Five Star Bancorp (FSBC)

Price$46.88Cached quoteAs of 2026-09-04 16:23 UTC

AI: Fair-priced

Price checkStrong recent growth supports the valuation, but the shares no longer offer an obvious bargain.

At the observed quote, the shares cost about 13.7 times the $3.38 earned per share over the latest four reported quarters. They also trade near 1.9 times estimated book value, meaning shareholders’ net assets, after adding roughly $130.6 million of offering proceeds and 3.13 million new shares to June figures. A roughly 2.2% annualized dividend yield adds modest income. This valuation is defensible given the recent 16.7% return on equity, but it requires profitable growth and low credit losses to continue.

Big pictureProfit and cash generation are rising, though fast loan growth makes that progress cyclical.

Revenue rose 26% to $158.4 million in 2025, while net income increased 35% to $61.6 million. The latest four quarters produced about $72.0 million of profit. Operating cash flow reached $72.6 million in 2025 and $42.6 million in the first half of 2026, comfortably exceeding tiny spending on property and equipment. However, bank cash flows are distorted by deposit and loan movements. Earnings durability therefore depends more on lending spreads and credit losses; recent profit growth relied heavily on rapid balance-sheet expansion.

Business strengthLiquidity and profits look healthy, but commercial property concentration deserves close attention.

June liquidity was about $2.28 billion, exceeding roughly $1.6 billion of uninsured and uncollateralized deposits. The bank remained officially well-capitalized, although its core capital ratio declined from 10.45% to 9.98% during the quarter. Credit problems were still low overall: the $47.3 million loss allowance exceeded $13.4 million of nonperforming loans. Yet commercial real-estate loans totaled $3.60 billion, nearly 80% of loans, and one $11.4 million troubled loan raised the nonperforming ratio from 0.07% to 0.30%.

What could change the storySuccessful use of new capital could lift earnings, while weak credit would expose the premium.

July’s offering increased the share count by about 14.6% and raised roughly $130.6 million; it creates value only if management earns a good return on that capital. The annualized $1.00 dividend consumes about 30% of trailing earnings, leaving room for growth, but no buybacks offset dilution. Bull case: new loans preserve the 3.63% net interest margin, the spread earned after funding costs, while losses stay low. Bear case: unchanged profit would fall near $2.95 per share after dilution, making the quote almost 16 times earnings before additional credit deterioration.

AI: News

Second-quarter earnings beatProfit beat expectations as lending expanded, though funding pressure and one troubled loan tempered the result.

On July 22, Five Star reported second-quarter net income of $19.4 million and earnings per share of $0.91, both about 34% above the prior year; earnings beat analyst consensus by 4.6%. Loans and deposits each grew about 7% during the quarter. However, the spread earned after funding costs narrowed from 3.70% to 3.63%, and one troubled loan lifted nonperforming loans to 0.30%. A same-day offering announcement makes any immediate share-price response hard to attribute solely to earnings.

Growth capital share saleA large share sale funded more growth but diluted each existing owner’s stake.

Five Star completed the sale of 3.13 million shares on July 27, about 14.6% of the June share count, raising approximately $130.6 million after underwriting discounts and before offering expenses. Management said the funds would support growth and general purposes. A market report showed the shares down 7% before trading after the overnight pricing. That timing is consistent with concern about dilution and discounted issuance, but it does not prove the offering alone caused the move.

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Revenue

2020

2021

2022

2023

2024

2025

Net income

2020

2021

2022

2023

2024

2025

Free cash flow

2020

2021

2022

2023

2024

2025

Total cash / debt

CashTotal debt

2020

2021

2022

2023

2024

2025

Financial statements

	2025	2024	2023	2022	2021	2020
Revenue	$158.4M	$126.2M	$118.4M	$110.2M	$84.9M	$74.5M
Operating expenses	$65.0M	$54.5M	$47.8M	$40.7M	$36.0M	$28.3M
Net income	$61.6M	$45.7M	$47.7M	$44.8M	$42.4M	$35.9M
Net profit margin	38.88%	36.20%	40.32%	40.64%	49.99%	48.22%
Basic EPSper basic share	$2.90	$2.26	$2.78	$2.61	$2.83	$3.57
Diluted EPSper diluted share	$2.90	$2.26	$2.78	$2.61	$2.83	$3.57

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

≈14.13%of listed shares

Allbaugh Larry Eugene3.03M shares · May 29, 2026

View holders

Top 20 reported holders of FSBC
Holder	% owned
Allbaugh Larry Eugene	≈14.13%3.03M shares
T. Rowe Price Investment Management, Inc.	9.62%2.06M shares
Davis Asset Management, L.P.	7.06%1.51M shares
BlackRock, Inc.	6.22%1.33M shares
VANGUARD CAPITAL MANAGEMENT LLC	3.04%651.1K shares
AMERICAN CENTURY COMPANIES INC	2.47%528.93K shares
Beckwith James Eugene	≈2.23%476.59K shares
GEODE CAPITAL MANAGEMENT, LLC	2.22%475.52K shares
CAPTRUST FINANCIAL ADVISORS	2.18%467.11K shares
FRANKLIN RESOURCES INC	2.02%431.43K shares
DIMENSIONAL FUND ADVISORS LP	1.79%383.91K shares
STATE STREET CORP	1.71%365.82K shares
Invesco Ltd.	1.45%310.24K shares
ADAGE CAPITAL PARTNERS GP, L.L.C.	1.43%305.18K shares
Nuveen, LLC	1.39%298.27K shares
KENNEDY CAPITAL MANAGEMENT LLC	1.37%292.19K shares
Perry-Smith Robert Truxtun	≈1.06%227.54K shares
Ramos Kevin Francis	≈0.85%181.86K shares
Nickum David Frank	≈0.84%179.88K shares
Pacific Ridge Capital Partners, LLC	0.81%172.85K shares

Percentages use 21.4M shares of this listed class outstanding on Jun 30, 2026. ≈ compares the latest reported holding with a share total from a different date; it is not a confirmed current stake.

Gray completes the 100% scale. Reported positions may overlap; holders have different reporting dates.

Source: SEC Form 4 ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys2$78.2K disclosed value

Sells (SEC code S)25$1.87M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
May 26, 2026Form 4	Wait Brett LeviSVP, Chief Information Officer	SellCommon Stock	1.6K	$42.27	$69.3K	16.9K
May 21, 2026Form 4	Lee Michael EugeneSVP, Chief Regulatory Officer	SellCommon Stock · indirect	867	$41.23	$35.7K	32.8K
May 20, 2026Form 4	Beckwith James EugenePresident & CEO	SellCommon Stock · indirect	2.4K	$41.34	$100.4K	466.6K
May 20, 2026Form 4	Beckwith James EugenePresident & CEO	SellCommon Stock · indirect	2.0K	$41.22	$82.4K	469.0K
May 20, 2026Form 4	Beckwith James EugenePresident & CEO	SellCommon Stock · indirect	2.0K	$41.12	$82.2K	471.0K