Company: FSBC
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001275168-25-000106
Chunk: 62

Company: FIVE STAR BANCORP
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1
Chunk 62
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’s ability to repay, estimated value of any underlying collateral, and prevailing economic conditions. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as more information becomes available.

At March 31, 2025, the Company’s allowance for credit losses was $39.2 million, as compared to $37.8 million at December 31, 2024. The $1.4 million increase in the allowance is due to a $2.2 million provision for credit losses recorded during the three months ended March 31, 2025, partially offset by net charge-offs mainly attributable to commercial and industrial loans of $0.7 million, during the same period.

While the entire allowance for credit losses is available to absorb losses from any and all loans, Table 16 represents management’s allocation of our allowance for credit losses by loan category, and the balance of loans in each category as a percentage of total loans, for the periods indicated.

Table 16: Allocation of the Allowance for Credit LossesMarch 31, 2025December 31, 2024(dollars in thousands)Allowance for Credit Losses% of Loans to Total LoansAllowance for Credit Losses% of Loans to Total LoansReal estate:Commercial$27,027 81.11 %$25,864 80.75 %Commercial land and development70 0.10 %78 0.11 %Commercial construction2,227 3.12 %2,268 3.15 %Residential construction78 0.16 %64 0.13 %Residential279 0.94 %270 0.93 %Farmland598 1.20 %607 1.34 %Commercial:Secured5,905 4.77 %5,866 4.91 %Unsecured403 0.96 %278 0.78 %Consumer and other2,637 7.64 %2,496 7.90 %Total allowance for credit losses$39,224 100.00 %$37,791 100.00 %

The ratio of the allowance for credit losses to total loans held for investment was 1.08% at March 31, 2025, as compared to 1.07% at December 31, 2024.

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Table 17: Activity Within the Allowance for Credit LossesAs of and