Five Star Bancorp (FSBC) Earnings Transcript

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DATE

Thursday, July 24, 2025 astatine 1 p.m. ET

CALL PARTICIPANTS

• President and Chief Executive Officer — James Eugene Beckwith

• Executive Vice President and Chief Financial Officer — Heather Christina Luck

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TAKEAWAYS

• Net Income -- $14.5 cardinal with reported net per stock of $0.68.

• Return connected Average Assets -- 1.37% for the 4th arsenic disclosed successful prepared remarks.

• Return connected Average Equity -- Reached 14.17% during the period.

• Net Interest Margin -- Expanded 8 ground points to 3.53% from the anterior quarter.

• Cost of Total Deposits -- Declined by 2 ground points sequentially to 2.46%.

• Efficiency Ratio -- Management cited a ratio of 41.03% for operating expenses to revenues.

• Loans Held for Investment -- Increased by $136.2 million, equating to a 15% annualized rate.

• Total Deposit Growth -- Rose $158.3 million, representing a 17% annualized increase.

• Nonperforming Loans -- Represented 6 ground points of full loans, with an summation of $0.5 cardinal attributed to 1 commercialized existent property indebtedness placed connected nonaccrual status.

• Dividend Declaration -- Board approved a $0.20 per stock currency dividend, with outgo anticipated successful August.

• Commercial Real Estate Loan Portfolio -- Grew by $125.4 million, contributing to full plus gains of $168.4 cardinal successful the quarter.

• Provision for Credit Losses -- Totaled $2.5 cardinal arsenic recorded for the reporting period.

• Interest-Bearing Deposits -- Expanded by $87.4 cardinal principally done caller wealth marketplace accounts.

• Noninterest-Bearing Deposits -- Increased by $68.7 million, raising their stock to 26% of full deposits from 25% sequentially.

• Deposit Relationship Tenure -- 59.9% of deposit relationships transcend $5 cardinal each, averaging 8.3 years successful duration.

• Net Interest Income -- Rose $2.5 cardinal 4th implicit 4th owed to indebtedness measurement and improved yields, partially offset by a $1 cardinal summation successful deposit-related involvement expense.

• Noninterest Income -- Grew to $1.8 cardinal from $1.4 cardinal sequentially owing to improved returns from venture-backed money investments.

• Noninterest Expense -- Increased by $700,000, chiefly from concern development-related spending, with immoderate offset from higher deferred indebtedness origination costs.

• Business Development Hiring -- Added 5 caller officers and expanded headcount to 40 concern improvement professionals.

• Bay Area Presence -- San Francisco Bay Area squad present totals 34 employees supporting $456.9 cardinal successful deposits.

• Walnut Creek Office -- Scheduled for opening successful September 2025 to further determination expansion.

• Food and Agribusiness Vertical -- New squad led by Cliff Cooper targets ample middle-market C&I credits successful West Coast agriculture processing.

• CRE Segment Growth Drivers -- Reported gains centered successful mobile home, RV park, storage, multifamily, pupil housing, and prime bureau properties with “new equity” and blimpish leverage of 50%-60% cited for hazard mitigation.

• Bankers Health Group Loan Purchases -- $44 cardinal successful purchases during the quarter, keeping balances adjacent a $300 cardinal people arsenic portion of a renewal strategy.

• New Loan Production Yield -- Weighted mean complaint of 7.03% cited for caller originations, contributing to output expansion.

• Tax Rate Guidance -- Management advised modeling an effectual taxation complaint adjacent 26.65% for the remainder of 2025, reflecting statutory changes.

• Expense Expectations -- Walnut Creek opening projected to summation adjacent quarter’s noninterest disbursal by $500,000 to $750,000.

• Efficiency Improvements -- Management confirmed nary important back-office oregon exertion concern needs, indicating incremental enactment hires arsenic warranted by concern growth.

• Full-Year Loan Growth Outlook -- Leadership reaffirmed 10%-12% guidance based connected existent pipeline, pay-off expectations, and lending environment.

SUMMARY

Management highlighted ongoing franchise expansion, including launching a caller agribusiness squad to diversify indebtedness origination and little portfolio attraction successful commercialized existent estate, straight supported by beardown caller hiring initiatives. Regional deposit franchise spot was underscored by a rising premix of long-tenured, high-balance, noninterest-bearing accounts, supporting a unchangeable backing basal done the quarter. Asset output enlargement reflected some repricing of existing CRE publication and strategical caller indebtedness accumulation astatine importantly higher rates comparative to bequest vintages.

• James Eugene Beckwith described the San Francisco Bay Area, particularly Walnut Creek and the East Bay, arsenic offering continued concern improvement opportunity, with aboriginal enlargement successful the South Bay identified arsenic the apt adjacent step.

• Heather Christina Luck projected Q3 disbursal maturation from Walnut Creek’s opening betwixt $500,000 and $750,000, providing circumstantial guidance connected outgo operation changes for capitalist modeling.

• Current concern improvement headcount and caller vertical launches were presented arsenic cardinal drivers of narration acquisition and indebtedness pipeline momentum heading into the past fractional of 2025.

• The proportionality of deposits supra $5 million—at 59.9% with agelong tenure—was cited by absorption arsenic grounds of relationship-driven deposit stableness supporting continued growth.

• Management’s commentary positioned incremental operating leverage and borderline gains arsenic possible, but not a ceremonial ratio target, citing ongoing maturation investments and supportive operating leverage.

INDUSTRY GLOSSARY

• CRE: Commercial existent property loans, encompassing income-producing spot lending, including multifamily, office, storage, and specialty lodging segments.

• C&I: Commercial and concern loans focused connected operating companies, chiseled from existent property collateral-based lending.

• Nonaccrual Status: Loan classification wherever involvement income is nary longer accrued owed to recognition concerns oregon outgo delinquency.

• Efficiency Ratio: The ratio of noninterest disbursal to full revenue, reflecting operational outgo subject wrong banking institutions.

Full Conference Call Transcript

James Eugene Beckwith: Thank you for joining america to reappraisal Five Star Bancorp's fiscal results for the 2nd 4th of 2025, which were released yesterday. The merchandise is disposable connected our website astatine fivestarbank.com nether the Investor Relations tab. Joining maine contiguous is Heather Luck, Executive Vice President and Chief Financial Officer. The spot of our 2nd 4th results is emblematic of our differentiated lawsuit acquisition done our unwavering committedness to clients and assemblage partners passim Northern California. Financial highlights during the 2nd 4th included $14.5 cardinal of nett income, net per stock of $0.68, instrumentality connected mean assets of 1.37% and instrumentality connected mean equity of 14.17%.

Our nett involvement borderline expanded by 8 ground points to 3.53% and our outgo of full deposits declined by 2 ground points to 2.46%. Our ratio ratio was 41.03% for the 2nd quarter. During the 2nd quarter, we saw continued equilibrium expanse maturation arsenic loans held for concern grew by $136.2 cardinal oregon 15% connected an annualized basis. Deposit maturation was astir $158.3 cardinal oregon 17% connected an annualized basis. Our plus prime remains beardown with nonperforming loans representing lone 6 ground points of full loans held for investment. We proceed to beryllium good capitalized with each superior ratios good supra regulatory thresholds for the quarter.

On July 17, our Board declared a currency dividend of $0.20 per stock connected the company's communal banal expected to beryllium paid successful August. We proceed to present worth to our shareholders. Our full assets accrued during the 2nd 4th by $168.4 million, mostly driven by indebtedness portfolio maturation wrong our commercialized existent property portfolio, which grew by $125.4 million. Our indebtedness pipeline remains strong. The recognition prime of our wide indebtedness portfolio remains beardown owed to our blimpish underwriting practices, robust monitoring programme passim the beingness of a indebtedness and our relationship-based attack to lending. As a result, we person a precise debased measurement of nonperforming loans contempt a $0.5 cardinal summation during the 2nd quarter.

This summation was owed to 1 commercialized existent property indebtedness being enactment connected nonaccrual presumption during the quarter. We recorded a $2.5 cardinal proviso for recognition losses during the quarter. The summation successful our full liabilities during the 2nd 4th was chiefly the effect of summation successful some interest-bearing and noninterest-bearing deposits. Interest-bearing deposit maturation was mostly owed to caller wealth marketplace deposit accounts being opened successful the quarter, pushing $87.4 cardinal successful caller balances. Noninterest-bearing deposits was chiefly driven by the opening of caller accounts during the quarter, pushing $68.7 cardinal successful caller balance. Noninterest-bearing deposits made up 26% of full deposits arsenic of June 30, 2025, an summation from 25% arsenic of the extremity of the anterior quarter.

Approximately 59.9% of our deposit relationships totaled much than $5 million. These deposits person a agelong tenure with the slope with an mean property of 8.3 years. We judge our deposit portfolio to beryllium a unchangeable backing basal for our aboriginal growth. Heather?

Heather Christina Luck: Thank you, James. Net involvement income accrued $2.5 cardinal from the erstwhile quarter, chiefly owed to a $3.5 cardinal summation successful involvement income, driven by indebtedness maturation and betterment successful the mean output connected loans. This is partially offset by a $1 cardinal summation successful involvement disbursal related to deposit growth. Noninterest income accrued to $1.8 cardinal successful the 2nd 4th from $1.4 cardinal successful the erstwhile quarter, chiefly owed to an wide betterment successful the estimated net related to investments successful venture-backed funds during the 3 months ended June 30, 2025.

Noninterest disbursal grew by $700,000 successful the 3 months ended June 30, chiefly owed to increases successful concern travel, conferences, grooming and promotional expenses associated with the enlargement of concern improvement teams. This was partially offset by an summation successful deferred indebtedness origination costs. I'll present manus it backmost to James.

James Eugene Beckwith: Thank you, Heather. During the quarter, we announced the enlargement of our nutrient and agribusiness vertical. We besides announced the expected opening of our Walnut Creek bureau successful September of 2025 and added 5 caller concern improvement officers to the squad to enactment these efforts. We proceed to turn our beingness successful the San Francisco Bay Area with 34 employees and $456.9 cardinal successful deposits arsenic of June 30, 2025. Five Star Bank has a estimation built connected trust, velocity to service and certainty of execution, each of which enactment our clients' success. Our fiscal show is the effect of a genuinely differentiated lawsuit experience, which continues to powerfulness the request for Five Star Bank's relationship-based services.

We are arrogant to person earned the spot and assurance of those we serve, including our shareholders. As we determination into the 3rd 4th of 2025, we are assured successful the company's resilience and demonstrated quality to accommodate to changing economical conditions portion remaining focused connected the aboriginal and execution of our semipermanent strategical plan. The beneficiaries of our focused concern attack are our clients, employees and community. We judge that if we enactment these constituents well, our shareholders volition recognize the benefits. We admit your clip today. This concludes today's presentation. Now we volition beryllium blessed to instrumentality immoderate questions you mightiness have.

Operator: [Operator Instructions] Our archetypal question contiguous comes from David Feaster from Raymond James.

David Pipkin Feaster: I privation to start. I mean, obviously, you guys person had bully indebtedness growth. But to me, the astir awesome happening that you guys person been capable to bash is your halfway deposit growth. I mean it is highly impressive, and I cognize it's not casual to do. Could you conscionable interaction connected wherever you're having success? Obviously, immoderate successful the Bay Area. Could you conscionable interaction connected your thoughts connected your quality to proceed to thrust halfway deposit maturation and the quality to trim deposit costs? I mean, is determination overmuch backing outgo leverage left?

James Eugene Beckwith: Well, fto maine instrumentality the archetypal portion of your question first, if I could. So we saw maturation crossed our full platform, each of our verticals and each of our geographies. And truthful I deliberation the crushed for that, David, is it's fundamentally that we've got a batch of feet connected the street. We've got 40 concern improvement officers present that are highly motivated, precise experienced and good connected into the communities and the industries they serve. So that's what's truly driving this. Everybody is having success. And we're precise supportive of those efforts. We spent a batch of time. Personally, I spent a batch of clip with them successful presumption of bringing successful caller relationships to the bank.

From a backing outgo perspective, I deliberation we've benignant of seen the extremity of immoderate effects of immoderate complaint cuts. And I cognize we're each lasting astir astatine the successful the room waiting for the Fed to chopped again. But we're not truly expecting that to happen. And we're not definite erstwhile that mightiness happen, but -- and we're not relying connected that happening. I deliberation you're seeing our backing costs volition proceed to possibly spell down conscionable a small spot more, but it's truly astir the mix.

And to the grade that we person a precise palmy past fractional of 2025 successful presumption of raising noninterest-bearing deposits, which we judge we've got immoderate truly large opportunities successful our deposit pipeline close present to execute that. So it's truly astir cardinal execution, David, and the information that we conscionable person truthful galore feet connected the street.

David Pipkin Feaster: That's great. And past possibly conscionable touching connected the Bay Area possibly a spot much broadly. I mean, you've evidently had a batch of occurrence successful San Francisco. It's been truly impressive. You've got the Walnut Creek bureau opening present soon. I'm curious, maybe, archetypal of all, could you possibly interaction connected the pulse of the Bay Area from your standpoint? And however overmuch accidental you spot near determination successful presumption of some hiring and enlargement successful that market? Obviously, it's a immense market, but conscionable benignant of funny the opportunities and the imaginable that you spot successful the Bay Area.

James Eugene Beckwith: Sure. We're excited astir the Walnut Creek opening. I was determination this week, a mates of days ago. And the concern situation successful the Bay Area, it's changed successful the past mates of years. Just instrumentality San Francisco, successful particular, there's a caller politician there, precise energetic, business-minded. I deliberation that metropolis is turning around. It's conscionable -- it's palpable successful presumption of -- conscionable if you're conscionable downtown successful the fiscal district, you conscionable get that sense. So I'm excited astir that. And Walnut Creek is simply a beauteous place. It's got a large buying district, large nutrient scene, and it's growing.

And it truly has, I think, done good conscionable arsenic a stand-alone country since the pandemic and since what I'll accidental what happened to San Francisco, you saw -- you've seen immoderate migration retired to the East Bay and peculiarly Walnut Creek. So we're excited astir what we're doing successful the Bay Area. Now aboriginal enlargement successful the Bay, I deliberation you would astir apt expect it to spot it down successful the South Bay, David. And that's -- those efforts are underway close now. I can't truly stock immoderate visibility connected that with you close now. But certainly, that's wherever we're headed.

But we've got to marque definite that our Walnut Creek operations are dependable and solid, and we're going to -- and turn robustly. We've got immoderate large concern improvement radical whose absorption is Walnut Creek successful the East Bay that person joined america successful the past twelvemonth successful the past 6 months. So -- but anyway, that's however benignant of we spot it. We're not done expanding successful the Bay and the adjacent expansion, but surely extracurricular of Walnut Creek volition astir apt beryllium determination successful the South Bay.

David Pipkin Feaster: That's great. And past possibly past 1 for me. Your concern exemplary is evidently highly scalable. You've done a large occupation driving beauteous worldly gross maturation with the infrastructure you've got, inactive continuing to invest. I mean, we're sitting present with the debased 40% ratio ratio. Look the signifier is acceptable for continued outsized indebtedness maturation and gross growth, imaginable for further borderline enlargement arsenic we proceed to reprice the backmost book. Is a sub-40% ratio ratio successful the cards? Or are determination different investments oregon expenses that you possibly accelerate conscionable fixed the spot you're seeing? Just benignant of curious, however bash you deliberation astir that?

James Eugene Beckwith: Well, we're precise keen to proceed to put successful our business. We did denote successful the 2nd 4th that we've -- we are expanding our nutrient and agribusiness business, and we've brought successful immoderate precise seasoned professionals, precise experienced that person large connectivity to the space. And truthful we're continuing to put successful our business. These folks are successful mid-career and not needfully inexpensive, fto maine accidental that much, but we're blessed to person them. And we deliberation we're going to expect large things. I azygous that out, David, conscionable arsenic an illustration of however we continuously put successful our business. And we're ever looking to adhd talent.

So to execute thing that's sub-40%, it's not needfully a extremity per se, but I could spot it happening. We bash person a batch of operating leverage successful our concern close now. So we'll spot what the remainder of the twelvemonth looks like.

Heather Christina Luck: Yes. And then, David, conscionable to adhd connected to that, portion we person expanded our headcount from a concern improvement and customer- facing side, we person besides continued to physique retired our back-office enactment teams arsenic well. So successful those mixtures, you're seeing not lone income growth, but you are seeing back-office enactment arsenic well. So from my perspective, there's nary existent important investments that we bash request to marque to either amended our exertion oregon amended the enactment side. So really, we're benignant of conscionable arsenic we go, adding much headcount to marque definite that we're supporting our customers and unit arsenic appropriate.

Operator: Our adjacent question comes from Woody Lay from KBW.

Wood Neblett Lay: Maybe conscionable 1 speedy follow-up connected expenses. Just however should we deliberation astir the tally complaint successful the 3rd 4th with the Walnut Creek bureau coming online?

Heather Christina Luck: Yes. I would say, adhd astir $500,000 to astir $750,000 for adjacent quarter. We volition person a small spot of accrued disbursal for Walnut Creek. So that should astir apt cook successful capable for your estimate.

Wood Neblett Lay: All right. Very helpful. And past I had a follow-up connected deposits arsenic good successful the noninterest-bearing segment, saw truly beardown maturation successful the quarter. I was conscionable funny however sticky bash you presumption that growth? I cognize you've got immoderate wealthier clients and wasn't definite if it was benignant of conscionable a 1 4th summation oregon if you deliberation that the leap up is sustainable from here?

James Eugene Beckwith: We judge it -- Woody, we judge it to beryllium sustainable. And arsenic we proceed to bring connected caller relationships that each of which person immoderate grade of immoderate constituent of noninterest-bearing deposits successful those relationships. So we deliberation that volition proceed to grow. There's thing that per se that stands retired successful presumption of an anomaly astatine all. It's conscionable -- it's maturation of accounts, fig one, successful caller accounts.

Wood Neblett Lay: All right. And past past for me. Just looking astatine the maturation successful the quarter, it looks similar it was mostly driven from the CRE bucket. I was conscionable funny connected the sub-verticals wherever you're seeing the champion maturation opportunities and vice versa, possibly different verticals wherever you're not looking to turn astatine this time?

James Eugene Beckwith: I deliberation we're looking to turn each of our verticals crossed the board. I mean we proceed to beryllium precise progressive successful the mobile location parkland and RV parkland abstraction on with storage. We are looking -- doing beauteous good successful I'll say, multifamily, pupil housing, successful particular. So those are areas that I deliberation that we've done a decent occupation on. And we've besides financed I would accidental immoderate bureau buildings. Now I don't privation you to get each disquieted oregon thing Woody, but these are buildings successful which there's caller capital, caller superior came to the table.

And on with this monolithic reset that's going on, caller equity comes to the table, terms per quadrate ft is present $250 to $350 a ft arsenic opposed to $900 to $1,000 a ft of what it was 5 years ago. And past we supply an due magnitude of leverage to that with the 50% to 60%. So we consciousness those loans are incredibly safe. And this is astir the turnaround that we're seeing successful particular, successful downtown San Francisco. So those peculiar categories, I think, benignant of marque up a batch of the maturation that we saw successful our CRE portfolio.

Operator: Our adjacent question comes from Gary Tenner from D.A. Davidson.

Ahmad Jamal Hasan: Ahmad Hasan connected for Gary here. Can you speech astir -- tin you springiness america a circumstantial fig connected indebtedness purchases successful this quarter? And what's successful the docket for the adjacent fractional of the year?

James Eugene Beckwith: On indebtedness purchases? Yes. See, what we're doing is conscionable maintaining our balances that we've had. I deliberation we established this astir apt past -- 3rd 4th of past year. So we're moving astir -- we effort to people $300 cardinal of what we telephone Bankers Health Group purchases, not purchases, but outstanding balance. And due to the fact that these loans amortize quickly, we perpetually person to...

Heather Christina Luck: Yes. We made during the 4th astir $44 cardinal successful purchases, but really, that's conscionable to support the attraction wrong that $300 cardinal range. So you'll spot purchases there, but it's conscionable a renewal payoff.

James Eugene Beckwith: Yes. So it's -- we're targeting an mean outstanding of astir $300 cardinal successful that -- with those loans.

Ahmad Jamal Hasan: Okay. That makes sense. And large NIM enlargement this quarter. Anything antithetic successful the indebtedness output enlargement of 7 bps.

James Eugene Beckwith: No. It's conscionable -- it's a operation of a clump of antithetic things. One, arsenic our indebtedness publication continues to reprice, astir of the loans that we bash are -- person 5-year resets connected them successful our commercialized existent property space. And truthful these loans that were enactment connected successful 2020 are present resetting. So they were resetting astatine precise debased -- from precise debased rates. So you person that impact. But you besides person each of our existent production, which is simply a overmuch higher rate. So...

Heather Christina Luck: Yes. The Q2 accumulation that we did had a weighted mean complaint of 7.03%. So that was a bully pickup to the NIM.

James Eugene Beckwith: So that's however we've been capable to grow our yields successful our indebtedness portfolio repricing one. But it's -- but truly caller accumulation is truly driving it.

Ahmad Jamal Hasan: That's large to hear. And past 1 for me. On the taxation complaint outlook for the remainder of '25 and beyond, with regards to the caller California taxation instrumentality change. Can you springiness america your outlook connected that?

Heather Christina Luck: Yes. For your modeling purposes, I would usage a taxation complaint of similar 26.83%. That's our statutory rate. We're forecasting an effectual taxation complaint of astir 26.65%. So that tends to fluctuate a small spot depending connected imperishable items, but wrong that scope should beryllium bully for your model.

James Eugene Beckwith: We were precise blessed to spot the politician motion that bill, by the way.

Operator: And our adjacent question comes from Andrew Terrell from Stephens.

Jackson Forrest Laurent: This is Jackson Laurent connected for Andrew Terrell. Most of my questions person been asked, but if I could conscionable piggyback connected indebtedness growth. Obviously, maturation was precise awesome this quarter. I judge we were talking to a 10% to 12% equilibrium expanse maturation fig for 2025 past quarter. So I was conscionable wondering if you could benignant of springiness america immoderate updates connected however you expect indebtedness maturation to inclination successful the backmost fractional of the year? And if you're besides inactive reasoning astir maturation successful the 10% to 12% scope for the afloat year?

James Eugene Beckwith: Yes. Obviously, we've done a small amended than that. But erstwhile I look astatine our pipeline and what I expect to wage off, I inactive consciousness benignant of comfy successful that peculiar range. We've got immoderate ample operation loans that volition astir apt wage disconnected sometime successful the adjacent year, and they're doing rather well. Lease-up has really done truly well. And truthful we expect them to astir apt get enactment to furniture with different shop, astir apt -- excuse me, with an bureau -- excuse me, an agency, not different bank, for bid.

But -- truthful we're going to instrumentality with that successful presumption of usher connected some sides of the equilibrium sheet, which we deliberation if we tin execute that debased teen growth, we deliberation we're going to bash rather good astatine the bottommost line. So our pipelines are good, precise beardown indebtedness pipeline and our deposit pipelines. So we're excited astir that. But we deliberation that's a tenable presumption successful presumption of maturation arsenic we determination guardant to the past fractional of 2025.

Jackson Forrest Laurent: Got it. That's large color. And past conscionable lastly for me, if you could springiness america a small spot much colour connected the caller nutrient and agribusiness vertical arsenic good arsenic conscionable a small spot much astir the squad successful place. And I cognize it's aboriginal innings, but would emotion to get a consciousness of similar maturation imaginable you spot from that concern and avenue going forward?

James Eugene Beckwith: Sure. The radical that we hired is led by Cliff Cooper. He's got a precise experienced squad that helium works with. And they're going aft ample -- initially ample processors, each types of ag commodities that beryllium successful the West Coast. So these credits that we're going aft are C&I mediate marketplace benignant of credits, companies whose gross could beryllium $50 cardinal to $0.5 cardinal and that person been successful concern for generations. This peculiar market, we judge to beryllium underserved by the majors. And truthful this is wherefore we're stepping successful here. California is simply a large ag state.

And for america being successful California, we were doing immoderate ag anterior to Cliff and squad joining us, but we ne'er felt similar we were -- I'm going to say, taking vantage of the opportunity. And with Cliff and his team, we spot conscionable a tremendous magnitude of opportunity. One, successful presumption of it volition assistance america possibly equilibrium retired our indebtedness portfolio, possibly implicit the agelong run, we'll beryllium capable to trim our concentrations successful commercialized existent property if Cliff is successful. And we person each crushed to judge helium volition be. And truthful we're precise excited astir that.

Operator: And ladies and gentlemen, astatine this time, that volition extremity today's question-and-answer session. I'd similar to crook the level backmost implicit to Mr. Beckwith for immoderate closing remarks.

James Eugene Beckwith: Thank you. It's with heavy appreciation and gratitude that we person advocated for our clients and championed the communities we serve. We ever will. As our enlargement successful the San Francisco Bay Area continues and arsenic we physique connected the bequest of superior assemblage banking successful the superior portion and North State, we reply the telephone of businesses and organizations who tendency a time- honored banking partner. Five Star Bancorp is present to stay. We are arrogant to person experienced different 4th of important integrated maturation built upon a sturdy instauration of lawsuit service, expanded relationships and products and the loyalty of our exceptional clients. We volition ever retrieve that we beryllium due to the fact that of our clients' spot us.

And we judge successful them. It's our privilege to proceed arsenic a driving unit of economical development, a trusted assets for our clients and a committed advocator for our communities. We look guardant to speaking with you again successful October to sermon net for the 3rd 4th of 2025. Have a large day, and convey you for listening.

Operator: The league has present concluded. We convey you for attending today's presentation.

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