Five Star Bancorp Q2 net income rises on loan growth

Overview

• US regional bank's Q2 net income and EPS rose yr/yr and sequentially

• Q2 net interest income and margin rose yr/yr, margin dipped from prior qtr

• Company cites loan and deposit growth as key drivers of quarterly results

Outlook

• Company did not provide specific guidance or outlook for the current or future periods

Result Drivers

• LOAN AND DEPOSIT GROWTH - Co said increases in loans and deposits were primary drivers of net interest income growth

• MARGIN PRESSURE - Net interest margin declined from prior qtr as rapid balance sheet expansion diluted yields, with growth described as primarily volume driven

• LOWER CREDIT LOSS PROVISION - Provision for credit losses decreased due to lower loss estimates and strong loan growth in lower-risk pools

Company press release: ID:nGNX2XKsgY

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for Five Star Bancorp is $47.00, about 4.7% below its July 21 closing price of $49.33

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 11 three months ago

Reuters Recommended Reads

• July 21 - Western Alliance Bancorp Q2 net income rises on loan growth

• July 21 - Northpointe Bancshares Q2 profit rises on loan growth

• July 21 - KeyCorp quarterly profit rises on interest income strength

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)