Five Star Bancorp (FSBC) Q3 2025 Earnings Call Transcript
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 28 2025
0mins
Should l Buy FSBC?
Source: SeekingAlpha
Net Income $16.3 million, with no year-over-year change explicitly mentioned.
Earnings Per Share (EPS) $0.77, with no year-over-year change explicitly mentioned.
Return on Average Assets (ROAA) 1.44%, with no year-over-year change explicitly mentioned.
Return on Average Equity (ROAE) 15.35%, with no year-over-year change explicitly mentioned.
Net Interest Margin (NIM) 3.56%, expanded by 3 basis points from the previous quarter.
Cost of Total Deposits 2.44%, declined by 2 basis points from the previous quarter.
Efficiency Ratio 40.13%, with no year-over-year change explicitly mentioned.
Loans Held for Investment Increased by $129.2 million or 14% on an annualized basis, attributed to organic growth strategy.
Total Deposits Increased by $208.8 million or 21% on an annualized basis, with non-wholesale deposits increasing by $359 million (11%) and wholesale deposits decreasing by $150.2 million (23%).
Nonperforming Loans Represented 5 basis points of total loans held for investment, declined by $149,000 during the quarter due to conservative underwriting practices and robust monitoring.
Provision for Credit Losses $2.5 million, primarily due to loan growth.
Total Assets Increased by $228.3 million, largely driven by loan growth within the commercial real estate portfolio, which grew by $77.7 million.
Net Interest Income Increased by $2.8 million from the previous quarter, driven by a $4.3 million increase in interest income from new loan production at higher rates, partially offset by a $1.4 million increase in interest expense.
Noninterest Income Increased to $2 million from $1.8 million in the previous quarter, primarily due to an increase in swap referral fees, partially offset by no gain on sale of loans.
Noninterest Expense Grew by $900,000, primarily due to an increase in salaries and employee benefits related to increased headcount and Bay Area expansion.
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Analyst Views on FSBC
Wall Street analysts forecast FSBC stock price to rise
3 Analyst Rating
1 Buy
2 Hold
0 Sell
Moderate Buy
Current: 37.380
Low
37.00
Averages
38.00
High
40.00
Current: 37.380
Low
37.00
Averages
38.00
High
40.00
About FSBC
Five Star Bancorp is a bank holding company that operates through its wholly owned subsidiary, Five Star Bank, a California state-chartered non-member bank. The Company provides a broad range of banking products and services to small and medium-sized businesses, professionals, and individuals primarily in Northern California through approximately eight branch offices. It offers a complete array of deposit products for small and medium-sized businesses, professionals, and individuals, including a variety of checking and savings accounts, time deposits, and money market accounts. The Company also provides a range of deposit services, including debit cards, remote deposit capture, online banking, mobile banking, and direct deposit services. It focuses primarily on commercial lending. It offers a variety of loans to small and medium-sized businesses, professionals, and individuals, including commercial real estate, commercial, commercial land and construction, and farmland loans.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Strong Performance of Regional Banks: Among small-cap regional banks, Five Star Bancorp (FSBC) leads with a price-to-book (P/B) multiple of 1.95x and an A momentum grade, suggesting strong market performance and investment appeal, likely attracting investors seeking high-value opportunities.
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- Loan and Deposit Growth: In 2025, Five Star Bank achieved a 15% growth in total loans and an 18% increase in deposits, with non-wholesale deposits rising by $738.1 million, indicating successful customer acquisition in a competitive market.
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Five Star Bancorp (FSBC) Earnings Transcript
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Five Star Bancorp (FSBC) Earnings Call Transcript
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- Dividend Increase: This dividend marks a $0.05 increase from the previous payout, representing the first rise since April 2023, reflecting the company's successful organic growth strategy and commitment to clients and community partners.
- Shareholder Returns: The dividend will be paid to shareholders of record as of February 2, 2026, further solidifying the relationship between the company and its shareholders while enhancing market expectations for future performance.
- Company Background: Headquartered in Rancho Cordova, California, Five Star Bank operates nine branches and is dedicated to providing quality financial services, showcasing its competitive position in the local market.
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- Live Webcast Meeting: Management will host a live webcast on January 27, 2026, at 1:00 PM ET to review the financial results with analysts and investors, enhancing engagement and communication with stakeholders.
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- Market Disconnection: Despite all major financial ETFs posting double-digit gains in 2025, the State Street Financial Select Sector SPDR ETF (XLF) underperformed in January, ranking as one of only two sectors with negative returns, indicating a lack of market confidence in the financial sector.
- Strong Performance of Regional Banks: Among small-cap regional banks, Five Star Bancorp (FSBC) leads with a price-to-book (P/B) multiple of 1.95x and an A momentum grade, suggesting strong market performance and investment appeal, likely attracting investors seeking high-value opportunities.
- Momentum Ratings and Valuations: Northeast Bank (NBN) and Red River Bancshares (RRBI) follow closely with P/B multiples of 1.86x and 1.67x, respectively, both holding A momentum ratings, indicating their competitive edge in the current market environment and potential for stable returns for investors.
- Investor Focus on Regional Banks: Other notable banks like Amalgamated Financial (AMAL) and Southern First Bancshares (SFST) also feature A+ momentum grades and competitive P/B multiples, keeping them in the spotlight for investors, demonstrating the attractiveness of regional banks amidst market volatility.
See More
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- Dividend Increase: The company raised its quarterly cash dividend to $0.25 per share, an increase of $0.05, marking the first dividend hike since April 2023, which reflects management's confidence in future profitability.
- Loan and Deposit Growth: In 2025, Five Star Bank achieved a 15% growth in total loans and an 18% increase in deposits, with non-wholesale deposits rising by $738.1 million, indicating successful customer acquisition in a competitive market.
- Optimistic Future Outlook: Management anticipates a 10% growth in the balance sheet for 2026, emphasizing that sustained organic growth will be a strategic focus supported by the current team, while also monitoring capital needs and market competition.
See More
Five Star Bancorp (FSBC) Earnings Transcript
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Five Star Bancorp (FSBC) Earnings Call Transcript
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Five Star Bancorp Declares $0.25 Cash Dividend Per Share
- Dividend Announcement: Five Star Bancorp has declared a cash dividend of $0.25 per share, expected to be paid on February 9, 2026, indicating the company's continued strong financial performance and boosting investor confidence.
- Dividend Increase: This dividend marks a $0.05 increase from the previous payout, representing the first rise since April 2023, reflecting the company's successful organic growth strategy and commitment to clients and community partners.
- Shareholder Returns: The dividend will be paid to shareholders of record as of February 2, 2026, further solidifying the relationship between the company and its shareholders while enhancing market expectations for future performance.
- Company Background: Headquartered in Rancho Cordova, California, Five Star Bank operates nine branches and is dedicated to providing quality financial services, showcasing its competitive position in the local market.
See More
Five Star Bancorp to Report Q4 and FY 2025 Results on January 26, 2026
- Earnings Release Schedule: Five Star Bancorp is set to report its quarterly and annual financial results for the year ended December 31, 2025, after market close on January 26, 2026, reflecting the company's commitment to transparency and timely information disclosure.
- Live Webcast Meeting: Management will host a live webcast on January 27, 2026, at 1:00 PM ET to review the financial results with analysts and investors, enhancing engagement and communication with stakeholders.
- Information Access Channels: The webcast will be accessible via the 'News & Events' section of the company’s website, ensuring that investors can easily obtain the latest information, thereby improving accessibility and transparency.
- Company Background Overview: Five Star Bancorp is a bank holding company headquartered in Rancho Cordova, California, operating through its wholly owned subsidiary, Five Star Bank, which has nine branches in Northern California, demonstrating a solid foundation in the local market.
See More
