Company: FSBC
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0001275168-25-000038
Chunk: 1

Company: FIVE STAR BANCORP
Filing Date: 2025-02-28
Form: 10-K
Item: Item 7A
Chunk 1
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 the use of brokered deposits. The Company monitors the impact of interest rate risk on EVE by reviewing and managing assets and liabilities with varying interest rate risks, such as cash and time deposits. Assets and liabilities are subject to fluctuations at each measurement date based on the composition of the balance sheet at each measurement date. EVE results are compared to previous periods and established policies on a quarterly basis. 

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As of December 31, 2024, the overnight federal funds rate (the rate used in the interest rate shock scenarios listed below) was 4.33%, a decrease from 5.33% at December 31, 2023. The scenarios presented assume that interest rates change instantaneously (“shock”) and that there are no significant changes in the structure of the Company’s balance sheet over the twelve months being measured.

Table 25 summarizes the estimated effect on net interest income and EVE from changing interest rates as measured against a flat rate (no interest rate change) instantaneous parallel shock scenario over a twelve-month period utilizing an interest sensitivity (GAP) analysis based on the Company’s specific mix of interest-earning assets and interest-bearing liabilities as of December 31, 2024 and 2023. 

Table 25: Estimated Effect on Net Interest Income and EVE from Changing Interest RatesDecember 31, 2024December 31, 2023Change in Interest RatesEstimated Change in NII(as % of NII)Estimated Change in EVE(as % of EVE)Estimated Change in NII(as % of NII)Estimated Change in EVE(as % of EVE)(in basis points)+300 (shock)(6.32)%(12.51)%(13.73)%(22.17)%+200 (shock)(4.09)%(8.70)%(9.02)%(15.23)%+100 (shock)(2.15)%(4.29)%(4.63)%(7.90)%+   0 (flat)— %— %— %— %-100 (shock)2.14 %3.93 %4.43 %8.09 %-200 (shock)4.80 %6.40 %8.93 %14.76 %-300 (shock)7.95 %10.12 %13.72 %22.38 %

The computation of the prospective effects of hypothetical interest rate changes requires numerous assumptions, which are based upon our experience