Five Star Bancorp (Nasdaq: FSBC) (“Five Star” or the
“Company”), a holding company that operates through its wholly
owned banking subsidiary, Five Star Bank (the “Bank”), today
reported net income of $10.9 million for the three months ended
September 30, 2024, as compared to $10.8 million for the three
months ended June 30, 2024 and $11.0 million for the three
months ended September 30, 2023.
Third Quarter Highlights
Performance and operating highlights for the
Company for the periods noted below included the following:
|
|
Three months ended |
|
(in thousands, except per share and share data) |
September 30, 2024 |
|
June 30, 2024 |
|
September 30, 2023 |
|
Return on average assets (“ROAA”) |
|
1.18 |
% |
|
|
1.23 |
% |
|
|
1.30 |
% |
|
Return on average equity (“ROAE”) |
|
11.31 |
% |
|
|
11.72 |
% |
|
|
16.09 |
% |
|
Pre-tax income |
$ |
15,241 |
|
|
$ |
15,152 |
|
|
$ |
15,795 |
|
|
Pre-tax, pre-provision income(1) |
|
17,991 |
|
|
|
17,152 |
|
|
|
16,845 |
|
|
Net income |
|
10,941 |
|
|
|
10,782 |
|
|
|
11,045 |
|
|
Basic earnings per common share |
$ |
0.52 |
|
|
$ |
0.51 |
|
|
$ |
0.64 |
|
|
Diluted earnings per common share |
|
0.52 |
|
|
|
0.51 |
|
|
|
0.64 |
|
|
Weighted average basic common shares outstanding |
|
21,182,143 |
|
|
|
21,039,798 |
|
|
|
17,175,034 |
|
|
Weighted average diluted common shares outstanding |
|
21,232,758 |
|
|
|
21,058,085 |
|
|
|
17,194,825 |
|
|
Shares outstanding at end of period |
|
21,319,583 |
|
|
|
21,319,583 |
|
|
|
17,257,357 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) See the section entitled “Non-GAAP Reconciliation (Unaudited)”
for a reconciliation of this non-GAAP financial measure. |
|
|
|
|
|
|
|
|
|
|
|
|
|
James E. Beckwith, President and Chief Executive
Officer, commented on the financial results:
“We are pleased to have opened a full-service
office in San Francisco’s Financial District on September 3rd,
further demonstrating our commitment to serving clients and
communities in the San Francisco Bay Area. The San Francisco Bay
Area now has 24 employees contributing $189.0 million in deposits
since the bank’s expansion there began in June 2023. Five Star
Bank’s high-tech and high-touch, relationship-based and
purpose-driven banking continues to earn the trust and respect of
those we serve.
We are also pleased with strong third quarter
results. Total loans held for investment increased by $194.3
million, or 5.95%, and total deposits increased by $250.3 million,
or 7.95%, during the third quarter. Non-wholesale loans held for
investment increased by $75.2 million, or 2.42%, and wholesale
loans held for investment, which we define as purchased loans,
increased by $119.1 million, or 76.91%, in each case during the
third quarter of 2024. Non-wholesale deposits increased by $92.9
million, or 3.21%, and wholesale deposits, which we define as
brokered deposits and public time deposits, increased by $157.4
million, or 62.35%, in each case during the third quarter of 2024.
Short-term borrowings remained at zero as of June 30, 2024 and
September 30, 2024. We attribute this growth to the continued
demand for our differentiated customer experience and the strength
of our team.
Although cost of funds increased 16 basis points
to 2.72%, we were able to maintain net interest margin which
decreased by only two basis points to 3.37% during the third
quarter of 2024. Our efficiency ratio decreased to 43.37% compared
to 44.07% for the second quarter of 2024, exhibiting our ability to
preserve disciplined business practices and expense management as
we expand our footprint. We are also pleased that, in addition to
first and second quarter cash dividends in 2024, we declared a
third quarter cash dividend of $0.20 per share, exemplifying our
focus on shareholder value.
In addition to numerous awards received in the
first half of 2024, Five Star Bancorp was included among the Piper
Sandler Sm-All Stars Class of 2024 and was also ranked number five
by Bank Director Magazine’s RankingBanking study of the 2024 Best
U.S. Banks with assets less than $5 billion. Bank Director
Magazine’s RankingBanking study also ranked Five Star Bancorp as
number 18 among the 2024 Top 25 U.S. Banks. Furthermore, a member
of the Company’s leadership was recognized with a Sacramento
Business Journal 40 Under 40 Award.”
Financial highlights during the quarter included
the following:
- The Company’s full-service office
in San Francisco’s Financial District opened on September 3, 2024.
The San Francisco Bay Area team increased from 19 to 24 employees
who generated deposit balances totaling $189.0 million at
September 30, 2024, an increase of $27.7 million from
June 30, 2024.
- Cash and cash equivalents were
$250.9 million, representing 7.38% of total deposits at
September 30, 2024, as compared to 6.04% at June 30,
2024.
- Total deposits increased by
$250.3 million, or 7.95%, during the three months ended
September 30, 2024, due to increases in both non-wholesale and
wholesale deposits, which the Company defines as brokered deposits
and public time deposits. During the three months ended
September 30, 2024, non-wholesale deposits increased by $92.9
million, or 3.21%, and wholesale deposits increased by $157.4
million.
- The Company had no short-term
borrowings at September 30, 2024 and June 30, 2024.
- Consistent, disciplined management
of expenses contributed to our efficiency ratio of 43.37% for the
three months ended September 30, 2024, as compared to 44.07%
for the three months ended June 30, 2024.
- For the three months ended
September 30, 2024, net interest margin was 3.37%, as compared
to 3.39% for the three months ended June 30, 2024 and 3.31%
for the three months ended September 30, 2023. The effective
Federal Funds rate decreased to 4.83% as of September 30, 2024
from 5.33% at June 30, 2024 and September 30, 2023.
- Other comprehensive income was $2.5
million during the three months ended September 30, 2024.
Unrealized losses, net of tax effect, on available-for-sale
securities were $9.7 million as of September 30, 2024. Total
carrying value of held-to-maturity and available-for-sale
securities represented 0.07% and 2.76% of total interest-earning
assets, respectively, as of September 30, 2024.
- The Company’s common equity Tier 1
capital ratio was 10.93% and 11.27% as of September 30, 2024
and June 30, 2024, respectively. The Bank continues to meet
all requirements to be considered “well-capitalized” under
applicable regulatory guidelines.
- Loan and deposit growth in the
three and twelve months ended September 30, 2024 was as
follows:
|
(in thousands) |
September 30, 2024 |
|
June 30, 2024 |
|
$ Change |
|
% Change |
|
Loans held for investment |
$ |
3,460,565 |
|
|
$ |
3,266,291 |
|
|
$ |
194,274 |
|
|
|
5.95 |
% |
|
Non-interest-bearing deposits |
|
906,939 |
|
|
|
825,733 |
|
|
|
81,206 |
|
|
|
9.83 |
% |
|
Interest-bearing deposits |
|
2,493,040 |
|
|
|
2,323,898 |
|
|
|
169,142 |
|
|
|
7.28 |
% |
|
|
|
|
|
|
|
|
|
|
(in thousands) |
September 30, 2024 |
|
September 30, 2023 |
|
$ Change |
|
% Change |
|
Loans held for investment |
$ |
3,460,565 |
|
|
$ |
3,009,930 |
|
|
$ |
450,635 |
|
|
|
14.97 |
% |
|
Non-interest-bearing deposits |
|
906,939 |
|
|
|
833,434 |
|
|
|
73,505 |
|
|
|
8.82 |
% |
|
Interest-bearing deposits |
|
2,493,040 |
|
|
|
2,198,776 |
|
|
|
294,264 |
|
|
|
13.38 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- The ratio of nonperforming loans to
loans held for investment at period end decreased to 0.05% at
September 30, 2024 from 0.06% at June 30, 2024.
- The Company’s Board of Directors
declared, and the Company subsequently paid, a cash dividend of
$0.20 per share during the three months ended September 30,
2024. The Company’s Board of Directors subsequently declared
another cash dividend of $0.20 per share on October 17, 2024,
which the Company expects to pay on November 12, 2024 to
shareholders of record as of November 4, 2024.
Summary Results
Three months ended September 30, 2024, as
compared to three months ended June 30, 2024
The Company’s net income was $10.9 million for
the three months ended September 30, 2024, as compared to
$10.8 million for the three months ended June 30, 2024. Net
interest income increased by $1.3 million, primarily due to an
increase in interest income driven by higher yields on new and
repriced loans, partially offset by an increase in interest expense
due to larger average deposit balances at higher rates, as compared
to the three months ended June 30, 2024. The provision for
credit losses increased by $0.8 million, relating to loan growth
and net charge-offs of $0.8 million in the three months ended
September 30, 2024, as compared to the three months ended
June 30, 2024. Non-interest income decreased by $0.2 million,
primarily due to a reduction in gains from loans sold during the
three months ended September 30, 2024, as compared to the
three months ended June 30, 2024. Non-interest expense
increased by $0.3 million, primarily related to increases in: (i)
salaries and employee benefits; and (ii) data processing and
software, as compared to the three months ended June 30,
2024.
Three months ended September 30, 2024, as
compared to three months ended September 30, 2023
The Company’s net income was $10.9 million for
the three months ended September 30, 2024, as compared to
$11.0 million for the three months ended September 30, 2023.
Net interest income increased by $2.9 million, primarily due to an
increase in interest income driven by higher yields on new and
repriced loans, partially offset by an increase in interest expense
due to larger average deposit balances at higher rates, as compared
to the three months ended September 30, 2024. The provision
for credit losses increased by $1.7 million, relating to loan
growth and net charge-offs of $0.8 million in the three months
ended September 30, 2024, as compared to the three months
ended September 30, 2023. Non-interest income was unchanged
from the three months ended September 30, 2023. Non-interest
expense increased by $1.8 million, with an increase in salaries and
employee benefits related to the Company’s expansion into the San
Francisco Bay Area as the leading driver.
The following is a summary of the components of
the Company’s operating results and performance ratios for the
periods indicated:
|
|
Three months ended |
|
|
|
|
|
(in thousands, except per share data) |
September 30, 2024 |
|
June 30, 2024 |
|
$ Change |
|
% Change |
|
Selected operating data: |
|
|
|
|
|
|
|
|
Net interest income |
$ |
30,386 |
|
|
$ |
29,092 |
|
|
$ |
1,294 |
|
|
|
4.45 |
% |
|
Provision for credit losses |
|
2,750 |
|
|
|
2,000 |
|
|
|
750 |
|
|
|
37.50 |
% |
|
Non-interest income |
|
1,381 |
|
|
|
1,573 |
|
|
|
(192 |
) |
|
|
(12.21 |
)% |
|
Non-interest expense |
|
13,776 |
|
|
|
13,513 |
|
|
|
263 |
|
|
|
1.95 |
% |
|
Pre-tax income |
|
15,241 |
|
|
|
15,152 |
|
|
|
89 |
|
|
|
0.59 |
% |
|
Provision for income taxes |
|
4,300 |
|
|
|
4,370 |
|
|
|
(70 |
) |
|
|
(1.60 |
)% |
|
Net income |
$ |
10,941 |
|
|
$ |
10,782 |
|
|
$ |
159 |
|
|
|
1.47 |
% |
|
Earnings per common share: |
|
|
|
|
|
|
|
|
Basic |
$ |
0.52 |
|
|
$ |
0.51 |
|
|
$ |
0.01 |
|
|
|
1.96 |
% |
|
Diluted |
|
0.52 |
|
|
|
0.51 |
|
|
|
0.01 |
|
|
|
1.96 |
% |
|
Performance and other financial ratios: |
|
|
|
|
|
|
|
|
ROAA |
|
1.18 |
% |
|
|
1.23 |
% |
|
|
|
|
|
ROAE |
|
11.31 |
% |
|
|
11.72 |
% |
|
|
|
|
|
Net interest margin |
|
3.37 |
% |
|
|
3.39 |
% |
|
|
|
|
|
Cost of funds |
|
2.72 |
% |
|
|
2.56 |
% |
|
|
|
|
|
Efficiency ratio |
|
43.37 |
% |
|
|
44.07 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
|
|
|
(in thousands, except per share data) |
September 30, 2024 |
|
September 30, 2023 |
|
$ Change |
|
% Change |
|
Selected operating data: |
|
|
|
|
|
|
|
|
Net interest income |
$ |
30,386 |
|
|
$ |
27,476 |
|
|
$ |
2,910 |
|
|
|
10.59 |
% |
|
Provision for credit losses |
|
2,750 |
|
|
|
1,050 |
|
|
|
1,700 |
|
|
|
161.90 |
% |
|
Non-interest income |
|
1,381 |
|
|
|
1,384 |
|
|
|
(3 |
) |
|
|
(0.22 |
)% |
|
Non-interest expense |
|
13,776 |
|
|
|
12,015 |
|
|
|
1,761 |
|
|
|
14.66 |
% |
|
Pre-tax income |
|
15,241 |
|
|
|
15,795 |
|
|
|
(554 |
) |
|
|
(3.51 |
)% |
|
Provision for income taxes |
|
4,300 |
|
|
|
4,750 |
|
|
|
(450 |
) |
|
|
(9.47 |
)% |
|
Net income |
$ |
10,941 |
|
|
$ |
11,045 |
|
|
$ |
(104 |
) |
|
|
(0.94 |
)% |
|
Earnings per common share: |
|
|
|
|
|
|
|
|
Basic |
$ |
0.52 |
|
|
$ |
0.64 |
|
|
$ |
(0.12 |
) |
|
|
(18.75 |
)% |
|
Diluted |
|
0.52 |
|
|
|
0.64 |
|
|
|
(0.12 |
) |
|
|
(18.75 |
)% |
|
Performance and other financial ratios: |
|
|
|
|
|
|
|
|
ROAA |
|
1.18 |
% |
|
|
1.30 |
% |
|
|
|
|
|
ROAE |
|
11.31 |
% |
|
|
16.09 |
% |
|
|
|
|
|
Net interest margin |
|
3.37 |
% |
|
|
3.31 |
% |
|
|
|
|
|
Cost of funds |
|
2.72 |
% |
|
|
2.28 |
% |
|
|
|
|
|
Efficiency ratio |
|
43.37 |
% |
|
|
41.63 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance Sheet Summary
|
(in thousands) |
September 30, 2024 |
|
December 31, 2023 |
|
$ Change |
|
% Change |
|
Selected financial condition data: |
|
|
|
|
|
|
|
|
Total assets |
$ |
3,887,004 |
|
|
$ |
3,593,125 |
|
|
$ |
293,879 |
|
|
|
8.18 |
% |
|
Cash and cash equivalents |
|
250,852 |
|
|
|
321,576 |
|
|
|
(70,724 |
) |
|
|
(21.99 |
)% |
|
Total loans held for investment |
|
3,460,565 |
|
|
|
3,081,719 |
|
|
|
378,846 |
|
|
|
12.29 |
% |
|
Total investments |
|
106,958 |
|
|
|
111,160 |
|
|
|
(4,202 |
) |
|
|
(3.78 |
)% |
|
Total liabilities |
|
3,497,074 |
|
|
|
3,307,351 |
|
|
|
189,723 |
|
|
|
5.74 |
% |
|
Total deposits |
|
3,399,979 |
|
|
|
3,026,896 |
|
|
|
373,083 |
|
|
|
12.33 |
% |
|
Subordinated notes, net |
|
73,859 |
|
|
|
73,749 |
|
|
|
110 |
|
|
|
0.15 |
% |
|
Total shareholders’ equity |
|
389,930 |
|
|
|
285,774 |
|
|
|
104,156 |
|
|
|
36.45 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Insured and collateralized deposits
were approximately $2.2 billion, representing 63.90% of total
deposits as of September 30, 2024. Net uninsured and
uncollateralized deposits were approximately $1.2 billion as of
September 30, 2024.
- Commercial and consumer deposit
accounts constituted 73.14% of total deposits. Deposit
relationships of at least $5 million represented 60.58% of total
deposits and had an average age of approximately 8.89 years as of
September 30, 2024.
- Cash and cash equivalents as of
September 30, 2024 were $250.9 million, representing 7.38% of
total deposits at September 30, 2024, as compared to 6.04% as
of June 30, 2024.
- Total liquidity (consisting of cash
and cash equivalents and unused and immediately available borrowing
capacity as set forth below) was approximately $1.8 billion as of
September 30, 2024.
|
|
September 30, 2024 |
|
(in thousands) |
Line of Credit |
|
Letters of Credit Issued |
|
Borrowings |
|
Available |
|
FHLB advances |
$ |
1,123,388 |
|
|
$ |
567,500 |
|
|
$ |
— |
|
|
$ |
555,888 |
|
|
Federal Reserve Discount Window |
|
858,251 |
|
|
|
— |
|
|
|
— |
|
|
|
858,251 |
|
|
Correspondent bank lines of credit |
|
175,000 |
|
|
|
— |
|
|
|
— |
|
|
|
175,000 |
|
|
Cash and cash equivalents |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
250,852 |
|
|
Total |
$ |
2,156,639 |
|
|
$ |
567,500 |
|
|
$ |
— |
|
|
$ |
1,839,991 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The increase in total assets from
December 31, 2023 to September 30, 2024 was primarily due
to a $378.8 million increase in total loans held for
investment, partially offset by a $70.7 million decrease in
cash and cash equivalents. The $378.8 million increase in total
loans held for investment between December 31, 2023 and
September 30, 2024 was a result of $873.7 million in loan
originations and advances, partially offset by $190.6 million and
$304.2 million in loan payoffs and paydowns, respectively. The
$378.8 million increase in total loans held for investment included
$254.7 million in purchases of loans within the consumer
concentration of the loan portfolio. The $70.7 million decrease in
cash and cash equivalents primarily resulted from net cash outflows
related to investing activities of $376.5 million, partially offset
by net cash inflows related to financing and operating activities
of $272.0 million and $33.8 million, respectively.
The increase in total liabilities from
December 31, 2023 to September 30, 2024 was primarily due
to an increase in interest-bearing deposits of $297.2 million,
partially offset by a decrease in other borrowings of $170.0
million. The increase in interest-bearing deposits was largely due
to increases in money market and time deposits of $264.1 million
and $24.4 million, respectively.
The increase in total shareholders’ equity from
December 31, 2023 to September 30, 2024 was primarily a
result of $80.9 million of additional common stock outstanding and
net income recognized of $32.4 million, partially offset by $12.0
million in cash distributions paid during the period.
Net Interest Income and Net Interest
Margin
The following is a summary of the components of
net interest income for the periods indicated:
|
|
Three months ended |
|
|
|
|
|
(in thousands) |
September 30, 2024 |
|
June 30, 2024 |
|
$ Change |
|
% Change |
|
Interest and fee income |
$ |
52,667 |
|
|
$ |
48,998 |
|
|
$ |
3,669 |
|
|
|
7.49 |
% |
|
Interest expense |
|
22,281 |
|
|
|
19,906 |
|
|
|
2,375 |
|
|
|
11.93 |
% |
|
Net interest income |
$ |
30,386 |
|
|
$ |
29,092 |
|
|
$ |
1,294 |
|
|
|
4.45 |
% |
|
Net interest margin |
|
3.37 |
% |
|
|
3.39 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
|
|
|
(in thousands) |
September 30, 2024 |
|
September 30, 2023 |
|
$ Change |
|
% Change |
|
Interest and fee income |
$ |
52,667 |
|
|
$ |
45,098 |
|
|
$ |
7,569 |
|
|
|
16.78 |
% |
|
Interest expense |
|
22,281 |
|
|
|
17,622 |
|
|
|
4,659 |
|
|
|
26.44 |
% |
|
Net interest income |
$ |
30,386 |
|
|
$ |
27,476 |
|
|
$ |
2,910 |
|
|
|
10.59 |
% |
|
Net interest margin |
|
3.37 |
% |
|
|
3.31 |
% |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
The following table shows the components of net
interest income and net interest margin for the quarterly periods
indicated:
|
|
Three months ended |
|
|
September 30, 2024 |
|
June 30, 2024 |
|
September 30, 2023 |
|
(in thousands) |
AverageBalance |
|
InterestIncome/Expense |
|
Yield/ Rate |
|
AverageBalance |
|
Interest Income/ Expense |
|
Yield/ Rate |
|
Average Balance |
|
Interest Income/ Expense |
|
Yield/ Rate |
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning deposits in banks |
$ |
126,266 |
|
|
$ |
1,657 |
|
|
|
5.22 |
% |
|
$ |
148,936 |
|
|
$ |
1,986 |
|
|
|
5.36 |
% |
|
$ |
198,751 |
|
|
$ |
2,584 |
|
|
|
5.16 |
% |
|
Investment securities |
|
106,256 |
|
|
|
620 |
|
|
|
2.32 |
% |
|
|
105,819 |
|
|
|
650 |
|
|
|
2.47 |
% |
|
|
112,154 |
|
|
|
653 |
|
|
|
2.31 |
% |
|
Loans held for investment and sale |
|
3,354,050 |
|
|
|
50,390 |
|
|
|
5.98 |
% |
|
|
3,197,921 |
|
|
|
46,362 |
|
|
|
5.83 |
% |
|
|
2,982,140 |
|
|
|
41,861 |
|
|
|
5.57 |
% |
|
Total interest-earning assets |
|
3,586,572 |
|
|
|
52,667 |
|
|
|
5.84 |
% |
|
|
3,452,676 |
|
|
|
48,998 |
|
|
|
5.71 |
% |
|
|
3,293,045 |
|
|
|
45,098 |
|
|
|
5.43 |
% |
|
Interest receivable and other assets, net |
|
91,965 |
|
|
|
|
|
|
|
84,554 |
|
|
|
|
|
|
|
77,757 |
|
|
|
|
|
|
Total assets |
$ |
3,678,537 |
|
|
|
|
|
|
$ |
3,537,230 |
|
|
|
|
|
|
$ |
3,370,802 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and shareholders’ equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing transaction accounts |
$ |
302,188 |
|
|
$ |
1,237 |
|
|
|
1.63 |
% |
|
$ |
291,470 |
|
|
$ |
1,104 |
|
|
|
1.52 |
% |
|
$ |
296,230 |
|
|
$ |
972 |
|
|
|
1.30 |
% |
|
Savings accounts |
|
124,851 |
|
|
|
979 |
|
|
|
3.12 |
% |
|
|
120,080 |
|
|
|
856 |
|
|
|
2.87 |
% |
|
|
134,920 |
|
|
|
880 |
|
|
|
2.59 |
% |
|
Money market accounts |
|
1,578,244 |
|
|
|
14,688 |
|
|
|
3.70 |
% |
|
|
1,547,814 |
|
|
|
13,388 |
|
|
|
3.48 |
% |
|
|
1,328,290 |
|
|
|
9,536 |
|
|
|
2.85 |
% |
|
Time accounts |
|
326,640 |
|
|
|
4,172 |
|
|
|
5.08 |
% |
|
|
272,887 |
|
|
|
3,369 |
|
|
|
4.96 |
% |
|
|
399,514 |
|
|
|
4,998 |
|
|
|
4.96 |
% |
|
Subordinated notes and other borrowings |
|
76,988 |
|
|
|
1,205 |
|
|
|
6.23 |
% |
|
|
75,747 |
|
|
|
1,189 |
|
|
|
6.31 |
% |
|
|
79,085 |
|
|
|
1,236 |
|
|
|
6.20 |
% |
|
Total interest-bearing liabilities |
|
2,408,911 |
|
|
|
22,281 |
|
|
|
3.68 |
% |
|
|
2,307,998 |
|
|
|
19,906 |
|
|
|
3.47 |
% |
|
|
2,238,039 |
|
|
|
17,622 |
|
|
|
3.12 |
% |
|
Demand accounts |
|
852,872 |
|
|
|
|
|
|
|
817,668 |
|
|
|
|
|
|
|
825,254 |
|
|
|
|
|
|
Interest payable and other liabilities |
|
32,062 |
|
|
|
|
|
|
|
41,429 |
|
|
|
|
|
|
|
35,123 |
|
|
|
|
|
|
Shareholders’ equity |
|
384,692 |
|
|
|
|
|
|
|
370,135 |
|
|
|
|
|
|
|
272,386 |
|
|
|
|
|
|
Total liabilities & shareholders’ equity |
$ |
3,678,537 |
|
|
|
|
|
|
$ |
3,537,230 |
|
|
|
|
|
|
$ |
3,370,802 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest spread |
|
|
|
|
|
2.16 |
% |
|
|
|
|
|
|
2.24 |
% |
|
|
|
|
|
|
2.31 |
% |
|
Net interest income/margin |
|
|
$ |
30,386 |
|
|
|
3.37 |
% |
|
|
|
$ |
29,092 |
|
|
|
3.39 |
% |
|
|
|
$ |
27,476 |
|
|
|
3.31 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income during the three months
ended September 30, 2024 increased $1.3 million, while net
interest margin decreased two basis points compared to the three
months ended June 30, 2024. Interest income increased by $3.7
million compared to the prior quarter, primarily due to higher
yields on new and repriced loans. Average loan yields increased 15
basis points compared to the prior quarter and average balances
increased 4.88% during the same period. The increase in interest
income compared to the prior quarter was partially offset by a $2.4
million increase in interest expense, primarily due to larger
average deposit balances at higher rates. Average cost of total
deposits increased 16 basis points compared to the prior quarter
and average balances increased 4.42% during the same period.
As compared to the three months ended
September 30, 2023, net interest income increased $2.9 million
and net interest margin increased six basis points. Interest income
increased by $7.6 million compared to the same quarter of the prior
year, primarily due to higher yields on new and repriced loans.
Average loan yields increased 41 basis points compared to the same
quarter of the prior year and average balances increased 12.47%
during the same period. The increase in interest income was
partially offset by an additional $4.7 million in interest expense
compared to the same quarter of the prior year. Average cost of
total deposits increased 45 basis points compared to the same
quarter of the prior year and average balances increased 6.72%
during the same period.
Loans by Type
The following table provides loan balances,
excluding deferred loan fees, by type as of September 30,
2024:
|
(in thousands) |
|
|
Real estate: |
|
|
Commercial |
$ |
2,812,600 |
|
|
Commercial land and development |
|
4,709 |
|
|
Commercial construction |
|
92,841 |
|
|
Residential construction |
|
3,452 |
|
|
Residential |
|
33,415 |
|
|
Farmland |
|
47,907 |
|
|
Commercial: |
|
|
Secured |
|
171,855 |
|
|
Unsecured |
|
25,011 |
|
|
Consumer and other |
|
270,760 |
|
|
Net deferred loan fees |
|
(1,985 |
) |
|
Total loans held for investment |
$ |
3,460,565 |
|
| |
|
|
|
Interest-bearing Deposits
The following table provides interest-bearing
deposit balances by type as of September 30, 2024:
|
(in thousands) |
|
|
Interest-bearing transaction accounts |
$ |
324,028 |
|
|
Money market accounts |
|
1,546,443 |
|
|
Savings accounts |
|
131,561 |
|
|
Time accounts |
|
491,008 |
|
|
Total interest-bearing deposits |
$ |
2,493,040 |
|
| |
|
|
|
Asset Quality
Allowance for Credit Losses
At September 30, 2024, the Company’s
allowance for credit losses was $37.6 million, as compared to $34.4
million at December 31, 2023. The $3.2 million increase in the
allowance is due to a $6.0 million provision for credit losses
recorded during the nine months ended September 30, 2024,
partially offset by net charge-offs of $2.8 million, mainly
attributable to commercial and industrial loans, during the same
period.
The Company’s ratio of nonperforming loans to
loans held for investment decreased from 0.06% at December 31,
2023 to 0.05% at September 30, 2024. Loans designated as watch
increased from $39.6 million to $90.9 million between
December 31, 2023 and September 30, 2024. Loans
designated as substandard decreased from $2.0 million to $1.9
million between December 31, 2023 and September 30, 2024.
There were no loans with doubtful risk grades at September 30,
2024 or December 31, 2023.
A summary of the allowance for credit losses by
loan class is as follows:
|
|
September 30, 2024 |
|
December 31, 2023 |
|
(in thousands) |
Amount |
|
% of Total |
|
Amount |
|
% of Total |
|
Real estate: |
|
|
|
|
|
|
|
|
Commercial |
$ |
26,217 |
|
|
|
69.74 |
% |
|
$ |
29,015 |
|
|
|
84.27 |
% |
|
Commercial land and development |
|
89 |
|
|
|
0.24 |
% |
|
|
178 |
|
|
|
0.52 |
% |
|
Commercial construction |
|
1,756 |
|
|
|
4.67 |
% |
|
|
718 |
|
|
|
2.08 |
% |
|
Residential construction |
|
47 |
|
|
|
0.13 |
% |
|
|
89 |
|
|
|
0.26 |
% |
|
Residential |
|
284 |
|
|
|
0.76 |
% |
|
|
151 |
|
|
|
0.44 |
% |
|
Farmland |
|
581 |
|
|
|
1.55 |
% |
|
|
399 |
|
|
|
1.16 |
% |
|
|
|
28,974 |
|
|
|
77.09 |
% |
|
|
30,550 |
|
|
|
88.73 |
% |
|
Commercial: |
|
|
|
|
|
|
|
|
Secured |
|
6,049 |
|
|
|
16.10 |
% |
|
|
3,314 |
|
|
|
9.62 |
% |
|
Unsecured |
|
251 |
|
|
|
0.67 |
% |
|
|
189 |
|
|
|
0.55 |
% |
|
|
|
6,300 |
|
|
|
16.77 |
% |
|
|
3,503 |
|
|
|
10.17 |
% |
|
Consumer and other |
|
2,309 |
|
|
|
6.14 |
% |
|
|
378 |
|
|
|
1.10 |
% |
|
Total allowance for credit losses |
$ |
37,583 |
|
|
|
100.00 |
% |
|
$ |
34,431 |
|
|
|
100.00 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The ratio of allowance for credit losses to
loans held for investment was 1.09% at September 30, 2024, as
compared to 1.12% at December 31, 2023.
Non-interest Income
The following table presents the key components
of non-interest income for the periods indicated:
|
|
Three months ended |
|
|
|
|
|
(in thousands) |
September 30, 2024 |
|
June 30, 2024 |
|
$ Change |
|
% Change |
|
Service charges on deposit accounts |
$ |
165 |
|
|
$ |
189 |
|
|
$ |
(24 |
) |
|
|
(12.70 |
)% |
|
Gain on sale of loans |
|
306 |
|
|
|
449 |
|
|
|
(143 |
) |
|
|
(31.85 |
)% |
|
Loan-related fees |
|
406 |
|
|
|
370 |
|
|
|
36 |
|
|
|
9.73 |
% |
|
FHLB stock dividends |
|
327 |
|
|
|
329 |
|
|
|
(2 |
) |
|
|
(0.61 |
)% |
|
Earnings on bank-owned life insurance |
|
162 |
|
|
|
158 |
|
|
|
4 |
|
|
|
2.53 |
% |
|
Other income |
|
15 |
|
|
|
78 |
|
|
|
(63 |
) |
|
|
(80.77 |
)% |
|
Total non-interest income |
$ |
1,381 |
|
|
$ |
1,573 |
|
|
$ |
(192 |
) |
|
|
(12.21 |
)% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of loans. The decrease resulted
from a decline in the volume of loans sold, partially offset by an
increase in the effective yield of loans sold. During the three
months ended September 30, 2024, approximately $4.4 million of
loans were sold with an effective yield of 7.03%, as compared to
approximately $6.8 million of loans sold with an effective yield of
6.60% during the three months ended June 30, 2024.
The following table presents the key components
of non-interest income for the periods indicated:
|
|
Three months ended |
|
|
|
|
(in thousands) |
September 30, 2024 |
|
September 30, 2023 |
|
$ Change |
|
% Change |
|
Service charges on deposit accounts |
$ |
165 |
|
|
$ |
158 |
|
|
$ |
7 |
|
|
|
4.43 |
% |
|
Gain on sale of loans |
|
306 |
|
|
|
396 |
|
|
|
(90 |
) |
|
|
(22.73 |
)% |
|
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 |
)% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of loans. The decrease related
primarily to an overall decline in the volume of loans sold,
partially offset by an improvement in the effective yield of loans
sold. During the three months ended September 30, 2024,
approximately $4.4 million of loans were sold with an effective
yield of 7.03%, as compared to approximately $7.0 million of loans
sold with an effective yield of 5.63% during the three months ended
September 30, 2023.
Non-interest Expense
The following table presents the key components
of non-interest expense for the periods indicated:
|
|
Three months ended |
|
|
|
|
|
(in thousands) |
September 30, 2024 |
|
June 30, 2024 |
|
$ Change |
|
% Change |
|
Salaries and employee benefits |
$ |
7,969 |
|
|
$ |
7,803 |
|
|
$ |
166 |
|
|
|
2.13 |
% |
|
Occupancy and equipment |
|
626 |
|
|
|
646 |
|
|
|
(20 |
) |
|
|
(3.10 |
)% |
|
Data processing and software |
|
1,327 |
|
|
|
1,235 |
|
|
|
92 |
|
|
|
7.45 |
% |
|
Federal Deposit Insurance Corporation (“FDIC”) insurance |
|
405 |
|
|
|
390 |
|
|
|
15 |
|
|
|
3.85 |
% |
|
Professional services |
|
830 |
|
|
|
767 |
|
|
|
63 |
|
|
|
8.21 |
% |
|
Advertising and promotional |
|
584 |
|
|
|
615 |
|
|
|
(31 |
) |
|
|
(5.04 |
)% |
|
Loan-related expenses |
|
292 |
|
|
|
297 |
|
|
|
(5 |
) |
|
|
(1.68 |
)% |
|
Other operating expenses |
|
1,743 |
|
|
|
1,760 |
|
|
|
(17 |
) |
|
|
(0.97 |
)% |
|
Total non-interest expense |
$ |
13,776 |
|
|
$ |
13,513 |
|
|
$ |
263 |
|
|
|
1.95 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits. The increase
related primarily to: (i) a $0.4 million decrease in loan
origination costs due to fewer loan originations, net of purchased
consumer loans; and (ii) a $0.2 million increase in salaries,
benefits, and bonus expense related to a 4.28% increase in
headcount during the quarter. These increases were partially offset
by a $0.4 million decrease in commissions expense due to fewer loan
originations, net of purchased consumer loans,
period-over-period.
The following table presents the key components
of non-interest expense for the periods indicated:
|
|
Three months ended |
|
|
|
|
|
(in thousands) |
September 30, 2024 |
|
September 30, 2023 |
|
$ 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 |
% |
|
Loan-related expenses |
|
292 |
|
|
|
345 |
|
|
|
(53 |
) |
|
|
(15.36 |
)% |
|
Other operating expenses |
|
1,743 |
|
|
|
1,603 |
|
|
|
140 |
|
|
|
8.73 |
% |
|
Total non-interest expense |
$ |
13,776 |
|
|
$ |
12,015 |
|
|
$ |
1,761 |
|
|
|
14.66 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits. The increase
related primarily to: (i) a $1.0 million increase in salaries,
benefits, and bonus expense, mainly for employees hired since
September 2023 to support expansion into the San Francisco Bay
Area; and (ii) a $0.2 million increase in commissions paid,
primarily to new employees in the San Francisco Bay Area. This was
partially offset by a $0.1 million increase in loan origination
costs due to a higher number of loan originations, net of purchased
consumer loans, period-over-period.
Data processing and software. The increase was
primarily due to: (i) increased usage of our digital banking
platform; (ii) higher transaction volumes related to the increased
number of loan and deposit accounts; and (iii) an increased number
of licenses required for new users on our loan origination and
documentation system.
Professional services. The increase was
primarily due to a $0.1 million increase in fees for 2024 audits
and examinations.
Other operating expenses. The increase was
primarily due to $0.1 million in operational losses on deposit
accounts.
Provision for Income Taxes
Three months ended September 30, 2024, as
compared to three months ended June 30, 2024
Provision for income taxes decreased slightly to
$4.3 million for the three months ended September 30, 2024
from $4.4 million for the three months ended June 30, 2024,
primarily driven by a slight decline in the effective tax rate. The
effective tax rates were 28.21% and 28.84% for the three months
ended September 30, 2024 and June 30, 2024,
respectively.
Three months ended September 30, 2024, as
compared to three months ended September 30, 2023
Provision for income taxes decreased by $0.5
million, or 9.47%, for the three months ended September 30,
2024 compared to the three months ended September 30, 2023.
This decline was primarily driven by an overall decrease in pre-tax
income combined with a $0.2 million adjustment to the provision
during the three months ended September 30, 2023 to true-up the
year-to-date effective tax rate which did not occur during the
three months ended September 30, 2024. The effective tax rates for
the three months ended September 30, 2024 and
September 30, 2023, were 28.21% and 30.07% respectively.
Webcast Details
Five Star Bancorp will host a live webcast for
analysts and investors on Tuesday, October 29, 2024 at 1:00 pm ET
(10:00 am PT) to discuss its third quarter financial results. To
view the live webcast, visit the “News & Events” section of the
Company’s website under “Events” at
https://investors.fivestarbank.com/news-events/events. The webcast
will be archived on the Company’s website for a period of 90
days.
About Five Star
Bancorp
Five Star is a bank holding company
headquartered in Rancho Cordova, California. Five Star operates
through its wholly owned banking subsidiary, Five Star Bank. The
Bank has eight branches in Northern California.
Forward-Looking Statements
This press release contains forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. These forward-looking statements represent
plans, estimates, objectives, goals, guidelines, expectations,
intentions, projections, and statements of the Company’s beliefs
concerning future events, business plans, objectives, expected
operating results, and the assumptions upon which those statements
are based. Forward-looking statements include without limitation,
any statement that may predict, forecast, indicate, or imply future
results, performance, or achievements, and are typically identified
with words such as “may,” “could,” “should,” “will,” “would,”
“believe,” “anticipate,” “estimate,” “expect,” “aim,” “intend,”
“plan,” or words or phases of similar meaning. The Company cautions
that the forward-looking statements are based largely on the
Company’s expectations and are subject to a number of known and
unknown risks and uncertainties that are subject to change based on
factors which are, in many instances, beyond the Company’s control.
Such forward-looking statements are based on various assumptions
(some of which may be beyond the Company’s control) and are subject
to risks and uncertainties, which change over time, and other
factors, which could cause actual results to differ materially from
those currently anticipated. New risks and uncertainties may emerge
from time to time, and it is not possible for the Company to
predict their occurrence or how they will affect the Company. If
one or more of the factors affecting the Company’s forward-looking
information and statements proves incorrect, then the Company’s
actual results, performance, or achievements could differ
materially from those expressed in, or implied by, forward-looking
information and statements contained in this press release.
Therefore, the Company cautions you not to place undue reliance on
the Company’s forward-looking information and statements. Important
factors that could cause actual results to differ materially from
those in the forward-looking statements are set forth in the
Company’s Annual Report on Form 10-K for the year ended
December 31, 2023 and Quarterly Reports on Form 10-Q for the
three months ended March 31, 2024 and June 30, 2024, in each case
under the section entitled “Risk Factors,” and other documents
filed by the Company with the Securities and Exchange Commission
from time to time.
The Company disclaims any duty to revise or
update the forward-looking statements, whether written or oral, to
reflect actual results or changes in the factors affecting the
forward-looking statements, except as specifically required by
law.
Condensed Financial Data
(Unaudited)
| |
Three months ended |
| (in thousands, except
per share and share data) |
September 30, 2024 |
|
June 30, 2024 |
|
September 30, 2023 |
|
Revenue and Expense Data |
|
|
|
|
|
|
|
|
|
Interest and fee income |
$ |
52,667 |
|
|
$ |
48,998 |
|
|
$ |
45,098 |
|
|
Interest expense |
22,281 |
|
|
19,906 |
|
|
17,622 |
|
|
Net interest income |
30,386 |
|
|
29,092 |
|
|
27,476 |
|
|
Provision for credit losses |
2,750 |
|
|
2,000 |
|
|
1,050 |
|
|
Net interest income after provision |
27,636 |
|
|
27,092 |
|
|
26,426 |
|
|
Non-interest income: |
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts |
165 |
|
|
189 |
|
|
158 |
|
|
Gain on sale of loans |
306 |
|
|
449 |
|
|
396 |
|
|
Loan-related fees |
406 |
|
|
370 |
|
|
355 |
|
|
FHLB stock dividends |
327 |
|
|
329 |
|
|
274 |
|
|
Earnings on bank-owned life insurance |
162 |
|
|
158 |
|
|
127 |
|
|
Other income |
15 |
|
|
78 |
|
|
74 |
|
|
Total non-interest income |
1,381 |
|
|
1,573 |
|
|
1,384 |
|
|
Non-interest expense: |
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
7,969 |
|
|
7,803 |
|
|
6,876 |
|
|
Occupancy and equipment |
626 |
|
|
646 |
|
|
561 |
|
|
Data processing and software |
1,327 |
|
|
1,235 |
|
|
1,020 |
|
|
FDIC insurance |
405 |
|
|
390 |
|
|
375 |
|
|
Professional services |
830 |
|
|
767 |
|
|
700 |
|
|
Advertising and promotional |
584 |
|
|
615 |
|
|
535 |
|
|
Loan-related expenses |
292 |
|
|
297 |
|
|
345 |
|
|
Other operating expenses |
1,743 |
|
|
1,760 |
|
|
1,603 |
|
|
Total non-interest expense |
13,776 |
|
|
13,513 |
|
|
12,015 |
|
|
Income before provision for income taxes |
15,241 |
|
|
15,152 |
|
|
15,795 |
|
|
Provision for income taxes |
4,300 |
|
|
4,370 |
|
|
4,750 |
|
|
Net income |
$ |
10,941 |
|
|
$ |
10,782 |
|
|
$ |
11,045 |
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive Income |
|
|
|
|
|
|
|
|
|
Net income |
$ |
10,941 |
|
|
$ |
10,782 |
|
|
$ |
11,045 |
|
|
Net unrealized holding gain (loss) on securities available-for-sale
during the period |
3,549 |
|
|
295 |
|
|
(4,195 |
) |
|
Less: Income tax expense (benefit) related to other comprehensive
income (loss) |
1,049 |
|
|
87 |
|
|
(1,240 |
) |
|
Other comprehensive income (loss) |
2,500 |
|
|
208 |
|
|
(2,955 |
) |
|
Total comprehensive income |
$ |
13,441 |
|
|
$ |
10,990 |
|
|
$ |
8,090 |
|
|
|
|
|
|
|
|
|
|
|
|
Share and Per Share Data |
|
|
|
|
|
|
|
|
|
Earnings per common share: |
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.52 |
|
|
$ |
0.51 |
|
|
$ |
0.64 |
|
|
Diluted |
0.52 |
|
|
0.51 |
|
|
0.64 |
|
|
Book value per share |
18.29 |
|
|
17.85 |
|
|
15.88 |
|
|
Tangible book value per share(1) |
18.29 |
|
|
17.85 |
|
|
15.88 |
|
|
Weighted average basic common shares outstanding |
21,182,143 |
|
|
21,039,798 |
|
|
17,175,034 |
|
|
Weighted average diluted common shares outstanding |
21,232,758 |
|
|
21,058,085 |
|
|
17,194,825 |
|
|
Shares outstanding at end of period |
21,319,583 |
|
|
21,319,583 |
|
|
17,257,357 |
|
|
|
|
|
|
|
|
|
|
|
|
Credit Quality |
|
|
|
|
|
|
|
|
|
Allowance for credit losses to period end nonperforming loans |
2,041.44 |
% |
|
1,882.30 |
% |
|
1,699.35 |
% |
|
Nonperforming loans to loans held for investment |
0.05 |
% |
|
0.06 |
% |
|
0.07 |
% |
|
Nonperforming assets to total assets |
0.05 |
% |
|
0.05 |
% |
|
0.06 |
% |
|
Nonperforming loans plus performing loan modifications to loans
held for investment |
0.05 |
% |
|
0.06 |
% |
|
0.07 |
% |
|
|
|
|
|
|
|
|
|
|
|
Selected Financial Ratios |
|
|
|
|
|
|
|
|
|
ROAA |
1.18 |
% |
|
1.23 |
% |
|
1.30 |
% |
|
ROAE |
11.31 |
% |
|
11.72 |
% |
|
16.09 |
% |
|
Net interest margin |
3.37 |
% |
|
3.39 |
% |
|
3.31 |
% |
|
Loan to deposit |
101.87 |
% |
|
103.87 |
% |
|
99.57 |
% |
|
|
|
|
|
|
|
|
|
|
|
(1) See the section entitled “Non-GAAP Reconciliation (Unaudited)”
for a reconciliation of this non-GAAP financial measure. |
|
|
|
|
|
|
|
|
|
|
|
(in thousands) |
September 30, 2024 |
|
June 30, 2024 |
|
September 30, 2023 |
|
Balance Sheet Data |
|
|
|
|
|
|
Cash and due from financial institutions |
$ |
44,531 |
|
|
$ |
28,572 |
|
|
$ |
26,744 |
|
|
Interest-bearing deposits in banks |
|
206,321 |
|
|
|
161,787 |
|
|
|
296,804 |
|
|
Time deposits in banks |
|
4,118 |
|
|
|
4,097 |
|
|
|
6,971 |
|
|
Securities - available-for-sale, at fair value |
|
104,238 |
|
|
|
103,204 |
|
|
|
104,086 |
|
|
Securities - held-to-maturity, at amortized cost |
|
2,720 |
|
|
|
2,973 |
|
|
|
3,104 |
|
|
Loans held for sale |
|
2,910 |
|
|
|
5,322 |
|
|
|
9,326 |
|
|
Loans held for investment |
|
3,460,565 |
|
|
|
3,266,291 |
|
|
|
3,009,930 |
|
|
Allowance for credit losses |
|
(37,583 |
) |
|
|
(35,406 |
) |
|
|
(34,028 |
) |
|
Loans held for investment, net of allowance for credit losses |
|
3,422,982 |
|
|
|
3,230,885 |
|
|
|
2,975,902 |
|
|
FHLB stock |
|
15,000 |
|
|
|
15,000 |
|
|
|
15,000 |
|
|
Operating leases, right-of-use asset |
|
6,590 |
|
|
|
6,630 |
|
|
|
4,799 |
|
|
Premises and equipment, net |
|
1,657 |
|
|
|
1,610 |
|
|
|
1,564 |
|
|
Bank-owned life insurance |
|
19,192 |
|
|
|
19,030 |
|
|
|
17,023 |
|
|
Interest receivable and other assets |
|
56,745 |
|
|
|
55,107 |
|
|
|
43,717 |
|
|
Total assets |
$ |
3,887,004 |
|
|
$ |
3,634,217 |
|
|
$ |
3,505,040 |
|
|
|
|
|
|
|
|
|
Non-interest-bearing deposits |
$ |
906,939 |
|
|
$ |
825,733 |
|
|
$ |
833,434 |
|
|
Interest-bearing deposits |
|
2,493,040 |
|
|
|
2,323,898 |
|
|
|
2,198,776 |
|
|
Total deposits |
|
3,399,979 |
|
|
|
3,149,631 |
|
|
|
3,032,210 |
|
|
Subordinated notes, net |
|
73,859 |
|
|
|
73,822 |
|
|
|
73,713 |
|
|
Other borrowings |
|
— |
|
|
|
— |
|
|
|
90,000 |
|
|
Operating lease liability |
|
7,101 |
|
|
|
7,077 |
|
|
|
5,043 |
|
|
Interest payable and other liabilities |
|
16,135 |
|
|
|
23,217 |
|
|
|
30,050 |
|
|
Total liabilities |
|
3,497,074 |
|
|
|
3,253,747 |
|
|
|
3,231,016 |
|
|
|
|
|
|
|
|
|
Common stock |
|
302,251 |
|
|
|
301,968 |
|
|
|
220,266 |
|
|
Retained earnings |
|
97,411 |
|
|
|
90,734 |
|
|
|
69,689 |
|
|
Accumulated other comprehensive loss, net of taxes |
|
(9,732 |
) |
|
|
(12,232 |
) |
|
|
(15,931 |
) |
|
Total shareholders’ equity |
|
389,930 |
|
|
|
380,470 |
|
|
|
274,024 |
|
|
Total liabilities and shareholders’ equity |
$ |
3,887,004 |
|
|
$ |
3,634,217 |
|
|
$ |
3,505,040 |
|
|
|
|
|
|
|
|
|
Quarterly Average Balance Data |
|
|
|
|
|
|
Average loans held for investment and sale |
$ |
3,354,050 |
|
|
$ |
3,197,921 |
|
|
$ |
2,982,140 |
|
|
Average interest-earning assets |
|
3,586,572 |
|
|
|
3,452,676 |
|
|
|
3,293,045 |
|
|
Average total assets |
|
3,678,537 |
|
|
|
3,537,230 |
|
|
|
3,370,802 |
|
|
Average deposits |
|
3,184,795 |
|
|
|
3,049,919 |
|
|
|
2,984,208 |
|
|
Average total equity |
|
384,692 |
|
|
|
370,135 |
|
|
|
272,386 |
|
|
|
|
|
|
|
|
|
Capital Ratios |
|
|
|
|
|
|
Total shareholders’ equity to total assets |
|
10.03 |
% |
|
|
10.47 |
% |
|
|
7.82 |
% |
|
Tangible shareholders’ equity to tangible assets(1) |
|
10.03 |
% |
|
|
10.47 |
% |
|
|
7.82 |
% |
|
Total capital (to risk-weighted assets) |
|
13.94 |
% |
|
|
14.38 |
% |
|
|
12.37 |
% |
|
Tier 1 capital (to risk-weighted assets) |
|
10.93 |
% |
|
|
11.27 |
% |
|
|
9.07 |
% |
|
Common equity Tier 1 capital (to risk-weighted assets) |
|
10.93 |
% |
|
|
11.27 |
% |
|
|
9.07 |
% |
|
Tier 1 leverage ratio |
|
10.83 |
% |
|
|
11.05 |
% |
|
|
8.58 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) See the section entitled “Non-GAAP Reconciliation (Unaudited)”
for a reconciliation of this non-GAAP financial measure. |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Reconciliation
(Unaudited)
The Company uses financial information in its
analysis of the Company’s performance that is not in conformity
with accounting principles generally accepted in the United States
of America (“GAAP”). The Company believes that these non-GAAP
financial measures provide useful information to management and
investors that is supplementary to the Company’s financial
condition, results of operations, and cash flows computed in
accordance with GAAP. However, the Company acknowledges that its
non-GAAP financial measures have a number of limitations. As such,
investors should not view these disclosures as a substitute for
results determined in accordance with GAAP. Additionally, these
non-GAAP measures are not necessarily comparable to non-GAAP
financial measures that other banking companies use. Other banking
companies may use names similar to those the Company uses for the
non-GAAP financial measures the Company discloses, but may
calculate them differently. Investors should understand how the
Company and other companies each calculate their non-GAAP financial
measures when making comparisons.
Tangible shareholders’ equity to tangible assets
is defined as total equity less goodwill and other intangible
assets, divided by total assets less goodwill and other intangible
assets. The most directly comparable GAAP financial measure is
total shareholders’ equity to total assets. We had no goodwill or
other intangible assets at the end of any period indicated. As a
result, tangible shareholders’ equity to tangible assets is the
same as total shareholders’ equity to total assets at the end of
each of the periods indicated.
Tangible book value per share is defined as
total shareholders’ equity less goodwill and other intangible
assets, divided by the outstanding number of common shares at the
end of the period. The most directly comparable GAAP financial
measure is book value per share. We had no goodwill or other
intangible assets at the end of any period indicated. As a result,
tangible book value per share is the same as book value per share
at the end of each of the periods indicated.
Pre-tax, pre-provision income is defined as
pre-tax income plus provision for credit losses. The most directly
comparable GAAP financial measure is pre-tax income.
The following reconciliation table provides a
more detailed analysis of this non-GAAP financial measure:
|
|
Three months ended |
|
(in thousands) |
September 30, 2024 |
|
June 30, 2024 |
|
September 30, 2023 |
|
Pre-tax, pre-provision income |
|
|
|
|
|
|
Pre-tax income |
$ |
15,241 |
|
|
$ |
15,152 |
|
|
$ |
15,795 |
|
|
Add: provision for credit losses |
|
2,750 |
|
|
|
2,000 |
|
|
|
1,050 |
|
|
Pre-tax, pre-provision income |
$ |
17,991 |
|
|
$ |
17,152 |
|
|
$ |
16,845 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
Investor Contact: Heather C.
Luck, Chief Financial Officer Five Star Bancorp (916) 626-5008
hluck@fivestarbank.com
Media Contact: Shelley R. Wetton,
Chief Marketing Officer Five Star Bancorp (916) 284-7827
swetton@fivestarbank.com
Five Star Bancorp (NASDAQ:FSBC)
과거 데이터 주식 차트
부터 10월(10) 2024 으로 11월(11) 2024
Five Star Bancorp (NASDAQ:FSBC)
과거 데이터 주식 차트
부터 11월(11) 2023 으로 11월(11) 2024
