Five Star Bancorp

FSBC Q2 2025 Earnings

Reported Jul 23, 2025 at 6:33 PM ET · SEC Source

Q2 25 EPS

$0.68

BEAT +7.09%

Est. $0.64

Q2 25 Revenue

$38.3M

BEAT +1.83%

Est. $37.6M

vs S&P Since Q2 25

+42.3%

BEATING MARKET

FSBC +58.0% vs S&P +15.6%

Market Reaction

Did FSBC Beat Earnings? Q2 2025 Results

Five Star Bancorp posted a clean beat across the board in the second quarter of 2025, with earnings per share of $0.68 coming in 7.09% above the consensus estimate of $0.64, while revenue of $38.33 million edged past analyst expectations of $37.64 mi… Read more Five Star Bancorp posted a clean beat across the board in the second quarter of 2025, with earnings per share of $0.68 coming in 7.09% above the consensus estimate of $0.64, while revenue of $38.33 million edged past analyst expectations of $37.64 million by 1.83%. Although revenue declined 23.8% year-over-year, the headline comparison belies an underlying growth story: net income climbed to $14.51 million from $10.78 million a year ago, powered by an eight basis point expansion in net interest margin to 3.53% and a $136.21 million increase in loans held for investment, which grew at a 15.04% annualized pace to reach $3.76 billion. Deposit discipline also contributed, with the cost of total deposits dipping two basis points to 2.46% even as total deposits rose to $3.89 billion. Looking ahead, management plans to open a Walnut Creek office in the third quarter, deepening its San Francisco Bay Area push, while also evaluating the potential impact of recently enacted federal tax law changes on future results.

Key Takeaways

  • Organic loan growth of $136.2 million (3.76%) driven by loan originations and advances of $319 million in Q2
  • Net interest margin expansion to 3.53%, up 8 basis points quarter-over-quarter and 14 basis points year-over-year
  • Average loan yield improvement to 6.09%, up 7 basis points sequentially and 26 basis points year-over-year
  • Non-wholesale deposit growth of $191.6 million (6.29%), with $87.4 million from new money market accounts and $68.7 million from new non-interest-bearing accounts
  • Efficiency ratio improved to 41.03% from 42.58% in Q1 2025
  • Average cost of total deposits declined 2 basis points to 2.46%
  • San Francisco Bay Area team grew deposits by $77.2 million to $456.9 million
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FSBC YoY Financials

Q2 2025 vs Q2 2024, source: SEC Filings

24/7 Wall St

FSBC Revenue by Segment

Business unit performance breakdown

“We are very pleased to report an exceptional quarter where the continuation of our organic growth strategy fueled new account openings and resulted in growth in loans and deposits. Total loans held for investment increased by $136.2 million, or 3.76% (15.04% when annualized), and total deposits increased by $158.3 million, or 4.24% (16.94% when annualized). Net interest margin increased by eight basis points to 3.53%, while our efficiency ratio decreased to 41.03% compared to 42.58% for the first quarter of 2025.”

— James E. Beckwith, Q2 2025 Earnings Press Release