Company: FSBC
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001628280-25-038796
Chunk: 73

Company: FIVE STAR BANCORP
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 1
Chunk 73
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 in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral, and prevailing economic conditions. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as more information becomes available.

At June 30, 2025, the Company’s allowance for credit losses was $40.2 million, as compared to $37.8 million at December 31, 2024. The $2.4 million increase in the allowance is due to a $4.6 million provision for credit losses recorded during the six months ended June 30, 2025, partially offset by net charge-offs of $2.2 million, primarily attributable to commercial and industrial loans, during the same period.

While the entire allowance for credit losses is available to absorb losses from any and all loans, Table 20 represents management’s allocation of our allowance for credit losses by loan category, and the balance of loans in each category as a percentage of total loans, for the periods indicated.

Table 20: Allocation of the Allowance for Credit LossesJune 30, 2025December 31, 2024(dollars in thousands)Allowance for Credit Losses% of Loans to Total LoansAllowance for Credit Losses% of Loans to Total LoansReal estate:Commercial$27,792 81.54 %$25,864 80.75 %Commercial land and development33 0.04 %78 0.11 %Commercial construction2,575 2.99 %2,268 3.15 %Residential construction75 0.15 %64 0.13 %Residential334 0.88 %270 0.93 %Farmland723 1.37 %607 1.34 %Commercial:Secured5,623 4.63 %5,866 4.91 %Unsecured417 1.00 %278 0.78 %Consumer and other2,595 7.40 %2,496 7.90 %Total allowance for credit losses$40,167 100.00 %$37,791 100.00 %

The ratio of the allowance for credit losses to total loans held for investment was 1.07% at June 30, 2025 and December 31, 2024.

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