Five Star Bancorp earnings rose in the third quarter of 2026, with net income reaching $21.9 million, up from $19.4 million in the preceding quarter and $16.3 million a year earlier. The parent of Five Star Bank reported the results on October 26.

Key Takeaways

  • Net interest income rose $4.8 million from the second quarter to $50.9 million.
  • Loans held for investment grew by $184.5 million during the quarter.
  • A common stock offering generated approximately $130.0 million in net proceeds.

Five Star Bancorp earnings and interest income

Basic and diluted earnings per share were both $0.92, compared with $0.91 in the second quarter and $0.77 in the third quarter of 2025.

The company said the quarterly increase in net interest income primarily reflected growth in higher-yielding loans and a higher yield on interest-earning assets, partially offset by higher deposit funding costs. Net interest margin widened to 3.69% from 3.63% in the second quarter.

The provision for credit losses rose by $0.3 million from the previous quarter. Five Star attributed the increase to loan growth and changes from its annual credit-loss model refresh.

Loans, deposits and capital

Loans held for investment stood at approximately $4.70 billion at September 30, up 4.08% from June 30. The ratio of nonperforming loans to loans held for investment declined to 0.28% from 0.30%.

Total deposits increased by $25.1 million during the quarter. Non-wholesale deposits grew by $75.1 million, while wholesale deposits fell by $50.0 million.

Five Star completed an offering of 3,133,750 common shares during the quarter. Its common equity Tier 1 capital ratio rose to 12.52% at September 30 from 9.97% at June 30. Weighted average basic shares outstanding increased by 11.03% from the second quarter because of the offering.

Next milestone

Five Star expects to pay a $0.25-per-share dividend on November 9, 2026, to shareholders of record on November 2.

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