Company: FSBC
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001275168-25-000106
Chunk: 148

Company: FIVE STAR BANCORP
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 8
Chunk 148
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 cash is received and where the future collection of principal is probable. Interest accruals are resumed on such loans only when they are brought fully current with respect to interest and principal and when, in the judgment of management, the loans are estimated to be fully collectible as to both principal and interest.

SBA Loans

During the three months ended March 31, 2025, the Company sold five SBA 7(a) loans with government-guaranteed portions totaling approximately $1.7 million. The Company received gross proceeds of $1.8 million on the loans sold during the three months ended March 31, 2025, resulting in the recognition of net gains on sale of $0.1 million during the period.

Non-accrual Loans

Table 14 provides details of our nonperforming and restructured assets and certain other related information as of the dates presented.

Table 14: Nonperforming and Restructured AssetsAs of (dollars in thousands)March 31, 2025December 31, 2024Non-accrual loans:Real estate:Commercial$1,722 $1,750 Commercial:Secured43 48 Total non-accrual loans1,765 1,798 Loans past due 90 days or more and still accruing:Total loans past due and still accruing— — Total nonperforming loans1,765 1,798 Real estate owned91 87 Total nonperforming assets$1,856 $1,885 Performing LMs (not included above)$— $— Allowance for credit losses to period end nonperforming loans2,222.32 %2,101.78 %Nonperforming loans to loans held for investment0.05 %0.05 %Nonperforming assets to total assets0.04 %0.05 %Nonperforming loans plus performing LMs to loans held for investment0.05 %0.05 %

The ratio of nonperforming loans to loans held for investment was 0.05% at March 31, 2025, which is unchanged from December 31, 2024.

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Potential Problem Loans

We utilize a risk grading system for our loans to aid us in evaluating the overall credit quality of our real estate loan portfolio and assessing the adequacy of our allowance for credit losses. All loans are grouped into a risk category at the time of