Five Star reports Q3 EPS 64c, consensus 60c

Reports Q3 allowance for credit losses $34.0M, as compared to $28.4M at December 31, 2022. The $5.6M increase in the allowance is due to a $5.3M adjustment recorded in connection with the adoption of CECL and a $2.9M provision for credit losses recorded during the nine months ended September 30, partially offset by net charge-offs of $2.5M, mainly attributable to commercial and industrial loans, during the same period. James E. Beckwith, President and CEO, commented on the financial results: “Despite ongoing headwinds in the market, we maintained momentum as we continued to onboard new customers and enhance existing relationships. Pressures on deposit pricing exist, yet Five Star Bank’s total loans and deposits increased in the Q3 of 2023. We remain focused on the future and our long-term strategy. As such, we expanded our presence in the San Francisco Bay Area with the onboarding of a new team of seasoned professionals, and we declared another cash dividend to shareholders, exemplifying our commitment to shareholder value.