Five Star Bancorp (NASDAQ: FSBC) has reported its quarterly and annual results, showcasing strong financial performance for the periods ending December 31, 2025. Net income for the three months ended December 31, 2025, was $17.6 million, compared to $16.3 million for the three months ended September 30, 2025, and $13.3 million for the three months ended December 31, 2024. The net income for the year ended December 31, 2025, was $61.6 million, compared to $45.7 million for the year ended December 31, 2024.
The Return on Average Assets (ROAA) for the three months ended December 31, 2025, was 1.50%, compared to 1.44% for the three months ended September 30, 2025, and 1.31% for the three months ended December 31, 2024. Meanwhile, the Return on Average Equity (ROAE) for the same periods was 15.97%, 15.35%, and 13.48%, respectively.
The company's total deposits increased by $97.6 million, or 2.38%, during the three months ended December 31, 2025. Non-wholesale deposits increased by $139.1 million or 3.87%, while wholesale deposits decreased by $41.4 million or 8.18%. Five Star Bancorp's efficiency ratio decreased from 43.19% in 2024 to 41.03% in 2025, while the net interest margin was 3.66% for the three months ended December 31, 2025, compared to 3.56% for the three months ended September 30, 2025, and 3.36% for the three months ended December 31, 2024.
The company's common equity tier 1 capital ratio was 10.58% and 10.77% as of December 31, 2025, and September 30, 2025, respectively, meeting all requirements to be considered "well-capitalized" under applicable regulatory guidelines.
In terms of loan and deposit growth, loans held for investment increased by $542.2 million, or 15%, and total deposits increased by $643.1 million, or 18%, for the year ended December 31, 2025, compared to the year ended December 31, 2024. However, the ratio of nonperforming loans to loans held for investment at period end increased from 0.05% at December 31, 2024, to 0.08% at December 31, 2025.
The company's board of directors declared a cash dividend of $0.20 per share during the three months ended December 31, 2025, and an additional cash dividend of $0.25 per share on January 15, 2026, which is expected to be paid on February 9, 2026.
In terms of financial ratios, the net interest margin increased from 3.36% for the three months ended December 31, 2024, to 3.66% for the three months ended December 31, 2025. The cost of funds decreased from 2.65% to 2.30% for the same periods.
Today the company's shares have moved -0.53% to a price of $37.69. For more information, read the company's full 8-K submission here.
