Five Star Bancorp · NASDAQ:FSBC
Five Star Bancorp — Q1 2025 Earnings Presentation
32 slides from Five Star Bancorp's earnings presentation, 2025
Slide 1: Five Star Bancorp First Quarter 2025 Presentation
rege FIVE STAR BANCORP Sa S 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 • Company Overview • Financial Highlights • Loans and Credit Quality • Deposit and Capital Overview • Financial Results First Quarter 2025 Investor Presentation | 3
Slide 4: Company Overview
Company Overview First Quarter 2025 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: $4.2 billion Loans HFI: $3.6 billion Deposits: $3.7 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 First Quarter 2025 Investor Presentation | 7
Slide 8: Consistent and Organic Asset Growth
Consistent and Organic Asset Growth $4,245 $4,053 (1) CAGR 5 years 10 years $3,593 Total Assets 20.03 % 19.59 % $3,227 $2,557 $22 $1,954 $148 $1,480 $1,272 $2,535 $973 $811 $840 $1,806 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Q1 2025 (2) Total Assets Excluding PPP Loans PPP Loans Note: Doll
Slide 9: Financial Highlights - March 31, 2025
Financial Highlights - March 31, 2025 • Continued balance sheet growth with increases in loans held for investment of $89.1 million Growth and non-wholesale(1) deposits of $48.4 million since December 31, 2024. • Non-interest-bearing deposits comprised 24.99% of total deposits, as compared to 25.93%
Slide 10: Loans and Credit Quality
Loans and Credit Quality First Quarter 2025 Investor Presentation | 10
Slide 11: Consistent Loan Growth
Consistent Loan Growth 3,500 CAGR (1) 5 years $3,622 $3,533 $3,461 Total Loans 22.99 % $3,266 3,000 $3,082 $3,104 $2,791 2,500 Total Loans (Millions) 2,000 $22 $1,912 5.98% 6.01% 6.02% 5.83% 1,500 5.71% $148 $1,355 5.52% 1,000 500 4.82% 4.75% 4.96% 0 2020 2021 2022 2023 Q1 2024 Q2 2024 Q3 2024 Q4 20
Slide 12: Loan Portfolio Composition
Loan Portfolio Composition Types of collateral securing Loan Balance # of % of CRE commercial real estate ("CRE") loans ($000s) Loans Consumer and PPP, 0.00% other, 7.64% Manufactured home community $ 918,864 419 31.24 % Unsecured, 0.96% RV Park 378,525 125 12.87 % Secured, 4.77% Retail 272,441 96 9
Slide 13: CRE Collateral Values
CRE Collateral Values 61.11% 60.27% $1,750M $1,638M 57.56% 55.50% 54.21% $1,500M 52.96% 51.68% $1,250M $1,215M 46.29% $1,000M $919M Loan Balance Collateral Value $750M $661M Weighted Average Loan-to-Value $550M $528M $563M $498M $500M $379M $393M $395M Total CRE Weighted Average $272M Loan-to-Value
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 $263 $259 Originations & Advances $150 Paydowns Payoffs $(51) $(99) $(119) $(105) $(155) $(77) $(41) $(66) $(72) $(73) Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Beginning Balance $ 3,082 $ 3,104 $ 3,266 $ 3,461 $ 3,533 Ending Balance $ 3,104 $ 3,266 $ 3,461 $ 3,533 $ 3,622 N
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 (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 0.21 % 70 0.18 % Commercial construction 2,268
Slide 18: Risk Grade Migration
Risk Grade Migration 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 construction — — — Residential — — — Farmland — — — Com
Slide 19: Deposit and Capital Overview
Deposit and Capital Overview First Quarter 2025 Investor Presentation | 19
Slide 20: Strong Deposit Growth
Strong Deposit Growth $3.7B $3.6B CAGR (1) 5 years $801M $670M $3.0B Total Deposits 19.00 % $2.8B $467M $315M $296M $343M $2.3B $320M $240M $104M $923M $934M Money Market & Savings $279M Non-Interest-Bearing Demand $1.8B $831M $48M $971M Interest-Bearing Transaction $146M Time Deposits $902M $701M $
Slide 21: Diversified Funding
Diversified Funding Liability Mix(1) Loan(2) to Deposit Ratio 100.7% 102.2% 99.4% 97.0% 84.5% 85.1% Non-Interest- Bearing Demand, 24.3% Money Market, Time Deposits, 41.1% 20.9% 2020 2021 2022 2023 2024 Q1 2025 Interest- Bearing Non-Interest-Bearing Deposits to Total Deposits Transaction, 7.7% 39.3%
Slide 22: Deposit Composition
Deposit Composition Total Deposits by Relationship Size Total Deposits by Market Vertical Local Agency Breakout (1) Commercial Other, Real Estate & Local Agency 22.14% Construction, (2) Depositors, Relationships 13.65% 22.46% ≤ $5 million, Small to Medium Sized 39.13% Business, 8.99% Relationships (
Slide 23: Capital Ratios
Capital Ratios Tier 1 Leverage Ratio Common Equity Tier 1 to RWA 11.44% 11.02% 11.00% 10.05% 10.17% 9.47% 8.98% 8.99% 9.07% 8.60% 8.73% 6.58% 2020 2021 2022 2023 2024 Q1 2025 2020 2021 2022 2023 2024 Q1 2025 Tier 1 Capital to RWA Total Capital to RWA 11.44% 11.02% 11.00% 13.98% 13.99% 13.97% 12.18%
Slide 24: Financial Results
Financial Results First Quarter 2025 Investor Presentation | 24
Slide 25: Financial Highlights
Financial Highlights (dollars in thousands, except per share data) For the three months ended 3/31/2025 12/31/2024 3/31/2024 Net income $ 13,111 $ 13,317 $ 10,631 Return on average assets ("ROAA") 1.30 % 1.31 % 1.22 % Profitability Return on average equity ("ROAE") 13.28 % 13.48 % 14.84 % Earnings p
Slide 26: Operating Metrics
Operating Metrics Net Interest Margin Efficiency Ratio 3.75% 43.19% 42.58% 40.35% 36.90% 3.45% 3.42% 3.32% 2022 2023 2024 2025 YTD 2022 2023 2024 2025 YTD Note: All 2025 figures are through March 31, 2025. First Quarter 2025 Investor Presentation | 26
Slide 27: Earnings Track Record
Earnings Track Record $22.5M $20.7M $20.3M $20.0M $19.4M $18.0M $18.4M $17.5M $17.2M $15.9M $15.0M $15.2M $15.2M $15.0M $12.5M $10.0M $7.5M $5.0M $2.5M $0.0M Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 (1) Pre-tax, pre-provision income Pre-tax income 1. A reconciliation of this non-GAAP measure is set f
Slide 28: Non-interest Income and Expense Comparison
Non-interest Income and Expense Comparison (dollars in thousands) For the three months ended 3/31/2025 12/31/2024 3/31/2024 Service charges on deposit accounts $ 215 $ 179 $ 188 Gain on sale of loans 125 150 369 Loan-related fees 448 400 429 Non-interest FHLB stock dividends 331 332 332 Income Earni
Slide 29: Shareholder Returns
Shareholder Returns ROAA ROAE 1.57% 18.80% 17.85% 1.44% 1.23% 1.30% 12.72% 13.28% 2022 2023 2024 2025 YTD 2022 2023 2024 2025 YTD Value per Share (book and tangible book(1)) $18.60 $19.06 $16.56 $14.66 2022 2023 2024 2025 YTD Note: All 2025 figures are through March 31, 2025. 1. A reconciliation of
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 supplemen
Slide 32: Appendix: Non-GAAP Reconciliation (Unaudited)
Appendix: Non-GAAP Reconciliation (Unaudited) (dollars in thousands) Year ended Three months ended Average loan yield, excluding PPP loans 12/31/2020 12/31/2021 12/31/2022 12/31/2023 3/31/2024 6/30/2024 9/30/2024 12/31/2024 3/31/2025 Interest and fee income on loans $ 71,405 $ 78,894 $ 111,795 $ 162