The modest beat and strong YoY growth support the stock, but the QoQ NIM compression and NPL increase warrant monitoring. Watch the Q3 earnings call for net interest margin trends and credit quality updates, especially resolution of the $11.4M CRA loan.
Price Chart
Executive Summary
Five Star Bancorp reported Q2 2026 EPS of $0.91, a 4.6% beat vs the $0.87 consensus, and revenue of $47.96M modestly above the $47.7M estimate. Net income rose 33.7% YoY to $19.4M, driven by 20.3% loan growth and 26.2% net interest income expansion, though net interest margin contracted 7 bps QoQ to 3.63% and nonperforming loans increased to 0.30% due to one CRA loan. The beat is modest but the growth trajectory is solid, supporting a mildly bullish read.
Key Financial Metrics
Key Facts
- Diluted EPS of $0.91 vs consensus $0.87 (+4.6%) and $0.68 in Q2 2025 (+33.8% YoY)
- Net income of $19.4M, up 33.7% YoY and 4.2% QoQ
- Net interest income of $46.1M, up 26.2% YoY and 6.0% QoQ
- Loans held for investment grew 20.3% YoY to $4.52B; deposits grew 23.2% YoY to $4.80B
- Net interest margin of 3.63%, down 7 bps QoQ but up 10 bps YoY
- Nonperforming loans rose to 0.30% of loans from 0.07% QoQ due to a single $11.4M CRA loan
- Efficiency ratio improved to 40.91% from 41.03% YoY but increased from 38.57% QoQ
- Quarterly dividend of $0.25 per share declared and paid
Financial Impact
EPS beat by $0.04 (+4.6%) and revenue beat by ~$0.3M (+0.5%); strong YoY growth in net income and loan/deposit volumes
Risk Factors
- Net interest margin contracted 7 bps QoQ despite rising rates, signaling potential funding cost pressure
- Nonperforming loans jumped to 0.30% from 0.07% QoQ, driven by one $11.4M CRA loan
- Efficiency ratio rose to 40.91% from 38.57% QoQ due to operating expense growth
- Rapid balance sheet expansion may dilute capital ratios; CET1 fell to 9.98% from 10.45% QoQ
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3331686 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 26, 2026 today | Press Release | $44.50 | awaiting T+5 | — | $45.49 (+2.22%) |
Oct 19, 2026 7d ago | 8-K | $42.69 $44.50 | ▲ +4.24% | ▲ +4.38% | $45.49 (+6.56%) |
Oct 16, 2026 10d ago | Press Release | $42.69 $44.51 | ▲ +4.26% | ▲ +4.41% | $45.49 (+6.56%) |
Oct 14, 2026 12d ago | 8-K | $42.51 $43.09 | ▲ +1.36% | ▲ +0.91% | $45.49 (+7.01%) |
Oct 13, 2026 13d ago | Press Release | $42.51 | awaiting T+5 | — | $45.49 (+7.01%) |
Sep 17, 2026 5w ago | 8-K | $44.47 $43.83 | ▼ −1.44% | ▼ −2.71% | $45.49 (+2.29%) |
Sep 10, 2026 6w ago | 8-K | $46.41 $44.47 | ▼ −4.18% | ▼ −3.96% | $45.49 (−1.98%) |
Jul 24, 2026 13w ago | Insider Cluster | $47.21 $47.31 | ▲ +0.21% | ▼ −2.30% | $45.49 (−3.64%) |
Jul 22, 2026 13w ago | Press Release | $47.35 $47.24 | ▲ +0.23% | ▲ +0.71% | $45.49 (+3.93%) |
Jul 22, 2026 13w ago | 8-K | $47.35 $47.24 | ▼ −0.23% | ▼ −0.71% | $45.49 (−3.93%) |
US Market Status
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