0001628280-26-012724 | 10-K | XBRL Viewer

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Loans and Allowance for Credit Losses - Schedule of Loans Modified due to Financial Distress (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024
Financing Receivable, Past Due [Line Items]
Total % of Loans Outstanding	0.04%	0.05%
Payment Deferral
Financing Receivable, Past Due [Line Items]
Payment Change/Deferment	$ 1,583	$ 1,749
Commercial
Financing Receivable, Past Due [Line Items]
Total % of Loans Outstanding	0.04%	0.05%
Commercial \| Payment Deferral
Financing Receivable, Past Due [Line Items]
Payment Change/Deferment	$ 1,583	$ 1,749

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

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+ Details

Subsequent Events	12 Months Ended
Subsequent Events	Dec. 31, 2025
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events On January 15, 2026, the board of directors declared a $0.25 per common share dividend for shareholders of record as of February 2, 2026, which was paid on February 9, 2026 in the amount of $5,344,000.

Recently Issued Accounting Standards

12 Months Ended

Dec. 31, 2025

Accounting Changes and Error Corrections [Abstract]

Recently Issued Accounting Standards

The following information reflects recent accounting standards that have been adopted or are pending adoption by the Company. As discussed in Note 1, Basis of Presentation, the Company qualifies as an emerging growth company and as such, has elected not to opt out of the extended transition period for complying with new or revised accounting standards and is not subject to the new or revised accounting standards applicable to public companies during the extended transition period. However, we may early adopt certain accounting standards, as the JOBS Act does not preclude an emerging growth company from adopting a new or revised accounting standard earlier than the time that such standard applies to private companies to the extent early adoption is permitted. Our early adoption of ASU No. 2023-09, Income Taxes (Topic 740) - Improvements to Income Tax Disclosures (“ASU 2023-09”) was voluntary and does not represent an irrevocable election to opt out of the extended transition period for all standards. Apart from ASU 2023-09, the accounting standards discussed below indicate effective dates for the Company as an emerging growth company using the extended transition period.

Accounting Standards Adopted

On January 1, 2023, the Company adopted ASC 326, which replaced the former “incurred loss” model for recognizing credit losses with an “expected loss” model referred to as the CECL model. The CECL model applies to estimated credit losses on loans receivable, held-to-maturity debt securities, unfunded loan commitments, and certain other financial assets measured at amortized cost. Under ASC 326, available-for-sale debt securities are evaluated for impairment if fair value is less than amortized cost, with any estimated credit losses recorded through a credit loss expense and an allowance, rather than a write-down of the investment. Changes in fair value that are not credit-related will continue to be recorded in other comprehensive income. The Company adopted this standard using a modified retrospective approach through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance was effective for financial assets measured at amortized cost. For certain new disclosures required under ASC 326, such as credit quality indicators by year of origination, the Company has not restated comparative financial information before January 1, 2023 to conform under ASC 326. This adoption method is considered a change in accounting principle requiring additional disclosure of the nature and reason for the change, which is solely due to adoption of ASC 326. On January 1, 2023, the Company also adopted ASU No. 2022-02, Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures, which had no material impact.

Table 2.1 reflects the cumulative-effect adjustments the Company recorded on January 1, 2023 for the adoption of ASC 326.


Table 2.1: Impact of Adoption of ASC 326
	January 1, 2023
(in thousands)	Pre-ASC 326 Adoption		Impact of ASC 326 Adoption		Post-ASC 326 Adoption
Assets:
Allowance for Credit Losses - Loans	$	(28,389)	$	(5,262)	$	(33,651)
Allowance for Credit Losses - HTM Securities	—		(20)		(20)
Deferred Tax Asset (Interest receivable and other assets)	12,273		1,883		14,156

Liabilities:
Reserve for Unfunded Commitments (Interest payable and other liabilities)	(125)		(1,092)		(1,217)

Shareholders’ Equity:
Retained Earnings	(46,736)		4,491		(42,245)

In March 2023, the FASB issued ASU 2023-02, Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method (“ASU 2023-02”). Under current GAAP, an entity can only elect to apply the proportional amortization method to investments in low income housing tax credit (“LIHTC”) structures. The amendments in ASU 2023-02 allow entities to elect to account for equity investments made primarily for the purpose of receiving income tax credits using the proportional amortization method, regardless of the tax credit program through which the investment earns income tax credits, if certain conditions are met. ASU 2023-02 provides amendments to paragraph ASC 323-740-25-1, which sets forth the conditions needed to apply the proportional amortization method. The amendments make certain limited changes to those conditions to clarify their application to a broader group of tax credit investment programs. However, the conditions in substance remain consistent with current GAAP. The amendments in ASU 2023-02 also eliminate certain LIHTC-specific guidance to align the accounting more closely with the accounting for other equity investments in tax credit structures and require that the delayed equity contribution guidance in paragraph ASC 323-740-25-3 apply only to tax equity investments accounted for using the proportional amortization method. The Company adopted ASU 2023-02 on January 1, 2024, which did not have a significant impact on the Company’s consolidated financial statements.

In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures (“ASU 2023-07”), amending disclosure requirements related to segment reporting primarily through enhanced disclosure about significant segment expenses and by requiring disclosure of segment information on an annual and interim basis. ASU 2023-07 is effective January 1, 2024 and for interim periods beginning after December 15, 2024. The key amendments: (i) require that a public entity disclose, on an annual and interim basis, significant segment expenses that are regularly provided to the chief operating decision maker (the “CODM”) and included within each reported measure of segment profit or loss; (ii) require that a public entity disclose, on an annual and interim basis, an amount for other segment items by reportable segment and a description of its composition; (iii) require that a public entity provide all annual disclosures about a reportable segment’s profit or loss currently required by GAAP in interim periods as well; (iv) clarify that if the CODM uses more than one measure of a segment’s profit or loss in assessing segment performance and deciding how to allocate resources, an entity may report one or more of those additional measures of segment profit; (v) require that a public entity disclose the title and position of the CODM and an explanation of how the CODM uses the reported measure of segment profit or loss in assessing segment performance and deciding how to allocate resources; and (vi) require that a public entity that has a single reportable segment provide all the disclosures required by the amendments in the ASU and all existing segment disclosures. The Company has one reportable segment. The Company adopted ASU 2023-07 on January 1, 2024, which did not have a significant impact on the Company’s consolidated financial statements.

In December 2023, the FASB issued ASU 2023-09, which enhances the transparency and decision usefulness of income tax disclosures. ASU 2023-09 will require disaggregated information about a reporting entity’s effective tax rate

reconciliation as well as information on income taxes paid. Entities will also be required to disclose income/(loss) from continuing operations before income tax expense/(benefit) disaggregated between domestic and foreign operations, as well as income tax expense/(benefit) from continuing operations disaggregated by federal, state, and foreign operations. ASU 2023-09 is effective for fiscal years beginning after December 15, 2025, including interim periods within those fiscal years, for emerging growth companies that have elected not to opt out of the extended transition period. The Company elected to early adopt ASU 2023-09 for the fiscal year ended December 31, 2025, which did not have a significant impact on the Company’s consolidated financial statements. The Company’s early adoption of ASU 2023-09 was voluntary and does not represent an irrevocable election to opt out of the extended transition period for all standards. The Company has updated its income tax disclosures in accordance with ASU 2023-09, which primarily enhances transparency regarding income tax expense and related items.

Accounting Standards Issued But Not Yet Adopted

In October 2023, the FASB issued ASU No. 2023-06, Disclosure Improvements - Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative (“ASU 2023-06”), amending disclosure or presentation requirements related to various subtopics in the FASB’s ASC. ASU 2023-06 was issued in response to the SEC’s initiative to update and simplify disclosure requirements. The SEC identified 27 disclosure requirements that were incremental to those in the ASC and referred them to the FASB for potential incorporation into GAAP. To avoid duplication, the SEC intended to eliminate those disclosure requirements from existing SEC regulations as the FASB incorporated them into the relevant ASC subtopics. ASU 2023-06 adds 14 of the 27 identified disclosure or presentation requirements to the ASC. ASU 2023-06 is to be applied prospectively, and early adoption is prohibited. For reporting entities subject to the SEC’s existing disclosure requirements, the effective dates of ASU 2023-06 will be the date on which the SEC’s removal of that related disclosure requirement from Regulation S-X or Regulation S-K becomes effective. If by June 30, 2027, the SEC has not removed the applicable requirement from Regulation S-X or Regulation S-K, the pending content of the related amendment will be removed from the ASC and will not become effective for any entities. ASU 2023-06 is not expected to have a significant impact on the Company’s consolidated financial statements.

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 is not expected to have a significant impact on the Company’s consolidated financial statements.

On November 4, 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (“Subtopic 220-40”): Disaggregation of Income Statement Expenses (“ASU 2024-03”) and in January 2025 the FASB issued ASU 2025-01, Clarifying the Effective Date. This standard responds to investor input by requiring public companies to disclose, in interim and annual reporting periods, additional information about certain expenses in the notes to the financial statements. This standard is effective for all entities that are subject to Subtopic 220-40, for annual periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027, but early adoption is permitted. ASU 2024-03 is not expected to have a significant impact on the Company’s consolidated financial statements.

- Definition

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+ Details

Loans and Allowance for Credit Losses - Narrative (Details) - USD ($)	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023
Financing Receivable, Past Due [Line Items]
Loans greater than 90 days past due	$ 0	$ 0
Residential real estate loans in the process of foreclosure	0	0
Interest income related to non-accrual loans	0	0	$ 0
Foregone interest income related to non-accrual loans	194,000	167,000	$ 95,000
Pledged loans	2,209,121,000	1,850,910,000
Federal Reserve Bank Of San Francisco
Financing Receivable, Past Due [Line Items]
FRB pledged loans	$ 1,324,605,000	$ 1,201,864,000
Loans \| Loan Concentration Risk \| Real Estate Portfolio Segment
Financing Receivable, Past Due [Line Items]
Concentration risk (in percent)	86.00%
Loans \| Loan Concentration Risk \| Commercial:
Financing Receivable, Past Due [Line Items]
Concentration risk (in percent)	7.00%
Loans \| Loan Concentration Risk \| Consumer and other
Financing Receivable, Past Due [Line Items]
Concentration risk (in percent)	7.00%

Cover - USD ($) $ in Millions	12 Months Ended
Cover - USD ($) $ in Millions	Dec. 31, 2025	Feb. 24, 2026	Jun. 30, 2025
Cover [Abstract]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2025
Current Fiscal Year End Date	--12-31
Document Transition Report	false
Entity File Number	001-40379
Entity Registrant Name	FIVE STAR BANCORP
Entity Incorporation, State or Country Code	CA
Entity Tax Identification Number	75-3100966
Entity Address, Address Line One	3100 Zinfandel Drive
Entity Address, Address Line Two	Suite 100
Entity Address, City or Town	Rancho Cordova
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	95670
City Area Code	(916)
Local Phone Number	626-5000
Title of 12(b) Security	Common Stock, no par value per share
Trading Symbol	FSBC
Security Exchange Name	NASDAQ
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
ICFR Auditor Attestation Flag	false
Document Financial Statement Error Correction	false
Entity Shell Company	false
Entity Public Float			$ 477.2
Entity Common Stock, Shares Outstanding		21,376,153
Documents Incorporated by Reference	Portions of the Registrant’s Definitive Proxy Statement to be filed with the Securities and Exchange Commission pursuant to Regulation 14A for its 2026 Annual Meeting of Shareholders are incorporated by reference into Part III of this Annual Report on Form 10-K.
Entity Central Index Key	0001275168
Document Fiscal Year Focus	2025
Document Fiscal Period Focus	FY
Amendment Flag	false

Equity Incentive Plan - Narrative (Details) - USD ($)	12 Months Ended
Equity Incentive Plan - Narrative (Details) - USD ($)	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options outstanding (in shares)	0	0
Maximum number of shares available for grant (in shares)	1,361,860
Stock compensation expense	$ 1,459,000	$ 1,156,000	$ 962,000
Performance-Based Restricted Stock Units (PSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation, payment award, vesting period (in years)	3 years
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of shares vested	$ 1,370,000	$ 1,101,000	$ 953,000
Shares granted (in shares)	49,303	96,380	16,978
Unrecognized compensation expense	$ 2,216,000
Number of unvested restricted shares (in shares)	124,747	120,577	69,338	96,826
Weighted average remaining term of unvested performance shares	2 years 9 months 29 days
Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation, payment award, vesting period (in years)	3 years
Shares granted (in shares)	23,110
Number of unvested restricted shares (in shares)	23,110	0
Number of shares expected to vest in target award	34,665
Target award, unrecognized compensation expense, expected	$ 814,000
Weighted average remaining term of unvested performance shares	2 years
Performance Shares \| 60th Percentile
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Target award grant, percentage	50.00%
Performance Shares \| 70th Percentile
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Target award grant, percentage	100.00%
Performance Shares \| 80th Percentile or Higher
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Target award grant, percentage	150.00%
Employee \| Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation, payment award, vesting period (in years)	5 years
Share-Based Payment Arrangement, Directors
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation, payment award, vesting period (in years)	1 year
Director
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted (in shares)	11,097	16,380	13,882
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum number of shares available for grant (in shares)	1,700,000
Maximum \| Performance-Based Restricted Stock Units (PSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of actual payouts of target award	150.00%
Maximum \| Employee \| Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation, payment award, vesting period (in years)	7 years
Maximum \| Share-Based Payment Arrangement, Executives \| Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation, payment award, vesting period (in years)	5 years
Minimum \| Performance-Based Restricted Stock Units (PSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of actual payouts of target award	0.00%
Minimum \| Executives and Directors
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation, payment award, vesting period (in years)	3 years
Minimum \| Employee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation, payment award, vesting period (in years)	3 years
Minimum \| Share-Based Payment Arrangement, Executives \| Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation, payment award, vesting period (in years)	3 years

Related Party Transactions (Tables)

12 Months Ended

Dec. 31, 2025

Schedule of Loans to Related Parties

Table 12.1 is a summary of loans to related parties in 2025, 2024, and 2023.


Table 12.1: Related Party Loans
(in thousands)	2025		2024		2023
Beginning balance	$	14,497	$	5,455	$	6,250
New loans or advances	—		9,400		1,275

Repayments	(634)		(358)		(2,070)

Ending balance	$	13,863	$	14,497	$	5,455

Loans and Allowance for Credit Losses - Schedule of Balance of Each Major Product Type (Details) - USD ($) $ in Thousands	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023	Jan. 01, 2023	Dec. 31, 2022
Financing Receivable, Past Due [Line Items]
Subtotal	$ 4,077,019	$ 3,534,606
Net deferred loan fees	(2,090)	(1,920)
Total	4,074,929	3,532,686
Allowance for credit losses	(44,409)	(37,791)	$ (34,431)	$ (28,389)	$ (28,389)
Loans held for investment, net of allowance for credit losses	4,030,520	3,494,895
Commercial
Financing Receivable, Past Due [Line Items]
Subtotal	3,305,713	2,857,173
Total	3,302,761	2,854,531
Allowance for credit losses	(25,219)	(25,864)	(29,015)		(19,216)
Commercial land and development
Financing Receivable, Past Due [Line Items]
Subtotal	1,352	3,849
Total	1,354	3,854
Allowance for credit losses	(56)	(78)	(178)		(54)
Commercial construction
Financing Receivable, Past Due [Line Items]
Subtotal	96,760	111,318
Total	96,423	111,033
Allowance for credit losses	(4,050)	(2,268)	(718)		(645)
Residential construction
Financing Receivable, Past Due [Line Items]
Subtotal	8,389	4,561
Total	8,341	4,560
Allowance for credit losses	(213)	(64)	(89)		(49)
Residential
Financing Receivable, Past Due [Line Items]
Subtotal	37,566	32,774
Total	37,600	32,796
Allowance for credit losses	(362)	(270)	(151)		(175)
Farmland
Financing Receivable, Past Due [Line Items]
Subtotal	59,606	47,241
Total	59,584	47,220
Allowance for credit losses	(467)	(607)	(399)		(644)
Secured
Financing Receivable, Past Due [Line Items]
Subtotal	251,736	170,548
Total	252,805	171,336
Allowance for credit losses	(11,204)	(5,866)	(3,314)		(7,098)
Unsecured
Financing Receivable, Past Due [Line Items]
Subtotal	40,422	27,558
Total	40,453	27,575
Allowance for credit losses	(482)	(278)	(189)		(116)
Consumer and other
Financing Receivable, Past Due [Line Items]
Subtotal	275,475	279,584
Total	275,608	279,781
Allowance for credit losses	$ (2,356)	$ (2,496)	$ (378)		$ (347)

Income Taxes - Schedule of Provision for Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023
Current tax expense:
Federal	$ 15,819	$ 12,382	$ 13,234
State	6,885	6,911	6,439
Total current tax expense	22,704	19,293	19,673
Deferred tax expense (benefit):
Federal	(919)	(66)	(741)
State	341	(177)	(50)
Total deferred tax benefit	(578)	(243)	(791)
Income tax expense	$ 22,126	$ 19,050	$ 18,882

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
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Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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Reference 15: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Loans and Allowance for Credit Losses - Schedule of Financial Effect of Loans Modified due to Financial Distress (Details) - Commercial	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024
Financing Receivable, Modified [Line Items]
Reduced loan payment by borrower due to financial distress, period	5 months	12 months
Payment deferral by borrower due to financial distress, period	1 month

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

Income Tax Disclosure [Abstract]

Schedule of Effective Income Tax Rate Reconciliation

Table 11.1 presents a calculation of the Company’s income tax expense for the year ended December 31, 2025.


Table 11.1: Calculation of Income Tax Expense
	2025
(in thousands)	Amount		Percent
Income before provision for income taxes	$	83,732

Income tax expense at U.S. federal statutory rate	17,584		21.00	%
State and local income tax, net of federal income tax effect1	5,837		6.97	%
Tax Credits
IRC 45X Tax Credits	(900)		(1.07)	%
Other tax credits	(139)		(0.17)	%
Nontaxable and nondeductible items
Other nontaxable and nondeductible items	(54)		(0.06)	%
Other adjustments	(202)		(0.25)	%
Total	$	22,126	26.42	%

1 State taxes in California made up the majority of the effect of the state and local tax category.

Table 11.2 presents a reconciliation of the U.S. federal statutory income tax rate to the Company’s effective income tax rate for the years ended December 31, 2024 and 2023.


Table 11.2: Difference Between Effective Income Tax Rate and Statutory Federal Rate
(in thousands)	2024			2023
Statutory U.S. federal income tax	$	13,591		$	13,989
Increase (decrease) resulting from:
State taxes, net of federal impact	5,219			5,048
Other	240			(155)
Income tax expense	$	19,050		$	18,882
Effective tax rate	29.43		%	28.34		%

Schedule of Components of Income Tax Expense (Benefit)

Table 11.3 shows the components of the consolidated provision for income taxes for the years indicated.


Table 11.3: Components of Consolidated Provision for Income Taxes
(in thousands)	2025		2024		2023
Current tax expense:
Federal	$	15,819	$	12,382	$	13,234
State	6,885		6,911		6,439
Total current tax expense	22,704		19,293		19,673
Deferred tax expense (benefit):
Federal	(919)		(66)		(741)
State	341		(177)		(50)
Total deferred tax benefit	(578)		(243)		(791)
Provision for income taxes	$	22,126	$	19,050	$	18,882

Table 11.5 details items the Company recognized as components of tax expense, taxable losses and amortization expense relating to investments in Qualified Affordable Housing Projects for the periods indicated.


Table 11.5: Tax Impacts of Investments in Qualified Affordable Housing Projects
(in thousands)	2025		2024		2023
Taxable loss - decrease in tax expense	$	(2,689)	$	(963)	$	(1,626)
Amortization - increase in tax expense	1,769		1,050		291
Qualified Affordable Housing Tax Credits - decrease in tax expense	(1,553)		(1,046)		—

Schedule of Deferred Tax Assets and Liabilities


Table 11.4: Components of Deferred Tax Assets and Liabilities
(in thousands)	2025		2024		2023
Deferred tax assets:
Allowance for credit losses	$	12,143	$	11,241	$	10,820
Supplemental employee retirement plan	279		343		409
Gain on available-for-sale assets	677		943		303
Net unrealized loss on securities available-for-sale	3,353		5,192		4,938
State tax	1,188		1,268		751
Operating lease liability	3,195		1,999		1,759
Other	392		334		1,891
Total deferred tax assets	21,227		21,320		20,871
Deferred tax liabilities:
Deferred loan fees	(3,436)		(3,723)		(4,063)
Depreciation	(332)		(145)		(411)
ROUA	(2,907)		(1,821)		(1,648)
Other	(983)		(801)		(416)
Total deferred tax liabilities	(7,658)		(6,490)		(6,538)
Net deferred tax asset	$	13,569	$	14,830	$	14,333

Parent Company Only Condensed Financial Information - Statement of Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023
Condensed Financial Statements, Captions [Line Items]
Dividends from banking subsidiary	$ 248,933	$ 206,951	$ 174,382
Income before provision for income taxes	83,732	64,721	66,616
Income tax benefit	(22,126)	(19,050)	(18,882)
Net income	61,606	45,671	47,734
Parent Company
Condensed Financial Statements, Captions [Line Items]
Dividends from banking subsidiary	25,185	22,223	19,643
Other income	40	0	0
Interest expense	4,646	4,646	4,646
Other expense	3,257	2,636	2,500
Income before provision for income taxes	17,322	14,941	12,497
Income tax benefit	2,137	2,112	2,244
Equity in undistributed banking subsidiary income	42,147	28,618	32,993
Net income	$ 61,606	$ 45,671	$ 47,734

Loans and Allowance for Credit Losses - Schedule of Allowance for Loan Losses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	$ 37,791	$ 34,431	$ 28,389
Charge-offs	(3,844)	(5,151)	(4,608)
Recoveries	712	1,061	1,418
Provision (Benefit)	9,750	7,450	3,970
Ending Balance	44,409	37,791	34,431
Impact of ASC 326 Adoption
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	0	0	5,262
Ending Balance		0	0
Commercial
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	25,864	29,015	19,216
Charge-offs	(280)	0	0
Recoveries	0	0	0
Provision (Benefit)	(365)	(3,151)	2,193
Ending Balance	25,219	25,864	29,015
Commercial \| Impact of ASC 326 Adoption
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	0	0	7,606
Ending Balance		0	0
Commercial land and development
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	78	178	54
Charge-offs	0	0	0
Recoveries	0	0	0
Provision (Benefit)	(22)	(100)	50
Ending Balance	56	78	178
Commercial land and development \| Impact of ASC 326 Adoption
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	0	0	74
Ending Balance		0	0
Commercial construction
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	2,268	718	645
Charge-offs	0	0	0
Recoveries	0	0	0
Provision (Benefit)	1,782	1,550	(809)
Ending Balance	4,050	2,268	718
Commercial construction \| Impact of ASC 326 Adoption
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	0	0	882
Ending Balance		0	0
Residential construction
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	64	89	49
Charge-offs	0	0	0
Recoveries	0	0	0
Provision (Benefit)	149	(25)	(41)
Ending Balance	213	64	89
Residential construction \| Impact of ASC 326 Adoption
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	0	0	81
Ending Balance		0	0
Residential
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	270	151	175
Charge-offs	0	0	0
Recoveries	0	0	0
Provision (Benefit)	92	119	(27)
Ending Balance	362	270	151
Residential \| Impact of ASC 326 Adoption
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	0	0	3
Ending Balance		0	0
Farmland
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	607	399	644
Charge-offs	0	0	0
Recoveries	0	0	0
Provision (Benefit)	(140)	208	151
Ending Balance	467	607	399
Farmland \| Impact of ASC 326 Adoption
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	0	0	(396)
Ending Balance		0	0
Secured
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	5,866	3,314	7,098
Charge-offs	(3,213)	(4,737)	(3,496)
Recoveries	475	695	423
Provision (Benefit)	8,076	6,594	2,349
Ending Balance	11,204	5,866	3,314
Secured \| Impact of ASC 326 Adoption
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	0	0	(3,060)
Ending Balance		0	0
Unsecured
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	278	189	116
Charge-offs	(50)	(41)	(6)
Recoveries	0	0	0
Provision (Benefit)	254	130	42
Ending Balance	482	278	189
Unsecured \| Impact of ASC 326 Adoption
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	0	0	37
Ending Balance		0	0
Consumer and other
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	2,496	378	347
Charge-offs	(301)	(373)	(1,106)
Recoveries	237	366	995
Provision (Benefit)	(76)	2,125	62
Ending Balance	2,356	2,496	378
Consumer and other \| Impact of ASC 326 Adoption
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	$ 0	0	80
Ending Balance		0	0
Unallocated
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance		$ 0	45
Charge-offs			0
Recoveries			0
Provision (Benefit)			0
Ending Balance			0
Unallocated \| Impact of ASC 326 Adoption
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance			$ (45)

Loans and Allowance for Credit Losses

12 Months Ended

Dec. 31, 2025

Receivables [Abstract]

Loans and Allowance for Credit Losses

The Company’s loan portfolio is its largest class of earning assets and typically provides higher yields than other types of earning assets. Associated with the higher yields is an inherent amount of credit risk which the Company attempts to

mitigate through strong underwriting practices. Table 4.1 presents the balance of each major product type within the Company’s portfolio as of the dates indicated.


Table 4.1: Loans Outstanding
(in thousands)	December 31, 2025		December 31, 2024
Real estate:
Commercial	$	3,305,713	$	2,857,173
Commercial land and development	1,352		3,849
Commercial construction	96,760		111,318
Residential construction	8,389		4,561
Residential	37,566		32,774
Farmland	59,606		47,241
Commercial:
Secured	251,736		170,548
Unsecured	40,422		27,558

Consumer and other	275,475		279,584
Subtotal	4,077,019		3,534,606
Net deferred loan fees	(2,090)		(1,920)
Loans held for investment	4,074,929		3,532,686
Allowance for credit losses	(44,409)		(37,791)
Loans held for investment, net of allowance for credit losses	$	4,030,520	$	3,494,895

Underwriting

Real estate loans: Real estate loans are subject to underwriting standards and processes similar to those for commercial loans. These loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Commercial real estate lending typically involves higher loan principal amounts, and the repayment of these loans is generally largely dependent on the successful operation of the property securing the loan or the business conducted on the property securing the loan. Commercial real estate loans may be more adversely affected than other loans by conditions in the real estate market or in the general economy. The properties securing the Company’s commercial real estate portfolio are diverse in terms of type. This diversity helps reduce the Company’s exposure to adverse economic events that affect any single market or industry. Management monitors and evaluates commercial real estate loans based on collateral, geography, and risk grade criteria.

Construction loans: With respect to construction loans that the Company may originate from time to time, the Company generally requires the borrower to have had an existing relationship with the Company and have a proven record of success. Construction loans may be underwritten utilizing feasibility studies, independent appraisal reviews, sensitivity analysis of absorption and lease rates, and financial analysis of the developers and property owners. Construction loans are generally based upon estimates of costs and value associated with the completed project. These estimates may be inaccurate. Construction loans often involve the disbursement of substantial funds with repayment substantially dependent on the ultimate success of the project. Sources of repayment for these types of loans may be pre-committed permanent loans from approved long-term lenders, sales of developed property, or an interim loan commitment from the Company until permanent financing is obtained. These loans are closely monitored using on-site inspections and are generally considered to have higher risks than other real estate loans due to their ultimate repayment being sensitive to interest rate changes, governmental regulation of real property, general economic conditions, and the availability of long-term financing.

Residential real estate loans: Residential real estate loans are underwritten based upon the borrower’s income, credit history, and collateral. To monitor and manage residential loan risk, policies and procedures are developed and modified, as needed. This activity, coupled with relatively small loan amounts that are spread across many individual borrowers, minimizes risk. Underwriting standards for home loans are heavily influenced by statutory requirements, which include, but are not limited to, a maximum loan-to-value percentage, collection remedies, the number of such loans a borrower can have at one time, and documentation requirements.

Farmland loans: Farmland loans are generally made to producers and processors of crops and livestock. Repayment is primarily from the sale of an agricultural product or service. Farmland loans are secured by real property and are susceptible to changes in market demand for specific commodities. This may be exacerbated by, among other things, industry changes, changes in the individual financial capacity of the business owner, general economic conditions, changes in business cycles, and adverse weather conditions.

Commercial loans: Commercial loans are underwritten after evaluating and understanding the borrower’s ability to operate profitably and prudently expand its business. Underwriting standards are designed to promote relationship banking rather than transactional banking. Once it is determined that the borrower’s management possesses sound ethics and solid business acumen, the Company’s management examines current and projected cash flows to determine the ability of the borrower to repay its obligations as agreed. Commercial loans are primarily made based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not be as expected, and the collateral securing these loans may fluctuate in value. Most commercial loans are secured by the assets being financed or other business assets such as accounts receivable or inventory and may incorporate a personal guarantee; however, some short-term loans may be made on an unsecured basis. In the case of loans secured by accounts receivable, the availability of funds for the repayment of these loans may be substantially dependent on the ability of the borrower to collect amounts due from its customers.

Consumer loans: The Company purchased consumer loans underwritten utilizing credit scoring analysis to supplement the underwriting process. To monitor and manage consumer loan risk, policies and procedures are developed and modified, as needed. This activity, coupled with relatively small loan amounts that are spread across many individual borrowers, minimizes risk. Underwriting standards for home equity loans are heavily influenced by statutory requirements, which include, but are not limited to, a maximum loan-to-value percentage, collection remedies, the number of such loans a borrower can have at one time, and documentation requirements.

Concentrations

The Company’s customers are primarily located in the Greater Sacramento, North Valley, and San Francisco Bay Area regions of California. As of December 31, 2025, approximately 86% of the Company’s loans were real estate related, 7% were commercial, and 7% were consumer.

Credit Quality Indicators

The Company has established a loan risk rating system to measure and monitor the quality of the loan portfolio. All loans are assigned a risk rating from the inception of the loan until the loan is paid off. The primary loan grades are as follows:

Loans rated pass: These are loans to borrowers with satisfactory financial support, repayment capacity, and credit strength. Borrowers in this category demonstrate fundamentally sound financial positions, repayment capacity, credit history, and management expertise. Loans in this category must have an identifiable and stable source of repayment and meet the Company’s policy regarding debt service coverage ratios. These borrowers are capable of sustaining normal economic, market, or operational setbacks without significant financial impacts and their financial ratios and trends are acceptable. Negative external industry factors are generally not present. The loan may be secured, unsecured, or supported by non-real estate collateral for which the value is more difficult to determine and/or marketability is more uncertain.

Loans rated watch: These are loans which have deficient loan quality and potentially significant issues, but losses do not appear to be imminent, and the issues may be temporary in nature. The significant issues are typically: (i) a history of losses or events that threaten the borrower’s viability; (ii) a property with significant depreciation and/or marketability concerns; or (iii) poor or deteriorating credit, occasional late payments, and/or limited reserves but the loan is generally kept current. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the Company’s credit position at some future date.

Loans rated substandard: These are loans which are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged (if any). Loans so classified exhibit a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. Loans are characterized by the distinct possibility that the Company may sustain some loss if the deficiencies are not corrected.

Loans rated doubtful: These are loans for which the collection or liquidation of the entire debt is highly questionable or improbable. Typically, the possibility of loss is extremely high. The losses on these loans are deferred until all pending factors have been addressed.

Table 4.2 presents the amortized cost basis of the Company’s loans by origination year, where origination is defined as the later of origination or renewal date, and credit quality indicator as of the periods indicated.


Table 4.2: Loans by Risk Category and Vintage
	Amortized Cost Basis by Origination Year as of December 31, 2025
(in thousands)	2025		2024		2023		2022		2021		Prior		Revolving Loans		Revolving Converted to Term		Total
Real estate:
Commercial
Pass	$	670,067	$	414,556	$	282,656	$	838,288	$	579,921	$	406,273	$	13,549	$	—	$	3,205,310
Watch	200		—		2,974		31,209		16,949		23,407		1,391		—		76,130
Substandard	1,044		—		2,122		—		3,700		14,040		415		—		21,321

Total	671,311		414,556		287,752		869,497		600,570		443,720		15,355		—		3,302,761
Commercial land and development
Pass	414		75		—		—		—		369		496		—		1,354



Total	414		75		—		—		—		369		496		—		1,354
Commercial construction
Pass	19,160		11,692		50,158		522		—		—		—		—		81,532
Watch	—		14,891		—		—		—		—		—		—		14,891


Total	19,160		26,583		50,158		522		—		—		—		—		96,423
Residential construction
Pass	8,341		—		—		—		—		—		—		—		8,341



Total	8,341		—		—		—		—		—		—		—		8,341
Residential
Pass	6,285		5,923		4,718		2,784		8,883		7,548		1,459		—		37,600



Total	6,285		5,923		4,718		2,784		8,883		7,548		1,459		—		37,600
Farmland
Pass	19,761		1,580		1,994		6,126		8,215		21,323		—		—		58,999
Watch	—		—		—		—		—		585		—		—		585


Total	19,761		1,580		1,994		6,126		8,215		21,908		—		—		59,584
Commercial:
Secured
Pass	53,290		25,960		15,508		16,270		6,881		15,762		107,900		—		241,571
Watch	—		95		528		6,867		1,665		1,122		—		—		10,277
Substandard	167		—		166		34		74		17		499		—		957

Total	53,457		26,055		16,202		23,171		8,620		16,901		108,399		—		252,805
Unsecured
Pass	12,597		8,163		2,514		1,282		1,828		2,874		11,195		—		40,453



Total	12,597		8,163		2,514		1,282		1,828		2,874		11,195		—		40,453
Consumer and other
Pass	72,893		172,130		21,159		4,976		4,172		120		152		—		275,602

Substandard	—		—		—		6		—		—		—		—		6

Total	72,893		172,130		21,159		4,982		4,172		120		152		—		275,608
Total
Pass	862,808		640,079		378,707		870,248		609,900		454,269		134,751		—		3,950,762
Watch	200		14,986		3,502		38,076		18,614		25,114		1,391		—		101,883
Substandard	1,211		—		2,288		40		3,774		14,057		914		—		22,284

Total	$	864,219	$	655,065	$	384,497	$	908,364	$	632,288	$	493,440	$	137,056	$	—	$	4,074,929


Table 4.2: Loans by Risk Category and Vintage (continued)
	Amortized Cost Basis by Origination Year as of December 31, 2024
(in thousands)	2024		2023		2022		2021		2020		Prior		Revolving Loans		Revolving Converted to Term		Total
Real estate:
Commercial
Pass	$	427,209	$	298,408	$	881,675	$	618,052	$	202,356	$	312,622	$	3,688	$	—	$	2,744,010
Watch	641		8,193		42,531		31,895		16,969		6,316		1,391		—		107,936
Substandard	—		—		—		—		—		2,585		—		—		2,585

Total	427,850		306,601		924,206		649,947		219,325		321,523		5,079		—		2,854,531
Commercial land and development
Pass	1,781		—		1,237		—		180		656		—		—		3,854



Total	1,781		—		1,237		—		180		656		—		—		3,854
Commercial construction
Pass	13,757		72,933		13,112		—		11,231		—		—		—		111,033



Total	13,757		72,933		13,112		—		11,231		—		—		—		111,033
Residential construction
Pass	4,560		—		—		—		—		—		—		—		4,560



Total	4,560		—		—		—		—		—		—		—		4,560
Residential
Pass	6,080		4,783		2,869		9,483		2,201		6,246		1,134		—		32,796



Total	6,080		4,783		2,869		9,483		2,201		6,246		1,134		—		32,796
Farmland
Pass	1,054		2,042		7,032		11,467		6,960		17,373		—		—		45,928
Watch	501		—		791		—		—		—		—		—		1,292


Total	1,555		2,042		7,823		11,467		6,960		17,373		—		—		47,220
Commercial:
Secured
Pass	26,536		20,427		21,142		9,607		9,144		14,400		55,914		—		157,170
Watch	—		301		9,840		2,581		107		1,289		—		—		14,118
Substandard	—		—		—		—		—		48		—		—		48

Total	26,536		20,728		30,982		12,188		9,251		15,737		55,914		—		171,336
Unsecured
Pass	8,071		4,499		2,815		3,494		4,817		1,364		2,515		—		27,575



Total	8,071		4,499		2,815		3,494		4,817		1,364		2,515		—		27,575
Consumer and other
Pass	232,420		33,453		7,874		5,812		6		207		—		—		279,772

Substandard	—		—		9		—		—		—		—		—		9

Total	232,420		33,453		7,883		5,812		6		207		—		—		279,781
Total
Pass	721,468		436,545		937,756		657,915		236,895		352,868		63,251		—		3,406,698
Watch	1,142		8,494		53,162		34,476		17,076		7,605		1,391		—		123,346
Substandard	—		—		9		—		—		2,633		—		—		2,642

Total	$	722,610	$	445,039	$	990,927	$	692,391	$	253,971	$	363,106	$	64,642	$	—	$	3,532,686

Management regularly reviews the Company’s loans for accuracy of risk grades whenever new information is received. Borrowers are generally required to submit financial information at regular intervals. Typically, commercial borrowers with lines of credit are required to submit financial information with reporting intervals generally ranging from monthly to annually depending on credit size, risk, and complexity. All commercial borrowers with loans exceeding a certain dollar threshold are usually required to submit financials annually for review; this includes business financial statements, rent rolls, property income statements, and tax returns. Management monitors construction loans monthly and reviews consumer loans based on delinquency. Management also reviews loans graded “watch” or worse, regardless of loan type, no less than quarterly.

Table 4.3 presents the Company’s gross charge-offs by origination year and class, where origination is defined as the later of origination or renewal date, as of the periods indicated.


Table 4.3: Gross Charge-Offs by Vintage
	Amortized Cost Basis by Origination Year as of December 31, 2025
(in thousands)	2025		2024		2023		2022		2021		Prior		Revolving Loans		Revolving Converted to Term		Total
Real estate:
Commercial	$	—	$	—	$	—	$	112	$	168	$	—	$	—	$	—	$	280





Commercial:
Secured	—		405		510		453		343		1,502		—		—		3,213
Unsecured	—		—		—		—		50		—		—		—		50
Consumer and other	—		—		35		179		87		—		—		—		301
Total	$	—	$	405	$	545	$	744	$	648	$	1,502	$	—	$	—	$	3,844


	Amortized Cost Basis by Origination Year as of December 31, 2024
(in thousands)	2024		2023		2022		2021		2020		Prior		Revolving Loans		Revolving Converted to Term		Total







Commercial:
Secured	116		1,433		1,218		323		712		935		—		—		4,737
Unsecured	—		36		—		5		—		—		—		—		41
Consumer and other	—		46		211		116		—		—		—		—		373
Total	$	116	$	1,515	$	1,429	$	444	$	712	$	935	$	—	$	—	$	5,151

Table 4.4 presents the age analysis of the Company’s past due loans by class as of the periods indicated.


Table 4.4: Age Analysis of Past Due Loans by Class
(in thousands)	Past Due
	30-59 Days		60-89 Days		Greater Than 90 Days		Total Past Due		Current		Total Loans Receivable
December 31, 2025
Real estate:
Commercial	$	859	$	—	$	—	$	859	$	3,301,902	$	3,302,761
Commercial land and development	—		—		—		—		1,354		1,354
Commercial construction	—		—		—		—		96,423		96,423
Residential construction	—		—		—		—		8,341		8,341
Residential	—		—		—		—		37,600		37,600
Farmland	—		—		—		—		59,584		59,584
Commercial:
Secured	691		8		183		882		251,923		252,805
Unsecured	—		—		—		—		40,453		40,453
Consumer and other	46		—		—		46		275,562		275,608
Total	$	1,596	$	8	$	183	$	1,787	$	4,073,142	$	4,074,929

December 31, 2024
Real estate:
Commercial	$	—	$	—	$	—	$	—	$	2,854,531	$	2,854,531
Commercial land and development	—		—		—		—		3,854		3,854
Commercial construction	—		—		—		—		111,033		111,033
Residential construction	—		—		—		—		4,560		4,560
Residential	—		—		—		—		32,796		32,796
Farmland	—		—		—		—		47,220		47,220
Commercial:
Secured	1,107		—		—		1,107		170,229		171,336
Unsecured	—		—		—		—		27,575		27,575

Consumer and other	67		—		—		67		279,714		279,781
Total	$	1,174	$	—	$	—	$	1,174	$	3,531,512	$	3,532,686

There were no loans greater than 90 days past due and still accruing interest income as of December 31, 2025 or 2024.

Table 4.5 presents the amortized cost basis of the Company’s collateral dependent loans by class as of the periods indicated. These loans were individually evaluated for credit loss in accordance with the Company’s allowance for credit losses methodology.


Table 4.5: Collateral Dependent Loans by Class
(in thousands)	2025		2024
Real estate:
Commercial	$	2,667	$	1,749





Commercial:
Secured	17		48



Total	$	2,684	$	1,797

There were no residential real estate loans in the process of foreclosure as of December 31, 2025 and 2024.

Modifications to loans for borrowers experiencing financial difficulty may include interest rate reductions, principal or interest forgiveness, forbearances, term extensions, and other actions intended to minimize economic loss and to avoid foreclosure or repossession of collateral.

Table 4.6 presents the amortized cost basis of loans by class that were modified due to financial distress during the periods indicated.


Table 4.6: Amortized Cost Basis of Loans Modified due to Financial Distress
(in thousands)	For the twelve months ended December 31, 2025				For the twelve months ended December 31, 2024
	Payment Change/Deferment		Total % of Loans Outstanding		Payment Change		Total % of Loans Outstanding
Real estate:
Commercial	$	1,583	0.04	%	$	1,749	0.05	%









Total	$	1,583	0.04	%	$	1,749	0.05	%

Table 4.7 presents the financial effect of loans by class that were modified due to financial distress during the periods indicated.

Table 4.7: Financial Effect of Loans Modified due to Financial Distress

For the twelve months ended December 31,

Modification Type

Loan Type

Financial Effect

2025

Payment Change/Deferment

Real estate: Commercial

Reduced the loan payment owed by the borrower for five months and deferred the full loan payment for one month

2024

Payment Change

Real estate: Commercial

Reduced the loan payment owed by the borrower for twelve months

Table 4.8 presents the Company’s non-accrual loans by class as of the periods indicated.


Table 4.8: Non-accrual Loans
(in thousands)	2025		2024
Real estate:
Commercial	$	2,666	$	1,750





Commercial:
Secured	430		48



Total non-accrual loans	$	3,096	$	1,798

No interest income was recognized on non-accrual loans in the years ended December 31, 2025, 2024, and 2023. Non-accrual real estate loans did not have an allowance for credit losses as of December 31, 2025 and 2024. Non-accrual commercial loans carried an immaterial allowance for credit losses as of December 31, 2025 and 2024. Interest income can be recognized on non-accrual loans in cases where resolution occurs through a sale or full payment is received on the non-accrual loan.

The amount of foregone interest income related to non-accrual loans was $194,000, $167,000, and $95,000 for the years ended December 31, 2025, 2024, and 2023, respectively.

Allowance for Credit Losses

Table 4.9 discloses activity in the allowance for credit losses for the periods indicated.


Table 4.9: Allowance for Credit Losses
(in thousands)	Beginning Balance		Effect of Adoption of ASC 326		Charge-offs		Recoveries		Provision (Benefit)		Ending Balance
Year ended December 31, 2025
Real estate:
Commercial	$	25,864	$	—	$	(280)	$	—	$	(365)	$	25,219
Commercial land and development	78		—		—		—		(22)		56
Commercial construction	2,268		—		—		—		1,782		4,050
Residential construction	64		—		—		—		149		213
Residential	270		—		—		—		92		362
Farmland	607		—		—		—		(140)		467
Commercial:
Secured	5,866		—		(3,213)		475		8,076		11,204
Unsecured	278		—		(50)		—		254		482

Consumer and other	2,496		—		(301)		237		(76)		2,356

Total	$	37,791	$	—	$	(3,844)	$	712	$	9,750	$	44,409

Year ended December 31, 2024
Real estate:
Commercial	$	29,015	$	—	$	—	$	—	$	(3,151)	$	25,864
Commercial land and development	178		—		—		—		(100)		78
Commercial construction	718		—		—		—		1,550		2,268
Residential construction	89		—		—		—		(25)		64
Residential	151		—		—		—		119		270
Farmland	399		—		—		—		208		607
Commercial:
Secured	3,314		—		(4,737)		695		6,594		5,866
Unsecured	189		—		(41)		—		130		278

Consumer and other	378		—		(373)		366		2,125		2,496

Total	$	34,431	$	—	$	(5,151)	$	1,061	$	7,450	$	37,791

Year ended December 31, 2023
Real estate:
Commercial	$	19,216	$	7,606	$	—	$	—	$	2,193	$	29,015
Commercial land and development	54		74		—		—		50		178
Commercial construction	645		882		—		—		(809)		718
Residential construction	49		81		—		—		(41)		89
Residential	175		3		—		—		(27)		151
Farmland	644		(396)		—		—		151		399
Commercial:
Secured	7,098		(3,060)		(3,496)		423		2,349		3,314
Unsecured	116		37		(6)		—		42		189

Consumer and other	347		80		(1,106)		995		62		378
Unallocated	45		(45)		—		—		—		—
Total	$	28,389	$	5,262	$	(4,608)	$	1,418	$	3,970	$	34,431

Unfunded Loan Commitment Reserves

Unfunded loan commitment reserves are included in “Interest payable and other liabilities” in the consolidated balance sheets. Provisions for unfunded loan commitments are included in “Provision for credit losses” in the consolidated statements of income.


Table 4.10: Unfunded Loan Commitment Reserves
(in thousands)	2025		2024		2023
Balance at January 1	$	747	$	1,247	$	125
Effect of adoption of ASC 326	—		—		1,092
(Benefit) provision	(50)		(500)		30


Balance at December 31	$	697	$	747	$	1,247

Pledged Loans

The Company’s FHLB line of credit is secured under terms of a collateral agreement by a pledge of certain qualifying loans with unpaid principal balances of $2,209,121,000 and $1,850,910,000 at December 31, 2025 and 2024, respectively. In addition, the Company pledges eligible tenants in common loans, which totaled $1,324,605,000 and $1,201,864,000 at December 31, 2025 and 2024, respectively, to secure its borrowing capacity with the Federal Reserve Discount Window. See Note 9, Long Term Debt and Other Borrowings, for further discussion of these borrowings.

Interest Receivable and Other Assets

The composition of interest receivable and other assets as of December 31, 2025 and 2024 is shown in Table 7.1.


Table 7.1: Interest Receivable and Other Assets
(in thousands)	2025		2024
Interest receivable	$	11,904	$	10,293
Equity investments	12,111		9,328
Low income housing tax credits	22,476		14,081
Other assets	22,189		21,852
Interest receivable and other assets	$	68,680	$	55,554

Interest Bearing Deposits - Schedule of Interest-Bearing Deposits (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023
Interest-Bearing Deposits [Abstract]
Interest-bearing transaction accounts	$ 344,200	$ 315,217
Savings accounts	139,169	124,702
Money market accounts	2,078,567	1,525,292
Time accounts, $250 or more	350,032	344,129
Other time accounts	204,579	326,025
Total interest-bearing deposits	3,116,547	2,635,365
Time deposits minimum	$ 250	$ 250	$ 250

Interest Receivable and Other Assets

12 Months Ended

Dec. 31, 2025

Interest Receivable and Other Assets [Abstract]

Interest Receivable and Other Assets

Loans and Allowance for Credit Losses

mitigate through strong underwriting practices. Table 4.1 presents the balance of each major product type within the Company’s portfolio as of the dates indicated.


Table 4.1: Loans Outstanding
(in thousands)	December 31, 2025		December 31, 2024
Real estate:
Commercial	$	3,305,713	$	2,857,173
Commercial land and development	1,352		3,849
Commercial construction	96,760		111,318
Residential construction	8,389		4,561
Residential	37,566		32,774
Farmland	59,606		47,241
Commercial:
Secured	251,736		170,548
Unsecured	40,422		27,558

Consumer and other	275,475		279,584
Subtotal	4,077,019		3,534,606
Net deferred loan fees	(2,090)		(1,920)
Loans held for investment	4,074,929		3,532,686
Allowance for credit losses	(44,409)		(37,791)
Loans held for investment, net of allowance for credit losses	$	4,030,520	$	3,494,895

Underwriting

Concentrations

Credit Quality Indicators


Table 4.2: Loans by Risk Category and Vintage
	Amortized Cost Basis by Origination Year as of December 31, 2025
(in thousands)	2025		2024		2023		2022		2021		Prior		Revolving Loans		Revolving Converted to Term		Total
Real estate:
Commercial
Pass	$	670,067	$	414,556	$	282,656	$	838,288	$	579,921	$	406,273	$	13,549	$	—	$	3,205,310
Watch	200		—		2,974		31,209		16,949		23,407		1,391		—		76,130
Substandard	1,044		—		2,122		—		3,700		14,040		415		—		21,321

Total	671,311		414,556		287,752		869,497		600,570		443,720		15,355		—		3,302,761
Commercial land and development
Pass	414		75		—		—		—		369		496		—		1,354



Total	414		75		—		—		—		369		496		—		1,354
Commercial construction
Pass	19,160		11,692		50,158		522		—		—		—		—		81,532
Watch	—		14,891		—		—		—		—		—		—		14,891


Total	19,160		26,583		50,158		522		—		—		—		—		96,423
Residential construction
Pass	8,341		—		—		—		—		—		—		—		8,341



Total	8,341		—		—		—		—		—		—		—		8,341
Residential
Pass	6,285		5,923		4,718		2,784		8,883		7,548		1,459		—		37,600



Total	6,285		5,923		4,718		2,784		8,883		7,548		1,459		—		37,600
Farmland
Pass	19,761		1,580		1,994		6,126		8,215		21,323		—		—		58,999
Watch	—		—		—		—		—		585		—		—		585


Total	19,761		1,580		1,994		6,126		8,215		21,908		—		—		59,584
Commercial:
Secured
Pass	53,290		25,960		15,508		16,270		6,881		15,762		107,900		—		241,571
Watch	—		95		528		6,867		1,665		1,122		—		—		10,277
Substandard	167		—		166		34		74		17		499		—		957

Total	53,457		26,055		16,202		23,171		8,620		16,901		108,399		—		252,805
Unsecured
Pass	12,597		8,163		2,514		1,282		1,828		2,874		11,195		—		40,453



Total	12,597		8,163		2,514		1,282		1,828		2,874		11,195		—		40,453
Consumer and other
Pass	72,893		172,130		21,159		4,976		4,172		120		152		—		275,602

Substandard	—		—		—		6		—		—		—		—		6

Total	72,893		172,130		21,159		4,982		4,172		120		152		—		275,608
Total
Pass	862,808		640,079		378,707		870,248		609,900		454,269		134,751		—		3,950,762
Watch	200		14,986		3,502		38,076		18,614		25,114		1,391		—		101,883
Substandard	1,211		—		2,288		40		3,774		14,057		914		—		22,284

Total	$	864,219	$	655,065	$	384,497	$	908,364	$	632,288	$	493,440	$	137,056	$	—	$	4,074,929


Table 4.2: Loans by Risk Category and Vintage (continued)
	Amortized Cost Basis by Origination Year as of December 31, 2024
(in thousands)	2024		2023		2022		2021		2020		Prior		Revolving Loans		Revolving Converted to Term		Total
Real estate:
Commercial
Pass	$	427,209	$	298,408	$	881,675	$	618,052	$	202,356	$	312,622	$	3,688	$	—	$	2,744,010
Watch	641		8,193		42,531		31,895		16,969		6,316		1,391		—		107,936
Substandard	—		—		—		—		—		2,585		—		—		2,585

Total	427,850		306,601		924,206		649,947		219,325		321,523		5,079		—		2,854,531
Commercial land and development
Pass	1,781		—		1,237		—		180		656		—		—		3,854



Total	1,781		—		1,237		—		180		656		—		—		3,854
Commercial construction
Pass	13,757		72,933		13,112		—		11,231		—		—		—		111,033



Total	13,757		72,933		13,112		—		11,231		—		—		—		111,033
Residential construction
Pass	4,560		—		—		—		—		—		—		—		4,560



Total	4,560		—		—		—		—		—		—		—		4,560
Residential
Pass	6,080		4,783		2,869		9,483		2,201		6,246		1,134		—		32,796



Total	6,080		4,783		2,869		9,483		2,201		6,246		1,134		—		32,796
Farmland
Pass	1,054		2,042		7,032		11,467		6,960		17,373		—		—		45,928
Watch	501		—		791		—		—		—		—		—		1,292


Total	1,555		2,042		7,823		11,467		6,960		17,373		—		—		47,220
Commercial:
Secured
Pass	26,536		20,427		21,142		9,607		9,144		14,400		55,914		—		157,170
Watch	—		301		9,840		2,581		107		1,289		—		—		14,118
Substandard	—		—		—		—		—		48		—		—		48

Total	26,536		20,728		30,982		12,188		9,251		15,737		55,914		—		171,336
Unsecured
Pass	8,071		4,499		2,815		3,494		4,817		1,364		2,515		—		27,575



Total	8,071		4,499		2,815		3,494		4,817		1,364		2,515		—		27,575
Consumer and other
Pass	232,420		33,453		7,874		5,812		6		207		—		—		279,772

Substandard	—		—		9		—		—		—		—		—		9

Total	232,420		33,453		7,883		5,812		6		207		—		—		279,781
Total
Pass	721,468		436,545		937,756		657,915		236,895		352,868		63,251		—		3,406,698
Watch	1,142		8,494		53,162		34,476		17,076		7,605		1,391		—		123,346
Substandard	—		—		9		—		—		2,633		—		—		2,642

Total	$	722,610	$	445,039	$	990,927	$	692,391	$	253,971	$	363,106	$	64,642	$	—	$	3,532,686

Table 4.3 presents the Company’s gross charge-offs by origination year and class, where origination is defined as the later of origination or renewal date, as of the periods indicated.


Table 4.3: Gross Charge-Offs by Vintage
	Amortized Cost Basis by Origination Year as of December 31, 2025
(in thousands)	2025		2024		2023		2022		2021		Prior		Revolving Loans		Revolving Converted to Term		Total
Real estate:
Commercial	$	—	$	—	$	—	$	112	$	168	$	—	$	—	$	—	$	280





Commercial:
Secured	—		405		510		453		343		1,502		—		—		3,213
Unsecured	—		—		—		—		50		—		—		—		50
Consumer and other	—		—		35		179		87		—		—		—		301
Total	$	—	$	405	$	545	$	744	$	648	$	1,502	$	—	$	—	$	3,844


	Amortized Cost Basis by Origination Year as of December 31, 2024
(in thousands)	2024		2023		2022		2021		2020		Prior		Revolving Loans		Revolving Converted to Term		Total







Commercial:
Secured	116		1,433		1,218		323		712		935		—		—		4,737
Unsecured	—		36		—		5		—		—		—		—		41
Consumer and other	—		46		211		116		—		—		—		—		373
Total	$	116	$	1,515	$	1,429	$	444	$	712	$	935	$	—	$	—	$	5,151

Table 4.4 presents the age analysis of the Company’s past due loans by class as of the periods indicated.


Table 4.4: Age Analysis of Past Due Loans by Class
(in thousands)	Past Due
	30-59 Days		60-89 Days		Greater Than 90 Days		Total Past Due		Current		Total Loans Receivable
December 31, 2025
Real estate:
Commercial	$	859	$	—	$	—	$	859	$	3,301,902	$	3,302,761
Commercial land and development	—		—		—		—		1,354		1,354
Commercial construction	—		—		—		—		96,423		96,423
Residential construction	—		—		—		—		8,341		8,341
Residential	—		—		—		—		37,600		37,600
Farmland	—		—		—		—		59,584		59,584
Commercial:
Secured	691		8		183		882		251,923		252,805
Unsecured	—		—		—		—		40,453		40,453
Consumer and other	46		—		—		46		275,562		275,608
Total	$	1,596	$	8	$	183	$	1,787	$	4,073,142	$	4,074,929

December 31, 2024
Real estate:
Commercial	$	—	$	—	$	—	$	—	$	2,854,531	$	2,854,531
Commercial land and development	—		—		—		—		3,854		3,854
Commercial construction	—		—		—		—		111,033		111,033
Residential construction	—		—		—		—		4,560		4,560
Residential	—		—		—		—		32,796		32,796
Farmland	—		—		—		—		47,220		47,220
Commercial:
Secured	1,107		—		—		1,107		170,229		171,336
Unsecured	—		—		—		—		27,575		27,575

Consumer and other	67		—		—		67		279,714		279,781
Total	$	1,174	$	—	$	—	$	1,174	$	3,531,512	$	3,532,686

There were no loans greater than 90 days past due and still accruing interest income as of December 31, 2025 or 2024.


Table 4.5: Collateral Dependent Loans by Class
(in thousands)	2025		2024
Real estate:
Commercial	$	2,667	$	1,749





Commercial:
Secured	17		48



Total	$	2,684	$	1,797

There were no residential real estate loans in the process of foreclosure as of December 31, 2025 and 2024.

Table 4.6 presents the amortized cost basis of loans by class that were modified due to financial distress during the periods indicated.


Table 4.6: Amortized Cost Basis of Loans Modified due to Financial Distress
(in thousands)	For the twelve months ended December 31, 2025				For the twelve months ended December 31, 2024
	Payment Change/Deferment		Total % of Loans Outstanding		Payment Change		Total % of Loans Outstanding
Real estate:
Commercial	$	1,583	0.04	%	$	1,749	0.05	%









Total	$	1,583	0.04	%	$	1,749	0.05	%

Table 4.7 presents the financial effect of loans by class that were modified due to financial distress during the periods indicated.

Table 4.7: Financial Effect of Loans Modified due to Financial Distress

For the twelve months ended December 31,

Modification Type

Loan Type

Financial Effect

2025

Payment Change/Deferment

Real estate: Commercial

Reduced the loan payment owed by the borrower for five months and deferred the full loan payment for one month

2024

Payment Change

Real estate: Commercial

Reduced the loan payment owed by the borrower for twelve months

Table 4.8 presents the Company’s non-accrual loans by class as of the periods indicated.


Table 4.8: Non-accrual Loans
(in thousands)	2025		2024
Real estate:
Commercial	$	2,666	$	1,750





Commercial:
Secured	430		48



Total non-accrual loans	$	3,096	$	1,798

The amount of foregone interest income related to non-accrual loans was $194,000, $167,000, and $95,000 for the years ended December 31, 2025, 2024, and 2023, respectively.

Allowance for Credit Losses

Table 4.9 discloses activity in the allowance for credit losses for the periods indicated.


Table 4.9: Allowance for Credit Losses
(in thousands)	Beginning Balance		Effect of Adoption of ASC 326		Charge-offs		Recoveries		Provision (Benefit)		Ending Balance
Year ended December 31, 2025
Real estate:
Commercial	$	25,864	$	—	$	(280)	$	—	$	(365)	$	25,219
Commercial land and development	78		—		—		—		(22)		56
Commercial construction	2,268		—		—		—		1,782		4,050
Residential construction	64		—		—		—		149		213
Residential	270		—		—		—		92		362
Farmland	607		—		—		—		(140)		467
Commercial:
Secured	5,866		—		(3,213)		475		8,076		11,204
Unsecured	278		—		(50)		—		254		482

Consumer and other	2,496		—		(301)		237		(76)		2,356

Total	$	37,791	$	—	$	(3,844)	$	712	$	9,750	$	44,409

Year ended December 31, 2024
Real estate:
Commercial	$	29,015	$	—	$	—	$	—	$	(3,151)	$	25,864
Commercial land and development	178		—		—		—		(100)		78
Commercial construction	718		—		—		—		1,550		2,268
Residential construction	89		—		—		—		(25)		64
Residential	151		—		—		—		119		270
Farmland	399		—		—		—		208		607
Commercial:
Secured	3,314		—		(4,737)		695		6,594		5,866
Unsecured	189		—		(41)		—		130		278

Consumer and other	378		—		(373)		366		2,125		2,496

Total	$	34,431	$	—	$	(5,151)	$	1,061	$	7,450	$	37,791

Year ended December 31, 2023
Real estate:
Commercial	$	19,216	$	7,606	$	—	$	—	$	2,193	$	29,015
Commercial land and development	54		74		—		—		50		178
Commercial construction	645		882		—		—		(809)		718
Residential construction	49		81		—		—		(41)		89
Residential	175		3		—		—		(27)		151
Farmland	644		(396)		—		—		151		399
Commercial:
Secured	7,098		(3,060)		(3,496)		423		2,349		3,314
Unsecured	116		37		(6)		—		42		189

Consumer and other	347		80		(1,106)		995		62		378
Unallocated	45		(45)		—		—		—		—
Total	$	28,389	$	5,262	$	(4,608)	$	1,418	$	3,970	$	34,431

Unfunded Loan Commitment Reserves


Table 4.10: Unfunded Loan Commitment Reserves
(in thousands)	2025		2024		2023
Balance at January 1	$	747	$	1,247	$	125
Effect of adoption of ASC 326	—		—		1,092
(Benefit) provision	(50)		(500)		30


Balance at December 31	$	697	$	747	$	1,247

Pledged Loans

Interest Receivable and Other Assets

The composition of interest receivable and other assets as of December 31, 2025 and 2024 is shown in Table 7.1.


Table 7.1: Interest Receivable and Other Assets
(in thousands)	2025		2024
Interest receivable	$	11,904	$	10,293
Equity investments	12,111		9,328
Low income housing tax credits	22,476		14,081
Other assets	22,189		21,852
Interest receivable and other assets	$	68,680	$	55,554

Basis of Presentation

12 Months Ended

Dec. 31, 2025

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Nature of Operations and Principles of Consolidation

Five Star Bank was chartered on October 26, 1999 and began operations on December 20, 1999. Five Star Bancorp was incorporated on September 16, 2002 and subsequently obtained approval from the Federal Reserve to become a bank holding company in connection with its acquisition of the Bank. The Company became the sole shareholder of the Bank on June 2, 2003 in a statutory merger, pursuant to which each outstanding share of the Bank’s common stock was exchanged for one share of common stock of the Company. The Company publicly filed a Registration Statement on Form S-1 with the SEC in connection with its IPO, which was declared effective by the SEC on May 4, 2021 and closed on May 7, 2021. In connection with the Company’s IPO, its status as a Subchapter S corporation was terminated and the Company became a taxable C Corporation as of May 5, 2021.

The Company, through the Bank, provides a broad range of banking products and services to customers who are predominately small and medium-sized businesses, professionals, and individuals primarily 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 branch offices in Roseville, Natomas, Rancho Cordova, Redding, Elk Grove, Chico, Yuba City, San Francisco, and Walnut Creek.

Basis of Financial Statement Presentation and Consolidation

The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) as contained within the FASB’s ASC, including ASU, and the rules and regulations of the SEC, including the instructions to Regulation S-X.

The consolidated financial statements include Bancorp and its wholly owned subsidiary, the Bank. All significant intercompany transactions and balances are eliminated in consolidation.

The Company’s accounting and reporting policies conform to GAAP and to general practices within the banking industry.

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 accounting standards adoption dates, and is relieved of other significant requirements that are otherwise generally applicable to other public companies.

Segments

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 to medium-sized businesses, professionals, and individuals primarily in Northern California. The Company manages the business activities on a consolidated basis.

The Company’s chief operating decision maker (“CODM”) is its Chief Executive Officer, who reviews financial information presented on a consolidated basis. The CODM assesses performance for the operating segment and decides how to allocate resources based on net income that also is reported on the income statement as consolidated net income. The measure of segment assets is reported on the balance sheet as total consolidated assets.

In accordance with ASC 280, as amended by ASU 2023-07, the Company discloses the following significant expense categories and other items on a consolidated basis which are regularly provided to the CODM and included in the measure of consolidated profit or loss:

•Interest expense - includes interest paid on deposits, borrowings, and subordinated notes;

•Provision for credit losses - represents the amount charged to earnings to maintain the allowance for credit losses at an appropriate level;

•Salaries and employee benefits - includes wages, incentive compensation, payroll taxes, and employee benefits;

•Occupancy and equipment expense - includes rent, depreciation, utilities, and maintenance of premises and equipment;

•Data processing and software expense - includes costs related to core processing, digital banking platforms, and other technology-related services;

•Professional services - includes legal, audit, consulting, and other professional fees;

•FDIC insurance - represents deposit insurance premiums paid to the FDIC;

•Advertising and promotional expense - includes marketing, advertising, and business development costs;

•Loan-related expenses - includes costs associated with loan origination, servicing, and collection; and

•Other operating expenses - includes all other expenses not separately disclosed above, such as office supplies, travel, and regulatory assessments.

Other items regularly provided to the CODM and included in the measure of consolidated profit or loss include:

•Non-interest income - such as service charges on deposit accounts, gain on sale of loans, loan-related fees, FHLB stock dividends, and earnings on BOLI; and

•Income tax expense - represents the provision for federal and state income taxes.

Segment profit or loss is measured as consolidated net income, which is calculated as total revenues (net interest income and non-interest income) less total expenses (interest expense, provision for credit losses, and non-interest expenses) and income tax expense. These financial metrics are used by the CODM to make key operating decisions, such as determination of the rate at which the Company seeks to grow, loan and deposit pricing, and the allocation of budget for non-interest expenses. Net income is used to monitor budget versus actual results. The Company does not have any other reportable segments, and discrete financial information is not available other than on a consolidated basis. All significant operating decisions are made on a consolidated basis.

Use of Estimates

Management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates and assumptions affect the amounts reported in the consolidated financial statements and the disclosures provided, and actual results could differ. The ACL is the most significant accounting estimate reflected in the Company’s consolidated financial statements. Other estimates include fair value measurements and deferred tax asset valuation.

Cash and Cash Equivalents

The Company defines cash and cash equivalents as cash, due from financial institutions, interest-bearing deposits in banks with short-term original maturities, and federal funds sold. Generally, federal funds are sold for one-day periods, if at all. At times throughout the year, balances can exceed FDIC insurance limits. The Company has not experienced any historical losses associated with balances maintained with financial institutions in excess of FDIC insurance limits, and management continues to monitor the financial condition of the major financial institutions where these funds are held.

Securities Available-for-Sale

Available-for-sale securities consist of bonds, notes, and debentures not classified as trading securities or held-to-maturity securities. Securities are classified as available-for-sale if the Company intends and has the ability to hold those securities for a period of time, but not necessarily to maturity. Any decision to sell a security classified as available-for-sale would be based on various factors, including significant movements in interest rates, changes in the maturity mix of assets and liabilities, liquidity needs, regulatory capital considerations, and other similar factors.

Securities available-for-sale are carried at fair value. Unrealized holding gains or losses are included in other comprehensive income as a separate component of shareholders’ equity, net of tax. Realized gains or losses, determined based on the cost of specific securities sold, are included in earnings. Premiums are amortized over the life of the security or, if a callable bond, over the earliest call date, and discounts are accreted over the life of the related investment security as an adjustment to interest income using the effective interest method. Interest income is recognized when earned.

Unrealized credit losses are recognized through an allowance for credit losses instead of an adjustment to amortized cost basis, eliminating the other-than-temporary impairment concept. For available-for-sale debt securities in an unrealized loss

position, the Company first assesses whether it intends to sell, or it is more likely than not that it will be required to sell, the security before recovery of amortized cost basis. If either criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through earnings. For available-for-sale debt securities that do not meet the above conditions, the Company evaluates at the individual security level whether the decrease in fair value has resulted from credit factors or non-credit factors. If assessment determines that a credit loss exists, the present value of cash flows expected to be collected from the security is compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis of the security, then a credit loss would be recognized, limited to the amount by which the fair value is less than the amortized cost basis. All other changes in fair value of an available-for-sale debt security are recognized in other comprehensive income, net of applicable taxes. Changes in the allowance for credit losses, if any, are recognized as a provision for (or reversal of) credit losses. Accrued interest receivable is not subject to an estimate for credit loss, as the Company has a policy to charge off accrued interest deemed uncollectible in a timely manner.

Securities Held-to-Maturity

Securities are classified as held-to-maturity if the Company has both the intent and ability to hold those securities to maturity regardless of changes in market conditions, liquidity needs, or changes in general economic conditions. These securities are carried at cost adjusted for amortization of premium to the earliest callable call date and accretion of discount, computed by the effective interest method over the life of the related investment. Estimated credit losses are recorded through a credit loss expense and an allowance. Accrued interest receivable is not subject to an estimate for credit loss, as the Company has a policy to charge off accrued interest deemed uncollectible in a timely manner.

Loans

Loans are reported at the principal amount outstanding, net of deferred loan fees and costs and the allowance for credit losses. Interest on loans is accrued daily based on the principal outstanding.

Loan fees, net of certain direct costs of origination, are deferred and recognized in interest income using the level-yield method without anticipating prepayments. During the years ended December 31, 2025, 2024, and 2023, salaries and employee benefits totaling $5,218,000, $3,719,000, and $3,461,000, respectively, were deferred as loan origination costs.

Loans on which the accrual of interest has been discontinued are designated as non-accrual loans. Accrual of interest on loans is discontinued either when reasonable doubt exists as to the full and timely collection of interest or principal or when a loan becomes contractually past due by 90 days or more with respect to interest or principal. When a loan is placed on non-accrual status, all interest previously accrued, but not collected, is reversed against current period interest income. Income on such loans is then recognized only to the extent that cash is received and where the future collection of principal is probable. Interest accruals are resumed on such loans only when they are brought fully current with respect to interest and principal and when, in the judgment of management, the loans are estimated to be fully collectible as to both principal and interest.

Allowance for Credit Losses

The ACL is a valuation account that offsets the amortized cost basis of loans receivable and certain other financial assets, including unfunded loan commitments and held-to-maturity debt securities. Under ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments and all subsequent amendments that modified ASU 2016-13 (collectively, “ASC 326”), amortized cost basis is the basis on which the ACL is determined. Amortized cost basis on loans receivable is principal outstanding, net of any purchase premiums and discounts, and net of any deferred loan fees and costs.

Credit losses are charged off when management believes that the collectability of at least some portion of outstanding principal is unlikely. These charge-offs are recorded as a reversal to, thereby reducing, the allowance for credit losses. Subsequent recoveries of previously charged-off amounts, if any, are recorded as a provision to, thereby increasing, the allowance for credit losses. The allowance for credit losses is maintained at a level to absorb expected credit losses over the contractual life, including consideration of prepayments. Determining the adequacy of the allowance is complex and requires judgments that are inherently subjective, as it requires estimates that are susceptible to revision as additional information becomes available. While the Company has determined an allowance for credit losses it considers appropriate, there can be no assurance that the allowance will be sufficient to absorb future losses.

The Company’s process for determining expected lifetime credit losses entails a loan-level, model-based approach and considers a broad range of information, including historical loss experience, current conditions, and reasonable and supportable forecasts. Credit loss is estimated for all loans. Accordingly, the Company has stratified the full loan population into segments sharing similar characteristics to perform the evaluation of the credit loss collectively. The Company can also further stratify loans of similar types, risk attributes, and methods for credit risk monitoring.

The Company has determined loan pools based primarily on regulatory reporting codes, as the loans within each pool share similar risk characteristics and there is sufficient historical peer loss data from the FFIEC to provide statistically meaningful support in the models developed. The Company further stratified the following portfolios as the loans in these pools have different repayment structures and credit risk characteristics: Multifamily portfolio into traditional Multifamily loans and Manufactured Home Community (“MHC”) loans, CRE Non-Owner Occupied portfolio into traditional CRE Non-Owner Occupied loans and RV Park loans, and C&I portfolio into traditional C&I loans and SBA loans. The Company also stratified C&I loans and consumer loans that do not require reserves, as the Company has third-party agreements in place to cover credit losses. The Company has identified the following pools subject to estimate of credit loss: (1) 1-4 Family Construction; (2) Other Construction; (3) Farmland; (4) Revolving Secured by 1-4 Family; (5) Residential Secured by First Liens; (6) Residential Secured by Junior Liens; (7) Multifamily; (8) Multifamily MHC; (9) CRE Owner Occupied; (10) CRE Non-Owner Occupied; (11) CRE Non-Owner Occupied RV Park; (12) Agriculture; (13) C&I; (14) C&I SBA; (15) Consumer; and (16) Municipal.

The Company has determined, given its limited loss experience, that peer data and other external data to support loss history provides the best basis for its assessment of expected credit losses. The Company believes that the use of peer loss data from March 31, 2004 through December 31, 2019 and January 31, 2022 through March 31, 2025 presents loss histories that appropriately reflect a full economic cycle, reflects asset-specific risk characteristics at each pool level identified, and includes a historical look-back period that is objective and reflective of future expected credit losses. Loss data from 2020 and 2021 was excluded from the data set to exclude pandemic-related data from the model.

The method for determining the estimate of lifetime credit losses includes, among other things, the following main components: (i) the use of probability of default and loss given default assumptions under a discounted cash flow model; (ii) a multi-scenario macroeconomic forecast; (iii) an initial and reasonable and supportable forecast period of one year for all loan segments; and (iv) a reversion period of one year using a linear transition method to historical loss rates.

Given the inherent limitations of a quantitative-only model, qualitative adjustments are included to factor in data points not captured from a quantitative analysis alone.

Qualitative criteria that can be considered includes, among other things, the following:

•Concentrations – the existence and effect of any concentrations of credit, and changes in the level of such concentrations;

•Volume – changes in the nature and volume of the portfolio and in the terms of the loans;

•Economic – changes in international, national, regional, and local economic and business conditions and developments that affect the collectability of the portfolio, including the condition of various market segments;

•Policy – changes in lending policies and procedures, including changes in underwriting standards and collection, charge-off, and recovery practices not considered elsewhere in estimating credit losses;

•Quality – changes in the volume and severity of past due loans, the volume of non-accrual loans, and the volume and severity of adversely classified or graded loans;

•Loan review - changes in the quality of internal loan review processes, measured by third party audit and regulatory results; and

•External – the effect of other external factors, such as competition and legal and regulatory requirements on the level of estimated credit losses in the Company’s loan portfolio.

Management reviews current information on a quarterly basis to assess the forecasted future economic impact for purposes of evaluating the adequacy of the ACL. The forecasted direction and magnitude of change with respect to future economic conditions is then assessed against the estimate in the model. Any changes resulting from the quarterly assessment are recorded in “Provision for credit losses” in the unaudited consolidated statements of income. The Audit Committee of the board of directors reviews the adequacy of the allowance at least quarterly.

Accrued interest receivable is excluded from amortized cost of all financial instrument types and included in “Interest receivable and other assets” in the consolidated balance sheets. Accrued interest receivable is not subject to an estimate for credit loss, as the Company has a policy to charge off accrued interest deemed uncollectible in a timely manner. When a loan is placed on non-accrual status, which occurs within 90 days of a borrower becoming delinquent, interest previously accrued but not collected is reversed against current period income.

If an individual loan’s characteristics have deteriorated to below a range of the overall pool, the loan would be individually evaluated. Individually evaluated loans are measured for credit loss based on one of the following methods: (i) present value of future expected cash flows, discounted at the loan’s effective interest rate; (ii) amount by which carrying value of the loan exceeds the loan’s observable market price; or (iii) the fair value of the collateral, less estimated selling costs, if the loan is collateral dependent. The Company applies the practical expedient and defines collateral dependent loans as those where the borrower is experiencing financial difficulty and on which payment is expected to be provided substantially through the operation or sale of the collateral.

Troubled Debt Restructurings (“TDRs”) and Other Loan Modifications

The Company evaluates all loan modifications to determine whether they are made to borrowers experiencing financial difficulty, in accordance with ASC 326, as amended by ASU 2022-02. A loan modification is considered to be to a borrower experiencing financial difficulty if the borrower is unable to meet its current contractual obligations and the Company grants a concession, such as principal forgiveness, an interest rate reduction, an other-than-insignificant payment delay, or a term extension. For such modifications, the Company assesses whether the modification should be accounted for as a new loan or as a continuation of the existing loan, based on the specific facts and circumstances.

The Company provides enhanced disclosures regarding the nature and extent of modifications made to borrowers experiencing financial difficulty, including the type of modification, the financial effect of the modification, and subsequent performance. The Company continues to monitor the performance of these modified loans and provides the required disclosures in the notes to the consolidated financial statements.

Federal Home Loan Bank Stock

Federal Home Loan Bank stock represents the Company’s investment in the stock of the FHLB and is carried at par value. While technically these are considered equity securities, there is no market for FHLB stock. Therefore, the shares are considered as other investment securities.

Management periodically evaluates FHLB stock for impairment. Management’s determination of whether these investments are impaired is based on its assessment of the ultimate recoverability of cost rather than by recognizing temporary declines in value. The determination of whether a decline affects the ultimate recoverability of cost is influenced by criteria such as: (i) the significance of any decline in net assets of the FHLB, as compared to the capital stock amount for the FHLB and the length of time this situation has persisted; (ii) commitments by the FHLB to make payments required by law or regulation and the level of such payments in relation to the operating performance of the FHLB; (iii) the impact of legislative and regulatory changes on institutions and, accordingly, the customer base of the FHLB; and (iv) the liquidity position of the FHLB. Both cash and stock dividends are reported as non-interest income.

Premises and Equipment

Premises and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are provided for in amounts sufficient to relate the cost of depreciable assets to operations over their estimated service lives using a straight-line basis. Table 1.1 presents the normal estimated lives used in determining depreciation and amortization.


Table 1.1: Normal Estimated Lives - Premises and Equipment
Equipment			3 - 12 years
Furniture and fixtures			5 - 10 years
Leasehold improvements			5 - 15 years
Automobiles			3 - 5 years

Leasehold improvements are amortized over the lesser of the useful life of the asset or the remaining term of the lease. The straight-line method of depreciation is followed for all assets for financial reporting purposes, but accelerated methods are used for tax purposes.

When assets are sold or otherwise disposed of, the cost and related accumulated depreciation or amortization are removed from the accounts, and any resulting gain or loss is recognized in income for the period. The cost of maintenance and repairs is charged to expense as incurred.

Other Real Estate

Real estate properties acquired through, or in lieu of, loan foreclosure, are classified as OREO, are to be sold, and are initially recorded at fair value of the property at the date of foreclosure less estimated selling costs. Any write-downs in value are recorded against the allowance for credit losses. Subsequent to foreclosure, valuations are periodically performed, and any revisions in the estimate of fair value are reported as adjustments to the carrying value of the real estate, provided the adjusted carrying amount does not exceed the original amount at foreclosure. Subsequent valuation adjustments are recognized as OREO write-downs. Revenues and expenses incurred from OREO property management are recorded in non-interest income and non-interest expense, respectively. During 2025, the Bank did not foreclose on any loans. During 2024, the Bank foreclosed on one loan, and its associated OREO was sold during 2025. During 2023, the Bank did not foreclose on any loans.

BOLI

BOLI is recorded at the amount that can be realized under the insurance contract at the consolidated balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. Increases in contract value are recorded as non-interest income, and insurance proceeds received are recorded as a reduction of the contract value.

Long-Term Assets

Premises, equipment, and other long-term assets are reviewed for impairment when events indicate that their carrying amount may not be recoverable from future undiscounted cash flows. If impaired, the assets are adjusted to reflect their fair value.

Leases

The Company records a ROUA in the consolidated balance sheets for those leases that convey rights to control use of identified assets for a period of time in exchange for consideration. The Company records a lease liability in the consolidated balance sheets for the present value of future payment commitments. All of the Company’s leases are comprised of operating leases in which the Company is the lessee of real estate property for branches and operations. The Company elected not to include short-term leases (i.e., leases with initial terms of 12 months or less) within the ROUA and lease liability. Known or determinable adjustments to the required minimum future lease payments are included in the calculation of the Company’s ROUA and lease liability. Adjustments to the required minimum future lease payments that are variable and will not be determinable until a future period, if any, are included as variable lease costs. Additionally, when expected variable payments for common area maintenance, taxes, and insurance are unknown and not determinable at lease commencement, they are not included in the determination of the Company’s ROUA and lease liability.

The value of the ROUA and lease liability is impacted by the amount of the periodic payment required, length of the lease term, and the discount rate used to calculate the present value of the minimum lease payments. The Company’s lease agreements often include one or more options to renew at the Company’s discretion. If at lease inception, the Company considers the exercising of a renewal option to be reasonably certain, the Company will include the extended term in the calculation of the ROUA and lease liability. ASC 842 requires the use of the rate implicit in the lease whenever this rate is readily determinable. As this rate is rarely determinable, the Company utilizes its incremental borrowing rate at lease inception, on a collateralized basis, over a similar term. The lease liability is reduced based on the discounted present value of remaining payments as of each reporting period. The ROUA value is measured using the lease liability as adjusted for prepaid or accrued lease payments and remaining lease incentives, unamortized direct costs, and impairment, if any.

Equity Investments

The Company records equity investments within “Interest receivable and other assets” in the consolidated balance sheets. Equity investments are recorded under the following methods:

•Low income housing tax credit investments are accounted for under the proportional amortization method. Under this method, the initial book value (gross commitment amount) of the investment is amortized over time in proportion to the projected tax benefits to be received. This amortization is a component of income tax expense.

•For equity investments where the Company has significant influence, the Company applies the equity method of accounting, which adjusts the carrying value of the investment to recognize a proportionate share of the financial results of the investment entity, regardless of whether any distribution is made. Any adjustments to the fair value of these investments are recorded in “Other non-interest income” in the consolidated statements of income.

•For certain nonmarketable equity investments where the equity method of accounting is not applicable, the Company applies the fair value method. Any adjustments to the fair value of these investments are recorded in “Other non-interest income” in the consolidated statements of income. Fair value is determined by reference to readily determinable market values, if applicable. As these investments do not have readily determinable fair values, they are generally accounted for at cost minus impairment, if any, plus or minus changes resulting from observable transactions involving the same or similar investments from the same issuer. This practice is referred to as the measurement alternative.

Loss Contingencies

Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated.

Transfers of Financial Assets

Transfers of an entire financial asset, a group of financial assets, or a participating interest in an entire financial asset are accounted for as sales when control has been relinquished. Control is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of more than trivial conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity.

Included in the loan portfolio are loans guaranteed by the SBA, the Farm Service Agency, the Federal Agriculture Mortgage Corporation, and the United States Department of Agriculture, of which the guaranteed portion is expected to be sold in the secondary market in exchange for a one-time premium. At the time the guaranteed portion of the loan is sold, the unguaranteed portion and related right to service the entire loan is retained with the Company, to earn future servicing income. The loans held for sale are accounted for at the lower of cost or fair value, using the aggregate method. There were no government-guaranteed loans held for sale at December 31, 2025. Government-guaranteed loans held for sale at December 31, 2024 totaled $3,247,000.

Servicing rights acquired through the origination of loans, which are subsequently sold with servicing rights retained, are recognized as separate assets or liabilities. Servicing assets and liabilities are initially recorded at fair value and are subsequently amortized in proportion to, and over the period of, the related net servicing income or expense. Servicing assets represent the assets related to servicing loans for others, including collecting payments, maintaining escrow accounts, disbursing payments to investors, and conducting foreclosure proceedings. The amortized assets are assessed for impairment or increased obligations at the loan level, based on the fair value on a periodic basis. The Company serviced loans with unpaid principal balances of $121,515,000 and $159,078,000 as of December 31, 2025 and 2024, respectively, on behalf of others.

Loan Commitments and Related Financial Instruments

Financial instruments include off-balance sheet credit instruments, such as commitments to make loans, and financial standby letters of credit issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded.

Loan commitments not unconditionally cancellable are subject to an estimate of credit loss under the CECL model. The Company’s process for determining the estimate of credit loss on loan commitments is the same as it is on loans. Reserves for unfunded commitments are included as a component of “Interest payable and other liabilities” in the consolidated balance sheets.

Stock-Based Compensation

The Company issues equity grants in the form of stock options, RSAs, and PSUs under the Five Star Bancorp 2021 Equity Incentive Plan. These grants are issued to executives, directors, and employees. Compensation cost is recognized based on the fair value of these awards at the date of grant. A Black-Scholes model is utilized to estimate the grant date fair value of

stock options, while the fair value of the Company’s common stock at the date of grant is used for RSAs and PSUs. Compensation cost is recognized over the required service period, generally defined as the vesting period. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. The Company recognizes forfeitures as they occur and does not estimate forfeitures at grant.

Supplemental Executive Retirement Plan

The Bank has entered into a non-qualified retirement plan for the Chief Executive Officer based on a continuation of employment. The present value of annual post-retirement payments is allocated to expense over the years of required service.

Income Taxes

The Company files its income taxes on a consolidated basis with its subsidiary. The allocation of income tax expense represents each entity’s proportionate share of the consolidated provision for income taxes.

Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax bases of assets and liabilities computed using enacted tax rates. A valuation allowance is evaluated at least annually and, as needed, reduces deferred tax assets to the amount expected to be realized.

The Company accounts for uncertain tax positions in accordance with FASB ASC Topic No. 740, Accounting for Uncertainty in Income Taxes. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that has a likelihood greater than 50% of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded.

Derivatives

All derivative instruments are recorded at fair value. If derivative instruments are designated as hedges of fair values, both the change in the fair value of the hedge and the hedged item are included in current earnings. Fair value adjustments related to cash flow hedges, if any, are recorded in other comprehensive income or loss and reclassified to earnings when the hedged transaction is reflected in earnings.

Comprehensive Income or Loss

Comprehensive income or loss consists of net income and other comprehensive income or loss. Other comprehensive income or loss includes unrealized gains and losses on securities available-for-sale, net of tax, which are also recognized as separate components of shareholders’ equity.

EPS

Basic EPS is net income divided by the weighted average number of common shares outstanding during the period less average unvested RSAs. Diluted EPS includes the dilutive effect of additional potential common shares related to unvested RSAs using the treasury stock method. During the years ended December 31, 2025 and 2024, there were no outstanding stock options. The Company has two forms of outstanding common stock: common stock and unvested RSAs. Holders of unvested RSAs receive non-forfeitable dividends at the same rate as common shareholders and they both share equally in

undistributed earnings, and therefore the RSAs are considered participating securities. However, under the two-class method, the difference in EPS is not significant for these participating securities.


Table 1.2: EPS
(in thousands, except share and per share data)	2025		2024		2023
Net income	$	61,606	$	45,671	$	47,734
Basic weighted average common shares outstanding	21,224,788		20,154,385		17,166,592
Add: Dilutive effects of assumed vesting of restricted stock	48,764		51,055		21,377
Total dilutive weighted average common shares outstanding	21,273,552		20,205,440		17,187,969
Earnings per common share:
Basic EPS	$	2.90	$	2.26	$	2.78
Diluted EPS	$	2.90	$	2.26	$	2.78

The Company did not have any anti-dilutive shares at December 31, 2025 or December 31, 2024.

Subordinated Notes

The subordinated notes are recorded at par with related debt issuance costs reported as a direct reduction from the carrying amount. Issuance costs are amortized over the remaining maturity of the notes and reflected in interest expense.

Fair Value of Financial Instruments

The consolidated financial statements include various estimated fair value information as of December 31, 2025 and 2024. Such information, which pertains to the Company’s financial instruments, does not purport to represent the aggregate net fair value of the Company. Further, the fair value estimates are based on various assumptions, methodologies, and subjective considerations, which vary widely among different financial institutions, and are subject to change.

Fair Value Measurements

The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. The Company bases the fair values on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Securities available-for-sale and derivatives, if any, are recorded at fair value on a recurring basis.

Additionally, from time to time, the Company may be required to record certain assets at fair value on a non-recurring basis, such as loans held for sale and certain collateral dependent impaired loans held for investment. These non-recurring fair value adjustments typically involve write-downs of individual assets due to application of lower of cost or fair value accounting.

Accounting standards require the Company to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value:

Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the Company has the ability to access as of the measurement date.

Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data.

Level 3: Significant unobservable inputs that reflect the Company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

The fair values of securities are determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs) or matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities, but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2 inputs).

As a result, if other assumptions had been used, the Company’s recorded earnings or disclosures could have been materially different from those reflected in these consolidated financial statements.

Subsequent Events

The Company has evaluated events and transactions subsequent to December 31, 2025 for recognition or disclosure. Additional detail can be found in Note 19, Subsequent Events.

Shareholders’ Equity	12 Months Ended
Shareholders’ Equity	Dec. 31, 2025
Equity [Abstract]
Shareholders' Equity	Shareholders’ Equity Dividends During the year ended December 31, 2025, the Company declared cash dividends on its common shares totaling $17,085,000. During the year ended December 31, 2024, the Company declared cash dividends on its common shares totaling $16,243,000. During the year ended December 31, 2023, the Company declared cash dividends on its common shares totaling $12,943,000.

- Definition

The entire disclosure for equity.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480008/505-10-S99-1

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
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-URI https://asc.fasb.org/505/tableOfContent

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
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Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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Reference 18: http://www.xbrl.org/2003/role/disclosureRef
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Reference 19: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Income Taxes - Schedule of Components of Tax Impacts of Investments in Affordable Housing Projects (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023
Income Tax Disclosure [Abstract]
Taxable loss - decrease in tax expense	$ (2,689)	$ (963)	$ (1,626)
Investment Program Proportional Amortization Method Elected Income Tax Credit And Other Income Tax Benefit Before Amortization Statement Of Income Or Comprehensive Income Extensible Enumeration Not Disclosed Flag	Taxable loss - decrease in tax expense	Taxable loss - decrease in tax expense	Taxable loss - decrease in tax expense
Investment Program Proportional Amortization Method Elected Income Tax Credit And Other Income Tax Benefit Before Amortization Statement Of Cash Flows Extensible Enumeration Not Disclosed Flag	Taxable loss - decrease in tax expense	Taxable loss - decrease in tax expense	Taxable loss - decrease in tax expense
Amortization - increase in tax expense	$ 1,769	$ 1,050	$ 291
Investment Program Proportional Amortization Method Applied Income Tax Credit And Other Tax Benefit Amortization Statement Of Income Or Comprehensive Income Extensible Enumeration Not Disclosed Flag	Amortization - increase in tax expense	Amortization - increase in tax expense	Amortization - increase in tax expense
Qualified Affordable Housing Tax Credits - decrease in tax expense	$ (1,553)	$ (1,046)	$ 0

Investment Securities - Schedule of Amortized Cost and Fair Value of Investment Debt Securities by Contractual Maturity (Details) - USD ($) $ in Thousands	Dec. 31, 2025	Dec. 31, 2024
Amortized Cost
Within one year	$ 170	$ 210
After one but within five years	865	945
After five years through ten years	1,155	1,380
After ten years	0	185
Fair Value
Within one year	155	182
After one but within five years	788	818
After five years through ten years	1,052	1,193
After ten years	0	160
Amortized Cost
Within one year	0	0
After one but within five years	1,256	798
After five years through ten years	13,471	9,221
After ten years	26,007	32,743
Fair Value
Within one year	0	0
After one but within five years	1,196	737
After five years through ten years	12,385	8,108
After ten years	23,383	28,292
Securities, held-to-maturity, at amortized cost	2,190	2,720
Securities held-to-maturity	1,995	2,353
Securities available-for-sale, at amortized cost	107,197	115,757
Securities available-for-sale	94,699	98,194
U.S. government agency securities
Fair Value
Securities, held-to-maturity, at amortized cost	0	0
Securities held-to-maturity	0	0
Securities available-for-sale, at amortized cost	7,276	8,293
Securities available-for-sale	7,361	8,345
Mortgage-backed securities
Fair Value
Securities, held-to-maturity, at amortized cost	0	0
Securities held-to-maturity	0	0
Securities available-for-sale, at amortized cost	56,941	62,397
Securities available-for-sale	48,186	50,570
Collateralized mortgage obligations
Fair Value
Securities, held-to-maturity, at amortized cost	0	0
Securities held-to-maturity	0	0
Securities available-for-sale, at amortized cost	246	305
Securities available-for-sale	231	279
Corporate bonds
Fair Value
Securities, held-to-maturity, at amortized cost	0	0
Securities held-to-maturity	0	0
Securities available-for-sale, at amortized cost	2,000	2,000
Securities available-for-sale	$ 1,957	$ 1,863

Interest-Bearing Deposits (Tables)

12 Months Ended

Dec. 31, 2025

Interest-Bearing Deposits [Abstract]

Schedule of Interest-Bearing Deposits

Table 8.1 shows the composition of interest-bearing deposits as of December 31, 2025 and 2024.


Table 8.1: Interest-Bearing Deposits
(in thousands)	2025		2024
Interest-bearing transaction accounts	$	344,200	$	315,217
Savings accounts	139,169		124,702
Money market accounts	2,078,567		1,525,292
Time accounts, $250 or more	350,032		344,129
Other time accounts	204,579		326,025

Total interest-bearing deposits	$	3,116,547	$	2,635,365

Schedule of Time Deposit Maturities

Scheduled maturities of time deposits as of December 31, 2025 for the next five years are shown in Table 8.2.


Table 8.2: Scheduled Maturities of Time Deposits
(in thousands)
2026	$	552,870
2027	1,680
2028	61
2029	—
2030	—
Total time deposits	$	554,611

Schedule of Composition of Network Deposits

The composition of network deposits as of December 31, 2025 and 2024 is shown in Table 8.3.


Table 8.3: Network Deposits
(in thousands)	2025		2024
CDARS	$	21,488	$	19,292
ICS	957,156		674,453
Total network deposits	$	978,644	$	693,745

Schedule of Interest Expense Recognized on Interest-Bearing Deposits

Table 8.4 presents interest expense recognized on interest-bearing deposits for the years ended December 31, 2025, 2024, and 2023.


Table 8.4: Interest Expense Recognized on Interest-Bearing Deposits
(in thousands)	2025		2024		2023
Interest-bearing transaction accounts	$	4,529	$	4,716	$	3,321
Savings accounts	3,363		3,584		3,073
Money market accounts	56,323		53,750		33,932
Time accounts, $250 or more	15,378		12,329		12,686
Other time accounts	12,789		8,019		4,849
Total interest expense on interest-bearing deposits	$	92,382	$	82,398	$	57,861

Loans and Allowance for Credit Losses - Schedule of Collateral Dependent Loans by Class (Details) - USD ($) $ in Thousands	Dec. 31, 2025	Dec. 31, 2024
Financing Receivable, Allowance for Credit Loss [Line Items]
Total	$ 2,684	$ 1,797
Commercial
Financing Receivable, Allowance for Credit Loss [Line Items]
Total	2,667	1,749
Secured
Financing Receivable, Allowance for Credit Loss [Line Items]
Total	$ 17	$ 48

CONSOLIDATED STATEMENTS OF INCOME - USD ($)	12 Months Ended
CONSOLIDATED STATEMENTS OF INCOME - USD ($)	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023
Interest and fee income:
Loans, including fees	$ 229,214,000	$ 193,341,000	$ 162,713,000
Taxable securities	1,626,000	1,830,000	1,876,000
Nontaxable securities	672,000	700,000	724,000
Interest-bearing deposits in banks	17,421,000	11,080,000	9,069,000
Total interest and fee income	248,933,000	206,951,000	174,382,000
Interest expense:
Deposits	92,382,000	82,398,000	57,861,000
Subordinated notes	4,646,000	4,646,000	4,646,000
Other borrowings	0	196,000	995,000
Total interest expense	97,028,000	87,240,000	63,502,000
Net interest income	151,905,000	119,711,000	110,880,000
Provision for credit losses	9,700,000	6,950,000	4,000,000
Net interest income after provision for credit losses	142,205,000	112,761,000	106,880,000
Non-interest income:
Service charges on deposit accounts	755,000	721,000	575,000
Net gain (loss) on sale of securities	0	0	(167,000)
Gain on sale of loans	244,000	1,274,000	1,952,000
Loan-related fees	2,156,000	1,605,000	1,719,000
FHLB stock dividends	1,317,000	1,320,000	970,000
Earnings on BOLI	824,000	644,000	510,000
Other	1,239,000	889,000	1,952,000
Total non-interest income	6,535,000	6,453,000	7,511,000
Non-interest expense:
Salaries and employee benefits	37,885,000	31,709,000	27,097,000
Occupancy and equipment	2,782,000	2,547,000	2,218,000
Data processing and software	6,121,000	5,088,000	4,015,000
FDIC insurance	1,950,000	1,635,000	1,557,000
Professional services	3,723,000	3,078,000	2,575,000
Advertising and promotional	3,178,000	2,411,000	2,403,000
Loan-related expenses	1,423,000	1,207,000	1,192,000
Other operating expenses	7,946,000	6,818,000	6,718,000
Total non-interest expense	65,008,000	54,493,000	47,775,000
Income before provision for income taxes	83,732,000	64,721,000	66,616,000
Provision for income taxes	22,126,000	19,050,000	18,882,000
Net income	$ 61,606,000	$ 45,671,000	$ 47,734,000
Basic earnings per common share (in USD per share)	$ 2.90	$ 2.26	$ 2.78
Diluted earnings per common share (in USD per share)	$ 2.90	$ 2.26	$ 2.78

Commitments and Contingencies - Narrative (Details)	12 Months Ended
Commitments and Contingencies - Narrative (Details)	Dec. 31, 2025 USD ($) depositRelationship	Dec. 31, 2024 USD ($) depositRelationship	Dec. 31, 2023 USD ($)	Jan. 01, 2023 USD ($)	Dec. 31, 2022 USD ($)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Allowance for credit losses	$ 44,409,000	$ 37,791,000	$ 34,431,000	$ 28,389,000	$ 28,389,000
Real estate related loans percentage (in percent)	86.07%	86.41%
Number of deposits \| depositRelationship	129	104
Deposits over five million, total	$ 5,000,000	$ 5,000,000
Deposits over five million, amount	$ 2,558,312,000	$ 2,166,080,000
Percentage of deposits over five million deposits	60.90%	60.88%
Largest single deposit	$ 290,000,000	$ 300,000,000
Percentage of largest single deposit to total deposits	6.90%	8.43%
Uninsured amount	$ 27,356,000	$ 29,154,000
Equity investments	12,111,000	9,328,000
Equity investments, remaining commitment amount	13,695,000	10,833,000
Operating leases, right-of-use asset, net	10,802,000	6,245,000
Operating lease liability	11,872,000	6,857,000
Unfunded Loan Commitment
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Allowance for credit losses	697,000	747,000	1,247,000	$ 125,000	$ 125,000
Affiliated Entity \| Sacramento Administrative Office Lease, Maturity May 2026
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Operating lease expense	33,000	32,000	28,000
Affiliated Entity \| Temporary Administrative Office In San Francisco
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Operating lease expense	$ 0	$ 40,000	$ 19,000
Minimum
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Renewal term (in years)	1 year
Maximum
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Renewal term (in years)	5 years

Parent Company Only Condensed Financial Information - Balance Sheet (Details) - USD ($)	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
ASSETS
Other assets	$ 22,189,000	$ 21,852,000
Total assets	4,754,861,000	4,053,278,000
LIABILITIES AND SHAREHOLDERS’ EQUITY
Subordinated notes and other liabilities	74,041,000	73,895,000
Shareholders’ equity	445,832,000	396,624,000	$ 285,774,000	$ 252,825,000
Total liabilities and shareholders’ equity	4,754,861,000	4,053,278,000
Parent Company
ASSETS
Cash and cash equivalents	8,605,000	8,794,000	$ 9,141,000	$ 8,688,000
Investment in banking subsidiary	501,068,000	455,693,000
Other assets	12,004,000	7,826,000
Total assets	521,677,000	472,313,000
LIABILITIES AND SHAREHOLDERS’ EQUITY
Subordinated notes and other liabilities	75,846,000	75,690,000
Shareholders’ equity	445,831,000	396,623,000
Total liabilities and shareholders’ equity	$ 521,677,000	$ 472,313,000

Basis of Presentation (Policies)