Five Star Bancorp (FSBC) Q4 2021 earnings summary

Executive summary

• 2021 was a record year, with net income of $42.4 million, assets up 30.9% YoY, and strong loan and deposit growth; the May IPO raised $111.2 million net.

• Growth remained centered on organic expansion across Northern California, supported by specialized business banking and investments in technology, people and new products.

Financial highlights

• Net income was $42.441 million, up 18.1% YoY; income before taxes was $47.148 million versus $37.255 million in 2020.

• Net interest income was $77.611 million versus $65.210 million; net interest income after provision was $75.911 million versus $56.210 million.

• Total assets reached $2.557 billion, up $603.0 million or 30.9% YoY; loans held for investment, net, were $1.911 billion.

• Deposits were $2.286 billion, up $501.9 million or 28.1%; noninterest-bearing deposits were 39.5% of total deposits at year-end.

• Basic and diluted EPS were both $2.83 versus $3.57 in 2020; 2021 results included increased taxes following conversion to a C corporation.

Outlook and guidance

• 2022 priorities include continued organic growth, investment in people and processes, digital transformation, technology innovation and further development of business verticals.

• Management anticipated continued economic improvement while keeping asset quality a primary objective.