Five Star Bancorp Reports Strong Q3 Growth

By Bobby Samwell • Tuesday, October 28 10:38 • Permanent Link

Five Star Bancorp (NASDAQ: FSBC) has released its third-quarter 2025 financial results, demonstrating strong performance and growth. The company reported a net income of $16.3 million for the three months ended September 30, 2025, marking an increase from $14.5 million for the three months ended June 30, 2025, and $10.9 million for the three months ended September 30, 2024.

Key financial metrics for the third quarter of 2025 include a return on average assets (ROAA) of 1.44%, an increase from 1.37% in the previous quarter and 1.18% in the same period last year. Return on average equity (ROAE) also saw growth, reaching 15.35% in the third quarter of 2025, compared to 14.17% in the previous quarter and 11.31% in the same period in 2024.

The company's pre-tax income surged to $22,234,000 in the third quarter of 2025, up from $20,099,000 in the previous quarter and $15,241,000 in the third quarter of 2024. Moreover, pre-tax, pre-provision income rose to $24,734,000 in the third quarter of 2025, compared to $22,599,000 in the previous quarter and $17,991,000 in the same period last year.

Five Star Bancorp also witnessed growth in its total loans held for investment, which increased by $129.2 million, or 3.44%, during the third quarter of 2025. Additionally, total deposits grew by $208.8 million, or 5.36%, during the same period.

The company's net interest margin improved to 3.56% in the third quarter of 2025, compared to 3.53% in the previous quarter and 3.37% in the third quarter of 2024. Notably, the efficiency ratio decreased to 40.13% in the third quarter of 2025, demonstrating improved operational efficiency compared to 41.03% in the previous quarter and 43.37% in the same period last year.

Five Star Bancorp's strong financial performance was further underscored by the growth of its San Francisco Bay Area team, an increase in non-wholesale deposits, and the opening of a new full-service office in Walnut Creek, California. The company's commitment to shareholder value was evident as it declared and paid a cash dividend of $0.20 per share during the third quarter of 2025.

Following these announcements, the company's shares moved -0.14%, and are now trading at a price of $35.58. If you want to know more, read the company's complete 8-K report here.

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