Yahoo Finance Five Star Bancorp (FSBC) Q1 2024 Earnings Call Transcript Highlights: Key Financial Metrics and ...
Net Income: $10.6 million for the quarter.
Dividends: $0.20 per share for Q4 2023 and Q1 2024.
Deposits Decrease: $71.1 million or 2.35% decrease from the previous quarter.
Non-Wholesale Deposits Increase: $112 million increase in the quarter.
Loan Growth: Loans held for investment up by $22.4 million or 0.73% from the prior quarter.
Provision for Credit Losses: $0.9 million for the quarter.
Capital Ratios: Common equity Tier 1 ratio increased from 9.07% to 9.13%.
Return on Average Assets: 1.22% for the quarter.
Return on Average Equity: 14.84% for the quarter.
Net Interest Margin: Decreased to 3.14% from 3.19% in the previous quarter.
Release Date: April 30, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: Can you discuss the runoff in brokered deposits and public fund time deposits during the quarter? Do you have the weighted average cost of those deposits? A: Heather Luck, CFO of Five Star Bancorp, noted that the weighted average rate was about 5.26% at the beginning of the quarter with a balance of $360 million. Most of the runoff occurred in the second half of the quarter, leaving a weighted average rate of 5.12% and a balance of $177 million by the end of the quarter.
Q: What are your deposit growth expectations for the year, and do you expect more runoff in wholesale deposits? A: James Beckwith, CEO of Five Star Bancorp, stated that they are sticking to a 10% deposit growth target for the year, accounting for the Q1 runoff of wholesale deposits. He does not expect significant additional runoff of wholesale deposits for the rest of the year, maintaining some relationships, particularly with the State of California.
Q: Could you compare and contrast the non-wholesale deposit growth this quarter with the weighted average cost of new money on the balance sheet versus what rolled off in the first quarter? A: James Beckwith explained that the new balances are primarily interest-bearing, with a weighted average rate around 3%, and the interest-bearing deposits are about 4%. He highlighted the success in increasing non-interest-bearing deposits driven by new relationships, which should help lower overall deposit costs.
Q: What is the near-term thinking on expense levels, particularly with new hires? A: Heather Luck mentioned that for Q2, adding about $500,000 to Q1's expenses should align with expectations. This increase accounts for new hires and higher expenses for upcoming conferences.
Q: Did you provide the spot rates for deposits as of March 31? A: Heather Luck confirmed that the spot rate for the cost of deposits was 249 basis points as of March 31.
Q: What was the net interest margin in the month of March? A: Heather Luck reported that the net interest margin for March was approximately 3.18%.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
