FS Bancorp, Inc. Reports Net Income for the Third Quarter of $12.7 Million or $2.94 Per Diluted Share, and Thirty-First Consecutive Quarterly Dividend

MOUNTLAKE TERRACE, Wash., Oct. 26, 2020 (GLOBE NEWSWIRE) -- FS Bancorp, Inc. (NASDAQ:FSBW)  (the “Company”), the holding company for 1st Security Bank of Washington (the “Bank”) today reported 2020 third quarter net income of $12.7 million, or $2.94 per diluted share, compared to $7.1 million, or $1.58 per diluted share for the same period last year.

“Operating within the backdrop of the global COVID-19 pandemic, we focused on our established community banking business plan to achieve robust loan growth and strong profitability,” stated Joe Adams, CEO. “We are also pleased to announce that our Board of Directors has approved our thirty-first consecutive quarterly cash dividend. The quarterly dividend of $0.21 will be paid on November 19, 2020, to shareholders of record as of November 6, 2020.”

Updated response to the novel coronavirus of 2019 (“COVID-19”) pandemic: 

The Company is following the Federal Housing Finance Agency guidelines for forbearance, foreclosure relief, and late payment reporting for the COVID-19 pandemic on all serviced loans and a modified format for portfolio loans.  For portfolio loans, the primary method of relief is to allow the borrower up to 90-days of interest only payments and/or loan payment deferments, and, on a more limited basis, waived interest, late fees, or interest only loan payments and suspended foreclosure proceedings. As of September 30, 2020, the amount of portfolio loans remaining under payment/relief agreements includes commercial real estate loans of $23.8 million, commercial business loans of $7.6 million, portfolio one-to-four-family loans of $3.3 million, and consumer loans of $280,000. Additional detail is provided below in the “Credit Quality” discussion.

The Company participated in the U.S. Small Business Administration’s (“SBA”) Paycheck Protection Program (“PPP”) through its conclusion on August 8, 2020. For borrowers in the communities we serve, the Company has funded 471 PPP loans totaling $74.1 million as of September 30, 2020.

All of our branches are open and we continue to remain flexible as to branch operations based on the guidance provided for the communities in which we operate. The majority of our employees continue to work remotely, where feasible.

2020 Third Quarter Highlights

• Net income was $12.7 million for the third quarter of 2020, compared to $10.0 million in the previous quarter, and $7.1 million for the same quarter one year ago;
  
  
• In response to the COVID-19 pandemic and its continued adverse economic impact and due to additional loan growth, the provision for loan losses was $3.1 million this quarter and $4.6 million in the previous quarter, compared to $573,000 for the same quarter one year ago;
  
  
• Total gross loans increased $50.5 million during the quarter to $1.52 billion at September 30, 2020, compared to $1.47 billion at June 30, 2020, and $1.33 billion at September 30, 2019;
  
  
• The allowance for loan and lease losses (“ALLL”) to gross loans receivable (excluding loans held for sale (“HFS”)) for the third quarter of 2020 was 1.63%, up from 1.47% in the previous quarter and 0.96% for the same quarter one year ago. The  adjusted ALLL to gross loans receivable, excluding loans HFS and PPP loans, was 1.72% (See “Non-GAAP Financial Measures”);
  
  
• The Company closed a record $589.9 million of one-to-four family loans in the third quarter, an increase of $111.5 million from the second quarter and $301.0 million from the third quarter of 2019;
  
  
• Total deposits increased $6.3 million during the quarter, including an increase of $20.7 million in relationship-based transactional deposits (noninterest-bearing checking, interest-bearing checking, and escrow accounts), partially offset by a reduction of $21.9 million in wholesale deposits; and
  
  
• Our Board of Directors approved a share repurchase plan which includes up to $5.0 million of shares to be repurchased over the next 12 months, depending on market conditions and other factors including the Company’s liquidity requirements. The Company repurchased 11,010 shares of its common stock during the quarter ended September 30, 2020, at an average price per share of $40.61.

Asset Summary

Total assets increased $45.9 million, or 2.3%, to $2.05 billion at September 30, 2020, compared to $2.01 billion at June 30, 2020, and increased $359.6 million, or 21.2%, from $1.69 billion at September 30, 2019.  The quarter over linked quarter increase in total assets was primarily due to increases in loans HFS of $75.7 million, loans receivable, net of $47.1 million, other assets of $6.3 million, securities held-to-maturity of $5.5 million, securities available-for-sale of $4.4 million, and servicing rights of $1.1 million, partially offset by a decrease in total cash and cash equivalents of $90.1 million, certificates of deposit (“CDs”) at other financial institutions of $3.7 million, and Federal Home Loan Bank (“FHLB”) stock of $1.1 million. Year over year increases in total assets included increases in loans receivable, net of $180.2 million, loans HFS of $134.5 million, securities available-for-sale of $67.1 million, other assets of $9.6 million, and securities held-to-maturity of $5.5 million, partially offset by decreases in total cash and cash equivalents of $26.8 million and CDs at other financial institutions of $10.0 million.

(Dollars in thousands)

September 30, 2020

June 30, 2020

September 30, 2019

FS Bancorp, Inc. NASDAQ:FSBW FSBW Rankings #3574 Ranked by Market Cap #1092 Ranked by Dividends FSBW Latest News Apr 24, 2024 FS Bancorp, Inc. Reports First Quarter Net Income of $8.4 Million or $1.06 Per Diluted Share and Its Board of Directors Declares Forty-Fifth Consecutive Quarterly Dividend Jan 24, 2024 FS Bancorp, Inc. Reports $36.1 Million of Net Income or $4.56 Per Diluted Share for 2023 and a 4% Increase in its Quarterly Dividend to $0.26 Per Share Dec 18, 2023 1st Security Bank Appoints Dan Icasiano to the Position of SVP, Director of Treasury Management Nov 22, 2023 1st Security Bank Announces the Promotion of Sean McCormick to SVP, Director of Credit Administration Oct 25, 2023 FS Bancorp, Inc. Reports Third Quarter Net Income of $9.0 Million or $1.13 Per Diluted Share and the Forty-Third Consecutive Quarterly Dividend FSBW Stock Data Market Cap 260.95M Float 6.47M Insiders Ownership 14.74% Institutions Ownership 64.92% Short Percent 0.64% Industry Savings Institutions Sector Finance and Insurance Website Link Country United States of America City MOUNTLAKE TERRACE About FSBW headquartered in mountlake terrace, washington, 1st security bank has been serving customers in king, kitsap, pierce and snohomish counties since 1936. with our seven neighborhood branches, we believe that bigger is not necessarily better. in fact, our strength comes from the relationships that we build with our customers, small businesses and community partners. additionally, 1st security operates lending programs for home buyers, local contractors, builders, mortgage companies and boat dealerships that help strengthen the communities in which we live and work. we aren't just open for business; we live here, which is why our branches are so involved with their communities. from sponsoring food drives to the annual poulsbo kids day celebration, everyone at 1st security lives our passion for being the bank that makes our customers say "wow". the northwest is a diverse, open and welcoming community with many cultures and backgrounds that we celebrate, truly believing that we are stron Explore About Rhea-AI Sitemap Legal Terms of Use Cookie Notice Privacy Policy Links RSS feed Patreon Discord Server Facebook Reddit © 2020-2024 StockTitan.net