Company: FSBC
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001628280-25-050090
Chunk: 129

Company: FIVE STAR BANCORP
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 129
---
 $693,745 Table 5.4 presents interest expense recognized on interest-bearing deposits for the periods ended September 30, 2025 and 2024.Table 5.4: Interest Expense Recognized on Interest-Bearing DepositsThree months endedNine months ended(in thousands)September 30, 2025September 30, 2024September 30, 2025September 30, 2024Interest-bearing transaction accounts$1,194 $1,237 $3,350 $3,467 Savings accounts895 979 2,468 2,697 Money market accounts15,348 14,688 41,052 40,231 Time accounts, $250 or more4,015 2,387 11,716 8,622 Other time accounts2,884 1,785 10,602 4,287 Total interest expense on interest-bearing deposits$24,336 $21,076 $69,188 $59,304 

Note 6: Subordinated Notes and Other Borrowings

Subordinated notes: On August 17, 2022, the Company completed a private placement of $75.0 million of fixed-to-floating rate subordinated notes to certain qualified investors, of which $19.3 million was purchased by existing or former members of the board of directors and their affiliates. The notes will be used for capital management and general corporate purposes, including, without limitation, the redemption of existing subordinated notes. The subordinated notes have a maturity date of September 1, 2032 and bear interest, payable semi-annually, at the rate of 6.00% per annum until September 1, 2027. On that date, the interest rate will be adjusted to float at a rate equal to the three-month Term SOFR plus 329.0 basis points (7.61% as of September 30, 2025) until maturity. The notes include a right of prepayment, on or after August 17, 2027 or, in certain limited circumstances, before that date. The indebtedness evidenced by the subordinated notes, including principal and interest, is unsecured and subordinate and junior in right to payment to general and secured creditors and depositors of the Company.The subordinated notes have been structured to qualify as Tier 2 capital for the Company for regulatory capital purposes. Eligible amounts will be phased out by 20% per year beginning five