Five Star Bancorp Announces Third Quarter 2026 Results

Net interest income rose 29.42% year over year, while the common-stock offering increased the share count.

Rhea-AI Summary

Five Star Bancorp (Nasdaq: FSBC) reported third-quarter 2026 net income of $21.9 million, up from the prior quarter and year. Basic and diluted earnings per share were $0.92, versus $0.91 in the second quarter and $0.77 a year earlier. Net interest income reached $50.926 million, up 10.51% sequentially and 29.42% year over year; net interest margin rose to 3.69%.

A common-stock offering raised approximately $130.0 million net through 3,133,750 new shares. The common equity Tier 1 capital ratio increased to 12.52% from 9.97% in June. Loans grew 4.08% sequentially to $4.704215 billion, while deposits rose 0.52% to $4.824528 billion. Nonperforming loans fell to 0.28% of loans from 0.30%. Non-interest expense increased 24.19% year over year, and return on average equity declined. An additional $0.25 dividend is expected November 9, 2026, for holders of record November 2.

16 points · 0 major

PositiveiHow this balance works

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

0 major · 11 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointNet income of $21.909 million increased 12.94% sequentially and 34.05% year over year in third-quarter 2026.
• Moderate pointBasic and diluted EPS of $0.92 rose from $0.91 sequentially and $0.77 year over year.
• Moderate pointNet interest income of $50.926 million increased 10.51% sequentially and 29.42% year over year.
• Moderate pointNet interest margin of 3.69% improved from 3.63% sequentially and 3.56% year over year.
• Moderate pointApproximately $130.0 million net proceeds from the completed common-stock offering strengthened capital. 12% of market cap
• Moderate pointCommon equity Tier 1 capital ratio of 12.52% rose from 9.97% in June; the Bank remained well-capitalized.
• Moderate pointLoans of $4.704215 billion grew 4.08% sequentially and 21.02% year over year.
• Moderate pointNon-interest-bearing deposits of $1.210488 billion rose 3.07% sequentially and 14.30% year over year.
• Moderate pointEfficiency ratio of 39.13% improved from 40.91% sequentially and 40.13% year over year.
• Moderate pointReturn on average assets of 1.55% increased from 1.49% sequentially and 1.44% year over year.

6 minor points

• Minor pointNon-wholesale deposits increased $75.1 million, or 1.65%, during the third quarter.
• Minor pointNonperforming loans fell to 0.28% of loans at September 30, from 0.30% at June 30.
• Minor pointTotal cost of funds of 2.25% fell from 2.51% year over year but rose from 2.23% sequentially.
• Minor pointInsured and collateralized deposits represented 68.08% of deposits at September 30, versus 65.80% at June 30.
• Minor pointNet uninsured and uncollateralized deposits decreased to approximately $1.5 billion from $1.6 billion at June 30.
• Minor point. Forward-looking: it has not happened yet and may not happen.$0.25-per-share dividend was $0.05 above dividends declared in 2025; another $0.25 payment is expected November 9.

Negative

• Moderate point3,133,750 new common shares issued in the offering diluted existing holders.
• Moderate pointNon-interest expense of $20.591 million increased 4.97% sequentially and 24.19% year over year.
• Moderate pointReturn on average equity of 15.04% declined from 16.67% sequentially and 15.35% year over year.
• Minor pointOffering costs included approximately $7.3 million in underwriting discounts and commissions and approximately $0.6 million in expenses.
• Minor pointNon-interest income of $1.694 million declined 9.51% sequentially and 13.84% year over year.

6 minor points

• Minor pointCredit-loss provision of $2.5 million rose 11.11% sequentially and was unchanged year over year.
• Minor pointOther comprehensive loss of $3.0 million compared with income of $0.7 million sequentially and $2.1 million year over year.
• Minor pointAfter-tax unrealized securities losses of $12.4 million increased from $9.4 million in June and $9.9 million a year earlier.
• Minor pointCash and cash equivalents of $679.482 million declined 0.82% from June 30.
• Minor pointWholesale deposits decreased $50.0 million, or 20.00%, during the third quarter.
• Minor pointInterest-bearing deposits of $3.614040 billion fell 0.30% sequentially, although they increased 18.71% year over year.

News Explained

The completed third-quarter offering increased weighted-average basic shares 11.03% versus the second quarter, while basic EPS rose $0.01; issuing shares reduces existing holders’ percentage ownership.

Key Figures

Net income: $21.909 million Basic EPS: $0.92 per share Net interest income: $50.926 million +5 more

Net income

$21.909 million

Q3 2026; up 12.94% from Q2 2026

Basic EPS

$0.92 per share

Q3 2026; up $0.01 from Q2 2026

Net interest income

$50.926 million

Q3 2026; up 10.51% from Q2 2026

Net interest margin

3.69%

Q3 2026; up six basis points from Q2 2026

Loans held for investment

Up $184.534 million, or 4.08%

Q3 2026 compared with June 30, 2026

Public offering shares

3,133,750 common shares

Underwritten public offering completed during Q3 2026

Common equity Tier 1 capital ratio

12.52%

September 30, 2026; compared with 9.97% at June 30, 2026

Cash dividend

$0.25 per share

Declared October 15, 2026; $0.05 more than dividends declared in 2025

Previous Earnings Reports

2 past events · Latest: Jul 22

Same Type 2 events

1. Jul 22

   Q2 earnings

   24h Move

   -2.1%

   Net income was $19.4M, EPS was $0.91, and net interest margin was 3.63%.

2. Oct 27

   Q3 earnings

   24h Move

   +4.6%

   Net income was $16.3M, EPS was $0.77, and net interest margin was 3.56%.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

cecl, common equity tier 1 capital ratio, underwritten public offering, available-for-sale securities

4 terms

cecl financial

"annual Current Expected Credit Loss (“CECL”) model refresh"

An accounting standard that requires banks and other lenders to estimate and record expected credit losses for loans and similar financial assets up front, based on historical experience, current conditions and reasonable forecasts. It matters to investors because it changes how much a firm must set aside as a loss reserve, which directly affects reported profits, capital levels and perceived financial strength—think of it as stocking a reserve for future bad loans before the rain starts.

common equity tier 1 capital ratio financial

"a common equity Tier 1 capital ratio of 12.52%"

A bank’s common equity tier 1 (CET1) capital ratio measures the size of its strongest loss-absorbing capital—mainly common shares and retained earnings—relative to the bank’s assets after adjusting those assets for how risky they are (riskier loans count more). Think of it as the safety cushion compared with the weight of risky business; investors use it to judge a bank’s ability to survive losses, meet rules, and sustain dividends or growth.

underwritten public offering financial

"through an underwritten public offering of 3,133,750 shares"

An underwritten public offering is when a company sells new shares of its stock to the public with the help of a financial firm, called an underwriter. The underwriter agrees to buy all the shares upfront, reducing the company's risk, and then sells them to investors. This process helps companies raise money quickly and confidently from a wide range of buyers.

available-for-sale securities financial

"Unrealized losses, net of tax effect, on available-for-sale securities"

Available-for-sale securities are investments in stocks, bonds or similar instruments that a company does not intend to trade frequently but may sell before they mature. They matter to investors because changes in the market value of these holdings show up as paper gains or losses on the company's balance sheet rather than immediately in profit, so they can affect reported net worth and the timing of income without changing day-to-day earnings. Think of them like items on a household shelf you might sell later: their value moves with the market even if you haven’t cashed out.

AI-generated analysis. How Rhea-AI works. Not financial advice.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

RANCHO CORDOVA, Calif., Oct. 26, 2026 (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”), today reported net income of $21.9 million for the three months ended September 30, 2026, as compared to $19.4 million for the three months ended June 30, 2026 and $16.3 million for the three months ended September 30, 2025.

Third Quarter Highlights

Performance and operating highlights for the Company for the periods noted below included the following:

	Three months ended
(in thousands, except per share and share data)	September 30, 2026				June 30, 2026				September 30, 2025
Return on average assets (“ROAA”)		1.55	%			1.49	%			1.44	%
Return on average equity (“ROAE”)		15.04	%			16.67	%			15.35	%
Pre-tax income	$	29,529			$	26,089			$	22,234
Pre-tax, pre-provision income(1)	$	32,029			$	28,339			$	24,734
Net income	$	21,909			$	19,399			$	16,344
Basic earnings per common share	$	0.92			$	0.91			$	0.77
Diluted earnings per common share	$	0.92			$	0.91			$	0.77
Weighted average basic common shares outstanding		23,620,369				21,273,902				21,231,563
Weighted average diluted common shares outstanding		23,697,397				21,338,903				21,281,818
Shares outstanding at end of period		24,536,614				21,402,864				21,367,387

⁽¹⁾ See the section entitled “Non-GAAP Reconciliation (Unaudited)” for a reconciliation of this non-GAAP financial measure.

James E. Beckwith, President and Chief Executive Officer, commented:

“In the third quarter of 2026, Five Star raised approximately $130.0 million in net proceeds through an underwritten public offering of 3,133,750 shares of common stock, expanding our capacity for organic growth and strategic investment. We also strengthened our California presence with the opening of a new branch in Lodi, a new Calabasas administrative office, and four key hires in Palo Alto, bringing our high-tech, high-touch relationship-based banking experience to more clients.

The third quarter of 2026 delivered steadfast results: net income rose to $21.9 million from $19.4 million in the second quarter of 2026, and net interest income increased $4.8 million, or 11%, to $50.9 million compared to the same period. Net interest margin improved six basis points to 3.69%, the efficiency ratio improved to 39.13% from 40.91% in the second quarter of 2026, and basic earnings per share reached $0.92, up $0.01 from the second quarter of 2026 and $0.15 from the third quarter of 2025.

Total loans held for investment grew $184.5 million, or 4% (approximately 16% annualized), while non-wholesale deposits increased $75.1 million, or 2% (approximately 7% annualized) and wholesale deposits decreased $50.0 million, or 20% (approximately 80% annualized). We also declared a $0.25 per share cash dividend, $0.05 more than those declared in 2025, reinforcing our commitment to shareholder value.

Five Star Bank’s success reflects the strength of our team and the value of authentic, relationship-based service. Our technology, operating discipline, conservative underwriting, strong credit quality, and prudent portfolio management position us to create lasting value for customers, employees, communities, and shareholders. We thank our employees for keeping Five Star Bank a safe, trusted, and steadfast banking partner as we enter the fourth quarter of 2026.”

Financial highlights as of and during the three months ended September 30, 2026 included the following:

• The Company completed an underwritten public offering of 3,133,750 shares of common stock during the three months ended September 30, 2026, with net proceeds of approximately $130.0 million after deducting underwriting discounts and commissions of approximately $7.3 million, and offering expenses of approximately $0.6 million. The transaction strengthened the Company’s capital base and positioned it for continued organic balance sheet growth, with a common equity Tier 1 capital ratio of 12.52% as of September 30, 2026, as compared to 9.97% as of June 30, 2026. The Bank continues to meet all requirements to be considered “well-capitalized” under applicable regulatory guidelines.
• Basic earnings per share reached $0.92 for the three months ended September 30, 2026, an increase of $0.01 from the second quarter of 2026. Weighted average basic common shares outstanding for the three months ended September 30, 2026 increased by 2,346,467, or 11.03%, as compared to the second quarter of 2026 due to the underwritten public offering. As compared to the three months ended September 30, 2025, basic earnings per share increased $0.15, while weighted average basic common shares outstanding increased by 2,388,806, or 11.25%, as compared to the third quarter of 2025 due to the underwritten public offering.
• Total deposits increased by $25.1 million, or 0.52%, during the three months ended September 30, 2026, with growth in non-wholesale deposits exceeding declines in wholesale deposits. The Company defines wholesale deposits as brokered deposits and California Time Deposit Program deposits. During the three months ended September 30, 2026, non-wholesale deposits increased by $75.1 million, or 1.65%, and wholesale deposits decreased by $50.0 million, or 20.00%.
• The number of Business Development Officers increased from 45 at June 30, 2026 to 50 at September 30, 2026.
• Cash and cash equivalents were $679.5 million, representing 14.08% of total deposits at September 30, 2026, as compared to 14.27% at June 30, 2026.
• Consistent, disciplined management of expenses contributed to our efficiency ratio of 39.13% for the three months ended September 30, 2026, as compared to 40.91% for the three months ended June 30, 2026 and 40.13% for the three months ended September 30, 2025.
• Net interest margin for the three months ended September 30, 2026 expanded six basis points to 3.69% from 3.63% for the three months ended June 30, 2026, primarily reflecting growth in higher-yielding loans and an increase in the yield on interest-earning assets, partially offset by higher deposit funding costs. On a year-over-year basis, net interest margin expanded 13 basis points from 3.56% for the three months ended September 30, 2025 to 3.69% for the three months ended September 30, 2026, supported by balance sheet growth and lower deposit funding costs following three Federal Reserve rate cuts that began in September 2025, partially offset by lower yields on interest-earning assets. The effective federal funds rate declined 21 basis points, from 4.09% as of September 30, 2025 to 3.88% as of September 30, 2026.
• Other comprehensive loss was $3.0 million during the three months ended September 30, 2026, as compared to other comprehensive income of $0.7 million for the three months ended June 30, 2026 and other comprehensive income of $2.1 million for the three months ended September 30, 2025. Unrealized losses, net of tax effect, on available-for-sale securities were $12.4 million as of September 30, 2026, as compared to $9.4 million as of June 30, 2026 and $9.9 million as of September 30, 2025. Total carrying value of held-to-maturity and available-for-sale securities represented 0.04% and 1.52% of total interest-earning assets, respectively, as of September 30, 2026.
• Loan and deposit growth as of the dates provided below was as follows:
  
  

(in thousands)	September 30, 2026			June 30, 2026			$ Change				% Change
Loans held for investment	$	4,704,215		$	4,519,681		$	184,534			4.08	%
Non-interest-bearing deposits		1,210,488			1,174,406			36,082			3.07	%
Interest-bearing deposits		3,614,040			3,624,977			(10,937	)		(0.30	)%
(in thousands)	September 30, 2026			September 30, 2025			$ Change				% Change
Loans held for investment	$	4,704,215		$	3,887,259		$	816,956			21.02	%
Non-interest-bearing deposits		1,210,488			1,059,082			151,406			14.30	%
Interest-bearing deposits		3,614,040			3,044,356			569,684			18.71	%

• The ratio of nonperforming loans to loans held for investment at period end decreased from 0.30% at June 30, 2026 to 0.28% at September 30, 2026.
• The Company’s Board of Directors declared, and the Company subsequently paid, a cash dividend of $0.25 per share during the three months ended September 30, 2026. The Company’s Board of Directors declared an additional cash dividend of $0.25 per share on October 15, 2026, which the Company expects to pay on November 9, 2026 to shareholders of record as of November 2, 2026.
  
  

Summary Results

Three months ended September 30, 2026, as compared to three months ended June 30, 2026

The Company’s net income was $21.9 million for the three months ended September 30, 2026, as compared to $19.4 million for the three months ended June 30, 2026. Net interest income increased by $4.8 million during the three months ended September 30, 2026, as compared to the three months ended June 30, 2026, primarily reflecting growth in higher-yielding loans and an increase in the yield on interest-earning assets, partially offset by higher deposit funding costs. The provision for credit losses increased by $0.3 million during the three months ended September 30, 2026, as compared to the three months ended June 30, 2026, reflecting loan growth and changes resulting from the annual Current Expected Credit Loss (“CECL”) model refresh. Non-interest income decreased by $0.2 million during the three months ended September 30, 2026, as compared to the three months ended June 30, 2026, primarily due to an overall decline in earnings related to investments in venture-backed funds and lower loan referral income, partially offset by a special FHLB stock dividend. Non-interest expense increased by $1.0 million during the three months ended September 30, 2026, as compared to the three months ended June 30, 2026, primarily due to higher salaries and employee benefits from increased headcount and increased recruiter fees, partially offset by decreases in employee-related expenses, advertising and promotional expenses, and operational losses.

Three months ended September 30, 2026, as compared to three months ended September 30, 2025

The Company’s net income was $21.9 million for the three months ended September 30, 2026, as compared to $16.3 million for the three months ended September 30, 2025. Net interest income increased by $11.6 million during the three months ended September 30, 2026, as compared to the three months ended September 30, 2025, primarily reflecting balance sheet growth and lower deposit funding costs following three Federal Reserve rate cuts that began in September 2025, partially offset by lower yields on interest-earning assets. The provision for credit losses remained constant, reflecting loan growth and changes resulting from the annual CECL model refresh, offset by a decrease in the provision for unfunded commitments. Non-interest income decreased by $0.3 million during the three months ended September 30, 2026, as compared to the three months ended September 30, 2025, primarily reflecting lower fees from swap referrals and an overall decline in earnings related to investments in venture-backed funds. Non-interest expense increased by $4.0 million during the three months ended September 30, 2026, as compared to the three months ended September 30, 2025, driven primarily by higher salaries and employee benefits from increased headcount, along with growth in other operating expenses reflecting continued organizational expansion.

The following is a summary of the components of the Company’s operating results and performance ratios for the periods indicated:

	Three months ended
(in thousands, except per share data)	September 30, 2026				June 30, 2026				$ Change				% Change
Selected operating data:
Net interest income	$	50,926			$	46,083			$	4,843			10.51	%
Provision for credit losses		2,500				2,250				250			11.11	%
Non-interest income		1,694				1,872				(178	)		(9.51	)%
Non-interest expense		20,591				19,616				975			4.97	%
Pre-tax income		29,529				26,089				3,440			13.19	%
Provision for income taxes		7,620				6,690				930			13.90	%
Net income	$	21,909			$	19,399			$	2,510			12.94	%
Earnings per common share:
Basic	$	0.92			$	0.91			$	0.01			1.10	%
Diluted	$	0.92			$	0.91			$	0.01			1.10	%
Performance and other financial ratios:
ROAA		1.55	%			1.49	%
ROAE		15.04	%			16.67	%
Net interest margin		3.69	%			3.63	%
Total cost of funds(1)		2.25	%			2.23	%
Efficiency ratio		39.13	%			40.91	%

	Three months ended
(in thousands, except per share data)	September 30, 2026				September 30, 2025				$ Change				% Change
Selected operating data:
Net interest income	$	50,926			$	39,348			$	11,578			29.42	%
Provision for credit losses		2,500				2,500				—			—	%
Non-interest income		1,694				1,966				(272	)		(13.84	)%
Non-interest expense		20,591				16,580				4,011			24.19	%
Pre-tax income		29,529				22,234				7,295			32.81	%
Provision for income taxes		7,620				5,890				1,730			29.37	%
Net income	$	21,909			$	16,344			$	5,565			34.05	%
Earnings per common share:
Basic	$	0.92			$	0.77			$	0.15			19.48	%
Diluted	$	0.92			$	0.77			$	0.15			19.48	%
Performance and other financial ratios:
ROAA		1.55	%			1.44	%
ROAE		15.04	%			15.35	%
Net interest margin		3.69	%			3.56	%
Total cost of funds(1)		2.25	%			2.51	%
Efficiency ratio		39.13	%			40.13	%

⁽¹⁾ Total cost of funds reflects the average cost of all funding sources, including both interest-bearing and non-interest-bearing deposits and borrowings.

Balance Sheet Summary

(in thousands)	September 30, 2026			June 30, 2026			$ Change				% Change
Selected financial condition data:
Total assets	$	5,559,618		$	5,377,062		$	182,556			3.40	%
Cash and cash equivalents		679,482			685,074			(5,592	)		(0.82	)%
Total loans held for investment		4,704,215			4,519,681			184,534			4.08	%
Total investments		84,158			92,719			(8,561	)		(9.23	)%
Total liabilities		4,942,407			4,903,291			39,116			0.80	%
Total deposits		4,824,528			4,799,383			25,145			0.52	%
Subordinated notes, net		74,150			74,114			36			0.05	%
Total shareholders’ equity		617,211			473,771			143,440			30.28	%

• Insured and collateralized deposits were approximately $3.3 billion, representing 68.08% of total deposits as of September 30, 2026, as compared to 65.80% as of June 30, 2026. Net uninsured and uncollateralized deposits were approximately $1.5 billion as of September 30, 2026, decreasing from $1.6 billion at June 30, 2026.
• Non-wholesale deposit balances constituted 95.85% of total deposits as of September 30, 2026, as compared to 94.79% as of June 30, 2026. Deposit relationships of greater than $5 million represented 62.44% of total deposits as of September 30, 2026, as compared to 63.88% as of June 30, 2026, and had an average age of approximately 7.45 years as of September 30, 2026, as compared to 7.39 years as of June 30, 2026.
• Total deposits as of September 30, 2026 were $4.8 billion, an increase of $25.1 million, or 0.52%, from June 30, 2026, comprised of an increase in non-interest-bearing deposits, partially offset by a decrease in interest-bearing deposits.
• Cash and cash equivalents as of September 30, 2026 were $679.5 million, representing 14.08% of total deposits at September 30, 2026, as compared to 14.27% as of June 30, 2026.
• Total liquidity (consisting of cash and cash equivalents as well as unused and immediately available borrowing capacity as set forth below) was approximately $2.5 billion as of September 30, 2026, as compared to $2.3 billion at June 30, 2026.
  
  

	September 30, 2026
(in thousands)	Line of Credit			Letters of Credit Issued			Borrowings			Available
Federal Home Loan Bank of San Francisco (“FHLB”) advances	$	1,714,154		$	1,162,000		$	—		$	552,154
Federal Reserve Discount Window		1,110,142			—			—			1,110,142
Correspondent bank lines of credit		185,000			—			—			185,000
Cash and cash equivalents		—			—			—			679,482
Total	$	3,009,296		$	1,162,000		$	—		$	2,526,778

(in thousands)	September 30, 2026			December 31, 2025			$ Change				% Change
Selected financial condition data:
Total assets	$	5,559,618		$	4,754,861		$	804,757			16.92	%
Cash and cash equivalents		679,482			506,851			172,631			34.06	%
Total loans held for investment		4,704,215			4,074,929			629,286			15.44	%
Total investments		84,158			96,889			(12,731	)		(13.14	)%
Total liabilities		4,942,407			4,309,029			633,378			14.70	%
Total deposits		4,824,528			4,201,084			623,444			14.84	%
Subordinated notes, net		74,150			74,041			109			0.15	%
Total shareholders’ equity		617,211			445,832			171,379			38.44	%

The increase in total assets from December 31, 2025 to September 30, 2026 was primarily comprised of a $629.3 million increase in total loans held for investment and a $172.6 million increase in cash and cash equivalents. The $629.3 million increase in total loans held for investment between December 31, 2025 and September 30, 2026 was a result of $1.6 billion in loan originations and advances, partially offset by $304.5 million and $633.2 million in loan payoffs and paydowns, respectively. The $629.3 million increase in total loans held for investment included $230.7 million in purchased loans within the consumer section of the loan portfolio. The $172.6 million increase in cash and cash equivalents primarily resulted from $130.0 million in net proceeds from the underwritten public offering (after deducting underwriting discounts and commissions of approximately $7.3 million, and offering expenses of approximately $0.6 million), $59.9 million in net income, and $623.4 million in deposit growth, partially offset by $629.3 million in cash outflows to fund growth in total loans held for investment.

The increase in total liabilities from December 31, 2025 to September 30, 2026 was primarily due to an increase in deposits of $623.4 million. The increase in deposits was largely due to increases in money market, non-interest-bearing, and interest-bearing transaction deposits of $712.6 million, $126.0 million, and $71.5 million, respectively, partially offset by a $296.8 million decrease in time deposits, mainly attributable to a $265.0 million decline in wholesale deposits.

The increase in total shareholders’ equity from December 31, 2025 to September 30, 2026 was primarily a result of $130.0 million of additional common stock outstanding and $59.9 million recognized as net income during the period, partially offset by $16.8 million in cash dividends paid during the period and a $3.2 million increase in accumulated other comprehensive loss.

Net Interest Income and Net Interest Margin

The following is a summary of the components of net interest income for the periods indicated:

	Three months ended
(in thousands)	September 30, 2026				June 30, 2026				$ Change			% Change
Interest and fee income	$	79,174			$	72,327			$	6,847		9.47	%
Interest expense		28,248				26,244				2,004		7.64	%
Net interest income	$	50,926			$	46,083			$	4,843		10.51	%
Net interest margin		3.69	%			3.63	%
	Three months ended
(in thousands)	September 30, 2026				September 30, 2025				$ Change			% Change
Interest and fee income	$	79,174			$	64,845			$	14,329		22.10	%
Interest expense		28,248				25,497				2,751		10.79	%
Net interest income	$	50,926			$	39,348			$	11,578		29.42	%
Net interest margin		3.69	%			3.56	%

The following table shows the components of net interest income and net interest margin for the quarterly periods indicated:

	Three months ended
	September 30, 2026									June 30, 2026									September 30, 2025
(in thousands)	Average Balance			Interest Income/ Expense			Yield/ Rate			Average Balance			Interest Income/ Expense			Yield/ Rate			Average Balance			Interest Income/ Expense			Yield/ Rate
Assets
Interest-earning deposits in banks	$	772,887		$	7,286		3.74	%		$	677,149		$	6,253		3.70	%		$	451,534		$	5,009		4.40	%
Investment securities		90,174			496		2.18	%			93,553			509		2.18	%			96,806			579		2.38	%
Loans held for investment and sale		4,612,608			71,392		6.14	%			4,328,304			65,565		6.08	%			3,831,851			59,257		6.14	%
Total interest-earning assets		5,475,669			79,174		5.74	%			5,099,006			72,327		5.69	%			4,380,191			64,845		5.87	%
Interest receivable and other assets, net		120,299									123,354									110,118
Total assets	$	5,595,968								$	5,222,360								$	4,490,309
Liabilities and shareholders’ equity
Interest-bearing transaction accounts	$	433,005		$	1,782		1.63	%		$	389,136		$	1,297		1.34	%		$	300,642		$	1,194		1.58	%
Savings accounts		150,815			940		2.47	%			143,818			844		2.35	%			130,973			895		2.71	%
Money market accounts		2,829,499			21,729		3.05	%			2,556,482			19,318		3.03	%			1,874,089			15,348		3.25	%
Time accounts		282,857			2,636		3.70	%			396,923			3,623		3.66	%			639,434			6,899		4.28	%
Subordinated notes and other borrowings		74,127			1,161		6.22	%			74,091			1,162		6.29	%			73,981			1,161		6.23	%
Total interest-bearing liabilities		3,770,303			28,248		2.97	%			3,560,450			26,244		2.96	%			3,019,119			25,497		3.35	%
Demand accounts		1,212,088									1,163,991									1,016,560
Interest payable and other liabilities		35,691									31,140									32,210
Shareholders’ equity		577,886									466,779									422,420
Total liabilities & shareholders’ equity	$	5,595,968								$	5,222,360								$	4,490,309
Net interest spread							2.77	%								2.73	%								2.52	%
Net interest income/margin				$	50,926		3.69	%					$	46,083		3.63	%					$	39,348		3.56	%

Net interest income during the three months ended September 30, 2026 increased by $4.8 million, or 10.51%, to $50.9 million, as compared to $46.1 million during the three months ended June 30, 2026. Net interest margin totaled 3.69% for the three months ended September 30, 2026, an increase of six basis points compared to the prior quarter, primarily reflecting growth in higher-yielding loans and an increase in the yield on interest-earning assets, partially offset by higher deposit funding costs. The $4.8 million increase in net interest income is primarily attributable to a $376.7 million, or 7.39%, increase in average interest-earning assets. The average balance of loans increased $284.3 million, or 6.57%, and the average balance of interest-earning deposits in banks increased $95.7 million, or 14.14%. The average yield on interest-earning assets increased five basis points to 5.74%, including a six-basis-point increase in the average loan yield to 6.14%. The increase in interest income was partially offset by a $2.0 million increase in interest expense. The average balance of deposits increased $257.9 million, or 5.55%, combined with a three-basis-point increase in the average cost of deposits. The average balance of non-interest bearing deposits increased $48.1 million, or 4.13%, helping to partially offset the rise in deposit funding costs.

As compared to the three months ended September 30, 2025, net interest income during the three months ended September 30, 2026 increased by $11.6 million, or 29.42%, to $50.9 million from $39.3 million. Net interest margin totaled 3.69% for the three months ended September 30, 2026, an increase of 13 basis points compared to the same quarter of the prior year. The increase primarily reflected balance sheet growth and lower deposit funding costs following three Federal Reserve rate cuts that began in September 2025, partially offset by lower yields on interest-earning assets. The increase in net interest income is primarily attributable to a $14.3 million increase in interest income, mainly due to a $780.8 million, or 20.38%, increase in the average balance of loans and a $321.4 million, or 71.17%, increase in the average balance of interest-earning deposits in banks. The benefit from higher average earning assets was partially offset by a 13-basis-point decrease in the yield on interest-earning assets to 5.74%. The average loan yield remained stable at 6.14%, as the effect of lower rates on repricing loans was offset by loan growth and changes in portfolio mix. This increase in interest income was partially offset by a $2.8 million increase in interest expense, stemming from a $946.6 million, or 23.89%, increase in the average balance of deposits during the three months ended September 30, 2026, moderated by a 25-basis-point decrease in the average cost of deposits compared to the same quarter of the prior year, reflecting deposit repricing following the three Federal Reserve rate cuts that began in September 2025 and an improved funding mix. Further supporting the decreasing average cost of deposits, the average balance of non-interest-bearing deposits increased by $195.5 million, or 19.23%, and brokered deposits decreased from $216.4 million to zero compared to the same period of the prior year.

Loans by Type

The following table provides loan balances, excluding deferred loan fees, by type as of the dates shown:

(in thousands)	September 30, 2026				June 30, 2026
Real estate:
Commercial	$	3,678,924			$	3,597,173
Commercial land and development		2,487				2,507
Commercial construction		122,561				124,053
Residential construction		25,569				21,809
Residential		41,530				41,874
Farmland		57,027				59,900
Commercial:
Secured		313,600				258,736
Unsecured		39,164				41,263
Consumer and other		425,531				374,614
Net deferred loan fees		(2,178	)			(2,248	)
Total loans held for investment	$	4,704,215			$	4,519,681

Interest-bearing Deposits

The following table provides interest-bearing deposit balances by type as of the dates shown:

(in thousands)	September 30, 2026			June 30, 2026
Interest-bearing transaction accounts	$	415,688		$	500,256
Savings accounts		149,296			147,435
Money market accounts		2,791,209			2,669,295
Time accounts		257,847			307,991
Total interest-bearing deposits	$	3,614,040		$	3,624,977

Asset Quality

Allowance for Credit Losses

At September 30, 2026, the Company’s allowance for credit losses was $49.4 million, as compared to $44.4 million at December 31, 2025. The $5.0 million increase in the allowance is due to a $7.3 million provision for credit losses (excluding a $0.2 million provision for unfunded commitments) recorded during the nine months ended September 30, 2026, partially offset by net charge-offs of $2.3 million, primarily attributable to commercial and industrial loans, during the same period.

A summary of the allowance for credit losses by loan class is as follows:

	September 30, 2026						December 31, 2025
(in thousands)	Amount			% of Total			Amount			% of Total
Real estate:
Commercial	$	28,540		57.79	%		$	25,219		56.77	%
Commercial land and development		92		0.19	%			56		0.13	%
Commercial construction		4,526		9.16	%			4,050		9.12	%
Residential construction		806		1.63	%			213		0.48	%
Residential		461		0.93	%			362		0.82	%
Farmland		432		0.87	%			467		1.05	%
		34,857		70.57	%			30,367		68.37	%
Commercial:
Secured		10,630		21.52	%			11,204		25.23	%
Unsecured		502		1.02	%			482		1.09	%
		11,132		22.54	%			11,686		26.32	%
Consumer and other		3,401		6.89	%			2,356		5.31	%
Total allowance for credit losses	$	49,390		100.00	%		$	44,409		100.00	%

The ratio of allowance for credit losses to loans held for investment was 1.05% at September 30, 2026, as compared to 1.09% at December 31, 2025.

Risk Grades

The Company’s nonperforming loans increased from $3.1 million to $13.3 million between December 31, 2025 and September 30, 2026, increasing the ratio of nonperforming loans to loans held for investment from 0.08% at December 31, 2025 to 0.28% at September 30, 2026. This increase was due to one Community Reinvestment Act-related credit that was originally downgraded during 2025 and placed on non-accrual status during the three months ended June 30, 2026. The balance of the loan was $11.4 million as of September 30, 2026, and it remains well secured by collateral with an appraised value that meaningfully exceeds its carrying amount. This was partially offset by improvements across the remainder of the nonperforming loan portfolio.

The following table presents the Company’s loan portfolio by risk grade as of the dates shown:

(in thousands)	September 30, 2026			December 31, 2025			$ Change				% of Loan Portfolio Outstanding as of September 30, 2026(1)
Pass	$	4,490,670		$	3,915,263		$	575,407			95.41	%
Watch		147,152			101,895			45,257			3.13	%
Special Mention		48,500			37,530			10,970			1.03	%
Substandard		20,071			22,331			(2,260	)		0.43	%
Doubtful		—			—			—			—	%
Total loan portfolio outstanding(1)	$	4,706,393		$	4,077,019		$	629,374			100.00	%

⁽¹⁾ Loan portfolio outstanding is total balance of loans outstanding at period end, before deferred loan fees and allowance for credit losses.

Non-interest Income

The following table presents the key components of non-interest income for the periods indicated:

	Three months ended
(in thousands)	September 30, 2026			June 30, 2026			$ Change				% Change
Service charges on deposit accounts	$	148		$	122		$	26			21.31	%
Loan-related fees		472			679			(207	)		(30.49	)%
FHLB stock dividends		424			191			233			121.99	%
Earnings on bank-owned life insurance		270			265			5			1.89	%
Other income		380			615			(235	)		(38.21	)%
Total non-interest income	$	1,694		$	1,872		$	(178	)		(9.51	)%

Loan-related fees. The decrease resulted primarily from a decrease of $0.1 million in loan referral income during the three months ended September 30, 2026, as compared to the three months ended June 30, 2026.

FHLB stock dividends. The increase related primarily to a $0.2 million special cash dividend from the FHLB during the three months ended September 30, 2026 that did not occur during the three months ended June 30, 2026.

Other income. The decrease related primarily to an overall decline in earnings related to investments in venture-backed funds during the three months ended September 30, 2026, as compared to the three months ended June 30, 2026.

The following table presents the key components of non-interest income for the periods indicated:

	Three months ended
(in thousands)	September 30, 2026			September 30, 2025			$ Change				% Change
Service charges on deposit accounts	$	148		$	185		$	(37	)		(20.00	)%
Loan-related fees		472			683			(211	)		(30.89	)%
FHLB stock dividends		424			329			95			28.88	%
Earnings on bank-owned life insurance		270			209			61			29.19	%
Other income		380			560			(180	)		(32.14	)%
Total non-interest income	$	1,694		$	1,966		$	(272	)		(13.84	)%

Loan-related fees. The decrease resulted primarily from a decrease of $0.1 million in fees from swap referrals during the three months ended September 30, 2026, as compared to the three months ended September 30, 2025, combined with $0.1 million in rate lock fees and good faith deposits that were forfeited during the three months ended September 30, 2025 and did not reoccur during the three months ended September 30, 2026.

Other income. The decrease related primarily to an overall decline in earnings related to investments in venture-backed funds during the three months ended September 30, 2026, as compared to the three months ended September 30, 2025.

Non-interest Expense

The following table presents the key components of non-interest expense for the periods indicated:

	Three months ended
(in thousands)	September 30, 2026			June 30, 2026			$ Change				% Change
Salaries and employee benefits	$	12,338		$	11,421		$	917			8.03	%
Occupancy and equipment		935			873			62			7.10	%
Data processing and software		1,742			1,709			33			1.93	%
Federal Deposit Insurance Corporation (“FDIC”) insurance		670			585			85			14.53	%
Professional services		1,330			952			378			39.71	%
Advertising and promotional		798			959			(161	)		(16.79	)%
Loan-related expenses		319			304			15			4.93	%
Other operating expenses		2,459			2,813			(354	)		(12.58	)%
Total non-interest expense	$	20,591		$	19,616		$	975			4.97	%

Salaries and employee benefits. The increase related primarily to: (i) a $0.5 million increase in salaries, benefits, and bonus expense, mainly related to a 4.05% increase in headcount between June 30, 2026 and September 30, 2026; and (ii) a $0.5 million decrease in deferred loan origination costs due to lower loan originations period-over period. This increase was partially offset by a $0.1 million decrease in commissions primarily due to lower loan originations period-over-period.

Professional services. The increase related primarily to: (i) a $0.2 million increase in recruiter fees associated with strategic hiring initiatives; and (ii) a $0.1 million increase in legal fees period-over-period related to legal fees incurred in the ordinary course of business.

Advertising and promotional. The decrease related primarily to lower period-over-period expenses in support of the Bank’s business development activities, including a $0.1 million decrease related to donations, sponsorships, and advertising expenses and a $0.1 million decrease related to business development expenses.

Other operating expenses. The decrease related primarily to: (i) a $0.4 million decrease in employee-related expenses such as travel, conferences, and training; and (ii) a $0.1 million decrease in operational losses, partially offset by a $0.1 million increase in reciprocal deposit network fees resulting from an overall increase in balances carried in the network.

The following table presents the key components of non-interest expense for the periods indicated:

	Three months ended
(in thousands)	September 30, 2026			September 30, 2025			$ Change				% Change
Salaries and employee benefits	$	12,338		$	9,716		$	2,622			26.99	%
Occupancy and equipment		935			700			235			33.57	%
Data processing and software		1,742			1,559			183			11.74	%
FDIC insurance		670			500			170			34.00	%
Professional services		1,330			932			398			42.70	%
Advertising and promotional		798			803			(5	)		(0.62	)%
Loan-related expenses		319			317			2			0.63	%
Other operating expenses		2,459			2,053			406			19.78	%
Total non-interest expense	$	20,591		$	16,580		$	4,011			24.19	%

Salaries and employee benefits. The increase related primarily to: (i) a $2.5 million increase in salaries, benefits, and bonus expense, mainly related to a 16.29% increase in headcount between September 30, 2025 and September 30, 2026; and (ii) a $0.5 million increase in commissions primarily due to higher loan originations period-over-period. This increase was partially offset by a $0.4 million increase in deferred loan origination costs due to higher loan originations period-over-period.

Occupancy and equipment. The increase was primarily driven by expenses associated with the Lodi branch office and the Calabasas non-depository office, both opened subsequent to the three months ended September 30, 2025. Additional increases stemmed from the Walnut Creek branch office and the Newport Beach non-depository office, which were only open for a portion of the three months ended September 30, 2025, as compared to the full three months ended September 30, 2026, and the San Francisco branch office, where an expansion project completed in the fourth quarter of 2025 resulted in elevated ongoing expenses.

Data processing and software. The increase was primarily due to: (i) increased usage of our digital banking platform; (ii) higher transaction volumes related to the increased number of loan and deposit accounts; (iii) an increased number of licenses required for new users on our loan origination and documentation system; and (iv) the implementation of enhanced commercial real estate lending analytics and risk assessment software.

FDIC insurance. FDIC insurance expenses is calculated based on the FDIC assessment base, which generally reflects average consolidated total assets less average tangible equity. The increase in FDIC insurance expense was primarily due to a $960.4 million increase in the assessment base period-over-period.

Professional services. The increase related primarily to: (i) a $0.2 million increase in recruiter fees associated with strategic hiring initiatives; and (ii) a $0.1 million increase in legal fees period-over-period related to legal fees incurred in the ordinary course of business.

Other operating expenses. The increase related primarily to: (i) a $0.1 million increase in bank charges; (ii) a $0.1 million increase in reciprocal deposit network fees resulting from an overall increase in balances carried in the network; (iii) a $0.1 million increase in armored car and courier services; and (iv) a $0.1 million increase in employee-related expenses such as travel. This increase was partially offset by a $0.1 million decrease in operational losses.

Provision for Income Taxes

Three months ended September 30, 2026, as compared to three months ended June 30, 2026

Provision for income taxes increased by $0.9 million, or 13.90%, for the three months ended September 30, 2026, as compared to the three months ended June 30, 2026, which was primarily due to an increase in taxable income. The effective tax rates were 25.81% and 25.64% for the three months ended September 30, 2026 and June 30, 2026, respectively.

Three months ended September 30, 2026, as compared to three months ended September 30, 2025

Provision for income taxes increased by $1.7 million, or 29.37%, for the three months ended September 30, 2026, as compared to the three months ended September 30, 2025. This increase was primarily driven by an increase in taxable income, partially offset by a $0.2 million benefit recorded during the three months ended September 30, 2026 related to the purchase of transferable tax credits that did not occur during the three months ended September 30, 2025. The effective tax rates were 25.81% and 26.49% for the three months ended September 30, 2026 and September 30, 2025, respectively.

Webcast Details

Five Star Bancorp will host a live webcast for analysts and investors on Tuesday, October 27, 2026 at 1:00 PM ET (10:00 AM PT) to discuss its third quarter financial results. To view the live webcast, visit the “News & Events” section of the Company’s website under “Events” at https://investors.fivestarbank.com/news-events/events. The webcast will be archived on the Company’s website for a period of 90 days.

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 ten branches in California.

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 phrases 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, 2025 and Quarterly Reports on Form 10-Q for the three months ended March 31, 2026 and June 30, 2026, in each case under the section entitled “Risk Factors,” and other documents filed by the Company with the Securities and Exchange Commission 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.

Condensed Financial Data (Unaudited)

	Three months ended
(in thousands, except per share and share data)	September 30, 2026				June 30, 2026				September 30, 2025
Revenue and Expense Data
Interest and fee income	$	79,174			$	72,327			$	64,845
Interest expense		28,248				26,244				25,497
Net interest income		50,926				46,083				39,348
Provision for credit losses		2,500				2,250				2,500
Net interest income after provision		48,426				43,833				36,848
Non-interest income:
Service charges on deposit accounts		148				122				185
Loan-related fees		472				679				683
FHLB stock dividends		424				191				329
Earnings on bank-owned life insurance		270				265				209
Other income		380				615				560
Total non-interest income		1,694				1,872				1,966
Non-interest expense:
Salaries and employee benefits		12,338				11,421				9,716
Occupancy and equipment		935				873				700
Data processing and software		1,742				1,709				1,559
FDIC insurance		670				585				500
Professional services		1,330				952				932
Advertising and promotional		798				959				803
Loan-related expenses		319				304				317
Other operating expenses		2,459				2,813				2,053
Total non-interest expense		20,591				19,616				16,580
Income before provision for income taxes		29,529				26,089				22,234
Provision for income taxes		7,620				6,690				5,890
Net income	$	21,909			$	19,399			$	16,344
Comprehensive Income
Net income	$	21,909			$	19,399			$	16,344
Net unrealized holding (loss) gain on securities available-for-sale during the period		(4,023	)			946				2,843
Less: Income tax (benefit) expense related to other comprehensive (loss) income		(1,046	)			246				763
Other comprehensive (loss) income		(2,977	)			700				2,080
Total comprehensive income	$	18,932			$	20,099			$	18,424
Share and Per Share Data
Earnings per common share:
Basic	$	0.92			$	0.91			$	0.77
Diluted	$	0.92			$	0.91			$	0.77
Book value per share	$	25.15			$	22.14			$	20.19
Tangible book value per share(1)	$	25.15			$	22.14			$	20.19
Weighted average basic common shares outstanding		23,620,369				21,273,902				21,231,563
Weighted average diluted common shares outstanding		23,697,397				21,338,903				21,281,818
Shares outstanding at end of period		24,536,614				21,402,864				21,367,387
Selected Financial Ratios
ROAA		1.55	%			1.49	%			1.44	%
ROAE		15.04	%			16.67	%			15.35	%
Net interest margin		3.69	%			3.63	%			3.56	%
Loan to deposit(2)		97.51	%			94.17	%			94.73	%

⁽¹⁾ See the section entitled “Non-GAAP Reconciliation (Unaudited)” for a reconciliation of this non-GAAP financial measure.
⁽²⁾ Loan balance in loan to deposit ratio is total loans held for investment at period end. Deposit balance in loan to deposit ratio is total deposits at period end.

(in thousands)	September 30, 2026				June 30, 2026				September 30, 2025
Balance Sheet Data
Cash and due from financial institutions	$	46,297			$	45,966			$	44,147
Interest-bearing deposits in banks		633,185				639,108				536,300
Time deposits in banks		—				—				100
Securities - available-for-sale, at fair value		82,228				90,584				95,635
Securities - held-to-maturity, at amortized cost		1,930				2,135				2,190
Loans held for investment		4,704,215				4,519,681				3,887,259
Allowance for credit losses		(49,390	)			(47,335	)			(42,061	)
Loans held for investment, net of allowance for credit losses		4,654,825				4,472,346				3,845,198
FHLB stock		15,000				15,000				15,000
Operating leases, right-of-use asset		10,661				10,138				9,751
Premises and equipment, net		2,687				2,333				1,656
Bank-owned life insurance		29,029				28,759				23,676
Interest receivable and other assets		83,776				70,693				68,117
Total assets	$	5,559,618			$	5,377,062			$	4,641,770
Non-interest-bearing deposits	$	1,210,488			$	1,174,406			$	1,059,082
Interest-bearing deposits		3,614,040				3,624,977				3,044,356
Total deposits		4,824,528				4,799,383				4,103,438
Subordinated notes, net		74,150				74,114				74,004
Operating lease liability		11,926				11,262				10,431
Interest payable and other liabilities		31,803				18,532				22,589
Total liabilities		4,942,407				4,903,291				4,210,462
Common stock		435,511				304,868				303,571
Retained earnings		194,092				178,318				137,615
Accumulated other comprehensive loss, net of taxes		(12,392	)			(9,415	)			(9,878	)
Total shareholders’ equity		617,211				473,771				431,308
Total liabilities and shareholders’ equity	$	5,559,618			$	5,377,062			$	4,641,770
Quarterly Average Balance Data
Average loans held for investment and sale	$	4,612,608			$	4,328,304			$	3,831,851
Average interest-earning assets		5,475,669				5,099,006				4,380,191
Average total assets		5,595,968				5,222,360				4,490,309
Average deposits		4,908,264				4,650,350				3,961,698
Average total equity		577,886				466,779				422,420
Credit Quality
Allowance for credit losses to nonperforming loans		371.49	%			354.57	%			1,975.62	%
Nonperforming loans to loans held for investment		0.28	%			0.30	%			0.05	%
Nonperforming assets to total assets		0.24	%			0.25	%			0.05	%
Nonperforming loans plus performing loan modifications to loans held for investment		0.28	%			0.30	%			0.05	%
Capital Ratios
Total shareholders’ equity to total assets		11.10	%			8.81	%			9.29	%
Tangible shareholders’ equity to tangible assets(1)		11.10	%			8.81	%			9.29	%
Total capital (to risk-weighted assets)		15.00	%			12.50	%			13.59	%
Tier 1 capital (to risk-weighted assets)		12.52	%			9.97	%			10.77	%
Common equity Tier 1 capital (to risk-weighted assets)		12.52	%			9.97	%			10.77	%
Tier 1 leverage ratio		11.21	%			9.21	%			9.78	%

⁽¹⁾ See the section entitled “Non-GAAP Reconciliation (Unaudited)” for a reconciliation of this non-GAAP financial measure.

Non-GAAP Reconciliation (Unaudited)

The Company uses financial information in its analysis of the Company’s performance that is not in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The Company believes that these non-GAAP financial measures provide useful information to management and investors that is supplementary to the Company’s financial condition, results of operations, and cash flows computed in accordance with GAAP. However, the Company acknowledges that its non-GAAP financial measures have a number of limitations. As such, investors should not view these disclosures as a substitute for results determined in accordance with GAAP. Additionally, these non-GAAP measures are not necessarily comparable to non-GAAP financial measures that other banking companies use. Other banking companies may use names similar to those the Company uses for the non-GAAP financial measures the Company discloses, but may calculate them differently. Investors should understand how the Company and other companies each calculate their non-GAAP financial measures when making comparisons.

Tangible shareholders’ equity to tangible assets is defined as total equity less goodwill and other intangible assets, divided by total assets less goodwill and other intangible assets. The most directly comparable GAAP financial measure is total shareholders’ equity to total assets. Management believes that tangible shareholders’ equity to tangible assets is a useful financial measure because it enables management, investors, and others to assess the Company’s financial health based on tangible capital. We had no goodwill or other intangible assets at the end of any period indicated. As a result, tangible shareholders’ equity to tangible assets is the same as total shareholders’ equity to total assets at the end of each of the periods indicated.

Tangible book value per share is defined as total shareholders’ equity less goodwill and other intangible assets, divided by the outstanding number of common shares at the end of the period. The most directly comparable GAAP financial measure is book value per share. Management believes that tangible book value per share is a useful financial measure because it enables management, investors, and others to assess the Company’s value and use of equity. We had no goodwill or other intangible assets at the end of any period indicated. As a result, tangible book value per share is the same as book value per share at the end of each of the periods indicated.

Pre-tax, pre-provision income is defined as pre-tax income plus provision for credit losses. The most directly comparable GAAP financial measure is pre-tax income. Management believes that pre-tax, pre-provision income is a useful financial measure because it enables management, investors, and others to assess the Company’s ability to generate operating profit and capital.

The following reconciliation table provides a more detailed analysis of this non-GAAP financial measure:

	Three months ended
(in thousands)	September 30, 2026			June 30, 2026			September 30, 2025
Pre-tax, pre-provision income
Pre-tax income	$	29,529		$	26,089		$	22,234
Add: provision for credit losses		2,500			2,250			2,500
Pre-tax, pre-provision income	$	32,029		$	28,339		$	24,734

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

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Five Star Bancorp's third-quarter 2026 earnings?

Five Star Bancorp earned $21.9 million in the third quarter of 2026, compared with $19.4 million in the second quarter and $16.3 million a year earlier. Basic and diluted earnings per share were $0.92, versus $0.91 sequentially and $0.77 year over year.

How much did Five Star Bancorp raise in its third-quarter 2026 stock offering?

Five Star Bancorp raised approximately $130.0 million in net proceeds through an underwritten public offering of 3,133,750 common shares. Net proceeds reflected deductions for approximately $7.3 million in underwriting discounts and commissions and approximately $0.6 million in offering expenses.

Why did Five Star Bancorp's non-interest expenses increase in third-quarter 2026?

Non-interest expenses increased primarily because of higher salaries and employee benefits from increased headcount. Sequential growth also reflected increased recruiter fees, partly offset by lower employee-related expenses, advertising and promotional expenses, and operational losses. Year-over-year growth also included higher other operating expenses associated with organizational expansion.

How much of Five Star Bancorp's deposits were insured or collateralized at September 30, 2026?

Insured and collateralized deposits were approximately $3.3 billion, or 68.08% of total deposits, at September 30, 2026, compared with 65.80% at June 30. Net uninsured and uncollateralized deposits decreased to approximately $1.5 billion from $1.6 billion.