Company: FSBC
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001275168-25-000106
Chunk: 31

Company: FIVE STAR BANCORP
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1
Chunk 31
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 vest over one year. All RSAs were granted at the fair value of common stock at the time of the award. The RSAs are considered fixed awards, as the number of shares and fair value are known at the date of grant and the fair value at the grant date is amortized over the service period.For both the three months ended March 31, 2025 and the three months ended March 31, 2024, $0.3 million of non-cash stock compensation expense was recognized.As of March 31, 2025, there was approximately $2.1 million of unrecognized compensation expense related to the 111,786 unvested restricted shares. The holders of unvested RSAs are entitled to dividends at the same per-share ratio as holders of common stock. Tax benefits for dividends paid on unvested RSAs are recorded as tax benefits in the consolidated statements of income with a corresponding decrease to current taxes payable. Such tax benefits and related expense are expected to be recognized over the weighted average term remaining on the unvested restricted shares of 2.82 years as of March 31, 2025. The impact of tax benefits for dividends paid on unvested restricted stock on the Company’s unaudited consolidated statements of income for the three months ended March 31, 2025 and March 31, 2024 was immaterial.Table 7.2 summarizes activity related to restricted shares for the periods indicated.Table 7.2: Unvested Restricted Share ActivityFor the three months ended March 31,20252024Shares  Weighted Average Grant Date Fair ValueSharesWeighted Average Grant Date Fair ValueBeginning of the period balance120,577 $21.36 69,338 $20.53 Shares granted10,485 30.89 96,380 21.97 Shares vested(18,943)22.33 (3,252)28.51 Shares forfeited(333)21.97 (118)20.00 End of the period balance111,786 $22.08 162,348 $21.22 

Note 8: Commitments and Contingencies

Financial Instruments with Off-Balance Sheet RiskSome financial instruments, such as loan commitments, credit lines, letters of credit, and overdraft protection, are issued to meet customer financing needs. These are agreements to provide credit or to support the credit of others, as long as conditions established in the contract are met,