Five Star Bancorp

FSBC Q1 2026 Earnings

Reported Apr 28, 2026 at 12:00 PM ET · SEC Source

Q1 26 EPS

$0.87

BEAT +10.41%

Est. $0.79

Q1 26 Revenue

$45.1M

BEAT +1.42%

Est. $44.5M

vs S&P Since Q1 26

+13.7%

BEATING MARKET

FSBC +16.8% vs S&P +3.1%

Market Reaction

Did FSBC Beat Earnings? Q1 2026 Results

Five Star Bancorp kicked off 2026 on firm footing, posting first-quarter earnings per share of $0.87 against a consensus estimate of $0.79, a beat of 10.41%, while revenue of $45.10 million edged past the $44.47 million estimate by 1.42%, even as the… Read more Five Star Bancorp kicked off 2026 on firm footing, posting first-quarter earnings per share of $0.87 against a consensus estimate of $0.79, a beat of 10.41%, while revenue of $45.10 million edged past the $44.47 million estimate by 1.42%, even as the top line reflected a 22.4% decline year-over-year. The primary engine behind the quarter's strength was a sharp expansion in net interest income, which climbed 27.9% from a year ago to $43.46 million, driven by a 16.3% increase in average loan balances and a 35-basis-point decline in the average cost of deposits to 2.13%, pushing net interest margin to 3.70%. Total deposits surged $268.30 million during the quarter, with non-wholesale deposits rising $350.20 million, underscoring the bank's deposit franchise momentum. The board lifted the quarterly dividend to $0.25 per share, signaling confidence in earnings durability, and management pointed to continued geographic expansion and new industry verticals as the framework for sustaining growth through the remainder of the year.

Key Takeaways

  • Loan growth of $138.5 million (14% annualized) in Q1 2026
  • Non-wholesale deposit growth of $350.2 million (9.37%) during Q1 2026
  • Net interest margin expansion to 3.70% from 3.66% in Q4 2025 and 3.45% in Q1 2025
  • Total cost of funds decreased 10 basis points to 2.20%
  • Average cost of deposits declined 35 basis points year-over-year to 2.13%
  • Efficiency ratio improved to 38.57% from 40.62% in Q4 2025
  • Release of $1.0 million SBA loan loss contingency reduced non-interest expense
  • Non-interest-bearing deposits increased $148.2 million during the quarter
  • Headcount increased 17.48% year-over-year supporting business development

FSBC Forward Guidance & Outlook

Management expects ongoing acceleration of growth as the company executes on expansion of industry verticals and its presence in new geographies to meet customer demand. The company strategically reduced originations of loans held for sale, with no loans sold in Q1 2026. The company has 43 Business Development Officers supporting growth initiatives. With $648 million in adjustable rate loans scheduled to reprice in 2026 at a weighted average rate of 5.42%, there is potential margin sensitivity to interest rate changes.

24/7 Wall St

FSBC YoY Financials

Q1 2026 vs Q1 2025, source: SEC Filings

24/7 Wall St

FSBC Revenue by Segment

Business unit performance breakdown

“The strength of Five Star Bank's first quarter 2026 financial results is emblematic of seized market opportunities fueled by the continued demand for our differentiated customer experience. In the first quarter of 2026, we successfully executed on our strategic plan and declared a cash dividend of $0.25 per share to shareholders (an increase of $0.05 per share from dividends declared in each quarter of 2025). Earnings per share increased to $0.87 per share, up $0.04 from the fourth quarter of 2025 and $0.25 from the first quarter of 2025. Net income increased to $18.6 million, up from $17.6 million for the fourth quarter of 2025, while total cost of funds decreased 10 basis points to 2.20% during the first quarter of 2026, and net interest margin increased by four basis points to 3.70%. We are pleased that over the first quarter, total loans held for investment increased by $138.5 million, or 3% (14% when annualized) while total deposits increased by $268.3 million, or 6% (26% when annualized). As we execute on the expansion of industry verticals and our presence in new geographies to meet customer demand, we expect the ongoing acceleration of our growth to benefit our customers, employees, and shareholders.”

— James E. Beckwith, Q1 2026 Earnings Press Release