Five Star Bancorp reported net income of $14.5 million for the second quarter of 2025, a significant increase from $13.1 million in the first quarter of 2025 and $10.8 million in the second quarter of 2024. The company achieved robust growth in its core business, with total loans held for investment increasing by $136.2 million, or 3.76%, during the quarter. Total deposits also grew by $158.3 million, or 4.24%, demonstrating continued strong client acquisition.
The net interest margin (NIM) expanded by eight basis points to 3.53% in the second quarter of 2025, reflecting effective management of interest-earning assets and funding costs. The efficiency ratio improved to 41.03% from 42.58% in the first quarter of 2025, indicating enhanced operational leverage. Nonperforming loans to total loans held for investment remained low at 0.06% at June 30, 2025.
The San Francisco Bay Area operations continued their strong trajectory, with the team growing to 34 employees and accumulating $456.9 million in deposits as of June 30, 2025. The company also confirmed its expectation to open the Walnut Creek office in the third quarter of 2025, further solidifying its presence in the region. These results underscore the effectiveness of Five Star Bancorp's organic growth strategy and relationship-based banking model.
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