Slide 1: Five Star Bancorp First Quarter 2025 Investor Presentation
rk FIVE STAR BANCORP kk =a Lnvestor io 5 Presentation ANNIVERSARY First Quarter 2025
Slide 2: Safe Harbor Statement and Disclaimer
Safe Harbor Statement and Disclaimer Forward-Looking Statements In this presentation, “we,” “our,” “us,” “Five Star,” or “the Company” refers to Five Star Bancorp, a California corporation, and our consolidated subsidiaries, including Five Star Bank, a California state- chartered bank, unless the co
Slide 3: Agenda
Agenda First Quarter 2025 Investor Presentation | 3 •Company Overview •Financial Highlights •Loans and Credit Quality •Deposit and Capital Overview •Financial Results
Slide 4: Company Overview
Company Overview First Quarter 2025 Investor Presentation | 4
Slide 5: Executive Team
Executive Team First Quarter 2025 Investor Presentation | 5 James Beckwith President and Chief Executive Officer Five Star since 2003 John Dalton Senior Vice President and Chief Credit Officer Five Star since 2011 Mike Lee Senior Vice President and Chief Regulatory Officer Five Star since 2005 Micha
Slide 6: Company Overview
Company Overview Nasdaq: Headquarters: Asset Size: Loans HFI: Deposits: Bank Branches: First Quarter 2025 Investor Presentation | 6 FSBC Rancho Cordova, CA $4.2 billion $3.6 billion $3.7 billion 8 Note: Balances are as of March 31, 2025. References to loans HFI are loans held for investment. Five St
Slide 7: Financial Highlights
Financial Highlights First Quarter 2025 Investor Presentation | 7
Slide 8: Consistent and Organic Asset Growth
$811 $840 $973 $1,272 $1,480 $1,954 $2,557 $3,227 $3,593 $4,053 $4,245 $1,806 $2,535 $148 $22 Total Assets Excluding PPP Loans PPP Loans 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Q1 2025 Consistent and Organic Asset Growth First Quarter 2025 Investor Presentation | 8 Note: Dollars are in mil
Slide 9: Financial Highlights - March 31, 2025
Financial Highlights - March 31, 2025 First Quarter 2025 Investor Presentation | 9 Growth • Continued balance sheet growth with increases in loans held for investment of $89.1 million and non-wholesale(1) deposits of $48.4 million since December 31, 2024. Funding • Non-interest-bearing deposits comp
Slide 10: Loans and Credit Quality
Loans and Credit Quality First Quarter 2025 Investor Presentation | 10
Slide 11: Consistent Loan Growth
To ta l L oa ns (M ill io ns ) $1,355 $1,912 $2,791 $3,082 $3,104 $3,266 $3,461 $3,533 $3,622 $148 $22 4.96% 4.82% 4.75% 5.52% 5.71% 5.83% 5.98% 6.01% 6.02% Non-PPP Loans PPP Loans Average Loan Yield Average Loan Yield Excluding PPP Loans 2020 2021 2022 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 0
Slide 12: Loan Portfolio Composition
Commercial real estate, 81.11% Commercial land and development, 0.10% Commercial construction, 3.12% Residential construction, 0.16% Residential, 0.94% Farmland, 1.20% Secured, 4.77% Unsecured, 0.96% PPP, 0.00% Consumer and other, 7.64% Loan Portfolio Composition First Quarter 2025 Investor Presenta
Slide 13: CRE Collateral Values
$919M $379M $272M $237M $198M $188M $186M $563M $1,638M $661M $550M $528M $393M $498M $395M $1,215M 61.11% 60.27% 55.50% 51.68% 57.56% 46.29% 52.96% 54.21% Loan Balance Collateral Value Weighted Average Loan-to-Value Manufactured home community RV Park Retail Industrial Mini storage Faith-based Mult
Slide 14: Loan Portfolio Diversification
CA, 57.0% TX, 7.7% NC, 3.2% AZ, 2.7% FL, 2.5% OR, 2.3% NV, 2.2%TN, 2.0%GA, 1.8%CO, 1.3% PA, 1.2% WI, 1.2% MO, 1.2% WA, 1.2% OH, 1.0% Other, 11.5% CML Term CRE NOO, 35.9% CML Term Multifamily, 30.4% CML Term CRE OO, 14.4% CSM Unsecured, 7.5% CML Secured, 3.1% CML Const CRE, 3.1%CML Term Ag RE, 1.2% S
Slide 15: Loan Rollforward
Loan Rollforward First Quarter 2025 Investor Presentation | 15Note: Dollars are in millions. Beginning and ending balances are end of period, before allowance for credit losses, including deferred loan fees, and exclude loans held for sale. $150 $390 $334 $263 $259 $(51) $(155) $(99) $(119) $(105) $
Slide 16: Asset Quality
1.48% 1.20% 1.02% 1.12% 1.07% 1.08% 0.12% 0.04% 0.07% 0.11% 0.12% 0.02% Allowance for Credit Losses to Loans HFI Net Charge-offs to Average Loans HFI 2020 2021 2022 2023 2024 Q1 2025 Asset Quality First Quarter 2025 Investor Presentation | 16 Nonperforming Loan Trend Allowance for Credit Losses and
Slide 17: Allocation of Allowance for Credit Losses
Allocation of Allowance for Credit Losses First Quarter 2025 Investor Presentation | 17 (dollars in thousands) December 31, 2024 March 31, 2025 Allowance for Credit Losses Amount % of Total Amount % of Total Real estate: Commercial $ 25,864 68.44 % $ 27,027 68.91 % Commercial land & development 78 0
Slide 18: Risk Grade Migration
Risk Grade Migration First Quarter 2025 Investor Presentation | 18 Classified Loans (Loans Rated Substandard or Doubtful) (dollars in thousands) 2023 2024 Q1 2025 Real estate: Commercial $ 1,892 $ 2,587 $ 3,653 Commercial land and development — — — Commercial construction — — — Residential construct
Slide 19: Deposit and Capital Overview
Deposit and Capital Overview First Quarter 2025 Investor Presentation | 19
Slide 20: Strong Deposit Growth
$1.8B $2.3B $2.8B $3.0B $3.6B $3.7B $889M $1,001M $1,228M $1,409M $1,650M $1,706M $701M $902M $971M $831M $923M $934M $146M $279M $240M $320M $315M $296M $48M $104M $343M $467M $670M $801M Money Market & Savings Non-Interest-Bearing Demand Interest-Bearing Transaction Time Deposits 2020 2021 2022 20
Slide 21: Diversified Funding
Diversified Funding First Quarter 2025 Investor Presentation | 21 Total Deposits(1) = $3.7 billion 97.3% of Total Liabilities Liability Mix(1) 1. Balance as of March 31, 2025. 2. Loan balance in loan to deposit ratio is total loans held for investment and sale at period end. Loan(2) to Deposit Ratio
Slide 22: Deposit Composition
Government, 22.56% Other, 22.14% Commercial Real Estate & Construction, 13.65% Small to Medium Sized Business, 8.99% Professional Service Practice, 8.03% Non-profit, 7.37% Healthcare & Practice, 6.17% Manufactured Home Community, 5.81%Faith-based, 2.07% Venture Banking, 2.04% Agriculture & Ag Tech,
Slide 23: Capital Ratios
Capital Ratios First Quarter 2025 Investor Presentation | 23 Tier 1 Leverage Ratio Tier 1 Capital to RWA Total Capital to RWA Common Equity Tier 1 to RWA Note: References to RWA are risk-weighted assets. 6.58% 9.47% 8.60% 8.73% 10.05% 10.17% 2020 2021 2022 2023 2024 Q1 2025 8.98% 11.44% 8.99% 9.07%
Slide 24: Financial Results
Financial Results First Quarter 2025 Investor Presentation | 24
Slide 25: Financial Highlights
Financial Highlights First Quarter 2025 Investor Presentation | 25 (dollars in thousands, except per share data) For the three months ended 3/31/2025 12/31/2024 3/31/2024 Profitability Net income $ 13,111 $ 13,317 $ 10,631 Return on average assets ("ROAA") 1.30 % 1.31 % 1.22 % Return on average equi
Slide 26: Operating Metrics
Operating Metrics First Quarter 2025 Investor Presentation | 26 Efficiency RatioNet Interest Margin 3.75% 3.42% 3.32% 3.45% 2022 2023 2024 2025 YTD 36.90% 40.35% 43.19% 42.58% 2022 2023 2024 2025 YTD Note: All 2025 figures are through March 31, 2025.
Slide 27: Earnings Track Record
Earnings Track Record First Quarter 2025 Investor Presentation | 27 $15.9M $17.2M $18.0M $20.7M $20.3M $15.0M $15.2M $15.2M $19.4M $18.4M Pre-tax, pre-provision income Pre-tax income Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 $0.0M $2.5M $5.0M $7.5M $10.0M $12.5M $15.0M $17.5M $20.0M $22.5M 1. A reconc
Slide 28: Non-interest Income and Expense Comparison
Non-interest Income and Expense Comparison First Quarter 2025 Investor Presentation | 28 (dollars in thousands) For the three months ended 3/31/2025 12/31/2024 3/31/2024 Non-interest Income Service charges on deposit accounts $ 215 $ 179 $ 188 Gain on sale of loans 125 150 369 Loan-related fees 448
Slide 29: Shareholder Returns
Shareholder Returns First Quarter 2025 Investor Presentation | 29 ROAA ROAE Value per Share (book and tangible book(1)) Note: All 2025 figures are through March 31, 2025. 1. A reconciliation of this non-GAAP measure is set forth in the appendix. 1.57% 1.44% 1.23% 1.30% 2022 2023 2024 2025 YTD 18.80%
Slide 30: Five Star Bank customers
Five Star Bank customer, Visit Sacramento, ensures our region is a leading destination for meetings, conventions, travel trade and leisure, which support the vitality of our regional economy by driving almost $200 million in visitor spending annually. Their vision is for every person in the world to
Slide 31: Appendix: Non-GAAP Reconciliation (Unaudited)
Appendix: Non-GAAP Reconciliation (Unaudited) The Company uses financial information in its analysis of the Company's performance that is not in conformity with GAAP. The Company believes that these non- GAAP financial measures provide useful information to management and investors that is supplemen
Slide 32: Appendix: Non-GAAP Reconciliation (Unaudited)
Appendix: Non-GAAP Reconciliation (Unaudited) First Quarter 2025 Investor Presentation | 32 (dollars in millions) As of Total assets, excluding PPP loans 12/31/2020 12/31/2021 12/31/2022 12/31/2023 12/31/2024 3/31/2025 Total assets $ 1,954 $ 2,557 $ 3,227 $ 3,593 $ 4,053 $ 4,245 Less: PPP loans 148