Company: FSBC
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001628280-25-038796
Chunk: 69

Company: FIVE STAR BANCORP
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 1
Chunk 69
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 1,422 Commercial construction— 112,399 112,399 Residential construction— 5,479 5,479 Residential4,438 28,694 33,132 Farmland4,766 46,813 51,579 Commercial:Secured45,638 128,526 174,164 Unsecured26,610 10,958 37,568 Consumer and other278,034 181 278,215 Total $1,012,848 $2,747,737 $3,760,585 December 31, 2024Real estate:Commercial$587,825 $2,269,348 $2,857,173 Commercial land and development1,416 2,433 3,849 Commercial construction— 111,318 111,318 Residential construction— 4,561 4,561 Residential4,495 28,279 32,774 Farmland4,873 42,368 47,241 Commercial:Secured48,587 125,208 173,795 Unsecured19,988 7,570 27,558 Consumer and other279,458 126 279,584 Total$946,642 $2,591,211 $3,537,853 

Asset Quality

We manage the quality of our loans based upon trends at the overall loan portfolio level, as well as within each product type. We measure and monitor key factors that include the level and trend of classified, delinquent, non-accrual, and nonperforming assets, collateral coverage, credit scores, and debt service coverage, where applicable. These metrics directly impact our evaluation of the adequacy of our allowance for credit losses.

Our primary objective is to maintain a high level of asset quality in our loan portfolio. We believe our underwriting policies and practices, executed by experienced professionals, appropriately govern the risk profile for our loan portfolio. These policies are continually evaluated and updated as necessary. All loans are assessed and assigned a risk classification at origination based on underlying characteristics of the transaction, such as collateral cash flow, collateral coverage, and borrower strength. We believe that we have a comprehensive methodology to proactively monitor our credit quality after the origination process. Particular emphasis is placed on our commercial portfolio, where risk assessments are reevaluated as a result of reviewing commercial property operating statements and borrower financials.