Five Star Bancorp reported third‑quarter 2025 results showing net income of $16.3 million, up from $14.5 million in the prior quarter and $10.9 million a year earlier.
Net interest income increased by $2.8 million to $39.35 million, a 7.76% rise, driven by a $129.2 million increase in loans held for investment and a modest lift in average loan yields.
The bank’s efficiency ratio improved to 40.13% from 41.03% in Q2, reflecting disciplined expense management amid higher loan and deposit growth.
Total deposits grew by $208.8 million, or 5.36%, to $4.10 billion, while wholesale deposits fell by $150.2 million, indicating a shift toward non‑wholesale funding. Total assets increased by $228.3 million to $4.64 billion, largely due to the $129.2 million rise in loans held for investment.
The release highlighted the opening of a ninth full‑service office in Walnut Creek, California, and noted continued expansion of its Food, Agribusiness, and Diversified Industries business, supported by global trade services and treasury management tools.
The bank declared a new cash dividend of $0.20 per share, payable on November 10, 2025, with a record date of November 3, 2025, underscoring its commitment to shareholder value.
Other key metrics include basic and diluted EPS of $0.77, ROAA of 1.44%, ROAE of 15.35%, a Common Equity Tier 1 capital ratio of 10.77%, and a non‑performing loan ratio of 0.05%. Unrealized losses on available‑for‑sale securities were $9.9 million, and the provision for credit losses decreased by $0.3 million.
Additional context: non‑wholesale deposits increased by $359.0 million, or 11.09%; the cost of funds fell two basis points to 2.51%; the effective federal funds rate dropped to 4.09%; and the bank’s market capitalization was approximately $761.3 million. Analyst consensus remains a “buy” with a median 12‑month price target of $35.00.
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