Five Star Bancorp reported net income of $21.91 million for the three months ended Sep 30, 2026.

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For the quarterly period ended June September 30, 2026

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As of August 3, October 30, 2026, there were 24,536,614 24,537,080 shares of the registrant's common stock, no par value, outstanding.

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Exhibits 23 changes

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FHLMC Federal Home Loan Mortgage Corporation

Bank Five Star Bank GSE Government Sponsored Entity

ASC Accounting Standards Codification FNMA Federal National Mortgage Association

ASU ASC Accounting Standards Update Codification GAAP Generally Accepted Accounting Principles in the U.S.

ASU Accounting Standards Update GNMA Government National Mortgage Association

Bancorp Five Star Bancorp and its subsidiary GNMA GSE Government National Mortgage Association Sponsored Entity

Bank Five Star Bank IPO Initial Public Offering

Basel III A capital framework and rules for U.S. banking organizations IPO Initial Public Offering IRC Internal Revenue Code

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NII Net Interest Income

Consumer Financial Protection Bureau

EPS Earnings per Share RSA Restricted Stock Award

EVE Economic Value of Equity ROAA Return on Average Assets, annualized

FDIC Federal Deposit Insurance Corporation SBA U.S. Small Business Administration

Current Expected Credit Loss NII Net Interest Income

CME Chicago Mercantile Exchange OCI Other Comprehensive Income

CME Chicago Mercantile Exchange EPS Earnings per Share PSU Performance-based Restricted Stock Unit

EVE Economic Value of Equity RSA Restricted Stock Award

FASB Financial Accounting Standards Board ROAE ROAA Return on Average Equity, Assets, annualized

FDIC Federal Deposit Insurance Corporation ROAE Return on Average Equity, annualized

Federal Reserve Board of Governors of the Federal Reserve System SEC Securities and Exchange Commission ROUA Right-of-Use Asset

FFIEC Federal Financial Institutions Examination Council SBA U.S. Small Business Administration

FHLB Federal Home Loan Bank of San Francisco SEC Securities and Exchange Commission

FHLMC Federal Home Loan Mortgage Corporation SOFR Secured Overnight Financing Rate

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Financial statements 173 changes

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(in thousands, except share amounts) June September 30, 2026 December 31, 2025

Cash and due from financial institutions $ 45,966 46,297 $ 33,978

Interest-bearing deposits in banks 639,108 633,185 472,873

Cash and cash equivalents 685,074 679,482 506,851

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Securities available-for-sale, at fair value, net of allowance for credit losses of $ 0 at June September 30, 2026 and December 31, 2025 (amortized cost of $ 103,308 98,975 and $ 107,197 at June September 30, 2026 and December 31, 2025, respectively)

Securities held-to-maturity, at amortized cost, net of allowance for credit losses of $ 20 at June September 30, 2026 and December 31, 2025 (fair value of $ 1,927 1,698 and $ 1,995 at June September 30, 2026 and December 31, 2025, respectively)

Loans held for investment 4,519,681 4,704,215 4,074,929

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Loans held for investment, net of allowance for credit losses 4,472,346 4,654,825 4,030,520

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Operating leases, right-of-use asset, net 10,138 10,661 10,802

Premises and equipment, net 2,333 2,687 2,109

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Interest receivable and other assets 70,693 83,776 68,680

Total assets $ 5,377,062 5,559,618 $ 4,754,861

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Non-interest-bearing $ 1,174,406 1,210,488 $ 1,084,537

Interest-bearing 3,624,977 3,614,040 3,116,547

Total deposits 4,799,383 4,824,528 4,201,084

Subordinated notes, net 74,114 74,150 74,041

Operating lease liability 11,262 11,926 11,872

Interest payable and other liabilities 18,532 31,803 22,032

Total liabilities 4,903,291 4,942,407 4,309,029

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Preferred stock, no par value; 10,000,000 shares authorized; zero issued and outstanding at June September 30, 2026 and December 31, 2025

Common stock, no par value; 100,000,000 shares authorized; 21,402,864 24,536,614 shares issued and outstanding at June September 30, 2026; 21,367,387 shares issued and outstanding at December 31, 2025

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June 30, Six Months Ended

September 30, Nine Months Ended

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Loans, including fees $ 65,565 $ 56,016 $ 127,681 $ 108,947

Taxable securities 350 403 736 810

Nontaxable securities 159 174 317 348

Loans, including fees $ 71,392 $ 59,257 $ 199,073 $ 168,204

Taxable securities 335 415 1,071 1,225

Nontaxable securities 161 164 478 512

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Total interest and fee income 72,327 60,580 139,674 117,667

Deposits 25,082 22,904 47,811 44,852

Subordinated notes 1,162 1,161 2,323 2,323

Total interest expense 26,244 24,065 50,134 47,175

Total interest and fee income 79,174 64,845 218,848 182,512

Deposits 27,087 24,336 74,898 69,188

Subordinated notes 1,161 1,161 3,484 3,484

Total interest expense 28,248 25,497 78,382 72,672

Provision for credit losses 2,250 2,500 4,925 4,400 2,500 7,425 6,900

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Loan-related fees 679 468 1,944 916

FHLB stock dividends 191 325 953 656

Other 615 482 ( 129 ) 561

Total non-interest income 1,872 1,810 3,515 3,169

Service charges on deposit accounts 122 196 257 411 148 185 405 596

Gain on sale of loans — 119 — — 244

Loan-related fees 472 683 2,416 1,599

FHLB stock dividends 424 329 1,377 985

Earnings on bank-owned life insurance ("BOLI") 265 220 490 381 270 209 760 590

Other 380 560 251 1,121

Total non-interest income 1,694 1,966 5,209 5,135

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Salaries and employee benefits 11,421 8,910 22,851 18,044

Occupancy and equipment 873 657 1,702 1,294

Data processing and software 1,709 1,508 3,260 2,965

Professional services 952 918 1,878 1,831

Advertising and promotional 959 865 1,703 1,387

Loan-related expenses 304 423 551 742

Other operating expenses 2,813 1,975 3,935 3,583

Total non-interest expense 19,616 15,726 37,010 30,771

Salaries and employee benefits 12,338 9,716 35,189 27,760

Occupancy and equipment 935 700 2,637 1,994

Data processing and software 1,742 1,559 5,002 4,524

Federal Deposit Insurance Corporation ("FDIC") insurance 585 470 1,130 925 670 500 1,800 1,425

Professional services 1,330 932 3,208 2,763

Advertising and promotional 798 803 2,501 2,190

Loan-related expenses 319 317 870 1,059

Other operating expenses 2,459 2,053 6,394 5,636

Total non-interest expense 20,591 16,580 57,601 47,351

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Basic earnings per common share $ 0.91 $ 0.68 $ 1.79 $ 1.30

Diluted earnings per common share $ 0.91 $ 0.68 $ 1.78 $ 1.30

Basic earnings per common share $ 0.92 $ 0.77 $ 2.70 $ 2.07

Diluted earnings per common share $ 0.92 $ 0.77 $ 2.70 $ 2.07

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June 30, Six Months Ended

September 30, Nine Months Ended

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Unrealized gain (loss) on securities:

Other comprehensive income (loss)

Unrealized (loss) gain on securities:

Net unrealized holding gain (loss) gain on securities available-for-sale during the period ( 4,023 ) 2,843 ( 4,250 ) 4,063

Less: Income tax (benefit) expense related to items of other comprehensive income (loss) income ( 1,046 ) 763 ( 1,001 ) 1,570

Other comprehensive (loss) income

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For the Three Months Ended June September 30, 2026 and 2025

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Balance at March 31, 2025 21,329,235 $ 302,788 $ 115,309 $ ( 11,646 ) $ 406,451

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and 93 more changes in the filing

Note 1: Basis of Presentation and Summary of Significant Accounting Policies (a) Organization 9 changes

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The Company, through the Bank, provides a broad range of banking products and services to customers who are predominately predominantly small and medium-sized businesses, professionals, and individuals residing in the Northern California. region. The Company's primary loan products are commercial real estate loans, land development loans, construction loans, and operating lines of credit, and its primary deposit products are checking accounts, savings accounts, money market accounts, and term certificate accounts. The Bank currently has nine ten branch offices in Roseville, Chico, Elk Grove, Lodi, Natomas, Rancho Cordova, Redding, Elk Grove, Chico, Yuba City, Roseville, San Francisco, and Walnut Creek, with a tenth branch opening in Lodi in July 2026. and Yuba City.

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The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") as contained within the Financial Accounting Standards Board's ("FASB") ("FASB's") Accounting Standards Codification ("ASC"), including Accounting Standards Updates ("ASU"), ("ASUs"), and the rules and regulations of the Securities and Exchange Commission (the "SEC"), including the instructions to Regulation S-X. These interim unaudited consolidated financial statements reflect all adjustments (consisting solely of normal recurring adjustments and accruals) which, in the opinion of management, are necessary for a fair presentation of financial position, results of operations and comprehensive income, changes in shareholders' equity, and cash flows for the interim periods presented. These unaudited consolidated financial statements have been prepared on a basis consistent with, and should be read in conjunction with, the audited consolidated financial statements as of and for the year ended December 31, 2025, and the notes thereto, included in the Company's Annual Report on Form 10-K (the "2025 Annual Report on Form 10-K"), which was filed with the SEC on February 27, 2026.

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The results of operations for the three and six nine months ended June September 30, 2026 are not necessarily indicative of the results of operations that may be expected for any other interim period or for the year ending December 31, 2026.

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The Company has one reportable operating segment: banking. The banking segment derives its revenues through the Bank, which provides a broad range of banking products and services to customers who are predominantly small and middle-market businesses, professionals, and individuals primarily in the Northern California. region. The Company manages the business activities on a consolidated basis.

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The Company qualifies as an emerging growth company as defined in the Jumpstart Our Business Startups Act of 2012 (the "JOBS Act"), and, as such, may take advantage of specified reduced reporting requirements and deferred adoption dates for accounting standards, and is relieved of other significant requirements that are otherwise generally applicable to other public companies. The Company will remain an emerging growth company until the last day of the fiscal year following the fifth anniversary of its initial public offering ("IPO") date of May 5, 2021, or December 31, 2026, unless one of the following occurs: (i) total annual gross revenues are $1.235 billion or more; (ii) the Company issues more than $1.0 billion in non-convertible debt; or (iii) the Company becomes a large accelerated filer with a public float of more than $0.7 billion, as measured at June 30 annually.

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In March 2024, the FASB issued ASU 2024-02, Codification Improvements - Amendments to Remove References to the Concepts Statements ("ASU 2024-02"). ASU 2024-02 contains amendments to the ASC that remove references to various Concepts Statements. In most instances, the references are extraneous and not required to understand or apply the guidance. In other instances, the references were used in prior Statements to provide guidance in certain topical areas. FASB Concepts Statements are nonauthoritative. Removing all references to Concepts Statements in the guidance is intended to simplify the ASC and draw a distinction between authoritative and nonauthoritative literature. ASU 2024-02 is effective January 1, 2026 for emerging growth companies electing not to opt out of the extended transition period and has did not had have a significant impact on the Company's consolidated financial statements.

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In November 2025, the FASB issued ASU 2025-08, Financial Instruments - Credit Losses (Topic 326): Purchased Loans ("ASU 2025-08"). ASU 2025-08 expands the use of the gross-up approach for certain acquired loans by requiring qualifying purchased seasoned loans to be accounted for in a manner similar to purchased financial assets with credit deterioration. Under the gross-up approach, an allowance for expected credit losses is recognized as part of the initial amortized cost basis of the acquired loans rather than through a provision for credit losses on the acquisition date. The amendments are intended to improve comparability and reduce complexity associated with the accounting for acquired loans. ASU 2025-08 is effective for fiscal years beginning after December 15, 2026, including interim periods within those fiscal years, and early adoption is permitted. The Company is currently evaluating the impact that adoption of ASU 2025-08 may have on its consolidated financial statements.

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(h) Correction of an Immaterial Error

During preparation of the Consolidated Statements of Cash Flows for the nine months ended September 30, 2026, management identified an immaterial error in the Consolidated Statements of Cash Flows for the nine months ended September 30, 2025. The Company incorrectly reported earnings on equity investments of $ 845 thousand as a positive adjustment to net income in operating activities rather than a negative adjustment. The offset was a $ 1.69 million increase to "Net changes in interest receivable and other assets" within operating cash flows, with no overall change to previously reported operating cash flows for the nine months ended September 30, 2025. The error did not affect consolidated net income, earnings per share, total assets, shareholders' equity, or total reported cash balances. Accordingly, the Company has revised the Consolidated Statement of Cash Flows for the nine months ended September 30, 2025 presented herein.

Note 2: Fair Value of Assets and Liabilities 12 changes

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U.S. government agency securities, mortgage-backed securities, obligations of states and political subdivisions, and collateralized mortgage obligations and corporate bonds $ 90,584 82,228 $ — $ 90,584 82,228 $ — OCI

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Available-for-sale securities are recorded at fair value on a recurring basis. When available, quoted market prices (Level 1 inputs) are used to determine the fair value of available-for-sale securities. If quoted market prices are not available, management obtains pricing information from a reputable third-party service provider, who may utilize valuation techniques that use current market-based or independently sourced parameters, such as bid/ask prices, dealer-quoted prices, interest rates, benchmark yield curves, prepayment speeds, probability of default, loss severity, and credit spreads (Level 2 inputs). Level 2 securities include U.S. agencies' or government-sponsored agencies' debt securities, mortgage-backed securities, government agency-issued bonds, privately issued collateralized mortgage obligations, and corporate bonds. Level 3 securities are based on unobservable inputs that are supported by little or no market activity. In addition, values use discounted cash flow models and may include significant management judgment and estimation. As of June September 30, 2026 and December 31, 2025, there were no Level 1 available-for-sale securities and no transfers between Level 1 and Level 2 classifications for assets or liabilities measured at fair value on a recurring basis.

Certain financial assets may be measured at fair value on a non-recurring basis. These assets are subject to fair value adjustments that result from the application of the lower of cost or fair value accounting or write-downs of individual assets, such as collateral dependent loans and other real estate owned. As of June September 30, 2026 and December 31, 2025, the carrying amount of assets measured at fair value on a non-recurring basis was immaterial to the Company.

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Table 2.2 is a summary of fair value estimates for financial instruments as of June September 30, 2026 and December 31, 2025. The carrying amounts in Table 2.2 are recorded in the consolidated balance sheets under the indicated captions. Further, management has not disclosed the fair value of financial instruments specifically excluded from disclosure requirements, such as BOLI.

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June September 30, 2026 December 31, 2025

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Cash and cash equivalents $ 685,074 679,482 $ 685,074 679,482 Level 1 $ 506,851 $ 506,851 Level 1

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Securities available-for-sale 90,584 90,584 82,228 82,228 Level 2 94,699 94,699 Level 2

Securities held-to-maturity 2,135 1,927 1,930 1,698 Level 3 2,190 1,995 Level 3

Loans held for investment, net of allowance for credit losses 4,472,346 4,371,752 4,654,825 4,537,649 Level 3 4,030,520 3,971,563 Level 3

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307,991 307,407 $ 257,847 $ 256,661 Level 2 $ 554,611 $ 553,987 Level 2

Subordinated notes 74,114 73,779 74,150 73,937 Level 3 74,041 73,723 Level 3

The Company used the following methods and assumptions to estimate the fair value of its financial instruments at June September 30, 2026 and December 31, 2025:

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Note 3: Investment Securities 47 changes

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A summary of the amortized cost and fair value related to securities held-to-maturity as of June September 30, 2026 and December 31, 2025 is presented in Table 3.1. Securities held-to-maturity, at The amortized cost had a $ 20.0 thousand amounts presented are net of an allowance for credit losses of $ 20.0 thousand as of June September 30, 2026 and December 31, 2025.

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Total held-to-maturity $ 2,135 $ — $ ( 208 ) $ 1,927

Obligations of states and political subdivisions $ 2,135 1,930 $ — $ ( 208 232 ) $ 1,927 1,698

Total held-to-maturity $ 1,930 $ — $ ( 232 ) $ 1,698

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As of June September 30, 2026 and December 31, 2025, the amortized cost of held-to-maturity securities was net of an allowance for credit losses on held-to-maturity securities, at amortized cost, was of $ 20.0 thousand. The Company did not record an allowance for credit losses on available-for-sale securities, at fair value, as of June September 30, 2026 or December 31, 2025.

A summary of the amortized cost and fair value related to securities available-for-sale as of June September 30, 2026 and December 31, 2025 is presented in Table 3.2. Securities available-for-sale did not have an allowance for credit losses as of June September 30, 2026 or December 31, 2025.

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U.S. government agency securities $ 6,447 $ 154 $ ( 50 ) $ 6,551

Mortgage-backed securities 54,171 28 ( 8,968 ) 45,231

Collateralized mortgage obligations 219 — ( 16 ) 203

Corporate bonds 2,000 — ( 18 ) 1,982

Total available-for-sale $ 103,308 $ 182 $ ( 12,906 ) $ 90,584

U.S. government agency securities $ 5,616 $ 184 $ ( 45 ) $ 5,755

Mortgage-backed securities 52,812 11 ( 10,372 ) 42,451

Obligations of states and political subdivisions 40,471 40,342 — ( 3,854 6,507 ) 36,617 33,835

Collateralized mortgage obligations 205 — ( 18 ) 187

Total available-for-sale $ 98,975 $ 195 $ ( 16,942 ) $ 82,228

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The amortized cost and fair value of investment securities by contractual maturity at June September 30, 2026 and December 31, 2025 are shown in Table 3.3. Expected maturities may differ from contractual maturities if the issuers of the securities have the right to call or prepay obligations with or without call or prepayment penalties.

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(in thousands) June September 30, 2026 December 31, 2025

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Within one year $ 165 175 $ 149 154 $ — $ — $ 170 $ 155 $ — $ —

After one but within five years 840 758 2,525 2,392 860 756 2,517 2,294 865 788 1,256 1,196

After five years through ten years 1,130 1,020 16,089 14,609 895 788 18,488 15,598 1,155 1,052 13,471 12,385

After ten years — — 21,857 19,616 19,337 15,943 — — 26,007 23,383

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Total $ 2,135 $ 1,927 $ 103,308 $ 90,584 $ 2,190 $ 1,995 $ 107,197 $ 94,699

U.S. government agency securities — — 6,447 6,551 5,616 5,755 — — 7,276 7,361

Mortgage-backed securities — — 54,171 45,231 52,812 42,451 — — 56,941 48,186

Collateralized mortgage obligations — — 219 203 205 187 — — 246 231

Corporate bonds — — 2,000 1,982 — — — — 2,000 1,957

Total $ 1,930 $ 1,698 $ 98,975 $ 82,228 $ 2,190 $ 1,995 $ 107,197 $ 94,699

There were no purchases or of investment securities during the three and nine months ended September 30, 2026, as compared to the purchase of one investment security for $ 1.0 million during the three and nine months ended September 30, 2025. There were no sales of investment securities during the three and six nine months ended June September 30, 2026 or June September 30, 2025.

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(in thousands) June September 30, 2026 December 31, 2025

The State of California, securing deposits of public funds and borrowings $ 44,151 41,400 $ 47,091

The Federal Reserve Discount Window, increasing borrowing capacity 41,534 36,158 42,578

Total pledged investment securities $ 85,685 77,558 $ 89,669

Table 3.5 details the gross unrealized losses and fair values aggregated by investment category and length of time that individual available-for-sale securities have been in a continuous unrealized loss position at June September 30, 2026 and December 31, 2025.

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U.S. government agency securities $ 1,137 $ ( 5 ) $ 1,858 $ ( 45 ) $ 2,995 $ ( 50 )

Mortgage-backed securities — — 44,150 ( 8,968 ) 44,150 ( 8,968 )

Obligations of states and political subdivisions — — 36,617 ( 3,854 ) 36,617 ( 3,854 )

Collateralized mortgage obligations — — 203 ( 16 ) 203 ( 16 )

Corporate bonds — — 1,982 ( 18 ) 1,982 ( 18 )

U.S. government agency securities $ 398 $ ( 7 ) $ 2,398 $ ( 38 ) $ 2,796 $ ( 45 )

Mortgage-backed securities 746 ( 6 ) 41,400 ( 10,366 ) 42,146 ( 10,372 )

Obligations of states and political subdivisions 495 ( 5 ) 33,340 ( 6,502 ) 33,835 ( 6,507 )

Collateralized mortgage obligations — — 187 ( 18 ) 187 ( 18 )

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There were 145 144 and 147 available-for-sale securities in unrealized loss positions at June September 30, 2026 and December 31, 2025, respectively. As of June September 30, 2026, the investment portfolio included 143 140 investment securities that had been in a continuous loss position for twelve months or more and two four investment securities that had been in a loss position for less than twelve months.

There was one held-to-maturity security in a continuous unrealized loss position at both June September 30, 2026 and December 31, 2025, which at December 31, 2025 had been in a continuous loss position for more than twelve months.

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FHLB capital stock : As a member of the FHLB, the Company is required to maintain a minimum investment in FHLB capital stock determined by the board of directors of the FHLB. The minimum investment requirements can increase in the event the Company increases its total asset size or borrowings with the FHLB. Shares cannot be purchased or sold except between the FHLB and its members at the $ 100 per share par value. The Company held $ 15.0 million of FHLB stock at both June September 30, 2026 and December 31, 2025. The carrying amounts of these investments are reasonable estimates of fair value because the securities are restricted to member banks and do not have a readily determinable market value. Based on management's analysis of the FHLB's financial condition and certain qualitative factors, management determined that the FHLB stock was not impaired at June September 30, 2026 or December 31, 2025.

Equity investments : The Company is a limited partner and has committed to and is invested in a limited number of venture-backed capital funds and accounts for these investments under the equity method of accounting, as its ownership is greater than 3% of each fund. The Company held $ 15.2 15.6 million and $ 12.1 million of equity investments at June September 30, 2026 and December 31, 2025, respectively, included in "Interest receivable and other assets" in the unaudited consolidated balance sheets. The Company's share of earnings and losses from these investments is included in " Other non-interest income" in the consolidated statements of income. The Company's share of net losses earnings from these investments was $ 0.3 million immaterial for the six nine months ended June September 30, 2026. The Company's share of net earnings from these investments was $ 0.4 0.8 million for the six nine months ended June September 30, 2025. No individual investment is material to the Company's consolidated financial statements. Based on management's analysis of each fund's financial condition and certain qualitative factors, management determined that the equity investments were not impaired at June September 30, 2026 and 2025.

Note 4: Loans and Allowance for Credit Losses 20 changes

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Commercial construction 124,053 96,760

Residential construction 21,809 8,389

Farmland 59,900 59,606

Secured 258,736 251,736

Unsecured 41,263 40,422

(in thousands) June September 30, 2026 December 31, 2025

Commercial $ 3,597,173 3,678,924 $ 3,305,713

Commercial land and development 2,507 2,487 1,352

Commercial construction 122,561 96,760

Residential construction 25,569 8,389

Residential 41,874 41,530 37,566

Farmland 57,027 59,606

Secured 313,600 251,736

Unsecured 39,164 40,422

Consumer and other 374,614 425,531 275,475

Subtotal 4,521,929 4,706,393 4,077,019

Net deferred loan fees ( 2,248 2,178 ) ( 2,090 )

Loans held for investment 4,519,681 4,704,215 4,074,929

Allowance for credit losses ( 47,335 49,390 ) ( 44,409 )

Loans held for investment, net of allowance for credit losses $ 4,472,346 4,654,825 $ 4,030,520

Plan of distribution 321 changes

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Pass $ 425,279 $ 654,178 $ 401,054 $ 255,666 $ 771,984 $ 880,223 $ 16,341 $ — $ 3,404,725

Watch — — 5,686 2,962 69,551 61,728 1,391 — 141,318

Special Mention 5,505 — — 1,212 7,175 14,967 — — 28,859

Substandard — 1,037 — — — 17,598 464 — 19,099

Total 430,784 655,215 406,740 259,840 848,710 974,516 18,196 — 3,594,001

Amortized Cost Basis by Origination Year as of June September 30, 2026 (in thousands) 2026 2025 2024 2023 2022 Prior Revolving Loans Revolving Converted to Term Total

Pass $ 617,916 $ 625,754 $ 398,140 $ 254,284 $ 736,938 $ 823,656 $ 18,376 $ — $ 3,475,064

Watch — 16,204 3,558 2,955 66,056 53,582 1,391 — 143,746

Special Mention 5,503 — 97 1,205 21,917 9,311 — — 38,033

Substandard — 1,033 — — — 17,521 464 — 19,018

Total 623,419 642,991 401,795 258,444 824,911 904,070 20,231 — 3,675,861

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Pass 772 819 69 — — 355 496 — 2,511

Total 772 819 69 — — 355 496 — 2,511

Pass 772 810 60 — — 351 496 — 2,489

Total 772 810 60 — — 351 496 — 2,489

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Pass 11,715 36,020 9,148 50,899 519 — — — 108,301

Special Mention — — 15,373 — — — — — 15,373

Total 11,715 36,020 24,521 50,899 519 — — — 123,674

Pass 16,922 44,199 9,346 51,748 — — — — 122,215

Total 16,922 44,199 9,346 51,748 — — — — 122,215

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Pass 5,964 15,806 — — — — — — 21,770

Total 5,964 15,806 — — — — — — 21,770

Pass 12,349 2,956 5,731 4,692 2,644 10,633 2,900 — 41,905

Total 12,349 2,956 5,731 4,692 2,644 10,633 2,900 — 41,905

Pass 2,697 19,712 1,032 1,307 6,043 28,508 — — 59,299

Watch — — — — — 576 — — 576

Total 2,697 19,712 1,032 1,307 6,043 29,084 — — 59,875

Pass 15,210 54,275 21,522 13,380 13,310 18,884 111,163 350 248,094

Watch — — 92 520 6,763 2,728 — — 10,103

Special Mention — — 203 208 181 — 2 — 594

Substandard 186 — — 33 374 11 544 — 1,148

Total 15,396 54,275 21,817 14,141 20,628 21,623 111,709 350 259,939

Pass 3,092 12,026 7,037 2,320 850 3,600 9,862 — 38,787

Watch — — — — — — 2,500 — 2,500

Total 3,092 12,026 7,037 2,320 850 3,600 12,362 — 41,287

Pass 136,008 70,794 143,724 16,615 3,943 3,516 115 — 374,715

Substandard — — — — 4 — — — 4

Total 136,008 70,794 143,724 16,615 3,947 3,516 115 — 374,719

Total $ 618,777 $ 867,623 $ 610,671 $ 349,814 $ 883,341 $ 1,043,327 $ 145,778 $ 350 $ 4,519,681

Pass 5,959 19,550 — — — — — — 25,509

Total 5,959 19,550 — — — — — — 25,509

Pass 12,266 3,562 5,435 4,089 2,622 9,307 4,279 — 41,560

Total 12,266 3,562 5,435 4,089 2,622 9,307 4,279 — 41,560

Pass 2,697 19,711 1,004 1,301 5,974 25,744 — — 56,431

Watch — — — — — 572 — — 572

Total 2,697 19,711 1,004 1,301 5,974 26,316 — — 57,003

Pass 29,446 52,535 20,057 12,846 12,618 16,532 158,731 312 303,077

Watch — — 90 400 842 1,339 — — 2,671

Special Mention — 630 195 96 5,764 1,309 4 — 7,998

Substandard — — — 26 290 8 687 — 1,011

Total 29,446 53,165 20,342 13,368 19,514 19,188 159,422 312 314,757

Pass 4,699 11,378 6,486 1,745 786 3,126 8,472 — 36,692

Special Mention — — — — — — 2,503 — 2,503

Total 4,699 11,378 6,486 1,745 786 3,126 10,975 — 39,195

Pass 211,632 65,818 126,656 14,902 3,323 3,186 106 — 425,623

Substandard — — — — 3 — — — 3

Total 211,632 65,818 126,656 14,902 3,326 3,186 106 — 425,626

Total $ 907,812 $ 861,184 $ 571,124 $ 345,597 $ 857,133 $ 965,544 $ 195,509 $ 312 $ 4,704,215

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Pass 613,086 866,586 589,317 344,879 799,293 945,719 140,877 350 4,300,107

Watch — — 5,778 3,482 76,314 65,032 3,891 — 154,497

Special Mention 5,505 — 15,576 1,420 7,356 14,967 2 — 44,826

Substandard 186 1,037 — 33 378 17,609 1,008 — 20,251

Total $ 618,777 $ 867,623 $ 610,671 $ 349,814 $ 883,341 $ 1,043,327 $ 145,778 $ 350 $ 4,519,681

Pass $ 902,309 $ 843,317 $ 567,184 $ 340,915 $ 762,261 $ 881,902 $ 190,460 $ 312 $ 4,488,660

Watch — 16,204 3,648 3,355 66,898 55,493 1,391 — 146,989

Special Mention 5,503 630 292 1,301 27,681 10,620 2,507 — 48,534

Substandard — 1,033 — 26 293 17,529 1,151 — 20,032

Total $ 907,812 $ 861,184 $ 571,124 $ 345,597 $ 857,133 $ 965,544 $ 195,509 $ 312 $ 4,704,215

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for the six months ended June 30, 2026

for the nine months ended September 30, 2026

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Secured $ — $ 91 $ 570 $ 410 $ 317 $ 482 $ — $ — $ 1,870

Total $ — $ 91 $ 570 $ 439 $ 398 $ 519 $ — $ — $ 2,017

Secured $ — $ 91 $ 571 $ 749 $ 373 $ 843 $ — $ — $ 2,627

Consumer and other — — — 29 81 37 98 45 — — 147 172

Total $ — $ 91 $ 571 $ 778 $ 471 $ 888 $ — $ — $ 2,799

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for the six months ended June 30, 2025

for the nine months ended September 30, 2025

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Secured $ — $ 224 $ 444 $ 386 $ 214 $ 993 $ — $ — $ 2,261

Commercial $ — $ — $ — $ 112 $ 168 $ — $ — $ — $ 280

Secured — 224 510 386 343 1,301 — — 2,764

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and 241 more changes in the filing

Forward-looking statements 520 changes

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The foregoing factors could cause results or performance to materially differ from those expressed in our forward-looking statements, should not be considered exhaustive, and should be read together with other cautionary statements that are included in this report and those discussed in the section entitled "Risk Factors" of our 2025 Annual Report on Form 10-K, our Quarterly Report Reports on Form 10-Q for the three months ended March 31, 2026 and June 30, 2026, and other filings we may make with the SEC, copies of which are available from us at no charge. New risks and uncertainties may emerge from time to time, and it is not possible for us to predict their occurrence or how they will affect us. If one or more of the factors affecting our forward-looking information and statements proves incorrect, then our actual results, performance, or achievements could differ materially from those expressed in, or implied by, forward-looking information and statements contained in this Quarterly Report on Form 10-Q. Therefore, we caution you not to place undue reliance on our forward-looking information and statements. We disclaim any duty to revise or update the forward-looking statements, whether written or oral, to reflect actual results or changes in the factors affecting the forward-looking statements, except as specifically required by law.

Headquartered in the greater Sacramento metropolitan area of California, Five Star Bancorp is a bank holding company that operates through its wholly owned subsidiary, Five Star Bank, a California state-chartered non-member bank. We provide a broad range of banking products and services to small and medium-sized businesses, professionals, and individuals primarily in California through nine ten branch offices. with a tenth branch opening in Lodi in July 2026. Our mission is to strive to become the top business bank in all markets we serve through exceptional service, deep connectivity, and customer empathy. We are dedicated to serving real estate, agricultural, faith-based, and small- to medium-sized enterprises. We aim to consistently deliver value that meets or exceeds the expectations of our shareholders, customers, employees, business partners, and community. We refer to our mission as "purpose-driven and integrity-centered banking." At June September 30, 2026, we had total assets of $5.4 $5.6 billion, total loans held for investment of $4.5 $4.7 billion, and total deposits of $4.8 billion.

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Our most significant accounting policies and our critical accounting estimates are described in greater detail in Note 1, Basis of Presentation, in the notes to our audited consolidated financial statements and Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations - Critical Accounting Estimates included in our 2025 Annual Report on Form 10-K. We have identified accounting policies and estimates that, due to the difficult, subjective, or complex judgments and assumptions inherent in those policies and estimates and the potential sensitivity of our unaudited consolidated financial statements to those judgments and assumptions, are critical to an understanding of our consolidated financial condition and results of operations. We believe that the judgments, estimates, and assumptions used in the preparation of our financial statements are reasonable and appropriate, based on the information available at the time they were made. However, actual results may differ from those estimates, and these differences may be material. With the exception of the changes to the allowance for credit losses described below, There have been no significant changes concerning our critical accounting estimates as described in our 2025 Annual Report on Form 10-K.

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The allowance for credit losses represents the estimated expected credit losses in our loan and investment portfolios and is estimated as of June September 30, 2026 using Current Expected Credit Loss ("CECL"). The allowance for credit losses is established through a provision for credit losses charged to operations. Loans and investments are charged against the allowance for credit losses when management believes that the collectability of the principal is unlikely. Subsequent recoveries of previously charged-off amounts, if any, are credited to the allowance for credit losses.

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Net income for the three and six nine months ended June September 30, 2026 totaled $19.4 $21.9 million and $38.0 $59.9 million, respectively, as compared to net income of $14.5 $16.3 million and $27.6 $44.0 million for the three and six nine months ended June September 30, 2025, respectively.

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• Net Interest Margin. Net interest margin was 3.63% and 3.66%, respectively, for the three and six months ended June 30, 2026, and 3.53% and 3.49%, respectively, for the three and six months ended June 30, 2025. The increase in net interest margin for the three and six months ended June 30, 2026 compared to the three and six months ended June 30, 2025 is driven by balance sheet growth and a favorable shift in funding mix, which more than offset pressure from declining federal funds rates over the periods.

• Underwritten Public Offering. The Company completed an underwritten public offering of 3,133,750 shares of common stock during the three months ended September 30, 2026, with net proceeds of approximately $130.0 million after deducting underwriting discounts and commissions of approximately $7.3 million, and offering expenses of approximately $0.6 million. The transaction strengthened the Company's capital base and positioned it for continued organic balance sheet growth, with a common equity Tier 1 capital ratio of 12.52% as of September 30, 2026, as compared to 10.58% as of December 31, 2025.

• Deposits. Total deposits increased by $598.3 $623.4 million, or 14.24%, 14.84%, from $4.2 billion at December 31, 2025 to $4.8 billion at June September 30, 2026. Non-wholesale deposits increased by $813.3 $888.4 million in the first six nine months of 2026 to $4.5 $4.6 billion at June September 30, 2026. Wholesale deposits, which the Company defines as brokered deposits and California Time Deposit Program deposits, decreased by $215.0 $265.0 million in the first six nine months of 2026 to $250.0 $200.0 million at September 30, 2026. Non-interest-bearing deposits increased by $89.9 $126.0 million in the first six nine months of 2026 to $1.2 billion, and represented 24.47% 25.09% of total deposits at June September 30, 2026, as compared to 25.82% of total deposits at December 31, 2025. Our loan to deposit ratio was 94.17% 97.51% at June September 30, 2026, as compared to 97.00% at December 31, 2025.

• Assets. Total assets were $5.4 $5.6 billion at June September 30, 2026, representing a $622.2 $804.8 million, or 13.09%, 16.92%, increase compared to $4.8 billion at December 31, 2025.

• Loans. Total loans held for investment were $4.5 $4.7 billion at June September 30, 2026, as compared to $4.1 billion at December 31, 2025, an increase of $444.8 $629.3 million, or 10.91%. 15.44%. The increase was a result of $1.0 $1.6 billion in loan originations and advances, partially offset by $162.1 $304.5 million and $421.9 $633.2 million in loan payoffs and paydowns, respectively.

• Credit Quality. Credit quality remains strong, with non-accrual loans representing $13.4 $13.3 million, or 0.30% 0.28% of total loans held for investment at June September 30, 2026, as compared to $3.1 million, or 0.08% of total loans held for investment at December 31, 2025. This increase was due to a $10.3 $10.2 million, or 331.20% 329.43%, increase in nonperforming loans due to one Community Reinvestment Act loan that was placed on non-accrual status during the period. three months ended June 30, 2026. The balance of the loan is $11.4 million as of June September 30, 2026, and it was originally downgraded to substandard in 2025. This was partially offset by improvements across the remainder of the nonperforming loan portfolio. The ratio of the allowance for credit losses to total loans held for investment was 1.05% at June September 30, 2026 and 1.09% at December 31, 2025.

• Net Interest Margin. Net interest margin was 3.69% for the three months ended September 30, 2026, up from 3.56% for the corresponding period of 2025, reflecting balance sheet growth and lower deposit funding costs following three Federal Reserve rate cuts that began in September 2025, partially offset by lower yields on interest-earning assets. Additionally, net interest margin was 3.67% for the nine months ended September 30, 2026, up from 3.52% for the corresponding period of 2025, reflecting balance sheet growth and lower deposit funding costs following three Federal Reserve rate cuts that began in September 2025, partially offset by lower yields on interest-earning assets.

• Efficiency Ratio. Efficiency ratio was 40.91% 39.13% for the three months ended June September 30, 2026, down from 41.03% 40.13% for the corresponding period of 2025, mainly due to a $9.6 $11.6 million, or 26.20%, 29.42%, increase in net interest income during the same period, partially offset by a $3.9 $4.0 million, or 24.74%, 24.19%, increase in non-interest expense. Additionally, efficiency ratio was 39.77% 39.54% for the six nine months ended June September 30, 2026, down from 41.77% 41.18% for the corresponding period of 2025, mainly due to a $19.0 $30.6 million, or 27.02%, 27.88%, increase in net interest income, partially offset by a $10.3 million, or 21.65%, increase in non-interest expense.

• Capital Ratios . All capital ratios were above well-capitalized regulatory thresholds as of June September 30, 2026 and reflect additional common stock of approximately $130.0 million issued through the public offering that closed in July 2026. The total risk-based capital ratio for the Company was 12.50% 15.00% at June September 30, 2026, as compared to 13.33% at December 31, 2025. The Tier 1 leverage ratio was 9.21% 11.21% at June September 30, 2026, as compared to 9.70% at December 31, 2025. For additional information about the regulatory capital requirements applicable to the Company and the Bank, see the section entitled "—Financial Condition Summary—Capital Adequacy" below.

• Dividends. The board of directors declared a cash dividend of $0.25 per share on April July 16, 2026.

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(dollars in thousands) June September 30, 2026 December 31, 2025

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Total assets $ 5,377,062 5,559,618 $ 4,754,861

Total loans held for investment 4,519,681 4,704,215 4,074,929

Total deposits 4,799,383 4,824,528 4,201,084

Total subordinated notes, net 74,114 74,150 74,041

Total shareholders' equity 473,771 617,211 445,832

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Allowance for credit losses to nonperforming loans 354.57 371.49 % 1,434.40 %

Nonperforming loans to total loans held for investment 0.30 0.28 % 0.08 %

Total capital (to risk-weighted assets) 12.50 15.00 % 13.33 %

Tier 1 capital (to risk-weighted assets) 9.97 12.52 % 10.58 %

Common equity Tier 1 capital (to risk-weighted assets) 9.97 12.52 % 10.58 %

Tier 1 leverage 9.21 11.21 % 9.70 %

Total shareholders' equity to total assets 8.81 11.10 % 9.38 %

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For the three months ended For the six nine months ended

(dollars in thousands, except per share data) June September 30, 2026 June September 30, 2025 June September 30, 2026 June September 30, 2025

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Net interest income $ 46,083 $ 36,515 $ 89,540 $ 70,492

Non-interest income 1,872 1,810 3,515 3,169

Non-interest expense 19,616 15,726 37,010 30,771

Net income 19,399 14,508 38,020 27,619

Net interest income $ 50,926 $ 39,348 $ 140,466 $ 109,840

Provision for credit losses 2,250 2,500 4,925 4,400 2,500 7,425 6,900

Non-interest income 1,694 1,966 5,209 5,135

Non-interest expense 20,591 16,580 57,601 47,351

Net income 21,909 16,344 59,929 43,963

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Basic $ 0.91 $ 0.68 $ 1.79 $ 1.30

Diluted $ 0.91 $ 0.68 $ 1.78 $ 1.30

Book value per share $ 22.14 $ 19.51 $ 22.14 $ 19.51

Basic $ 0.92 $ 0.77 $ 2.70 $ 2.07

Diluted $ 0.92 $ 0.77 $ 2.70 $ 2.07

Book value per share $ 25.15 $ 20.19 $ 25.15 $ 20.19

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Net interest margin 3.63 % 3.53 % 3.66 % 3.49 %

Net interest margin 3.69 % 3.56 % 3.67 % 3.52 %

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Efficiency ratio 40.91 % 41.03 % 39.77 % 41.77 %

Efficiency ratio 39.13 % 40.13 % 39.54 % 41.18 %

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The following discussion of our results of operations compares the three and six nine months ended June September 30, 2026 to the three and six nine months ended June September 30, 2025. The results of operations for the three and six nine months ended June September 30, 2026 are not necessarily indicative of the results of operations that may be expected for the year ending December 31, 2026.

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Three months ended June September 30, 2026 compared to three months ended June September 30, 2025

Net interest income increased by $9.6 $11.6 million, or 26.20%, 29.42%, for the three months ended June September 30, 2026 compared to the three months ended June September 30, 2025, and our net interest margin increased by 10 13 basis points during the same period. The increase in net interest income is primarily due to an increase in interest income driven by loan reflected balance sheet growth and higher interest-earning deposits lower deposit funding costs following three Federal Reserve rate cuts that began in banks, September 2025, partially offset by an increase in interest expense driven by deposit growth, though moderated by a decrease in the average cost of deposits. lower yields on interest-earning assets. Additional detail relating to net interest margin in each period is provided below.

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Total assets $ 5,222,360 $ 4,253,000

Total assets $ 5,595,968 $ 4,490,309

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Total interest-bearing liabilities 3,560,450 26,244 2.96 % 2,852,951 24,065 3.38 %

Demand accounts 1,163,991 957,034

Shareholders' equity 466,779 410,609

Total interest-bearing liabilities 3,770,303 28,248 2.97 % 3,019,119 25,497 3.35 %

Demand accounts 1,212,088 1,016,560

Interest payable and other liabilities 31,140 32,406 35,691 32,210

Shareholders' equity 577,886 422,420

Total liabilities and shareholders' equity $ 5,222,360 5,595,968 $ 4,253,000 4,490,309

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June September 30, 2026 compared to

the three months ended June September 30, 2025

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Investment securities (24) (44) (68)

Total interest-earning assets 12,532 (785) 11,747

Savings accounts 130 (87) 43

Money market accounts 6,867 (819) 6,048

Time accounts (3,008) (1,159) (4,167)

Total interest-bearing liabilities 4,345 (2,166) 2,179

Changes in net interest income/margin $ 8,187 $ 1,381 $ 9,568

Interest-earning deposits in banks $ 3,029 $ (752) $ 2,277

Investment securities (35) (48) (83)

Loans held for investment and sale 9,644 (95) 9,549 12,083 52 12,135

Total interest-earning assets 15,077 (748) 14,329

Interest-bearing transaction accounts 353 (99) 254 545 43 588

Savings accounts 124 (79) 45

Money market accounts 7,336 (955) 6,381

Time accounts (3,322) (941) (4,263)

Subordinated notes and other borrowings 3 2 1 (2) —

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Market risk 16 changes

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The Company's total interest income was $72.3 $79.2 million for the three months ended June September 30, 2026 and $248.9 million for the year ended December 31, 2025. Our total interest expense was $26.2 $28.2 million for the three months ended June September 30, 2026 and $97.0 million for the year ended December 31, 2025. Overall, our net interest income was $46.1 $50.9 million for the three months ended June September 30, 2026 and $151.9 million for the year ended December 31, 2025.

Economic value of equity ("EVE") measures our long-term earnings exposure from changes in market rates of interest. EVE is defined as the present value of assets minus the present value of liabilities at a point in time for a given set of market rate assumptions. An increase in EVE due to a specified rate change indicates an improvement in the long-term earnings capacity of the balance sheet, assuming that the rate change remains in effect over the life of the current balance sheet. As of June September 30, 2026, the Company carried a slightly higher balance of assets than liabilities than assets that will reprice within the next twelve months in the event that interest rates fall.

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As of June September 30, 2026, the overnight federal funds rate (the rate used in the interest rate shock scenarios listed below) was 3.63%, decreasing 3.88%, increasing from 3.64% at December 31, 2025. The scenarios presented assume that interest rates change instantaneously ("shock") and that there are no significant changes in the structure of the Company's balance sheet over the twelve months being measured.

Table 29 summarizes the estimated effect on net interest income ("NII") and EVE from changing interest rates as measured against a flat rate (no interest rate change) instantaneous parallel shock scenario over a twelve-month period utilizing an interest sensitivity (GAP) analysis based on the Company's specific mix of interest-earning assets and interest-bearing liabilities as of June September 30, 2026 and December 31, 2025.

Table 29: Estimated Effect on Net Interest Income NII and EVE from Changing Interest Rates

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+300 (shock) (6.21) % (6.51) % (1.72) % (9.70) %

+200 (shock) (3.69) % (4.50) % (1.19) % (6.77) %

+300 (shock) (3.46) % (6.10) % (1.72) % (9.70) %

+200 (shock) (1.88) % (4.20) % (1.19) % (6.77) %

+100 (shock) (1.87) (0.87) % (2.35) (2.17) % (0.47) % (3.55) %

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-100 (shock) 1.74 % 2.33 % 0.86 % 2.45 %

-200 (shock) 5.04 % 3.94 % 2.82 % 4.07 %

-300 (shock) 9.99 % 0.72 % 9.44 % 8.79 %

-100 (shock) 0.50 % 2.14 % 0.86 % 2.45 %

-200 (shock) 2.27 % 3.82 % 2.82 % 4.07 %

-300 (shock) 5.74 % 5.09 % 9.44 % 8.79 %

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Controls and procedures 2 changes

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Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, conducted an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), as of June September 30, 2026. In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management was required to apply judgment in evaluating and implementing its controls and procedures. Based on this evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of the end of the fiscal quarter covered by this Quarterly Report on Form 10-Q.

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There was no change in our internal control over financial reporting (as such term is defined in Rule 13a-15(f) under the Exchange Act) that occurred during the three months ended June September 30, 2026 that has materially affected, or is reasonably likely to materially affect, such controls.

Other information 1 change

During the three months ended June September 30, 2026, none of our directors or executive officers adopted or terminated any contract, instruction, or written plan for the purchase or sale of our securities that was intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) or any "non-Rule 10b5-1 trading arrangement".