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1. Company Snapshot

1.a. Company Description

Five Star Bancorp operates as the bank holding company for Five Star Bank that provides a range of banking products and services to small and medium-sized businesses, professionals, and individuals.The company accepts various deposits, such as money market, noninterest-bearing and interest checking accounts, savings accounts, and time deposits.Its loan products include commercial and residential real estate loans; commercial loans; commercial land loans; farmland loans; commercial and residential construction loans; and consumer and other loans.


The company also offers debit cards; and remote deposit capture, online and mobile banking, and direct deposit services.It operates through seven branch offices and two loan production offices in Northern California.Five Star Bancorp was founded in 1999 and is headquartered in Rancho Cordova, California.

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1.b. Last Insights on FSBC

Five Star Bancorp's recent performance was driven by strong quarterly earnings, beating estimates with $0.77 per share, a 48% year-over-year increase. The company's moderate buy rating from seven analysts, with five assigning a buy rating, signals confidence in its growth prospects (Source: Marketbeat). Additionally, the declaration of a $0.25 per share cash dividend and an upcoming earnings release date on January 26, 2026, are expected to drive investor sentiment. Institutional investors, such as Deprince Race and Zollo Inc., have also shown increased interest, lifting their holdings by 278.1%.

1.c. Company Highlights

2. Five Star Bancorp's Strong 2025 Earnings Driven by Exceptional Growth

Five Star Bancorp reported outstanding financial performance in 2025, with significant year-over-year growth in key metrics. Total loans held for investments increased by 15%, total deposits grew by 18%, net income rose by 35%, and earnings per share (EPS) increased by 28% to $2.90. In the fourth quarter, the company achieved net income of $17.6 million, EPS of $0.83, and a return on average assets of 1.50%. The net interest margin expanded 10 basis points to 3.66%, while the total cost of deposits declined by 21 basis points to 2.23%. The actual EPS of $0.83 beat estimates of $0.77, indicating a strong quarterly performance.

Publication Date: Mar -08

📋 Highlights
  • Loan and Deposit Growth:: Total loans held for investment grew 15% YoY, and total deposits increased 18% in 2025.
  • Strong Profitability:: Net income reached $17.6M in Q4 2025 (up 35% YoY), with EPS of $0.83 (up 28% to $2.90 annually).
  • Margin Expansion:: Net interest margin widened 10 bps to 3.66%, while total deposit cost fell 21 bps to 2.23%.
  • Dividend Hike:: Quarterly dividend increased to $0.25/share, a $0.05 raise since April 2023, payable in Feb 2026.
  • 2026 Growth Target:: Aiming for 10% growth on both sides of the balance sheet, prioritizing core deposits over wholesale deposits.

Drivers of Financial Performance

The company's strong financial performance was driven by exceptional growth across all markets, consistent strong financial performance, and the expansion of its footprint in the San Francisco Bay Area. Five Star Bank also expanded its agribusiness vertical and added 10 seasoned business development professionals to facilitate ongoing organic growth. According to James Beckwith, President and CEO, the company's secret sauce is its ability to bring in core deposits and core relationships into the bank, with 42 business development folks working to achieve this goal.

Asset Quality and Dividend Increase

The company's asset quality remains strong, with nonperforming loans representing only 8 basis points of total loans held for investment. The company increased its cash dividend by $0.05 per share, making the total dividend $0.25 per share for the quarter, indicating a commitment to returning value to shareholders. The dividend yield is currently around 2.25%, which is an attractive metric for income-seeking investors.

Valuation and Growth Expectations

With a Price-to-Tangible Book Value (P/TBV) ratio of approximately 1.8, investors are paying a premium for the company's strong franchise and growth prospects. The company's guidance for 10% growth on both sides of the balance sheet in 2026, driven by its focus on innovation and service excellence, is expected to drive future returns. Analysts estimate revenue growth of 13.3% next year, indicating a positive outlook for the company's top-line performance.

Outlook and Challenges

The company expects to continue growing its business verticals while expanding its reach into new markets, including the Peninsula and South Bay. However, James Beckwith notes that the company is seeing competitive dynamics similar to its peers, with pressure on loan spreads, especially for owner-occupied real estate and lines of credit. The company's CET1 ratio is around 10.5% to 10.6%, providing a buffer for potential future growth.

3. NewsRoom

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California First Leasing (OTCMKTS:CFNB) vs. Five Star Bancorp (NASDAQ:FSBC) Financial Survey

Feb -05

Source: defenseworld.net

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Five Star Bancorp Q4 Earnings Call Highlights

Jan -28

Source: defenseworld.net

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Five Star Bancorp (FSBC) Q4 2025 Earnings Call Transcript

Jan -27

Source: seekingalpha.com

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Compared to Estimates, Five Star Bancorp (FSBC) Q4 Earnings: A Look at Key Metrics

Jan -27

Source: zacks.com

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Five Star Bancorp (FSBC) Surpasses Q4 Earnings and Revenue Estimates

Jan -27

Source: zacks.com

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Five Star Bancorp Announces Quarterly and Annual Results

Jan -26

Source: globenewswire.com

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Five Star Bancorp Declares Fourth Quarter Cash Dividend

Jan -16

Source: globenewswire.com

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Five Star Bancorp Announces Fourth Quarter 2025 Earnings Release Date and Webcast

Jan -13

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (13.00%)

6. Segments

Banking and Related Activities

Expected Growth: 13%

Five Star Bancorp's 13% growth in Banking and Related Activities is driven by increasing demand for commercial loans, expansion into new markets, and strategic partnerships. Additionally, the bank's focus on digital transformation, improved customer experience, and cost savings initiatives have contributed to its growth. Strong asset quality, effective risk management, and a favorable interest rate environment have also supported the bank's growth momentum.

7. Detailed Products

Commercial Loans

Five Star Bancorp offers a range of commercial loans to support businesses of all sizes, including term loans, lines of credit, and construction loans.

Residential Mortgages

Five Star Bancorp offers a variety of residential mortgage options, including fixed-rate and adjustable-rate loans, to help individuals and families achieve homeownership.

Consumer Banking

Five Star Bancorp's consumer banking services include checking and savings accounts, credit cards, and personal loans, designed to meet the everyday financial needs of individuals and families.

Wealth Management

Five Star Bancorp's wealth management services offer investment and financial planning advice to help individuals and families achieve their long-term financial goals.

Treasury Management

Five Star Bancorp's treasury management services help businesses optimize their cash flow, manage risk, and improve financial efficiency.

8. Five Star Bancorp's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Five Star Bancorp is moderate, as customers have alternative banking options available.

Bargaining Power Of Customers

The bargaining power of customers is low, as Five Star Bancorp has a strong brand presence and customer loyalty.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate, as Five Star Bancorp relies on a diverse range of suppliers for its operations.

Threat Of New Entrants

The threat of new entrants is high, as the banking industry is highly competitive and new fintech companies are emerging.

Intensity Of Rivalry

The intensity of rivalry is high, as Five Star Bancorp operates in a highly competitive banking industry with many established players.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 46.16%
Debt Cost 5.81%
Equity Weight 53.84%
Equity Cost 5.81%
WACC 5.81%
Leverage 85.73%

11. Quality Control: Five Star Bancorp passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Five Star Bank

A-Score: 6.4/10

Value: 5.5

Growth: 5.4

Quality: 8.1

Yield: 5.0

Momentum: 7.0

Volatility: 7.3

1-Year Total Return ->

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Stock-Card
Finward

A-Score: 5.8/10

Value: 6.0

Growth: 3.6

Quality: 4.3

Yield: 4.0

Momentum: 8.5

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
First National

A-Score: 5.8/10

Value: 5.7

Growth: 3.0

Quality: 6.7

Yield: 6.0

Momentum: 4.5

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
Southern Missouri Bancorp

A-Score: 5.8/10

Value: 7.0

Growth: 6.7

Quality: 6.7

Yield: 4.0

Momentum: 3.0

Volatility: 7.3

1-Year Total Return ->

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Stock-Card
WaFed

A-Score: 5.6/10

Value: 6.3

Growth: 3.8

Quality: 5.7

Yield: 6.0

Momentum: 4.0

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
National Bankshares

A-Score: 5.3/10

Value: 4.8

Growth: 3.3

Quality: 4.7

Yield: 8.0

Momentum: 4.5

Volatility: 6.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

36.81$

Current Price

36.81$

Potential

-0.00%

Expected Cash-Flows