Company: FSBC
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001628280-25-050090
Chunk: 155

Company: FIVE STAR BANCORP
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 155
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 divided by the sum of net interest income and non-interest income. We constantly seek to identify ways to streamline our business and operate more efficiently in order to reduce our non-interest expense over time as a percentage of our revenue, while continuing to achieve growth in total loans and assets.

Over the past several years, we have continued to invest significant resources in personnel, technology, and infrastructure. As we execute initiatives based on growth, we expect non-interest expense to continue to grow. Non-interest expense has increased throughout the periods presented below; however, we expect our efficiency ratio will continue to improve going forward due, in part, to our past investment in infrastructure.

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Three months ended September 30, 2025 compared to three months ended September 30, 2024

Table 9 details the components of non-interest expense for the periods indicated.

Table 9: Non-interest ExpenseFor the three months ended(dollars in thousands)September 30, 2025September 30, 2024$ Change% ChangeSalaries and employee benefits$9,716 $7,969 $1,747 21.92 %Occupancy and equipment700 626 74 11.82 %Data processing and software1,559 1,327 232 17.48 %FDIC insurance500 405 95 23.46 %Professional services932 830 102 12.29 %Advertising and promotional803 584 219 37.50 %Loan-related expenses317 292 25 8.56 %Other operating expenses2,053 1,743 310 17.79 %Total non-interest expense$16,580 $13,776 $2,804 20.35 %

Salaries and employee benefits. The increase related primarily to: (i) a $1.7 million increase in salaries, benefits, and bonus expense, mainly related to a 13.33% increase in headcount between September 30, 2024 and September 30, 2025; and (ii) a $0.5 million increase in commissions paid. This increase was partially offset by a $0.5 million increase in deferred loan origination costs due to a greater number of loan originations, net of purchased consumer loans, period-over-period.

Data processing and software. The increase was primarily due to: (i) increased usage of our digital banking platform; (ii) higher transaction volumes related to the increased number of