8-K
FIVE STAR BANCORP (FSBC)
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): October 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) |
| --- | --- |
| ☐ | Pre-commencement communication pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| --- | --- |
| ☐ | Pre-commencement communication pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| --- | --- |
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 October 27, 2025, Five Star Bancorp (the “Company”) issued a press release announcing its results of operations and financial condition for the quarter ended September 30, 2025. 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 October 28, 2025 at 10:00 AM PT/1:00 PM ET to discuss its third quarter 2025 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 dated October 27, 2025 |
| 99.2 | Third Quarter 2025 Investor Presentation, dated October 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: October 27, 2025 |
Document
| PRESS RELEASE | FOR IMMEDIATE RELEASE |
|---|
Five Star Bancorp Announces Third Quarter 2025 Results
RANCHO CORDOVA, CA October 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 $16.3 million for the three months ended September 30, 2025, as compared to $14.5 million for the three months ended June 30, 2025 and $10.9 million for the three months ended September 30, 2024.
Third Quarter Highlights
Performance and operating highlights for the Company for the periods noted below included the following:
| Three months ended | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| (in thousands, except per share and share data) | September 30,<br>2025 | June 30,<br>2025 | September 30,<br>2024 | ||||||
| Return on average assets (“ROAA”) | 1.44 | % | 1.37 | % | 1.18 | % | |||
| Return on average equity (“ROAE”) | 15.35 | % | 14.17 | % | 11.31 | % | |||
| Pre-tax income | $ | 22,234 | $ | 20,099 | $ | 15,241 | |||
| Pre-tax, pre-provision income(1) | $ | 24,734 | $ | 22,599 | $ | 17,991 | |||
| Net income | $ | 16,344 | $ | 14,508 | $ | 10,941 | |||
| Basic earnings per common share | $ | 0.77 | $ | 0.68 | $ | 0.52 | |||
| Diluted earnings per common share | $ | 0.77 | $ | 0.68 | $ | 0.52 | |||
| Weighted average basic common shares outstanding | 21,231,563 | 21,225,831 | 21,182,143 | ||||||
| Weighted average diluted common shares outstanding | 21,281,818 | 21,269,265 | 21,232,758 | ||||||
| Shares outstanding at end of period | 21,367,387 | 21,360,991 | 21,319,583 |
(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:
“Five Star Bank’s third quarter results include outstanding growth in loans and core deposits attributable to our successful organic growth strategy that continues to fuel momentum and drive demand for our differentiated customer experience. During the quarter, total loans held for investment increased by $129.2 million, or 3.44% (13.76% when annualized), and total deposits increased by $208.8 million, or 5.36% (21.45% when annualized). Wholesale deposits decreased by $150.2 million, or 22.87%, while non-wholesale deposits increased by $359.0 million, or 11.09% (44.34% when annualized), during the same period.
Cost of funds decreased two basis points to 2.51% during the third quarter, while net interest margin increased by three basis points to 3.56%, and our efficiency ratio decreased to 40.13% compared to 41.03% for the second quarter. This quarter, we are pleased to have declared another cash dividend to shareholders, which exemplifies our commitment to shareholder value.
In the third quarter, we opened our ninth full-service office in Walnut Creek, California, in response to the demand for our services in the San Francisco Bay Area. Total deposits from the San Francisco Bay Area were $548.9 million as of September 30, 2025. In addition to the new Walnut Creek office, we are pleased with the growth of our previously announced Food, Agribusiness, and Diversified Industries business, where clients benefit from our Global Trade Services and exceptional treasury management tools.
Five Star Bank’s success serves as a strong testimony to clients who value our team of committed professionals who provide authentic, relationship-based service. We will continue to ensure our technology stack, operating
efficiencies, conservative underwriting practices, exceptional credit quality, and prudent approach to portfolio management benefit our customers, employees, community, and shareholders. As we look to the fourth quarter of 2025, we thank our employees for their outstanding commitment to ensuring Five Star Bank remains a safe, trusted, and steadfast banking partner.”
Financial highlights as of and during the three months ended September 30, 2025 included the following:
•The San Francisco Bay Area team increased from 34 to 36 employees and generated deposit balances totaling $548.9 million at September 30, 2025, an increase of $91.9 million from June 30, 2025.
•The number of Business Development Officers remained steady at 40 from June 30, 2025 to September 30, 2025.
•Cash and cash equivalents were $580.4 million, representing 14.15% of total deposits at September 30, 2025, as compared to 12.42% at June 30, 2025.
•Total deposits increased by $208.8 million, or 5.36%, during the three months ended September 30, 2025, with increases in non-wholesale deposits exceeding decreases in wholesale deposits. The Company defines wholesale deposits as brokered deposits and California Time Deposit Program deposits. During the three months ended September 30, 2025, non-wholesale deposits increased by $359.0 million, or 11.09%, and wholesale deposits decreased by $150.2 million, or 22.87%.
•The Company had no short-term borrowings at September 30, 2025 or June 30, 2025.
•Consistent, disciplined management of expenses contributed to our efficiency ratio of 40.13% for the three months ended September 30, 2025, as compared to 41.03% for the three months ended June 30, 2025 and 43.37% for the three months ended September 30, 2024.
•For the three months ended September 30, 2025, net interest margin was 3.56%, as compared to 3.53% for the three months ended June 30, 2025 and 3.37% for the three months ended September 30, 2024. The effective federal funds rate decreased to 4.09% as of September 30, 2025 from 4.33% at June 30, 2025 and 4.83% at September 30, 2024.
•Other comprehensive loss was $2.1 million during the three months ended September 30, 2025. Unrealized losses, net of tax effect, on available-for-sale securities were $9.9 million as of September 30, 2025. Total carrying value of held-to-maturity and available-for-sale securities represented 0.05% and 2.12% of total interest-earning assets, respectively, as of September 30, 2025.
•The Company’s common equity Tier 1 capital ratio was 10.77% and 10.85% as of September 30, 2025 and June 30, 2025, 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 September 30, 2025 was as follows:
| (in thousands) | September 30,<br>2025 | June 30,<br>2025 | Change | % Change | |||
|---|---|---|---|---|---|---|---|
| Loans held for investment | $ | 3,887,259 | $ | 3,758,025 | 3.44 | % | |
| Non-interest-bearing deposits | 1,059,082 | 1,004,061 | 55,021 | 5.48 | % | ||
| Interest-bearing deposits | 3,044,356 | 2,890,561 | 153,795 | 5.32 | % | ||
| (in thousands) | September 30,<br>2025 | September 30,<br>2024 | Change | % Change | |||
| Loans held for investment | $ | 3,887,259 | $ | 3,460,565 | 12.33 | % | |
| Non-interest-bearing deposits | 1,059,082 | 906,939 | 152,143 | 16.78 | % | ||
| Interest-bearing deposits | 3,044,356 | 2,493,040 | 551,316 | 22.11 | % |
All values are in US Dollars.
•The ratio of nonperforming loans to loans held for investment at period end decreased from 0.06% at June 30, 2025 to 0.05% at September 30, 2025.
•The Company’s Board of Directors declared on July 17, 2025, and the Company subsequently paid, a cash dividend of $0.20 per share during the three months ended September 30, 2025. The Company’s Board of Directors subsequently declared another cash dividend of $0.20 per share on October 16, 2025, which the Company expects to pay on November 10, 2025 to shareholders of record as of November 3, 2025.
Summary Results
Three months ended September 30, 2025, as compared to three months ended June 30, 2025
The Company’s net income was $16.3 million for the three months ended September 30, 2025, as compared to $14.5 million for the three months ended June 30, 2025. Net interest income increased by $2.8 million during the three months ended September 30, 2025, as compared to the three months ended June 30, 2025, primarily due to an increase in interest income driven by loan growth and an improvement in the average yield on loans, partially offset by an increase in interest expense driven by deposit growth. The provision for credit losses remained at $2.5 million for the three months ended June 30, 2025 and September 30, 2025. Non-interest income increased by $0.2 million, primarily due to an increase in swap referral fees during the three months ended September 30, 2025, as compared to the three months ended June 30, 2025. Non-interest expense increased by $0.9 million during the three months ended September 30, 2025, as compared to the three months ended June 30, 2025, primarily due to salaries and employee benefits due to increased headcount.
Three months ended September 30, 2025, as compared to three months ended September 30, 2024
The Company’s net income was $16.3 million for the three months ended September 30, 2025, as compared to $10.9 million for the three months ended September 30, 2024. Net interest income increased by $9.0 million during the three months ended September 30, 2025, as compared to the three months ended September 30, 2024, primarily due to an increase in interest income driven by loan growth and an improvement in the average yield on loans, partially offset by an increase in interest expense driven by deposit growth. The provision for credit losses decreased by $0.3 million, with decreases in net charge-offs during the three months ended September 30, 2025 as the leading driver. Non-interest income increased by $0.6 million, primarily due to an overall improvement in earnings related to investments in venture-backed funds, partially offset by a decrease in the volume of loans sold during the three months ended September 30, 2025, as compared to the three months ended September 30, 2024. Non-interest expense increased by $2.8 million during the three months ended September 30, 2025, as compared to the three months ended September 30, 2024, primarily due to salaries and employee benefits due to increased headcount.
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) | September 30,<br>2025 | June 30,<br>2025 | Change | % Change | |||||
| Selected operating data: | |||||||||
| Net interest income | $ | 39,348 | $ | 36,515 | 7.76 | % | |||
| Provision for credit losses | 2,500 | 2,500 | — | — | % | ||||
| Non-interest income | 1,966 | 1,810 | 156 | 8.62 | % | ||||
| Non-interest expense | 16,580 | 15,726 | 854 | 5.43 | % | ||||
| Pre-tax income | 22,234 | 20,099 | 2,135 | 10.62 | % | ||||
| Provision for income taxes | 5,890 | 5,591 | 299 | 5.35 | % | ||||
| Net income | $ | 16,344 | $ | 14,508 | 12.66 | % | |||
| Earnings per common share: | |||||||||
| Basic | $ | 0.77 | $ | 0.68 | 13.24 | % | |||
| Diluted | $ | 0.77 | $ | 0.68 | 13.24 | % | |||
| Performance and other financial ratios: | |||||||||
| ROAA | 1.44 | % | 1.37 | % | |||||
| ROAE | 15.35 | % | 14.17 | % | |||||
| Net interest margin | 3.56 | % | 3.53 | % | |||||
| Cost of funds | 2.51 | % | 2.53 | % | |||||
| Efficiency ratio | 40.13 | % | 41.03 | % |
All values are in US Dollars.
| Three months ended | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| (in thousands, except per share data) | September 30,<br>2025 | September 30,<br>2024 | Change | % Change | |||||
| Selected operating data: | |||||||||
| Net interest income | $ | 39,348 | $ | 30,386 | 29.49 | % | |||
| Provision for credit losses | 2,500 | 2,750 | (250) | (9.09) | % | ||||
| Non-interest income | 1,966 | 1,381 | 585 | 42.36 | % | ||||
| Non-interest expense | 16,580 | 13,776 | 2,804 | 20.35 | % | ||||
| Pre-tax income | 22,234 | 15,241 | 6,993 | 45.88 | % | ||||
| Provision for income taxes | 5,890 | 4,300 | 1,590 | 36.98 | % | ||||
| Net income | $ | 16,344 | $ | 10,941 | 49.38 | % | |||
| Earnings per common share: | |||||||||
| Basic | $ | 0.77 | $ | 0.52 | 48.08 | % | |||
| Diluted | $ | 0.77 | $ | 0.52 | 48.08 | % | |||
| Performance and other financial ratios: | |||||||||
| ROAA | 1.44 | % | 1.18 | % | |||||
| ROAE | 15.35 | % | 11.31 | % | |||||
| Net interest margin | 3.56 | % | 3.37 | % | |||||
| Cost of funds | 2.51 | % | 2.72 | % | |||||
| Efficiency ratio | 40.13 | % | 43.37 | % |
All values are in US Dollars.
Balance Sheet Summary
| (in thousands) | September 30,<br>2025 | June 30,<br>2025 | Change | % Change | |||
|---|---|---|---|---|---|---|---|
| Selected financial condition data: | |||||||
| Total assets | $ | 4,641,770 | $ | 4,413,473 | 5.17 | % | |
| Cash and cash equivalents | 580,447 | 483,810 | 96,637 | 19.97 | % | ||
| Total loans held for investment | 3,887,259 | 3,758,025 | 129,234 | 3.44 | % | ||
| Total investments | 97,825 | 97,575 | 250 | 0.26 | % | ||
| Total liabilities | 4,210,462 | 3,996,731 | 213,731 | 5.35 | % | ||
| Total deposits | 4,103,438 | 3,894,622 | 208,816 | 5.36 | % | ||
| Subordinated notes, net | 74,004 | 73,968 | 36 | 0.05 | % | ||
| Total shareholders’ equity | 431,308 | 416,742 | 14,566 | 3.50 | % |
All values are in US Dollars.
•Insured and collateralized deposits were approximately $2.7 billion, representing 65.25% of total deposits as of September 30, 2025, as compared to 67.06% as of June 30, 2025. Net uninsured and uncollateralized deposits were approximately $1.4 billion as of September 30, 2025, increasing from $1.3 billion at June 30, 2025.
•Non-wholesale deposit accounts constituted 87.66% of total deposits as of September 30, 2025, as compared to 83.14% at June 30, 2025. Deposit relationships of greater than $5 million represented 60.14% of total deposits as of September 30, 2025, as compared to 59.91% as of June 30, 2025, and had an average age of approximately 7.98 years as of September 30, 2025, as compared to 8.34 years as of June 30, 2025.
•Total deposits as of September 30, 2025 were $4.1 billion, an increase of $208.8 million, or 5.36%, from June 30, 2025, comprised of increases in both interest-bearing and non-interest-bearing deposits. Interest-bearing deposits added $171.6 million in growth, which was primarily due to the opening of new money market deposit accounts during the quarter, adding $141.3 million in new balances. Non-interest-bearing deposit growth was driven by new accounts opened during the quarter, adding $28.8 million in new balances.
•Cash and cash equivalents as of September 30, 2025 were $580.4 million, representing 14.15% of total deposits at September 30, 2025, as compared to 12.42% as of June 30, 2025.
•Total liquidity (consisting of cash and cash equivalents and unused and immediately available borrowing capacity as set forth below) was approximately $2.3 billion as of September 30, 2025, as compared to $2.2 billion at June 30, 2025.
| September 30, 2025 | ||||||||
|---|---|---|---|---|---|---|---|---|
| (in thousands) | Line of Credit | Letters of Credit Issued | Borrowings | Available | ||||
| Federal Home Loan Bank of San Francisco (“FHLB”) advances | $ | 1,420,987 | $ | 762,500 | $ | — | $ | 658,487 |
| Federal Reserve Discount Window | 918,370 | — | — | 918,370 | ||||
| Correspondent bank lines of credit | 185,000 | — | — | 185,000 | ||||
| Cash and cash equivalents | — | — | — | 580,447 | ||||
| Total | $ | 2,524,357 | $ | 762,500 | $ | — | $ | 2,342,304 |
| (in thousands) | September 30,<br>2025 | December 31,<br>2024 | Change | % Change | ||||
| --- | --- | --- | --- | --- | --- | --- | --- | |
| Selected financial condition data: | ||||||||
| Total assets | $ | 4,641,770 | $ | 4,053,278 | 14.52 | % | ||
| Cash and cash equivalents | 580,447 | 352,343 | 228,104 | 64.74 | % | |||
| Total loans held for investment | 3,887,259 | 3,532,686 | 354,573 | 10.04 | % | |||
| Total investments | 97,825 | 100,914 | (3,089) | (3.06) | % | |||
| Total liabilities | 4,210,462 | 3,656,654 | 553,808 | 15.15 | % | |||
| Total deposits | 4,103,438 | 3,557,994 | 545,444 | 15.33 | % | |||
| Subordinated notes, net | 74,004 | 73,895 | 109 | 0.15 | % | |||
| Total shareholders’ equity | 431,308 | 396,624 | 34,684 | 8.74 | % |
All values are in US Dollars.
The increase in total assets from December 31, 2024 to September 30, 2025 was primarily comprised of a $354.6 million increase in total loans held for investment and a $228.1 million increase in cash and cash equivalents. The $354.6 million increase in total loans held for investment between December 31, 2024 and September 30, 2025 was a result of $931.8 million in loan originations and advances, partially offset by $219.8 million and $357.5 million in loan payoffs and paydowns, respectively. The $354.6 million increase in total loans held for investment included $70.7 million in purchases of loans within the consumer concentration of the loan portfolio. The $228.1 million increase in cash and cash equivalents primarily resulted from a $217.8 million increase in interest-bearing deposits in banks.
The increase in total liabilities from December 31, 2024 to September 30, 2025 was primarily due to an increase in deposits of $545.4 million. The increase in deposits was largely due to increases in money market and non-interest-bearing deposits of $446.9 million and $136.5 million, respectively.
The increase in total shareholders’ equity from December 31, 2024 to September 30, 2025 was primarily a result of net income recognized of $44.0 million and a $2.5 million increase in accumulated other comprehensive income, partially offset by $12.8 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) | September 30,<br>2025 | June 30,<br>2025 | Change | % Change | |||||
| Interest and fee income | $ | 64,845 | $ | 60,580 | 7.04 | % | |||
| Interest expense | 25,497 | 24,065 | 1,432 | 5.95 | % | ||||
| Net interest income | $ | 39,348 | $ | 36,515 | 7.76 | % | |||
| Net interest margin | 3.56 | % | 3.53 | % | |||||
| Three months ended | |||||||||
| (in thousands) | September 30,<br>2025 | September 30,<br>2024 | Change | % Change | |||||
| Interest and fee income | $ | 64,845 | $ | 52,667 | 23.12 | % | |||
| Interest expense | 25,497 | 22,281 | 3,216 | 14.43 | % | ||||
| Net interest income | $ | 39,348 | $ | 30,386 | 29.49 | % | |||
| Net interest margin | 3.56 | % | 3.37 | % |
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 | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| September 30, 2025 | June 30, 2025 | September 30, 2024 | ||||||||||||||||
| (in thousands) | Average<br>Balance | Interest <br>Income/<br>Expense | Yield/ Rate | Average<br>Balance | Interest <br>Income/<br>Expense | Yield/ Rate | Average<br>Balance | Interest <br>Income/<br>Expense | Yield/ Rate | |||||||||
| Assets | ||||||||||||||||||
| Interest-earning deposits in banks | $ | 451,534 | $ | 5,009 | 4.40 | % | $ | 361,866 | $ | 3,987 | 4.42 | % | $ | 126,266 | $ | 1,657 | 5.22 | % |
| Investment securities | 96,806 | 579 | 2.38 | % | 97,886 | 577 | 2.37 | % | 106,256 | 620 | 2.32 | % | ||||||
| Loans held for investment and sale | 3,831,851 | 59,257 | 6.14 | % | 3,691,616 | 56,016 | 6.09 | % | 3,354,050 | 50,390 | 5.98 | % | ||||||
| Total interest-earning assets | 4,380,191 | 64,845 | 5.87 | % | 4,151,368 | 60,580 | 5.85 | % | 3,586,572 | 52,667 | 5.84 | % | ||||||
| Interest receivable and other assets, net | 110,118 | 101,632 | 91,965 | |||||||||||||||
| Total assets | $ | 4,490,309 | $ | 4,253,000 | $ | 3,678,537 | ||||||||||||
| Liabilities and shareholders’ equity | ||||||||||||||||||
| Interest-bearing transaction accounts | $ | 300,642 | $ | 1,194 | 1.58 | % | $ | 283,369 | $ | 1,043 | 1.48 | % | $ | 302,188 | $ | 1,237 | 1.63 | % |
| Savings accounts | 130,973 | 895 | 2.71 | % | 121,692 | 801 | 2.64 | % | 124,851 | 979 | 3.12 | % | ||||||
| Money market accounts | 1,874,089 | 15,348 | 3.25 | % | 1,647,628 | 13,270 | 3.23 | % | 1,578,244 | 14,688 | 3.70 | % | ||||||
| Time accounts | 639,434 | 6,899 | 4.28 | % | 726,295 | 7,790 | 4.30 | % | 326,640 | 4,172 | 5.08 | % | ||||||
| Subordinated notes and other borrowings | 73,981 | 1,161 | 6.23 | % | 73,967 | 1,161 | 6.30 | % | 76,988 | 1,205 | 6.23 | % | ||||||
| Total interest-bearing liabilities | 3,019,119 | 25,497 | 3.35 | % | 2,852,951 | 24,065 | 3.38 | % | 2,408,911 | 22,281 | 3.68 | % | ||||||
| Demand accounts | 1,016,560 | 957,034 | 852,872 | |||||||||||||||
| Interest payable and other liabilities | 32,210 | 32,406 | 32,062 | |||||||||||||||
| Shareholders’ equity | 422,420 | 410,609 | 384,692 | |||||||||||||||
| Total liabilities & shareholders’ equity | $ | 4,490,309 | $ | 4,253,000 | $ | 3,678,537 | ||||||||||||
| Net interest spread | 2.52 | % | 2.47 | % | 2.16 | % | ||||||||||||
| Net interest income/margin | $ | 39,348 | 3.56 | % | $ | 36,515 | 3.53 | % | $ | 30,386 | 3.37 | % |
Net interest income during the three months ended September 30, 2025 increased $2.8 million, or 7.76%, to $39.3 million compared to $36.5 million during the three months ended June 30, 2025. Net interest margin totaled 3.56% for the three months ended September 30, 2025, an increase of three basis points compared to the prior quarter. The increase in net interest income is primarily attributable to an additional $4.3 million in interest income, mainly due to a $140.2 million, or 3.80%, increase in the average balance of loans and a five basis point improvement in the average yield on loans during the three months ended September 30, 2025 compared to the prior quarter. The increase in interest income was partially offset by an additional $1.4 million in interest expense, which was mainly driven by a $225.7 million, or 6.04%, increase in the average balance of deposits at an average rate of two basis points lower than the prior quarter. In addition, the average balance of non-interest bearing deposits increased by $59.5 million, or 6.22%, compared to the prior quarter.
As compared to the three months ended September 30, 2024, net interest income during the three months ended September 30, 2025 increased by $9.0 million, or 29.49%, to $39.3 million from $30.4 million. Net interest margin totaled 3.56% for the three months ended September 30, 2025, an increase of 19 basis points compared to the same quarter of the prior year. The increase in net interest income is primarily attributable to an additional $12.2 million in interest income, mainly due to a $477.8 million, or 14.25%, increase in the average balance of loans and a 16 basis point improvement in the average yield on loans during the three months ended September 30, 2025 compared to the same quarter of the prior year. The increase in interest income was partially offset by an additional $3.2 million in interest expense compared to the same quarter of the prior year. The increase in interest expense is mainly attributable to a $776.9 million, or 24.39%, increase in the average balance of deposits at an average rate of 19 basis points lower during the three months ended September 30, 2025 compared to the same quarter of the prior year. In addition, the average balance of non-interest-bearing deposits increased by $163.7 million, or 19.19%, compared to the same period of the prior year.
Loans by Type
The following table provides loan balances, excluding deferred loan fees, by type as of the dates shown:
| (in thousands) | September 30, 2025 | June 30, 2025 | ||
|---|---|---|---|---|
| Real estate: | ||||
| Commercial | $ | 3,144,303 | $ | 3,066,627 |
| Commercial land and development | 934 | 1,422 | ||
| Commercial construction | 136,988 | 112,399 | ||
| Residential construction | 5,976 | 5,479 | ||
| Residential | 35,739 | 33,132 | ||
| Farmland | 57,572 | 51,579 | ||
| Commercial: | ||||
| Secured | 191,170 | 173,855 | ||
| Unsecured | 38,658 | 37,568 | ||
| Consumer and other | 278,209 | 278,215 | ||
| Net deferred loan fees | (2,290) | (2,251) | ||
| Total loans held for investment | $ | 3,887,259 | $ | 3,758,025 |
Interest-bearing Deposits
The following table provides interest-bearing deposit balances by type as of the dates shown:
| (in thousands) | September 30, 2025 | June 30, 2025 | ||
|---|---|---|---|---|
| Interest-bearing transaction accounts | $ | 309,118 | $ | 292,257 |
| Money market accounts | 1,972,158 | 1,704,652 | ||
| Savings accounts | 137,500 | 121,567 | ||
| Time accounts | 625,580 | 772,085 | ||
| Total interest-bearing deposits | $ | 3,044,356 | $ | 2,890,561 |
Asset Quality
Allowance for Credit Losses
At September 30, 2025, the Company’s allowance for credit losses was $42.1 million, as compared to $37.8 million at December 31, 2024. The $4.3 million increase in the allowance is due to a $7.1 million provision for credit losses recorded during the nine months ended September 30, 2025, partially offset by net charge-offs of $2.8 million, primarily attributable to commercial and industrial loans, during the same period.
The Company’s ratio of nonperforming loans to loans held for investment remained at 0.05% at September 30, 2025 and December 31, 2024. Loans designated as watch decreased from $123.4 million to $92.7 million between December 31, 2024 and September 30, 2025. As a result, loans designated as substandard increased from $2.6 million to $18.6 million between December 31, 2024 and September 30, 2025, primarily attributable to the downgrade of one special purpose commercial real estate loan whose borrower was experiencing financial difficulty. There were no loans with doubtful risk grades at September 30, 2025 or December 31, 2024.
A summary of the allowance for credit losses by loan class is as follows:
| September 30, 2025 | December 31, 2024 | |||||||
|---|---|---|---|---|---|---|---|---|
| (in thousands) | Amount | % of Total | Amount | % of Total | ||||
| Real estate: | ||||||||
| Commercial | $ | 23,473 | 55.81 | % | $ | 25,864 | 68.44 | % |
| Commercial land and development | 30 | 0.07 | % | 78 | 0.21 | % | ||
| Commercial construction | 4,355 | 10.35 | % | 2,268 | 6.00 | % | ||
| Residential construction | 108 | 0.26 | % | 64 | 0.17 | % | ||
| Residential | 351 | 0.83 | % | 270 | 0.71 | % | ||
| Farmland | 425 | 1.01 | % | 607 | 1.61 | % | ||
| 28,742 | 68.33 | % | 29,151 | 77.14 | % | |||
| Commercial: | ||||||||
| Secured | 10,400 | 24.73 | % | 5,866 | 15.52 | % | ||
| Unsecured | 438 | 1.04 | % | 278 | 0.74 | % | ||
| 10,838 | 25.77 | % | 6,144 | 16.26 | % | |||
| Consumer and other | 2,481 | 5.90 | % | 2,496 | 6.60 | % | ||
| Total allowance for credit losses | $ | 42,061 | 100.00 | % | $ | 37,791 | 100.00 | % |
The ratio of allowance for credit losses to loans held for investment was 1.08% at September 30, 2025, as compared to 1.07% at December 31, 2024.
Non-interest Income
The following table presents the key components of non-interest income for the periods indicated:
| Three months ended | |||||||
|---|---|---|---|---|---|---|---|
| (in thousands) | September 30,<br>2025 | June 30,<br>2025 | Change | % Change | |||
| Service charges on deposit accounts | $ | 185 | $ | 196 | (5.61) | % | |
| Gain on sale of loans | — | 119 | (119) | (100.00) | % | ||
| Loan-related fees | 683 | 468 | 215 | 45.94 | % | ||
| FHLB stock dividends | 329 | 325 | 4 | 1.23 | % | ||
| Earnings on bank-owned life insurance | 209 | 220 | (11) | (5.00) | % | ||
| Other income | 560 | 482 | 78 | 16.18 | % | ||
| Total non-interest income | $ | 1,966 | $ | 1,810 | 8.62 | % |
All values are in US Dollars.
Gain on sale of loans. The decrease related to an overall decline in the volume of loans sold. During the three months ended September 30, 2025, no loans were sold, as compared to approximately $1.6 million of loans sold with an effective yield of 7.60% during the three months ended June 30, 2025.
Loan-related fees. The increase resulted primarily from an increase of $0.2 million in swap referral fees recognized during the three months ended September 30, 2025, as compared to the three months ended June 30, 2025.
The following table presents the key components of non-interest income for the periods indicated:
| Three months ended | |||||||
|---|---|---|---|---|---|---|---|
| (in thousands) | September 30,<br>2025 | September 30,<br>2024 | Change | % Change | |||
| Service charges on deposit accounts | $ | 185 | $ | 165 | 12.12 | % | |
| Gain on sale of loans | — | 306 | (306) | (100.00) | % | ||
| Loan-related fees | 683 | 406 | 277 | 68.23 | % | ||
| FHLB stock dividends | 329 | 327 | 2 | 0.61 | % | ||
| Earnings on bank-owned life insurance | 209 | 162 | 47 | 29.01 | % | ||
| Other income | 560 | 15 | 545 | 3,633.33 | % | ||
| Total non-interest income | $ | 1,966 | $ | 1,381 | 42.36 | % |
All values are in US Dollars.
Gain on sale of loans. The decrease related to an overall decline in the volume of loans sold. During the three months ended September 30, 2025, no loans were sold, 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.
Loan-related fees. The increase resulted primarily from an increase of $0.3 million in swap referral fees recognized during the three months ended September 30, 2025, as compared to the three months ended September 30, 2024.
Other income. The increase related primarily to an overall improvement in earnings related to investments in venture-backed funds during the three months ended September 30, 2025 compared to the three months ended September 30, 2024.
Non-interest Expense
The following table presents the key components of non-interest expense for the periods indicated:
| Three months ended | |||||||
|---|---|---|---|---|---|---|---|
| (in thousands) | September 30,<br>2025 | June 30,<br>2025 | Change | % Change | |||
| Salaries and employee benefits | $ | 9,716 | $ | 8,910 | 9.05 | % | |
| Occupancy and equipment | 700 | 657 | 43 | 6.54 | % | ||
| Data processing and software | 1,559 | 1,508 | 51 | 3.38 | % | ||
| Federal Deposit Insurance Corporation (“FDIC”) insurance | 500 | 470 | 30 | 6.38 | % | ||
| Professional services | 932 | 918 | 14 | 1.53 | % | ||
| Advertising and promotional | 803 | 865 | (62) | (7.17) | % | ||
| Loan-related expenses | 317 | 423 | (106) | (25.06) | % | ||
| Other operating expenses | 2,053 | 1,975 | 78 | 3.95 | % | ||
| Total non-interest expense | $ | 16,580 | $ | 15,726 | 5.43 | % |
All values are in US Dollars.
Salaries and employee benefits. The increase related primarily to: (i) a $0.8 million increase in salaries, benefits, and bonus expense, mainly related to a 1.38% increase in headcount between June 30, 2025 and September 30, 2025; and (ii) a $0.1 million increase in commissions paid.
Loan-related expenses. The decrease related primarily to decreases in expenses related to loans, including amortization of servicing assets, inspections, and legal fees.
The following table presents the key components of non-interest expense for the periods indicated:
| Three months ended | |||||||
|---|---|---|---|---|---|---|---|
| (in thousands) | September 30,<br>2025 | September 30,<br>2024 | Change | % Change | |||
| Salaries and employee benefits | $ | 9,716 | $ | 7,969 | 21.92 | % | |
| Occupancy and equipment | 700 | 626 | 74 | 11.82 | % | ||
| Data processing and software | 1,559 | 1,327 | 232 | 17.48 | % | ||
| FDIC insurance | 500 | 405 | 95 | 23.46 | % | ||
| Professional services | 932 | 830 | 102 | 12.29 | % | ||
| Advertising and promotional | 803 | 584 | 219 | 37.50 | % | ||
| Loan-related expenses | 317 | 292 | 25 | 8.56 | % | ||
| Other operating expenses | 2,053 | 1,743 | 310 | 17.79 | % | ||
| Total non-interest expense | $ | 16,580 | $ | 13,776 | 20.35 | % |
All values are in US Dollars.
Salaries and employee benefits. The increase related primarily to: (i) a $1.7 million increase in salaries, benefits, and bonus expense, mainly related to a 13.33% increase in headcount between September 30, 2024 and September 30, 2025; and (ii) a $0.5 million increase in commissions paid. This increase was partially offset by a $0.5 million increase in deferred loan origination costs due to a greater number of loan originations, 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 a $0.1 million increase in fees paid for business development consulting services.
Advertising and promotional. The increase related primarily to additional expenses incurred to support the expansion of the Bank’s business development teams, including a $0.1 million increase in expenses related to
sponsored events and partnerships and a $0.1 million increase related to client and prospective client development expenses.
Other operating expenses. The increase was primarily due to: (i) a $0.1 million increase in administrative charges, including subscription services and bank charges; (ii) a $0.1 million increase in IntraFi Network fees resulting from an overall increase in balances carried in the network; and (iii) a $0.1 million increase in armored car and courier expenses.
Provision for Income Taxes
On July 4, 2025, the President signed H.R. 1, the “One Big Beautiful Bill Act,” into law. The legislation includes several changes to federal tax law that generally allow for more favorable deductibility of certain business expenses beginning in 2025, including the restoration of immediate expensing of domestic R&D expenditures, reinstatement of 100% bonus depreciation, and more favorable rules for determining the limitation on business interest expense. The Act also made certain changes to the deductibility of the cost of meals and charitable contributions that are effective for tax years beginning after December 31, 2025. These changes were not reflected in the income tax provision for the period ended September 30, 2025. The Company evaluated the impact on future periods and the legislation is not expected to have a significant impact on the Company's consolidated financial statements.
Three months ended September 30, 2025, as compared to three months ended June 30, 2025
Provision for income taxes increased to $5.9 million for the three months ended September 30, 2025 from $5.6 million for the three months ended June 30, 2025, which was primarily due to an increase in taxable income recognized during the three months ended September 30, 2025. The effective tax rates were 26.49% and 27.82% for the three months ended September 30, 2025 and June 30, 2025, respectively.
Three months ended September 30, 2025, as compared to three months ended September 30, 2024
Provision for income taxes increased by $1.6 million, or 36.98%, for the three months ended September 30, 2025 compared to the three months ended September 30, 2024. This increase was primarily driven by an increase in taxable income. The effective tax rates were 26.49% and 28.21% for the three months ended September 30, 2025 and September 30, 2024, respectively.
Webcast Details
Five Star Bancorp will host a live webcast for analysts and investors on Tuesday, October 28, 2025 at 1:00 PM ET (10:00 AM PT) to discuss its third quarter 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 nine 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, 2024 and Quarterly Reports on Form 10-Q for the three months ended March 31, 2025 and June 30, 2025, 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) | September 30,<br>2025 | June 30,<br>2025 | September 30,<br>2024 | ||||||
| Revenue and Expense Data | |||||||||
| Interest and fee income | $ | 64,845 | $ | 60,580 | $ | 52,667 | |||
| Interest expense | 25,497 | 24,065 | 22,281 | ||||||
| Net interest income | 39,348 | 36,515 | 30,386 | ||||||
| Provision for credit losses | 2,500 | 2,500 | 2,750 | ||||||
| Net interest income after provision | 36,848 | 34,015 | 27,636 | ||||||
| Non-interest income: | |||||||||
| Service charges on deposit accounts | 185 | 196 | 165 | ||||||
| Gain on sale of loans | — | 119 | 306 | ||||||
| Loan-related fees | 683 | 468 | 406 | ||||||
| FHLB stock dividends | 329 | 325 | 327 | ||||||
| Earnings on bank-owned life insurance | 209 | 220 | 162 | ||||||
| Other income | 560 | 482 | 15 | ||||||
| Total non-interest income | 1,966 | 1,810 | 1,381 | ||||||
| Non-interest expense: | |||||||||
| Salaries and employee benefits | 9,716 | 8,910 | 7,969 | ||||||
| Occupancy and equipment | 700 | 657 | 626 | ||||||
| Data processing and software | 1,559 | 1,508 | 1,327 | ||||||
| FDIC insurance | 500 | 470 | 405 | ||||||
| Professional services | 932 | 918 | 830 | ||||||
| Advertising and promotional | 803 | 865 | 584 | ||||||
| Loan-related expenses | 317 | 423 | 292 | ||||||
| Other operating expenses | 2,053 | 1,975 | 1,743 | ||||||
| Total non-interest expense | 16,580 | 15,726 | 13,776 | ||||||
| Income before provision for income taxes | 22,234 | 20,099 | 15,241 | ||||||
| Provision for income taxes | 5,890 | 5,591 | 4,300 | ||||||
| Net income | $ | 16,344 | $ | 14,508 | $ | 10,941 | |||
| Comprehensive Income | |||||||||
| Net income | $ | 16,344 | $ | 14,508 | $ | 10,941 | |||
| Net unrealized holding gain on securities available-for-sale during the period | 2,843 | 190 | 3,549 | ||||||
| Less: Income tax expense related to other comprehensive income (loss) | 763 | 502 | 1,049 | ||||||
| Other comprehensive income (loss) | 2,080 | (312) | 2,500 | ||||||
| Total comprehensive income | $ | 18,424 | $ | 14,196 | $ | 13,441 | |||
| Three months ended | |||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| (in thousands, except per share and share data) | September 30,<br>2025 | June 30,<br>2025 | September 30,<br>2024 | ||||||
| Share and Per Share Data | |||||||||
| Earnings per common share: | |||||||||
| Basic | $ | 0.77 | $ | 0.68 | $ | 0.52 | |||
| Diluted | $ | 0.77 | $ | 0.68 | $ | 0.52 | |||
| Book value per share | $ | 20.19 | $ | 19.51 | $ | 18.29 | |||
| Tangible book value per share(1) | $ | 20.19 | $ | 19.51 | $ | 18.29 | |||
| Weighted average basic common shares outstanding | 21,231,563 | 21,225,831 | 21,182,143 | ||||||
| Weighted average diluted common shares outstanding | 21,281,818 | 21,269,265 | 21,232,758 | ||||||
| Shares outstanding at end of period | 21,367,387 | 21,360,991 | 21,319,583 | ||||||
| Selected Financial Ratios | |||||||||
| ROAA | 1.44 | % | 1.37 | % | 1.18 | % | |||
| ROAE | 15.35 | % | 14.17 | % | 11.31 | % | |||
| Net interest margin | 3.56 | % | 3.53 | % | 3.37 | % | |||
| Loan to deposit(2) | 94.73 | % | 96.50 | % | 101.87 | % |
(1) See the section entitled “Non-GAAP Reconciliation (Unaudited)” for a reconciliation of this non-GAAP financial measure.
(2) Loan balance in loan to deposit ratio is total loans held for investment and sale at period end. Deposit balance in loan to deposit ratio is total deposits at period end.
| (in thousands) | September 30,<br>2025 | June 30,<br>2025 | September 30,<br>2024 | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Balance Sheet Data | |||||||||
| Cash and due from financial institutions | $ | 44,147 | $ | 53,724 | $ | 44,531 | |||
| Interest-bearing deposits in banks | 536,300 | 430,086 | 206,321 | ||||||
| Time deposits in banks | 100 | 849 | 4,118 | ||||||
| Securities - available-for-sale, at fair value | 95,635 | 94,990 | 104,238 | ||||||
| Securities - held-to-maturity, at amortized cost | 2,190 | 2,585 | 2,720 | ||||||
| Loans held for sale | — | 309 | 2,910 | ||||||
| Loans held for investment | 3,887,259 | 3,758,025 | 3,460,565 | ||||||
| Allowance for credit losses | (42,061) | (40,167) | (37,583) | ||||||
| Loans held for investment, net of allowance for credit losses | 3,845,198 | 3,717,858 | 3,422,982 | ||||||
| FHLB stock | 15,000 | 15,000 | 15,000 | ||||||
| Operating leases, right-of-use asset | 9,751 | 7,094 | 6,590 | ||||||
| Premises and equipment, net | 1,656 | 1,606 | 1,657 | ||||||
| Bank-owned life insurance | 23,676 | 23,466 | 19,192 | ||||||
| Interest receivable and other assets | 68,117 | 65,906 | 56,745 | ||||||
| Total assets | $ | 4,641,770 | $ | 4,413,473 | $ | 3,887,004 | |||
| Non-interest-bearing deposits | $ | 1,059,082 | $ | 1,004,061 | $ | 906,939 | |||
| Interest-bearing deposits | 3,044,356 | 2,890,561 | 2,493,040 | ||||||
| Total deposits | 4,103,438 | 3,894,622 | 3,399,979 | ||||||
| Subordinated notes, net | 74,004 | 73,968 | 73,859 | ||||||
| Other borrowings | — | — | — | ||||||
| Operating lease liability | 10,431 | 7,744 | 7,101 | ||||||
| Interest payable and other liabilities | 22,589 | 20,397 | 16,135 | ||||||
| Total liabilities | 4,210,462 | 3,996,731 | 3,497,074 | ||||||
| Common stock | 303,571 | 303,155 | 302,251 | ||||||
| Retained earnings | 137,615 | 125,545 | 97,411 | ||||||
| Accumulated other comprehensive loss, net of taxes | (9,878) | (11,958) | (9,732) | ||||||
| Total shareholders’ equity | 431,308 | 416,742 | 389,930 | ||||||
| Total liabilities and shareholders’ equity | $ | 4,641,770 | $ | 4,413,473 | $ | 3,887,004 | |||
| Quarterly Average Balance Data | |||||||||
| Average loans held for investment and sale | $ | 3,831,851 | $ | 3,691,616 | $ | 3,354,050 | |||
| Average interest-earning assets | 4,380,191 | 4,151,368 | 3,586,572 | ||||||
| Average total assets | 4,490,309 | 4,253,000 | 3,678,537 | ||||||
| Average deposits | 3,961,698 | 3,736,018 | 3,184,795 | ||||||
| Average total equity | 422,420 | 410,609 | 384,692 | ||||||
| Credit Quality | |||||||||
| Allowance for credit losses to nonperforming loans | 1,975.62 | % | 1,763.26 | % | 2,041.44 | % | |||
| Nonperforming loans to loans held for investment | 0.05 | % | 0.06 | % | 0.05 | % | |||
| Nonperforming assets to total assets | 0.05 | % | 0.05 | % | 0.05 | % | |||
| Nonperforming loans plus performing loan modifications to loans held for investment | 0.05 | % | 0.06 | % | 0.05 | % | |||
| (in thousands) | September 30,<br>2025 | June 30,<br>2025 | September 30,<br>2024 | ||||||
| --- | --- | --- | --- | --- | --- | --- | |||
| Capital Ratios | |||||||||
| Total shareholders’ equity to total assets | 9.29 | % | 9.44 | % | 10.03 | % | |||
| Tangible shareholders’ equity to tangible assets(1) | 9.29 | % | 9.44 | % | 10.03 | % | |||
| Total capital (to risk-weighted assets) | 13.59 | % | 13.73 | % | 13.94 | % | |||
| Tier 1 capital (to risk-weighted assets) | 10.77 | % | 10.85 | % | 10.93 | % | |||
| Common equity Tier 1 capital (to risk-weighted assets) | 10.77 | % | 10.85 | % | 10.93 | % | |||
| Tier 1 leverage ratio | 9.78 | % | 10.03 | % | 10.83 | % |
(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. Management believes that tangible shareholders’ equity to tangible assets is a useful financial measure because it enables management, investors, and others to assess the Company’s financial health based on tangible capital. 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. Management believes that tangible book value per share is a useful financial measure because it enables management, investors, and others to assess the Company’s value and use of equity. 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. Management believes that pre-tax, pre-provision income is a useful financial measure because it enables management, investors, and others to assess the Company’s ability to generate operating profit and capital.
The following reconciliation table provides a more detailed analysis of this non-GAAP financial measure:
| Three months ended | ||||||
|---|---|---|---|---|---|---|
| (in thousands) | September 30,<br>2025 | June 30,<br>2025 | September 30,<br>2024 | |||
| Pre-tax, pre-provision income | ||||||
| Pre-tax income | $ | 22,234 | $ | 20,099 | $ | 15,241 |
| Add: provision for credit losses | 2,500 | 2,500 | 2,750 | |||
| Pre-tax, pre-provision income | $ | 24,734 | $ | 22,599 | $ | 17,991 |
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
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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, 2024 and Quarterly Reports on Form 10-Q for the three months ended March 31, 2025 and June 30, 2025, 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 September 30, 2025 and for other quarterly periods are unaudited. Additionally, all figures presented as year-to-date and for periods that represent a full fiscal year ended December 31, represent unaudited results. 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. Third Quarter 2025 Investor Presentation | 2
Agenda Third Quarter 2025 Investor Presentation | 3 •Company Overview •Financial Highlights •Loans and Credit Quality •Deposit and Capital Overview
Company Overview Third Quarter 2025 Investor Presentation | 4
Executive Team Third Quarter 2025 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
Company Overview Nasdaq: Headquarters: Asset Size: Loans HFI: Deposits: Bank Branches: Third Quarter 2025 Investor Presentation | 6 FSBC Rancho Cordova, CA $4.6 billion $3.9 billion $4.1 billion 9 Note: Balances are as of September 30, 2025. References to loans HFI are loans held for investment. 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.
2025 Awards & Rankings Third Quarter 2025 Investor Presentation | 7 BANK EXECUTIVE & EMPLOYEE AWARDS 40 Under 40 Newsmaker 100 List 2024 | TOP 3 BEST-PERFORMING COMMUNITY BANKS IN THE NATION (Banks with $3B - $10B in Assets) (Ranked in Top 10% of Community Banks in the Nation) Power 100 List C-Suite Award Champions for DE&I Women Who Mean Business Fastest Growing Banks by Deposits 2024 | RAYMOND JAMES COMMUNITY BANKERS CUP FIVE STAR BANK RANKINGS SACRAMENTO BUSINESS JOURNAL SAN FRANCISCO BUSINESS TIMES S&P Global Market Intelligence RANKED 4TH ON THE LIST OF THE BEST U.S. BANKS (Banks with Assets Less Than $5B) Bank Director Magazine (RankingBanking) RANKED 13TH ON THE LIST OF TOP 25 U.S. BANKS Bank Director Magazine (RankingBanking) Distinguished Alumni Award SACRAMENTO STATE ALUMNI ASSOCIATION Exceptional Women of Color Honoree SAC CULTURAL HUB MEDIA FOUNDATION
Financial Highlights Third Quarter 2025 Investor Presentation | 8
Financial Highlights Third Quarter 2025 Investor Presentation | 9 (dollars in thousands, except per share data) For the three months ended 9/30/2025 6/30/2025 9/30/2024 Profitability Net income $ 16,344 $ 14,508 $ 10,941 Return on average assets (ROAA) 1.44 % 1.37 % 1.18 % Return on average equity (ROAE) 15.35 % 14.17 % 11.31 % Earnings per share (basic and diluted) $ 0.77 $ 0.68 $ 0.52 Net Interest Margin Net interest margin 3.56 % 3.53 % 3.37 % Average loan yield 6.14 % 6.09 % 5.98 % Average cost of interest-bearing deposits 3.28 % 3.31 % 3.60 % Average cost of total deposits 2.44 % 2.46 % 2.63 % Total cost of funds 2.51 % 2.53 % 2.72 % 9/30/2025 12/31/2024 Deposits and Securities Non-interest-bearing deposits $ 1,059,082 $ 922,629 Interest-bearing deposits 3,044,356 2,635,365 Total deposits 4,103,438 3,557,994 Total securities 97,825 100,914 Total securities to interest-earning assets 2.16 % 2.55 % Asset Quality Nonperforming loans to loans held for investment 0.05 % 0.05 % Allowance for credit losses to loans held for investment 1.08 % 1.07 % Note: Yields are based on average balance and annualized quarterly interest income. Costs are based on average balance and annualized quarterly interest expense.
Financial Highlights - September 30, 2025 Third Quarter 2025 Investor Presentation | 10 Growth • Continued balance sheet growth with increases in loans held for investment of $129.2 million and non-wholesale(1) deposits of $359.0 million since June 30, 2025. Funding • Non-interest-bearing deposits comprised 25.81% of total deposits, as compared to 25.78% of total deposits as of June 30, 2025. • Deposits comprised 97.46% of total liabilities, as compared to 97.45% of total liabilities as of June 30, 2025. Liquidity • Insured and collateralized deposits were approximately $2.7 billion, representing 65.25% of total deposits, as compared to 67.06% as of June 30, 2025. • Cash and cash equivalents were $580.4 million, representing 14.15% of total deposits, as compared to 12.42% as of June 30, 2025. Capital • All capital ratios were above well-capitalized regulatory thresholds. • On July 17, 2025 and October 16, 2025, the Company declared cash dividends of $0.20 per share for the three months ended June 30, 2025 and September 30, 2025, respectively. 1. The Company defines wholesale deposits as brokered deposits and California Time Deposit Program deposits.
$811 $840 $973 $1,272 $1,480 $1,954 $2,557 $3,227 $3,593 $4,053 $4,642 $1,806 $2,535 $148 $22 Total Assets Excluding PPP Loans PPP Loans 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Q3 2025 Consistent and Organic Asset Growth Third Quarter 2025 Investor Presentation | 11 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 September 30, 2025. 2. A reconciliation of this non-GAAP measure is set forth in the appendix. (2) CAGR (1) 5 years 10 years Total Assets 19.98 % 19.59 %
Earnings Track Record Third Quarter 2025 Investor Presentation | 12 Ea rn in gs (i n M ill io ns ) Q uarterly Earnings per Share $15.9M $17.2M $18.0M $20.7M $20.3M $22.6M $24.7M $15.0M $15.2M $15.2M $19.4M $18.4M $20.1M $22.2M $0.62 $0.51 $0.52 $0.63 $0.62 $0.68 $0.77 Pre-tax, pre-provision income Pre-tax income Quarterly EPS (basic and diluted) Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 $0.0M $5.0M $10.0M $15.0M $20.0M $25.0M $0.00 $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 1. A reconciliation of this non-GAAP measure is set forth in the appendix. (1)
Operating Metrics Third Quarter 2025 Investor Presentation | 13 Efficiency RatioNet Interest Margin 3.75% 3.42% 3.32% 3.52% 2022 2023 2024 2025 YTD 36.90% 40.35% 43.19% 41.18% 2022 2023 2024 2025 YTD Note: All 2025 figures are through September 30, 2025.
Non-interest Income and Expense Comparison Third Quarter 2025 Investor Presentation | 14 (dollars in thousands) For the three months ended 9/30/2025 6/30/2025 9/30/2024 Non-interest Income Service charges on deposit accounts $ 185 $ 196 $ 165 Gain on sale of loans — 119 306 Loan-related fees 683 468 406 Federal Home Loan Bank of San Francisco stock dividends 329 325 327 Earnings on bank-owned life insurance 209 220 162 Other income 560 482 15 Total non-interest income $ 1,966 $ 1,810 $ 1,381 Non-interest Expense Salaries and employee benefits $ 9,716 $ 8,910 $ 7,969 Occupancy and equipment 700 657 626 Data processing and software 1,559 1,508 1,327 Federal Deposit Insurance Corporation insurance 500 470 405 Professional services 932 918 830 Advertising and promotional 803 865 584 Loan-related expenses 317 423 292 Other operating expenses 2,053 1,975 1,743 Total non-interest expense $ 16,580 $ 15,726 $ 13,776
Shareholder Returns Third Quarter 2025 Investor Presentation | 15 ROAA ROAE Value per Share (book and tangible book(2)) Note: All 2025 figures are through September 30, 2025. 1. Cash dividend payout ratio on common stock is calculated as dividends on common shares divided by basic earnings per common share. 2. A reconciliation of this non-GAAP measure is set forth in the appendix. 1.57% 1.44% 1.23% 1.37% 2022 2023 2024 2025 YTD 18.80% 17.85% 12.72% 14.29% 2022 2023 2024 2025 YTD $14.66 $16.56 $18.60 $20.19 2022 2023 2024 2025 YTD Cash Dividend Payout Ratio on Common Stock(1) 40.23% 26.98% 35.45% 28.99% 2022 2023 2024 2025 YTD
Loans and Credit Quality Third Quarter 2025 Investor Presentation | 16
To ta l L oa ns (M ill io ns ) $1,355 $1,912 $2,791 $3,082 $3,104 $3,266 $3,461 $3,533 $3,622 $3,758 $3,887 $148 $22 4.96% 4.82% 4.75% 5.52% 5.71% 5.83% 5.98% 6.01% 6.02% 6.09% 6.14% Non-PPP Loans PPP Loans Average Loan Yield Average Loan Yield Excluding PPP Loans 2020 2021 2022 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 Consistent Loan Growth Third Quarter 2025 Investor Presentation | 17 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 September 30, 2025. 2. A reconciliation of this non-GAAP measure is set forth in the appendix. (2) CAGR (1) 5 years Total Loans 22.14 %
Commercial real estate, 80.86% Commercial construction, 3.52% Residential construction, 0.15% Residential, 0.92% Farmland, 1.48% Commercial land and development, 0.02% Secured, 4.91% Unsecured, 0.99% Consumer and other, 7.15% Loan Portfolio Composition Third Quarter 2025 Investor Presentation | 18 Types of collateral securing commercial real estate (CRE) loans Loan Balance ($000s) # of Loans % of CRE Manufactured home community $ 980,499 441 31.18 % RV Park 384,290 127 12.22 % Retail 303,509 98 9.65 % Industrial 243,585 149 7.75 % Multifamily 240,777 105 7.66 % Mini storage 190,342 52 6.05 % Faith-based 189,371 107 6.02 % Office 161,482 98 5.14 % All other types (1) 450,448 180 14.33 % Total $ 3,144,303 1,357 100.00 % Note: Balances are net book value as of September 30, 2025, 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.
$980M $384M $304M $244M $241M $190M $189M $161M $450M $1,732M $694M $623M $556M $521M $382M $507M $375M $949M 60.68% 58.91% 55.15% 51.59% 52.79% 56.39% 46.51% 52.25% 55.01% Loan Balance Collateral Value Weighted Average LTV Manufactured home community RV Park Retail Industrial Multifamily Mini storage Faith-based Office All other types $0M $250M $500M $750M $1,000M $1,250M $1,500M $1,750M $2,000M CRE Collateral Values Third Quarter 2025 Investor Presentation | 19 (1) Note: Balances are net book value as of September 30, 2025, before allowance for credit losses and deferred loan fees, and exclude loans held for sale. LTV refers to loan-to-value. 1. Types of collateral in “all other types” are those that individually make up less than 5% CRE concentration. Total CRE Weighted Average LTV 49.60%
CA, 57.3% TX, 7.5% NC, 3.2% FL, 2.8% AZ, 2.4% OR, 2.4% NV, 2.0%TN, 1.9%GA, 1.7%WA, 1.6% CO, 1.2% PA, 1.1% WI, 1.1% MO, 1.1% Other, 12.7% CML Term CRE NOO, 34.6% CML Term Multifamily, 31.4% CML Term CRE OO, 14.5% CSM Unsecured, 7.0% CML Const CRE, 3.5% CML Secured, 3.4%CML Term Ag RE, 1.5% Others, 4.1% CRE Manufactured Home, 25.1% CRE Other, 11.6% CRE RV Park, 9.9% CRE Retail, 7.8% Consumer Unsecured, 7.0% CRE Industrial, 6.3% CRE Multifamily, 6.2% Commercial Other, 5.6% CRE Mini Storage, 4.9% CRE Faith-based, 4.9%CRE Office, 4.2% Commercial Construction, 3.5% Others, 3.0% 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. Third Quarter 2025 Investor Presentation | 20Note: Balances are net book value as of September 30, 2025, before allowance for credit losses and deferred loan fees, and exclude loans held for sale. Loans by Product Loans by Purpose Real Estate Loans by Geography
Loan Rollforward Third Quarter 2025 Investor Presentation | 21Note: Dollars are in millions. Beginning and ending balances are end of period, before allowance for credit losses, including deferred loan fees, and exclude loans held for sale. $150 $390 $334 $263 $259 $319 $353 $(51) $(155) $(99) $(119) $(105) $(119) $(134) $(77) $(73) $(41) $(72) $(66) $(65) $(89) Originations & Advances Paydowns Payoffs Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Beginning Balance $ 3,082 $ 3,104 $ 3,266 $ 3,461 $ 3,533 $ 3,622 $ 3,758 Ending Balance $ 3,104 $ 3,266 $ 3,461 $ 3,533 $ 3,622 $ 3,758 $ 3,887
Loan Yield Composition Third Quarter 2025 Investor Presentation | 22Note: Dollars are in millions. Balances are net book value as of September 30, 2025, before allowance for credit losses and deferred loan fees. Weighted average rates are as of September 30, 2025 and based upon outstanding principal. Fixed, 26.4% Adjustable, 66.7% Floating, 6.9% Floating or Adjustable, 73.6% $268M $247M $363M $668M $386M $466M $466M 8.24% 6.98% 4.35% 5.07% 6.67% 6.89% 6.64% Floating Rate Loans Adjustable Rate Loans Weighted Average Rate Monthly (Floating) 2025 2026 2027 2028 2029 After 2029 $2.6 billion, or 66.7%, of total loans held for investment as of September 30, 2025 are adjustable rate loans. $363 million in adjustable rate loans, with a weighted average rate of 4.35%, are scheduled to reprice in 2026.
1.48% 1.20% 1.02% 1.12% 1.07% 1.08% 1.07% 1.08% 0.12% 0.04% 0.07% 0.11% 0.12% 0.02% 0.04% 0.02% Allowance for Credit Losses to Loans HFI Net Charge-offs to Average Loans HFI 2020 2021 2022 2023 2024 Q1 2025 Q2 2025 Q3 2025 Asset Quality Third Quarter 2025 Investor Presentation | 23 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. $0.5M $0.6M $0.4M $2.0M $1.8M $1.8M $2.3M $2.1M 0.03% 0.03% 0.01% 0.06% 0.05% 0.05% 0.06% 0.05% Nonperforming Loans Nonperforming Loans to Loans HFI 2020 2021 2022 2023 2024 Q1 2025 Q2 2025 Q3 2025 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
Allocation of Allowance for Credit Losses Third Quarter 2025 Investor Presentation | 24 (dollars in thousands) December 31, 2024 March 31, 2025 June 30, 2025 September 30, 2025 Allowance for Credit Losses Amount % of Total % of Loans to Total Loans Amount % of Total % of Loans to Total Loans Amount % of Total % of Loans to Total Loans Amount % of Total % of Loans to Total Loans Real estate: Commercial $ 25,864 68.44 % 80.75 % $ 27,027 68.91 % 81.11 % $ 27,792 69.19 % 81.54 % $ 23,473 55.81 % 80.86 % Commercial land & development 78 0.21 % 0.11 % 70 0.18 % 0.10 % 33 0.08 % 0.04 % 30 0.07 % 0.02 % Commercial construction 2,268 6.00 % 3.15 % 2,227 5.68 % 3.12 % 2,575 6.41 % 2.99 % 4,355 10.35 % 3.52 % Residential construction 64 0.17 % 0.13 % 78 0.20 % 0.16 % 75 0.19 % 0.15 % 108 0.26 % 0.15 % Residential 270 0.71 % 0.93 % 279 0.71 % 0.94 % 334 0.83 % 0.88 % 351 0.83 % 0.92 % Farmland 607 1.61 % 1.34 % 598 1.52 % 1.20 % 723 1.80 % 1.37 % 425 1.01 % 1.48 % Total real estate loans 29,151 77.14 % 86.41 % 30,279 77.20 % 86.63 % 31,532 78.50 % 86.97 % 28,742 68.33 % 86.95 % Commercial: Secured 5,866 15.52 % 4.91 % 5,905 15.05 % 4.77 % 5,623 14.00 % 4.63 % 10,400 24.73 % 4.91 % Unsecured 278 0.74 % 0.78 % 403 1.03 % 0.96 % 417 1.04 % 1.00 % 438 1.04 % 0.99 % Total commercial loans 6,144 16.26 % 5.69 % 6,308 16.08 % 5.73 % 6,040 15.04 % 5.63 % 10,838 25.77 % 5.90 % Consumer and other 2,496 6.60 % 7.90 % 2,637 6.72 % 7.64 % 2,595 6.46 % 7.40 % 2,481 5.90 % 7.15 % Total allowance for credit losses $ 37,791 100.00 % 100.00 % $ 39,224 100.00 % 100.00 % $ 40,167 100.00 % 100.00 % $ 42,061 100.00 % 100.00 %
Risk Grade Migration Third Quarter 2025 Investor Presentation | 25 Classified Loans (Loans Rated Substandard or Doubtful) (dollars in thousands) 2023 2024 Q1 2025 Q2 2025 Q3 2025 Real estate: Commercial $ 1,892 $ 2,587 $ 3,653 $ 4,170 $ 18,446 Commercial land and development — — — — — Commercial construction — — — — — Residential construction — — — — — Residential — — — — — Farmland — — — — — Commercial: Secured 72 48 43 37 104 Unsecured — — — — — Consumer and other 12 9 8 7 6 Total $ 1,976 $ 2,644 $ 3,704 $ 4,214 $ 18,556 % of Loan Portfolio Outstanding by Risk Grade: Pass 98.66 % 96.44 % 96.81 % 97.06 % 97.14 % Watch 1.28 % 3.49 % 3.09 % 2.83 % 2.38 % Substandard 0.06 % 0.07 % 0.10 % 0.11 % 0.48 % Note: Loan portfolio outstanding is total balance of loans outstanding at period end, before deferred loan fees and allowance for credit losses, and exclude loans held for sale.
Deposit and Capital Overview Third Quarter 2025 Investor Presentation | 26
$1.8B $2.3B $2.8B $3.0B $3.6B $3.7B $3.9B $4.1B $889M $1,001M $1,228M $1,409M $1,650M $1,706M $1,826M $2,110M $701M $902M $971M $831M $923M $934M $1,004M $1,059M $146M $279M $240M $320M $315M $296M $292M $309M $104M $343M $467M $670M $801M $772M $626M 7,124 8,162 9,832 11,855 13,500 14,041 14,562 14,970 Money Market & Savings Non-Interest-Bearing Demand Interest-Bearing Transaction Time Deposits Total Number of Accounts 2020 2021 2022 2023 2024 Q1 2025 Q2 2025 Q3 2025 Strong Deposit Growth Third Quarter 2025 Investor Presentation | 27 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 September 30, 2025. 2. As of quarter- or year-end, as applicable Cost of Total Deposits 0.44% 0.11% 0.43% 1.97% 2.56% 2.48% 2.46% 2.44% CAGR (1) 5 years Total Deposits 19.17 % (2)
Diversified Funding Third Quarter 2025 Investor Presentation | 28 Total Deposits(1) = $4.1 billion 97.5% of Total Liabilities Liability Mix(1) 1. Balances are as of September 30, 2025. 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 84.5% 85.1% 100.7% 102.2% 99.4% 97.0% 96.5% 94.7% 2020 2021 2022 2023 2024 Q1 2025 Q2 2025 Q3 2025 39.3% 39.5% 34.9% 27.5% 25.9% 25.0% 25.8% 25.8% 2020 2021 2022 2023 2024 Q1 2025 Q2 2025 Q3 2025 Money Market, 46.7% Non-Interest- Bearing Demand, 25.2% Time Deposits, 14.9% Interest-Bearing Transaction, 7.3% Savings, 3.3% Borrowings & Subordinated Notes, 1.8% Other Liabilities, 0.8%
Government, 21.72% Other, 16.43% Commercial Real Estate & Construction, 15.72% Small to Medium Sized Business, 9.97% Professional Service Practice, 8.92% Non-profit, 7.63% Manufactured Home Community, 6.46% Healthcare & Practice, 6.46%Agriculture & Ag Tech, 2.48% Faith-based, 2.01% Venture Banking, 1.77% Self-storage, 0.43% Deposit Composition 7.98 Years Average Age of Relationships > $5 million Note: Balances are as of September 30, 2025 and include time and wholesale deposits. 1. Types of accounts in “Other” are brokered deposits, which comprise 5.27% of total deposits, as well as individuals, trusts, estates, and market verticals that individually make up less than 0.40% of all deposits. 2. Government and Local Agency Depositors include State of California, which comprises 7.07% of total deposits. $276,000 Average Deposit Account Balance Relationships > $5 million, 60.14% Relationships ≤ $5 million, 39.86% Total Deposits by Relationship Size Local Agency BreakoutTotal Deposits by Market Vertical Local Agency Depositors, 21.65% All Other Depositors, 78.35% Third Quarter 2025 Investor Presentation | 29 (2) (1) (2)
Capital Ratios Third Quarter 2025 Investor Presentation | 30 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. 6.58% 9.47% 8.60% 8.73% 10.05% 9.78% 2020 2021 2022 2023 2024 Q3 2025 8.98% 11.44% 8.99% 9.07% 11.02% 10.77% 2020 2021 2022 2023 2024 Q3 2025 8.98% 11.44% 8.99% 9.07% 11.02% 10.77% 2020 2021 2022 2023 2024 Q3 2025 12.18% 13.98% 12.46% 12.30% 13.99% 13.59% 2020 2021 2022 2023 2024 Q3 2025
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. “ 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. “ 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 & CEOSienna Jackson, Homeless World Cup 2023 – Team USA Lisa Wrightsman, Managing Director, SSUSA and Homeless World Cup 2010 – Team USA Angela Draws, Homeless World Cup 2014 – Team USA “ 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
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. Management believes that average loan yield, excluding PPP loans, is a useful financial measure because it enables management, investors, and others to assess the Company's ability to manage yield on core loans. 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. Management believes that total assets, excluding PPP loans, is a useful financial measure because it enables management, investors, and others to assess the Company's ability to manage core 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. Management believes that pre-tax, pre-provision income is a useful financial measure because it enables management, investors, and others to assess the Company's ability to generate operating profit and capital. 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. Management believes that tangible book value per share is a useful financial measure because it enables management, investors, and others to assess the Company's value and use of equity. 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. Third Quarter 2025 Investor Presentation | 32
Appendix: Non-GAAP Reconciliation (Unaudited) Third Quarter 2025 Investor Presentation | 33 (dollars in millions) As of Total assets, excluding PPP loans 12/31/2020 12/31/2021 12/31/2022 12/31/2023 12/31/2024 9/30/2025 Total assets $ 1,954 $ 2,557 $ 3,227 $ 3,593 $ 4,053 $ 4,642 Less: PPP loans 148 22 — — — — Total assets, excluding PPP loans $ 1,806 $ 2,535 $ 3,227 $ 3,593 $ 4,053 $ 4,642 (dollars in thousands) Three months ended Pre-tax, pre-provision income 3/31/2024 6/30/2024 9/30/2024 12/31/2024 3/31/2025 6/30/2025 9/30/2025 Pre-tax income $ 14,961 $ 15,152 $ 15,241 $ 19,367 $ 18,391 $ 20,099 $ 22,234 Add: provision for credit losses 900 2,000 2,750 1,300 1,900 2,500 2,500 Pre-tax, pre-provision income $ 15,861 $ 17,152 $ 17,991 $ 20,667 $ 20,291 $ 22,599 $ 24,734 (dollars in thousands) Year ended Three months ended Average loan yield, 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 3/31/25 6/30/25 9/30/25 Interest and fee income on loans $ 71,405 $ 78,894 $ 111,795 $ 162,713 $ 43,786 $ 46,362 $ 50,390 $ 52,803 $ 52,931 $ 56,016 $ 59,257 Less: interest and fee income on PPP loans 6,535 7,417 635 — — — — — — — — Interest and fee income on loans, excluding PPP loans 64,870 71,477 111,160 162,713 43,786 46,362 50,390 52,803 52,931 56,016 59,257 Annualized interest and fee income on loans, excluding PPP loans (numerator) 64,870 71,477 111,160 162,713 176,106 186,467 200,465 210,064 214,665 224,680 235,096 Average loans held for investment and sale 1,439,380 1,637,280 2,353,148 2,947,603 3,082,290 3,197,921 3,354,050 3,498,109 3,567,992 3,691,616 3,831,851 Less: average PPP loans 165,414 116,652 2,297 — — — — — — — — Average loans held for investment and sale, excluding PPP loans (denominator) 1,273,966 1,520,628 2,350,851 2,947,603 3,082,290 3,197,921 3,354,050 3,498,109 3,567,992 3,691,616 3,831,851 Average loan yield, excluding PPP loans 5.09 % 4.70 % 4.73 % 5.52 % 5.71 % 5.83 % 5.98 % 6.01 % 6.02 % 6.09 % 6.14 %