Five Star Bancorp (FSBC) 2026 Q1 法說會逐字稿

Welcome to the Five Star Bancorp first quarter earnings webcast. Please note, this is a closed conference call, and you are encouraged to listen via the webcast. (Operator Instructions)

歡迎收看 Five Star Bancorp 第一季財報網路直播。請注意，本次為封閉式電話會議，建議您透過網路直播收聽。(接線員指示)

Before we get started, we would like to remind you that today's meeting will include some forward-looking statements within the meaning of applicable securities laws. These forward-looking statements relate to, among other things, current plans, expectations, events and industry trends that may affect the company's future operating results and financial position. Such statements involve risks and uncertainties, and future activities and results may differ materially from these expectations.

在我們開始之前，提醒各位，今天的會議將包含若干符合適用證券法所定義的前瞻性陳述。這些前瞻性陳述涉及（其中包括）可能影響公司未來營運成果與財務狀況的現行計畫、預期、事件及產業趨勢。此類陳述包含風險與不確定性，未來活動與結果可能與上述預期存在重大差異。

For a more complete discussion of the risks and uncertainties that may cause actual results to differ materially from the company's forward-looking statements, please see the company's annual report on Form 10-K for the year ended December 31, 2025, and in particular, the information set forth in Item 1A, Risk Factors.

如欲更完整了解可能導致實際結果與公司前瞻性陳述出現重大差異的風險與不確定性，請參閱公司截至 2025 年 12 月 31 日止年度的 Form 10-K 年報，特別是第 1A 項「風險因素」所載資訊。

Please refer to slide 2 of the presentation, which includes disclaimers regarding forward-looking statements, industry data, unaudited financial data and non-GAAP financial information included in this presentation. Reconciliations of non-GAAP financial measures to their most directly comparable GAAP figures are included in the appendix to the presentation.

請參閱簡報第 2 頁，其中包含關於前瞻性陳述、產業資料、未經審計財務資料以及本簡報所含非 GAAP 財務資訊的免責聲明。非 GAAP 財務衡量指標與其最直接可比 GAAP 數字之調節表，載於簡報附錄。

The presentation will be referenced during this call, but not followed exactly and is available for closer viewing on the company's website and under the Investor Relations tab. Please note, this event is being recorded.

本次電話會議將引用該簡報，但不會逐頁完全依照簡報進行；簡報可於公司網站的投資人關係（Investor Relations）分頁中取得，以便更清楚查看。請注意，本活動將被錄音。

I would now like to turn the presentation over to James Beckwith, Five Star Bancorp President and CEO. Please go ahead.

現在我想把簡報交給 Five Star Bancorp 總裁兼執行長 James Beckwith。請開始。

Thank you for joining us to review Five Star Bancorp's financial results for Q1 2026. These results were released yesterday and are available on our website, fivestarbank.com, under the Investor Relations section. Joining me today is Heather Luck, the Executive Vice President and Chief Financial Officer.

感謝各位加入我們，一同檢視 Five Star Bancorp 2026 年第一季的財務結果。這些結果已於昨日發布，並可在我們的網站 fivestarbank.com 的投資人關係（Investor Relations）專區查閱。今天與我一同出席的還有執行副總裁兼財務長 Heather Luck。

Q1 2026 marked another period of outstanding achievement for Five Star Bancorp, underscored by robust growth across all markets we serve and consistent strong performance. During the quarter, we continued to deepen our client relationships and expanded our presence in key geographies while investing in both talent and technology to support ongoing organic growth.

2026 年第一季是 Five Star Bancorp 再度取得卓越成就的一段期間，體現在我們所服務的所有市場皆呈現強勁成長，且表現持續亮眼。本季我們持續深化客戶關係，並在關鍵地理區域擴大布局，同時投資於人才與科技，以支持持續的內生成長。

Our commitment to disciplined execution and differentiated customer service and our solid results. Q1 2026 earnings per share increased to $0.87 per share, up $0.04 per share from the prior quarter with annualized growth in loans held for investment of 14% and annualized deposit growth of 26%, we remain well positioned to capitalize on new opportunities and drive sustainable value for our shareholders, customers and communities.

我們對嚴謹執行與差異化客戶服務的承諾，帶來了穩健的成果。2026 年第一季每股盈餘提升至每股 0.87 美元，較前一季增加每股 0.04 美元；投資用貸款年化成長 14%，存款年化成長 26%。我們仍具備良好條件把握新機會，並為股東、客戶與社區創造可持續的價值。

Financial highlights during Q1 2026 include net income of $18.6 million, up 6% from the prior quarter. Return on average assets of 1.55% and and an increase of 5 basis points from the prior quarter, return on average equity of 16.73%, an increase of 76 basis points from the prior quarter. Net interest margin of 3.70%, an increase of 4 basis points from the prior quarter and average cost of total deposits of 2.13%, a decrease of 10 basis points from the prior quarter.

2026 年第一季的財務重點包括：淨利 1,860 萬美元，較前一季成長 6%。平均資產報酬率 1.55%，較前一季增加 5 個基點；平均股東權益報酬率 16.73%，較前一季增加 76 個基點。淨利差 3.70%，較前一季增加 4 個基點；總存款平均成本 2.13%，較前一季下降 10 個基點。

Our Q1 results were driven by robust loan and deposit growth. Loans held for investment grew by $138.5 million or 14% on an annualized basis. Total deposits grew by $268.3 million or 26% on an annualized basis with non-wholesale deposits up $350.2 million, offsetting an $81.9 million reduction in wholesale deposits.

我們第一季的成果主要由強勁的放款與存款成長所帶動。投資用貸款增加 1.385 億美元，年化成長 14%。總存款增加 2.683 億美元，年化成長 26%；其中非批發存款增加 3.502 億美元，抵銷批發存款減少 8,190 萬美元的影響。

This shift reflects our focus on building stable, relationship-based core deposit funding. Our asset quality remains strong with non-performing loans representing just 7 basis points of total loans held for investment, a reflection of our conservative underwriting. We continue to be well capitalized with all capital ratios well above regulatory thresholds for the quarter.

此一結構變化反映我們專注於建立穩定、以關係為基礎的核心存款資金來源。我們的資產品質仍然強勁，不良貸款僅占投資用貸款總額的 7 個基點，反映我們保守的授信承作標準。本季我們仍維持充足資本，所有資本比率均遠高於監理門檻。

We remain committed to delivering value to our shareholders. In Q1, we paid a cash dividend of $0.25 per share and declared an additional $0.25 dividend expected to be paid in May of 2026. Our total assets increased by $276.9 million during the quarter, largely driven by loan growth within the commercial real estate portfolio, which increased by [$116.2 million].

我們仍致力於為股東創造價值。第一季我們支付每股 0.25 美元現金股利，並宣告額外每股 0.25 美元股利，預計於 2026 年 5 月支付。本季總資產增加 2.769 億美元，主要由商用不動產投資組合的放款成長所帶動，該組合增加了[$1.162 億美元]。

Competition has increased, but our loan pipeline remains strong. Ongoing uncertainty surrounding energy supply chains and global economic consequences of the Iran conflict has triggered volatility in interest rates. We believe we are well positioned for changes in interest rates, as approximately 75% of our loans held for investment are adjustable or floating.

競爭雖然加劇，但我們的放款案源（pipeline）仍然強勁。圍繞能源供應鏈的持續不確定性，以及伊朗衝突對全球經濟造成的影響，引發利率波動。我們相信自身已為利率變動做好準備，因為我們投資用貸款中約 75% 為可調整利率或浮動利率。

This gives us flexibility to respond to market shifts and helps protect our earnings in a volatile environment. Our prudent underwriting standards, comprehensive loan monitoring and focus on relationship-driven lending have contributed to maintaining strong credit quality. As a result, we have a very low volume of non-performing loans which declined by $280,000 during the quarter, we recorded a $2.7 million provision for credit losses during the quarter, primarily related to loan growth.

這使我們能更靈活地因應市場變化，並在波動環境中有助於保護我們的獲利。我們審慎的授信承作標準、全面的貸後監控，以及以關係為導向的放款策略，均有助於維持良好的信用品質。因此，我們的不良貸款量非常低，本季減少 28 萬美元；本季我們提列 270 萬美元的信用損失準備，主要與放款成長相關。

The increase in total liabilities during the quarter was the result of growth in interest-bearing and non-interest-bearing deposits related to both new accounts and inflows from existing customers. Non-wholesale deposits increased by $350.2 million, while wholesale deposits decreased by $81.9 million.

本季負債總額的增加，主要來自計息與不計息存款的成長，這些成長同時來自新開戶與既有客戶的資金流入。非批發存款增加 3.502 億美元，而批發存款減少 8,190 萬美元。

Non-interest-bearing deposits accounted for approximately 28% of total deposits and an increase from approximately 26% as of December 31, 2025. Approximately 61% of our total deposit relationships totaled more than $5 million. These deposits have a long tenure with the bank with an average age of approximately eight years. We believe our deposit portfolio to be a stable funding base for our future growth.

不計息存款約占總存款的 28%，較 2025 年 12 月 31 日的約 26% 提升。我們約 61% 的總存款往來關係金額超過 500 萬美元。這些存款與本行往來時間長，平均年資約八年。我們認為，我們的存款組合是支持未來成長的穩定資金基礎。

On that note, I will hand it over to Heather to present the results of operations. Heather?

接下來，我將交由 Heather 說明營運成果。Heather？

Thank you, James, and hello, everyone. Net interest income increased to $43.5 million, a 3% increase from Q4 of 2025, supported by both volume and margin expansion. Our net interest margin improved to 370 from [3.66%] in the prior quarter, reflecting disciplined pricing and favorable mix of assets and liabilities.

謝謝你，James，各位好。淨利息收入增加至 4,350 萬美元，較 2025 年第四季成長 3%，主要受惠於規模成長與利差擴大。我們的淨利差由前一季的 [3.66%] 改善至 3.70%，反映審慎的定價策略以及資產與負債組合的有利變化。

Interest income increased by $926,000 from the previous quarter, mainly due to a 4% increase in the average balance of loans. The increase in interest income was augmented by [66,000] decrease in interest expense due to a 10 basis point decline in the average cost of deposits.

利息收入較前一季增加 92.6 萬美元，主要因貸款平均餘額增加 4%。由於存款平均成本下降 10 個基點，利息費用減少 [6.6 萬美元]，進一步推升利息收入增加的效果。

While the average balance of deposits increased by 5% during the quarter, a 5% increase in the average balance of non-interest-bearing deposits combined with a decrease in the cost associated with deposits, resulted in a net decrease in total interest expense.

儘管本季存款平均餘額增加 5%，但不計息存款平均餘額增加 5%，再加上存款相關成本下降，使得利息費用總額淨額下降。

Non-interest income increased to $1.6 million in the first quarter from $1.4 million in the previous quarter. Primarily due to an increase in fees from swap referrals and a special FHLB stock dividend recognized during the three months ended March 31, 2026, partially by an overall decline in earnings related to investments and venture-backed funds.

第一季非利息收入由前一季的140萬美元增加至160萬美元。主要由於交換（swap）轉介手續費增加，以及截至2026年3月31日止三個月內認列一筆FHLB股票特別股利；但部分被與投資及創投支持基金相關的整體收益下滑所抵銷。

Non-interest expense decreased by $263,000 in the three months ended March 31, 2026. This is primarily due to the release of a $1 million loss contingency on an SBA loan that did not occur during the prior quarter.

截至2026年3月31日止三個月，非利息費用減少26.3萬美元。主要原因是釋放了一筆100萬美元的SBA貸款損失或有事項準備，而前一季並未發生此情況。

This was partially offset by an increase in salaries and employee benefits related to increased head count to support customer-facing and back-office operations. Our efficiency ratio improved to 38.57% from [40.62%] in the prior quarter, primarily driven by the release of the loss contingency.

但部分被薪資與員工福利增加所抵銷，該增加與為支援面向客戶及後勤營運而提高人力編制有關。我們的效率比率由前一季的[40.62%]改善至38.57%，主要受惠於釋放該損失或有事項準備。

The provision for income taxes for the quarter ended March 31, 2026, increased by $1 million as compared to the prior year primarily due to an increase in taxable income recognized and a net reduction in transferable tax credits recognized during the quarter of approximately $664,000.

截至2026年3月31日止季度，所得稅費用較去年同期增加100萬美元，主要由於認列的應稅所得增加，以及本季認列之可轉讓稅額抵免淨額約減少66.4萬美元。

And now I will hand it back to James for closing remarks.

現在我把時間交還給James作結語。

Thank you, Heather. Five Star Bank's success serves a strong testimony to clients who value our team of committed professionals who provide authentic relationship-based service. We continue to ensure our technology stack, operating efficiencies, conservative underwriting practices, exceptional credit quality and prudent approach to portfolio management will benefit our customers, employees, community and shareholders.

謝謝你，Heather。Five Star Bank的成功，充分證明了重視我們團隊的客戶之選擇；我們的專業人士盡心投入，提供真誠、以關係為本的服務。我們將持續確保我們的技術架構、營運效率、保守的授信承作標準、卓越的資產品質，以及審慎的投資組合管理方式，能為客戶、員工、社區與股東帶來效益。

As we look to Q2, we remain committed to our disciplined approach to growth, prudent risk management and delivering value to all of our stakeholders. We're excited about the opportunities our markets and confident of our ability to continually executing on our strategic priorities. Our focus will remain on expanding our presence in key geographies, deepening client relationships and investing in technology and talent to support our long-term success.

展望第二季，我們仍將致力於以紀律推動成長、審慎風險管理，並為所有利害關係人創造價值。我們對市場帶來的機會感到振奮，並有信心持續落實我們的策略重點。我們將持續聚焦於擴大在關鍵地區的布局、深化客戶關係，並投資於科技與人才，以支持我們的長期成功。

We appreciate your time today. This concludes today's presentation. Now we will be happy to take any questions you might have.

感謝各位今天撥冗參與。今天的簡報到此結束。接下來我們很樂意回答各位的提問。

(Operator Instructions) Evan Kwiatkowski, Raymond James.

(接線員指示) Evan Kwiatkowski，Raymond James。

This is Evan on for David Feaster. I just wanted to start on the SoCal expansion announced earlier. I know it's early innings, but on a high level, I'm just curious what you're most excited about for that market and how the team down there has been ramping up so far. I also wanted to just gauge your thoughts on potential de novo expansion in Southern California alongside those hires and how you see that market evolving broadly?

我是Evan，代替David Feaster。我想先從先前宣布的南加州（SoCal）擴張談起。我知道現在還在初期階段，但從整體來看，我想了解你們對該市場最感到興奮的是什麼，以及那邊的團隊目前的推進情況如何。我也想請教你們對於在南加州隨著這些招募同步進行de novo（新設據點）擴張的可能性有何看法，以及你們如何看待該市場的整體演變？

Well, thank you for the question. We're very excited about the team that we brought on. We have four business development officers and two support staff. They're very confident. And so far, deal flow seems to be very, very strong from them.

好的，謝謝你的提問。我們對新加入的團隊感到非常興奮。我們有四位業務開發主管以及兩位支援人員。他們非常有信心。到目前為止，他們帶來的案源（deal flow）看起來非常、非常強勁。

And it's a lot of fun for us engaging with them in a market which is just substantial. Much bigger market than Northern California, as you know. And so the deal flow that we're seeing right now are just rate credits, C&I-based and we're excited about the opportunities that the team is presenting us.

而且我們與他們在一個規模相當可觀的市場互動，對我們而言也很有趣。如你所知，這個市場比北加州大得多。因此，我們目前看到的案源主要是利率型授信、以商業與工業（C&I）為基礎的業務，我們對團隊帶來的機會感到振奮。

In terms of de novo operations or potentials, we have a team in Newport Beach right now, and then we have a team up in L.A. County, Ventura County. As they continue to mature and develop, the next step for us would be to open a full-service office in those localities. But we want to see a substantial growth coming from those teams, and it will help us get to where we want to be, ultimately, which is to have full service offices.

就de novo營運或潛在規劃而言，我們目前在Newport Beach有一個團隊，另外在洛杉磯郡與Ventura郡也有團隊。隨著他們持續成熟與發展，我們的下一步將是在這些地區設立提供全方位服務的據點。但我們希望先看到這些團隊帶來顯著成長，這將協助我們最終達成目標，也就是設立全方位服務的辦公據點。

That's really helpful. I'm excited to see how that develops. And then maybe sticking on the growth side, originations were really strong during the quarter. I'm just curious where that's coming from broadly.

這很有幫助。我也很期待看到後續發展。接著或許回到成長面，本季承作（originations）非常強勁。我想了解整體而言這主要是來自哪裡？

Is it more a function of increasing demand in your markets or increasing contribution from existing bankers or new hires? And then maybe just curious where you're seeing the most opportunity for growth within specific segments as well?

這比較是你們市場需求增加的結果，還是既有銀行人員或新招募人員貢獻提升所致？另外也想請教，在特定業務區隔中，你們認為哪裡有最多的成長機會？

Well, it's coming from a lot of different places. Our existing business development people. We now have 46 of them working for the company. But during the quarter, it was 42. And everybody is producing everybody is doing quite well and across our verticals that we have and also our geographies.

嗯，來源很多元。包括我們既有的業務開發人員。我們現在共有46位在公司任職。但在本季期間是42位。每個人都有產出、表現都相當不錯，涵蓋我們的各個垂直領域以及各個地理區域。

So we're seeing substantial growth coming from, all the way up into reading all the way down to Walnut Creek in the Bay Area, and our ag team also is doing quite well. So we're -- we're hitting on a lot of cylinders right now in terms of deal flow and really good relationships that our seasoned professionals are bringing in.

因此我們看到顯著成長，從北邊一路到Redding、再一路到灣區的Walnut Creek；我們的農業（ag）團隊表現也相當好。所以就案源而言，我們目前多個面向同時發力，且資深專業人士帶來了非常好的客戶關係。

So I couldn't really single out one, but maybe on the depository side, our government book has done quite well on some relationships, growth in relationships. We're excited about that. So in our manufacturing home and RV folks are doing well also. But it's coming from a lot of different sources, which we're all very, very excited about.

因此我很難只點出單一來源；但若以存款端來看，我們的政府存款組合在一些關係戶上表現很好，關係成長也不錯。我們對此感到振奮。另外，我們的製造業、預鑄屋（manufactured home）與RV（休旅車）相關客群也表現良好。但整體而言，成長來自許多不同來源，這讓我們都非常、非常興奮。

That's great to hear. And then maybe on the deposit side. It was good to see the growth during the quarter, which allowed you to pay down some wholesale funding. I'm just curious what was primarily driving that? And if you see any opportunities for additional funding cost leverage from here, especially given the prospect of rate -- no Fed cuts this year?

很高興聽到這些。接著談談存款端。本季看到存款成長，讓你們得以償還部分批發資金。我想了解主要驅動因素是什麼？另外，從現在起你們是否看到進一步降低資金成本、取得槓桿的機會，尤其在今年可能不會有聯準會降息的情況下？

Right. We're going to continue to focus on reducing our wholesale deposit book with the desire to be out of it by 12/31, hopefully, we'll be able to do that more quickly. That's our plan. So that will provide maybe some relief in our interest cost. And it's really -- it's really going to be dependent upon continuing to push deposits.

是的。我們將持續聚焦於降低批發存款部位，目標是希望在12/31前退出，當然也希望能更快達成。這是我們的計畫。因此這可能會在利息成本上帶來一些緩解。而這真的將取決於我們能否持續推動存款成長。

I mean the value of our franchise, we recognize is a deposit base. And we're executing quite well on that in terms of bringing on new relationships, non-interest-bearing deposits saw a substantial growth in Q1. And so we hope to expect -- we hope and expect to see that growth continue. As I mentioned previously, our government banking team has done quite well. That team really covers the entire state and their focus is on cities and counties.

我們認為本行特許經營價值的核心在於存款基礎。而我們在這方面執行得相當不錯，透過引進新往來關係，第一季的無息存款出現顯著成長。因此我們希望並預期這樣的成長能持續。如我先前提到，我們的政府金融團隊表現相當好。該團隊涵蓋全州，其重點客群是各城市與郡。

But moreover, their focus is really on special districts, and they've done quite well in that space and their pipelines remain very strong. So we're excited about that.

但更重要的是，他們的重點其實在於特殊目的區（special districts），而他們在該領域表現非常出色，且案源管線仍然非常強勁。因此我們對此感到振奮。

Woody Lay, KBW.

Woody Lay，KBW。

I had a follow-up on deposits. The focus is continuing to pay down wholesale deposits. But if I look over the past year, I mean, it's pretty incredible, the mix change that's undergone there.

我想就存款再追問一下。目前的重點是持續償還批發存款。但如果我回顧過去一年，我是說，那裡所經歷的組合變化相當驚人。

And I was just curious, is that being driven by some of these sub-verticals that's allowed you to grow? Core deposits, is it new customers to the bank? Is it expanding the wallet of current customers? Just would love your take on that.

我只是好奇，這是否是由某些子垂直領域所帶動，讓你們得以成長？核心存款方面，是來自銀行的新客戶嗎？還是擴大現有客戶在你們這裡的錢包份額？很想聽聽你們的看法。

Well, it's a great mix between deposit flow from existing customers, but also new relationships that we brought on. Often, a deposit relationship or any banking relationship takes a while to mature. And we're seeing some growth coming from the business that we put on in 2025 as those relationships work their way over to us, Woody. And so that's exciting.

嗯，這是既有客戶的存款流入與我們新建立的往來關係之間非常好的組合。通常，存款關係或任何銀行往來關係都需要一段時間才能成熟。我們也看到，2025年我們承作的業務，隨著這些關係逐步轉移到我們這邊，正在帶來一些成長，Woody。所以這很令人振奮。

But also, our first three months have been very strong in terms of new deposit growth in terms of new accounts. So we're excited about that. And again, it's really -- our government book has done quite well, but it's really our growth in deposits is coming from all different types of verticals.

另外，就新增帳戶帶來的新存款成長而言，我們前三個月表現非常強勁。所以我們對此感到興奮。再者，確實——我們的政府業務組合表現相當不錯，但我們的存款成長其實來自各種不同類型的垂直領域。

And it is -- it's very -- what we're trying to do is pay down our wholesale book. I mean it's pretty evident what we've been able to do for the last six months with that. And hopefully, we added broker deposits, as I mentioned, by 12/31. And we certainly like to do that more quickly than by the end of the year the second quarter goes.

而且——我們正在做的，是償還我們的批發存款組合。過去六個月我們在這方面能做到的成果已經很明顯。如我提到的，我們希望在12/31之前增加經紀存款。而且我們當然希望能比年底更快做到，隨著第二季推進。

Yes. I appreciate the color there. And I would imagine paying down the broker has been a positive to the net interest margin, and we saw the NIM take another step up in the first quarter. How are you all thinking about continued NIM expansion from here, especially if assume cuts are flat and then the incremental impact that rate cuts could provide?

是的。感謝你提供這些細節。我想償還經紀存款應該對淨利息收益率（NIM）是正面的，而我們也看到第一季NIM又往上走了一步。你們如何看待接下來NIM持續擴張的可能性，特別是在假設降息維持不變，以及降息可能帶來的邊際影響之下？

Yes. We don't know how much juice is left in our -- in terms of the impact of rates have on our NIM. We're thinking it's settling around -- in around $3.70, which what it was for the quarter. But we do expect increase in net interest income to come from growth and so that's what our sense of it is right now.

是的。我們不確定利率對我們NIM的影響還剩多少「空間」。我們認為它大致會穩定在約3.70左右，也就是本季的水準。但我們確實預期淨利息收入的增加將來自成長，所以這是我們目前的看法。

NIM, it might move up a couple of basis points, but nothing substantial like we've seen for the last four quarters. So we're settling in on this NIM range of $3.70 to $3.75. Hopefully, we can maintain it there and just have net interest income being driven by growth.

NIM可能會再上升幾個基點，但不會像過去四個季度那樣有顯著變化。因此我們把NIM的區間定在3.70到3.75之間，希望能維持在這個水準，並讓淨利息收入由成長來驅動。

Yes. I appreciate the color. Maybe just last for me on the growth. Loan growth remains really strong. It feels like I have heard just an anecdotal commentary across the industry of have some increased competition, especially among the bigger banks. Are you seeing that within your footprint?

是的。感謝這些補充。我最後想問一下成長方面。貸款成長仍然非常強勁。我感覺在整個產業中聽到一些軼聞式的評論，說競爭有所加劇，尤其是在大型銀行之間。你們在自身的營運版圖內也有看到這種情況嗎？

Well, we've been doing this for quite some time, and competition is always present. And we've mentioned it in the script that competition is out there. And, yes, on good deals, people are fighting for them.

嗯，我們做這件事已經相當長一段時間了，競爭一直都存在。我們也在講稿中提到競爭確實在那裡。而且，是的，對於好的案子，大家都在搶。

And you got to be careful that your growth is spread out a bunch of -- among several relationships and your pricing is something that you can make money on. So we know it's going to be competitive for the best deals. And that's our mindset when we come to work every day.

你必須小心，確保你的成長分散在多個往來關係之間，而且你的定價要能賺錢。所以我們知道，最好的案子一定會競爭激烈。這就是我們每天上班時的心態。

And so we're winning our fair share. We're not winning everything, okay? If we were winning everything, maybe we're not pricing it right, but we are winning our fair share. And the function of our growth, what's really driving our growth. It's just the number of people we have, the boots on the ground, so to speak, Woody.

因此我們贏得了我們應得的那一份。我們不是什麼都贏，好嗎？如果我們什麼都贏，可能代表我們定價不對，但我們確實贏得了我們應得的份額。而我們成長的功能、真正驅動我們成長的因素，其實就是我們的人數，用俗話說，就是前線的人力，Woody。

Relative to our size in total headcount, we just have more people, more biz-dev people. So the opportunities that are coming to us are really being driven by more than anything else, just by the number of folks we have in the space.

相對於我們的規模與總人頭數，我們就是有更多人、更多業務開發人員。所以流向我們的機會，最主要的驅動因素其實就是我們在這個市場裡的人數。

Andrew Terrell, Stephens.

Andrew Terrell，Stephens。

Wanted to stick on maybe margin and deposits for a bit. Do you have how much of the deposit growth this quarter was related to the government or the special district business line? And I would love to get a sense for where you're bringing on cost-wise, the incremental dollar of core deposits versus what's rolling off that we can see on the wholesale side pricing wise?

我想再多停留在利差與存款這塊一會兒。你們是否有數據顯示，本季存款成長中有多少與政府或特殊區（special district）業務線相關？另外我也想了解一下，在成本面，你們新增的每一美元核心存款的成本，與我們在批發端看到的到期流失（rolling off）的資金在定價上相比，大概是什麼差異？

Sure. The growth in our government book in the first quarter was quite substantial, as I mentioned, it's about $190 million. So it's really really drove what we're -- the overall increases in deposits. But other verticals did also quite well, but that one stands out. Now that money that came in is really priced right on top of our broker deposit book.

當然。如我提到的，我們第一季政府業務組合的成長相當可觀，大約是1.90億美元。所以它確實、確實帶動了我們——整體存款的增加。不過其他垂直領域也表現不錯，但這一項特別突出。而這筆進來的資金，其定價基本上就落在我們經紀存款組合的水準之上。

So there's no really incremental pickup, if you will, Andrew, in terms of cost reduction, if you will, with that money coming in versus having the broker deposits go away. So we're -- that's -- for some of these counties, that's their liquidity, and we hope to bring on some non-interest-bearing deposits through that process with those through those relationships. And we have, but a lot of that growth is really coming right at the margin.

所以嚴格來說，Andrew，這筆資金進來相較於經紀存款退出，並沒有帶來額外的成本下降空間（如果你要這麼說的話）。因此我們——對某些郡來說，那是他們的流動性，我們希望透過這些往來關係在過程中帶進一些無息存款。我們也確實有做到，但這些成長有很大一部分其實是貼著利差邊緣進來的。

And just for reference, just to compare the two. So our brokered book at the end of the quarter was sitting at about [$3.82] for the actual brokered deposits. And then the late freight is about the [$3.80] range. So we're pretty much just swapping dollar for dollar.

再提供一個參考，方便比較兩者。我們季末的經紀存款組合，實際經紀存款利率大約在[$3.82]。而較晚進來的那部分大約在[$3.80]區間。所以我們幾乎就是一美元換一美元地替換。

Yes. Okay. Makes sense. And then on the non-interest-bearing deposits, obviously, fantastic growth this quarter. Was there anything in the end-of-period figure for non-interest-bearing that we can see, I think it was [$1.23 billion] anything that was elevated, specifically a period end that's normalized in the second quarter so far? Is that a good base to work off of just asking because it's a lot higher than the average.

是的。好的。明白。另外，無息存款本季顯然成長非常亮眼。在期末的無息存款數字（我記得是[$1.23 billion]）裡，有沒有什麼在期末特別偏高、而在第二季到目前為止已經正常化的因素？我之所以問，是因為它比平均值高很多；這是否是一個可以作為基礎的良好水準？

Yes. A couple of things really drove non-interest-bearing deposits. One, we do have a title company that's doing quite well, pretty big relationship. But also with some of our folks in our Newport Beach office, they're bringing on their customer base, which is escrow companies, and all those monies are non-interest-bearing.

是的。有幾個因素確實推動了無息存款。第一，我們有一家產權公司（title company）表現相當好，是一個規模很大的往來關係。另外，我們Newport Beach辦公室的一些同仁也在導入他們的客戶群，也就是代管（escrow）公司，而這些資金全部都是無息的。

So we expect to continue to see growth with our -- in our Newport Beach office from those two folks that we brought on. So I think in combination of that and then also all the other C&I business that we've been doing up and down the platform and really drove non-interest-bearing deposits. But I think those two matters stand out.

因此，我們預期我們在新港灘辦公室，會因為我們新加入的那兩位同仁而持續看到成長。所以我認為，結合這一點，以及我們在整個平台上下所做的其他所有 C&I 業務，確實帶動了無息存款。但我認為這兩件事最為突出。

Yes. Okay. And I've got to ask, I think last quarter, we talked about 10% growth for the year on both sides of the balance sheet. You're pretty darn close to the deposit side already. Any updated expectations on pace of balance sheet growth or targets for the year?

是的。好的。我得再問一下，我記得上季我們談到今年資產負債表兩端都要成長 10%。你們在存款端已經非常接近了。對於資產負債表成長速度或今年目標，有沒有更新的預期？

Yes. I think we guided pretty consistent with what we planned. Our plan is, and -- but obviously, we exceeded that, which is a good thing. So we could probably see maybe 10% to 12% growth on both sides of the balance sheet, Andrew for the remainder of the year, but we'll just have to see how it goes. We're excited.

是的。我認為我們的指引與原先規劃相當一致。我們的計畫是——但顯然我們超過了，這是好事。所以在今年剩餘期間，Andrew，我們可能會看到資產負債表兩端都有約 10% 到 12% 的成長，但還是得看後續發展。我們很興奮。

Our pipelines are pretty robust right now, frankly. And with the bringing on in this new team in Southern California, we expect to really drive growth on both sides, both deposits and loans. And their book and their client base and prospect base is really very strong C&I operating companies, which will bring in some nice non-interest-bearing deposits. So I think that's where we are right now on that 10% to 12% growth, Andrew.

坦白說，我們目前的案源管線相當強勁。而且隨著我們在南加州引進這支新團隊，我們預期能在兩端都帶動成長，包含存款與放款。他們的業務組合、客戶基礎與潛在客戶基礎，都是非常強的 C&I 營運型公司，將帶來一些不錯的無息存款。所以我認為，目前我們對 10% 到 12% 成長的看法就是如此，Andrew。

Yes. Okay. And if I could just ask one last one. If I normalize the expense base, it looks like [18] or so for the quarter, just a bit of thoughts on expense run rate going forward?

是的。好的。如果我可以再問最後一個。如果我把費用基礎正常化，看起來本季大約是 [18] 左右；想請教一下對未來費用運行率的看法？

Yes. I think you could probably add to the normalized, like add back $1 million to adjust for that release of the accrual. But if you add about [0.5 million] to that, we're still consistently fallen in that $148 million to $155 million range. And I think we'll stick to that probably for the next quarter or two.

是的。我認為你大概可以在正常化的基礎上，加回 100 萬美元，以調整那筆應計負債的回轉。但如果你再加上大約 [50 萬]，我們仍然會穩定落在 1.48 億到 1.55 億美元的區間。而且我認為接下來一到兩季我們大概會維持在這個範圍。

Gary Tenner, D.A. Davidson.

Gary Tenner，D.A. Davidson。

I just wanted to ask a follow-up, James, to your comments just a moment ago on the Newport office and bringing escrow comping deposits. Does any of that start leaning into deposits that start showing up on the expense line from any earnings credit or is there anything like that? Or are these pure non-interest-bearing deposits?

James，我想就你剛才對新港灘辦公室以及帶來代管（escrow）補償性存款的評論追問一下。其中是否有任何部分開始偏向那種會因為任何 earnings credit 而在費用項下反映的存款，或有類似情況嗎？還是這些都是純粹的無息存款？

No. I mean, you've got to -- the earnings credits are pretty robust in its space, and we -- we're not doing anything in terms of earnings credit rate for those new customers, anything outside of what the market rates are. But there will be some expense associated with that. based upon those earnings credits. So we fully expect that and have planned for it. So it's not -- it has a cost, to your point, Gary.

不是。我的意思是，你得——在這個領域，earnings credit 相當普遍，而我們——我們對這些新客戶在 earnings credit rate 方面不會做任何超出市場水準的安排。但會有一些費用，會依據這些 earnings credits 而產生。所以我們完全預期如此，也已經納入規劃。所以它不是——如你所說，它是有成本的，Gary。

All right. And then also a follow-up, I guess, on the expenses in general. I mean you've been -- year-over-year expense is up about 20% first quarter to first quarter adjusted for that $1 million SBA liability. Obviously, you're built for growth. Is the pace of investment changing at all on the next 12 months versus the last 12 months in terms of hires, et cetera? Just thinking about it from a different angle, then maybe the last question.

好的。另外我想再追問一下整體費用。我的意思是，若調整那 100 萬美元的 SBA 負債，第一季對第一季的年增費用大約上升 20%。顯然你們是為成長而建置。未來 12 個月相較於過去 12 個月，在招募等投資節奏上有任何改變嗎？只是想從不同角度思考，跟上一題可能不太一樣。

It's -- we're investing in the business. And we announced this month that we are bringing on. I guess the announcement was five people, but we're actually bringing on six. So that's a substantial cost. These folks aren't cheap.

我們——正在投資這項業務。而且我們本月宣布我們將加入——我想公告是五位，但其實我們會加入六位。所以那是一筆相當可觀的成本。這些人不便宜。

And we'll continue to invest back in the business because take the Bay Area for Gary, we're desirous of being in the South Bay from Palo Alto all the way down to San Jose. So we're obviously looking at opportunities there. So we're going to continue to invest. And your question is, is the pace going to be consistent with what it's been in the past. And the answer, I think, is yes.

而且我們會持續把資金再投入業務，因為以灣區為例，Gary，我們希望能進入南灣，從帕羅奧圖一路到聖荷西。所以我們顯然在那裡尋找機會。因此我們會持續投資。而你的問題是，投資節奏是否會與過去一致。我認為答案是會的。

Yes. I think we're following -- what really worked well in the Bay is hiring smaller teams of people and smaller tranches of people and we're starting to do that in Southern California as well.

是的。我認為我們在灣區採取的——真正奏效的方法，是聘用較小的團隊、較小批次的人員，而我們也開始在南加州這麼做。

That's worked really well for us, too, to integrate them into the company. And so I think you're going to just have some stair-stepping and we'll have some reset each quarter on what our new expectation for expenses are. But that likely will happen over the next year or two.

這對我們來說也非常有效，有助於把他們整合進公司。所以我認為你會看到一些階梯式的變化，而我們每一季都會重新設定對費用的新預期。但這種情況很可能會在接下來一到兩年發生。

Yes.

是的。

Yes. I mean you clearly developed a playbook that works for moving to new markets. So I appreciate the thoughts on that.

是的。我的意思是，你們顯然已經建立了一套在進入新市場時行之有效的作戰手冊。所以我很感謝你們對此的分享。

(Operator Instructions) I'm showing no further questions. This concludes our question-and-answer session. I would like to turn the conference back over to management for any closing remarks.

(接線員指示) 我這邊顯示沒有其他提問。問答環節到此結束。我想把電話會議交回管理層作結語。

Thank you. I want to reiterate our appreciation for the trust and support of our shareholders, clients and employees. The results we shared today are a direct reflection of the dedication and hard work of our entire Five Star Bank team as well as the enduring relationships we have built with our customers and communities.

謝謝。我想再次重申，我們感謝股東、客戶與員工對我們的信任與支持。我們今天分享的成果，直接反映了我們整個 Five Star Bank 團隊的投入與辛勤努力，以及我們與客戶與社區所建立的長久關係。

It's our privilege to continue to be a driving force of economic development, a trusted resource for our clients and a committed advocate for our communities. We look forward to speaking with you again in July to discuss earnings for Q2. Have a great day, and thank you for listening.

我們很榮幸能持續成為經濟發展的推動力量、成為客戶可信賴的資源，並成為社區堅定的倡議者。我們期待在 7 月再次與各位交流，討論第二季（Q2）盈餘。祝各位有美好的一天，感謝收聽。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

本次電話會議到此結束。感謝各位參加今天的簡報。您現在可以掛線。