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Five Star
(NASDAQ:FSBC)
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Rating:72Outperform
Price Target:
$50.00
â–²(11.36% Upside)
Action:Reiterated
Date:09/18/26
FSBC scores well primarily on financial performance (strong profitability, improving leverage, and steady equity growth) and a constructive earnings update highlighting robust loan/deposit growth and solid capital. The score is held back by weaker near-term technical momentum and some operating headwinds (NIM and efficiency ratio pressure), while valuation remains reasonable with a moderate dividend yield.
Positive Factors
Organic Loan Growth
Rapid loan expansion increases the earning-asset base and supports future net interest income, while the reported growth is tied to ongoing commercial banking activity. Continued relationship-driven origination can deepen customer ties and strengthen FSBC’s regional market position over the next several quarters.
Negative Factors
Net Interest Margin Pressure
Margin compression can reduce the amount of income generated from each dollar of earning assets, making profitability more dependent on continued balance-sheet growth. If funding costs remain elevated or rapid growth dilutes yields, sustained earnings expansion could become harder to achieve.
Read all positive and negative factors
Positive Factors
Negative Factors
Organic Loan Growth
Rapid loan expansion increases the earning-asset base and supports future net interest income, while the reported growth is tied to ongoing commercial banking activity. Continued relationship-driven origination can deepen customer ties and strengthen FSBC’s regional market position over the next several quarters.
Read all positive factors
Five Star (FSBC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.09B
Dividend Yield2.15%
Average Volume (3M)182.60K
Price to Earnings (P/E)13.0
Beta (1Y)0.84
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. Volume228,460
30 Day Avg. Volume182,605
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 Upside15.81% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)3.51
Revenue Forecast (FY)$197.70M
Five Star Business Overview & Revenue Model
Company Description
Five Star Bancorp serves as the holding company for Five Star Bank, delivering a full spectrum of banking products and services. The institution caters to a diverse clientele, including small and medium-sized businesses, professionals, and individ...
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 | 80.49M | 71.42M | 51.16M | 38.26M | 45.49M | 27.94M |
| Operating Cash Flow | 81.96M | 72.61M | 51.79M | 38.91M | 45.98M | 28.66M |
| Investing Cash Flow | -766.22M | -544.11M | -446.74M | -279.28M | -836.92M | -455.01M |
| Financing Cash Flow | 885.53M | 626.00M | 425.73M | 301.95M | 625.61M | 561.19M |
Five Star Technical Analysis
Negative
44.90
Price Trends
46.44
Negative
45.08
Negative
41.49
Positive
Market Momentum
-0.46
Positive
34.12
Neutral
5.88
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FSBC, the sentiment is Negative. The current price of 44.9 is below the 20-day moving average (MA) of 45.58, below the 50-day MA of 46.44, and above the 200-day MA of 41.49, indicating a neutral trend. The MACD of -0.46 indicates Positive momentum. The RSI at 34.12 is Neutral, neither overbought nor oversold. The STOCH value of 5.88 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $928.54M | 11.73 | 8.02% | 2.58% | 20.29% | 19.48% | |
74 Outperform | $959.34M | 15.54 | 9.62% | 2.75% | 6.50% | 28.40% | |
73 Outperform | $999.28M | 10.88 | 9.85% | 1.96% | 8.88% | 11.73% | |
72 Outperform | $1.09B | 13.03 | 15.92% | 2.15% | 18.89% | 38.49% | |
68 Neutral | $1.21B | 10.61 | 13.02% | 3.01% | 8.25% | 36.33% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $856.00M | 12.98 | 10.58% | 2.20% | -8.87% | 3.26% |
* Financial Sector Average
FSBC
Five Star
44.17
11.90
36.89%
THFF
First Financial Indiana
75.72
19.85
35.52%
GSBC
Great Southern Bancorp
78.42
17.86
29.49%
MPB
Mid Penn Bancorp
36.48
7.21
24.65%
TRST
TrustCo Bank
55.96
18.75
50.37%
BFST
Business First Bancshares
30.67
7.11
30.17%
Five Star Corporate Events
Business Operations and StrategyExecutive/Board Changes
Five Star Bancorp Elevates Community-Focused Executive Leadership
Positive
Sep 17, 2026
On September 14, 2026, Five Star Bancorp appointed Lydia Ramirez as Executive Vice President and Chief External Affairs Officer, a newly created role designed to strengthen the bank’s community engagement as it expands across California. Ram...
Executive/Board Changes
Five Star Bancorp Director Donna Lucas Resigns Immediately
Neutral
Sep 10, 2026
On September 4, 2026, Five Star Bancorp director Donna Lucas resigned from the company’s Board of Directors, with the departure effective immediately and formally acknowledged by the company. The company stated that her resignation did not s...
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.