Five Star Bancorp (FSBC) Q4 2023 earnings summary

Executive summary

• FY 2023 net income rose to $47.7M from $44.8M; Q4 net income was $10.8M, versus $11.0M in Q3 and $13.3M in Q4 2022.

• Loan growth and San Francisco Bay Area expansion supported organic growth, while higher deposit costs pressured quarterly net interest income and margin.

Financial highlights

• Q4 net interest income was $26.7M, down $0.8M QoQ and $2.5M YoY; FY net interest income rose to $110.9M from $103.1M.

• Total assets reached $3.593B; loans held for investment were $3.08B and deposits were $3.03B at year-end, up 10.40% and 8.80% YoY, respectively.

• FY diluted EPS was $2.78, up from $2.61; Q4 diluted EPS was $0.63, versus $0.64 in Q3 and $0.77 in Q4 2022.

• FY pre-tax, pre-provision income was $70.6M versus $69.6M in 2022; FY noninterest income was $7.5M and noninterest expense was $47.8M, versus $7.2M and $40.7M in 2022.

Outlook and guidance

• Expected Federal Reserve rate cuts in 2024 may benefit the slightly liability-sensitive balance sheet as the rising-rate environment ends.

• Growth plans emphasize organic deposit gathering in the Sacramento Capital Region, North State and San Francisco Bay Area, alongside expense management and conservative underwriting.