Company: FSBC
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001628280-25-050090
Chunk: 133

Company: FIVE STAR BANCORP
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 133
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 that the performance criteria will be achieved to determine the amount of compensation expense to be recognized. This estimate is re-evaluated quarterly, and total compensation expense is adjusted for any change in the current period. The estimate of the number of shares expected to vest is also used to accrue for dividends to be paid at the end of the vesting period.The Company recognized $0.4 million and $0.3 million of non-cash stock compensation expense for the three months ended September 30, 2025 and September 30, 2024, respectively. The Company recognized $1.0 million and $0.9 million of non-cash stock compensation expense for the nine months ended September 30, 2025 and September 30, 2024, respectively.As of September 30, 2025, there was approximately $2.5 million of unrecognized compensation expense related to the 135,844 unvested RSAs. The holders of unvested RSAs are entitled to dividends at the same per-share ratio as holders of common stock. Tax benefits for dividends paid on unvested RSAs are recorded as tax benefits in the consolidated statements of income with a corresponding decrease to current taxes payable. Such tax benefits and related expense are expected to be recognized over the weighted average term remaining on the unvested RSAs of 2.85 years as of September 30, 2025. The impact of tax benefits for dividends paid on unvested RSAs on the Company’s unaudited consolidated statements of income for the three and nine months ended September 30, 2025 and September 30, 2024 was immaterial.

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Table 7.2 summarizes activity related to restricted shares for the periods indicated.Table 7.2: Unvested Restricted Share ActivityFor the three months ended September 30,For the nine months ended September 30,2025202420252024Shares  Weighted Average Grant Date Fair ValueSharesWeighted Average Grant Date Fair ValueSharesWeighted Average Grant Date Fair ValueSharesWeighted Average Grant Date Fair ValueBeginning of the period balance129,448 $22.08 137,457 $21.43 120,577 $21.36 69,338 $20.53 Shares granted7,062 27.55 — — 49,303 28.26 96,380 21.97 Shares vested— — — — (33,037)21