Five Star Bancorp Reports Strong Q4 2025 Earnings Growth

Written by Emily J. Thompson, Senior Investment Analyst

FSBC+2.76%

Source: seekingalpha

Updated: 2d ago

0mins

Source: seekingalpha

Significant Earnings Growth: Five Star Bancorp reported a net income of $17.6 million for Q4 2025, reflecting a 35% year-over-year increase, with earnings per share rising to $0.83, showcasing the company's strong performance in loans and deposits, thereby solidifying its market position.
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.

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FSBC

$39.49+Infinity%1D

Analyst Views on FSBC

Wall Street analysts forecast FSBC stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for FSBC is 38.00 USD with a low forecast of 37.00 USD and a high forecast of 40.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

3 Analyst Rating

1 Buy

2 Hold

0 Sell

Moderate Buy

Current: 38.430

Low

37.00

Averages

38.00

High

40.00

Current: 38.430

Low

37.00

Averages

38.00

High

40.00

DA Davidson

Buy

maintain

$43 -> $45

2026-01-28

New

Reason

DA Davidson

Price Target

$43 -> $45

AI Analysis

2026-01-28

New

maintain

Buy

Reason

DA Davidson raised the firm's price target on Five Star Bancorp to $45 from $43 and keeps a Buy rating on the shares. The company's Q4 results once again exceeded expectations, with stronger than expected net interest income growth and net interest margin expansion, the analyst tells investors in a research note.

Stephens

Overweight -> Equal Weight

downgrade

$37

2025-11-10

Reason

Stephens

Price Target

$37

2025-11-10

downgrade

Overweight -> Equal Weight

Reason

Stephens downgraded Five Star Bancorp to Equal Weight from Overweight with a $37 price target. Following what the firm calls a "strong"Q3, it thinks the business model remains intact with go-forward growth prospects "arguably continuing to get better." However, its downgrade is reflective "more of what we view as a pretty fair current relative valuation," telling investors it would prefer to become more constructive on shares again at a better entry point.

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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.