Company: FSBC
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001628280-25-050090
Chunk: 71

Company: FIVE STAR BANCORP
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 71
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0.05 %

The ratio of nonperforming loans to loans held for investment was 0.05% at September 30, 2025 and December 31, 2024.

52

Potential Problem Loans

We utilize a risk grading system for our loans to aid us in evaluating the overall credit quality of our real estate loan portfolio and assessing the adequacy of our allowance for credit losses. All loans are grouped into a risk category at the time of origination. Commercial real estate loans over $2.0 million are reevaluated at least annually for proper classification in conjunction with our review of property and borrower financial information. All loans are reevaluated for proper risk grading as new information such as payment patterns, collateral condition, and other relevant information comes to our attention.

The banking industry defines loans graded substandard or doubtful as “classified” loans. Table 19 shows our levels of classified loans as of the periods indicated. 

Table 19: Gross Loans Held for Investment by Credit Quality Risk Rating(dollars in thousands)PassWatchSubstandardDoubtfulTotalSeptember 30, 2025Real estate:Commercial$3,045,455 $80,402 $18,446 $— $3,144,303 Commercial land and development934 — — — 934 Commercial construction136,988 — — — 136,988 Residential construction5,976 — — — 5,976 Residential35,739 — — — 35,739 Farmland57,572 — — — 57,572 Commercial:Secured178,719 12,347 104 — 191,170 Unsecured38,658 — — — 38,658 Consumer and other278,203 — 6 — 278,209 Total $3,778,244 $92,749 $18,556 $— $3,889,549 December 31, 2024Real estate:Commercial$2,746,594 $107,992 $2,587 $— $2,857,173 Commercial land and development3,849 — — — 3,849 Commercial construction111,318 — — — 111,318 Residential construction4,561 — — — 4,561 Residential32,774