Five Star reports Q4 EPS 63c, consensus 59c

Reports Q4 allowance for credit losses $34.4M, as compared to $28.4M last year. The $6.0M increase in the allowance is due to a $5.3M adjustment recorded in connection with the adoption of CECL and a $4.0M provision for credit losses recorded during the twelve months ended December 31, 2023, partially offset by net charge-offs of $3.3M, mainly attributable to commercial and industrial loans, during the same period. James E. Beckwith, President and CEO, commented, “Five Star Bank is known for turning market disruption into opportunity and 2023 was no exception. While many faced significant headwinds in Q1 due to big bank failures, we seized the opportunity to execute on our organic growth strategy by expanding into the San Francisco Bay Area. This expansion included the onboarding of eight seasoned and highly respected business development officers and two relationship managers who contributed $73.8M of deposit growth in 2023 from clients who wanted to work with a bank they could trust. The past year demonstrated the importance of being prepared for any market condition and we are pleased with our immediate response to serving new clients in the Bay Area while also ensuring the safety and soundness of our business.”