Company: FSBC
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001275168-25-000106
Chunk: 32

Company: FIVE STAR BANCORP
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1
Chunk 32
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 and usually have expiration dates. Commitments may expire without being used. Substantially all of these commitments are at variable interest rates, based on an index, and have fixed expiration dates.Off-balance sheet risk to loan loss exists up to the face amount of these instruments, although material losses are not anticipated. The Company uses the same credit policies in making commitments to originate loans and lines of credit as it does for on-balance sheet instruments, including obtaining collateral at exercise of the commitment. The contractual 

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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)March 31, 2025December 31, 2024Commercial lines of credit$215,712 $230,063 Undisbursed commercial real estate loans96,558 98,508 Undisbursed construction loans42,813 74,671 Agricultural lines of credit26,371 21,155 Undisbursed residential real estate loans6,164 7,225 Undisbursed agricultural real estate loans135 — Other1,780 1,973 Total commitments and standby letters of credit$389,533 $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 $0.5 million as of March 31, 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 86.62% of the Company’s loan portfolio at March 31, 2025 and 86.41% of the Company’s loan portfolio at December 31, 2024. Although management believes such concentrations