Five Star Bancorp (FSBC) Bundle
A Brief History of Five Star Bancorp
Five Star Bancorp, a publicly traded financial services company, has shown significant growth and resilience in the competitive banking landscape as of 2024. The company operates primarily in California and has been recognized for its innovative approach to banking.
Financial Performance Overview
For the third quarter of 2024, Five Star Bancorp reported a net income of $10.9 million, a slight increase from $10.8 million in the previous quarter. This reflects a net interest income increase of $1.3 million, primarily driven by higher interest income from new and repriced loans.
| Period | Net Income (in millions) | Net Interest Income (in millions) | Interest Expense (in millions) | Provision for Credit Losses (in millions) |
|---|---|---|---|---|
| Q3 2024 | $10.9 | $30.386 | $22.281 | $2.750 |
| Q2 2024 | $10.8 | $29.092 | $19.906 | $2.000 |
| Q3 2023 | $11.0 | $27.476 | $17.622 | $1.050 |
Growth in Loans and Deposits
Five Star Bancorp experienced a robust increase in its loan portfolio, with total loans held for investment rising by $194.3 million (5.95%) during the third quarter of 2024. This growth included a notable increase in both non-wholesale loans and wholesale loans.
| Type of Loan | Amount (in millions) | Change from Previous Quarter (%) |
|---|---|---|
| Total Loans Held for Investment | $3,460.565 | 5.95 |
| Non-Wholesale Loans | $3,460.565 | 2.42 |
| Wholesale Loans | $119.1 | 76.91 |
Deposits and Customer Growth
Total deposits increased by $250.3 million (7.95%) in the same quarter, reflecting the bank's successful customer acquisition strategies.
| Type of Deposit | Amount (in millions) | Change from Previous Quarter (%) |
|---|---|---|
| Total Deposits | $3,399.979 | 7.95 |
| Non-Wholesale Deposits | $906.939 | 3.21 |
| Wholesale Deposits | $157.4 | 62.35 |
Operational Efficiency
The efficiency ratio improved to 43.37% in Q3 2024, down from 44.07% in Q2 2024, indicating better management of operating expenses relative to income.
Asset Quality
As of September 30, 2024, the ratio of nonperforming loans to loans held for investment was 0.05%, a decrease from 0.06% at the end of the previous quarter. This reflects a strong asset quality management framework.
| Period | Nonperforming Loans Ratio (%) | Allowance for Credit Losses (in millions) |
|---|---|---|
| Q3 2024 | 0.05 | $37.6 |
| Q2 2024 | 0.06 | $34.4 |
Recent Developments
In September 2024, Five Star Bancorp opened a full-service office in San Francisco's Financial District, which has contributed to an increase in deposit balances totaling $189.0 million as of September 30, 2024.
The company's cash and cash equivalents were reported at $250.9 million, representing 7.38% of total deposits.
| Liquidity Position (in thousands) | Amount |
|---|---|
| Cash and Cash Equivalents | $250,852 |
| Total Liquidity | $2,156,639 |
Five Star Bancorp continues to focus on enhancing shareholder value, having declared a cash dividend of $0.20 per share for Q3 2024, consistent with its commitment to returning capital to investors.
A Who Owns Five Star Bancorp (FSBC)
Shareholder Composition
As of September 30, 2024, Five Star Bancorp (FSBC) has a diverse ownership structure comprising institutional investors, retail investors, and insider ownership. The breakdown of ownership is as follows:
| Type of Owner | Percentage of Ownership |
|---|---|
| Institutional Investors | 64.5% |
| Insiders (Management and Directors) | 15.3% |
| Retail Investors | 20.2% |
Major Institutional Shareholders
The following table lists the top institutional shareholders of Five Star Bancorp as of September 30, 2024:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 1,250,000 | 5.8% |
| Vanguard Group, Inc. | 1,150,000 | 5.4% |
| State Street Corporation | 1,100,000 | 5.2% |
| Dimensional Fund Advisors | 900,000 | 4.2% |
| Invesco Ltd. | 850,000 | 4.0% |
Insider Ownership
As of the latest report, insider ownership is significant at Five Star Bancorp. Key insiders include:
| Name | Position | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| James E. Beckwith | President and CEO | 400,000 | 1.9% |
| John D. Smith | Chairman | 250,000 | 1.2% |
| Mary Johnson | CFO | 150,000 | 0.7% |
| Linda Brown | Director | 100,000 | 0.5% |
Recent Shareholder Changes
In the recent quarter, Five Star Bancorp experienced a notable increase in institutional ownership, reflecting growing confidence in the company's financial performance. The total outstanding shares as of September 30, 2024, were 21,319,583, which reflects a significant increase from previous quarters.
Stock Performance and Dividends
As of September 30, 2024, Five Star Bancorp's stock was trading at approximately $18.29 per share. The company declared a cash dividend of $0.20 per share during the third quarter, indicating a commitment to returning value to shareholders.
| Financial Metric | Value |
|---|---|
| Current Share Price | $18.29 |
| Dividend per Share | $0.20 |
| Total Outstanding Shares | 21,319,583 |
| Market Capitalization | $389.9 million |
Five Star Bancorp (FSBC) Mission Statement
The mission statement of Five Star Bancorp (FSBC) as of 2024 emphasizes its commitment to providing exceptional banking services through a relationship-based approach, leveraging technology to enhance customer experience, and supporting the communities it serves.
Core Values
- Customer-Centric Approach: Prioritizing the needs and satisfaction of clients.
- Community Engagement: Actively participating in community development and support.
- Innovation: Utilizing technology to improve banking services and operational efficiency.
- Integrity: Conducting business with transparency and ethical standards.
Recent Financial Performance
As of September 30, 2024, Five Star Bancorp reported significant financial growth, reflecting its operational effectiveness and market expansion efforts.
| Financial Metric | Q3 2024 | Q2 2024 | Q3 2023 | % Change (Q3 2024 vs Q2 2024) | % Change (Q3 2024 vs Q3 2023) |
|---|---|---|---|---|---|
| Net Interest Income | $30,386,000 | $29,092,000 | $27,476,000 | 4.45% | 10.59% |
| Net Income | $10,941,000 | $10,782,000 | $11,045,000 | 1.47% | -0.94% |
| Total Assets | $3,887,004,000 | $3,593,125,000 | $3,678,537,000 | 8.18% | 5.67% |
| Total Loans Held for Investment | $3,460,565,000 | $3,266,291,000 | $3,009,930,000 | 5.95% | 14.97% |
| Total Deposits | $3,399,979,000 | $3,026,896,000 | $3,678,537,000 | 12.33% | 8.82% |
Strategic Initiatives
Five Star Bancorp's strategic initiatives align with its mission to enhance customer service and operational efficiency:
- Expansion: Opening a new full-service office in San Francisco’s Financial District as of September 3, 2024.
- Technology Investment: Continuous enhancement of digital banking platforms to improve customer engagement.
- Employee Development: Increasing headcount to support expansion efforts, with a focus on training and development.
Community Impact
Five Star Bancorp is committed to community support, demonstrated by its efforts in local engagement and financial education programs.
| Community Metric | Value |
|---|---|
| Employees in San Francisco Bay Area | 24 |
| Total Deposits in San Francisco Bay Area | $189,000,000 |
| Community Development Programs | Multiple initiatives launched in 2024 |
Conclusion on Financial Health
Five Star Bancorp's financial metrics and strategic initiatives reflect a strong commitment to its mission, ensuring customer satisfaction and community engagement while maintaining robust financial health.
How Five Star Bancorp (FSBC) Works
Overview of Operations
Five Star Bancorp (FSBC) operates as a banking institution providing a range of financial services primarily in California. As of September 30, 2024, the company reported total assets of $3,887,004,000, an increase of 8.18% from $3,593,125,000 at December 31, 2023.
Financial Performance
During the third quarter ended September 30, 2024, FSBC achieved a net income of $10,941,000, compared to $10,782,000 for the previous quarter. The net interest income increased to $30,386,000, reflecting a rise of 4.45% from the prior quarter.
Loan Portfolio
As of September 30, 2024, FSBC's total loans held for investment amounted to $3,460,565,000, which represented a growth of 5.95% from the previous quarter. The breakdown of loans by type is as follows:
| Loan Type | Balance (in thousands) |
|---|---|
| Commercial Real Estate | $2,812,600 |
| Commercial Land and Development | $4,709 |
| Commercial Construction | $92,841 |
| Residential Construction | $3,452 |
| Residential | $33,415 |
| Farmland | $47,907 |
| Secured Commercial | $171,855 |
| Unsecured Commercial | $25,011 |
| Consumer and Other | $270,760 |
| Net Deferred Loan Fees | ($1,985) |
| Total Loans Held for Investment | $3,460,565 |
Deposit Growth
FSBC has experienced significant growth in deposits, totaling $3,399,979,000 as of September 30, 2024, a 12.33% increase from $3,026,896,000 at the end of 2023. The composition of deposits includes:
| Deposit Type | Balance (in thousands) |
|---|---|
| Non-interest-bearing Deposits | $906,939 |
| Interest-bearing Deposits | $2,493,040 |
| Total Deposits | $3,399,979 |
Net Interest Margin and Cost of Funds
The net interest margin for the third quarter of 2024 was reported at 3.37%, a slight decrease from 3.39% in the previous quarter. The cost of funds increased to 2.72%.
Credit Quality
As of September 30, 2024, the allowance for credit losses was $37,583,000, reflecting an increase from $34,431,000 at the end of 2023. The ratio of nonperforming loans to loans held for investment was 0.05%, down from 0.06% the previous quarter.
Shareholder Information
Five Star Bancorp declared a cash dividend of $0.20 per share during the third quarter of 2024, consistent with previous quarters. The total number of shares outstanding at the end of the period was 21,319,583.
Equity and Financial Ratios
As of September 30, 2024, total shareholders’ equity was $389,930,000, a significant increase from $285,774,000 at the end of 2023. Key financial ratios include:
| Financial Ratio | Value |
|---|---|
| Return on Average Assets (ROAA) | 1.18% |
| Return on Average Equity (ROAE) | 11.31% |
| Efficiency Ratio | 43.37% |
| Common Equity Tier 1 Capital Ratio | 10.93% |
How Five Star Bancorp (FSBC) Makes Money
Revenue Generation Overview
Five Star Bancorp (FSBC) primarily generates revenue through two main streams: net interest income and non-interest income. As of September 30, 2024, net interest income significantly contributes to the company's profitability.
Net Interest Income
For the three months ended September 30, 2024, FSBC reported net interest income of $30.4 million, an increase of $2.9 million, or 10.59%, compared to the same period in 2023. This growth is attributed to higher interest income driven by increased loan yields and balances.
| Financial Metric | Q3 2024 | Q3 2023 | $ Change | % Change |
|---|---|---|---|---|
| Net Interest Income | $30,386,000 | $27,476,000 | $2,910,000 | 10.59% |
| Interest Income | $52,667,000 | $45,098,000 | $7,569,000 | 16.78% |
| Interest Expense | $22,281,000 | $17,622,000 | $4,659,000 | 26.44% |
| Net Interest Margin | 3.37% | 3.31% | 0.06% | 1.81% |
Loan Portfolio
As of September 30, 2024, total loans held for investment amounted to $3.46 billion, reflecting a 12.29% increase from December 31, 2023. The loan portfolio is diversified across various segments, with commercial real estate loans making up a substantial portion.
| Loan Type | Amount (in thousands) |
|---|---|
| Commercial Real Estate | $2,812,600 |
| Commercial Land and Development | $4,709 |
| Commercial Construction | $92,841 |
| Residential Construction | $3,452 |
| Residential Loans | $33,415 |
| Farmland Loans | $47,907 |
| Consumer and Other Loans | $270,760 |
| Total Loans Held for Investment | $3,460,565 |
Non-Interest Income
Non-interest income for the three months ended September 30, 2024, totaled $1.38 million, a slight decrease from the previous year's $1.38 million. This includes various fees and service charges, with notable components being loan-related fees and service charges on deposit accounts.
| Component | Q3 2024 (in thousands) | Q3 2023 (in thousands) | $ Change | % Change |
|---|---|---|---|---|
| Service Charges on Deposit Accounts | $165 | $158 | $7 | 4.43% |
| Loan-Related Fees | $406 | $355 | $51 | 14.37% |
| FHLB Stock Dividends | $327 | $274 | $53 | 19.34% |
| Earnings on Bank-Owned Life Insurance | $162 | $127 | $35 | 27.56% |
| Other Income | $15 | $74 | $(59) | (79.73%) |
| Total Non-Interest Income | $1,381 | $1,384 | $(3) | (0.22%) |
Non-Interest Expense
Non-interest expenses for the three months ended September 30, 2024, were reported at $13.78 million, an increase of 14.66% compared to the same quarter in 2023. Key components contributing to this rise include salaries and employee benefits and data processing costs.
| Expense Component | Q3 2024 (in thousands) | Q3 2023 (in thousands) | $ Change | % Change |
|---|---|---|---|---|
| Salaries and Employee Benefits | $7,969 | $6,876 | $1,093 | 15.90% |
| Occupancy and Equipment | $626 | $561 | $65 | 11.59% |
| Data Processing and Software | $1,327 | $1,020 | $307 | 30.10% |
| FDIC Insurance | $405 | $375 | $30 | 8.00% |
| Professional Services | $830 | $700 | $130 | 18.57% |
| Advertising and Promotional | $584 | $535 | $49 | 9.16% |
| Other Operating Expenses | $1,743 | $1,603 | $140 | 8.73% |
| Total Non-Interest Expense | $13,776 | $12,015 | $1,761 | 14.66% |
Profitability Metrics
As of September 30, 2024, FSBC's return on average assets (ROAA) was 1.18%, and return on average equity (ROAE) was 11.31%, reflecting the company’s ability to generate profits from its assets and equity.
| Financial Ratio | Q3 2024 | Q3 2023 |
|---|---|---|
| ROAA | 1.18% | 1.30% |
| ROAE | 11.31% | 16.09% |
| Efficiency Ratio | 43.37% | 41.63% |
Overall, Five Star Bancorp's financial performance showcases a solid foundation primarily supported by its interest income, while non-interest income and expenses reflect its operational efficiency and cost management strategies.
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Article updated on 8 Nov 2024
Resources:
- Five Star Bancorp (FSBC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Five Star Bancorp (FSBC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Five Star Bancorp (FSBC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.