Five Star Bancorp (FSBC) Q2 2025 earnings summary

Executive summary

• Net income for Q2 2025 was $14.5 million, up from $13.1 million in Q1 2025 and $10.8 million in Q2 2024, reflecting strong organic growth in loans and deposits and continued expansion in Northern California and the Bay Area.

• Marked 25th anniversary with a focus on commercial real estate, diversified lending, and new verticals such as food and agribusiness, with a new Walnut Creek office opening planned.

• Recognized among top-performing community banks nationally, with multiple industry awards for growth, leadership, and community impact.

• Bay Area team expanded to 34 employees and $456.9 million in deposits, with business development officers increasing to 40.

Financial highlights

• Net income of $14.5 million and EPS of $0.68 for Q2 2025, with net interest income at $36.5 million, up 25.52% year-over-year.

• Net interest margin expanded to 3.53% from 3.39% in Q2 2024; efficiency ratio improved to 41.03% from 44.07% year-over-year.

• ROAA was 1.37% and ROAE was 14.17% for Q2 2025.

• Total assets reached $4.4 billion, loans held for investment $3.8 billion, and deposits $3.9 billion as of June 30, 2025.

• Non-interest income for Q2 2025 was $1.8 million, up sequentially, driven by venture-backed fund investments.

Outlook and guidance

• Management expects 10%-12% balance sheet growth for full year 2025, supported by strong loan and deposit pipelines and continued Bay Area expansion.

• All capital ratios remain above well-capitalized regulatory thresholds, supporting continued growth and organic expansion in core markets and verticals.

• Forecasting an effective tax rate of about 26.65% for the remainder of 2025 and evaluating the impact of recent federal tax law changes.