Five Star Bancorp posted net income of $18.6 million for the quarter ended March 31, 2026, compared to $17.6 million in Q4 2025 and $13.1 million in Q1 2025. Basic and diluted EPS rose to $0.87, up $0.04 sequentially and $0.25 year-over-year, while return on average assets increased to 1.55% and return on average equity reached 16.73%.

Total deposits grew by $268.3 million, or 6.39%, driven by a $350.2 million increase in non-wholesale deposits that offset a $81.9 million decline in wholesale funding. Loans held for investment expanded by $138.5 million, or 3.4%, reflecting annualized growth of 14% as the bank extends new industry verticals and geographic reach.

Disciplined expense management lowered the efficiency ratio to 38.57% from 40.62% in the prior quarter and 42.58% a year earlier. Net interest margin improved to 3.70%, up four basis points sequentially, as total cost of funds decreased by 10 basis points to 2.20%.

The board declared a cash dividend of $0.25 per share for Q1, marking a $0.05 increase from each quarterly dividend in 2025, with an additional $0.25 dividend declared for Q2. Common equity Tier 1 capital ratio stood at 10.45%, and nonperforming loans ratio declined to 0.07%, maintaining well-capitalized status.