In a recent transaction, Michael Lee, the Senior Vice President and Chief Regulatory Officer of Five Star Bancorp (NASDAQ:FSBC), sold 1,500 shares of the company's common stock. The shares were sold at an average price of $30.6722 each, amounting to a total transaction value of $46,008.
Following this sale, Lee holds 36,765 shares indirectly through a trust where he serves as a trustee. The transaction was reported on November 1, 2024, and is part of routine disclosures by company insiders. The shares are held by The Michael E. Lee & Kaylin M. Fadel-Lee Family Revocable Trust, which includes unvested shares scheduled to vest over a set period, contingent on Lee's continued employment with the company.
In other recent news, Five Star Bancorp has reported noteworthy developments in its recent earnings call. The bank showcased a robust financial performance for the third quarter of 2024, marking a significant increase in non-wholesale deposits and loan originations. Additionally, Five Star Bancorp has launched a new full-service office in San Francisco, signaling its strategic expansion and commitment to growth.
The bank's net income for the quarter stood at $10.9 million, with a return on average assets of 1.18% and equity of 11.31%. Despite a minor decrease in net interest margin, a cash dividend of $0.20 per share was declared, payable in November 2024. The bank anticipates a gradual decline in deposit yields influenced by recent Federal Reserve cuts.
In terms of future expectations, Five Star Bancorp maintains a loan cap of $300 million and expects mid-single-digit loan growth in Q4 2024. Analysts from various firms have noted the bank's disciplined business practices and optimistic outlook on deposit growth and loan origination pipelines. These recent developments underscore the bank's focus on organic growth and strategic initiatives.
InvestingPro Insights
While Michael Lee's recent sale of Five Star Bancorp (NASDAQ:FSBC) shares might raise eyebrows, a closer look at the company's financials and market performance reveals a more nuanced picture. According to InvestingPro data, FSBC has demonstrated strong momentum, with a remarkable 63.88% price total return over the past year and a 40.34% return in the last six months alone. This robust performance aligns with an InvestingPro Tip highlighting the company's "high return over the last year."
Despite the insider sale, FSBC's financial health appears solid. The company boasts a P/E ratio of 13.37, suggesting a relatively attractive valuation compared to industry peers. Moreover, an InvestingPro Tip notes that FSBC "has raised its dividend for 4 consecutive years," indicating a commitment to shareholder returns. This is further supported by a current dividend yield of 2.66%.
Investors should also consider that analysts remain optimistic about FSBC's prospects. Another InvestingPro Tip reveals that "3 analysts have revised their earnings upwards for the upcoming period," signaling positive expectations for the company's financial performance. For those seeking a more comprehensive analysis, InvestingPro offers 7 additional tips that could provide valuable insights into FSBC's investment potential.
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