FSBC · Five Star Bancorp

Five Star Bancorp delivered strong Q1 2026 results with net income of $18.6 million, up 5.5% from Q4 2025 and 42% from Q1 2025, driven by robust balance sheet growth and margin expansion. Net interest income rose $1.4 million quarter-over-quarter to $43.5 million, fueled by $138.5 million or 3.4% growth in loans held for investment to $4.21 billion, alongside a 4 basis point improvement in net interest margin to 3.70%. This NIM expansion occurred despite stable federal funds rates at 3.64%, reflecting effective deposit pricing with total cost of funds declining 10 basis points to 2.20%. Deposits surged $268.3 million or 6.39% to $4.47 billion, with non-wholesale deposits up $350.2 million or 9.37%, offsetting wholesale reductions and bolstering funding stability—non-interest-bearing deposits now 27.58% of total. CEO James E. Beckwith highlighted execution on strategic expansion into new geographies and industry verticals, supported by adding one Business Development Officer to 43. Credit quality strengthened with nonperforming loans at 0.07% of loans, down from 0.08%, and provision for credit losses dipped slightly to $2.7 million. Efficiency improved to 38.57% from 40.62%, aided by disciplined expense management despite headcount growth. Capital remains solid with CET1 at 10.45%, and the board raised the quarterly dividend to $0.25 per share, signaling confidence. An earnings call on April 28 at 10:00 AM PT discussed these results via Exhibit 99.2 investor presentation.