Company: FSBC
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0001275168-25-000038
Chunk: 134

Company: FIVE STAR BANCORP
Filing Date: 2025-02-28
Form: 10-K
Item: Item 7
Chunk 134
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 proceeds of $38.4 million on the loans sold in 2023, resulting in a net gain on sale of $2.0 million.

Non-accrual Loans

Table 13 provides details of our nonperforming and restructured assets and certain other related information as of the dates presented:

Table 13: Nonperforming and Restructured Assets(dollars in thousands)December 31, 2024December 31, 2023Non-accrual loansReal estate:Commercial$1,750 $1,893 Commercial:Secured48 72 Total non-accrual loans1,798 1,965 Loans past due 90 days or more and still accruingTotal loans past due 90 days or more and still accruing— — Total nonperforming loans1,798 1,965 Real estate owned87 — Total nonperforming assets$1,885 $1,965   Performing LMs (not included above)$— $— Allowance for credit losses to period end nonperforming loans2,101.78 %1,752.70 %Nonperforming loans to loans held for investment0.05 %0.06 %Nonperforming assets to total assets0.05 %0.05 %Nonperforming loans plus performing LMs to loans held for investment0.05 %0.06 %

The ratio of nonperforming loans to loans held for investment was 0.05% at December 31, 2024, decreasing from 0.06% as of December 31, 2023.

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The ratio of the allowance for credit losses to period end nonperforming loans increased from 1,752.70% as of December 31, 2023 to 2,101.78% as of December 31, 2024. This increase was due to: (i) a 9.76% increase in the allowance for credit losses year-over-year; and (ii) an 8.50% decrease in nonperforming loans year-over-year.

Potential Problem Loans

We utilize a risk grading system for our loans to aid us in evaluating the overall credit quality of our real estate loan portfolio and assessing the adequacy of our ACL. All loans are grouped into a risk category at the time of origination. Commercial real estate loans over $2.0 million are reevaluated at