RANCHO CORDOVA, Calif. - Five Star Bancorp (NASDAQ:FSBC), a bank holding company, announced on Thursday the pricing of its public offering of 3,450,000 shares of common stock at $21.75 each. The company anticipates net proceeds of approximately $70.9 million after underwriting discounts and commissions but before offering expenses. Additionally, underwriters have a 30-day option to purchase up to 517,500 additional shares.
Keefe, Bruyette & Woods, a Stifel Company, is the bookrunner for the offering, with Stephens Inc. and D.A. Davidson & Co. serving as co-managers. The offering is expected to close around April 2, 2024, subject to customary closing conditions.
The proceeds from the offering are intended for general corporate purposes to support Five Star Bancorp's growth, including investments in its wholly owned subsidiary, Five Star Bank, to pursue growth opportunities and for working capital.
The offering is made under a registration statement declared effective by the Securities and Exchange Commission (SEC) on February 13, 2023. A preliminary prospectus supplement related to the offering has been filed with the SEC, and a final prospectus supplement and accompanying prospectus will be filed.
Five Star Bancorp, headquartered in Rancho Cordova, California, operates through Five Star Bank, which has seven branches in Northern California.
This article is based on a press release statement, and the information provided is subject to change based on factors that may be beyond the company's control.
InvestingPro Insights
Five Star Bancorp (NASDAQ:FSBC) has recently been in the spotlight due to its public offering announcement, but what does the financial data say about the company's performance and valuation? According to InvestingPro data, Five Star Bancorp has a market capitalization of $413.01 million and is trading at a P/E ratio of 8.44, which slightly adjusted to 8.65 for the last twelve months as of Q4 2023. While the company's revenue grew by 10.49% during the same period, it's worth noting that the quarterly revenue growth experienced a decline of -5.67% in Q4 2023.
InvestingPro Tips reveal that Five Star Bancorp has been successful in raising its dividend for three consecutive years, showcasing a commitment to returning value to shareholders. The dividend yield as of the latest data stands at 3.36%. However, it's essential to consider that analysts have revised their earnings expectations downwards for the upcoming period, and the company is trading at a high P/E ratio relative to its near-term earnings growth, with a PEG ratio of 1.33. Additionally, despite being profitable over the last twelve months, net income is expected to drop this year.
For those interested in a deeper dive into the financial metrics and future outlook of Five Star Bancorp, InvestingPro offers additional insights. There are more InvestingPro Tips available, which could provide further clarity on the investment potential of FSBC. To access these tips, visit https://www.investing.com/pro/FSBC and remember to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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