Five Star Bancorp (FSBC) Earnings
Five Star Bancorp is expected to report next earnings on October 26, 2026 (in NaN days), with a consensus EPS estimate of $0.86. FSBC has beaten EPS estimates in 11 of its last 11 reported quarters (average surprise +6.7% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Jul 23, 2026 | $0.86 | $0.91 | +5.8% | $48M | +0.5% |
| Apr 28, 2026 | $0.80 | $0.87 | +8.7% | $45M | +1.4% |
| Jan 26, 2026 | $0.77 | $0.83 | +7.8% | $43M | -2.2% |
| Jul 23, 2025 | $0.65 | $0.68 | +4.6% | $38M | -5.0% |
| Jan 27, 2025 | $0.59 | $0.63 | +6.8% | $35M | -0.4% |
| Jul 24, 2024 | $0.49 | $0.51 | +4.1% | $30M | -2.9% |
| Jan 29, 2024 | $0.59 | $0.63 | +6.8% | $28M | -2.1% |
| Jul 24, 2023 | $0.66 | $0.74 | +12.1% | $30M | +9.4% |
| Jan 30, 2023 | $0.71 | $0.77 | +8.5% | $30M | +1.6% |
| Jul 25, 2022 | $0.54 | $0.58 | +7.4% | $26M | +4.4% |
| Jan 31, 2022 | $0.54 | $0.66 | +22.2% | $23M | +4.3% |
| Jun 17, 2021 | — | $0.63 | — | $21M | — |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q2 FY2026 · July 23, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
- Overall Financial Performance * Q2 2026 net income hit $19.4 million, a 4% increase from $18.6 million in Q1 2026, and up from year-ago Q2 2025 levels. * Earnings per share reached $0.91, up $0.04 quarter-over-quarter and up $0.23 year-over-year. * Return on average assets was 1.49% (down from 1.55% Q1 2026), return on average equity was 16.67% (down from 16.73% Q1 2026), and net interest margin was 3.63% (down 7 basis points Q1 2026). * Total assets grew $345.3 million in the quarter to $5.4 billion, a 22.7% year-over-year increase from $4.4 billion at June 30 2025. - Operational Milestones & Expansion * Five Star Bank was recognized as the #1 Best Place to Work for 25-49 employee firms in the San Francisco Bay Area by the San Francisco Business Times, reflecting the firm's purpose-driven culture. * The firm expanded into Southern California's Greater Los Angeles market by adding 5 experienced banking professionals, building on its existing Newport Beach administrative office, with plans to open a full additional office by the end of 2026. * A new full-service branch opened in Lodi, California on July 13, 2026, strengthening the firm's food and agribusiness vertical and expanding its footprint in high-growth California regional markets. * The business development officer team grew from 43 to 45 members during the quarter to support relationship expansion across markets and industry verticals. - Balance Sheet & Credit Quality * Total deposits grew $330 million (30% annualized) in Q2, with the shift to core non-wholesale deposits reducing reliance on more volatile wholesale funding. * Asset quality remains strong: the non-performing loan ratio increased to 0.30% from 0.07% Q1 2026, driven entirely by a single $11.4 million Community Reinvestment Act loan placed on non-accrual; the loan is well-collateralized with significant value cushion over its carrying amount. * A $2.3 million provision for credit losses was recorded in the quarter, mostly to offset growth in the loan portfolio. Total allowance for credit losses reached $47.3 million (1.05% of total loans held for investment) at quarter-end. * All regulatory capital ratios remain above required thresholds, with a common equity Tier 1 capital ratio of 9.98% and Tier 1 leverage ratio of 9.21% at June 30 2026. * 74% of total loans held for investment are adjustable or floating rate, giving the firm flexibility to adapt to changing interest rate conditions. * Cash and cash equivalents totaled $685.1 million at quarter-end, equal to 14.2% of total deposits. - Income Statement Details * Net interest income grew 6.04% quarter-over-quarter to $46.1 million, driven by balance sheet volume growth, which offset modest dilution of overall earning asset yields that pulled the net interest margin down 7 basis points. * Non-interest income increased to $1.9 million from $1.6 million Q1 2026, supported by higher investment returns on venture-backed fund holdings, offset by lower swap referral fees and lower FHLB stock dividends (resulting from a tiered dividend structure transition and a one-time special dividend in Q1 that did not repeat). * Non-interest expenses increased $2.2 million from Q1 2026, due to the absence of a $1 million SBA loan loss contingency release that benefited Q1, plus higher advertising and data processing costs tied to organizational expansion. The efficiency ratio came in at 40.91% for Q2 2026, reflecting disciplined expense management alongside growth investments. - Shareholder Returns * The firm paid a Q2 2026 cash dividend of $0.2925 per share, and declared an additional $0.25 per share dividend scheduled for payout in August 2026.
Guidance
Management did not issue specific numerical revenue, earnings, or growth guidance for the full 2026 fiscal year or the second half of 2026. Management expressed encouragement with first half 2026 results, stated confidence in the firm's position entering the second half of the year, and reaffirmed confidence in the company's ability to continue delivering sustainable value to all stakeholders through continued disciplined execution of its strategic growth plan.
Segment performance
Five Star Bancorp reports financial performance by portfolio segments rather than separate product segments: 1) Commercial Real Estate Portfolio: Loan holdings grew by $175.3 million in Q2 2026, driving the majority of total loan growth for the quarter. 2) Consumer Loan Portfolio: Purchased consumer loans grew by $124.5 million in Q2 2026, contributing the next largest share of total loan growth. Total loans held for investment reached $4.5 billion at quarter-end, growing by $306.3 million (29% annualized) in the quarter. For deposits, non-wholesale (core) deposits increased by $463.1 million, while wholesale deposits decreased by $133.1 million. Non-wholesale deposits accounted for 94.79% of total deposits at quarter-end, up from 91.43% at the end of Q1 2026. Non-interest bearing deposits made up 24.5% of total deposits as of June 30, 2026.
Risks & headwinds
- Ongoing market risks include volatility stemming from geopolitical tensions, global energy market instability, and uncertainty around the future pace and direction of U.S. Federal Reserve monetary policy, which has contributed to a more volatile interest rate environment. - The single non-performing loan added in the quarter carries a $11.4 million balance, though management noted it is well-collateralized with significant excess value cushion to absorb potential losses. - The firm's net interest margin faced modest downward pressure from rapid balance sheet expansion in the quarter, which diluted average earning asset yields even as total net interest income grew.