Five Star Bancorp · NASDAQ:FSBC
Five Star Bancorp — Q4 2024 Earnings Presentation
32 slides from Five Star Bancorp's earnings presentation, 2025
Slide 1: Investor Presentation Fourth Quarter and Year End 2024
Investor Presentation Fourth Quarter and Year End 2024
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 • Company Overview • Financial Highlights • Loans and Credit Quality • Deposit and Capital Overview • Financial Results Fourth Quarter 2024 Investor Presentation | 3
Slide 4: Company Overview
Company Overview Fourth Quarter 2024 Investor Presentation | 4
Slide 5: Executive Team
Executive Team James Beckwith John Dalton DJ Kurtze Mike Lee Heather Luck President and Senior Vice President and Executive Vice President and Senior Vice President and Executive Vice President and Chief Executive Officer Chief Credit Officer San Francisco Bay Area President Chief Regulatory Officer
Slide 6: Company Overview
Company Overview Nasdaq: FSBC Headquarters: Rancho Cordova, CA Asset Size: $4.1 billion Loans HFI: $3.5 billion Deposits: $3.6 billion Bank Branches: 8 Five Star is a community business bank that was founded to serve the commercial real estate industry. Today, the markets we serve have expanded to m
Slide 7: Financial Highlights
Financial Highlights Fourth Quarter 2024 Investor Presentation | 7
Slide 8: Consistent and Organic Asset Growth
Consistent and Organic Asset Growth $4,053 $3,887 (1) CAGR 5 years 10 years $3,634 $3,593 $3,476 Total Assets 22.33% 20.97% $3,227 $2,557 $22 $1,954 $148 $1,480 $1,272 $2,535 $973 $811 $840 $1,806 $604 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 (2) Total Assets
Slide 9: Financial Highlights - December 31, 2024
Financial Highlights - December 31, 2024 • Continued balance sheet growth with increases in loans held for investment of $451.0 million and Growth increases in deposits of $531.1 million since December 31, 2023. • Non-interest-bearing deposits comprised 25.93% of total deposits, compared to 26.67% a
Slide 10: Loans and Credit Quality
Loans and Credit Quality Fourth Quarter 2024 Investor Presentation | 10
Slide 11: Consistent Loan Growth
Consistent Loan Growth Quarterly Trend Annual Trend 3,500 3,500 $3,461 $3,533 $3,533 CAGR (1) 5 years $3,266 3,000 $3,082 $3,104 3,000 $3,082 Total Loans 24.51% Total Loans Held for Investment (Millions) Total Loans Held for Investment (Millions) $3,010 $2,870 $2,927 6.01% $2,791 5.98% 2,500 2,500 5
Slide 12: Loan Portfolio Composition
Loan Portfolio Composition Consumer and Types of collateral securing Loan Balance # of other, 7.90% % of CRE commercial real estate ("CRE") loans ($000s) Loans Commercial Manufactured home community $ 891,935 405 31.22 % Unsecured, 0.78% RV Park 371,733 125 13.01 % Commercial Retail 283,394 94 9.92
Slide 13: CRE Collateral Values
CRE Collateral Values 61.54% 60.50% $1,750M $1,586M 56.59% 55.67% $1,500M 54.65% 52.50% 52.24% 51.40% $1,250M 45.91% $1,000M $892M Loan Balance $855M Collateral Value $750M $648M Weighted Average Loan-to-Value $570M $500M $492M $500M $405M Total CRE Weighted Average $372M $361M $372M $338M $283M Loa
Slide 14: Loan Portfolio Diversification
Loan Portfolio Diversification We focus primarily on commercial lending, with an emphasis on commercial real estate. We offer a variety of loans to small and medium-sized businesses, professionals, and individuals, including commercial real estate, commercial land and construction, and farmland loan
Slide 15: Loan Rollforward
Loan Rollforward $390 $334 $254 $263 Originations & Advances $135 $135 $144 $150 Paydowns Payoffs $(38) $(39) $(59) $(51) $(18) $(13) $(99) $(13) $(119) $(158) $(155) $(77) $(41) $(72) $(39) $(73) Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Beginning Balance $ 2,791 $ 2,870 $ 2,9
Slide 16: Asset Quality
Asset Quality Our primary objective is to maintain a high level of asset quality in our loan portfolio. Therefore, we: – Place emphasis on our commercial portfolio, where we reevaluate risk assessments as a result of reviewing commercial property operating statements and borrower financials – Monito
Slide 17: Allocation of Allowance for Credit Losses
Allocation of Allowance for Credit Losses (in thousands) December 31, 2023 March 31, 2024 June 30, 2024 September 30, 2024 December 31, 2024 Allowance for Credit Losses Amount % of Total Amount % of Total Amount % of Total Amount % of Total Amount % of Total Real estate: Commercial $ 29,015 84.27 %
Slide 18: Risk Grade Migration
Risk Grade Migration Classified Loans (Loans Rated Substandard or Doubtful) (in thousands) 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Real estate: Commercial $ 1,892 $ 1,852 $ 1,822 $ 1,787 $ 2,587 Commercial land and development — — — — — Commercial construction — — — — — Residential construction — — — —
Slide 19: Deposit and Capital Overview
Deposit and Capital Overview Fourth Quarter 2024 Investor Presentation | 19
Slide 20: Strong Deposit Growth
Strong Deposit Growth $3.6B $3.4B CAGR (1) 5 years $3.1B $670M $3.0B $491M $3.0B Total Deposits 22.09% $333M $2.8B $467M $288M $324M $300M $315M $343M $296M $2.3B $320M $240M $104M Money Market & Savings $826M $907M $923M Non-Interest-Bearing Demand $279M $1.8B $817M Interest-Bearing Demand $48M $83
Slide 21: Diversified Funding
Diversified Funding Liability Mix Loan(2) to Deposit Ratio 102.2% 105.4% 103.9% 101.9% 100.7% 99.4% 90.5% 84.5% 85.1% Non-Interest- Bearing Demand, 25.2% Money Market, 41.7% Time 2019 2020 2021 2022 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Deposits, 18.3% Non-Interest-Bearing Deposits to Total Deposits
Slide 22: Deposit Composition
Deposit Composition Total Deposits by Relationship Size Total Deposits by Market Vertical Local Agency Breakout Commercial Real Other, Estate and 18.22% Local Agency Construction, Depositors, 15.65% Relationships 23.00% ≤ $5 million, Small to Medium 38.87% Sized Business, Relationships Government, 9
Slide 23: Capital Ratios
Capital Ratios Tier 1 Leverage Ratio Common Equity Tier 1 to RWA 10.05% 11.44% 11.02% 9.47% 8.60% 8.73% 7.51% 8.98% 8.99% 9.07% 8.21% 6.58% 2019 2020 2021 2022 2023 2024 2019 2020 2021 2022 2023 2024 Tier 1 Capital to RWA Total Capital to RWA 11.44% 11.02% 13.98% 13.99% 12.18% 12.46% 12.30% 8.98% 8.
Slide 24: Financial Results
Financial Results Fourth Quarter 2024 Investor Presentation | 24
Slide 25: Financial Highlights
Financial Highlights (in thousands, except per share data) For the three months ended For the year ended 12/31/2024 9/30/2024 12/31/2023 12/31/2024 12/31/2023 Net income $ 13,317 $ 10,941 $ 10,799 $ 45,671 $ 47,734 Return on average assets ("ROAA") 1.31 % 1.18 % 1.26 % 1.23 % 1.44 % Profitability Re
Slide 26: Operating Metrics
Operating Metrics Net Interest Margin Efficiency Ratio 3.75% 43.19% 40.35% 36.90% 3.42% 3.32% 2022 2023 2024 2022 2023 2024 Total Income Before Taxes $66.6M $64.7M $62.9M 2022 2023 2024 Note: All 2024 figures are through December 31, 2024. Fourth Quarter 2024 Investor Presentation | 26
Slide 27: Earnings Track Record
Earnings Track Record Quarterly Trend of Pre-Tax, Pre-Provision Income(1) Annual Trend $22.5M $80.0M $20.7M $71.7M $69.6M $70.6M $20.0M $19.4M $70.0M $18.4M $66.6M $18.0M $64.7M $62.9M $17.5M $16.8M $17.2M $16.0M $15.9M $60.0M $15.0M $50.0M $12.5M $40.0M $10.0M $30.0M $7.5M $20.0M $5.0M $2.5M $10.0M
Slide 28: Non-interest Income and Expense Comparison
Non-interest Income and Expense Comparison (in thousands) For the three months ended For the year ended 12/31/2024 9/30/2024 12/31/2023 12/31/2024 12/31/2023 Service charges on deposit accounts $ 179 $ 165 $ 165 $ 721 $ 575 Net gain (loss) on sale of securities — — (167) — (167) Gain on sale of loan
Slide 29: Shareholder Returns
Shareholder Returns ROAA ROAE 1.57% 18.80% 17.85% 1.44% 1.23% 12.72% 2022 2023 2024 2022 2023 2024 EPS (basic and diluted) Value per Share (book and tangible book(1)) $2.78 $18.60 $2.61 $2.26 $16.56 $14.66 2022 2023 2024 2022 2023 2024 Note: All 2024 figures are through December 31, 2024. 1. See App
Slide 30: We strive to become the top business bank in all markets we serve
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 supplement
Slide 32: Appendix: Non-GAAP Reconciliation (Unaudited)
Appendix: Non-GAAP Reconciliation (Unaudited) (in thousands) Three months ended Year ended Average loan yield, excluding PPP loans 3/31/23 6/30/23 9/30/23 12/31/23 3/31/24 6/30/24 9/30/24 12/31/24 12/31/20 12/31/21 12/31/22 12/31/23 12/31/24 Interest and fee income on loans $ 37,494 $ 39,929 $ 41,86