Five Star Bancorp (NASDAQ:FSBC) Reports Strong Q4 2025 Earnings, Beats Estimates
FIVE STAR BANCORP (FSBC) released its fourth quarter and full-year 2025 financial results after the market close on January 26, 2026, delivering a performance that exceeded analyst expectations on both the top and bottom lines. The California-based community bank reported continued growth in loans, deposits, and profitability, capping off what management termed an "outstanding year of achievement."
Earnings and Revenue Versus Estimates
The company's quarterly results came in ahead of Wall Street forecasts. For the fourth quarter of 2025, Five Star reported diluted earnings per share (EPS) of $0.83, surpassing the analyst consensus estimate of $0.78. Revenue for the quarter was $43.47 million, also edging out the estimated $43.43 million.
The full-year picture was even stronger. Net income for 2025 reached $61.6 million, a significant 35% increase compared to $45.7 million in 2024. Diluted EPS for the year was $2.90, up from $2.26 in the prior year.
Market Reaction and Price Action
The market's initial reaction to the earnings beat appears muted in after-hours trading, with the stock showing no significant movement immediately following the release. However, the stock has demonstrated positive momentum in the lead-up to the report:
- The share price has increased approximately 2.95% over the past week.
- It is up about 4.92% over the last two weeks.
- The stock has gained roughly 5.75% over the past month.
This pre-earnings appreciation suggests that investors may have anticipated a solid report, potentially limiting the surprise factor and subsequent volatility upon the official release.
Key Highlights from the Quarterly Report
The earnings press release outlined several pillars of the company's robust performance in Q4 and throughout 2025:
- Profitability Metrics: Key efficiency and return ratios showed improvement. The return on average assets (ROAA) was 1.50% for Q4, up from 1.44% in the prior quarter. The return on average equity (ROAE) reached 15.97%. The net interest margin expanded to 3.66% in Q4, up from 3.56% in Q3.
- Balance Sheet Growth: The company experienced strong organic growth. Total loans held for investment increased by $542.2 million, or 15%, year-over-year. Total deposits grew by $643.1 million, or 18%, over the same period, with a notable 25% increase in core, non-wholesale deposits.
- Credit Quality: Asset quality remains high, though management noted a slight increase. The ratio of nonperforming loans to total loans increased modestly from 0.05% at the end of 2024 to 0.08% at the end of 2025. The allowance for credit losses stood at 1.09% of loans.
- Capital and Shareholder Returns: The company remains well-capitalized and announced an increase in its quarterly cash dividend. A dividend of $0.25 per share was declared for payment in February 2026, up from the $0.20 per share paid in the previous quarter.
Outlook and Forward Estimates
While the press release did not provide specific quantitative financial guidance for 2026, CEO James Beckwith expressed confidence, stating the company is "focused on continued success in the future" and will continue to emphasize expense management and conservative underwriting.
Analysts currently have estimates in place for the coming periods. For the first quarter of 2026, the consensus EPS estimate is $0.79 on estimated sales of $44.1 million. For the full 2026 fiscal year, analysts are projecting EPS of $3.42 on estimated sales of $188.7 million.
Conclusion
Five Star Bancorp concluded its 2025 fiscal year with a strong quarter, beating earnings estimates and demonstrating solid growth in its core banking activities. The expansion of its net interest margin, controlled efficiency ratio, and growth in loans and deposits paint a picture of a profitable and expanding community bank. The market's positive price action in the weeks leading to the report and the announced dividend increase reflect investor confidence. The focus now shifts to the company's ability to execute its growth strategy in its Northern California markets and meet analyst expectations for the new fiscal year.
For a detailed look at historical earnings, future estimates, and analyst projections for FIVE STAR BANCORP, visit the earnings estimates page.
Disclaimer: This article is for informational purposes only and does not constitute investment advice, an endorsement, or a recommendation to buy, sell, or hold any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
