Five Star Bancorp announced net income of $10.9 million for the third quarter of 2024, a slight increase from $10.8 million in the second quarter of 2024, but a decrease from $11.0 million in the third quarter of 2023. The company reported a significant increase in total loans held for investment by $194.3 million, or 5.95%, during the quarter. Total deposits also grew by $250.3 million, or 7.95%, with non-wholesale deposits increasing by $92.9 million and wholesale deposits by $157.4 million.
The net interest margin (NIM) for the third quarter decreased by two basis points to 3.37% compared to the previous quarter. Despite this, the company's efficiency ratio improved to 43.37% from 44.07% in the second quarter of 2024, indicating disciplined expense management. Asset quality remained strong, with non-accrual loans representing a low 0.05% of total loans held for investment at September 30, 2024.
The company highlighted the successful opening of its full-service office in San Francisco's Financial District on September 3, 2024. This expansion has already contributed to the San Francisco Bay Area operations having 24 employees and generating $189.0 million in deposits since June 2023, demonstrating early success in its strategic market penetration.
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