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Highlights

  • Five Star Bancorp reported USD 14.5 million in net income for Q2 2025, up from USD 10.8 million in Q2 2024.
  • Total deposits reached USD 3.9 billion, increasing USD 158.3 million or 4.24% quarter over quarter.
  • Net interest income rose 25.5% year over year to USD 36.5 million, driven by a 15.44% increase in average loan balances.

Five Star Bancorp (Nasdaq: FSBC) reported second quarter 2025 net income of USD 14.5 million, a 34.3% increase from USD 10.8 million in the same quarter last year, and up 10.7% from USD 13.1 million in Q1 2025. The rise was supported by continued growth in loans, deposits, and improved net interest margin.

Net interest income for the quarter reached USD 36.5 million, marking a USD 7.4 million or 25.5% increase from Q2 2024. The bank's net interest margin improved to 3.53%, up from 3.45% in Q1 2025 and 3.39% a year earlier. The increase was primarily driven by a USD 493.7 million, or 15.44%, growth in average loan balances and a 26 basis point rise in average loan yields compared to the prior year.

Total deposits stood at USD 3.9 billion as of June 30, 2025, up USD 158.3 million or 4.24% quarter over quarter. Non-wholesale deposits, which exclude brokered and state program deposits, rose USD 191.6 million while wholesale deposits declined by USD 33.4 million. Cash and cash equivalents amounted to USD 483.8 million, representing 12.42% of total deposits.

The company maintained a common equity Tier 1 capital ratio of 10.85% and continued to report no short-term borrowings. Five Star’s efficiency ratio improved to 41.03%, down from 42.58% in Q1 2025 and 44.07% in Q2 2024, indicating tighter expense control.

Credit quality remained stable with the nonperforming loan ratio slightly rising from 0.05% to 0.06% due to one commercial real estate loan placed on nonaccrual. The provision for credit losses increased USD 0.5 million year over year.

Five Star’s board declared a USD 0.20 per share dividend during the quarter, consistent with the prior quarter’s payout, and announced another USD 0.20 dividend to be paid in August 2025.

Deposit concentration remained high, with accounts over USD 5 million constituting nearly 60% of total deposits and insured or collateralized deposits representing 67.06% of total balances. Total liquidity reached approximately USD 2.2 billion at quarter-end.