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Five Star Bancorp Announces Second Quarter 2021 Results July 26 , 2021 RANCHO CORDOVA , Calif . , July 26 , 2021 ( GLOBE NEWSWIRE ) -- Five Star Bancorp ( Nasdaq : FSBC ) ( " Five Star " or the " Company " ) , the holding company for Five Star Bank ( the " Bank ” ) , today reported net income of $ 9.8 million for the quarter ended June 30 , 2021 , compared to $ 10.3 million during the quarter ended March 31 , 2021 and $ 10.1 million during the quarter ended June 30 , 2020. Diluted earnings per share were $ 0.67 for the second quarter of 2021 , compared to $ 0.93 for the first quarter of 2021 and $ 1.05 for the second quarter of 2020 . Financial Highlights During the quarter , the Company terminated its status as a " Subchapter S " corporation in connection with its initial public offering ( " IPO " ) . As such , results presented for the periods ended March 31 , 2021 and June 30 , 2020 have been calculated using a 3.5 % S Corporation tax rate , while results presented for the three months ended June 30 , 2021 have been calculated using a weighted average tax rate of 20.77 % as noted in the section titled " Provision for Income Taxes " herein . Performance highlights and other developments for the Company as of and for the three months ended June 30 , 2021 included the following : • Loan and deposit growth as of June 30 , 2021 , as compared to March 31 , 2021 , were as follows : As of ( dollars in thousands ) Total loans , excluding Paycheck Protection Program ( " PPP " ) loans PPP loans PPP deferred fees Jun 30 , 2021 $ 1,466,866 $ 120,936 3,534 Mar 31 , 2021 1,363,678 $ 182,876 4,761 $ Change 103,188 Noninterest - bearing deposits Interest - bearing deposits 829,036 1,237,249 798,825 1,184,285 % Change 7.57 % ( 61,940 ) ( 33.87 ) % ( 1,227 ) ( 25.77 ) % 30,211 3.78 % 52,964 4.47 % • As of June 30 , 2021 , the Company reported total loans , total assets , and total deposits of $ 1.6 billion , $ 2.3 billion , and $ 2.1 billion , respectively , as compared to $ 1.5 billion , $ 2.0 billion , and $ 1.8 billion , respectively , at December 31 , 2020 . • During the three months ended June 30 , 2021 , the Company did not record a provision for loan losses , as compared to a provision of $ 0.2 million recorded during the three months ended March 31 , 2021 and $ 1.6 million recorded during the three months ended June 30 , 2020 . • As of June 30 , 2021 , nonperforming loans to period end loans of 0.03 % remained stable as compared to December 31 , 2020 . • For the quarter ended June 30 , 2021 , net interest margin was 3.48 % as compared to 3.83 % in the quarter ended March 31 , 2021 and 3.42 % in the quarter ended June 30 , 2020 . • Net income , when applying a 29.56 % C Corporation tax rate , would have been $ 7.4 million for the three months ended June 30 , 2021 . • The Company's Board of Directors declared , and the Company paid , a cash dividend of $ 0.80 per share , and paid an aggregate distribution of $ 27.0 million for the accumulated adjustments account payout as a result of the Company's conversion to a C Corporation , during the three months ended June 30 , 2021 . • For the three months ended June 30 , 2021 , the Company's return on average assets ( " ROAA " ) was 1.75 % and the return on average equity ( " ROAE " ) was 24.25 % . • The Company completed its IPO , and issued 6,054,750 shares of common stock , no par value , inclusive of the full exercise of the underwriters ' option to purchase an additional 789,750 shares . The securities were sold at a price to the public of $ 20.00 per share and began trading on the Nasdaq Stock Market LLC on May 5 , 2021. On May 7 , 2021 , the closing date of the IPO , the Company received total net proceeds of $ 109.1 million . . During the three months ended June 30 , 2021 , the Company recorded $ 0.7 million in expenses incurred to support corporate organizational matters leading up to the IPO and $ 0.8 million in stock compensation expense for non - recurring stock grants related to the IPO to certain members of the Company's Board of Directors .