Five Star Bancorp (FSBC, Financial) released its Q3 2023 earnings report on October 31, 2023. The company reported a net income of $11.0 million, a decrease from $12.7 million in Q2 2023 and $11.7 million in Q3 2022. Despite the decrease in net income, the company saw growth in total loans and deposits during the quarter.
Financial Performance
FSBC's return on average assets (ROAA) decreased to 1.30% in Q3 2023, compared to 1.55% in Q2 2023 and 1.60% in Q3 2022. Similarly, the return on average equity (ROAE) also decreased to 16.09% in Q3 2023, compared to 19.29% in Q2 2023 and 19.35% in Q3 2022.
The company's pre-tax income was $15.8 million in Q3 2023, a decrease from $17.2 million in Q2 2023 and $16.5 million in Q3 2022. Basic and diluted earnings per common share were $0.64 in Q3 2023, compared to $0.74 in Q2 2023 and $0.68 in Q3 2022.
Loan and Deposit Growth
Despite the decrease in net income, FSBC saw growth in total loans and deposits during Q3 2023. The company's total loans held for investment increased by 2.82% to $3,009,930, and total deposits increased by 3.50% to $3,032,210. The company's new San Francisco Bay Area team, which increased to nine employees, generated $28.9 million of deposits during the quarter.
Dividends and Shareholder Value
FSBC declared a cash dividend of $0.20 per share during Q3 2023, demonstrating its commitment to shareholder value. The company's Board of Directors subsequently declared another cash dividend of $0.20 per share on October 19, 2023.
Future Outlook
Despite the decrease in net income, FSBC remains focused on its long-term strategy. The company continues to onboard new customers and enhance existing relationships, and it expanded its presence in the San Francisco Bay Area during Q3 2023. FSBC's management remains vigilant and focused on disciplined business practices amid ongoing market headwinds and uncertainties.
Explore the complete 8-K earnings release (here) from Five Star Bancorp for further details.
