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Get filing alertsFive Star Bancorp reports Q2 2026 net income of $19.4M, up 4% on strong loan and deposit growth
Filed July 22, 2026 · Period ending July 22, 2026 · ~1 min read
Key Changes
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Net income rose to $19.4M ($0.91 per share) in Q2 2026, up 4% from $18.6M in Q1 2026 and 34% from $14.5M in Q2 2025, driven by net interest income growth from balance sheet expansion.
Exhibit 99.1 view on EDGAR → -
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Loans held for investment grew $306M (7% quarter-over-quarter, 29% annualized) and deposits increased $330M (7% quarter-over-quarter, 30% annualized), with non-wholesale deposits up $463M.
Exhibit 99.1 view on EDGAR → -
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Nonperforming loans increased to 0.30% of loans from 0.07% prior quarter, driven by a single $11.4M Community Reinvestment Act loan placed on non-accrual that was previously downgraded to substandard in 2025.
Exhibit 99.1 view on EDGAR → -
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Net interest margin compressed seven basis points to 3.63% from 3.70% in Q1 2026 as rapid balance sheet expansion modestly diluted overall yield on earning assets, though margin remains 10 basis points above Q2 2025.
Exhibit 99.1 view on EDGAR → -
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Board declared $0.25 per share quarterly dividend on July 16, 2026, payable August 10 to shareholders of record as of August 3, representing a 27% payout ratio.
Exhibit 99.1 view on EDGAR →
Summary
Five Star Bancorp reported strong second quarter 2026 results, with net income rising 4% sequentially to $19.4 million and 34% year-over-year. The bank achieved robust organic growth, expanding loans held for investment by $306 million and deposits by $330 million during the quarter, both at approximately 30% annualized rates.
Non-wholesale deposits grew $463 million while wholesale funding declined $133 million, improving the funding mix. Return on average equity reached 16.67%.
Net interest margin compressed seven basis points to 3.63% as rapid balance sheet expansion modestly diluted overall yields, though the margin remains 10 basis points above the prior-year quarter despite a 70 basis point decline in the federal funds rate over that period. Asset quality saw a modest deterioration, with nonperforming loans rising to 0.30% of loans from 0.07% in the prior quarter, driven by a single $11.4 million Community Reinvestment Act loan placed on non-accrual that had been downgraded to substandard in 2025. The allowance for credit losses to nonperforming loans ratio remained strong at 355%. The board maintained its $0.25 per share quarterly dividend.
Section-by-Section Diff
Event · Item 7.01 — Regulation FD Disclosure
Five Star Bancorp furnished an investor presentation for its Q2 2026 earnings call scheduled for July 23, 2026.
Show 1 minor / wording change
Added in current filing · verify on EDGAR →
The Company is conducting an earnings call on July 23, 2026 at 10:00 AM PT/1:00 PM ET to discuss its second quarter 2026 financial results. A copy of the investor presentation to be used during the earnings call is attached to this Current Report on Form 8-K as Exhibit 99.2
Five Star Bancorp furnished an investor presentation for its second quarter 2026 earnings call scheduled for July 23, 2026. This is a routine disclosure under Item 7.01 Regulation FD, providing materials to be used during the earnings discussion.
Event · Exhibit 99.1
Added in current filing · view on EDGAR →
net income of $19.4 million for the three months ended June 30, 2026, as compared to $18.6 million for the three months ended March 31, 2026 and $14.5 million for the three months ended June 30, 2025
Five Star Bancorp reported net income of $19.4 million for Q2 2026, an increase of $0.8 million (4.2%) from Q1 2026 and $4.9 million (33.7%) from Q2 2025. Diluted earnings per share were $0.91, up $0.04 from Q1 2026 and $0.23 from Q2 2025. The improvement was driven by net interest income growth from strong loan and deposit expansion.
Added in current filing · view on EDGAR →
Total loans held for investment increased by $306.3 million, or 7% (approximately 29% when annualized), and total deposits increased by $330.0 million, or 7% (approximately 30% when annualized)
The bank achieved strong organic growth in Q2 2026, with loans held for investment increasing $306.3 million (7% quarter-over-quarter, 29% annualized) and total deposits increasing $330.0 million (7% quarter-over-quarter, 30% annualized). Non-wholesale deposits increased $463.1 million (11.33%) while wholesale deposits decreased $133.1 million (34.74%), reflecting a favorable shift in funding mix.
Added in current filing · view on EDGAR →
The ratio of nonperforming loans to loans held for investment at period end increased from 0.07% at March 31, 2026 to 0.30% at June 30, 2026, due to one Community Reinvestment Act loan that was placed on non-accrual status. The balance of the loan is $11.4 million as of June 30, 2026 and was originally downgraded to substandard in 2025.
Nonperforming loans increased from $3.1 million (0.07% of loans) at March 31, 2026 to $13.4 million (0.30% of loans) at June 30, 2026, driven by a single $11.4 million Community Reinvestment Act loan placed on non-accrual status. This loan was previously downgraded to substandard in 2025. The allowance for credit losses to nonperforming loans ratio remained strong at 354.57%.
Added in current filing · view on EDGAR →
The Company’s Board of Directors declared, and the Company subsequently paid, a cash dividend of $0.25 per share during the three months ended June 30, 2026. The Company’s Board of Directors declared an additional cash dividend of $0.25 per share on July 16, 2026, which the Company expects to pay on August 10, 2026 to shareholders of record as of August 3, 2026.
The board declared and paid a $0.25 per share cash dividend during Q2 2026 and declared another $0.25 per share dividend on July 16, 2026, payable August 10, 2026 to shareholders of record as of August 3, 2026. This represents continued capital return to shareholders.
Event · Exhibit 99.2
Five Star Bancorp reported Q2 2026 results: net income $19.4M, EPS $0.91, NIM 3.63%, loans grew $306M, deposits up $463M, NPLs 0.30% of loans.
Added in current filing · view on EDGAR →
Net income $ 19,399
Five Star Bancorp reported net income of $19.4 million for Q2 2026, up from $18.6 million in Q1 2026 and $14.5 million in Q2 2025. Return on average assets was 1.49% and return on average equity was 16.67%. Earnings per share were $0.91, compared to $0.87 in Q1 2026.
Added in current filing · view on EDGAR →
Net interest margin 3.63 % 3.70 % 3.53 %
Net interest margin compressed to 3.63% in Q2 2026 from 3.70% in Q1 2026, though still above the 3.53% reported in Q2 2025. Average loan yield held steady at 6.08%, while the average cost of interest-bearing deposits ticked up slightly to 2.89% from 2.88%.
Added in current filing · view on EDGAR →
Continued balance sheet growth with increases in loans held for investment of $306.3 million and non-wholesale(1) deposits of $463.1 million since March 31, 2026.
The bank grew loans held for investment by $306.3 million and non-wholesale deposits by $463.1 million during Q2 2026. Total assets reached $5.4 billion, loans held for investment reached $4.5 billion, and total deposits reached $4.8 billion as of June 30, 2026.
Added in current filing · view on EDGAR →
Nonperforming loans to loans held for investment 0.30 % 0.08 %
Nonperforming loans increased to 0.30% of loans held for investment as of June 30, 2026, up from 0.08% at December 31, 2025. In dollar terms, nonperforming loans rose to $13.4 million from $3.1 million at year-end 2025. The allowance for credit losses to loans held for investment declined slightly to 1.05% from 1.09%.
Added in current filing · view on EDGAR →
On April 16, 2026 and July 16, 2026, the Company declared cash dividends of $0.25 per share for the three months ended March 31, 2026 and June 30, 2026, respectively.
The company declared quarterly cash dividends of $0.25 per share in both April and July 2026, representing a cash dividend payout ratio of 27.47% for Q2 2026. Tangible book value per share increased to $22.6 million from $21.45 in the prior quarter.
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Figures/quotes linked to EDGAR · Narrative written by AI · Jul 23, 2026 · How we verify