Five Star Bancorp

Q2 2026 net income was $19.4 million, up from $18.6 million in Q1 2026. EPS was $0.91, up $0.04 sequentially and up $0.23 from Q2 2025. Net interest income was $46.1 million, up 6.04% from $43.5 million in Q1 2026; net interest margin was 3.63%, down 7 basis points quarter over quarter. Return on average assets was 1.49% and return on average equity was 16.67%. Loans held for investment grew by $306.3 million to $4.5 billion, and total deposits grew by $330 million; non-wholesale deposits rose $463.1 million while wholesale deposits fell $133.1 million. Non-performing loans rose to 0.30% from 0.07%, and the bank recorded a $2.3 million provision for credit losses. For capital, CET1 was 9.98% and Tier 1 leverage was 9.21%; cash and cash equivalents were $685.1 million, or 14.2% of total deposits. Management did not provide formal next-quarter or full-year guidance, but said it remains focused on disciplined growth, sound risk management, and deepening client relationships.

CEO James Beckwith framed the quarter as another period of strong execution on the bank’s organic, relationship-driven growth strategy. He emphasized expansion in California, including adding five seasoned banking professionals in Southern California and opening a new full-service branch in Lodi, as evidence of continued footprint building. His tone was confident and disciplined, stressing conservative underwriting, risk management, and targeted investment in technology and talent.

CFO Heather Luck said net interest income rose to $46.1 million, with the 6.04% sequential increase driven mainly by volume as balance sheet growth modestly diluted yields. She noted the net interest margin declined 7 basis points to 3.63% and the average cost of total deposits increased to 2.16%, while non-interest expense rose due to the prior-quarter SBA contingency release not repeating and higher advertising and data processing costs. She also pointed to a $2.3 million provision for credit losses in the quarter, $47.3 million of allowance for credit losses, and strong capital/liquidity with $685.1 million of cash and cash equivalents.

There was no Q&A session on this call. Management said the underwritten public offering of common stock had been priced but had not yet settled, so the call would cover only second-quarter results and no analyst questions would be taken. As a result, there were no live concerns or follow-up answers beyond management’s prepared remarks.