The following is a summary of the Five Star Bancorp (FSBC) Q2 2024 Earnings Call Transcript:

Financial Performance:

• Five Star Bancorp reported a quarterly net income of $10.8 million.

• Return on average assets was 1.23% and return on average equity was 11.72%.

• Net interest margin increased from 3.14% to 3.39%.

• Strong loan growth, with loans held for investment increasing by $162.2 million or 5.2%.

• Quarterly dividends declared at $0.20 per share.

Business Progress:

• Successfully closed a public offering that resulted in 3,967,500 additional shares, netting approximately $80.9 million.

• Targeted expansion in the San Francisco Bay Area supported by hiring of 5 more seasoned professionals and continued increase in core deposit accounts.

• Achieved a decrease in cost of total deposits to 247 basis points, reducing reliance on wholesale deposits.

• Positioned for future growth with a strong pipeline and increased deposit inflows.

Opportunities:

• Continue to drive growth and expand operations, particularly in the San Francisco Bay Area, taking advantage of market conditions and network expansion.

• Utilizing the recent public offering to strengthen financial position and foster significant organic growth.

Risks:

• Though nonperforming loans remain a small percentage of the portfolio, there was an increase at the beginning of Q3 2023, highlighting potential risks in asset quality.

More details: Five Star Bancorp IR

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