Company: FSBC
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001628280-25-050090
Chunk: 169

Company: FIVE STAR BANCORP
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 169
---
 only when they are brought fully current with respect to interest and principal and when, in the judgment of management, the loans are estimated to be fully collectible as to both principal and interest.

SBA Loans

During the three months ended September 30, 2025, the Company did not sell any SBA 7(a) loans. During the nine months ended September 30, 2025, the Company sold ten SBA 7(a) loans with government-guaranteed portions totaling approximately $3.3 million. The Company received gross proceeds of $3.5 million on the loans sold during the nine months ended September 30, 2025, resulting in the recognition of a net gain on sale of $0.2 million.

Non-accrual Loans

Table 18 provides details of our nonperforming and restructured assets and certain other related information as of the dates presented.

Table 18: Nonperforming and Restructured AssetsAs of (dollars in thousands)September 30, 2025December 31, 2024Non-accrual loans:Real estate:Commercial$1,873 $1,750 Commercial:Secured256 48 Total non-accrual loans2,129 1,798 Loans past due 90 days or more and still accruing:Total loans past due and still accruing— — Total nonperforming loans2,129 1,798 Real estate owned— 87 Total nonperforming assets$2,129 $1,885 Performing LMs (not included above)$— $— Allowance for credit losses to period end nonperforming loans1,975.62 %2,101.78 %Nonperforming loans to loans held for investment0.05 %0.05 %Nonperforming assets to total assets0.05 %0.05 %Nonperforming loans plus performing LMs to loans held for investment0.05 %0.05 %

The ratio of nonperforming loans to loans held for investment was 0.05% at September 30, 2025 and December 31, 2024.

52

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 allowance for credit losses. All loans are grouped into a risk category at the time of orig