Five Star Bancorp
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.27%.
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 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.
- 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
“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.”
Five Star Bancorp CEO, on the earnings call
Forward Guidance & Outlook
Five Star Bancorp expects to open a new office in Walnut Creek in the third quarter of 2025, continuing its San Francisco Bay Area expansion. The company plans to grow business verticals including Food, Agribusiness, and Diversified Industries, leveraging global trade services and treasury management tools. The company is evaluating the impact of the recently enacted 'One Big Beautiful Bill Act' tax law changes on future periods, including restoration of immediate R&D expensing, reinstatement of 100% bonus depreciation, and more favorable business interest expense deductibility rules.
FSBC YoY Financials
FSBC Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.