Five Star Bancorp (Nasdaq: FSBC) reported net income of $21.9 million for the three months ended September 30, 2026, an increase from $19.4 million in the prior quarter and $16.3 million in the same period in 2025. The company reported basic earnings per share of $0.92 for the third quarter of 2026, up $0.01 from the second quarter of 2026 and $0.15 from the third quarter of 2025.
Net interest income increased by $4.8 million, or 11%, to $50.9 million for the quarter ended September 30, 2026, compared to the prior quarter. The net interest margin expanded six basis points to 3.69% for the third quarter of 2026. The efficiency ratio improved to 39.13% for the quarter, down from 40.91% in the second quarter of 2026.
During the quarter, Five Star completed an underwritten public offering of 3,133,750 shares of common stock, generating approximately $130.0 million in net proceeds. This capital raise resulted in an increase in weighted average basic common shares outstanding by 2,346,467, or 11.03%, compared to the second quarter of 2026. As a result of the offering, the company’s common equity Tier 1 capital ratio increased to 12.52% as of September 30, 2026, from 9.97% as of June 30, 2026.
Total loans held for investment grew by $184.5 million, or 4%, during the three months ended September 30, 2026. Total deposits increased by $25.1 million, or 0.52%, driven by a $75.1 million increase in non-wholesale deposits, which was partially offset by a $50.0 million decrease in wholesale deposits. The ratio of nonperforming loans to loans held for investment decreased from 0.30% at June 30, 2026, to 0.28% at September 30, 2026.
The company’s Board of Directors declared a cash dividend of $0.25 per share for the third quarter of 2026. Additionally, the Board declared an additional cash dividend of $0.25 per share on October 15, 2026, which is expected to be paid on November 9, 2026, to shareholders of record as of November 2, 2026.
