Five Star Bancorp · NASDAQ:FSBC

Five Star Bancorp — Q2 2025 Earnings Presentation

33 slides from Five Star Bancorp's earnings presentation, Jul 24, 2025

  1. Slide 1: Second Quarter 2025 Investor Presentation

    $e FIVE STAR BANCORP kk am: Investor Second Quarter 2025 —— > Presentation

  2. 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

  3. Slide 3: Agenda

    Agenda Second Quarter 2025 Investor Presentation | 3 •Company Overview •Financial Highlights •Loans and Credit Quality •Deposit and Capital Overview

  4. Slide 4: Company Overview

    Company Overview Second Quarter 2025 Investor Presentation | 4

  5. Slide 5: Executive Team

    Executive Team Second 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 Mich

  6. Slide 6: Company Overview

    Company Overview Nasdaq: Headquarters: Asset Size: Loans HFI: Deposits: Bank Branches: Second Quarter 2025 Investor Presentation | 6 FSBC Rancho Cordova, CA $4.4 billion $3.8 billion $3.9 billion 8 Note: Balances are as of June 30, 2025. References to loans HFI are loans held for investment. Five St

  7. Slide 7: Recent Rankings and Awards

    Recent Rankings and Awards Second Quarter 2025 Investor Presentation | 7 BANK EXECUTIVE AND EMPLOYEE AWARDS 40 Under 40 Newsmaker 100 List 2024 | TOP 3 BEST-PERFORMING (Banks with $3B - $10B in Assets) (Ranked in Top 10% of Community Banks in the Nation) Power 100 List C-Suite Award Champions for DE

  8. Slide 8: Financial Highlights

    Financial Highlights Second Quarter 2025 Investor Presentation | 8

  9. Slide 9: Financial Highlights

    Financial Highlights Second Quarter 2025 Investor Presentation | 9 (dollars in thousands, except per share data) For the three months ended 6/30/2025 3/31/2025 6/30/2024 Profitability Net income $ 14,508 $ 13,111 $ 10,782 Return on average assets ("ROAA") 1.37 % 1.30 % 1.23 % Return on average equit

  10. Slide 10: Financial Highlights - June 30, 2025

    Financial Highlights - June 30, 2025 Second Quarter 2025 Investor Presentation | 10 Growth • Continued balance sheet growth with increases in loans held for investment of $136.2 million and non-wholesale(1) deposits of $191.6 million since March 31, 2025. Funding • Non-interest-bearing deposits comp

  11. Slide 11: Consistent and Organic Asset Growth

    $811 $840 $973 $1,272 $1,480 $1,954 $2,557 $3,227 $3,593 $4,053 $4,413 $1,806 $2,535 $148 $22 Total Assets Excluding PPP Loans PPP Loans 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Q2 2025 Consistent and Organic Asset Growth Second Quarter 2025 Investor Presentation | 11 Note: Dollars are in m

  12. Slide 12: Earnings Track Record

    Earnings Track Record Second Quarter 2025 Investor Presentation | 12 Ea rn in gs (i n M ill io ns ) Q uarterly Earnings per Share $15.9M $17.2M $18.0M $20.7M $20.3M $22.6M $15.0M $15.2M $15.2M $19.4M $18.4M $20.1M $0.62 $0.51 $0.52 $0.63 $0.62 $0.68 Pre-tax, pre-provision income Pre-tax income Quart

  13. Slide 13: Operating Metrics

    Operating Metrics Second Quarter 2025 Investor Presentation | 13 Efficiency RatioNet Interest Margin 3.75% 3.42% 3.32% 3.49% 2022 2023 2024 2025 YTD 36.90% 40.35% 43.19% 41.77% 2022 2023 2024 2025 YTD Note: All 2025 figures are through June 30, 2025.

  14. Slide 14: Non-interest Income and Expense Comparison

    Non-interest Income and Expense Comparison Second Quarter 2025 Investor Presentation | 14 (dollars in thousands) For the three months ended 6/30/2025 3/31/2025 6/30/2024 Non-interest Income Service charges on deposit accounts $ 196 $ 215 $ 189 Gain on sale of loans 119 125 449 Loan-related fees 468

  15. Slide 15: Shareholder Returns

    Shareholder Returns Second Quarter 2025 Investor Presentation | 15 ROAA ROAE Value per Share (book and tangible book(2)) Note: All 2025 figures are through June 30, 2025. 1. Cash dividend payout ratio on common stock is calculated as dividends on common shares divided by basic earnings per common sh

  16. Slide 16: Loans and Credit Quality

    Loans and Credit Quality Second Quarter 2025 Investor Presentation | 16

  17. Slide 17: 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 $3,758 $148 $22 4.96% 4.82% 4.75% 5.52% 5.71% 5.83% 5.98% 6.01% 6.02% 6.09% 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 2

  18. Slide 18: Loan Portfolio Composition

    Commercial real estate, 81.55% Commercial construction, 2.99% Residential construction, 0.15% Residential, 0.88% Farmland, 1.37% Commercial land and development, 0.04% Secured, 4.62% Unsecured, 1.00% Consumer and other, 7.40% Loan Portfolio Composition Second Quarter 2025 Investor Presentation | 18

  19. Slide 19: CRE Collateral Values

    $936M $389M $282M $239M $229M $195M $191M $158M $448M $1,660M $693M $576M $545M $488M $404M $503M $364M $939M 61.15% 59.36% 55.24% 51.51% 53.31% 56.68% 46.85% 52.54% 55.18% Loan Balance Collateral Value Weighted Average Loan-to-Value Manufactured home community RV Park Retail Industrial Multifamily

  20. Slide 20: Loan Portfolio Diversification

    CA, 57.3% TX, 7.6% NC, 3.2% FL, 2.7% AZ, 2.5% OR, 2.2% NV, 2.1%TN, 2.0%GA, 1.8%WA, 1.7% CO, 1.2% PA, 1.2% MO, 1.2% WI, 1.1% Other, 12.2% CML Term CRE NOO, 35.4% CML Term Multifamily, 30.9% CML Term CRE OO, 14.8% CSM Unsecured, 7.2% CML Secured, 3.1% CML Const CRE, 3.0%CML Term Ag RE, 1.4% Others, 4.

  21. Slide 21: Loan Rollforward

    Loan Rollforward Second Quarter 2025 Investor Presentation | 21Note: 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 $319 $(51) $(155) $(99) $(119) $(

  22. Slide 22: Loan Yield Composition

    Loan Yield Composition Second Quarter 2025 Investor Presentation | 22Note: Dollars are in millions. Balances are net book value as of June 30, 2025, before allowance for credit losses and deferred loan fees. Weighted average rate as of June 30, 2025 and based upon outstanding principal. Fixed, 26.9%

  23. Slide 23: Asset Quality

    1.48% 1.20% 1.02% 1.12% 1.07% 1.08% 1.07% 0.12% 0.04% 0.07% 0.11% 0.12% 0.02% 0.04% Allowance for Credit Losses to Loans HFI Net Charge-offs to Average Loans HFI 2020 2021 2022 2023 2024 Q1 2025 Q2 2025 Asset Quality Second Quarter 2025 Investor Presentation | 23 Nonperforming Loan Trend Allowance f

  24. Slide 24: Allocation of Allowance for Credit Losses

    Allocation of Allowance for Credit Losses Second Quarter 2025 Investor Presentation | 24 (dollars in thousands) December 31, 2024 March 31, 2025 June 30, 2025 Allowance for Credit Losses Amount % of Total % of Loans to Total Loans Amount % of Total % of Loans to Total Loans Amount % of Total % of Lo

  25. Slide 25: Risk Grade Migration

    Risk Grade Migration Second Quarter 2025 Investor Presentation | 25 Classified Loans (Loans Rated Substandard or Doubtful) (dollars in thousands) 2023 2024 Q1 2025 Q2 2025 Real estate: Commercial $ 1,892 $ 2,587 $ 3,653 $ 4,170 Commercial land and development — — — — Commercial construction — — — —

  26. Slide 26: Deposit and Capital Overview

    Deposit and Capital Overview Second Quarter 2025 Investor Presentation | 26

  27. Slide 27: Strong Deposit Growth

    $1.8B $2.3B $2.8B $3.0B $3.6B $3.7B $3.9B $889M $1,001M $1,228M $1,409M $1,650M $1,706M $1,826M $701M $902M $971M $831M $923M $934M $1,004M $146M $279M $240M $320M $315M $296M $292M $104M $343M $467M $670M $801M $772M 7,124 8,162 9,832 11,855 13,500 14,041 14,562 Money Market & Savings Non-Interest-

  28. Slide 28: Diversified Funding

    Diversified Funding Second Quarter 2025 Investor Presentation | 28 Total Deposits(1) = $3.9 billion 97.5% of Total Liabilities Liability Mix(1) 1. Balances are as of June 30, 2025. 2. Loan balance in loan to deposit ratio is total loans held for investment and sale at period end. Loan(2) to Deposit

  29. Slide 29: Deposit Composition

    Government, 21.85% Other, 20.90% Commercial Real Estate & Construction, 14.19% Small to Medium Sized Business, 9.26% Professional Service Practice, 8.34% Non-profit, 7.11% Healthcare & Practice, 6.88% Manufactured Home Community, 6.02%Venture Banking, 2.07% Faith-based, 2.03% Agriculture & Ag Tech,

  30. Slide 30: Capital Ratios

    Capital Ratios Second Quarter 2025 Investor Presentation | 30 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% 10.03% 2020 2021 2022 2023 2024 Q2 2025 8.98% 11.44% 8.99% 9.07%

  31. Slide 31: Mission and community support

    We strive to become the top business bank in all markets we serve through exceptional service, deep connectivity, and customer empathy. We are dedicated to serving real estate, agricultural, faith-based, and small to medium-sized enterprises. We aim to consistently deliver value that meets or exceed

  32. Slide 32: 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

  33. Slide 33: Appendix: Non-GAAP Reconciliation (Unaudited)

    Appendix: Non-GAAP Reconciliation (Unaudited) Second Quarter 2025 Investor Presentation | 33 (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 6/30/2025 Total assets $ 1,954 $ 2,557 $ 3,227 $ 3,593 $ 4,053 $ 4,413 Less: PPP loans 148

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