Five Star Bancorp Q2 net income rises on loan growth
FSBC•Quarterly results
US regional bank Five Star Bancorp said second-quarter net income and earnings per share rose year over year and sequentially.
Second-quarter net interest income and net interest margin rose year over year, though the margin dipped from the prior quarter. The company cited loan and deposit growth as the key drivers of quarterly results.
Drivers and outlook
The company did not provide specific guidance or an outlook for the current or future periods.
Result drivers
- Loan and deposit growth — The company said increases in loans and deposits were the primary drivers of net interest income growth.
- Margin pressure — Net interest margin declined from the prior quarter as rapid balance sheet expansion diluted yields, with growth described as primarily volume driven.
- Lower credit loss provision — Provision for credit losses decreased due to lower loss estimates and strong loan growth in lower-risk pools.
Key details and analyst coverage
| Metric | Actual |
|---|---|
| Q2 EPS | $0.91 |
| Q2 Net Income | $19.4 mln |
| Q2 Net Interest Income | $46.08 mln |
| Q2 Net Interest Margin | 3.63% |
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".
