Company: FSBC
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001628280-25-050090
Chunk: 149

Company: FIVE STAR BANCORP
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 149
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2 million in interest expense compared to the same quarter of the prior year. The increase in interest expense is mainly attributable to a $776.9 million, or 24.39%, increase in the average balance of deposits at an average rate of 19 basis points lower during the three months ended September 30, 2025 compared to the same quarter of the prior year. In addition, the average balance of non-interest-bearing deposits increased by $163.7 million, or 19.19%, compared to the same period of the prior year.

Nine months ended September 30, 2025 compared to nine months ended September 30, 2024

Net interest income increased by $23.6 million, or 27.39%, for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024, and our net interest margin increased 22 basis points when compared to the same period in 2024. The increase in net interest income is primarily attributable to an increase in interest income driven by loan growth and an improvement in the average yield on loans, partially offset by an increase in interest expense driven by deposit growth. Additional detail relating to net interest margin in each period is provided below.

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Average balance sheet, interest, and yield/rate analysis. Table 5 presents average balance sheet information, interest income, interest expense, and the corresponding average yield earned or rate paid for each period reported. The average balances are daily averages and include both performing and nonperforming loans.

Table 5: Average Balances, Interest, and Yield/Rate(dollars in thousands)For the nine months endedSeptember 30, 2025For the nine months ended September 30, 2024Average BalanceInterest Income/ExpenseAverage Yield/Rate Average BalanceInterest Income/ExpenseAverage Yield/RateAssetsInterest-earning deposits in banks1$381,107 $12,571 4.41 %$169,244 $6,745 5.32 %Investment securities1,298,375 1,737 2.36 %107,081 1,923 2.40 %Loans held for investment and sale1,33,698,120 168,204 6.08 %3,211,941 140,538 5.84 %Total interest-earning assets14,177,602 182,512 5.84 %3,488,266