- Key insight: Expanding its food and agribusiness segment is boosting Five Star Bank's balance sheet and strengthening its risk profile, according to an analyst who covers the company.
- Supporting data: There are more than 3,400 farms in San Joaquin County, where Lodi, the home of Five Star's newest branch, is located.
- Expert quote: "We've known these customers for so long. We may have been on the fringes with them. Now we're leading deals." —Cliff Cooper, president of the food agribusiness and diversified industries vertical at Five Star
Five Star Bancorp near Sacramento is preparing to open a branch in Lodi, an agricultural hub located in California's renowned wine country. The move comes 14 months after the $5 billion-asset bank hired veteran lender Cliff Cooper to lead an expanded food, agribusiness and diversified industries vertical, bucking banks' wider retreat from the agriculture sector.
In addition to grape-growing fame — Lodi markets itself as the "Zinfandel capital of the world" — the region is also known for almond, walnut and cherry production. San Joaquin County, which is home to Lodi and part of California's Central Valley, has more than 3,400 farms and nearly 900,000 planted acres, according to the county's most recent crop report.
"To have a foothold in the [Central] Valley is key," Cooper told American Banker. "We've known these customers for so long. We may have been on the fringes with them. Now we're leading deals."
Five Star's initiative in hiring Cooper and assembling what he referred to as a food and agribusiness "dream team" comes as many institutions have retreated from the space. Though bank lending to agricultural producers was up somewhat between 2022 and 2025, growing from $190 billion to $212 billion, according to the American Bankers Association, the number of farm banks has moved in the opposite direction, shrinking by 116 over the same three-year span.
"You don't really see banks like Five Star getting into agriculture," said Tim Coffey, who covers the Rancho Cordova, California-based bank for Brean Capital. "Farm Credit lenders dominate the market in California."
Cooper, who has spent most of his three-decade career as a food and agribusiness lender, acknowledged the sector's deeply cyclical nature, with borrowers' fortunes tied to weather and volatile commodities markets. At the same time, the loss of so many farm lenders has created an opportunity for a bank that is willing to brave the industry's ups and downs, Cooper said.
"You've got to be willing to ride the cycle and stick with your customers," he said. "We had an opportunity to put a team together with relationships, knowledge and deep sector experience. … What that's done is give us deep credibility in the market."
Coffey believes Five Star's farm banking push will serve to balance its strong commercial real estate operation.
"If all Five Star did was agriculture, I'd be concerned," Coffey said. "This actually improves their risk profile."
Five Star's bet on agriculture is beginning to show results on the balance sheet. Its loans to farmers jumped 84%, to $17.3 million, during the 12 months ending March 31. Meanwhile, commercial real estate loans secured by farmland increased 40% in the same period, to $61.1 million.
At least one other California community bank has reaped a benefit from its commitment to farm lending. The $627.8 million-asset Pacific Valley Bancorp in Salinas recently got a boost when Taylor Fresh Foods, one of its food-producer clients,
At Five Star, Cooper's team is active in production agriculture, farming and ranching, as well as food processing. Cooper said he has made nine hires, including bankers and support staff, "and it's going to be more."
"We're making a significant impact right now. We'll continue to do that," Cooper said.
Five Star, the holding company for Five Star Bank, has been in expansion mode since 2023, hiring banking teams and opening branches in
Five Star "is moving into some very strong commercial markets," Coffey said.
The bank expects to open its Lodi branch on July 13.
