Five Star Bancorp Announces Launch of Common Stock Offering
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The public offering of common stock by Five Star Bancorp represents a strategic move to increase the company's capital base. This action suggests a forward-looking approach by management to strengthen the company's financial position and support expansion initiatives. The decision to grant underwriters a 30-day option for additional shares provides a buffer to potentially raise more funds than initially anticipated, which could indicate a robust demand forecast for the stock.
By engaging reputable financial institutions such as Keefe, Bruyette & Woods, Stephens Inc. and D.A. Davidson & Co., the company is leveraging their networks and expertise to ensure a successful offering. The use of proceeds for 'general corporate purposes' is quite broad, but the specific mention of supporting growth through investments in the Bank suggests that the funds might be used for scaling operations, enhancing technology infrastructure, or pursuing strategic acquisitions. Investors would be interested in how these investments translate into future earnings potential.
The banking sector is highly competitive and Five Star Bancorp's move to raise capital through a public offering is indicative of its growth ambitions. The timing of the offering and the market's reception can significantly impact the company's stock price and investor sentiment. The market will closely watch the subscription levels of the offering as an indicator of investor confidence in Five Star Bancorp's growth prospects.
Additionally, the involvement of well-known co-managers in the offering might inspire confidence among potential investors. However, it is essential to monitor the pricing of the offering, as it may affect the perceived value of the company. A price set too high could deter investors, while a price set too low could undervalue the company and lead to potential losses for existing shareholders.
The broader economic context in which Five Star Bancorp is launching its public offering is important for understanding potential market behavior. Factors such as interest rate trends, regulatory changes and economic indicators play a significant role in the banking sector's performance. An offering's success can be influenced by these macroeconomic factors, which can either boost investor confidence or lead to heightened caution.
From an economic standpoint, the additional capital raised could enable Five Star Bancorp to better navigate economic cycles and invest in areas that promise higher returns. However, the company's management must carefully balance the growth opportunities against the cost of capital to ensure shareholder value is not diluted in the process.
RANCHO CORDOVA, Calif., March 27, 2024 (GLOBE NEWSWIRE) -- Five Star Bancorp (Nasdaq: FSBC) (“Five Star” or the “Company”), a holding company that operates through its wholly owned banking subsidiary, Five Star Bank (the “Bank”), announced today that it has launched an underwritten public offering of shares of its common stock. The Company intends to grant the underwriters a 30-day option to purchase additional shares of its common stock.
Keefe, Bruyette & Woods, A Stifel Company is serving as the bookrunner for the offering, and Stephens Inc. and D.A. Davidson & Co. are acting as co-managers.
The Company intends to use the net proceeds of this offering for general corporate purposes and to support its continued growth, including through investments in the Bank to pursue growth opportunities, and for working capital.
Additional Information Regarding the Offering
The offering of common stock is being made pursuant to a registration statement on Form S-3 (File No. 333-269533) that was declared effective by the Securities and Exchange Commission (the “SEC”) on February 13, 2023. A preliminary prospectus supplement to which this communication relates has been filed with the SEC. Prospective investors should read the preliminary prospectus supplement and the accompanying prospectus and other documents the Company has filed with the SEC for more complete information about the Company and the offering. Copies of these documents are available at no charge by visiting the SEC’s website at www.sec.gov. When available, copies of the preliminary prospectus supplement, the prospectus supplement and accompanying prospectus related to the offering may be obtained by contacting Keefe, Bruyette & Woods, A Stifel Company by telephone at (800) 966-1559 or by e-mail at USCapitalMarkets@kbw.com.
No Offer or Solicitation
This press release does not constitute an offer to sell, a solicitation of an offer to sell, or the solicitation of an offer to buy any securities. There will be no sale of securities in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
About Five Star Bancorp
Five Star is a bank holding company headquartered in Rancho Cordova, California. Five Star operates through its wholly owned banking subsidiary, Five Star Bank. The Bank has seven branches in Northern California.
Special Note Concerning Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent plans, estimates, objectives, goals, guidelines, expectations, intentions, projections, and statements of the Company’s beliefs concerning future events, business plans, objectives, expected operating results, and the assumptions upon which those statements are based. Forward-looking statements include without limitation, any statement that may predict, forecast, indicate, or imply future results, performance, or achievements, and are typically identified with words such as “may”, “could”, “should”, “will”, “would”, “believe”, “anticipate”, “estimate”, “expect”, “aim”, “intend”, “plan” or words or phases of similar meaning. The Company cautions that the forward-looking statements are based largely on the Company’s expectations and are subject to a number of known and unknown risks and uncertainties that are subject to change based on factors which are, in many instances, beyond the Company’s control. Such forward-looking statements are based on various assumptions (some of which may be beyond the Company’s control) and are subject to risks and uncertainties, which change over time, and other factors, which could cause actual results to differ materially from those currently anticipated. New risks and uncertainties may emerge from time to time, and it is not possible for the Company to predict their occurrence or how they will affect the Company. If one or more of the factors affecting the Company’s forward-looking information and statements proves incorrect, then the Company’s actual results, performance, or achievements could differ materially from those expressed in, or implied by, forward-looking information and statements contained in this press release. Therefore, the Company cautions you not to place undue reliance on the Company’s forward-looking information and statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements are set forth in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 under the section entitled “Risk Factors,” and other documents filed by the Company with the SEC from time to time.
The Company disclaims any duty to revise or update the forward-looking statements, whether written or oral, to reflect actual results or changes in the factors affecting the forward-looking statements, except as specifically required by law.
Investor Contact:
Heather C. Luck, Chief Financial Officer
Five Star Bancorp
(916) 626-5008
hluck@fivestarbank.com
Media Contact:
Shelley R. Wetton, Chief Marketing Officer
Five Star Bancorp
(916) 284-7827
swetton@fivestarbank.com
