Five Star Reports Q3 2026 Earnings Growth Driven by Capital Expansion and Margin Improvement
Five Star (FSBC) reported a 13% quarter-over-quarter increase in net income, reaching $21.9 million for the third quarter of 2026. The bank is successfully leveraging $130 million in proceeds from a July stock offering to fund statewide commercial expansion across California, including new offices in Calabasas and Palo Alto. A key driver of recent performance is the expansion of the net interest margin to 3.69%, aided by a loan portfolio where 73% carry floating or adjustable rates. Additionally, the bank has strengthened its funding stability by replacing $50 million in wholesale funding with over $75 million in nonwholesale deposits, maintaining an average deposit cost of 2.19%. Looking toward 2027, management targets loan growth of 10% to 12%, supported by active demand in commercial real estate and business lending. The bank maintains a conservative risk profile with a 56% weighted average loan-to-value ratio.
Topics: commercial banking expansion earnings report interest margin net income
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