Five Star Bancorp Q3 profit rises on strong loan growth, wider interest margin

Overview

• US regional bank's Q3 net income and EPS rose yr/yr and sequentially

• Net interest income and margin improved on loan growth and higher earning-asset yields

• Company completed $130 mln public offering and raised quarterly dividend by $0.05 per share vs 2025

Outlook

• Company did not provide specific financial guidance for the current quarter or full year in its press release

Result Drivers

• LOAN GROWTH - Co said higher-yielding loan growth drove increases in net interest income and margin

• LOWER DEPOSIT FUNDING COSTS - Co said lower deposit funding costs following Fed rate cuts supported yr/yr margin expansion

• EXPENSE MANAGEMENT - Co said disciplined expense management improved efficiency ratio

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for Five Star Bancorp is $52.00, about 16.9% above its October 26 closing price of $44.50

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 13 three months ago

Reuters Recommended Reads

• Oct 26 - Lakeland Financial Q3 net income rises on commercial loan growth

• Oct 26 - Northwest Bancshares Q3 adjusted EPS beats estimates on C&I loan growth

• Oct 26 - Park National Q3 net income rises on loan growth

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)