Five Star Bancorp (FSBC) Earnings Call Transcript

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Tuesday, April 29, 2025 astatine 1 p.m. ET

• President & Chief Executive Officer — James Beckwith

• Executive Vice President & Chief Financial Officer — Heather Luck

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James Beckwith: Thank you for joining america to reappraisal Five Star Bancorp's fiscal results for the archetypal 4th of 2025. Joining maine contiguous is Heather Luck, Executive Vice President and Chief Financial Officer. Our comments contiguous volition notation to the fiscal accusation that was included successful the net announcement released yesterday. To get a transcript of the release, delight sojourn our website astatine fivestarbank.com and click connected the Investor Relations tab. The archetypal 4th of 2025 was a continuation of gathering spot successful our humanities markets, arsenic good arsenic our enlargement into the San Francisco Bay Area.

We added 4 much seasoned professionals to enactment our enlargement into the San Francisco Bay Area and continued to adhd caller halfway deposit accounts and relationships, arsenic seen successful the summation of non-wholesale deposits of $48.4 cardinal during the 3 months ended March 31st, 2025. In the archetypal quarter, we maintained our quality to conservatively underwrite arsenic evidenced by a 50.03% LTV connected commercialized existent estate, negociate expenses with our 42.58% ratio ratio, and present worth to our shareholders with our $0.20 per stock dividend that declared successful the archetypal 4th of 2025. Additionally, successful the archetypal quarter, we improved our nett involvement borderline by 9 ground points and grew our full loans, assets, and deposits implicit anterior periods.

Total loans held for concern accrued during the 4th by $89.1 cardinal oregon 2.52% from the anterior quarter. Average indebtedness yields accrued by 1 ground constituent from the anterior 4th to 6.02%. The commercialized existent property conception of the indebtedness portfolio accrued astir importantly 4th implicit 4th from 80.75% of our indebtedness portfolio -- excuse me, portfolio arsenic of December 31st, 2024 to 81.11% astatine March 31st, 2025. Our commercialized existent property attraction is acceptable isolated by the diversification wrong the portfolio and our quality to conservatively underwrite arsenic evidenced by 50.03% LTV. Our pipeline continues to stay coagulated astatine the extremity of the archetypal 4th of 2025 wrong the verticals successful which we person historically operated.

Our indebtedness originations during the archetypal 4th were $259.3 million, portion payoffs and paydowns were $65.6 cardinal and $104.6 million, respectively. Asset prime continues to stay strong. Non-performing loans remained astatine 0.05% of loans held for concern from the extremity of the anterior 4th to the extremity of the archetypal 4th of 2025. At the extremity of the archetypal quarter, the allowance for indebtedness losses totaled $39.2 million. We recorded a $1.9 cardinal proviso for recognition losses during the archetypal 4th of 2025, reflecting adjustments to expectations for recognition losses based upon economical trends and forecasts. The ratio of the allowance for recognition losses to loans held for concern was 1.08% astatine 4th end.