailed analysis of this non-GAAP financial measure:

	Three months ended
(in thousands)	December 31, 2024		September 30, 2024		December 31, 2023
Pre-tax, pre-provision income
Pre-tax income	$	19,367	$	15,241	$	15,151
Add: provision for credit losses	1,300		2,750		800
Pre-tax, pre-provision income	$	20,667	$	17,991	$	15,951			Year ended
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(in thousands)	December 31, 2024		December 31, 2023
Pre-tax, pre-provision income
Pre-tax income	$	64,721	$	66,616
Add: provision for credit losses	6,950		4,000
Pre-tax, pre-provision income	$	71,671	$	70,616

Investor Contact: Heather C. Luck, Chief Financial Officer Five Star Bancorp (916) 626-5008 hluck@fivestarbank.com

Media Contact:

Shelley R. Wetton, Chief Marketing Officer Five Star Bancorp (916) 284-7827 swetton@fivestarbank.com

22

q42024investorpresentati

Investor Presentation Fourth Quarter and Year End 2024

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Safe Harbor Statement and Disclaimer Forward-Looking Statements In this presentation, “we,” “our,” “us,” “Five Star," or “the Company” refers to Five Star Bancorp, a California corporation, and our consolidated subsidiaries, including Five Star Bank, a California state- chartered bank, unless the context indicates that we refer only to the parent company, Five Star Bancorp. This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent plans, estimates, objectives, goals, guidelines, expectations, intentions, projections, and statements of the Company’s beliefs concerning future events, business plans, objectives, expected operating results, and the assumptions upon which those statements are based. Forward-looking statements include without limitation, any statement that may predict, forecast, indicate, or imply future results, performance, or achievements, and are typically identified with words such as “may,” “could,” “should,” “will,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “aim,” “intend,” “plan,” or words or phases of similar meaning. The Company cautions that the forward-looking statements are based largely on the Company’s expectations and are subject to a number of known and unknown risks and uncertainties that are subject to change based on factors which are, in many instances, beyond the Company’s control. Such forward-looking statements are based on various assumptions (some of which may be beyond the Company’s control) and are subject to risks and uncertainties, which change over time, and other factors which could cause actual results to differ materially from those currently anticipated. New risks and uncertainties may emerge from time to time, and it is not possible for the Company to predict their occurrence or how they will affect the Company. If one or more of the factors affecting the Company’s forward-looking information and statements proves incorrect, then the Company’s actual results, performance, or achievements could differ materially from those expressed in, or implied by, forward-looking information and statements contained in this presentation. Therefore, the Company cautions you not to place undue reliance on the Company’s forward-looking information and statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements are set forth in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 and Quarterly Reports on Form 10-Q for the quarters ended March 31, 2024, June 30, 2024, and September 30, 2024, in each case under the section entitled “Risk Factors,” and other documents filed by the Company with the Securities and Exchange Commission from time to time. The Company disclaims any duty to revise or update the forward-looking statements, whether written or oral, to reflect actual results or changes in the factors affecting the forward-looking statements, except as specifically required by law. Industry Information This presentation includes statistical and other industry and market data that we obtained from government reports and other third-party sources. Our internal data, estimates, and forecasts are based on information obtained from government reports, trade, and business organizations and other contacts in the markets in which we operate and our management’s understanding of industry conditions. Although we believe that this information (including the industry publications and third-party research, surveys, and studies) is accurate and reliable, we have not independently verified such information. In addition, estimates, forecasts, and assumptions are necessarily subject to a high degree of uncertainty and risk due to a variety of factors. Finally, forward-looking information obtained from these sources is subject to the same qualifications and the additional uncertainties regarding the other forward-looking statements in this presentation. Unaudited Financial Data Numbers contained in this presentation for the quarter ended December 31, 2024 and for other quarterly periods are unaudited. Additionally, numbers contained in this presentation for the full fiscal year ended December 31, 2024 are unaudited. As a result, subsequent information may cause a change in certain accounting estimates and other financial information, including the Company’s allowance for credit losses, fair values, and income taxes. Non-GAAP Financial Measures The Company uses financial information in its analysis of the Company’s performance that is not in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The Company believes that these non-GAAP financial measures provide useful information to management and investors that is supplementary to the Company’s financial condition, results of operations, and cash flows computed in accordance with GAAP. However, the Company acknowledges that its non-GAAP financial measures have a number of limitations. See the appendix to this presentation for a reconciliation of these non-GAAP measures to the most directly comparable GAAP financial measures. Fourth Quarter 2024 Investor Presentation | 2

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Agenda Fourth Quarter 2024 Investor Presentation | 3 •Company Overview •Financial Highlights •Loans and Credit Quality •Deposit and Capital Overview •Financial Results

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Company Overview Fourth Quarter 2024 Investor Presentation | 4

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Executive Team Fourth Quarter 2024 Investor Presentation | 5 James Beckwith President and Chief Executive Officer Five Star since 2003 John Dalton Senior Vice President and Chief Credit Officer Five Star since 2011 Mike Lee Senior Vice President and Chief Regulatory Officer Five Star since 2005 Michael Rizzo Executive Vice President and Chief Banking Officer Five Star since 2005 Brett Wait Senior Vice President and Chief Information Officer Five Star since 2011 Lydia Ramirez Executive Vice President and Chief Operating Officer Five Star since 2017 Heather Luck Executive Vice President and Chief Financial Officer Five Star since 2018 Shelley Wetton Senior Vice President and Chief Marketing Officer Five Star since 2015 DJ Kurtze Executive Vice President and San Francisco Bay Area President Five Star since 2023

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Company Overview Nasdaq: Headquarters: Asset Size: Loans HFI: Deposits: Bank Branches: Fourth Quarter 2024 Investor Presentation | 6 FSBC Rancho Cordova, CA $4.1 billion $3.5 billion $3.6 billion 8 Note: Balances are as of December 31, 2024. Five Star is a community business bank that was founded to serve the commercial real estate industry. Today, the markets we serve have expanded to meet customer demand and now include manufactured housing and storage, faith-based, government, nonprofits, and more.

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Financial Highlights Fourth Quarter 2024 Investor Presentation | 7

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$604 $811 $840 $973 $1,272 $1,480 $1,954 $2,557 $3,227 $3,593 $3,476 $3,634 $3,887 $4,053 $1,806 $2,535 $148 $22 Total Assets Excluding PPP Loans PPP Loans 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Consistent and Organic Asset Growth Fourth Quarter 2024 Investor Presentation | 8 Note: Dollars are in millions. Balances are end of period. References to PPP are the Paycheck Protection Program. 1. CAGR is based upon balances as of December 31, 2024. 2. A reconciliation of this non-GAAP measure is set forth in the appendix. (2) CAGR (1) 5 years 10 years Total Assets 22.33% 20.97%

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Financial Highlights - December 31, 2024 Fourth Quarter 2024 Investor Presentation | 9 Growth • Continued balance sheet growth with increases in loans held for investment of $451.0 million and increases in deposits of $531.1 million since December 31, 2023. Funding • Non-interest-bearing deposits comprised 25.93% of total deposits, compared to 26.67% as of September 30, 2024 and 27.46% as of December 31, 2023. • Deposits comprised 97.30% of total liabilities, as compared to 97.22% of total liabilities as of September 30, 2024 and 91.52% of total liabilities as of December 31, 2023. Liquidity • Insured and collateralized deposits were approximately $2.4 billion, representing 66.92% of total deposits, compared to 63.90% as of September 30, 2024. • Cash and cash equivalents were $352.3 million, representing 9.90% of total deposits, compared to 7.38% as of September 30, 2024 and 10.62% as of December 31, 2023. Capital • All capital ratios were above well-capitalized regulatory thresholds. • On October 17, 2024 and January 16, 2025, the Company declared cash dividends of $0.20 per share for the three months ended September 30, 2024 and December 31, 2024, respectively.

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Loans and Credit Quality Fourth Quarter 2024 Investor Presentation | 10

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$148 $22 4.93% 5.28% 5.45% 4.96% 4.71% 6.01%Non-PPP Loans PPP Loans Average Loan Yield Average Loan Yield Excluding PPP Loans Consistent Loan Growth To ta l L oa ns H el d fo r I nv es tm en t ( M ill io ns ) $2,870 $2,927 $3,010 $3,082 $3,104 $3,266 $3,461 $3,533 5.36% 5.50% 5.57% 5.64% 5.71% 5.83% 5.98% 6.01% Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 0 500 1,000 1,500 2,000 2,500 3,000 3,500 Fourth Quarter 2024 Investor Presentation | 11 Note: Loan balances are end of period loans held for investment. Yields are based on average balance and annualized quarterly interest income. 1. CAGR is based upon balances as of December 31, 2024. 2. A reconciliation of this non-GAAP measure is set forth in the appendix. (2) Quarterly Trend To ta l L oa ns H el d fo r I nv es tm en t ( M ill io ns ) $1,180 $1,355 $1,912 $2,791 $3,082 $3,533 $148 $22 5.45% 4.96% 4.82% 4.75% 5.52% 5.89% 2019 2020 2021 2022 2023 2024 0 500 1,000 1,500 2,000 2,500 3,000 3,500 Annual Trend CAGR (1) 5 years Total Loans 24.51%

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Loan Portfolio Composition Fourth Quarter 2024 Investor Presentation | 12 Commercial real estate, 80.75% Commercial land and development, 0.11% Commercial construction, 3.15% Residential construction, 0.13% Residential, 0.93% Farmland, 1.34% Commercial Secured, 4.91% Commercial Unsecured, 0.78% PPP, 0.00% Consumer and other, 7.90% Types of collateral securing commercial real estate ("CRE") loans Loan Balance ($000s) # of Loans % of CRE Manufactured home community $ 891,935 405 31.22 % RV Park 371,733 125 13.01 % Retail 283,394 94 9.92 % Industrial 224,860 135 7.87 % Faith-based 184,151 102 6.45 % Mini storage 177,854 49 6.22 % Multifamily 172,592 96 6.04 % Office 145,986 95 5.11 % All other types (1) 404,668 172 14.16 % Total $ 2,857,173 1,273 100.00 % Note: Balances are net book value as of December 31, 2024, before allowance for credit losses and deferred loan fees, and exclude loans held for sale. 1. Types of collateral in “all other types” are those that individually make up less than 5% CRE concentration.

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$892M $372M $283M $225M $184M $178M $173M $146M $405M $1,586M $648M $570M $500M $492M $361M $372M $338M $855M 61.54% 60.50% 55.67% 51.40% 45.91% 56.59% 52.50% 52.24% 54.65% Loan Balance Collateral Value Weighted Average Loan-to-Value Manufactured home community RV Park Retail Industrial Faith-based Mini storage Multifamily Office All other types $0M $250M $500M $750M $1,000M $1,250M $1,500M $1,750M CRE Collateral Values Fourth Quarter 2024 Investor Presentation | 13 (1) Note: Balances are net book value as of December 31, 2024, before allowance for credit losses, before deferred loan fees, and exclude loans held for sale. 1. Types of collateral in “all other types” are those that individually make up less than 5% CRE concentration. Total CRE Weighted Average Loan-to-Value 49.92%

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Loan Portfolio Diversification We focus primarily on commercial lending, with an emphasis on commercial real estate. We offer a variety of loans to small and medium-sized businesses, professionals, and individuals, including commercial real estate, commercial land and construction, and farmland loans. To a lesser extent, we also offer residential real estate, construction real estate, and consumer loans. Fourth Quarter 2024 Investor Presentation | 14Note: Balances are net book value as of December 31, 2024, before allowance for credit losses, before deferred loan fees, and exclude loans held for sale. Loans by Type Loans by Purpose Real Estate Loans by Geography CML Term CRE NOO, 36.4% CML Term Multifamily, 30.1% CML Term CRE OO, 14.0% CSM Unsecured, 7.7% CML Const CRE, 3.1% CML Secured, 2.9%CML Term Ag RE, 1.3% SBA 7A Secured, 1.2% Others, 3.3% CA, 57.7% TX, 7.2% NC, 3.1% AZ, 2.9% FL, 2.5% OR, 2.4% NV, 2.3%GA, 1.9%TN, 1.7%CO, 1.3% WI, 1.2% MO, 1.2% WA, 1.2% PA, 1.1% Other, 12.3% CRE Manufactured Home, 25.2% CRE Other, 11.5% CRE RV Park, 10.5% CRE Retail, 8.0% Consumer Unsecured, 7.7% Commercial Other, 7.7% CRE Industrial, 6.4% CRE Faith-based, 5.2% CRE Mini Storage, 5.0%CRE Multifamily, 4.9% CRE Office, 4.1% Commercial Construction, 3.3% Others, 0.5%

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Loan Rollforward Fourth Quarter 2024 Investor Presentation | 15Note: Dollars are in millions. Beginning and ending balances are as of period end, before allowance for credit losses, including deferred loan fees, and excluding loans held for sale. $135 $254 $135 $144 $150 $390 $334 $263 $(38) $(158) $(39) $(59) $(51) $(155) $(99) $(119)$(18) $(39) $(13) $(13) $(77) $(73) $(41) $(72) Originations & Advances Paydowns Payoffs Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Beginning Balance $ 2,791 $ 2,870 $ 2,927 $ 3,010 $ 3,082 $ 3,104 $ 3,266 $ 3,461 Ending Balance $ 2,870 $ 2,927 $ 3,010 $ 3,082 $ 3,104 $ 3,266 $ 3,461 $ 3,533

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Asset Quality Fourth Quarter 2024 Investor Presentation | 16 Nonperforming Loan Trend Allowance for Credit Losses and Net Charge-off Trend Note: References to loans HFI are loans held for investment, which are the equivalent of total loans outstanding at each period end. References to average loans HFI are average loans held for investment during the period. $0.8M $0.5M $0.6M $0.4M $2.0M $1.9M $1.9M $1.8M $1.8M 0.07% 0.03% 0.03% 0.01% 0.06% 0.06% 0.06% 0.05% 0.05% Nonperforming Loans Nonperforming Loans to Loans HFI 2019 2020 2021 2022 2023 Q1 2024 Q2 2023 Q3 2023 Q4 2024 1.26% 1.48% 1.20% 1.02% 1.12% 1.12% 1.08% 1.09% 1.07% 0.21% 0.12% 0.04% 0.07% 0.11% 0.03% 0.04% 0.02% 0.04% Allowance for Credit Losses to Loans HFI Net Charge-offs to Average Loans HFI 2019 2020 2021 2022 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Our primary objective is to maintain a high level of asset quality in our loan portfolio. Therefore, we: – Place emphasis on our commercial portfolio, where we reevaluate risk assessments as a result of reviewing commercial property operating statements and borrower financials – Monitor payment performance, delinquencies, tax compliance, and property insurance compliance of our borrowers – Design our practices to facilitate the early detection and remediation of problems within our loan portfolio – Employ the use of an outside, independent consulting firm to evaluate our underwriting and risk assessment process

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Allocation of Allowance for Credit Losses Fourth Quarter 2024 Investor Presentation | 17 (in thousands) December 31, 2023 March 31, 2024 June 30, 2024 September 30, 2024 December 31, 2024 Allowance for Credit Losses Amount % of Total Amount % of Total Amount % of Total Amount % of Total Amount % of Total Real estate: Commercial $ 29,015 84.27 % $ 28,895 83.40 % $ 24,708 69.79 % $ 26,217 69.74 % $ 25,864 68.44 % Commercial land & development 178 0.52 % 164 0.47 % 72 0.20 % 89 0.24 % 78 0.21 % Commercial construction 718 2.08 % 697 2.01 % 1,097 3.10 % 1,756 4.67 % 2,268 6.00 % Residential construction 89 0.26 % 114 0.33 % 100 0.28 % 47 0.13 % 64 0.17 % Residential 151 0.44 % 164 0.47 % 195 0.55 % 284 0.76 % 270 0.71 % Farmland 399 1.16 % 438 1.26 % 402 1.14 % 581 1.55 % 607 1.61 % Total real estate loans 30,550 88.73 % 30,472 87.94 % 26,574 75.06 % 28,974 77.09 % 29,151 77.14 % Commercial: Secured 3,314 9.62 % 3,262 9.41 % 7,386 20.86 % 6,049 16.10 % 5,866 15.52 % Unsecured 189 0.55 % 259 0.75 % 214 0.60 % 251 0.67 % 278 0.74 % Total commercial loans 3,503 10.17 % 3,521 10.16 % 7,600 21.46 % 6,300 16.77 % 6,144 16.26 % Consumer and other 378 1.10 % 660 1.90 % 1,232 3.48 % 2,309 6.14 % 2,496 6.60 % Total allowance for credit losses $ 34,431 100.00 % $ 34,653 100.00 % $ 35,406 100.00 % $ 37,583 100.00 % $ 37,791 100.00 %

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Risk Grade Migration Fourth Quarter 2024 Investor Presentation | 18 Classified Loans (Loans Rated Substandard or Doubtful) (in thousands) 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Real estate: Commercial $ 1,892 $ 1,852 $ 1,822 $ 1,787 $ 2,587 Commercial land and development — — — — — Commercial construction — — — — — Residential construction — — — — — Residential — — — — — Farmland — — — — — Commercial: Secured 72 66 60 54 48 Unsecured — — — — — Consumer and other 12 11 10 9 9 Total $ 1,976 $ 1,929 $ 1,892 $ 1,850 $ 2,644 % of Loan Portfolio Outstanding by Risk Grade: Pass 98.66 % 98.27 % 98.17 % 97.33 % 96.44 % Watch 1.28 % 1.67 % 1.77 % 2.62 % 3.49 % Substandard 0.06 % 0.06 % 0.06 % 0.05 % 0.07 % Note: Loan portfolio outstanding is the total balance of loans outstanding at period end, before deferred loan fees, before allowance for loan losses, and excluding loans held for sale.

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Deposit and Capital Overview Fourth Quarter 2024 Investor Presentation | 19

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$1.3B $1.8B $2.3B $2.8B $3.0B $3.0B $3.1B $3.4B $3.6B $708M $889M $1,001M $1,228M $1,409M $1,554M $1,691M $1,678M $1,650M$389M $701M $902M $971M $831M $817M $826M $907M $923M $119M $146M $279M $240M $320M $296M $300M $324M $315M $97M $48M $104M $343M $467M $288M $333M $491M $670M Money Market & Savings Non-Interest-Bearing Demand Interest-Bearing Demand Time Deposits 2019 2020 2021 2022 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Strong Deposit Growth Fourth Quarter 2024 Investor Presentation | 20 Note: Balances are end of period. Cost of total deposits is based on total average balance of interest-bearing and non- interest-bearing deposits and annualized quarterly deposit interest expense. 1. CAGR is based upon balances as of December 31, 2024. Cost of Total Deposits 0.81% 0.44% 0.11% 0.43% 1.97% 2.53% 2.47% 2.63% 2.58% CAGR (1) 5 years Total Deposits 22.09%

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Diversified Funding Fourth Quarter 2024 Investor Presentation | 21 Total Deposits(1) = $3.6 billion 97.3% of Total Liabilities Liability Mix 1. Balance as of December 31, 2024. 2. Loan balance in loan to deposit ratio is total loans held for investment and sale at period end. Loan(2) to Deposit Ratio Non-Interest-Bearing Deposits to Total Deposits 90.5% 84.5% 85.1% 100.7% 102.2% 105.4% 103.9% 101.9% 99.4% 2019 2020 2021 2022 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 29.6% 39.3% 39.5% 34.9% 27.5% 27.7% 26.2% 26.7% 25.9% 2019 2020 2021 2022 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Money Market, 41.7% Non-Interest- Bearing Demand, 25.2% Time Deposits, 18.3% Interest-Bearing Demand, 8.6% Savings, 3.4% Borrowings & Subordinated Debt, 2.0% Other Liabilities, 0.8%

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Deposit Composition Fourth Quarter 2024 Investor Presentation | 22 Note: Balances are as of December 31, 2024 and include time and wholesale deposits. 1. Types of accounts in “Other” are brokered deposits, which comprise 8.43% of total deposits, individuals, trusts, estates, and market verticals that individually make up less than 0.40% of all deposits. 2. Government and Local Agency Depositors includes State of California, which comprises 7.31% of total deposits. Total Deposits by Relationship Size Local Agency BreakoutTotal Deposits by Market Vertical Local Agency Depositors, 23.00% All Other Depositors, 77.00% Government, 23.07% Other, 18.22% Commercial Real Estate and Construction, 15.65% Small to Medium Sized Business, 9.84% Professional Service Practice, 9.53% Non-profit, 7.05% Manufactured Home Community, 6.27% Healthcare and Practice, 4.97%Venture Banking, 2.16% Faith-based, 2.09% Agriculture and Ag Tech, 1.15% Relationships > $5 million, 61.13% Relationships ≤ $5 million, 38.87% 9.28 Years Average Age of Relationships > $5 million $264,000 Average Deposit Account Balance

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Capital Ratios Fourth Quarter 2024 Investor Presentation | 23 Tier 1 Leverage Ratio Tier 1 Capital to RWA Total Capital to RWA Common Equity Tier 1 to RWA Note: References to RWA are risk-weighted assets. 7.51% 6.58% 9.47% 8.60% 8.73% 10.05% 2019 2020 2021 2022 2023 2024 8.21% 8.98% 11.44% 8.99% 9.07% 11.02% 2019 2020 2021 2022 2023 2024 8.21% 8.98% 11.44% 8.99% 9.07% 11.02% 2019 2020 2021 2022 2023 2024 11.52% 12.18% 13.98% 12.46% 12.30% 13.99% 2019 2020 2021 2022 2023 2024

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Financial Results Fourth Quarter 2024 Investor Presentation | 24

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Financial Highlights Fourth Quarter 2024 Investor Presentation | 25 (in thousands, except per share data) For the three months ended For the year ended 12/31/2024 9/30/2024 12/31/2023 12/31/2024 12/31/2023 Profitability Net income $ 13,317 $ 10,941 $ 10,799 $ 45,671 $ 47,734 Return on average assets ("ROAA") 1.31 % 1.18 % 1.26 % 1.23 % 1.44 % Return on average equity ("ROAE") 13.48 % 11.31 % 15.45 % 12.72 % 17.85 % Earnings per share (basic and diluted) $ 0.63 $ 0.52 $ 0.63 $ 2.26 $ 2.78 Net Interest Margin Net interest margin 3.36 % 3.37 % 3.19 % 3.32 % 3.42 % Average loan yield 6.01 % 5.98 % 5.64 % 5.89 % 5.52 % Average cost of interest-bearing deposits 3.48 % 3.60 % 3.29 % 3.48 % 2.77 % Average cost of total deposits 2.58 % 2.63 % 2.39 % 2.55 % 1.97 % Total cost of funds 2.65 % 2.72 % 2.50 % 2.64 % 2.10 % 12/31/2024 12/31/2023 Deposits and Securities Non-interest-bearing deposits $ 922,629 $ 831,101 Interest-bearing deposits 2,635,365 2,195,795 Total deposits 3,557,994 3,026,896 Total securities 100,914 111,160 Total securities to interest-earning assets 2.55 % 3.17 % Asset Quality Nonperforming loans to loans held for investment 0.05 % 0.06 % Allowance for credit losses to loans held for investment 1.07 % 1.12 % Note: Yields are based on average balance and annualized quarterly interest income. Costs are based on average balance and annualized quarterly interest expense.

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Operating Metrics Fourth Quarter 2024 Investor Presentation | 26 Efficiency RatioNet Interest Margin 3.75% 3.42% 3.32% 2022 2023 2024 36.90% 40.35% 43.19% 2022 2023 2024 Note: All 2024 figures are through December 31, 2024. Total Income Before Taxes $62.9M $66.6M $64.7M 2022 2023 2024

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Earnings Track Record Fourth Quarter 2024 Investor Presentation | 27 $19.4M $18.4M $16.8M $16.0M $15.9M $17.2M $18.0M $20.7M Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 $0.0M $2.5M $5.0M $7.5M $10.0M $12.5M $15.0M $17.5M $20.0M $22.5M 1. A reconciliation of this non-GAAP measure is set forth in the appendix. $69.6M $70.6M $71.7M $62.9M $66.6M $64.7M Pre-tax, pre-provision income Pre-tax income 2022 2023 2024 $0.0M $10.0M $20.0M $30.0M $40.0M $50.0M $60.0M $70.0M $80.0M (1) Quarterly Trend of Pre-Tax, Pre-Provision Income(1) Annual Trend

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Non-interest Income and Expense Comparison Fourth Quarter 2024 Investor Presentation | 28 (in thousands) For the three months ended For the year ended 12/31/2024 9/30/2024 12/31/2023 12/31/2024 12/31/2023 Non-interest Income Service charges on deposit accounts $ 179 $ 165 $ 165 $ 721 $ 575 Net gain (loss) on sale of securities — — (167) — (167) Gain on sale of loans 150 306 317 1,274 1,952 Loan-related fees 400 406 667 1,605 1,719 FHLB stock dividends 332 327 314 1,320 970 Earnings on bank-owned life insurance 182 162 155 644 510 Other income 423 15 485 889 1,952 Total non-interest income $ 1,666 $ 1,381 $ 1,936 $ 6,453 $ 7,511 Non-interest Expense Salaries and employee benefits $ 8,360 $ 7,969 $ 7,182 $ 31,709 $ 27,097 Occupancy and equipment 649 626 583 2,547 2,218 Data processing and software 1,369 1,327 1,110 5,088 4,015 Federal Deposit Insurance Corporation insurance 440 405 370 1,635 1,557 Professional services 774 830 658 3,078 2,575 Advertising and promotional 752 584 717 2,411 2,403 Loan-related expenses 321 292 268 1,207 1,192 Other operating expenses 1,823 1,743 1,775 6,818 6,718 Total non-interest expense $ 14,488 $ 13,776 $ 12,663 $ 54,493 $ 47,775

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Shareholder Returns Fourth Quarter 2024 Investor Presentation | 29 ROAA ROAE EPS (basic and diluted) Value per Share (book and tangible book(1)) Note: All 2024 figures are through December 31, 2024. 1. See Appendix for more information on this non-GAAP measure. 1.57% 1.44% 1.23% 2022 2023 2024 18.80% 17.85% 12.72% 2022 2023 2024 $2.61 $2.78 $2.26 2022 2023 2024 $14.66 $16.56 $18.60 2022 2023 2024

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Five Star Bank customer, Visit Sacramento, ensures our region is a leading destination for meetings, conventions, travel trade and leisure, which support the vitality of our regional economy by driving almost $200 million in visitor spending annually. Their vision is for every person in the world to say, “I want to visit Sacramento!” David Eadie, Chief Sports & Entertainment Officer Sonya Bradley, Chief DEI & Community Relations Officer Mariles Krock, Chief Convention Sales & Services Officer Kari Miskit, Chief Operating Officer & Media Relations Mike Testa, President & CEO Five Star Bank customer, Cristo Rey High School Sacramento, is a Catholic, fully-accredited college preparatory high school. They offer a focused curriculum designed to support students not only in being accepted to college, but in graduating from college. Their goal is to educate the “whole person,” that is the mind, body and spirit of each student. They offer a challenging academic curriculum, as well as opportunities for co-curricular, spiritual and religious formation. Dave Lucchetti, Five Star Bancorp Retired Board Chair Father Christopher Calderon, President Cristo Rey Students Five Star Bank supports our customer, Street Soccer USA ("SSUSA"), and their mission to fight poverty and strengthen communities through soccer. SSUSA serves youth and special needs populations including families experiencing homelessness, and adults recovering from addiction/substance abuse and mental health diagnoses. SSUSA is the official partner of the Homeless World Cup and Street Child World Cup. We share their mission to fight poverty and strengthen others as they encourage positive changes in their players' lives. Sienna Jackson, Homeless World Cup 2023 Sacramento, California – Team USA Lisa Wrightsman, Managing Director, SSUSA and Homeless World Cup 2010 Rio De Janeiro, Brazil – Team USA Angela Draws, Homeless World Cup 2014 Santiago, Chile – Team USA We strive to become the top business bank in all markets we serve through exceptional service, deep connectivity, and customer empathy. We are dedicated to serving real estate, agricultural, faith-based, and small to medium-sized enterprises. We aim to consistently deliver value that meets or exceeds the expectations of our shareholders, customers, employees, business partners, and community.

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Appendix: Non-GAAP Reconciliation (Unaudited) The Company uses financial information in its analysis of the Company's performance that is not in conformity with GAAP. The Company believes that these non-GAAP financial measures provide useful information to management and investors that is supplementary to the Company's financial condition, results of operations, and cash flows computed in accordance with GAAP. However, the Company acknowledges that its non-GAAP financial measures have a number of limitations. As such, investors should not view these disclosures as a substitute for results determined in accordance with GAAP. Additionally, these non-GAAP measures are not necessarily comparable to non-GAAP financial measures that other banking companies use. Other banking companies may use names similar to those the Company uses for the non-GAAP financial measures the Company discloses, but may calculate them differently. Investors should understand how the Company and other companies each calculate their non-GAAP financial measures when making comparisons. Average loan yield, excluding PPP loans, is defined as the daily average loan yield, excluding PPP loans, and includes both performing and nonperforming loans. The most directly comparable GAAP financial measure is average loan yield. We had no PPP loans nor interest and fee income on PPP loans for the periods shown in this presentation other than the years ended December 31, 2020, 2021, and 2022. As a result, average loan yield, excluding PPP loans, is the same as daily average loan yield for all periods presented other than the years ended December 31, 2020, 2021, and 2022. Reconciliations for such periods are provided below. Total assets, excluding PPP loans, is defined as total assets less PPP loans. The most directly comparable GAAP financial measure is total assets. We had no PPP loans as of the period ends shown in this presentation other than as of December 31, 2020 and 2021. As a result, total assets, excluding PPP loans, is the same as total assets for all periods presented, other than as of December 31, 2020 and 2021. Reconciliations for such periods are provided below. Pre-tax, pre-provision income is defined as pre-tax income plus provision for credit losses. The most directly comparable GAAP financial measure is pre-tax income. Tangible book value per share is defined as total shareholders’ equity less goodwill and other intangible assets, divided by the outstanding number of common shares at the end of the period. The most directly comparable GAAP financial measure is book value per share. We had no goodwill or other intangible assets at the end of any period indicated. As a result, tangible book value per share is the same as book value per share at the end of each of the periods indicated. Fourth Quarter 2024 Investor Presentation | 31

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Appendix: Non-GAAP Reconciliation (Unaudited) Fourth Quarter 2024 Investor Presentation | 32 (in millions) Total assets, excluding PPP loans 12/31/20 12/31/21 12/31/22 12/31/23 3/31/24 6/30/24 9/30/24 12/31/24 Total assets $ 1,954 $ 2,557 $ 3,227 $ 3,593 $ 3,476 $ 3,634 $ 3,887 $ 4,053 Less: PPP loans 148 22 — — — — — — Total assets, excluding PPP loans $ 1,806 $ 2,535 $ 3,227 $ 3,593 $ 3,476 $ 3,634 $ 3,887 $ 4,053 (in thousands) Three months ended Year ended Pre-tax, pre-provision income 3/31/23 6/30/23 9/30/23 12/31/23 3/31/24 6/30/24 9/30/24 12/31/24 12/31/22 12/31/23 12/31/24 Pre-tax income $ 18,501 $ 17,169 $ 15,795 $ 15,151 $ 14,961 $ 15,152 $ 15,241 $ 19,367 $ 62,858 $ 66,616 $ 64,721 Add: provision for credit losses 900 1,250 1,050 800 900 2,000 2,750 1,300 6,700 4,000 6,950 Pre-tax, pre-provision income $ 19,401 $ 18,419 $ 16,845 $ 15,951 $ 15,861 $ 17,152 $ 17,991 $ 20,667 $ 69,558 $ 70,616 $ 71,671 (in thousands) Three months ended Year ended Average loan yield, excluding PPP loans 3/31/23 6/30/23 9/30/23 12/31/23 3/31/24 6/30/24 9/30/24 12/31/24 12/31/20 12/31/21 12/31/22 12/31/23 12/31/24 Interest and fee income on loans $ 37,494 $ 39,929 $ 41,861 $ 43,429 $ 43,786 $ 46,362 $ 50,390 $ 52,803 $ 71,405 $ 78,894 $ 111,795 $ 162,713 $ 193,341 Less: interest and fee income on PPP loans — — — — — — — — 6,535 7,417 635 — — Interest and fee income on loans, excluding PPP loans 37,494 39,929 41,861 43,429 43,786 46,362 50,390 52,803 64,870 71,477 111,160 162,713 193,341 Annualized interest and fee income on loans, excluding PPP loans (numerator) 152,059 160,155 166,079 172,300 176,106 186,467 200,465 210,064 64,870 71,477 111,160 162,713 193,341 Average loans held for investment and sale 2,836,070 2,914,388 2,982,140 3,055,042 3,082,290 3,197,921 3,354,050 3,498,109 1,439,380 1,637,280 2,353,148 2,947,603 3,283,874 Less: average PPP loans — — — — — — — — 165,414 116,652 2,297 — — Average loans held for investment and sale, excluding PPP loans (denominator) 2,836,070 2,914,388 2,982,140 3,055,042 3,082,290 3,197,921 3,354,050 3,498,109 1,273,966 1,520,628 2,350,851 2,947,603 3,283,874 Average loan yield, excluding PPP loans 5.36 % 5.50 % 5.57 % 5.64 % 5.71 % 5.83 % 5.98 % 6.01 % 5.09 % 4.70 % 4.73 % 5.52 % 5.89 %

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