Five Star Bancorp reported significant financial growth in its latest quarterly filing, with net income reaching $16.3 million for the three months ended September 30, 2025, compared to $10.9 million for the same period in 2024. For the nine months ending September 30, 2025, net income totaled $44.0 million, up from $32.4 million in the prior year. The increase in profitability was driven by a 29.5% rise in net interest income, which amounted to $39.3 million for the third quarter, attributed to loan growth and improved yields on loans, despite a rise in interest expenses due to increased deposit levels.
Total assets for Five Star Bancorp increased by 14.5%, reaching $4.6 billion as of September 30, 2025, up from $4.1 billion at the end of 2024. This growth was primarily fueled by a $354.6 million increase in loans held for investment, which rose to $3.9 billion. The bank originated $931.8 million in loans during the period, although this was partially offset by $577.3 million in payoffs and paydowns. The allowance for credit losses also increased to $42.1 million, reflecting a proactive approach to managing credit risk amid loan growth.
In terms of operational metrics, total deposits rose by $545.4 million, or 15.3%, to $4.1 billion, with non-interest-bearing deposits accounting for 25.8% of total deposits. The bank's loan-to-deposit ratio improved to 94.7% from 99.4% at the end of 2024, indicating a more balanced funding structure. The efficiency ratio improved to 40.1% for the third quarter, down from 43.4% a year earlier, reflecting better cost management alongside revenue growth.
Strategically, Five Star Bancorp continues to focus on its core markets in Northern California, with a strong emphasis on commercial real estate lending, which constitutes approximately 84.4% of its loan portfolio. The bank operates nine branches and has plans for further geographic expansion. The company also declared a cash dividend of $0.20 per share, consistent with its commitment to returning value to shareholders.
Looking ahead, Five Star Bancorp remains optimistic about its growth trajectory, supported by a robust capital position and a well-capitalized status under regulatory standards. The bank's total risk-based capital ratio stood at 13.6% as of September 30, 2025, exceeding the minimum requirements. Management anticipates continued loan growth and improved asset quality, while also monitoring market conditions and potential economic challenges that could impact performance.
About FIVE STAR BANCORP
Five Star Bancorp is a bank holding company operating through its subsidiary, Five Star Bank, a California state-chartered bank. It provides a broad range of banking services, primarily in Northern California, including commercial real estate, land development, construction, farmland, SBA, and consumer loans. The company focuses on serving small and medium-sized businesses, professionals, and individuals with a customer-centric, purpose-driven approach.
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