Five Star Bancorp (FSBC) Q4 2025 earnings summary

Executive summary

• Achieved strong year-over-year growth in loans (15%), deposits (18%), net income (35%), and EPS (28%) for 2025, reaching $4.8 billion in assets, 9 branches, and over 230 employees.

• Celebrated 25th anniversary, recognized among top-performing community banks nationally with multiple industry awards in 2024 and 2025.

• Expanded market presence with a new Walnut Creek office, added 10-12 business development professionals, and grew the Agribusiness vertical.

Financial highlights

• Q4 2025 net income was $17.6M, EPS $0.83, ROAA 1.50%, ROAE 15.97%, and net interest margin 3.66%; full-year net income reached $61.6M, EPS $2.90, ROAA 1.41%, ROAE 14.74%, and net interest margin 3.55%.

• Loans held for investment grew by $542.2M (15%) and total deposits by $643.1M (18%) year-over-year, with total assets at $4.8B.

• Efficiency ratio improved to 41.03% for 2025 from 43.19% in 2024.

• Non-interest income for 2025 was $6.5M, while non-interest expense rose to $65.0M.

• Non-performing loans remained low at 0.08% of total loans at year-end 2025.

Outlook and guidance

• Projecting 10% growth in both loans and deposits for 2026, with expectations to maintain capital ratios and profitability.

• Expense ratio targeted at 1.48%-1.55% of average assets for 2026.

• Plans to continue expanding verticals and markets in 2026, focusing on high-tech, high-touch client service and conservative underwriting.

• Loan pipeline remains strong entering 2026, with continued focus on core deposit growth and reduction of wholesale funding.