Company: FSBC
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001275168-25-000106
Chunk: 134

Company: FIVE STAR BANCORP
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 8
Chunk 134
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 assets, then annualized based on the number of days in the given period.

36

Analysis of changes in interest income and expenses. Increases and decreases in interest income and interest expense result from changes in average balances (volume) of interest-earning assets and interest-bearing liabilities, as well as changes in average yields/rates. Table 4 shows the effect that these factors had on the interest earned from our interest-earning assets and interest incurred on our interest-bearing liabilities. The effect of changes in volume is determined by multiplying the change in volume by the current period’s average yield/rate. The effect of rate changes is calculated by multiplying the change in average yield/rate by the previous period’s volume. Changes not solely attributable to volume or yields/rates have been allocated in proportion to the respective volume and yield/rate components.

Table 4: Interest Income and Expense Change AnalysisFor the three months endedMarch 31, 2025 compared tothe three months ended March 31, 2024(dollars in thousands)Volume Yield/Rate Total Increase (Decrease)Interest-earning deposits in banks$995 $(522)$473 Investment securities(53)(19)(72)Loans held for investment and sale6,916 2,229 9,145 Total interest-earning assets7,858 1,688 9,546 Interest-bearing transaction accounts37 (51)(14)Savings accounts(6)(83)(89)Money market accounts787 (507)280 Time accounts2,939 (679)2,260 Subordinated notes and other borrowings(152)28 (124)Total interest-bearing liabilities3,605 (1,292)2,313 Changes in net interest income/margin$4,253 $2,980 $7,233 

Net interest income during the three months ended March 31, 2025 increased by $7.2 million, or 27.05%, to $34.0 million compared to $26.7 million during the three months ended March 31, 2024. Net interest margin totaled 3.45% for the three months ended March 31, 2025, an increase of 31 basis points compared to the same quarter of the prior year. The increase in net interest income is primarily attributable to an additional $9.1 million in loan interest income due to a $485.7 million, or 15.76%, increase in the average balance of