Five Star Bancorp (NASDAQ:FSBC) Q1 2024 Earnings Conference Call April 30, 2024 1:00 PM ET
Company Participants
James Beckwith - President, CEO & Director
Heather Luck - CFO & SVP
Conference Call Participants
Andrew Terrell - Stephens Inc.
Gary Tenner - D.A. Davidson & Company
Operator
Welcome to the Five Star Bancorp First Quarter Earnings Webcast. Please note this is a closed conference call, and you are encouraged to listen via the webcast. [Operator Instructions].
Before we get started, let me remind you that today's meeting will include some forward-looking statements within the meaning of applicable securities laws. These forward-looking statements relate to among other things, current plans, expectations, events, and industry trends that may affect the company's future operating results and financial position. Such statements involve risks and uncertainties, and future activities and results may differ materially from these expectations.
For a more complete discussion of the risks and uncertainties that may cause actual results to differ materially from the company's forward-looking statements, please see the company's annual report on Form 10-K for the year ended December 31, 2023, and in particular, the information set forth in Item 1A Risk Factors. Please refer to slide 2 of the presentation, which includes disclaimers regarding forward-looking statements, industry data, and non-GAAP financial information included in this presentation. Reconciliations of non-GAAP financial measures to their most directly comparable GAAP figures are included in the appendix to the presentation. Please note this event is being recorded.
I would now like to turn the presentation over to James Beckwith, Five Star Bancorp's President and CEO. Please go ahead.
James Beckwith
Thank you for joining us to review Five Star Bancorp's financial results for the first quarter of 2024. Joining me today is Heather Luck, Senior Vice President and Chief Financial Officer. Our comments today will refer to the financial information that was included in the earnings announcement released yesterday. To obtain a copy of the release, please visit our website at fivestarbank.com and click on the Investor Relations tab.
Our organic growth story continued in the first quarter with the announcement of our underwritten public offering of 3.45 million shares of the bank's common stock and underwriter's option to purchase up to an additional 517,500 shares, with the intention of using the net proceeds for general corporate purposes to support our continued growth and for working capital. We also added five more seasoned professionals to support our expansion in the San Francisco Bay Area market and continue to add new core deposit accounts and relationships as seen in the increase of non-wholesale deposits of $112 million in the three months ended March 31, 2024. Despite continued external headwinds, we maintained our ability to conservatively underwrite as evidenced by a 50% LTV on commercial real estate, manage expenses with our 45% efficiency ratio, and deliver value to our shareholders with our $0.20 per share dividends for the fourth quarter of 2023 and the first quarter of 2024.