Company: FSBC
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0001275168-25-000038
Chunk: 119

Company: FIVE STAR BANCORP
Filing Date: 2025-02-28
Form: 10-K
Item: Item 7
Chunk 119
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3Non-accrual loans are included in total loan balances. No adjustment has been made for these loans in the yield calculations. Interest income on loans includes amortization of deferred loan fees, net of deferred loan costs. Allowance for credit losses is not included in total loan balances.

4Allowance for credit losses is included in interest receivable and other assets, net.

5Net interest spread represents the average yield earned on interest-earning assets minus the average rate paid on interest-bearing liabilities.

6Net interest margin is computed by calculating the difference between interest income and interest expense, divided by the average balance of interest-earning assets, then annualized based on the number of days in the given period.

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 Analysis(dollars in thousands)For the year ended December 31, 2024 compared to the year ended December 31, 2023Variance due toVolume Yield/Rate Total Interest-earning deposits with banks$1,730 $281 $2,011 Investment securities(172)102 (70)Loans held for investment and sale19,798 10,830 30,628 Total interest-earning assets21,356 11,213 32,569 Interest-bearing transaction accounts(234)1,629 1,395 Savings accounts(457)968 511 Money market accounts9,460 10,358 19,818 Time accounts1,948 865 2,813 Subordinated notes and other borrowings(998)199 (799)Total interest-bearing liabilities9,719 14,019 23,738 Changes in net interest income/margin$11,637 $(2,806)$8,831 

Net interest