Company: FSBC
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001628280-25-038796
Chunk: 135

Company: FIVE STAR BANCORP
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 135
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 of credit as it does for on-balance sheet instruments, including obtaining collateral at exercise of the commitment. The contractual amounts of unfunded loan commitments and standby letters of credit not reflected in the unaudited consolidated balance sheets at the dates indicated are presented in Table 8.1.Table 8.1: Unfunded Loan Commitments and Standby Letters of Credit(in thousands)June 30, 2025December 31, 2024Commercial lines of credit$242,896 $230,063 Undisbursed commercial real estate loans105,207 98,508 Undisbursed construction loans75,691 74,671 Agricultural lines of credit22,813 21,155 Undisbursed residential real estate loans7,145 7,225 Undisbursed agricultural real estate loans2 — Other1,657 1,973 Total commitments and standby letters of credit$455,411 $433,595 The Company records an allowance for credit losses on unfunded loan commitments at the consolidated balance sheet date based on estimates of the probability that these commitments will be drawn upon according to historical utilization experience of the different types of commitments and historical loss rates determined for pooled funded loans. The allowance for credit losses on unfunded commitments totaled $0.6 million as of June 30, 2025 and $0.7 million as of December 31, 2024, which is recorded in “Interest payable and other liabilities” in the unaudited consolidated balance sheets.Concentrations of credit risk: The Company grants real estate mortgage, real estate construction, commercial, and consumer loans to customers primarily in Northern California. Although the Company has a diversified loan portfolio, a substantial portion is secured by commercial and residential real estate.In management’s judgment, a concentration of loans exists in real estate related loans, which represented approximately 86.97% of the Company’s loan portfolio at June 30, 2025 and 86.41% of the Company’s loan portfolio at December 31, 2024. Although management believes such concentrations have no more than the normal risk of collectability, a substantial decline in the economy in general, or a decline in real estate values in the Company’s primary market areas in particular, could have an adverse impact on the collectability of these loans. Personal and business incomes represent the primary source of repayment for the majority of these loans.Deposit concentrations: At June 30, 2025, the Company had