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Five Star
(NASDAQ:FSBC)
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Rating:76Outperform
Price Target:
$55.00
â–²(17.50% Upside)
Action:Reiterated
Date:07/23/26
FSBC scores well primarily on solid financial performance (strong profitability and improved leverage) and a favorable earnings-call readthrough highlighting strong loan/deposit growth and healthy capital. Technicals are supportive with an uptrend and neutral momentum. Valuation is reasonable but not especially cheap, and the main risks are margin compression, higher expenses, and the recent uptick in non-performing loans.
Positive Factors
Loan & Deposit Growth
Sustained, rapid loan growth paired with strong core deposit inflows materially increases interest-earning assets and funds them with lower-volatility core deposits. Over 2–6 months this supports higher net interest income, scalable revenue, and funding stability for further regional expansion.
Negative Factors
Margin Compression
Eroding net interest margin reduces long-term profitability sensitivity to loan and deposit growth. If yields are diluted by rapid asset expansion or competitive pricing, sustained NIM pressure can impair ROA/ROE and limit excess cash for dividends or reinvestment.
Read all positive and negative factors
Positive Factors
Negative Factors
Loan & Deposit Growth
Sustained, rapid loan growth paired with strong core deposit inflows materially increases interest-earning assets and funds them with lower-volatility core deposits. Over 2–6 months this supports higher net interest income, scalable revenue, and funding stability for further regional expansion.
Read all positive factors
Five Star (FSBC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.16B
Dividend Yield1.91%
Average Volume (3M)61.66K
Price to Earnings (P/E)14.1
Beta (1Y)0.92
Revenue Growth18.89%
EPS Growth38.49%
CountryUS
Employees233
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)3.39
Shares Outstanding24,536,613
10 Day Avg. Volume72,257
30 Day Avg. Volume61,664
Financial Highlights & Ratios
PEG Ratio0.44
Price to Book (P/B)1.70
Price to Sales (P/S)2.97
P/FCF Ratio10.63
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$52.00Price Target Upside11.09% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)3.49
Revenue Forecast (FY)$197.71M
Five Star Business Overview & Revenue Model
Company Description
Five Star Bancorp (FSBC) is a bank holding company for Five Star Bank, a California state-chartered bank that provides commercial banking products and services. The company focuses primarily on serving small- to medium-sized businesses, profession...
How the Company Makes Money
FSBC primarily makes money through its banking subsidiary by earning (1) net interest income and (2) noninterest income.
1) Net interest income (core revenue stream): The bank generates revenue by charging interest on loans and other interest-ear...
Five Star Earnings Call Summary
Earnings Call Date:Jul 22, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 02, 2026
Earnings Call Sentiment Positive
The call presented a generally positive performance driven by strong organic growth in loans and deposits, rising net interest income, healthy capital ratios, geographic expansion, and employee recognition. Key challenges included modest NIM compression, higher operating expenses that increased the efficiency ratio, a small uptick in non-performing loans due to a single non-accrual CRA loan, and a modest provision for credit losses. Overall, the positives — particularly rapid balance sheet growth, improving core deposit composition, and solid earnings — outweighed the limited credit and expense headwinds.Positive Updates
Net Income and EPS Growth
Net income of $19.4 million in Q2 2026, up 4% from Q1 2026; diluted EPS $0.91, up $0.04 QoQ and up $0.23 YoY versus Q2 2025.
Negative Updates
Increase in Non-Performing Loans
Ratio of non-performing loans rose to 0.30% at June 30, 2026 from 0.07% at March 31, 2026, due to one Community Reinvestment Act loan placed on non-accrual with a balance of $11.4 million (previously downgraded to substandard in 2025).
Read all updates
Q2-2026 Updates
Positive
Negative
Net Income and EPS Growth
Net income of $19.4 million in Q2 2026, up 4% from Q1 2026; diluted EPS $0.91, up $0.04 QoQ and up $0.23 YoY versus Q2 2025.
Read all positive updates
Company Guidance
Management reiterated disciplined, relationship-driven growth and risk management for H2 2026, emphasizing organic expansion (five Southern California hires, a new Lodi branch opened July 13 and another SoCal office planned) and balance-sheet flexibility while noting an underwritten common stock offering and a $0.25 dividend declared for August (Q2 cash dividend paid $0.2925). Key metrics cited to support that guidance included Q2 net income $19.4M and EPS $0.91, net interest income $46.1M (+6.04% Q/Q) with NIM 3.63% (-7 bps), loans held for investment $4.5B (+$306.3M, 29% annualized), total deposits up $330M (30% annualized) with non‑wholesale deposits +$463.1M (≈94.79% of deposits), ROA 1.49%, ROE 16.67%, CET1 9.98% and Tier 1 leverage 9.21%, allowance for credit losses $47.3M (1.05% of loans), NPL ratio 0.30%, cash & equivalents $685.1M (14.2% of deposits), ~74% of loans adjustable/floating, and an efficiency ratio of 40.91%.Five Star Financial Statement Overview
Summary
Income Statement
77
Positive
Balance Sheet
82
Very Positive
Cash Flow
71
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 278.25M | 255.47M | 212.20M | 180.70M | 123.79M | 87.82M |
| Gross Profit | 168.04M | 148.74M | 118.01M | 113.20M | 102.24M | 82.15M |
| EBITDA | 98.83M | 86.78M | 66.60M | 68.23M | 64.49M | 47.76M |
| Net Income | 72.01M | 61.61M | 45.67M | 47.73M | 44.80M | 42.44M |
Balance Sheet | ||||||
| Total Assets | 5.38B | 4.75B | 4.05B | 3.59B | 3.23B | 2.56B |
| Cash, Cash Equivalents and Short-Term Investments | 136.55M | 564.86M | 454.66M | 435.52M | 385.83M | 588.60M |
| Total Debt | 74.11M | 85.91M | 80.75M | 249.35M | 177.85M | 28.39M |
| Total Liabilities | 4.90B | 4.31B | 3.66B | 3.31B | 2.97B | 2.32B |
| Stockholders Equity | 473.77M | 445.83M | 396.62M | 285.77M | 252.82M | 235.05M |
Cash Flow | ||||||
| Free Cash Flow | 57.26M | 71.42M | 51.16M | 38.26M | 45.49M | 27.94M |
| Operating Cash Flow | 58.28M | 72.61M | 51.79M | 38.91M | 45.98M | 28.66M |
| Investing Cash Flow | 3.87B | -544.11M | -446.74M | -279.28M | -836.92M | -455.01M |
| Financing Cash Flow | 560.84M | 626.00M | 425.73M | 301.95M | 625.61M | 561.19M |
Five Star Technical Analysis
Neutral
46.81
Price Trends
45.83
Positive
42.47
Positive
39.43
Positive
Market Momentum
0.70
Positive
46.76
Neutral
41.86
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FSBC, the sentiment is Neutral. The current price of 46.81 is below the 20-day moving average (MA) of 48.16, above the 50-day MA of 45.83, and above the 200-day MA of 39.43, indicating a neutral trend. The MACD of 0.70 indicates Positive momentum. The RSI at 46.76 is Neutral, neither overbought nor oversold. The STOCH value of 41.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FSBC.
Five Star Risk Analysis
Five Star disclosed 49 risk factors in its most recent earnings report. Five Star reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Five Star Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $974.26M | 12.96 | 8.02% | 2.45% | 20.29% | 19.48% | |
76 Outperform | $1.16B | 14.11 | 15.92% | 1.92% | 18.89% | 38.49% | |
74 Outperform | $1.04B | 11.38 | 9.85% | 1.87% | 8.88% | 11.73% | |
73 Outperform | $953.40M | 16.05 | 9.62% | 2.65% | 6.50% | 28.40% | |
71 Outperform | $948.02M | 11.19 | 13.02% | 2.83% | 8.25% | 36.33% | |
70 Outperform | $879.19M | 13.37 | 10.58% | 2.17% | -8.97% | 3.23% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
FSBC
Five Star
47.19
18.47
64.33%
THFF
First Financial Indiana
80.55
29.89
59.00%
GSBC
Great Southern Bancorp
80.31
25.77
47.25%
MPB
Mid Penn Bancorp
38.34
12.02
45.66%
TRST
TrustCo Bank
56.98
25.04
78.37%
BFST
Business First Bancshares
31.82
9.41
41.98%
Five Star Corporate Events
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Five Star Bancorp Launches Major Public Share Offering
Positive
Jul 23, 2026
On July 22, 2026, Five Star Bancorp entered into an underwriting agreement with a syndicate led by Keefe, Bruyette Woods to sell 2,725,000 common shares at $44.00 each in an underwritten public offering. The deal, launched and priced that day und...
Business Operations and StrategyDividendsFinancial Disclosures
Five Star Bancorp posts strong second-quarter 2026 results
Positive
Jul 22, 2026
On July 22, 2026, Five Star Bancorp reported second-quarter 2026 net income of $19.4 million, up from $18.6 million in the first quarter and $14.5 million a year earlier, with diluted earnings per share rising to $0.91. Returns on average assets a...
Business Operations and StrategyDividends
Five Star Bancorp Declares Q2 Dividend, Expands Branches
Positive
Jul 20, 2026
On July 17, 2026, Five Star Bancorp announced that its board had declared a second-quarter cash dividend of $0.25 per share on its voting common stock. The dividend will be paid on August 10, 2026, to shareholders of record as of August 3, 2026, r...
Business Operations and StrategyFinancial Disclosures
Five Star Bancorp Schedules Upcoming Q2 2026 Earnings Release
Neutral
Jul 10, 2026
On July 9, 2026, Five Star Bancorp announced the timing of its second-quarter 2026 earnings release for the period ended June 30, 2026. The company plans to publish results after the market closes on July 22, 2026, and hold a webcast for analysts ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.