Five Star Bancorp (NASDAQ:FSBC) reported a net income of $19.4 million for the second quarter of 2026, an increase from $18.6 million in the previous quarter. Earnings per share rose to $0.91, marking a $0.04 increase from Q1 2026 and a $0.23 increase from Q2 2025. The growth was driven by a 29% annualized increase in loans, totaling $4.5 billion, and a 30% increase in total deposits, reaching $1.4 billion.
The company recorded a 6.04% rise in net interest income to $46.1 million, despite a slight contraction of seven basis points in net interest margin to 3.63%. Additionally, the ratio of non-performing loans increased to 0.30% from 0.07% in the previous quarter, attributed to a single Community Reinvestment Act loan. Five Star Bancorp remains well capitalized with a common equity Tier 1 capital ratio of 9.98%.
In terms of market expansion, Five Star plans to open a new office in Southern California and recently inaugurated a full-service branch in Lodi on July 13, 2026. The company also declared a cash dividend of $0.25 per share for the second quarter, with the same expected to be paid in August 2026.
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