Five Star Bancorp (FSBC) Q4 2024 earnings summary

Executive summary

• Achieved strong financial and operational performance in 2024, highlighted by successful San Francisco market expansion and addition of 18 professionals to support growth.

• Net income for Q4 2024 was $13.3 million, up 21.7% sequentially and 23.3% year-over-year; full-year net income was $45.7 million, down 4.3% from 2023.

• Total assets reached $4.1 billion and loans held for investment at $3.5 billion as of December 31, 2024.

• Strong loan and deposit growth, with loans up 14.6% and deposits up 17.6% year-over-year.

• Recognized with multiple industry awards and leadership accolades, reinforcing market presence and reputation.

Financial highlights

• Net income for Q4 was $13.3 million; full-year net income was $45.7 million.

• Net interest margin for Q4 2024 was 3.36%, with full-year NIM at 3.32%, down from 3.42% in the prior year.

• Loans held for investment increased by $72.1 million (2.08%) from the prior quarter and $451 million (14.63%) year-over-year.

• Deposits increased by $158 million (4.65%) in Q4 and $531.1 million (17.55%) year-over-year, reaching $3.6 billion.

• Efficiency ratio improved to 36.90% for 2024, compared to 40.35% in 2023.

Outlook and guidance

• Targeting 8% annual growth in both deposits and loans for 2025, with expectations of slightly increased margins and operating leverage.

• Plans to maintain wholesale deposit and BHG loan books at current levels, with BHG balances targeted around $300 million.

• Q4 expense levels expected to serve as a baseline for the first half of 2025.

• Continued focus on organic growth, disciplined business practices, and expansion in the Bay Area and other regions.

• Management remains focused on disciplined expense management, conservative underwriting, and continued market expansion.