FS Bancorp, Inc. Announces Completion of Acquisition of Pacific West Bancorp

Rhea-AI Summary

FS Bancorp (NASDAQ: FSBW) completed its previously announced acquisition of Pacific West Bancorp, effective August 19, 2026, and merged Pacific West Bank into 1st Security Bank of Washington. The transaction expands FS Bancorp’s banking footprint in Oregon while maintaining its relationship‑banking focus.

According to FS Bancorp, aggregate consideration totaled 430,176 shares of FS Bancorp common stock plus $16,832,742 in cash. Pacific West shareholders could elect stock or cash, subject to proration under the merger agreement. FS Bancorp continues to serve small- and middle‑market businesses and consumers across Washington and Oregon through branches and loan production offices.

Positive

• Acquisition of Pacific West Bancorp completed effective August 19, 2026, adding Oregon franchise
• Aggregate consideration structured as 430,176 FSBW shares plus $16,832,742 in cash
• Expanded Oregon presence through merger of Pacific West Bank into 1st Security Bank of Washington

Negative

• Cash consideration of $16,832,742 represents an immediate cash outlay for FS Bancorp
• 430,176 new shares of FS Bancorp common stock issued, creating shareholder dilution

Market Context

The prior acquisition announcement produced a -0.32% 24-hour reaction, supplying the closest acquisi...

Analysis

The prior acquisition announcement produced a -0.32% 24-hour reaction, supplying the closest acquisition-specific comparator. That record adds caution to the completion notice; integration execution and future transaction-related disclosures remain relevant watchpoints.

Key Figures

Effective date: August 19, 2026 Stock consideration: 430,176 shares Cash consideration: $16,832,742 +3 more

6 metrics

Effective date August 19, 2026 Acquisition completion

Stock consideration 430,176 shares Aggregate acquisition consideration

Cash consideration $16,832,742 Aggregate acquisition consideration

FS Bancorp branches 28 bank branches Company operating footprint

FS Bancorp operating history more than 100 years Company description

Pacific West operating history 20 years Chairman statement about Pacific West Bank

Previous Acquisition Reports

1 past event · Latest: Feb 25 (Positive)

Same Type Pattern 1 events

Date	Event	Sentiment	24h Move	Catalyst
Feb 25	Merger announcement	Positive	-0.3%	Stock-and-cash merger announcement was followed by a -0.32% 24-hour reaction.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

The prior acquisition announcement was followed by a -0.32% 24-hour reaction, diverging from the transaction's positive framing.

Key Terms

proration, merger agreement

2 terms

proration financial

"subject to proration as provided in the merger agreement"

Proration is the method of dividing a limited quantity—such as shares in an offering, dividends, or rights—among claimants when demand exceeds supply, so each participant receives a proportional slice rather than the full amount requested. It matters to investors because proration determines how many shares or what portion of a payout they actually receive, which affects portfolio size, cash needs, and the expected return; think of it as splitting a pie fairly when more people want a piece than there are slices.

merger agreement regulatory

"as provided in the merger agreement"

A merger agreement is a binding contract that lays out the exact terms for two companies to combine, including the price, what each side will deliver, and the conditions that must be met before the deal is completed. Investors care because it sets the timetable, payouts and risks — like a blueprint or prenup that shows whether the deal is likely to close, how ownership will change, and what could cancel or alter the payout they expect.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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MOUNTLAKE TERRACE, Wash., Aug. 20, 2026 (GLOBE NEWSWIRE) -- (NASDAQ : FSBW) FS Bancorp, Inc. (“FS Bancorp”), the parent company of 1st Security Bank of Washington, announced that effective August 19, 2026, it completed its previously announced acquisition of Pacific West Bancorp (“Pacific West”), an Oregon corporation and the merger of Pacific West Bank, the bank subsidiary of Pacific West, into 1st Security Bank of Washington.

Matthew D. Mullet, President and Chief Executive Officer of FS Bancorp and 1st Security Bank of Washington, stated, “We are excited to welcome Pacific West Bank's customers, employees, and communities to the 1st Security Bank family. Both organizations share a commitment to relationship banking, providing exceptional customer service, and supporting the local businesses and communities we serve. This allows us to expand our presence in Oregon while remaining focused on the values that have guided our success for more than 100 years. Our Vision Statement remains constant: To Build a Truly Great Place to Work and Bank."

Ed Kawasaki, Chairman of the Boards of Pacific West Bancorp and Pacific West Bank, stated, “On behalf of our Board and Banking Team, we wanted to extend our heartfelt thanks and appreciation to our customers and community for their support of our Bank, and furthermore, our confidence that the partnership with 1st Security Bank will continue serving you with the same values and conviction you’ve experienced over the past 20 years.”

In connection with the transaction the aggregate consideration consisted of 430,176 shares of FS Bancorp common stock and $16,832,742 in cash. Pacific West shareholders had the right to elect shares of FS Bancorp common stock or cash, subject to proration as provided in the merger agreement.

About FS Bancorp

FS Bancorp, Inc., a Washington corporation, is the holding company for 1st Security Bank of Washington. The Bank offers a range of loan and deposit services primarily to small- and middle-market businesses and individuals in Washington and Oregon. It operates through 28 bank branches, one headquarters office that provides loans and deposit services, and loan production offices in various suburban communities in the greater Puget Sound area, the Kennewick-Pasco-Richland metropolitan area of Washington, also known as the Tri-Cities, and in the greater Portland, Oregon market. Additionally, the Bank services home mortgage customers across the Northwest, focusing on markets in Washington State including the Puget Sound, Tri-Cities, and Vancouver.

Note Regarding Forward Looking Statements

This news release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which can be identified by words such as "may," "expected," "anticipate," "continue," or other comparable words. In addition, all statements other than statements of historical facts that address activities that FS Bancorp expects or anticipates will or may occur in the future are forward-looking statements. Readers are encouraged to read the Securities and Exchange Commission reports of FS Bancorp, Inc., particularly the Form S-4 and its Form 10-K for the year ended December 31, 2025, for meaningful cautionary language discussing why actual results may vary materially from those anticipated by management. Specific risks in this press release include among other things: the expected cost savings, synergies and other financial benefits from the merger with Pacific West might not be realized within the expected time frames or at all, and costs or difficulties relating to integration matters might be greater than expected.

Contacts:
Matthew D. Mullet,
President and Chief Executive Officer
Phillip D. Whittington,
Chief Financial Officer

(425) 771-5299
www.FSBWA.com

FAQ

What did FS Bancorp (NASDAQ: FSBW) announce on August 20, 2026?

FS Bancorp announced it completed acquiring Pacific West Bancorp, effective August 19, 2026. According to FS Bancorp, the deal also merged Pacific West Bank into 1st Security Bank of Washington, expanding its community banking operations while retaining a focus on relationship banking and customer service.

What were the financial terms of FS Bancorp’s acquisition of Pacific West Bancorp (FSBW)?

The purchase consideration was 430,176 FS Bancorp common shares plus $16,832,742 in cash. According to FS Bancorp, this stock-and-cash structure determined the total merger value, with shareholder elections subject to proration as detailed in the Pacific West Bancorp merger agreement.

What did Pacific West Bancorp shareholders receive in the FS Bancorp (FSBW) merger?

Pacific West shareholders were entitled to elect FS Bancorp common stock or cash, subject to proration. According to FS Bancorp, the overall consideration pool was 430,176 FSBW shares and $16,832,742 in cash, allocated among shareholders based on their individual elections and prorated limits.

How does the Pacific West Bancorp acquisition impact FS Bancorp’s presence in Oregon?

The acquisition expands FS Bancorp’s presence in Oregon by adding Pacific West Bank’s franchise. According to FS Bancorp, integrating Pacific West supports a shared commitment to local relationship banking and extends 1st Security Bank of Washington’s footprint in the greater Portland and broader Oregon markets.

What markets does FS Bancorp (FSBW) serve after acquiring Pacific West Bancorp?

FS Bancorp continues serving small- and middle-market businesses and individuals in Washington and Oregon. According to FS Bancorp, it operates branches and loan offices across Puget Sound, the Tri-Cities, and the greater Portland area, and services home mortgage customers throughout the broader Northwest region.

Which bank was merged into 1st Security Bank of Washington in the FS Bancorp (FSBW) deal?

Pacific West Bank, the banking subsidiary of Pacific West Bancorp, was merged into 1st Security Bank of Washington. According to FS Bancorp, this legal merger consolidates Pacific West’s operations under the 1st Security Bank brand while preserving a focus on community and relationship banking.