FS Bancorp, Inc. Reports Third Quarter Net Income of $9.2 Million or $1.18 Per Diluted Share and Declares 51st Consecutive Quarterly Cash Dividend
FS Bancorp (NASDAQ: FSBW) reported Q3 2025 net income of $9.2M or $1.18 per diluted share, down from $10.3M ($1.29) a year earlier, and YTD net income $24.9M or $3.18 per diluted share vs. $27.6M ($3.45) in 2024. The Board declared the 51st consecutive quarterly cash dividend of $0.28 per share payable Nov 20, 2025 (record Nov 6).
Key balance-sheet moves: total deposits rose to $2.69B (+5.2% QoQ, +10.7% YoY); loans receivable, net $2.60B (+0.7% QoQ, +5.5% YoY); borrowings fell 44.8% QoQ to $129.3M; book value per share increased to $40.43.
FS Bancorp (NASDAQ: FSBW) ha riportato un utile netto nel terzo trimestre 2025 di 9,2 milioni di dollari o 1,18 dollari per azione diluita, in diminuzione rispetto ai 10,3 milioni (1,29) dell"anno precedente, e utile netto YTD di 24,9 milioni di dollari o 3,18 dollari per azione diluita contro 27,6 milioni (3,45) nel 2024. Il consiglio ha dichiarato la 51ª trimestrale consecutiva di dividendo in contanti di 0,28 dollari per azione, pagabile il 20 novembre 2025 (registrazione 6 novembre).
Principali movimenti di bilancio: i depositi totali sono saliti a 2,69 miliardi di dollari (+5,2% QoQ, +10,7% YoY); crediti verso clienti, netti, 2,60 miliardi (+0,7% QoQ, +5,5% YoY); i borrowings sono scesi del 44,8% QoQ a 129,3 milioni; il valore contabile per azione è aumentato a 40,43.
FS Bancorp (NASDAQ: FSBW) informó un ingreso neto del 3T 2025 de 9,2 millones de dólares o 1,18 dólares por acción diluida, frente a 10,3 millones (1,29) hace un año, y ingreso neto YTD de 24,9 millones de dólares o 3,18 por acción diluida frente a 27,6 millones (3,45) en 2024. La Junta declaró el 51º dividendo trimestral en efectivo consecutivo de 0,28 dólares por acción, pagadero el 20 de noviembre de 2025 (registro 6 de noviembre).
Movimientos clave del balance: los depósitos totales aumentaron a 2,69 mil millones de dólares (+5,2% QoQ, +10,7% YoY); préstamos netos, 2,60 mil millones (+0,7% QoQ, +5,5% YoY); los endeudamientos cayeron 44,8% QoQ a 129,3 millones; el valor contable por acción aumentó a 40,43.
FS Bancorp (NASDAQ: FSBW)는 2025년 3분기 순이익이 920만 달러(희석 주당 이익 1.18달러)로 발표되었으며 전년 동기 1,030만 달러(1.29)에서 하락했고 연간 누적 순이익은 2490만 달러(희석 주당 3.18달러)로 2024년의 2760만 달러(3.45) 대비 감소했습니다. 이사회는 연속 51번째 분기 현금 배당 0.28달러를 선언했으며 2025년 11월 20일 지급 예정(기록일 11월 6일)입니다.
주요 대차대조표 움직임: 총 예금은 26억 9천만 달러로 증가(+QoQ 5.2%, +YoY 10.7%); 대출금은 순액 26억 0천만 달러(+QoQ 0.7%, +YoY 5.5%); 차입은 QoQ 대비 44.8% 감소하여 1억 2930만 달러; 주당 장부가치는 40.43달러로 증가했습니다.
FS Bancorp (NASDQ: FSBW) a annoncé un bénéfice net du T3 2025 de 9,2 M$, ou 1,18$ par action diluée, en baisse par rapport à 10,3 M$ (1,29$) l"an dernier, et un bénéfice net cumulé (YTD) de 24,9 M$ ou 3,18$ par action diluée vs 27,6 M$ (3,45) en 2024. Le Conseil a déclaré le 51e dividende trimestriel en espèces de 0,28$ par action, payable le 20 novembre 2025 (enregistrement le 6 novembre).
Principales évolutions du bilan: les dépôts totaux ont augmenté à 2,69 Md$ (+5,2% QoQ, +10,7% YoY); les prêts nets à 2,60 Md$ (+0,7% QoQ, +5,5% YoY); les emprunts ont diminué de 44,8% QoQ pour atteindre 129,3 M$; la valeur comptable par action a augmenté à 40,43$.
FS Bancorp (NASDAQ: FSBW) meldete Nettogewinn im Q3 2025 von 9,2 Mio. USD bzw. 1,18 USD je verwässertem Anteil, gegenüber 10,3 Mio. USD (1,29) im Vorjahr, und YTD Nettogewinn von 24,9 Mio. USD bzw. 3,18 USD je verwässertem Anteil gegenüber 27,6 Mio. USD (3,45) 2024. Der Vorstand erklärte die 51. aufeinanderfolgende vierteljährliche Bardividende von 0,28 USD je Aktie, zahlbar am 20. November 2025 (Record am 6. November).
Wichtige Bilanzbewegungen: Die Einlagen stiegen auf 2,69 Mrd. USD (+QoQ 5,2%, +YoY 10,7%); Forderungen aus Lieferungen, netto, 2,60 Mrd. USD (+0,7% QoQ, +5,5% YoY); Verbindlichkeiten sanken QoQ um 44,8% auf 129,3 Mio. USD; der Buchwert pro Aktie stieg auf 40,43 USD.
FS Bancorp (NASDAQ: FSBW) أبلغت عن صافي دخل للربع الثالث من 2025 قدره 9.2 مليون دولار أو 1.18 دولار للسهم المخفض، منخفضًا من 10.3 مليون دولار (1.29) قبل عام، وصافي دخل مُجمل للسنة حتى تاريخه 24.9 مليون دولار أو 3.18 دولار للسهم المخفض مقارنةً بـ 27.6 مليون دولار (3.45) في 2024. أعلنت مجلس الإدارة أكبر 51 ربحًا نقديًا ربعيًا متتابعًا قدره 0.28 دولار للسهم، ويُدفع في 20 نوفمبر 2025 (التسجيل في 6 نوفمبر).
تحركات ميزانية رئيسية: زادت الودائع الإجمالية إلى 2.69 مليار دولار (+5.2% ربع سنوي، +10.7% سنويًا); القروض المستلمة، صافيًا، 2.60 مليار دولار (+0.7% ربع سنوي، +5.5% سنويًا); انخفضت الاستدانة بنحو 44.8% ربع سنويًا إلى 129.3 مليون دولار؛ ارتفع القيمة الدفترية للسهم إلى 40.43 دولار.
FS Bancorp (NASDAQ: FSBW) 报告 2025 年第 3 季度净利润为 920 万美元，每稀释股收益为 1.18 美元，较去年同期的 1030 万美元（1.29 美元）下降；年度至今净利润为 2490 万美元，或每稀释股收益 3.18 美元，较 2024 年的 2760 万美元（3.45 美元）下降。董事会宣布连续第 51 个季度的现金分红 0.28 美元/股，于 2025 年 11 月 20 日支付（记录日为 11 月 6 日）。
关键资产负债表变动：总存款增加至 26.9 亿美元（QoQ 增长 5.2%，YoY 增长 10.7%）；应收贷款净额为 26.0 亿美元（QoQ 增长 0.7%，YoY 增长 5.5%）；借款较 QoQ 下降 44.8% 至 1.293 亿美元；每股账面价值上升至 40.43 美元。
- Total deposits +5.2% quarter to $2.69B
- Total deposits +10.7% year to $2.69B
- Loans receivable, net +5.5% year to $2.60B
- Book value per share +$0.88 quarter to $40.43
- Repurchased 134,413 shares at $41.15 average
- Q3 net income down to $9.2M from $10.3M year-ago
- Provision for credit losses rose to $2.309M in Q3 2025
- Consumer loans down 5.0% year to $600.8M
- Tier 1 leverage capital fell to 11.0% from 11.2% quarter
Insights
Quarterly results show mixed performance: QoQ improvement but YoY earnings decline; dividend maintained and balance sheet growth driven by deposits and commercial lending.
The company reported net income of
Key dependencies and risks include credit and funding composition: the increase in brokered CDs changes funding mix and may raise funding costs relative to core deposits; the loan mix shift toward speculative construction and C&I concentrates credit exposure in cyclical segments. Regulatory capital remains reported at
MOUNTLAKE TERRACE, Wash., Oct. 21, 2025 (GLOBE NEWSWIRE) -- FS Bancorp, Inc. (NASDAQ: FSBW) (the “Company”), the holding company for 1st Security Bank of Washington (the “Bank”) today reported 2025 third quarter net income of
“We continue to manage our strong net interest margins (NIM) with expanding yields on earning assets while maintaining a stable, well positioned mix of funding liabilities,” stated Matthew Mullet, CEO and President of 1st Security Bank.
“Shareholder returns were balanced in the third quarter with share repurchases, a paid special dividend, and the payment of our 50th quarterly dividend," stated Joe Adams, CEO of FS Bancorp, Inc. "We are also pleased to announce that our Board of Directors has approved our 51st consecutive quarterly cash dividend of
2025 Third Quarter Highlights
- Net income was
$9.2 million for the third quarter of 2025, compared to$7.7 million for the previous quarter, and$10.3 million for the comparable quarter one year ago; - Total deposits increased
$133.1 million , or5.2% , to$2.69 billion at September 30, 2025, compared to$2.55 billion at June 30, 2025, and increased$259.2 million , or10.7% , from$2.43 billion at September 30, 2024, primarily due to an increase in brokered certificates of deposit (“CDs”) and, to a lesser extent, other deposits. Noninterest-bearing deposits were$665.9 million at September 30, 2025,$654.1 million at June 30, 2025, and$657.8 million at September 30, 2024; - Borrowings decreased
$105.0 million , or44.8% , to$129.3 million at September 30, 2025, compared to$234.3 million at June 30, 2025, and decreased$34.5 million , or21.1% , from$163.8 million at September 30, 2024; - Loans receivable, net increased
$17.3 million , or0.7% , to$2.60 billion at September 30, 2025, compared to$2.58 billion at June 30, 2025, and increased$135.9 million , or5.5% , from$2.46 billion at September 30, 2024; - Consumer loans were
$600.8 million at September 30, 2025, a decrease of$5.5 million , or0.91% , from$606.3 million in the previous quarter, and a decrease of$31.6 million , or5.0% , from$632.4 million in the comparable quarter one year ago. During the three months ended September 30, 2025, consumer loan originations included83.3% of home improvement loans originated with a Fair Isaac Corporation (“FICO”) score above 720; - Repurchased 134,413 shares of the Company's common stock in the third quarter of 2025 at an average price of
$41.15 per share, with$826,000 remaining for future purchases under the existing share repurchase plan as of September 30, 2025; - Book value per share increased
$0.88 t o$40.43 at September 30, 2025, compared to$39.55 at June 30, 2025, and increased$2.98 from$37.45 at September 30, 2024. Tangible book value per share (non-GAAP financial measure) increased$0.97 t o$38.43 at September 30, 2025, compared to$37.46 at June 30, 2025, and increased$3.33 from$35.10 at September 30, 2024. See, “Non-GAAP Financial Measures;” - Segment reporting in the third quarter of 2025 reflected net income of
$8.4 million for the Commercial and Consumer Banking segment and$775,000 for the Home Lending segment, compared to net income of$7.4 million and$351,000 in the prior quarter, and net income of$9.3 million and$1.0 million in the third quarter of 2024, respectively; and - Regulatory capital ratios at the Bank were
13.8% for total risk-based capital and11.0% for Tier 1 leverage capital at September 30, 2025, compared to14.1% for total risk-based capital and11.2% for Tier 1 leverage capital at June 30, 2025.
Segment Reporting
The Company operates through two reportable segments: Commercial and Consumer Banking and Home Lending. The Commercial and Consumer Banking segment provides diversified financial products and services to our commercial and consumer customers. These products and services include deposit products; residential, consumer, business and commercial real estate lending and cash management services. This segment also manages the Bank's investment portfolio and other assets. The Home Lending segment originates one-to-four-family residential mortgage loans primarily for sale in the secondary markets as well as loans held for investment.
The tables below provide a summary of segment reporting at or for the three and nine months ended September 30, 2025 and 2024 (dollars in thousands):
| At or For the Three Months Ended September 30, 2025 | ||||||||||||
| Condensed income statement: | Commercial and Consumer Banking | Home Lending | Total | |||||||||
| Net interest income (1) | $ | 30,810 | $ | 2,880 | $ | 33,690 | ||||||
| Provision for credit losses | (2,150 | ) | (159 | ) | (2,309 | ) | ||||||
| Noninterest income (2) | 2,079 | 3,515 | 5,594 | |||||||||
| Noninterest expense (3) | (20,134 | ) | (5,254 | ) | (25,388 | ) | ||||||
| Income before provision for income taxes | 10,605 | 982 | 11,587 | |||||||||
| Provision for income taxes | (2,203 | ) | (207 | ) | (2,410 | ) | ||||||
| Net income | $ | 8,402 | $ | 775 | $ | 9,177 | ||||||
| Total average assets for period ended | $ | 2,523,410 | $ | 662,047 | $ | 3,185,457 | ||||||
| Full-time employees ("FTEs") | 460 | 115 | 575 | |||||||||
| At or For the Three Months Ended September 30, 2024 | ||||||||||||
| Condensed income statement: | Commercial and Consumer Banking | Home Lending | Total | |||||||||
| Net interest income (1) | $ | 28,612 | $ | 2,632 | $ | 31,244 | ||||||
| Provision for credit losses | (1,331 | ) | (182 | ) | (1,513 | ) | ||||||
| Noninterest income (2) | 2,257 | 3,710 | 5,967 | |||||||||
| Noninterest expense (3) | (20,199 | ) | (5,633 | ) | (25,832 | ) | ||||||
| Income before provision for income taxes | 9,339 | 527 | 9,866 | |||||||||
| (Provision) benefit for income taxes | (71 | ) | 491 | 420 | ||||||||
| Net income | $ | 9,268 | $ | 1,018 | $ | 10,286 | ||||||
| Total average assets for period ended | $ | 2,347,854 | $ | 612,935 | $ | 2,960,789 | ||||||
| FTEs | 442 | 117 | 559 | |||||||||
| At or For the Nine Months Ended September 30, 2025 | ||||||||||||
| Condensed income statement: | Commercial and Consumer Banking | Home Lending | Total | |||||||||
| Net interest income (1) | $ | 88,397 | $ | 8,387 | $ | 96,784 | ||||||
| Provision for credit losses | (5,320 | ) | (602 | ) | (5,922 | ) | ||||||
| Noninterest income (2) | 6,621 | 9,269 | 15,890 | |||||||||
| Noninterest expense (3) | (60,624 | ) | (15,321 | ) | (75,945 | ) | ||||||
| Income before provision for income taxes | 29,074 | 1,733 | 30,807 | |||||||||
| Provision for income taxes | (5,517 | ) | (364 | ) | (5,881 | ) | ||||||
| Net income | $ | 23,557 | $ | 1,369 | $ | 24,926 | ||||||
| Total average assets for period ended | $ | 2,468,543 | $ | 643,460 | $ | 3,112,003 | ||||||
| FTEs | 460 | 115 | 575 | |||||||||
| At or For the Nine Months Ended September 30, 2024 | ||||||||||||
| Condensed income statement: | Commercial and Consumer Banking | Home Lending | Total | |||||||||
| Net interest income (1) | $ | 84,749 | $ | 7,242 | $ | 91,991 | ||||||
| Provision for credit losses | (3,796 | ) | (193 | ) | (3,989 | ) | ||||||
| Noninterest income (2) | 6,919 | 10,027 | 16,946 | |||||||||
| Noninterest expense (3) | (58,250 | ) | (14,968 | ) | (73,218 | ) | ||||||
| Income before provision for income taxes | 29,622 | 2,108 | 31,730 | |||||||||
| (Provision) benefit for income taxes | (4,253 | ) | 165 | (4,088 | ) | |||||||
| Net income | $ | 25,369 | $ | 2,273 | $ | 27,642 | ||||||
| Total average assets for period ended | $ | 2,369,740 | $ | 586,001 | $ | 2,955,741 | ||||||
| FTEs | 442 | 117 | 559 | |||||||||
__________________________
| (1) | Net interest income is the difference between interest earned on assets and the cost of liabilities to fund those assets. Interest earned includes actual interest earned on segment assets and, if the segment has excess liabilities, interest credits for providing funding to the other segment. The cost of liabilities includes interest expense on segment liabilities and, if the segment does not have enough liabilities to fund its assets, a funding charge based on the cost of assigned liabilities to fund segment assets. |
| (2) | Noninterest income includes activity from certain residential mortgage loans that were initially originated for sale and measured at fair value and subsequently transferred to loans held for investment. Gains and losses from changes in fair value for these loans are reported in earnings as a component of noninterest income. For the three and nine months ended September 30, 2025, the Company recorded a net increase in fair value of |
| (3) | Noninterest expense includes allocated overhead expense from general corporate activities. Allocation is determined based on a combination of segment assets and FTEs. For the three and nine months ended September 30, 2025 and 2024, the Home Lending segment included allocated overhead expenses of |
Asset Summary
The following table presents the components and changes in total assets as of the dates indicated.
| ASSETS | Linked Quarter | Prior Year | ||||||||||||||||||||||||
| (Dollars in thousands) | Sep 30, | Jun 30, | Sep 30, | Change | Quarter Change | |||||||||||||||||||||
| 2025 | 2025 | 2024 | $ | % | $ | % | ||||||||||||||||||||
| Cash and due from banks | $ | 12,391 | $ | 15,168 | $ | 17,950 | $ | (2,777 | ) | (18 | )% | $ | (5,559 | ) | (31 | )% | ||||||||||
| Interest-bearing deposits at other financial institutions | 48,889 | 18,027 | 22,390 | 30,862 | 171 | 26,499 | 118 | |||||||||||||||||||
| Total cash and cash equivalents | 61,280 | 33,195 | 40,340 | 28,085 | 85 | 20,940 | 52 | |||||||||||||||||||
| Certificates of deposit at other financial institutions | — | 248 | 12,001 | (248 | ) | NM | (12,001 | ) | NM | |||||||||||||||||
| Securities available-for-sale, at fair value | 311,695 | 302,692 | 228,199 | 9,003 | 3 | 83,496 | 37 | |||||||||||||||||||
| Securities held-to-maturity, net | 31,386 | 31,562 | 8,455 | (176 | ) | (1 | ) | 22,931 | 271 | |||||||||||||||||
| Loans held for sale, at fair value | 38,579 | 53,630 | 49,373 | (15,051 | ) | (28 | ) | (10,794 | ) | (22 | ) | |||||||||||||||
| Loans receivable, net | 2,599,601 | 2,582,272 | 2,463,697 | 17,329 | 1 | 135,904 | 6 | |||||||||||||||||||
| Accrued interest receivable | 15,122 | 14,270 | 14,014 | 852 | 6 | 1,108 | 8 | |||||||||||||||||||
| Premises and equipment, net | 32,444 | 30,098 | 30,026 | 2,346 | 8 | 2,418 | 8 | |||||||||||||||||||
| Operating lease right-of-use | 6,832 | 7,969 | 5,365 | (1,137 | ) | (14 | ) | 1,467 | 27 | |||||||||||||||||
| Federal Home Loan Bank stock, at cost | 7,975 | 11,579 | 9,504 | (3,604 | ) | (31 | ) | (1,529 | ) | (16 | ) | |||||||||||||||
| Deferred tax asset, net | 6,767 | 7,782 | 4,222 | (1,015 | ) | (13 | ) | 2,545 | 60 | |||||||||||||||||
| Bank owned life insurance (“BOLI”), net | 38,531 | 38,262 | 38,453 | 269 | 1 | 78 | — | |||||||||||||||||||
| MSRs, held at the lower of cost or fair value | 8,506 | 8,652 | 8,739 | (146 | ) | (2 | ) | (233 | ) | (3 | ) | |||||||||||||||
| Goodwill | 3,592 | 3,592 | 3,592 | — | — | — | — | |||||||||||||||||||
| Core deposit intangible, net | 11,284 | 12,071 | 14,586 | (787 | ) | (7 | ) | (3,302 | ) | (23 | ) | |||||||||||||||
| Other assets | 35,231 | 38,139 | 39,642 | (2,908 | ) | (8 | ) | (4,411 | ) | (11 | ) | |||||||||||||||
| TOTAL ASSETS | $ | 3,208,825 | $ | 3,176,013 | $ | 2,970,208 | $ | 32,812 | 1 | % | $ | 238,617 | 8 | % | ||||||||||||
The increase in total assets reflects the Company's continued focus on balance sheet growth through loan origination and selective investment activity, funded by a combination of on-balance sheet liquidity and borrowings.
| Prior | ||||||||||||||||||||||||||||||||
| LOAN PORTFOLIO | Linked | Year | ||||||||||||||||||||||||||||||
| (Dollars in thousands) | Quarter | Quarter | ||||||||||||||||||||||||||||||
| COMMERCIAL REAL ESTATE | September 30, 2025 | June 30, 2025 | September 30, 2024 | $ | $ | |||||||||||||||||||||||||||
| ("CRE") LOANS | Amount | Percent | Amount | Percent | Amount | Percent | Change | Change | ||||||||||||||||||||||||
| CRE owner occupied | $ | 170,714 | 6.5 | % | $ | 180,250 | 6.8 | % | $ | 176,661 | 7.1 | % | $ | (9,536 | ) | $ | (5,947 | ) | ||||||||||||||
| CRE non-owner occupied | 172,713 | 6.6 | 171,979 | 6.6 | 176,272 | 7.1 | 734 | (3,559 | ) | |||||||||||||||||||||||
| Commercial and speculative construction and development | 326,684 | 12.4 | 300,723 | 11.5 | 240,618 | 9.6 | 25,961 | 86,066 | ||||||||||||||||||||||||
| Multi-family | 262,578 | 10.0 | 263,185 | 10.1 | 238,462 | 9.6 | (607 | ) | 24,116 | |||||||||||||||||||||||
| Total CRE loans | 932,689 | 35.5 | 916,137 | 35.0 | 832,013 | 33.4 | 16,552 | 100,676 | ||||||||||||||||||||||||
| RESIDENTIAL REAL ESTATE LOANS | ||||||||||||||||||||||||||||||||
| One-to-four-family (excludes HFS) | 629,712 | 23.9 | 639,881 | 24.4 | 591,666 | 23.7 | (10,169 | ) | 38,046 | |||||||||||||||||||||||
| Home equity | 86,895 | 3.3 | 85,613 | 3.3 | 75,063 | 3.0 | 1,282 | 11,832 | ||||||||||||||||||||||||
| Residential custom construction | 53,296 | 2.0 | 54,024 | 2.1 | 51,748 | 2.1 | (728 | ) | 1,548 | |||||||||||||||||||||||
| Total residential real estate loans | 769,903 | 29.2 | 779,518 | 29.8 | 718,477 | 28.8 | (9,615 | ) | 51,426 | |||||||||||||||||||||||
| CONSUMER LOANS | ||||||||||||||||||||||||||||||||
| Indirect home improvement | 527,597 | 20.1 | 530,375 | 20.3 | 552,226 | 22.1 | (2,778 | ) | (24,629 | ) | ||||||||||||||||||||||
| Marine | 70,220 | 2.7 | 72,765 | 2.8 | 76,845 | 3.1 | (2,545 | ) | (6,625 | ) | ||||||||||||||||||||||
| Other consumer | 2,962 | 0.1 | 3,151 | 0.1 | 3,346 | 0.1 | (189 | ) | (384 | ) | ||||||||||||||||||||||
| Total consumer loans | 600,779 | 22.9 | 606,291 | 23.2 | 632,417 | 25.3 | (5,512 | ) | (31,638 | ) | ||||||||||||||||||||||
| COMMERCIAL BUSINESS LOANS | ||||||||||||||||||||||||||||||||
| Commercial and industrial (“C&I”) | 311,173 | 11.8 | 294,563 | 11.3 | 296,773 | 11.9 | 16,610 | 14,400 | ||||||||||||||||||||||||
| Warehouse lending | 15,113 | 0.6 | 17,952 | 0.7 | 15,249 | 0.6 | (2,839 | ) | (136 | ) | ||||||||||||||||||||||
| Total commercial business loans | 326,286 | 12.4 | 312,515 | 12.0 | 312,022 | 12.5 | 13,771 | 14,264 | ||||||||||||||||||||||||
| Total loans receivable, gross | 2,629,657 | 100.0 | % | 2,614,461 | 100.0 | % | 2,494,929 | 100.0 | % | 15,196 | 134,728 | |||||||||||||||||||||
| Allowance for credit losses ("ACL") on loans | (30,056 | ) | (32,189 | ) | (31,232 | ) | 2,133 | 1,176 | ||||||||||||||||||||||||
| Total loans receivable, net | $ | 2,599,601 | $ | 2,582,272 | $ | 2,463,697 | $ | 17,329 | $ | 135,904 | ||||||||||||||||||||||
Total loans increased to
The composition of CRE loans at the dates indicated were as follows:
| (Dollars in thousands) | |||||||||||||||
| CRE by Type: | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | ||||||||||||
| CRE non-owner occupied: | |||||||||||||||
| Office | $ | 42,537 | $ | 39,141 | $ | 40,672 | |||||||||
| Retail | 36,827 | 38,652 | 36,070 | ||||||||||||
| Hospitality/restaurant | 25,798 | 26,489 | 27,743 | ||||||||||||
| Self-storage | 19,001 | 19,075 | 19,130 | ||||||||||||
| Mixed use | 18,663 | 18,387 | 17,882 | ||||||||||||
| Industrial | 14,352 | 14,444 | 15,402 | ||||||||||||
| Senior housing/assisted living | 7,390 | 7,448 | 7,621 | ||||||||||||
| Other | 3,632 | 3,670 | 6,684 | ||||||||||||
| Land | 2,072 | 2,206 | 2,523 | ||||||||||||
| Education/worship | 2,441 | 2,467 | 2,545 | ||||||||||||
| Total CRE non-owner occupied | 172,713 | 171,979 | 176,272 | ||||||||||||
| CRE owner occupied: | |||||||||||||||
| Industrial | 77,059 | 77,419 | 63,577 | ||||||||||||
| Office | 31,981 | 40,156 | 42,156 | ||||||||||||
| Retail | 17,399 | 19,470 | 19,968 | ||||||||||||
| Hospitality/restaurant | 7,675 | 7,230 | 10,528 | ||||||||||||
| Other | 10,521 | 9,483 | 8,116 | ||||||||||||
| Car wash | 4,430 | 4,447 | 9,575 | ||||||||||||
| Automobile related | 7,164 | 7,215 | 8,874 | ||||||||||||
| Mixed use | 4,622 | 5,548 | 5,648 | ||||||||||||
| Agriculture | 4,347 | 4,652 | 3,610 | ||||||||||||
| Education/worship | 5,516 | 4,630 | 4,609 | ||||||||||||
| Total CRE owner occupied | 170,714 | 180,250 | 176,661 | ||||||||||||
| Total | $ | 343,427 | $ | 352,229 | $ | 352,933 | |||||||||
The following table includes CRE loans repricing or maturing within the next two years, excluding loans that reprice simultaneously with changes to the prime rate:
| Current | ||||||||||||||||||||||||||||||
| (Dollars in | Weighted | |||||||||||||||||||||||||||||
| thousands) | For the Quarter Ended | Average | ||||||||||||||||||||||||||||
| CRE by type: | Dec 31, 2025 | Mar 31, 2026 | Jun 30, 2026 | Sep 30, 2026 | Dec 31, 2026 | Mar 31, 2027 | Jun 30, 2027 | Sep 30, 2027 | Total | Rate | ||||||||||||||||||||
| Agriculture | $ | 716 | $ | 178 | $ | — | $ | 273 | $ | — | $ | — | $ | — | $ | — | $ | 1,167 | 6.47 | % | ||||||||||
| Apartment | 1,421 | 968 | 13,706 | 9,738 | 16,186 | 27,814 | 18,052 | 4,153 | 92,038 | 5.81 | % | |||||||||||||||||||
| Auto–related | — | 204 | — | — | — | — | — | — | 204 | 5.75 | % | |||||||||||||||||||
| Hotel / hospitality | — | 111 | 1,224 | — | — | 102 | — | — | 1,437 | 5.08 | % | |||||||||||||||||||
| Industrial | 9,300 | 397 | 580 | 1,553 | — | 13,341 | 3,345 | 5,754 | 34,270 | 5.09 | % | |||||||||||||||||||
| Mixed use | — | 2,110 | — | — | 375 | — | — | — | 2,485 | 7.85 | % | |||||||||||||||||||
| Office | 791 | 511 | 1,616 | 550 | 7,640 | 2,835 | — | 7,568 | 21,511 | 4.75 | % | |||||||||||||||||||
| Other | 2,566 | 876 | — | 2,441 | 1,474 | — | 2,014 | 329 | 9,700 | 5.22 | % | |||||||||||||||||||
| Retail | — | 406 | 3,422 | — | 3,375 | 2,997 | 2,366 | 7,551 | 20,117 | 4.68 | % | |||||||||||||||||||
| Senior housing and assisted living | — | 2,128 | — | — | — | — | 1,363 | — | 3,491 | 4.76 | % | |||||||||||||||||||
| Total | $ | 14,794 | $ | 7,889 | $ | 20,548 | $ | 14,555 | $ | 29,050 | $ | 47,089 | $ | 27,140 | $ | 25,355 | $ | 186,420 | ||||||||||||
The composition of construction loans at the dates indicated were as follows:
| (Dollars in thousands) | September 30, 2025 | June 30, 2025 | September 30, 2024 | ||||||||||||||||||
| Construction Types: | Amount | Percent | Amount | Percent | Amount | Percent | |||||||||||||||
| Commercial construction – retail | $ | 8,445 | 2.2 | % | $ | 8,447 | 2.4 | % | $ | 8,710 | 3.0 | % | |||||||||
| Commercial construction – office | 9,150 | 2.4 | 9,083 | 2.6 | 4,737 | 1.6 | |||||||||||||||
| Commercial construction – self storage | 18,701 | 4.9 | 16,553 | 4.7 | 10,408 | 3.5 | |||||||||||||||
| Commercial construction – hotel | 6,147 | 1.6 | 3,673 | 1.0 | 7,807 | 2.7 | |||||||||||||||
| Multi-family | 29,751 | 7.8 | 23,119 | 6.5 | 30,931 | 10.6 | |||||||||||||||
| Custom construction – single family residential and single family manufactured residential | 44,299 | 11.7 | 45,570 | 12.8 | 43,528 | 14.9 | |||||||||||||||
| Custom construction – land, lot and acquisition and development | 8,998 | 2.4 | 8,454 | 2.4 | 8,220 | 2.8 | |||||||||||||||
| Speculative residential construction – vertical | 217,821 | 57.3 | 200,375 | 56.5 | 145,549 | 49.8 | |||||||||||||||
| Speculative residential construction – land, lot and acquisition and development | 36,668 | 9.6 | 39,473 | 11.1 | 32,476 | 11.1 | |||||||||||||||
| Total | $ | 379,980 | 100.0 | % | $ | 354,747 | 100.0 | % | $ | 292,366 | 100.0 | % | |||||||||
Originations of one-to-four-family loans to purchase and refinance a home for the periods indicated were as follows:
| (Dollars in | Prior Year | |||||||||||||||||||||||||||||||||||||||
| thousands) | For the Three Months Ended | Linked Quarter | Quarter | |||||||||||||||||||||||||||||||||||||
| Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | $ | % | $ | % | ||||||||||||||||||||||||||||||||||
| Amount | Percent | Amount | Percent | Amount | Percent | Change | Change | Change | Change | |||||||||||||||||||||||||||||||
| Purchase | $ | 155,910 | 88.8 | % | $ | 170,854 | 85.7 | % | $ | 168,088 | 85.7 | % | $ | (14,944 | ) | (8.7 | ) | $ | (12,178 | ) | (7.2 | )% | ||||||||||||||||||
| Refinance | 19,714 | 11.2 | 28,470 | 14.3 | 28,001 | 14.3 | (8,756 | ) | (30.8 | ) | (8,287 | ) | (29.6 | )% | ||||||||||||||||||||||||||
| Total | $ | 175,624 | 100.0 | % | $ | 199,324 | 100.0 | % | $ | 196,089 | 100.0 | % | $ | (23,700 | ) | (11.9 | ) | $ | (20,465 | ) | (10.4 | )% | ||||||||||||||||||
| (Dollars in thousands) | For the Nine Months Ended Sep 30, | ||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||
| Amount | Percent | Amount | Percent | $ Change | %Change | ||||||||||||||
| Purchase | $ | 446,631 | 85.8 | % | $ | 497,705 | 88.8 | % | $ | (51,074 | ) | (10.3 | )% | ||||||
| Refinance | 73,697 | 14.2 | 62,546 | 11.2 | 11,151 | 17.8 | % | ||||||||||||
| Total | $ | 520,328 | 100.0 | % | $ | 560,251 | 100.0 | % | $ | (39,923 | ) | (7.1 | )% | ||||||
During the quarter ended September 30, 2025, the Company sold
Liabilities and Equity Summary
The following table summarizes the components and changes in deposits, borrowings, equity, and book value per common share at the dates indicated.
| (Dollars in thousands) | Linked | Prior Year | ||||||||||||||||||||||||||||||
| DEPOSITS | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | Quarter | Quarter | |||||||||||||||||||||||||||
| Transactional deposits: | Amount | Percent | Amount | Percent | Amount | Percent | $ Change | $ Change | ||||||||||||||||||||||||
| Noninterest-bearing checking | $ | 648,661 | 24.1 | % | $ | 643,573 | 25.2 | % | $ | 641,270 | 26.4 | % | $ | 5,088 | $ | 7,391 | ||||||||||||||||
| Interest-bearing checking: | ||||||||||||||||||||||||||||||||
| Retail deposits | 199,527 | 7.4 | 181,240 | 7.1 | 165,944 | 6.8 | 18,287 | 33,583 | ||||||||||||||||||||||||
| Brokered deposits | — | — | 30,020 | 1.2 | — | — | (30,020 | ) | — | |||||||||||||||||||||||
| Total interest-bearing checking | 199,527 | 7.4 | 211,260 | 8.3 | 165,944 | 6.8 | (11,733 | ) | 33,583 | |||||||||||||||||||||||
| Escrow accounts related to mortgages serviced (1) | 17,191 | 0.6 | 10,496 | 0.4 | 16,483 | 0.7 | 6,695 | 708 | ||||||||||||||||||||||||
| Subtotal | 865,379 | 32.2 | 865,329 | 33.9 | 823,697 | 33.9 | 50 | 41,682 | ||||||||||||||||||||||||
| Savings and money market: | ||||||||||||||||||||||||||||||||
| Savings | 167,006 | 6.2 | 159,601 | 6.3 | 151,364 | 6.2 | 7,405 | 15,642 | ||||||||||||||||||||||||
| Money market: | ||||||||||||||||||||||||||||||||
| Retail deposits | 354,082 | 13.2 | 350,548 | 13.6 | 339,037 | 13.9 | 3,534 | 15,045 | ||||||||||||||||||||||||
| Brokered deposits | 251 | — | 251 | 0.1 | 1,012 | 0.0 | — | (761 | ) | |||||||||||||||||||||||
| Total money market | 354,333 | 13.2 | 350,799 | 13.7 | 340,049 | 14.0 | 3,534 | 14,284 | ||||||||||||||||||||||||
| Subtotal | 521,339 | 19.4 | 510,400 | 20.0 | 491,413 | 20.2 | 10,939 | 29,926 | ||||||||||||||||||||||||
| Certificates of deposit: | ||||||||||||||||||||||||||||||||
| Retail CDs | 924,925 | 34.4 | 891,355 | 34.9 | 849,302 | 35.0 | 33,570 | 75,623 | ||||||||||||||||||||||||
| Nonretail CDs: | ||||||||||||||||||||||||||||||||
| Online CDs | 3,423 | 0.1 | 3,423 | 0.1 | 9,354 | 0.4 | — | (5,931 | ) | |||||||||||||||||||||||
| Public CDs | 2,023 | 0.1 | 2,114 | 0.1 | 3,325 | 0.1 | (91 | ) | (1,302 | ) | ||||||||||||||||||||||
| Brokered CDs | 369,403 | 13.8 | 280,754 | 11.0 | 250,240 | 10.3 | 88,649 | 119,163 | ||||||||||||||||||||||||
| Total nonretail CDs | 374,849 | 14.0 | 286,291 | 11.2 | 262,919 | 10.8 | 88,558 | 111,930 | ||||||||||||||||||||||||
| Subtotal | 1,299,774 | 48.4 | 1,177,646 | 46.1 | 1,112,221 | 45.8 | 122,128 | 187,553 | ||||||||||||||||||||||||
| Total deposits | $ | 2,686,492 | 100.0 | % | $ | 2,553,375 | 100.0 | % | $ | 2,427,331 | 100.0 | % | $ | 133,117 | $ | 259,161 | ||||||||||||||||
| Borrowings (2) | $ | 129,305 | $ | 234,305 | $ | 163,806 | $ | (105,000 | ) | $ | (34,501 | ) | ||||||||||||||||||||
| Shareholders’ equity | $ | 300,511 | $ | 297,203 | $ | 288,902 | $ | 3,308 | $ | 11,609 | ||||||||||||||||||||||
| Book value per common share | $ | 40.43 | $ | 39.55 | $ | 37.45 | $ | 0.88 | $ | 2.98 | ||||||||||||||||||||||
_______________
(1) Primarily noninterest-bearing accounts based on applicable state law.
(2) Comprised of FHLB advances and Federal Reserve Bank borrowings.
At September 30, 2025, the Bank had uninsured deposits of approximately
In the table above, the linked quarter increase in stockholders’ equity at September 30, 2025, compared to June 30, 2025, was primarily due to net income of
The Bank is considered “well capitalized” under the capital requirement established by the Federal Deposit Insurance Corporation (“FDIC”) and the Company exceeded all regulatory capital requirements. At September 30, 2025, capital ratios presented for the Bank and the Company were as follows:
| At September 30, 2025 | ||||||
| Bank | Company | |||||
| Total risk-based capital (to risk-weighted assets) | 13.81 | % | 13.93 | % | ||
| Tier 1 leverage capital (to average assets) | 10.96 | % | 9.49 | % | ||
| CET 1 capital (to risk-weighted assets) | 12.64 | % | 10.95 | % | ||
Credit Quality
The following table summarizes the changes in the ACL on loans, nonperforming loans, and classified loans at the dates indicated.
| Linked | Prior Year | |||||||||||||||||||
| ACL ON LOANS | Sep 30, | Jun 30, | Sep 30, | Quarter | Quarter | |||||||||||||||
| (Dollars in thousands) | 2025 | 2025 | 2024 | $ Change | $ Change | |||||||||||||||
| Beginning ACL balance | $ | 32,189 | $ | 31,653 | $ | 31,238 | $ | 536 | $ | 951 | ||||||||||
| Provision | 1,851 | 1,715 | 1,591 | 136 | 260 | |||||||||||||||
| Charge-offs | ||||||||||||||||||||
| Indirect | (1,941 | ) | (1,555 | ) | (1,847 | ) | (386 | ) | (94 | ) | ||||||||||
| Marine | (55 | ) | (43 | ) | (91 | ) | (12 | ) | 36 | |||||||||||
| Other | (49 | ) | (42 | ) | (26 | ) | (7 | ) | (23 | ) | ||||||||||
| Commercial construction – office | (2,299 | ) | — | — | (2,299 | ) | (2,299 | ) | ||||||||||||
| Commercial business | — | — | — | — | — | |||||||||||||||
| Subtotal | (4,344 | ) | (1,640 | ) | (1,964 | ) | (2,704 | ) | (2,380 | ) | ||||||||||
| Recoveries | ||||||||||||||||||||
| Indirect | 323 | 330 | 339 | (7 | ) | (16 | ) | |||||||||||||
| Marine | 16 | 54 | 11 | (38 | ) | 5 | ||||||||||||||
| Other | 12 | 7 | 10 | 5 | 2 | |||||||||||||||
| Commercial business | 9 | 70 | 7 | (61 | ) | 2 | ||||||||||||||
| Subtotal | 360 | 461 | 367 | (101 | ) | (7 | ) | |||||||||||||
| Ending ACL balance | $ | 30,056 | $ | 32,189 | $ | 31,232 | $ | (2,133 | ) | $ | (1,176 | ) | ||||||||
The commercial construction - office charge-off shown above reflects the expected loss for the project recognized during the three months ended September 30, 2025.
| NONPERFORMING LOANS | Linked | Prior Year | |||||||||||||||
| (Dollars in thousands) | Sep 30, | June 30, | Sep 30, | Quarter | Quarter | ||||||||||||
| CRE LOANS | 2025 | 2025 | 2024 | $ Change | $ Change | ||||||||||||
| CRE | $ | 2,047 | $ | 2,046 | $ | 1,130 | $ | 1 | $ | 917 | |||||||
| Commercial and speculative construction and development | 9,150 | 9,083 | 4,737 | 67 | 4,413 | ||||||||||||
| Total CRE loans | 11,197 | 11,129 | 5,867 | 68 | 5,330 | ||||||||||||
| RESIDENTIAL REAL ESTATE LOANS | |||||||||||||||||
| One-to-four-family (excludes HFS) | 1,799 | 1,809 | 166 | (10 | ) | 1,633 | |||||||||||
| Home equity | 317 | 251 | 156 | 66 | 161 | ||||||||||||
| Total residential real estate loans | 2,116 | 2,060 | 322 | 56 | 1,794 | ||||||||||||
| CONSUMER LOANS | |||||||||||||||||
| Indirect home improvement | 3,802 | 3,365 | 1,770 | 437 | 2,032 | ||||||||||||
| Marine | 620 | 567 | 233 | 53 | 387 | ||||||||||||
| Other consumer | 40 | 13 | 5 | 27 | 35 | ||||||||||||
| Total consumer loans | 4,462 | 3,945 | 2,008 | 517 | 2,454 | ||||||||||||
| COMMERCIAL BUSINESS LOANS | |||||||||||||||||
| C&I | 600 | 1,862 | 2,575 | (1,262 | ) | (1,975 | ) | ||||||||||
| Total nonperforming loans | $ | 18,375 | $ | 18,996 | $ | 10,772 | $ | (621 | ) | $ | 7,603 | ||||||
The increase in nonaccrual loans year-over-year was partly driven by two commercial construction loans, which remain in active development. Disbursements on these loans, net of partial charge-offs of
| CLASSIFIED LOANS | Linked | Prior Year | |||||||||||||||
| (Dollars in thousands) | Sep 30, | June 30, | Sep 30, | Quarter | Quarter | ||||||||||||
| CRE LOANS | 2025 | 2025 | 2024 | $ Change | $ Change | ||||||||||||
| CRE | $ | 5,515 | $ | 2,046 | $ | 3,603 | $ | 3,469 | $ | 1,912 | |||||||
| Commercial and speculative construction and development | 9,150 | 9,083 | 4,737 | 67 | 4,413 | ||||||||||||
| Total CRE loans | 14,665 | 11,129 | 8,340 | 3,536 | 6,325 | ||||||||||||
| RESIDENTIAL REAL ESTATE LOANS | |||||||||||||||||
| One-to-four-family (excludes HFS) | 3,646 | 4,383 | 2,796 | (737 | ) | 850 | |||||||||||
| Home equity | 317 | 251 | 156 | 66 | 161 | ||||||||||||
| Total residential real estate loans | 3,963 | 4,634 | 2,952 | (671 | ) | 1,011 | |||||||||||
| CONSUMER LOANS | |||||||||||||||||
| Indirect home improvement | 3,802 | 3,365 | 1,770 | 437 | 2,032 | ||||||||||||
| Marine | 620 | 567 | 232 | 53 | 388 | ||||||||||||
| Other consumer | 40 | 13 | 5 | 27 | 35 | ||||||||||||
| Total consumer loans | 4,462 | 3,945 | 2,007 | 517 | 2,455 | ||||||||||||
| COMMERCIAL BUSINESS LOANS | |||||||||||||||||
| C&I | 3,963 | 5,220 | 9,880 | (1,257 | ) | (5,917 | ) | ||||||||||
| Total classified loans | $ | 27,053 | $ | 24,928 | $ | 23,179 | $ | 2,125 | $ | 3,874 | |||||||
Operating Results
Net interest income increased
For the nine months ended September 30, 2025, net interest income increased
NIM (annualized) increased two basis points to
The average total cost of funds, including noninterest-bearing checking, increased two basis points to
For the three and nine months ended September 30, 2025, the provision for credit losses on loans was
During the three months ended September 30, 2025, net charge-offs increased
Total noninterest income decreased
Total noninterest expense was
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 27 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 Vancouver, Washington. Additionally, the Bank services home mortgage customers across the Northwest, focusing on markets in Washington State including the Puget Sound, Tri-Cities, and Vancouver.
Forward-Looking Statements
When used in this press release and in other documents filed with or furnished to the Securities and Exchange Commission (the “SEC”), in press releases or other public stockholder communications, or in oral statements made with the approval of an authorized executive officer, the words or phrases “believe,” “will,” “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “project,” “plans,” or similar expressions are intended to identify “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not historical facts but instead represent management's current expectations and forecasts regarding future events, many of which are inherently uncertain and outside of our control. Actual results may differ, possibly materially from those currently expected or projected in these forward-looking statements. Factors that could cause the Company’s actual results to differ materially from those described in the forward-looking statements, include but are not limited to, the following: adverse impacts to economic conditions in the Company’s local market areas, other markets where the Company has lending relationships, or other aspects of the Company’s business operations or financial markets, including, without limitation, as a result of employment levels; labor shortages, the effects of inflation, recessionary pressures or slowing economic growth; changes in interest rates and the duration of such changes, including actions by the Federal Reserve, which could adversely affect our revenues and expenses, the values of our assets and obligations, and the availability and cost of capital and liquidity; the impact of inflation and monetary and fiscal policy responses thereto and their impact on consumer and business behavior; geopolitical developments and international conflicts including but not limited to tensions or instability in Eastern Europe, the Middle East, and Asia, or the imposition of new or increased tariffs and trade restrictions, which may disrupt financial markets, global supply chains, energy prices, or economic activity in specific industry sectors; the effects of a federal government shutdown, debt ceiling standoff, or other fiscal policy uncertainty; increased competitive pressures, including repricing and competitors' pricing initiatives, and their impact on our market position, loan, and deposit products; adverse changes in the securities markets, the Company’s ability to execute its plans to grow its residential construction lending, mortgage banking, and warehouse lending operations, and the geographic expansion of its indirect home improvement lending; challenges arising from expanding into new geographic markets, products, or services; secondary market conditions for loans and the Company’s ability to originate loans for sale and sell loans in the secondary market; volatility in the mortgage industry; fluctuations in deposits; liquidity issues, including our ability to borrow funds or raise additional capital, if necessary; the impact of bank failures or adverse developments at other banks and related negative press about the banking industry in general on investor and depositor sentiment; the ability to adapt to rapid technological changes, including advancements in artificial intelligence, digital banking, and cybersecurity; legislation or regulatory changes, including but not limited to shifts in capital requirements, banking regulation, tax laws, or consumer protection laws; vulnerabilities in information systems or third-party service providers, including disruptions, breaches, or attacks; environmental, social and governance goals; the effects of climate change, severe weather events, natural disasters, pandemics, epidemics and other public health crises, acts of war or terrorism, domestic political unrest and other external events on our business; and other factors described in the Company’s latest Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and other reports filed with or furnished to the SEC which are available on its website at www.fsbwa.com and on the SEC's website at www.sec.gov.
Any of the forward-looking statements that the Company makes in this press release and in the other public statements are based upon management's beliefs and assumptions at the time they are made and may turn out to be incorrect because of the inaccurate assumptions the Company might make, because of the factors illustrated above or because of other factors that cannot be foreseen by the Company. Therefore, these factors should be considered in evaluating the forward-looking statements, and undue reliance should not be placed on such statements. The Company does not undertake and specifically disclaims any obligation to revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.
| FS BANCORP, INC. AND SUBSIDIARY CONSOLIDATED BALANCE SHEETS (Dollars in thousands) (Unaudited) | ||||||||||||||||||
| Linked | Prior Year | |||||||||||||||||
| Sep 30, | Jun 30, | Sep 30, | Quarter | Quarter | ||||||||||||||
| ASSETS | 2025 | 2025 | 2024 | % Change | % Change | |||||||||||||
| Cash and due from banks | $ | 12,391 | $ | 15,168 | $ | 17,950 | (18 | ) | (31 | ) | ||||||||
| Interest-bearing deposits at other financial institutions | 48,889 | 18,027 | 22,390 | 171 | 118 | |||||||||||||
| Total cash and cash equivalents | 61,280 | 33,195 | 40,340 | 85 | 52 | |||||||||||||
| Certificates of deposit at other financial institutions | — | 248 | 12,001 | (100 | ) | (100 | ) | |||||||||||
| Securities available-for-sale, at fair value | 311,695 | 302,692 | 228,199 | 3 | 37 | |||||||||||||
| Securities held-to-maturity, net | 31,386 | 31,562 | 8,455 | (1 | ) | 271 | ||||||||||||
| Loans held for sale, at fair value | 38,579 | 53,630 | 49,373 | (28 | ) | (22 | ) | |||||||||||
| Loans receivable, net | 2,599,601 | 2,582,272 | 2,463,697 | 1 | 6 | |||||||||||||
| Accrued interest receivable | 15,122 | 14,270 | 14,014 | 6 | 8 | |||||||||||||
| Premises and equipment, net | 32,444 | 30,098 | 30,026 | 8 | 8 | |||||||||||||
| Operating lease right-of-use | 6,832 | 7,969 | 5,365 | (14 | ) | 27 | ||||||||||||
| Federal Home Loan Bank stock, at cost | 7,975 | 11,579 | 9,504 | (31 | ) | (16 | ) | |||||||||||
| Deferred tax asset, net | 6,767 | 7,782 | 4,222 | (13 | ) | 60 | ||||||||||||
| Bank owned life insurance (“BOLI”), net | 38,531 | 38,262 | 38,453 | 1 | — | |||||||||||||
| MSRs, held at the lower of cost or fair value | 8,506 | 8,652 | 8,739 | (2 | ) | (3 | ) | |||||||||||
| Goodwill | 3,592 | 3,592 | 3,592 | — | — | |||||||||||||
| Core deposit intangible, net | 11,284 | 12,071 | 14,586 | (7 | ) | (23 | ) | |||||||||||
| Other assets | 35,231 | 38,139 | 39,642 | (8 | ) | (11 | ) | |||||||||||
| TOTAL ASSETS | $ | 3,208,825 | $ | 3,176,013 | $ | 2,970,208 | 1 | 8 | ||||||||||
| LIABILITIES | ||||||||||||||||||
| Deposits: | ||||||||||||||||||
| Noninterest-bearing accounts | $ | 665,852 | $ | 654,069 | $ | 657,753 | 2 | 1 | ||||||||||
| Interest-bearing accounts | 2,020,640 | 1,899,306 | 1,769,578 | 6 | 14 | |||||||||||||
| Total deposits | 2,686,492 | 2,553,375 | 2,427,331 | 5 | 11 | |||||||||||||
| Borrowings | 129,305 | 234,305 | 163,806 | (45 | ) | (21 | ) | |||||||||||
| Subordinated notes: | ||||||||||||||||||
| Principal amount | 50,000 | 50,000 | 50,000 | — | — | |||||||||||||
| Unamortized debt issuance costs | (356 | ) | (373 | ) | (423 | ) | (5 | ) | (16 | ) | ||||||||
| Total subordinated notes less unamortized debt issuance costs | 49,644 | 49,627 | 49,577 | — | — | |||||||||||||
| Operating lease liability | 6,993 | 8,138 | 5,548 | (14 | ) | 26 | ||||||||||||
| Other liabilities | 35,880 | 33,365 | 35,044 | 8 | 2 | |||||||||||||
| Total liabilities | 2,908,314 | 2,878,810 | 2,681,306 | 1 | 8 | |||||||||||||
| COMMITMENTS AND CONTINGENCIES | ||||||||||||||||||
| STOCKHOLDERS’ EQUITY | ||||||||||||||||||
| Preferred stock, $.01 par value; 5,000,000 shares authorized; none issued or outstanding | — | — | — | — | — | |||||||||||||
| Common stock, $.01 par value; 45,000,000 shares authorized; 7,535,330 shares issued and outstanding at September 30, 2025, 7,618,543 at June 30, 2025, and 7,817,172 at September 30, 2024 | 75 | 76 | 78 | (1 | ) | (4 | ) | |||||||||||
| Additional paid-in capital | 43,907 | 48,418 | 55,264 | (9 | ) | (21 | ) | |||||||||||
| Retained earnings | 273,882 | 268,509 | 251,843 | 2 | 9 | |||||||||||||
| Accumulated other comprehensive loss, net of tax | (17,353 | ) | (19,800 | ) | (18,283 | ) | (12 | ) | (5 | ) | ||||||||
| Total stockholders’ equity | 300,511 | 297,203 | 288,902 | 1 | 4 | |||||||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 3,208,825 | $ | 3,176,013 | $ | 2,970,208 | 1 | 8 | ||||||||||
| FS BANCORP, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF INCOME (Dollars in thousands, except per share amounts) (Unaudited) | ||||||||||||||||||
| Three Months Ended | Linked | Prior Year | ||||||||||||||||
| Sep 30, | Jun 30, | Sep 30, | Quarter | Quarter | ||||||||||||||
| INTEREST INCOME | 2025 | 2025 | 2024 | % Change | % Change | |||||||||||||
| Loans receivable, including fees | $ | 46,664 | $ | 45,038 | $ | 43,800 | 4 | 7 | ||||||||||
| Interest and dividends on investment securities, cash and cash equivalents, and certificates of deposit at other financial institutions | 4,309 | 3,665 | 3,243 | 18 | 33 | |||||||||||||
| Total interest and dividend income | 50,973 | 48,703 | 47,043 | 5 | 8 | |||||||||||||
| INTEREST EXPENSE | ||||||||||||||||||
| Deposits | 14,862 | 14,520 | 13,486 | 2 | 10 | |||||||||||||
| Borrowings | 1,935 | 1,585 | 1,828 | 22 | 6 | |||||||||||||
| Subordinated notes | 486 | 486 | 485 | — | — | |||||||||||||
| Total interest expense | 17,283 | 16,591 | 15,799 | 4 | 9 | |||||||||||||
| NET INTEREST INCOME | 33,690 | 32,112 | 31,244 | 5 | 8 | |||||||||||||
| PROVISION FOR CREDIT LOSSES | 2,309 | 2,021 | 1,513 | 14 | 53 | |||||||||||||
| NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | 31,381 | 30,091 | 29,731 | 4 | 6 | |||||||||||||
| NONINTEREST INCOME | ||||||||||||||||||
| Service charges and fee income | 2,326 | 2,323 | 2,482 | — | (6 | ) | ||||||||||||
| Gain on sale of loans | 2,439 | 1,972 | 2,523 | 24 | (3 | ) | ||||||||||||
| Gain on sale of MSRs | — | — | 141 | — | NM | |||||||||||||
| Gain on sale of investment securities, net | — | — | 11 | NM | NM | |||||||||||||
| Earnings on cash surrender value of BOLI | 269 | 254 | 252 | 6 | 7 | |||||||||||||
| Other noninterest income | 560 | 621 | 558 | (10 | ) | — | ||||||||||||
| Total noninterest income | 5,594 | 5,170 | 5,967 | 8 | (6 | ) | ||||||||||||
| NONINTEREST EXPENSE | ||||||||||||||||||
| Salaries and benefits | 14,415 | 14,088 | 13,985 | 2 | 3 | |||||||||||||
| Operations | 3,974 | 3,824 | 3,827 | 4 | 4 | |||||||||||||
| Occupancy | 1,744 | 1,780 | 1,662 | (2 | ) | 5 | ||||||||||||
| Data processing | 1,784 | 2,137 | 2,156 | (17 | ) | (17 | ) | |||||||||||
| Loan costs | 746 | 719 | 666 | 4 | 12 | |||||||||||||
| Professional and board fees | 1,093 | 1,155 | 1,223 | (5 | ) | (11 | ) | |||||||||||
| FDIC insurance | 592 | 554 | 533 | 7 | 11 | |||||||||||||
| Marketing and advertising | 259 | 398 | 377 | (35 | ) | (31 | ) | |||||||||||
| Amortization of core deposit intangible | 787 | 809 | 897 | (3 | ) | (12 | ) | |||||||||||
| (Recovery) impairment of servicing rights | (6 | ) | 38 | 506 | (116 | ) | (101 | ) | ||||||||||
| Total noninterest expense | 25,388 | 25,502 | 25,832 | — | (2 | ) | ||||||||||||
| INCOME BEFORE PROVISION (BENEFIT) FOR INCOME TAXES | 11,587 | 9,759 | 9,866 | 19 | 17 | |||||||||||||
| PROVISION (BENEFIT) FOR INCOME TAXES | 2,410 | 2,031 | (420 | ) | 19 | (674 | ) | |||||||||||
| NET INCOME | $ | 9,177 | $ | 7,728 | $ | 10,286 | 19 | (11 | ) | |||||||||
| Basic earnings per share | $ | 1.20 | $ | 1.00 | $ | 1.32 | 20 | (9 | ) | |||||||||
| Diluted earnings per share | $ | 1.18 | $ | 0.99 | $ | 1.29 | 19 | (9 | ) | |||||||||
| FS BANCORP, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF INCOME (Dollars in thousands, except per share amounts) (Unaudited) | ||||||||||||
| Nine Months Ended | Year | |||||||||||
| September 30, | September 30, | Over Year | ||||||||||
| INTEREST INCOME | 2025 | 2024 | % Change | |||||||||
| Loans receivable, including fees | $ | 135,004 | $ | 127,203 | 6 | |||||||
| Interest and dividends on investment securities, cash and cash equivalents, and certificates of deposit at other financial institutions | 11,459 | 10,660 | 7 | |||||||||
| Total interest and dividend income | 146,463 | 137,863 | 6 | |||||||||
| INTEREST EXPENSE | ||||||||||||
| Deposits | 42,440 | 39,620 | 7 | |||||||||
| Borrowings | 5,783 | 4,796 | 21 | |||||||||
| Subordinated note | 1,456 | 1,456 | — | |||||||||
| Total interest expense | 49,679 | 45,872 | 8 | |||||||||
| NET INTEREST INCOME | 96,784 | 91,991 | 5 | |||||||||
| PROVISION FOR CREDIT LOSSES | 5,922 | 3,989 | 48 | |||||||||
| NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | 90,862 | 88,002 | 3 | |||||||||
| NONINTEREST INCOME | ||||||||||||
| Service charges and fee income | 6,894 | 7,513 | (8 | ) | ||||||||
| Gain on sale of loans | 6,111 | 6,824 | (10 | ) | ||||||||
| Gain on sale of MSRs | — | 8,356 | NM | |||||||||
| Loss on sale of investment securities, net | — | (7,836 | ) | NM | ||||||||
| Earnings on cash surrender value of BOLI | 773 | 734 | 5 | |||||||||
| Other noninterest income | 2,112 | 1,355 | 56 | |||||||||
| Total noninterest income | 15,890 | 16,946 | (6 | ) | ||||||||
| NONINTEREST EXPENSE | ||||||||||||
| Salaries and benefits | 43,037 | 40,920 | 5 | |||||||||
| Operations | 11,243 | 10,354 | 9 | |||||||||
| Occupancy | 5,240 | 5,036 | 4 | |||||||||
| Data processing | 5,966 | 6,172 | (3 | ) | ||||||||
| Loan costs | 2,012 | 1,904 | 6 | |||||||||
| Professional and board fees | 3,435 | 3,034 | 13 | |||||||||
| FDIC insurance | 1,684 | 1,515 | 11 | |||||||||
| Marketing and advertising | 879 | 981 | (10 | ) | ||||||||
| Amortization of core deposit intangible | 2,426 | 2,757 | (12 | ) | ||||||||
| Impairment of MSRs | 23 | 545 | (96 | ) | ||||||||
| Total noninterest expense | 75,945 | 73,218 | 4 | |||||||||
| INCOME BEFORE PROVISION FOR INCOME TAXES | 30,807 | 31,730 | (3 | ) | ||||||||
| PROVISION FOR INCOME TAXES | 5,881 | 4,088 | 44 | |||||||||
| NET INCOME | $ | 24,926 | $ | 27,642 | (10 | ) | ||||||
| Basic earnings per share | $ | 3.23 | $ | 3.54 | (9 | ) | ||||||
| Diluted earnings per share | $ | 3.18 | $ | 3.45 | (8 | ) | ||||||
| KEY FINANCIAL RATIOS AND DATA (Unaudited) | ||||||||||||
| At or For the Three Months Ended | ||||||||||||
| September 30, | June 30, | September 30, | ||||||||||
| PERFORMANCE RATIOS: | 2025 | 2025 | 2024 | |||||||||
| Return on assets (ratio of net income to average total assets) (1) | 1.14 | % | 0.99 | % | 1.38 | % | ||||||
| Return on equity (ratio of net income to average total stockholders' equity) (1) | 11.97 | 10.29 | 14.08 | |||||||||
| Yield on average interest-earning assets (1) | 6.61 | 6.52 | 6.56 | |||||||||
| Average total cost of funds (1) | 2.41 | 2.39 | 2.39 | |||||||||
| Interest rate spread information – average during period | 4.20 | 4.13 | 4.17 | |||||||||
| Net interest margin (1) | 4.37 | 4.30 | 4.35 | |||||||||
| Operating expense to average total assets (1) | 3.16 | 3.28 | 3.47 | |||||||||
| Average interest-earning assets to average interest-bearing liabilities (1) | 140.80 | 140.98 | 144.28 | |||||||||
| Efficiency ratio (2) | 64.63 | 68.40 | 69.42 | |||||||||
| Common equity ratio (ratio of stockholders' equity to total assets) | 9.37 | 9.36 | 9.73 | |||||||||
| Tangible common equity ratio (3) | 8.94 | 8.91 | 9.17 | |||||||||
| For the Nine Months Ended | ||||||||
| September 30, | September 30, | |||||||
| PERFORMANCE RATIOS: | 2025 | 2024 | ||||||
| Return on assets (ratio of net income to average total assets) | 1.07 | % | 1.25 | % | ||||
| Return on equity (ratio of net income to average total stockholders' equity) | 11.03 | 13.05 | ||||||
| Yield on average interest-earning assets | 6.55 | 6.44 | ||||||
| Average total cost of funds | 2.39 | 2.33 | ||||||
| Interest rate spread information – average during period | 4.16 | 4.11 | ||||||
| Net interest margin | 4.33 | 4.30 | ||||||
| Operating expense to average total assets | 3.26 | 3.31 | ||||||
| Average interest-earning assets to average interest-bearing liabilities | 141.54 | 144.14 | ||||||
| Efficiency ratio (2) | 67.40 | 67.21 | ||||||
| September 30, | June 30, | September 30, | ||||||||||
| ASSET QUALITY RATIOS AND DATA: | 2025 | 2025 | 2024 | |||||||||
| Nonperforming assets to total assets at end of period (4) | 0.57 | % | 0.60 | % | 0.36 | % | ||||||
| Nonperforming loans to total gross loans (excluding loans HFS) (5) | 0.70 | 0.73 | 0.43 | |||||||||
| ACL – loans to nonperforming loans (5) | 163.77 | 168.89 | 290.07 | |||||||||
| ACL – loans to total gross loans (excluding loans HFS) | 1.14 | 1.23 | 1.25 | |||||||||
| At or For the Three Months Ended | |||||||||||||||
| Sep 30, | Jun 30, | Sep 30, | |||||||||||||
| PER COMMON SHARE DATA: | 2025 | 2025 | 2024 | ||||||||||||
| Basic earnings per share | $ | 1.20 | $ | 1.00 | $ | 1.32 | |||||||||
| Diluted earnings per share | $ | 1.18 | $ | 0.99 | $ | 1.29 | |||||||||
| Weighted average basic shares outstanding | 7,488,139 | 7,580,576 | 7,676,102 | ||||||||||||
| Weighted average diluted shares outstanding | 7,623,243 | 7,698,173 | 7,854,389 | ||||||||||||
| Common shares outstanding at end of period | 7,432,359 | (6) | 7,515,480 | (7) | 7,713,359 | (8) | |||||||||
| Book value per share using common shares outstanding | $ | 40.43 | $ | 39.55 | $ | 37.45 | |||||||||
| Tangible book value per share using common shares outstanding (9) | $ | 38.43 | $ | 37.46 | $ | 35.10 | |||||||||
_______________
| (1) | Annualized. | |
| (2) | Total noninterest expense as a percentage of net interest income and total noninterest income. | |
| (3) | Represents a non-GAAP financial measure. For a reconciliation to the most comparable GAAP financial measure, see “Non-GAAP Financial Measures” below. | |
| (4) | Nonperforming assets consist of nonperforming loans (which include nonaccruing loans and accruing loans more than 90 days past due), foreclosed real estate and other repossessed assets. | |
| (5) | Nonperforming loans consist of nonaccruing loans and accruing loans 90 days or more past due. | |
| (6) | Common shares were calculated using shares outstanding of 7,535,330 at September 30, 2025, less 102,971 unvested restricted stock shares. | |
| (7) | Common shares were calculated using shares outstanding of 7,618,543 at June 30, 2025, less 103,063 unvested restricted stock shares. | |
| (8) | Common shares were calculated using shares outstanding of 7,817,172 at September 30, 2024, less 103,813 unvested restricted stock shares. | |
| (9) | Tangible book value per share using outstanding common shares excludes intangible assets. This ratio represents a non-GAAP financial measure. See “Non-GAAP Financial Measures” below. | |
| (Dollars in thousands) | For the Three Months Ended September 30, | For the Nine Months Ended September 30, | QTR Over QTR | YTD Over YTD | ||||||||||||||||||||
| Average Balances | 2025 | 2024 | 2025 | 2024 | $ Change | $ Change | ||||||||||||||||||
| Assets | ||||||||||||||||||||||||
| Loans receivable, net (1) | $ | 2,651,111 | $ | 2,536,106 | $ | 2,608,338 | $ | 2,504,129 | $ | 115,005 | $ | 104,209 | ||||||||||||
| Investment securities - taxable | 285,111 | 181,249 | 267,657 | 203,798 | 103,862 | 63,859 | ||||||||||||||||||
| Investment securities - nontaxable | 79,341 | 78,208 | 78,386 | 93,162 | 1,133 | (14,776 | ) | |||||||||||||||||
| Interest-bearing deposits and certificates of deposit at other financial institutions | 34,857 | 48,546 | 23,575 | 49,887 | (13,689 | ) | (26,312 | ) | ||||||||||||||||
| FHLB stock, at cost | 10,082 | 10,739 | 10,262 | 6,666 | (657 | ) | 3,596 | |||||||||||||||||
| Total interest-earning assets | 3,060,502 | 2,854,848 | 2,988,218 | 2,857,642 | 205,654 | 130,576 | ||||||||||||||||||
| Noninterest-earning assets | 124,955 | 105,941 | 123,785 | 98,099 | 19,014 | 25,686 | ||||||||||||||||||
| Total assets | $ | 3,185,457 | $ | 2,960,789 | $ | 3,112,003 | $ | 2,955,741 | $ | 224,668 | $ | 156,262 | ||||||||||||
| Liabilities | ||||||||||||||||||||||||
| Interest-bearing deposit accounts | $ | 1,947,830 | $ | 1,737,793 | $ | 1,880,007 | $ | 1,788,324 | $ | 210,037 | $ | 91,683 | ||||||||||||
| Borrowings | 176,234 | 191,279 | 181,633 | 144,635 | (15,045 | ) | 36,998 | |||||||||||||||||
| Subordinated notes | 49,633 | 49,567 | 49,617 | 49,550 | 66 | 67 | ||||||||||||||||||
| Total interest-bearing liabilities | 2,173,697 | 1,978,639 | 2,111,257 | 1,982,509 | 195,058 | 128,748 | ||||||||||||||||||
| Noninterest-bearing deposit accounts | 668,908 | 650,582 | 663,536 | 648,345 | 18,326 | 15,191 | ||||||||||||||||||
| Other noninterest-bearing liabilities | 38,746 | 40,876 | 35,081 | 41,965 | (2,130 | ) | (6,884 | ) | ||||||||||||||||
| Total liabilities | $ | 2,881,351 | $ | 2,670,097 | $ | 2,809,874 | $ | 2,672,819 | $ | 211,254 | $ | 137,055 | ||||||||||||
_______________
(1) Includes loans HFS.
Non-GAAP Financial Measures:
In addition to financial results presented in accordance with generally accepted accounting principles utilized in the United States (“GAAP”), this earnings release presents non-GAAP financial measures that include tangible book value per share, and tangible common equity ratio. Management believes that providing the Company’s tangible book value per share and tangible common equity ratio is consistent with the capital treatment utilized by the investment community, which excludes intangible assets from the calculation of risk-based capital ratios and facilitates comparison of the quality and composition of the Company's capital over time and to its competitors. Where applicable, the Company has also presented comparable GAAP information.
These non-GAAP financial measures have inherent limitations, are not required to be uniformly applied, and are not audited. They should not be considered in isolation or as a substitute for total stockholders' equity or operating results determined in accordance with GAAP. These non-GAAP measures may not be comparable to similarly titled measures reported by other companies.
Reconciliation of the GAAP book value per share and common equity ratio and the non-GAAP tangible book value per share and tangible common equity ratio is presented below.
| (Dollars in thousands, except share and per share amounts) | September 30, | June 30, | September 30, | ||||||||||
| Tangible Book Value Per Share: | 2025 | 2025 | 2024 | ||||||||||
| Stockholders' equity (GAAP) | $ | 300,511 | $ | 297,203 | $ | 288,902 | |||||||
| Less: goodwill and core deposit intangible, net | (14,876 | ) | (15,663 | ) | (18,178 | ) | |||||||
| Tangible common stockholders' equity (non-GAAP) | $ | 285,635 | $ | 281,540 | $ | 270,724 | |||||||
| Common shares outstanding at end of period | 7,432,359 | (1) | 7,515,480 | (2) | 7,713,359 | (3) | |||||||
| Book value per share (GAAP) | $ | 40.43 | $ | 39.55 | $ | 37.45 | |||||||
| Tangible book value per share (non-GAAP) | $ | 38.43 | $ | 37.46 | $ | 35.10 | |||||||
| Tangible Common Equity Ratio: | |||||||||||||
| Total assets (GAAP) | $ | 3,208,825 | $ | 3,176,013 | $ | 2,970,208 | |||||||
| Less: goodwill and core deposit intangible assets | (14,876 | ) | (15,663 | ) | (18,178 | ) | |||||||
| Tangible assets (non-GAAP) | $ | 3,193,949 | $ | 3,160,350 | $ | 2,952,030 | |||||||
| Common equity ratio (GAAP) | 9.37 | % | 9.36 | % | 9.73 | % | |||||||
| Tangible common equity ratio (non-GAAP) | 8.94 | 8.91 | 9.17 | ||||||||||
_______________
| (1) | Common shares were calculated using shares outstanding of 7,535,330 at September 30, 2025, less 102,971 unvested restricted stock shares. | |
| (2) | Common shares were calculated using shares outstanding of 7,618,543 at June 30, 2025, less 103,063 unvested restricted stock shares. | |
| (3) | Common shares were calculated using shares outstanding of 7,817,172 at September 30, 2024, less 103,813 unvested restricted stock shares. | |
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 (FSBW) report for Q3 2025 net income and EPS?
When is the FS Bancorp (FSBW) dividend payable and what is the amount?
How did FS Bancorp (FSBW) deposits change in Q3 2025?
What happened to FS Bancorp (FSBW) loans and loan growth in Q3 2025?
Did FS Bancorp (FSBW) buy back shares in Q3 2025 and how much remained?
How did FS Bancorp (FSBW) capital ratios change in Q3 2025?
