Five Star Bancorp's Q4 net income rises 32%

Overview

• Banking firm's Q4 net income rose to $17.6 mln, up from $13.3 mln last year

• Net interest income for Q4 increased, driven by loan growth and yield improvement

• Company announced increased dividend for the quarter

Outlook

• Five Star Bancorp plans to manage expenses and execute conservative underwriting practices in 2026

• Company aims to expand market presence and build verticals in 2026

Result Drivers

• LOAN AND DEPOSIT GROWTH - Co reported 15% increase in total loans and 18% increase in total deposits year-over-year, contributing to higher net interest income

• NET INTEREST MARGIN - Improved net interest margin sequentially due to better loan yields and reduced cost of funds

• CREDIT LOSS PROVISION - Increase in provision for credit losses due to loan growth and unemployment rate forecast

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for Five Star Bancorp is $40.00, about 3.1% above its January 26 closing price of $38.80

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release: ID:nGNX25qNDH

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