Five Star Bancorp (NASDAQ: FSBC) reported net income of $17.6 million for the fourth quarter ended December 31, 2025. This result compares to $13.3 million for the same period in 2024, representing a year-over-year profit increase of 32.48%.
Quarterly Performance Data
Consolidated revenue, consisting of net interest income and non-interest income, totaled $43.5 million for the quarter ended December 31, 2025. This is an increase from the $35.2 million reported in the fourth quarter of 2024. Net interest income for the period was $42.1 million, while non-interest income was $1.4 million.
Portfolio and Segment Analysis
• Real Estate: Loans in this category totaled $3.51 billion as of December 31, 2025. Commercial real estate represents the largest portion at $3.31 billion.
• Commercial Loans: The secured commercial portfolio reached $251.7 million, while unsecured commercial loans totaled $40.4 million.
• Consumer and Other: This segment stood at $275.5 million at the end of the quarter.
• Agribusiness: The company announced the expansion of its Agribusiness vertical during 2025.
Annual Financial Context
For the full year ended December 31, 2025, Five Star Bancorp reported net income of $61.6 million, compared to $45.7 million for 2024, a growth of 34.89%. Annual net interest income increased to $151.9 million from $119.7 million in the prior year. Total non-interest income for the year was $6.5 million. Directional trends for both revenue and net profit indicated growth during the twelve-month period.
Operational Developments
The company expanded its presence in the San Francisco Bay Area by opening a branch office in Walnut Creek and expanding its San Francisco office. The number of Business Development Officers increased to 42 by December 31, 2025, up from 40 in the previous quarter. Total headcount increased by 13.66% between December 31, 2024, and December 31, 2025.
The “One Big Beautiful Bill Act” (H.R. 1), signed into law on July 4, 2025, modified federal tax laws regarding the deductibility of business expenses, including R&D expenditures and depreciation. The company reported that these changes did not impact the tax provision for 2025 but noted the law affects meals and charitable contribution deductibility for tax years beginning after December 31, 2025.
Strategic Moves
Five Star Bancorp declared a cash dividend of $0.25 per share on January 15, 2026. This dividend is scheduled for payment on February 9, 2026, to shareholders of record as of February 2, 2026. During 2025, the bank purchased $92.1 million in loans within the consumer concentration of its portfolio.
Forward-Looking Indicators
Company management identified expense management and conservative underwriting practices as the primary focus areas for the 2026 fiscal year. The bank plans to continue building its existing verticals and market presence. Factors to watch include the execution of these underwriting practices and the continued expansion of the Agribusiness vertical.
Performance Summary
Five Star Bancorp ended the quarter with total assets of $4.75 billion and total deposits of $4.20 billion. The net interest margin for the quarter was 3.66%. The efficiency ratio for the full year was 41.03%, compared to 43.19% in 2024. Nonperforming loans as a percentage of total loans held for investment stood at 0.08% at year-end.
