Company: FSBC
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001275168-25-000106
Chunk: 16

Company: FIVE STAR BANCORP
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1
Chunk 16
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 after management’s comprehensive analysis of the issuers’ latest financial information, credit ratings by major credit agencies, and/or credit enhancements.Non-Marketable Securities

FHLB capital stock: As a member of the FHLB, the Company is required to maintain a minimum investment in FHLB capital stock determined by the board of directors of the FHLB. The minimum investment requirements can increase in the event the Company increases its total asset size or borrowings with the FHLB. Shares cannot be purchased or sold except between the FHLB and its members at the $100 per share par value. The Company held $15.0 million of FHLB stock at both March 31, 2025 and December 31, 2024. The carrying amounts of these investments are reasonable estimates of fair value because the securities are restricted to member banks and do not have a readily determinable market value. Based on management’s analysis of the FHLB’s financial condition and certain qualitative factors, management determined that the FHLB stock was not impaired at March 31, 2025 or December 31, 2024. 

15

Note 4: Loans and Allowance for Credit Losses

The Company’s loan portfolio is its largest class of earning assets and typically provides higher yields than other types of earning assets. Associated with the higher yields is an inherent amount of credit risk which the Company attempts to mitigate through strong underwriting practices. Table 4.1 presents the balance of each major product type within the Company’s portfolio as of the dates indicated.Table 4.1: Loans Outstanding(in thousands)March 31, 2025December 31, 2024Real estate:Commercial$2,941,201 $2,857,173 Commercial land and development3,556 3,849 Commercial construction113,002 111,318 Residential construction5,747 4,561 Residential34,053 32,774 Farmland43,643 47,241 Commercial:Secured170,525 170,548 Unsecured34,970 27,558 Consumer and other277,093 279,584 Subtotal3,623,790 3,534,606 Net deferred loan fees(1,971)(1,920)Loans held for investment3,621,819 3,532,686 Allowance for credit losses(39,224)(37,791)Loans held for investment, net of