Janney starts Five Star Bancorp at Buy on improving profitability

As previously reported, Janney Montgomery Scott analyst Timothy Coffey initiated coverage of Five Star Bancorp (FSBC) with a Buy rating and $37 fair value estimate. The firm, which expects improving profitability, fueled by regular annual loan rate resets and a declining cost of funds from lower base rates, notes that credit quality is “exceptionally strong” and that it views Five Star as a “potentially stronger dividend payer.”