Company: FSBC
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001275168-25-000106
Chunk: 132

Company: FIVE STAR BANCORP
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 8
Chunk 132
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, and other borrowings, which are used to fund those assets. In evaluating our net interest income, we measure and monitor yields on our interest-earning assets and interest-bearing liabilities as well as trends in our net interest margin. Net interest margin is a ratio calculated as net interest income divided by total interest-earning assets for the same period. We manage our earning assets and funding sources in order to maximize this margin while limiting credit risk and interest rate sensitivity to our established risk appetite levels. Changes in market interest rates and competition in our market typically have the largest impact on periodic changes in our net interest margin.

Net interest income increased by $7.2 million, or 27.05%, for the three months ended March 31, 2025, compared to the three months ended March 31, 2024, and our net interest margin increased 31 basis points during the same period. The increase was primarily due to an increase in interest income driven by a higher balance of loans with higher yields, partially offset by an increase in interest expense due to larger average deposit balances. Additional detail relating to net interest margin in each period is provided below.

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Average balance sheet, interest, and yield/rate analysis. Table 3 presents average balance sheet information, interest income, interest expense, and the corresponding average yield earned or rate paid for each period reported. The average balances are daily averages and include both performing and nonperforming loans.

Table 3: Average Balances, Interest, and Yield/RateFor the three months endedMarch 31, 2025For the three months endedMarch 31, 2024(dollars in thousands)Average BalanceInterest Income/ExpenseAverage Yield/Rate Average BalanceInterest Income/ExpenseAverage Yield/RateAssetsInterest-earning deposits in banks1$328,571 $3,575 4.41 %$233,002 $3,102 5.35 %Investment securities1,2100,474 581 2.34 %109,177 653 2.41 %Loans held for investment and sale1,33,567,992 52,931 6.02 %3,082,290 43,786 5.71 %Total interest-earning assets13,997,037 57,087 5.79 %3,424,469 47,541 5.58 %Interest receivable and other assets, net493,543 93,983 Total