Larry Allbaugh, serving as both a director and a substantial 10% owner of Five Star Bancorp (NASDAQ:FSBC), has executed a significant acquisition of company equity. The transaction, finalized on July 22, 2026, involved the purchase of shares totaling $4,250,004. This acquisition consisted of 96,591 shares of common stock, all procured at a uniform price of $44 per share.
The purchases were facilitated indirectly through established trust structures. A portion of the acquisition, totaling 5,682 shares, was acquired via the Larry and Laura Allbaugh Living Trust. Mr. Allbaugh serves as the trustee for this entity. The remaining portion of the transaction, comprising 90,909 shares, was acquired through the Oates Administrative Trust, where Mr. Allbaugh also holds the position of trustee.
The timing of this substantial insider purchase appears strategic, occurring as Five Star Bancorp shares trade at $46.81. This price point represents a 64% gain over the past year. According to InvestingPro analysis, the stock remains undervalued relative to its Fair Value, suggesting Mr. Allbaugh may be capitalizing on an attractive entry point. The company maintains a "GOOD" financial health score of 2.82 and trades at a P/E ratio of 13.76 with a notably low PEG ratio of 0.36.
Following these transactions, Mr. Allbaugh’s indirect beneficial ownership includes 507,401 shares held by the Larry and Laura Allbaugh Living Trust. This figure includes 974 unvested shares from the Five Star Bancorp 2021 Equity Incentive Plan, scheduled to vest on December 31, 2026, provided Mr. Allbaugh remains a director.
Additionally, 1,101,687 shares are held by the Oates Administrative Trust. Mr. Allbaugh also serves as trustee for several other trusts holding shares: the QSST Subtrust of the Judy Oates-Holt Irrevocable Trust (260,695 shares), the QSST Subtrust of the Kathryn Oates-Fairrington Irrevocable Trust (410,695 shares), the QSST Subtrust of the Marvilyn E. Applegate Irrevocable Trust (410,695 shares), and the QSST Subtrust of the Philip D. Oates Irrevocable Trust (410,695 shares). For these specific trusts, Mr. Allbaugh disclaims beneficial ownership for Section 16 purposes, as he is not the beneficiary.
Furthermore, 10,000 shares are held by Buzz Oates LLC, where Mr. Allbaugh is a non-member manager, and another 10,000 shares by Buzz Oates Group of Companies, where he is a shareholder and Chief Executive Officer. Mr. Allbaugh disclaims beneficial ownership of the shares held by Buzz Oates LLC, and for Buzz Oates Group of Companies, he disclaims beneficial ownership except to the extent of his pecuniary interest therein.
In other recent news, Five Star Bancorp reported its second-quarter 2026 earnings, surpassing Wall Street expectations. The regional bank achieved earnings of $0.91 per share, exceeding the forecasted $0.85 per share. Additionally, Five Star Bancorp’s revenue rose to $47.95 million, slightly above the anticipated $47.42 million. Despite these positive results, investor focus appeared to shift towards concerns about margin pressure, increased costs, and an upcoming stock offering. These factors contributed to a decline in the company’s share price in after-hours trading. Analyst firms have not publicly updated their ratings in light of these developments. The earnings performance highlights ongoing challenges that the bank faces in managing operational costs and market perceptions. These recent developments provide investors with crucial insights into the financial health and strategic direction of Five Star Bancorp.