Company: FSBC
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001628280-25-050090
Chunk: 49

Company: FIVE STAR BANCORP
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 49
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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.

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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 AnalysisFor the three months endedSeptember 30, 2025 compared tothe three months ended September 30, 2024(dollars in thousands)Volume Yield/Rate Total Increase (Decrease)Interest-earning deposits in banks$3,613 $(261)$3,352 Investment securities(55)14 (41)Loans held for investment and sale7,509 1,358 8,867 Total interest-earning assets11,067 1,111 12,178 Interest-bearing transaction accounts(6)(37)(43)Savings accounts41 (125)(84)Money market accounts2,560 (1,900)660 Time accounts3,387 (660)2,727 Subordinated notes and other borrowings(44)— (44)Total interest-bearing liabilities5,938 (2,722)3,216 Changes in net interest income/margin$5,129 $3,833 $8,962 

Net interest income during the three months ended September 30, 2025 increased to $39.3 million compared to $30.4 million during the three months ended September 30, 2024. Net interest margin totaled 3.56% for the three months ended September 30, 2025, compared to 3.37% in the same quarter of the prior