Five Star (FSBC)
NASDAQ:FSBC
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Five Star
(NASDAQ:FSBC)
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Rating:76Outperform
Price Target:
$44.00
â–²(13.52% Upside)
Action:DowngradedDate:01/27/26
The score is driven primarily by solid financial performance (profitability, improved leverage, and healthy returns) and supportive technical momentum (price above key moving averages with positive MACD). Valuation is reasonable with a modest dividend, while earnings-call takeaways were positive overall but tempered by rising expenses and guidance that deposit growth should normalize.
Positive Factors
Loan & Deposit Growth
Sustained, large-scale organic loan and deposit growth strengthens the core net interest income engine and funding mix. Durable growth in core deposits reduces reliance on wholesale funding, supports continued lending capacity and enables predictable interest spread generation over the next several quarters.
Negative Factors
Margin Normalization
Net interest margin and profit margins appear to be reverting from elevated peaks, which can persist as structural headwinds if loan mix or funding costs shift. Margin compression reduces incremental earnings leverage from asset growth and increases sensitivity to funding cost changes over months.
Read all positive and negative factors
Positive Factors
Negative Factors
Loan & Deposit Growth
Sustained, large-scale organic loan and deposit growth strengthens the core net interest income engine and funding mix. Durable growth in core deposits reduces reliance on wholesale funding, supports continued lending capacity and enables predictable interest spread generation over the next several quarters.
Read all positive factors
Five Star (FSBC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$828.54M
Dividend Yield2.18%
Average Volume (3M)61.66K
Price to Earnings (P/E)12.3
Beta (1Y)0.86
Revenue Growth22.24%
EPS Growth18.63%
CountryUS
Employees205
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.83
Shares Outstanding21,376,154
10 Day Avg. Volume72,257
30 Day Avg. Volume61,664
Financial Highlights & Ratios
PEG Ratio0.44
Price to Book (P/B)1.70
Price to Sales (P/S)2.97
P/FCF Ratio10.63
Enterprise Value/Market Cap0.55
Enterprise Value/Revenue1.78
Enterprise Value/Gross Profit3.07
Enterprise Value/Ebitda5.42
Forecast
1Y Price Target
$43.00Price Target Upside10.94% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)3.42
Revenue Forecast (FY)$189.91M
Five Star Business Overview & Revenue Model
Company Description
Five Star Bancorp operates as the bank holding company for Five Star Bank that provides a range of banking products and services to small and medium-sized businesses, professionals, and individuals. The company accepts various deposits, such as mo...
How the Company Makes Money
Five Star (FSBC) generates revenue through multiple streams, primarily from its hospitality services, which include room bookings, food and beverage sales, and event management services. The company charges competitive rates for its accommodations...
Five Star Earnings Call Summary
Earnings Call Date:Jan 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 27, 2026
Earnings Call Sentiment Positive
The call communicates strong, broad-based 2025 financial and balance sheet performance—notably double-digit growth in loans and deposits, meaningful NII and NIM expansion, improved deposit funding costs, low NPLs, and a dividend increase—supported by strategic hiring and branch expansion. Key challenges include elevated operating expenses from hiring, a modest Q4 decline in noninterest income, compressed capital ratios after rapid growth, competitive pressure on loan spreads, and loan reset/refinance risk in 2026. Management believes these issues are manageable within a planned ~10% growth path, though faster growth would necessitate external capital.Positive Updates
Strong Annual Growth Across Key Metrics
Year-over-year growth in loans held for investment of 15% (+$542.2M), total deposits up 18% (+$643.1M), net income increased 35% to $61.6M, and earnings per share rose 28% to $2.90.
Negative Updates
Quarterly Noninterest Income Decline
Noninterest income fell to $1.4M in Q4 from $2.0M in the prior quarter due primarily to weaker earnings from equity investments and venture-backed funds; full-year noninterest income rose only $0.1M.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Annual Growth Across Key Metrics
Year-over-year growth in loans held for investment of 15% (+$542.2M), total deposits up 18% (+$643.1M), net income increased 35% to $61.6M, and earnings per share rose 28% to $2.90.
Read all positive updates
Company Guidance
Management guided to target roughly 10% growth in 2026 on both sides of the balance sheet (loans and deposits), saying that at that pace they can self‑fund growth and maintain capital (CET1 about 10.5%–10.6% today), while a faster 15%–20% growth run rate would likely require a capital raise in 2027–28; expense guidance included roughly $300,000 of incremental Q1 expense and a full‑year 2026 noninterest‑expense target of about 1.48%–1.55% of average assets, and management said the current headcount should be sufficient to support the 10% plan. They reiterated a healthy loan pipeline but cautioned about payoffs and many five‑year loan resets in 2026 that could affect retention, noted the year‑end $175 million of broker/wholesale deposits they’re working to reduce, and announced a $0.05 increase in the quarterly cash dividend to $0.25 per share (record Feb. 2, payable Feb. 9).Five Star Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
66
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 255.47M | 212.20M | 180.70M | 123.79M | 87.82M |
| Gross Profit | 148.74M | 118.01M | 113.20M | 102.24M | 82.15M |
| EBITDA | 86.78M | 66.60M | 68.23M | 64.49M | 47.76M |
| Net Income | 61.61M | 45.67M | 47.73M | 44.80M | 42.44M |
Balance Sheet | |||||
| Total Assets | 4.75B | 4.05B | 3.59B | 3.23B | 2.56B |
| Cash, Cash Equivalents and Short-Term Investments | 567.57M | 454.66M | 435.52M | 385.83M | 588.60M |
| Total Debt | 97.78M | 80.75M | 249.35M | 177.85M | 28.39M |
| Total Liabilities | 4.31B | 3.66B | 3.31B | 2.97B | 2.32B |
| Stockholders Equity | 445.83M | 396.62M | 285.77M | 252.82M | 235.05M |
Cash Flow | |||||
| Free Cash Flow | 71.42M | 51.16M | 38.26M | 45.49M | 27.94M |
| Operating Cash Flow | 72.61M | 51.79M | 38.91M | 45.98M | 28.66M |
| Investing Cash Flow | -544.11M | -446.74M | -279.28M | -836.92M | -455.01M |
| Financing Cash Flow | 626.00M | 425.73M | 301.95M | 625.61M | 561.19M |
Five Star Technical Analysis
Positive
38.76
Price Trends
38.76
Negative
37.29
Positive
34.34
Positive
Market Momentum
>-0.01
Negative
59.43
Neutral
88.12
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FSBC, the sentiment is Positive. The current price of 38.76 is above the 20-day moving average (MA) of 37.30, below the 50-day MA of 38.76, and above the 200-day MA of 34.34, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 59.43 is Neutral, neither overbought nor oversold. The STOCH value of 88.12 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FSBC.
Five Star Risk Analysis
Five Star disclosed 49 risk factors in its most recent earnings report. Five Star reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
We could be subject to changes in tax laws, regulations and interpretations or challenges to our income tax provision. Q4, 2025
2.
The adoption of artificial intelligence tools by us and our third-party vendors and service providers may increase the risk of errors, omissions, unfair treatment, or fraudulent behavior by our employees, clients, or counterparties, or other third parties. Q4, 2025
3.
Inflation can have an adverse impact on our business and on our customers. Q4, 2025
Five Star Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $828.54M | 12.33 | 14.49% | 2.18% | 22.24% | 18.63% | |
71 Outperform | $905.10M | 8.79 | 10.19% | 2.12% | 17.99% | 11.08% | |
69 Neutral | $765.36M | 8.35 | 13.02% | 3.19% | 16.57% | 69.64% | |
68 Neutral | $801.75M | 12.13 | 8.86% | 3.48% | 5.75% | 20.52% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
62 Neutral | $715.02M | 9.89 | 11.33% | 2.48% | 0.67% | 17.88% | |
61 Neutral | $829.81M | 9.23 | 7.31% | 2.58% | 12.09% | -15.97% |
* Financial Sector Average
FSBC
Five Star
38.76
14.04
56.80%
THFF
First Financial Indiana
64.36
22.53
53.85%
GSBC
Great Southern Bancorp
65.22
15.75
31.84%
MPB
Mid Penn Bancorp
32.99
9.35
39.53%
TRST
TrustCo Bank
45.27
18.38
68.37%
BFST
Business First Bancshares
27.67
6.65
31.64%
Five Star Corporate Events
Business Operations and StrategyDividendsFinancial Disclosures
Five Star Bancorp Posts Strong Q4 and 2025 Results
Positive
Jan 27, 2026
On January 26, 2026, Five Star Bancorp reported strong fourth-quarter and full-year 2025 results, with net income rising to $17.6 million for the quarter ended December 31, 2025, up from $16.3 million in the prior quarter and $13.3 million a year ...
DividendsFinancial Disclosures
Five Star Bancorp Raises Quarterly Cash Dividend Payout
Positive
Jan 16, 2026
On January 16, 2026, Five Star Bancorp announced that its board had declared a fourth-quarter cash dividend of $0.25 per share on its voting common stock, payable on February 9, 2026 to shareholders of record as of February 2, 2026. The $0.05 incr...
Financial Disclosures
Five Star Bancorp Schedules Fourth-Quarter 2025 Results Webcast
Neutral
Jan 13, 2026
On January 13, 2026, Five Star Bancorp announced it plans to report financial results for the fourth quarter and full year ended December 31, 2025, after the market closes on January 26, 2026, and will hold a live webcast for analysts and investor...
Executive/Board Changes
Five Star Bank Enters Change in Control Agreements
Neutral
Nov 5, 2025
On November 4, 2025, Five Star Bank entered into change in control agreements with two of its executive officers, Heather Luck and Michael Rizzo. These agreements outline the compensation and benefits the executives will receive if their employmen...
Business Operations and StrategyFinancial Disclosures
Five Star Bancorp Reports Strong Q3 2025 Earnings
Positive
Oct 28, 2025
Five Star Bancorp reported a net income of $16.3 million for the third quarter of 2025, marking an increase from previous quarters. The company achieved significant growth in loans and deposits, with a notable increase in non-wholesale deposits. T...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.