Five Star Bancorp reported first‑quarter 2026 results for the three months ended March 31, 2026, posting net income of $18.6 million and earnings per share of $0.87, a 5.4 % increase in net income and a 40 % rise in EPS compared with the same quarter a year earlier. The company’s net interest margin expanded to 3.70 %, driven by a 3.4 % increase in loan balances and a 6.4 % rise in deposits, which lowered the average cost of funds to 2.20 %.
Revenue for the quarter, comprising net interest income and non‑interest income, totaled $45.1 million, slightly below analyst estimates of $45.3 million but still in line with the company’s guidance. The revenue beat was modest, reflecting strong loan growth and a favorable mix of interest‑earning assets, while the slight shortfall was offset by a 6 % increase in deposits that helped maintain margin expansion.
Net income rose from $13.1 million in Q1 2025 to $18.6 million in Q1 2026, a 42 % year‑over‑year gain, and EPS climbed from $0.62 to $0.87, beating the consensus of $0.80 by $0.07 or 8.8 %. The beat was largely attributable to disciplined cost management, which kept operating expenses in line with revenue growth, and to the higher mix of higher‑margin loan products.
The bank declared a quarterly dividend of $0.25 per share, an increase of $0.05 from the $0.20 dividend paid each quarter in 2025, signaling confidence in continued profitability. Management highlighted that the quarter’s performance was supported by a 3 % growth in total loans held for investment and a 6 % increase in total deposits, reflecting sustained demand for the bank’s relationship‑driven lending model.
Efficiency improved to 38.57 % from 40.62 % in Q4 2025, driven by lower operating expenses relative to revenue growth. Asset quality remained strong, with non‑performing loans falling to 0.07 % of total loans, and the common equity Tier 1 capital ratio stood at 10.45 %, underscoring a solid capital position.
While the company did not provide new forward guidance in the release, the results reinforce its strategic focus on expanding industry verticals and new geographies, and the dividend increase indicates management’s confidence in sustaining earnings growth.
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