Company: FSBC
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001628280-25-038796
Chunk: 212

Company: FIVE STAR BANCORP
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 2
Chunk 212
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 our loan portfolio at the balance sheet date.

Three months ended June 30, 2025 compared to three months ended June 30, 2024

We recorded a $2.5 million provision for credit losses in the second quarter of 2025, compared to a $2.0 million provision for credit losses for the same period of 2024. The increase in the provision for credit losses in the second quarter of 2025 is mainly due to an increase in net charge-offs.

40

Six months ended June 30, 2025 compared to six months ended June 30, 2024

We recorded a $4.4 million provision for credit losses in the first six months of 2025, as compared to a $2.9 million provision for credit losses for the same period of 2024. The increase in the provision for credit losses recorded during the first six months of 2025 is mainly due to increases in loan growth and net charge-offs.

Non-interest Income

Non-interest income is a secondary contributor to our net income, following interest income. Non-interest income consists of service charges on deposit accounts, net gain on sale of securities, gain on sale of loans, loan-related fees, FHLB stock dividends, earnings on BOLI, and other income.

Three months ended June 30, 2025 compared to three months ended June 30, 2024

Table 7 details the components of non-interest income for the periods indicated.

Table 7: Non-interest IncomeFor the three months ended(dollars in thousands)June 30, 2025June 30, 2024$ Change% ChangeService charges on deposit accounts$196 $189 $7 3.70 %Gain on sale of loans119 449 (330)(73.50)%Loan-related fees468 370 98 26.49 %FHLB stock dividends325 329 (4)(1.22)%Earnings on BOLI220 158 62 39.24 %Other income482 78 404 517.95 %Total non-interest income$1,810 $1,573 $237 15.07 %

Gain on sale of loans. The decrease related primarily to an overall decline in the volume of loans sold, partially offset by an improvement in the effective yield of loans sold. During the three months ended June 30, 2025, approximately $1.6