Five Star Bancorp Files 2023 Annual Report on Form 10-K

TL;DR

<b>Five Star Bancorp has submitted its 2023 10-K report, detailing its financial performance and operations for the fiscal year ending December 31, 2023.</b>

AI Summary

FIVE STAR BANCORP (FSBC) filed a Annual Report (10-K) with the SEC on February 23, 2024. Five Star Bancorp filed its 2023 Form 10-K on February 23, 2024. The filing covers the fiscal year ending December 31, 2023. The company is incorporated in California (CA) and operates in the Commercial Banks sector (SIC 6022). Key dates include the IPO on May 5, 2021, and the over-allotment option exercise on May 7, 2021. The filing references accounting standards updates from FASB, including ASU 2016-02 and ASU 2016-13.

Why It Matters

For investors and stakeholders tracking FIVE STAR BANCORP, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Five Star Bancorp's financial health, operational performance, and strategic positioning for the past fiscal year, crucial for investors and stakeholders to assess the company's trajectory. The detailed financial data and risk factors outlined in the report are essential for understanding the bank's exposure to market conditions, regulatory changes, and operational challenges, informing investment decisions.

Risk Assessment

Risk Level: medium — FIVE STAR BANCORP shows moderate risk based on this filing. The company operates in the commercial banking sector, which is subject to significant regulatory oversight and economic fluctuations, as indicated by its SIC code and the references to accounting standards updates.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to assess Five Star Bancorp's performance and outlook in the current economic and regulatory environment.

Key Numbers

• 2023-12-31 — Fiscal Year End (CONFORMED PERIOD OF REPORT)
• 2024-02-23 — Filing Date (FILED AS OF DATE)
• 2021-05-05 — IPO Date (us-gaap:IPOMember)
• 2021-05-07 — Over-Allotment Option Date (us-gaap:OverAllotmentOptionMember)

Key Players & Entities

• FIVE STAR BANCORP (company) — FILER
• FSBC (company) — tk
• 10-K (company) — ft
• 2024-02-23T00:00:00.000Z (date) — dt
• 20231231 (date) — CONFORMED PERIOD OF REPORT
• 6022 (regulator) — STANDARD INDUSTRIAL CLASSIFICATION
• CA (company) — STATE OF INCORPORATION
• 916-626-5000 (dollar_amount) — BUSINESS PHONE

FAQ

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-02-23: Filing Date — Date the 10-K was officially filed with the SEC.
• 2021-05-05: IPO Date — Date of the company's Initial Public Offering.
• 2021-05-07: Over-Allotment Option Exercise — Date related to the exercise of the over-allotment option post-IPO.

Glossary

10-K

An annual report required by the U.S. Securities and Exchange Commission (SEC), which gives a comprehensive summary of a company's financial performance. (This is the primary document for investors to understand a company's financial health and operations over the past year.)

Key Financial Figures

• $3.6 b — cember 31, 2023, we had total assets of $3.6 billion, total loans held for investment,
• $3.0 b — net of allowance for credit losses, of $3.0 billion, and total deposits of $3.0 billi
• $3.0 billion — of $3.0 billion, and total deposits of $3.0 billion. In May 2021, the Company completed it
• $2.7 billion — loans : As of December 31, 2023, we had $2.7 billion in total commercial real estate loans,
• $189.0 million — loans : As of December 31, 2023, we had $189.0 million in commercial loans, representing 6.10%
• $49.2 m — l SBA portfolio held for investment was $49.2 million, representing 1.59% of total loan
• $36.5 million — government-guaranteed portions totaling $36.5 million. We participate in the SBA 7(a) program
• $78.4 million — loans : As of December 31, 2023, we had $78.4 million in commercial land and construction loa
• $51.7 million — loans : As of December 31, 2023, we had $51.7 million in farmland loans, representing 1.67% o
• $41.3 million — loans : As of December 31, 2023, we had $41.3 million in residential real estate and construc
• $38.2 million — loans : As of December 31, 2023, we had $38.2 million in consumer and other loans, representi
• $0.8 billion — tal deposits of $3.0 billion, including $0.8 billion in non-interest-bearing deposits. We o
• $10 m — ionships, each accounting for more than $10 million, totaled $1.5 billion, or 49.80%
• $1.5 b — ting for more than $10 million, totaled $1.5 billion, or 49.80% of our total deposits.
• $693.7 million — 0% of our total deposits. This includes $693.7 million of our total deposits held by municipal

Filing Documents

• fsbc-20231231.htm (10-K) — 3269KB
• a202310kex-211.htm (EX-21.1) — 2KB
• a202310kex-231.htm (EX-23.1) — 2KB
• a202310kex-311.htm (EX-31.1) — 11KB
• a202310kex-312.htm (EX-31.2) — 11KB
• a202310kex-321.htm (EX-32.1) — 5KB
• a202310kex-322.htm (EX-32.2) — 5KB
• compensationclawbackpoli.htm (EX-97.1) — 21KB
• compensationclawbackpoli001.jpg (GRAPHIC) — 268KB
• compensationclawbackpoli002.jpg (GRAPHIC) — 261KB
• compensationclawbackpoli003.jpg (GRAPHIC) — 107KB
• compensationclawbackpoli004.jpg (GRAPHIC) — 65KB
• 0001275168-24-000061.txt (&nbsp;) — 16405KB
• fsbc-20231231.xsd (EX-101.SCH) — 75KB
• fsbc-20231231_cal.xml (EX-101.CAL) — 124KB
• fsbc-20231231_def.xml (EX-101.DEF) — 437KB
• fsbc-20231231_lab.xml (EX-101.LAB) — 943KB
• fsbc-20231231_pre.xml (EX-101.PRE) — 680KB
• fsbc-20231231_htm.xml (XML) — 2833KB

Business

Business 3 Item 1A.

Risk Factors

Risk Factors 18 Item 1B. Unresolved Staff Comments 40 Item 1C. Cybersecurity 40 Item 2.

Properties

Properties 42 Item 3.

Legal Proceedings

Legal Proceedings 42 Item 4. Mine Safety Disclosures 42 PART II 43 Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 43 Item 6. [Reserved] 43 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 43 Item 7A. Quantitative and Qualitative Disclosure About Market Risk 72 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 73 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 113 Item 9A.

Controls and Procedures

Controls and Procedures 114 Item 9B. Other Information 114 PART III 115 Item 10. Directors, Executive Officers and Corporate Governance 115 Item 11.

Executive Compensation

Executive Compensation 115 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters 115 Item 13. Certain Relationships and Related Transactions, and Director Independence 116 Item 14. Principal Accountant Fees and Services 116 PART IV 117 Item 15. Exhibits and Financial Statement Schedules 117 Item 16. Form 10-K Summary 118

SIGNATURES

SIGNATURES 119 i Glossary of Acronyms, Abbreviations, and Terms The terms identified below are used in various sections of this Form 10-K, including "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Item 2 and the unaudited Consolidated Financial Statements and Notes to the Financial Statements in Item 1 of this Form 10-K. AAA Accumulated Adjustments Account FNMA Federal National Mortgage Association ACL Allowance for Credit Losses GAAP Generally Accepted Accounting Principles in the U.S. ASC Accounting Standards Codification GSE Government Sponsored Entity ASU Accounting Standards Update ICS Insured Cash Sweep AFS Available-for-Sale IPO Initial Public Offering Bancorp Five Star Bancorp and its subsidiary IRS Internal Revenue Service Bank Five Star Bank LM Loan modification made to borrower experiencing financial difficulty Basel III A capital framework and rules for U.S. banking organizations Nasdaq The Nasdaq Stock Market LLC BOLI Bank-owned Life Insurance NI Net Income CDARS Certificate of Deposit Account Registry Service OCI Other Comprehensive Income CECL Current Expected Credit Loss model for recognition of credit losses under ASC 326 OFAC Office of Foreign Assets Control CFPB Consumer Financial Protection Bureau OREO Other Real Estate Owned CRA Community Reinvestment Act OTTI Other than Temporary Impairment CME Chicago Mercantile Exchange PPP Paycheck Protection Program CRE Commercial Real Estate RSA Restricted Stock Award C&I Commercial & Industrial ROAA Return on Average Assets, annualized DFPI Department of Financial Protection and Innovation ROAE Return on Average Equity, annualized EPS Earnings per Share ROUA Right-of-Use Asset FASB Financial Accounting Standards Board SBA U.S. Small Business Administration FDIC Federal Deposit Insurance Corporation SEC Securities and Exchange Commission Federal Reserve Board of Governors of the Federal Reserve System SOFR Secured Overnight F

Business

Item 1. Business Our Company Headquartered in the greater Sacramento metropolitan area of California, Five Star Bancorp is a bank holding company that operates through its wholly owned subsidiary, Five Star Bank, a California state-chartered non-member bank. The Bank began operations on December 20, 1999. Bancorp was incorporated on September 16, 2002 and became the sole shareholder of the Bank on June 2, 2003. Our executive offices are located at 3100 Zinfandel Drive, Suite 100, Rancho Cordova, California 95670 and our telephone number is (916) 626-5000. Our website address is https://www.fivestarbank.com. Information on our website should not be considered a part of this Annual Report on Form 10-K. The Company provides a broad range of banking products and services to small and medium-sized businesses, professionals, and individuals primarily in Northern California through seven branch offices, the Internet, and its mobile banking application. The Bank expects to open a full service branch in Downtown San Francisco in the second half of 2024. The Bank's deposits are insured in whole or in part by the FDIC. The Bank's loans and deposits are primarily within Northern California, and the Bank's primary funding source is deposits from customers. Our mission is to strive to become the top business bank in all markets we serve through exceptional service, deep connectivity, and customer empathy. We are dedicated to serving real estate, agricultural, faith-based, and small to medium-sized enterprises. We aim to consistently deliver value that meets or exceeds expectations of our shareholders, customers, employees, business partners, and community. We refer to our mission as "purpose-driven and integrity-centered banking." As of December 31, 2023, we had total assets of $3.6 billion, total loans held for investment, net of allowance for credit losses, of $3.0 billion, and total deposits of $3.0 billion. In May 2021, the Company completed its IPO, in connection with w

View Full Filing

View this 10-K filing on SEC EDGAR