FS Bancorp(FSBW)

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FS Bancorp (FSBW) Q3 Earnings and Revenues Surpass Estimates
ZACKS· 2025-10-21 23:21
FS Bancorp (FSBW) came out with quarterly earnings of $1.18 per share, beating the Zacks Consensus Estimate of $1.08 per share. This compares to earnings of $1.29 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +9.26%. A quarter ago, it was expected that this bank holding company would post earnings of $0.97 per share when it actually produced earnings of $0.99, delivering a surprise of +2.06%.Over the last four quarters, the ...
FS Bancorp(FSBW) - 2025 Q3 - Quarterly Results
2025-10-21 21:44
[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) This section provides an overview of FS Bancorp, Inc.'s financial performance for the third quarter and nine months ended September 30, 2025, highlighting key operational metrics and dividend declarations [Third Quarter & Nine Months Ended Financial Performance](index=1&type=section&id=Third%20Quarter%20%26%20Nine%20Months%20Ended%20Financial%20Performance) FS Bancorp, Inc. reported a decrease in net income for both the third quarter and the nine months ended September 30, 2025, compared to the prior year. Diluted EPS also saw a corresponding decline Net Income and Diluted EPS Summary | Metric | Q3 2025 ($) | Q3 2024 ($) | YoY Change (%) | 9M 2025 ($) | 9M 2024 ($) | YoY Change (%) | | :----- | :---------- | :---------- | :------------- | :---------- | :---------- | :------------- | | Net Income | 9.2 million | 10.3 million | (10.7) | 24.9 million | 27.6 million | (9.8) | | Diluted EPS | 1.18 | 1.29 | (8.4) | 3.18 | 3.45 | (7.8) | [Key Financial & Operational Highlights](index=1&type=section&id=Key%20Financial%20%26%20Operational%20Highlights) The third quarter of 2025 saw net income of $9.2 million, significant growth in total deposits, a substantial decrease in borrowings, and a modest increase in net loans. Consumer loans experienced a slight decline, while book value and tangible book value per share improved. The company also engaged in share repurchases - **Net interest margins (NIM)** remain strong with expanding yields on earning assets and a stable, well-positioned mix of funding liabilities[2](index=2&type=chunk) Key Financial and Operational Metrics | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | QoQ Change | QoQ Change (%) | YoY Change | YoY Change (%) | | :-------------------------- | :----------- | :----------- | :----------- | :--------- | :------------- | :--------- | :------------- | | Net Income (Q3) ($ million) | 9.2 | 7.7 | 10.3 | 1.5 | 19.5% | (1.1) | (10.7%) | | Total Deposits ($ billion) | 2.69 | 2.55 | 2.43 | 0.1331 | 5.2% | 0.2592 | 10.7% | | Noninterest-bearing deposits ($ million) | 665.9 | 654.1 | 657.8 | 11.8 | 1.8% | 8.1 | 1.2% | | Borrowings ($ million) | 129.3 | 234.3 | 163.8 | (105.0) | (44.8%) | (34.5) | (21.1%) | | Loans receivable, net ($ billion) | 2.60 | 2.58 | 2.46 | 0.0173 | 0.7% | 0.1359 | 5.5% | | Consumer loans ($ million) | 600.8 | 606.3 | 632.4 | (5.5) | (0.91%) | (31.6) | (5.0%) | | Book value per share ($) | 40.43 | 39.55 | 37.45 | 0.88 | 2.2% | 2.98 | 8.0% | | Tangible book value per share ($) | 38.43 | 37.46 | 35.10 | 0.97 | 2.6% | 3.33 | 9.5% | - 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**[4](index=4&type=chunk) [Dividend Declaration](index=1&type=section&id=Dividend%20Declaration) The Board of Directors approved the 51st consecutive quarterly cash dividend of $0.28 per common share, demonstrating a commitment to long-term shareholders. The dividend is payable on November 20, 2025, to shareholders of record as of November 6, 2025 - Approved the **51st consecutive quarterly cash dividend** of **$0.28 per common share**[3](index=3&type=chunk) [Segment Reporting](index=2&type=section&id=Segment%20Reporting) This section details the financial performance and operational overview of the Company's Commercial and Consumer Banking and Home Lending segments [Segment Overview](index=2&type=section&id=Segment%20Overview) The Company operates through two primary reportable segments: Commercial and Consumer Banking, which offers diversified financial products and services, and Home Lending, which primarily originates residential mortgage loans for sale in secondary markets - Commercial and Consumer Banking segment provides diversified financial products and services, including deposit products, various lending, and cash management[5](index=5&type=chunk) - Home Lending segment originates one-to-four-family residential mortgage loans primarily for sale in the secondary markets[5](index=5&type=chunk) [Three Months Ended September 30, 2025 & 2024](index=2&type=section&id=Three%20Months%20Ended%20September%2030%2C%202025%20%26%202024) For the third quarter of 2025, the Commercial and Consumer Banking segment reported net income of $8.4 million, while the Home Lending segment reported $775,000. Both segments experienced a decrease in net income compared to the same period in 2024 Segment Performance for Three Months Ended September 30 | Metric (Q3) | Commercial and Consumer Banking (2025) ($ thousand) | Home Lending (2025) ($ thousand) | Total (2025) ($ thousand) | Commercial and Consumer Banking (2024) ($ thousand) | Home Lending (2024) ($ thousand) | Total (2024) ($ thousand) | | :-------------------------------- | :------------------------------------- | :------------------ | :----------- | :------------------------------------- | :------------------ | :----------- | | Net interest income | 30,810 | 2,880 | 33,690 | 28,612 | 2,632 | 31,244 | | Provision for credit losses | (2,150) | (159) | (2,309) | (1,331) | (182) | (1,513) | | Noninterest income | 2,079 | 3,515 | 5,594 | 2,257 | 3,710 | 5,967 | | Noninterest expense | (20,134) | (5,254) | (25,388) | (20,199) | (5,633) | (25,832) | | Net income | 8,402 | 775 | 9,177 | 9,268 | 1,018 | 10,286 | | Total average assets | 2,523,410 | 662,047 | 3,185,457 | 2,347,854 | 612,935 | 2,960,789 | | FTEs | 460 | 115 | 575 | 442 | 117 | 559 | - Regulatory capital ratios for the Bank at September 30, 2025, were **13.8% for total risk-based capital** and **11.0% for Tier 1 leverage capital**, slightly lower than June 30, 2025[7](index=7&type=chunk) [Nine Months Ended September 30, 2025 & 2024](index=3&type=section&id=Nine%20Months%20Ended%20September%2030%2C%202025%20%26%202024) For the nine months ended September 30, 2025, total net income was $24.9 million, a decrease from $27.6 million in the comparable period of 2024. The Commercial and Consumer Banking segment contributed $23.6 million, while the Home Lending segment contributed $1.4 million Segment Performance for Nine Months Ended September 30 | Metric (9M) | Commercial and Consumer Banking (2025) ($ thousand) | Home Lending (2025) ($ thousand) | Total (2025) ($ thousand) | Commercial and Consumer Banking (2024) ($ thousand) | Home Lending (2024) ($ thousand) | Total (2024) ($ thousand) | | :-------------------------------- | :------------------------------------- | :------------------ | :----------- | :------------------------------------- | :------------------ | :----------- | | Net interest income | 88,397 | 8,387 | 96,784 | 84,749 | 7,242 | 91,991 | | Provision for credit losses | (5,320) | (602) | (5,922) | (3,796) | (193) | (3,989) | | Noninterest income | 6,621 | 9,269 | 15,890 | 6,919 | 10,027 | 16,946 | | Noninterest expense | (60,624) | (15,321) | (75,945) | (58,250) | (14,968) | (73,218) | | Net income | 23,557 | 1,369 | 24,926 | 25,369 | 2,273 | 27,642 | | Total average assets | 2,468,543 | 643,460 | 3,112,003 | 2,369,740 | 586,001 | 2,955,741 | | FTEs | 460 | 115 | 575 | 442 | 117 | 559 | [Balance Sheet Analysis](index=4&type=section&id=Balance%20Sheet%20Analysis) This section provides a detailed analysis of the Company's assets, liabilities, and equity, including loan portfolio composition and regulatory capital ratios [Asset Summary](index=4&type=section&id=Asset%20Summary) Total assets increased by 1% quarter-over-quarter and 8% year-over-year to $3.21 billion at September 30, 2025, driven by growth in the loan portfolio and selective investment activities. The loan portfolio saw increases in commercial and speculative construction and development loans, and C&I loans, while consumer loans decreased [Total Assets Overview](index=4&type=section&id=Total%20Assets%20Overview) Total assets grew to $3.21 billion at September 30, 2025, reflecting the Company's strategy of balance sheet expansion through loan origination and investment, supported by on-balance sheet liquidity and borrowings Total Assets Summary | Asset Category | Sep 30, 2025 ($ thousand) | Jun 30, 2025 ($ thousand) | Sep 30, 2024 ($ thousand) | QoQ Change ($ thousand) | QoQ Change (%) | YoY Change ($ thousand) | YoY Change (%) | | :------------------------------------------ | :------------------ | :------------------ | :------------------ | :---------------- | :------------- | :---------------- | :------------- | | Total cash and cash equivalents | 61,280 | 33,195 | 40,340 | 28,085 | 85 | 20,940 | 52 | | Securities available-for-sale, at fair value | 311,695 | 302,692 | 228,199 | 9,003 | 3 | 83,496 | 37 | | Loans receivable, net | 2,599,601 | 2,582,272 | 2,463,697 | 17,329 | 1 | 135,904 | 6 | | 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[11](index=11&type=chunk) [Loan Portfolio Composition](index=5&type=section&id=Loan%20Portfolio%20Composition) Total gross loans increased to $2.63 billion in Q3 2025, primarily driven by growth in commercial and speculative construction and development loans and C&I loans. Conversely, consumer loans experienced a decline Loan Portfolio Composition by Category | Loan Category | Sep 30, 2025 ($ thousand) | Sep 30, 2025 (%) | Jun 30, 2025 ($ thousand) | Jun 30, 2025 (%) | Sep 30, 2024 ($ thousand) | Sep 30, 2024 (%) | QoQ Change ($ thousand) | YoY Change ($ thousand) | | :------------------------------------ | :------------------ | :--------------- | :------------------ | :--------------- | :------------------ | :--------------- | :-------------- | :-------------- | | Total CRE loans | 932,689 | 35.5% | 916,137 | 35.0% | 832,013 | 33.4% | 16,552 | 100,676 | | Total residential real estate loans | 769,903 | 29.2% | 779,518 | 29.8% | 718,477 | 28.8% | (9,615) | 51,426 | | Total consumer loans | 600,779 | 22.9% | 606,291 | 23.2% | 632,417 | 25.3% | (5,512) | (31,638) | | 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 | - Commercial and speculative construction and development loans increased **$26.0 million**, led by speculative residential vertical projects[12](index=12&type=chunk) - C&I loans increased **$16.6 million**[12](index=12&type=chunk) [Construction Loan Composition](index=7&type=section&id=Construction%20Loan%20Composition) Total construction loans reached $379.98 million at September 30, 2025, with speculative residential construction – vertical projects being the largest component and primary driver of growth Construction Loan Portfolio Breakdown | Construction Type | Sep 30, 2025 ($ thousand) | Sep 30, 2025 (%) | Jun 30, 2025 ($ thousand) | Jun 30, 2025 (%) | Sep 30, 2024 ($ thousand) | Sep 30, 2024 (%) | | :---------------------------------------------------- | :------------------ | :--------------- | :------------------ | :--------------- | :------------------ | :--------------- | | Speculative residential construction – vertical | 217,821 | 57.3% | 200,375 | 56.5% | 145,549 | 49.8% | | Multi-family | 29,751 | 7.8% | 23,119 | 6.5% | 30,931 | 10.6% | | Custom construction – single family residential | 44,299 | 11.7% | 45,570 | 12.8% | 43,528 | 14.9% | | Total | 379,980 | 100.0% | 354,747 | 100.0% | 292,366 | 100.0% | [One-to-Four-Family Loan Originations & Sales](index=7&type=section&id=One-to-Four-Family%20Loan%20Originations%20%26%20Sales) Originations of one-to-four-family loans decreased both quarter-over-quarter and year-over-year in Q3 2025, primarily due to a decline in purchase loans. However, loan sales volume increased QoQ, attributed to seasonal homebuying, and gross margins on home loan sales improved One-to-Four-Family Loan Originations and Sales | Origination Type (Q3) | Sep 30, 2025 ($ thousand) | Sep 30, 2025 (%) | Jun 30, 2025 ($ thousand) | Jun 30, 2025 (%) | Sep 30, 2024 ($ thousand) | Sep 30, 2024 (%) | QoQ Change ($ thousand) | QoQ Change (%) | YoY Change ($ thousand) | YoY 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%) | - The Company sold **$156.4 million** of one-to-four-family loans in Q3 2025, an increase from **$127.1 million** in the previous quarter, primarily due to seasonal homebuying factors[14](index=14&type=chunk) - Gross margins on home loan sales increased to **3.14%** for the quarter ended September 30, 2025, up from **3.06%** in the previous quarter and **2.96%** in the same quarter one year ago[14](index=14&type=chunk) [Liabilities and Equity Summary](index=8&type=section&id=Liabilities%20and%20Equity%20Summary) Total deposits increased significantly, primarily driven by brokered CDs, while borrowings decreased substantially. Shareholders' equity saw a modest increase, influenced by net income and unrealized gains on securities, partially offset by share repurchases and dividends. The Bank remains well-capitalized, exceeding all regulatory requirements [Deposits](index=8&type=section&id=Deposits) Total deposits increased by 5.2% quarter-over-quarter and 10.7% year-over-year to $2.69 billion at September 30, 2025, mainly due to a rise in brokered certificates of deposit and other deposits. Noninterest-bearing deposits also saw a slight increase Deposit Composition by Category | Deposit Category | Sep 30, 2025 ($ thousand) | Sep 30, 2025 (%) | Jun 30, 2025 ($ thousand) | Jun 30, 2025 (%) | Sep 30, 2024 ($ thousand) | Sep 30, 2024 (%) | QoQ Change ($ thousand) | YoY Change ($ thousand) | | :----------------------- | :------------------ | :--------------- | :------------------ | :--------------- | :------------------ | :--------------- | :-------------- | :-------------- | | Noninterest-bearing checking | 648,661 | 24.1% | 643,573 | 25.2% | 641,270 | 26.4% | 5,088 | 7,391 | | Total interest-bearing checking | 199,527 | 7.4% | 211,260 | 8.3% | 165,944 | 6.8% | (11,733) | 33,583 | | Total money market | 354,333 | 13.2% | 350,799 | 13.7% | 340,049 | 14.0% | 3,534 | 14,284 | | Retail CDs | 924,925 | 34.4% | 891,355 | 34.9% | 849,302 | 35.0% | 33,570 | 75,623 | | Brokered CDs | 369,403 | 13.8% | 280,754 | 11.0% | 250,240 | 10.3% | 88,649 | 119,163 | | Total deposits | 2,686,492 | 100.0% | 2,553,375 | 100.0% | 2,427,331 | 100.0% | 133,117 | 259,161 | - Uninsured deposits were approximately **$694.4 million** at September 30, 2025, an increase from **$677.2 million** at June 30, 2025, and **$644.9 million** at September 30, 2024[17](index=17&type=chunk) [Borrowings & Shareholders' Equity](index=8&type=section&id=Borrowings%20%26%20Shareholders%27%20Equity) Borrowings decreased significantly by 44.8% QoQ and 21.1% YoY. Shareholders' equity increased QoQ due to net income and unrealized gains on available-for-sale securities, partially offset by share repurchases and cash dividends Borrowings and Shareholders' Equity Summary | Metric | Sep 30, 2025 ($ thousand) | Jun 30, 2025 ($ thousand) | Sep 30, 2024 ($ thousand) | QoQ Change ($ thousand) | YoY Change ($ thousand) | | :------------------ | :------------------ | :------------------ | :------------------ | :-------------- | :-------------- | | Borrowings | 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 share | 40.43 | 39.55 | 37.45 | 0.88 | 2.98 | - The increase in stockholders' equity was primarily due to net income of **$9.2 million** and an unrealized gain in fair value on securities available for sale of **$2.9 million** (net of tax), partially offset by share repurchases of **$5.5 million** and cash dividends paid of **$3.8 million**[18](index=18&type=chunk) [Regulatory Capital Ratios](index=9&type=section&id=Regulatory%20Capital%20Ratios) As of September 30, 2025, the Bank maintained strong regulatory capital ratios, exceeding all requirements and being classified as 'well capitalized' by the FDIC Bank and Company Regulatory Capital Ratios | Capital Ratio (Sep 30, 2025) | Bank | Company | | :----------------------------- | :----- | :------ | | Total risk-based capital | 13.81% | 13.93% | | Tier 1 leverage capital | 10.96% | 9.49% | | CET 1 capital | 12.64% | 10.95% | [Credit Quality](index=9&type=section&id=Credit%20Quality) This section analyzes the Company's credit quality, focusing on the Allowance for Credit Losses, nonperforming loans, and classified loans [Allowance for Credit Losses (ACL)](index=9&type=section&id=Allowance%20for%20Credit%20Losses%20(ACL)) The ending ACL balance decreased quarter-over-quarter and year-over-year to $30.06 million at September 30, 2025. This was primarily influenced by increased charge-offs, notably a $2.3 million partial charge-off for a commercial construction loan, which had been fully reserved in prior periods Allowance for Credit Losses Activity | ACL Metric ($ thousand) | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | QoQ Change | YoY Change | | :-------------------- | :----------- | :----------- | :----------- | :--------- | :--------- | | Beginning ACL balance | 32,189 | 31,653 | 31,238 | 536 | 951 | | Provision | 1,851 | 1,715 | 1,591 | 136 | 260 | | Total Charge-offs | (4,344) | (1,640) | (1,964) | (2,704) | (2,380) | | Total Recoveries | 360 | 461 | 367 | (101) | (7) | | Ending ACL balance | 30,056 | 32,189 | 31,232 | (2,133) | (1,176) | - A **$2.3 million charge-off** for a commercial construction - office project was recognized in Q3 2025, which was fully reserved in previous periods, resulting in no income statement impact from increased provisions[21](index=21&type=chunk) [Nonperforming Loans](index=10&type=section&id=Nonperforming%20Loans) Total nonperforming loans decreased quarter-over-quarter but increased significantly year-over-year to $18.38 million at September 30, 2025. This rise was primarily driven by two commercial construction loans and increased delinquencies in consumer and mortgage loans, partially offset by a decrease in C&I nonaccrual loans Nonperforming Loans by Category | Nonperforming Loan Category ($ thousand) | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | QoQ Change | YoY Change | | :------------------------------- | :----------- | :----------- | :----------- | :--------- | :--------- | | Total CRE loans | 11,197 | 11,129 | 5,867 | 68 | 5,330 | | Total residential real estate loans | 2,116 | 2,060 | 322 | 56 | 1,794 | | Total consumer loans | 4,462 | 3,945 | 2,008 | 517 | 2,454 | | C&I | 600 | 1,862 | 2,575 | (1,262) | (1,975) | | Total nonperforming loans | 18,375 | 18,996 | 10,772 | (621) | 7,603 | - The year-over-year increase in nonaccrual loans was partly driven by two commercial construction loans, which remain in active development, contributing a **$4.4 million net increase**[22](index=22&type=chunk) - Increases in consumer loan and mortgage loan delinquencies also contributed to the overall rise in nonaccrual loans[22](index=22&type=chunk) [Classified Loans](index=10&type=section&id=Classified%20Loans) Total classified loans increased both quarter-over-quarter and year-over-year to $27.05 million at September 30, 2025. This increase was primarily due to higher classified CRE, residential real estate, and consumer loans, partially offset by a decrease in C&I classified loans Classified Loans by Category | Classified Loan Category ($ thousand) | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | QoQ Change | YoY Change | | :---------------------------- | :----------- | :----------- | :----------- | :--------- | :--------- | | Total CRE loans | 14,665 | 11,129 | 8,340 | 3,536 | 6,325 | | Total residential real estate loans | 3,963 | 4,634 | 2,952 | (671) | 1,011 | | Total consumer loans | 4,462 | 3,945 | 2,007 | 517 | 2,455 | | 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](index=11&type=section&id=Operating%20Results) This section reviews the Company's operating performance, including net interest income, provision for credit losses, noninterest income, and noninterest expense [Net Interest Income & Net Interest Margin (NIM)](index=11&type=section&id=Net%20Interest%20Income%20%26%20Net%20Interest%20Margin%20(NIM)) Net interest income increased for both the three and nine months ended September 30, 2025, driven by higher interest income on loans and investment securities, partially offset by increased interest expense. Net Interest Margin (NIM) also saw slight improvements Net Interest Income and Margin Trends | Metric | Q3 2025 ($ thousand) | Q3 2024 ($ thousand) | YoY Change ($ thousand) | YoY Change (%) | 9M 2025 ($ thousand) | 9M 2024 ($ thousand) | YoY Change ($ thousand) | YoY Change (%) | | :-------------------- | :----------- | :----------- | :-------------- | :------------- | :----------- | :----------- | :-------------- | :------------- | | Net interest income | 33,690 | 31,244 | 2,446 | 7.8% | 96,784 | 91,991 | 4,793 | 5.2% | | Total interest income | 50,973 | 47,043 | 3,930 | 8.4% | 146,463 | 137,863 | 8,600 | 6.2% | | Total interest expense | 17,283 | 15,799 | 1,484 | 9.4% | 49,679 | 45,872 | 3,807 | 8.3% | | NIM (annualized) | 4.37% | 4.35% | +2 bps | | 4.33% | 4.30% | +3 bps | | | Average total cost of funds | 2.41% | 2.39% | +2 bps | | 2.39% | 2.33% | +6 bps | | - The **$3.9 million increase** in total interest income for Q3 was primarily due to a **$2.9 million increase** in interest income on loans receivable, driven by net loan growth and higher loan yields[24](index=24&type=chunk) - The **$1.5 million increase** in total interest expense for Q3 was primarily the result of higher average deposit balances used to fund asset growth[24](index=24&type=chunk) [Provision for Credit Losses & Net Charge-offs](index=11&type=section&id=Provision%20for%20Credit%20Losses%20%26%20Net%20Charge-offs) The provision for credit losses on loans increased significantly for both the three and nine months ended September 30, 2025, reflecting net loan growth and a rise in net charge-off activity, largely due to a commercial construction loan Provision for Credit Losses and Net Charge-offs | Metric | Q3 2025 ($ thousand) | Q3 2024 ($ thousand) | YoY Change ($ thousand) | YoY Change (%) | 9M 2025 ($ thousand) | 9M 2024 ($ thousand) | YoY Change ($ thousand) | YoY Change (%) | | :-------------------------- | :----------- | :----------- | :-------------- | :------------- | :----------- | :----------- | :-------------- | :------------- | | Provision for credit losses | 2,309 | 1,513 | 796 | 52.6% | 5,922 | 3,989 | 1,933 | 48.5% | | Net charge-offs (Q3) | 4,000 | 1,600 | 2,400 | 150.0% | | | | | | Net charge-offs (9M) | | | | | 6,900 | 4,300 | 2,600 | 60.5% | - The increase in Q3 net charge-offs was primarily due to a **$2.3 million partial charge-off** of a commercial construction loan[29](index=29&type=chunk) - For the nine months, net charge-offs increased due to the commercial construction loan charge-off and a **$1.3 million increase** in net charge-offs on indirect home improvement loans, partially offset by decreases in commercial business and marine loan charge-offs[29](index=29&type=chunk) [Noninterest Income](index=11&type=section&id=Noninterest%20Income) Total noninterest income decreased for both the three and nine months ended September 30, 2025. This decline was mainly attributed to lower service charges and fees, no gain on sale of MSRs in the current quarter, and a decrease in gain on sale of loans Noninterest Income Breakdown | Metric | Q3 2025 ($ thousand) | Q3 2024 ($ thousand) | YoY Change ($ thousand) | YoY Change (%) | 9M 2025 ($ thousand) | 9M 2024 ($ thousand) | YoY Change ($ thousand) | YoY Change (%) | | :-------------------------- | :----------- | :----------- | :-------------- | :------------- | :----------- | :----------- | :-------------- | :------------- | | Total noninterest income | 5,594 | 5,967 | (373) | (6.2%) | 15,890 | 16,946 | (1,056) | (6.2%) | | Service charges and fee income | 2,326 | 2,482 | (156) | (6.3%) | 6,894 | 7,513 | (619) | (8.2%) | | Gain on sale of MSRs | — | 141 | (141) | NM | — | 8,356 | NM | NM | | Gain on sale of loans | 2,439 | 2,523 | (84) | (3.3%) | 6,111 | 6,824 | (713) | (10.4%) | | Other noninterest income | 560 | 558 | 2 | 0.4% | 2,112 | 1,355 | 757 | 55.9% | - The decrease in 9M noninterest income was partially offset by a **$757,000 increase** in other noninterest income, primarily due to a **$358,000 gain** on sales of nonmarketable equity securities, **$219,000** in bank owned life insurance proceeds, and a **$152,000 increase** in brokered loans fees[30](index=30&type=chunk) [Noninterest Expense](index=12&type=section&id=Noninterest%20Expense) Total noninterest expense slightly decreased quarter-over-quarter but increased year-over-year for the nine months ended September 30, 2025. The Q3 decrease was mainly due to a recovery in MSRs and lower data processing costs, while the 9M increase was driven by higher salaries and benefits and operations expense Noninterest Expense Breakdown | Metric | Q3 2025 ($ thousand) | Q3 2024 ($ thousand) | YoY Change ($ thousand) | YoY Change (%) | 9M 2025 ($ thousand) | 9M 2024 ($ thousand) | YoY Change ($ thousand) | YoY Change (%) | | :-------------------------- | :----------- | :----------- | :-------------- | :------------- | :----------- | :----------- | :-------------- | :------------- | | Total noninterest expense | 25,388 | 25,832 | (444) | (1.7%) | 75,945 | 73,218 | 2,727 | 3.7% | | Salaries and benefits | 14,415 | 13,985 | 430 | 3.1% | 43,037 | 40,920 | 2,117 | 5.2% | | Data processing | 1,784 | 2,156 | (372) | (17.3%) | 5,966 | 6,172 | (206) | (3.3%) | | (Recovery) impairment of servicing rights | (6) | 506 | (512) | (116.0%) | 23 | 545 | (522) | (95.8%) | - The Q3 decrease in noninterest expense was primarily due to a **$6,000 recovery** in MSRs (compared to the prior year's **$506,000 impairment**) and a **$372,000 decrease** in data processing[31](index=31&type=chunk) - The 9M increase was mainly due to a **$2.1 million increase** in salaries and benefits (primarily due to competitive wage adjustments) and an **$889,000 increase** in operations expense[31](index=31&type=chunk) [Company Information](index=12&type=section&id=Company%20Information) Contact information for key executives of FS Bancorp, Inc. is provided for inquiries [About FS Bancorp, Inc.](index=12&type=section&id=About%20FS%20Bancorp%2C%20Inc.) FS Bancorp, Inc. is the holding company for 1st Security Bank of Washington, providing a range of loan and deposit services to small- and middle-market businesses and individuals in Washington and Oregon through its extensive branch network and loan production offices - FS Bancorp, Inc. is the holding company for **1st Security Bank of Washington**[32](index=32&type=chunk) - The Bank offers a range of loan and deposit services primarily to small- and middle-market businesses and individuals in Washington and Oregon[32](index=32&type=chunk) - Operates through **27 bank branches**, one headquarters office, and loan production offices in various suburban communities in the greater Puget Sound area, the Tri-Cities, and Vancouver, Washington[32](index=32&type=chunk) [Forward-Looking Statements](index=13&type=section&id=Forward-Looking%20Statements) This section identifies forward-looking statements and cautions that actual results may differ materially from current expectations due to various inherent uncertainties and external factors. These factors include adverse economic conditions, changes in interest rates, competitive pressures, and regulatory changes. The Company explicitly disclaims any obligation to revise these statements - Forward-looking statements are identified by specific phrases such as 'believe,' 'will,' 'are expected to,' 'estimate,' and 'project'[33](index=33&type=chunk) - Actual results may differ materially due to factors including adverse economic conditions, changes in interest rates, inflation, geopolitical developments, competitive pressures, and regulatory changes[33](index=33&type=chunk) - The Company does not undertake and specifically disclaims any obligation to revise any forward-looking statements[34](index=34&type=chunk) [Consolidated Financial Statements](index=14&type=section&id=Consolidated%20Financial%20Statements) This section presents the Company's consolidated balance sheets and statements of income for the reported periods [Consolidated Balance Sheets](index=14&type=section&id=Consolidated%20Balance%20Sheets) The consolidated balance sheets for FS Bancorp, Inc. and Subsidiary show total assets of $3.21 billion at September 30, 2025, an increase of 1% QoQ and 8% YoY. Total deposits increased by 5% QoQ and 11% YoY, while borrowings decreased significantly Consolidated Balance Sheet Highlights | Metric ($ thousand) | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | QoQ Change (%) | YoY Change (%) | | :-------------------------------- | :----------- | :----------- | :----------- | :------------- | :------------- | | TOTAL ASSETS | 3,208,825 | 3,176,013 | 2,970,208 | 1 | 8 | | Total deposits | 2,686,492 | 2,553,375 | 2,427,331 | 5 | 11 | | Borrowings | 129,305 | 234,305 | 163,806 | (45) | (21) | | Total liabilities | 2,908,314 | 2,878,810 | 2,681,306 | 1 | 8 | | Total stockholders' equity | 300,511 | 297,203 | 288,902 | 1 | 4 | [Consolidated Statements of Income (Three Months)](index=16&type=section&id=Consolidated%20Statements%20of%20Income%20(Three%20Months)) For the three months ended September 30, 2025, net income was $9.18 million, an increase of 19% QoQ but a decrease of 11% YoY. Net interest income increased by 5% QoQ and 8% YoY, while provision for credit losses increased significantly Consolidated Statements of Income (Three Months Ended September 30) | Metric ($ thousand) | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | QoQ Change (%) | YoY Change (%) | | :------------------------------------------ | :----------- | :----------- | :----------- | :------------- | :------------- | | Total interest and dividend income | 50,973 | 48,703 | 47,043 | 5 | 8 | | 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 | | Total noninterest income | 5,594 | 5,170 | 5,967 | 8 | (6) | | Total noninterest expense | 25,388 | 25,502 | 25,832 | (0) | (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) | | Diluted earnings per share | 1.18 | 0.99 | 1.29 | 19 | (9) | [Consolidated Statements of Income (Nine Months)](index=17&type=section&id=Consolidated%20Statements%20of%20Income%20(Nine%20Months)) For the nine months ended September 30, 2025, net income was $24.93 million, a decrease of 10% YoY. Net interest income increased by 5% YoY, but this was offset by a 48% increase in provision for credit losses and a 6% decrease in total noninterest income Consolidated Statements of Income (Nine Months Ended September 30) | Metric ($ thousand) | Sep 30, 2025 | Sep 30, 2024 | YoY Change (%) | | :------------------------------------------ | :----------- | :----------- | :------------- | | Total interest and dividend income | 146,463 | 137,863 | 6 | | 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 | | Total noninterest income | 15,890 | 16,946 | (6) | | 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) | | Diluted earnings per share | 3.18 | 3.45 | (8) | [Key Financial Ratios and Data](index=18&type=section&id=Key%20Financial%20Ratios%20and%20Data) This section provides key financial performance, asset quality, average balance, and per common share data for the Company [Performance Ratios](index=18&type=section&id=Performance%20Ratios) Performance ratios for Q3 and 9M 2025 show an increase in Return on Assets and Return on Equity QoQ, but a decrease YoY. Yield on average interest-earning assets and net interest margin increased, while the efficiency ratio improved QoQ but slightly worsened YoY for 9M Key Performance Ratios | Performance Ratio | Q3 2025 | Q3 2024 | 9M 2025 | 9M 2024 | | :-------------------------------------------------- | :------ | :------ | :------ | :------ | | Return on assets | 1.14% | 1.38% | 1.07% | 1.25% | | Return on equity | 11.97% | 14.08% | 11.03% | 13.05% | | Yield on average interest-earning assets | 6.61% | 6.56% | 6.55% | 6.44% | | Average total cost of funds | 2.41% | 2.39% | 2.39% | 2.33% | | Net interest margin | 4.37% | 4.35% | 4.33% | 4.30% | | Efficiency ratio | 64.63% | 69.42% | 67.40% | 67.21% | | Common equity ratio | 9.37% | 9.73% | | | | Tangible common equity ratio | 8.94% | 9.17% | | | [Asset Quality Ratios and Data](index=18&type=section&id=Asset%20Quality%20Ratios%20and%20Data) Asset quality ratios at September 30, 2025, indicate an increase in nonperforming assets and loans relative to total assets and gross loans year-over-year. The ratio of ACL to nonperforming loans significantly decreased YoY, suggesting a lower coverage of nonperforming loans by the allowance Asset Quality Ratios | Asset Quality Ratio | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :------------------------------------------------ | :----------- | :----------- | :----------- | | Nonperforming assets to total assets at end of period | 0.57% | 0.60% | 0.36% | | Nonperforming loans to total gross loans | 0.70% | 0.73% | 0.43% | | ACL – loans to nonperforming loans | 163.77% | 168.89% | 290.07% | | ACL – loans to total gross loans | 1.14% | 1.23% | 1.25% | [Average Balances](index=19&type=section&id=Average%20Balances) Average total assets increased by $224.7 million QoQ and $156.3 million YoY for the three and nine months ended September 30, 2025, respectively. Average loans receivable, net, and interest-bearing deposit accounts also showed increases Average Balance Sheet Metrics | Average Balance Metric ($ thousand) | Q3 2025 | Q3 2024 | 9M 2025 | 9M 2024 | Q3 YoY Change ($ thousand) | 9M YoY Change ($ thousand) | | :---------------------------------------------------- | :-------- | :-------- | :-------- | :-------- | :----------------- | :----------------- | | Loans receivable, net | 2,651,111 | 2,536,106 | 2,608,338 | 2,504,129 | 115,005 | 104,209 | | Total interest-earning assets | 3,060,502 | 2,854,848 | 2,988,218 | 2,857,642 | 205,654 | 130,576 | | Total assets | 3,185,457 | 2,960,789 | 3,112,003 | 2,955,741 | 224,668 | 156,262 | | Interest-bearing deposit accounts | 1,947,830 | 1,737,793 | 1,880,007 | 1,788,324 | 210,037 | 91,683 | | Total liabilities | 2,881,351 | 2,670,097 | 2,809,874 | 2,672,819 | 211,254 | 137,055 | [Per Common Share Data](index=19&type=section&id=Per%20Common%20Share%20Data) Diluted earnings per share decreased year-over-year for both the third quarter and nine months ended September 30, 2025. However, book value per share and tangible book value per share both increased quarter-over-quarter and year-over-year Per Common Share Data | Per Share Data | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :------------------------------------------ | :----------- | :----------- | :----------- | | Basic earnings per share | 1.20 | 1.00 | 1.32 | | Diluted earnings per share | 1.18 | 0.99 | 1.29 | | Book value per share using common shares outstanding | 40.43 | 39.55 | 37.45 | | Tangible book value per share using common shares outstanding | 38.43 | 37.46 | 35.10 | [Non-GAAP Financial Measures](index=20&type=section&id=Non-GAAP%20Financial%20Measures) This section explains and reconciles non-GAAP financial measures used by the Company to provide additional insights into its financial performance and capital structure [Explanation of Non-GAAP Measures](index=20&type=section&id=Explanation%20of%20Non-GAAP%20Measures) The report includes non-GAAP financial measures such as tangible book value per share and tangible common equity ratio. Management believes these measures are valuable for comparing capital quality and composition over time and against competitors, as they exclude intangible assets from capital ratio calculations. However, these measures have inherent limitations and should not replace GAAP results - Non-GAAP financial measures presented include **tangible book value per share** and **tangible common equity ratio**[47](index=47&type=chunk) - Management believes these measures are consistent with the capital treatment utilized by the investment community and facilitate comparison of capital quality and composition[47](index=47&type=chunk) - These non-GAAP measures have inherent limitations, are not uniformly applied, and should not be considered in isolation or as a substitute for GAAP results[48](index=48&type=chunk) [Reconciliation of Tangible Book Value Per Share and Tangible Common Equity Ratio](index=20&type=section&id=Reconciliation%20of%20Tangible%20Book%20Value%20Per%20Share%20and%20Tangible%20Common%20Equity%20Ratio) A reconciliation is provided to bridge GAAP book value per share and common equity ratio to their non-GAAP tangible counterparts. This reconciliation highlights the impact of excluding goodwill and core deposit intangibles from the calculations, offering a clearer view of tangible equity Reconciliation of Non-GAAP Tangible Measures | Metric ($ thousand, except per share) | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 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 | | Book value per share (GAAP) | 40.43 | 39.55 | 37.45 | | Tangible book value per share (non-GAAP) | 38.43 | 37.46 | 35.10 | | 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% | [Contacts](index=20&type=section&id=Contacts) Contact information for key executives of FS Bancorp, Inc. is provided for inquiries - Contact information for **Matthew D. Mullet**, President and Chief Executive Officer, and **Phillip D. Whittington**, Chief Financial Officer, is provided[52](index=52&type=chunk) - Contact number: **(425) 771-5299**; Website: **www.FSBWA.com**[52](index=52&type=chunk)
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
Globenewswire· 2025-10-21 20:30
Core Viewpoint - FS Bancorp, Inc. reported a decrease in net income for the third quarter of 2025, with net income of $9.2 million compared to $10.3 million in the same quarter last year, reflecting challenges in maintaining profitability amidst changing market conditions [1][7]. Financial Performance - The net income for the third quarter of 2025 was $9.2 million, or $1.18 per diluted share, down from $10.3 million, or $1.29 per diluted share, in the same quarter of 2024 [1]. - For the nine months ended September 30, 2025, net income was $24.9 million, or $3.18 per diluted share, compared to $27.6 million, or $3.45 per diluted share, for the same period in 2024 [1]. - Total deposits increased by $133.1 million, or 5.2%, to $2.69 billion at September 30, 2025, compared to $2.55 billion at June 30, 2025, and increased by $259.2 million, or 10.7%, from $2.43 billion at September 30, 2024 [7]. - Loans receivable, net increased by $17.3 million, or 0.7%, to $2.60 billion at September 30, 2025, compared to $2.58 billion at June 30, 2025, and increased by $135.9 million, or 5.5%, from $2.46 billion at September 30, 2024 [7]. Shareholder Returns - The company balanced shareholder returns in the third quarter through share repurchases, a paid special dividend, and the payment of its 50th quarterly dividend [3]. - The Board of Directors approved a cash dividend of $0.28 per common share, marking the 51st consecutive quarterly cash dividend, to be paid on November 20, 2025 [3]. Segment Reporting - The company operates through two segments: Commercial and Consumer Banking, and Home Lending [5]. - In the third quarter of 2025, the Commercial and Consumer Banking segment reported net income of $8.4 million, while the Home Lending segment reported net income of $775,000 [7]. Asset and Liability Management - Total assets increased by $32.8 million, or 1%, to $3.21 billion at September 30, 2025, compared to $3.18 billion at June 30, 2025, and increased by $238.6 million, or 8%, from $2.97 billion at September 30, 2024 [13]. - Borrowings decreased by $105.0 million, or 44.8%, to $129.3 million at September 30, 2025, compared to $234.3 million at June 30, 2025 [7]. Loan Portfolio - Total loans receivable increased to $2.63 billion during the third quarter of 2025, primarily due to growth in commercial and speculative construction and development loans [16]. - The composition of commercial real estate (CRE) loans showed an increase in total CRE loans to $932.7 million, up from $916.1 million in the previous quarter [17].
Is FS Bancorp (FSBW) a Great Value Stock Right Now?
ZACKS· 2025-09-10 14:40
Core Viewpoint - The article emphasizes the importance of value investing and highlights FS Bancorp (FSBW) as a strong candidate for value investors due to its favorable valuation metrics and earnings outlook [2][8]. Valuation Metrics - FSBW has a P/E ratio of 9.51, which is lower than the industry average of 10.84, indicating potential undervaluation [4]. - The P/B ratio for FSBW is 1.08, compared to the industry average of 1.34, suggesting solid valuation relative to book value [5]. - FSBW's P/S ratio stands at 1.51, significantly lower than the industry's average of 2.35, reinforcing its attractiveness as a value stock [6]. - The P/CF ratio for FSBW is 7.25, which is appealing compared to the industry average of 10.97, indicating a strong cash flow outlook [7]. Investment Outlook - Given the combination of favorable valuation metrics and a strong earnings outlook, FS Bancorp is positioned as a compelling value stock at the current time [8].
FS Bancorp, Inc. Announces CEO Succession Plan
Globenewswire· 2025-08-15 15:30
Core Points - FS Bancorp, Inc. has announced the appointment of Matthew D. Mullet as President and CEO of 1st Security Bank, effective September 1, 2025, succeeding Joseph C. Adams, who will retire from the position after serving since 2004 [1][2] - Joe Adams will continue to serve as CEO of FS Bancorp, Inc., a role he has held since 2012, until May 2026 [1][2] - The succession plan has been carefully planned by the Board, with confidence expressed in Matt Mullet's leadership skills and extensive experience in the banking sector [3] Company Overview - FS Bancorp, Inc. is the holding company for 1st Security Bank of Washington, which provides a range of loan and deposit services primarily to small- and middle-market businesses and individuals in Washington and Oregon [4] - The Bank operates through 27 branches and offers services in various suburban communities, focusing on markets in the greater Puget Sound area, Tri-Cities, and Vancouver [4]
FS Bancorp(FSBW) - 2025 Q2 - Quarterly Report
2025-08-08 18:35
PART I FINANCIAL INFORMATION [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents FS Bancorp, Inc.'s unaudited consolidated financial statements for the three and six-month periods ended June 30, 2025 [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) - Total assets increased to **$3.18 billion** as of June 30, 2025, from **$3.03 billion** at December 31, 2024, driven by growth in loans and investment securities[10](index=10&type=chunk) Consolidated Balance Sheet Highlights (in thousands of dollars) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$3,176,013** | **$3,029,177** | | Total cash and cash equivalents | $33,195 | $31,635 | | Loans receivable, net | $2,582,272 | $2,501,951 | | **Total Liabilities** | **$2,878,810** | **$2,733,410** | | Total deposits | $2,553,375 | $2,339,418 | | Borrowings | $234,305 | $307,806 | | **Total Stockholders' Equity** | **$297,203** | **$295,767** | [Consolidated Statements of Income](index=5&type=section&id=Consolidated%20Statements%20of%20Income) - Net income for the second quarter of 2025 was **$7.7 million**, a decrease from **$9.0 million** in the second quarter of 2024. For the six-month period, net income was **$15.7 million** in 2025, down from **$17.4 million** in 2024[12](index=12&type=chunk) Key Income Statement Data (in thousands of dollars, except per share data) | Metric | Q2 2025 | Q2 2024 | 6 Months 2025 | 6 Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Interest Income | $32,112 | $30,401 | $63,093 | $60,747 | | Provision for Credit Losses | $2,021 | $1,077 | $3,613 | $2,476 | | Noninterest Income | $5,170 | $5,868 | $10,296 | $10,979 | | Noninterest Expense | $25,502 | $23,857 | $50,556 | $47,386 | | **Net Income** | **$7,728** | **$8,959** | **$15,749** | **$17,356** | | **Diluted EPS** | **$0.99** | **$1.13** | **$1.99** | **$2.20** | [Consolidated Statements of Comprehensive Income](index=6&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) - Comprehensive income was **$4.9 million** for Q2 2025, significantly lower than **$9.8 million** in Q2 2024. The decrease was driven by net income decline and an other comprehensive loss of **$2.8 million**, primarily from unrealized losses on securities and derivative instruments[14](index=14&type=chunk) [Consolidated Statements of Changes in Stockholders' Equity](index=7&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity) - For the six months ended June 30, 2025, stockholders' equity increased by **$1.4 million** to **$297.2 million**. The increase was driven by net income of **$15.7 million**, offset by common stock repurchases of **$9.0 million** and dividends paid of **$4.4 million**[17](index=17&type=chunk) Stock Repurchase and Dividend Activity (Six Months Ended June 30, in thousands of dollars) | Activity | 2025 (in thousands) | 2024 (in thousands) | | :--- | :--- | :--- | | Common stock repurchased | $(8,988) | $(2,361) | | Dividends paid | $(4,353) | $(4,059) | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net Cash Flow Summary (Six Months Ended June 30, in thousands of dollars) | Cash Flow Category | 2025 | 2024 | | :--- | :--- | :--- | | Net cash from operating activities | $15,322 | $10,185 | | Net cash (used by) from investing activities | $(141,507) | $14,964 | | Net cash from (used by) financing activities | $127,745 | $(57,829) | | **Net increase (decrease) in cash** | **$1,560** | **$(32,680)** | - For the first six months of 2025, the company experienced a net cash outflow from investing activities of **$141.5 million**, primarily due to net portfolio loan originations and security purchases. This was funded by a net cash inflow from financing activities of **$127.7 million**, driven by a significant increase in deposits which more than offset repayments of borrowings and stock repurchases[20](index=20&type=chunk) [Notes to Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) - The Company operates in two business segments: commercial and consumer banking, and home lending. The Bank provides loan and deposit services primarily to small- and middle-market businesses and individuals in the greater Puget Sound area and other parts of Washington and Oregon[23](index=23&type=chunk)[28](index=28&type=chunk) Loan Portfolio Composition (in thousands of dollars) | Loan Category | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Commercial Real Estate (CRE) | $916,137 | $871,337 | | Residential Real Estate | $779,518 | $742,371 | | Consumer Loans | $606,291 | $620,181 | | Commercial Business Loans | $312,515 | $299,932 | | **Total loans receivable, gross** | **$2,614,461** | **$2,533,821** | - The Allowance for Credit Losses (ACL) on loans was **$32.2 million** at June 30, 2025, up from **$31.9 million** at year-end 2024. The increase in provision for credit losses was mainly due to loan growth and elevated net charge-offs in the consumer loan portfolio, particularly indirect home improvement loans[62](index=62&type=chunk) - Nonaccrual loans increased to **$19.0 million** at June 30, 2025, from **$13.6 million** at December 31, 2024. The increase was primarily in CRE construction and development loans, and consumer loans[68](index=68&type=chunk)[69](index=69&type=chunk)[82](index=82&type=chunk) - The Bank was categorized as 'well capitalized' under regulatory requirements as of June 30, 2025, with a Total risk-based capital ratio of **14.06%** and a Tier 1 leverage capital ratio of **11.18%**[144](index=144&type=chunk)[145](index=145&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=52&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial condition and results, highlighting decreased net income for Q2 and H1 2025 due to higher expenses and credit provisions, despite asset and deposit growth [Comparison of Financial Condition](index=55&type=section&id=Comparison%20of%20Financial%20Condition) - Total assets grew by **$146.8 million** to **$3.18 billion** at June 30, 2025, from year-end 2024, primarily due to an **$80.3 million** increase in net loans receivable and a **$44.6 million** increase in total securities[183](index=183&type=chunk) - Total deposits increased by **$214.0 million**, largely driven by a **$148.8 million** increase in CDs, including a **$137.7 million** rise in brokered CDs. This influx of deposits allowed the company to reduce borrowings by **$73.5 million**[190](index=190&type=chunk)[191](index=191&type=chunk)[192](index=192&type=chunk) - Asset quality weakened, with nonperforming loans increasing to **$19.0 million** (**0.73%** of total loans) from **$13.6 million** (**0.54%** of total loans) at year-end 2024. The increase was concentrated in commercial construction and indirect home improvement loans[189](index=189&type=chunk) - Stockholders' equity increased by **$1.4 million** to **$297.2 million**, as net income of **$15.7 million** was largely offset by **$9.0 million** in share repurchases and **$4.3 million** in dividends[198](index=198&type=chunk) [Comparison of Results of Operations](index=57&type=section&id=Comparison%20of%20Results%20of%20Operations) Q2 2025 vs Q2 2024 Performance Summary (in thousands of dollars) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net Interest Income | $32,112 | $30,401 | $1,711 | | Provision for Credit Losses | $2,021 | $1,077 | $944 | | Noninterest Income | $5,170 | $5,868 | $(698) | | Noninterest Expense | $25,502 | $23,857 | $1,645 | | **Net Income** | **$7,728** | **$8,959** | **$(1,231)** | - Net interest margin (NIM) for Q2 2025 was **4.30%**, a slight increase of **one basis point** from **4.29%** in Q2 2024, as higher yields on interest-earning assets were largely offset by increased funding costs[206](index=206&type=chunk) - The provision for credit losses increased by **$944,000** in Q2 2025 compared to Q2 2024, reflecting loan portfolio growth, an increase in nonperforming loans, and higher net charge-offs, particularly in the consumer loan portfolio[213](index=213&type=chunk)[214](index=214&type=chunk) - Noninterest expense rose by **$1.6 million** year-over-year for the quarter, primarily due to a **$710,000** increase in salaries and benefits from competitive wage adjustments and higher benefit costs[216](index=216&type=chunk) [Liquidity and Capital Resources](index=64&type=section&id=Liquidity%20and%20Capital%20Resources) - The Bank maintains multiple liquidity sources, including deposit growth, FHLB borrowings, and the sale of securities and loans. As of June 30, 2025, the Bank had **$438.2 million** in unused borrowing capacity with the FHLB of Des Moines[237](index=237&type=chunk)[238](index=238&type=chunk) - The Bank also has a **$262.8 million** borrowing line with the Federal Reserve Bank and **$101.0 million** in federal funds lines with correspondent banks. At quarter-end, **$25.0 million** was outstanding with the FRB[239](index=239&type=chunk) - The Bank is considered 'well capitalized' and exceeded all regulatory capital requirements as of June 30, 2025. The holding company, FS Bancorp, Inc., also exceeded all applicable regulatory capital requirements[248](index=248&type=chunk)[249](index=249&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=65&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reports no material changes in market risk disclosures from its 2024 Annual Report on Form 10-K - There have been no material changes in the market risk disclosures contained in FS Bancorp's 2024 Form 10-K[250](index=250&type=chunk) [Controls and Procedures](index=65&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded the company's disclosure controls were effective as of June 30, 2025, with no material changes to internal control over financial reporting - The CEO and CFO concluded that as of June 30, 2025, the Company's disclosure controls and procedures were effective[252](index=252&type=chunk) - No changes occurred during the quarter ended June 30, 2025, that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[253](index=253&type=chunk) PART II OTHER INFORMATION [Legal Proceedings](index=66&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in routine legal proceedings, with management expecting no material adverse effect on financial condition - In the opinion of management, any liability from legal proceedings in the normal course of business would not have a material adverse effect on the Company's financial condition[255](index=255&type=chunk) [Risk Factors](index=66&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's 2024 Form 10-K - There have been no material changes in the Risk Factors previously disclosed in FS Bancorp's 2024 Form 10-K[256](index=256&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=66&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased common shares in Q2 2025, with remaining repurchase capacity and a new **$5.0 million** program approved Common Stock Repurchases (Q2 2025) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 2025 | 34,921 | $37.90 | | May 2025 | 49,623 | $39.99 | | June 2025 | 47,738 | $38.55 | | **Total for Quarter** | **132,282** | **$38.92** | - As of June 30, 2025, **$724,772** remained available for repurchase under existing plans[257](index=257&type=chunk) - On July 9, 2025, the Board of Directors approved an additional stock repurchase program, authorizing the repurchase of up to **$5.0 million** of common stock[259](index=259&type=chunk) [Defaults Upon Senior Securities](index=67&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) Not applicable - Not applicable[261](index=261&type=chunk) [Mine Safety Disclosures](index=67&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Not applicable - Not applicable[262](index=262&type=chunk) [Other Information](index=67&type=section&id=Item%205.%20Other%20Information) The company reports no other material information, with no director or officer trading arrangement changes during Q2 2025 - During the three months ended June 30, 2025, no director or officer adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement[263](index=263&type=chunk) [Exhibits](index=68&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including corporate documents and certifications
FS Bancorp (FSBW) Q2 Earnings and Revenues Top Estimates
ZACKS· 2025-07-22 22:41
Core Viewpoint - FS Bancorp reported quarterly earnings of $0.99 per share, exceeding the Zacks Consensus Estimate of $0.97 per share, but down from $1.13 per share a year ago, indicating a +2.06% earnings surprise [1][2] Financial Performance - The company achieved revenues of $37.28 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.14% and up from $36.27 million year-over-year [2] - Over the last four quarters, FS Bancorp has exceeded consensus EPS estimates three times and has topped consensus revenue estimates three times as well [2] Stock Performance and Outlook - FS Bancorp shares have increased approximately 1.5% since the beginning of the year, while the S&P 500 has gained 7.2% [3] - The company's earnings outlook is crucial for investors, with current consensus EPS estimates at $1.03 for the coming quarter and $4.05 for the current fiscal year [7] Industry Context - The Zacks Industry Rank for Banks - West places it in the top 28% of over 250 Zacks industries, suggesting that the industry outlook can significantly impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5][6]
FS Bancorp(FSBW) - 2025 Q2 - Quarterly Results
2025-07-22 20:45
[Financial Performance](index=1&type=section&id=Financial%20Performance) [Q2 2025 Earnings Overview](index=1&type=section&id=Q2%202025%20Earnings%20Overview) FS Bancorp's Q2 2025 net income decreased to $7.7 million ($0.99 diluted EPS) from $9.0 million ($1.13 diluted EPS) in Q2 2024, impacted by lower noninterest income and higher expenses Quarterly and YTD Earnings Summary | Period | Net Income | Diluted EPS | | :--- | :--- | :--- | | **Q2 2025** | $7.7 million | $0.99 | | **Q2 2024** | $9.0 million | $1.13 | | **YTD 2025** | $15.7 million | $1.99 | | **YTD 2024** | $17.4 million | $2.20 | [Key Highlights](index=1&type=section&id=Key%20Highlights) Q2 2025 saw strong loan growth (3.2% to $2.58 billion) offset by a 2.4% deposit decrease to $2.55 billion, while the company managed capital through repurchases and maintained strong regulatory ratios Key Balance Sheet Changes (Q2 2025 vs Q1 2025) | Metric | Q2 2025 Value | QoQ Change | QoQ % Change | | :--- | :--- | :--- | :--- | | Loans receivable, net | $2.58 billion | +$81.2 million | +3.2% | | Total deposits | $2.55 billion | -$61.8 million | -2.4% | | Borrowings | $234.3 million | +$165.5 million | +240.5% | - Book value per share increased to **$39.55** at June 30, 2025, up from $39.12 at March 31, 2025, and $37.15 a year prior[4](index=4&type=chunk) - The Bank's regulatory capital ratios remained strong, with total risk-based capital at **14.1%** and Tier 1 leverage capital at **11.2%** as of June 30, 2025[5](index=5&type=chunk) [Segment Performance](index=3&type=section&id=Segment%20Performance) Commercial and Consumer Banking remained the primary earnings driver with $7.4 million net income in Q2 2025, while Home Lending's contribution significantly decreased to $0.4 million due to lower noninterest income - The company operates through two reportable segments: Commercial and Consumer Banking, and Home Lending[6](index=6&type=chunk) Segment Net Income (Q2 2025 vs Q2 2024) | Segment | Q2 2025 Net Income | Q2 2024 Net Income | Change | | :--- | :--- | :--- | :--- | | Commercial & Consumer Banking | $7.4 million | $8.0 million | -$0.6 million | | Home Lending | $0.4 million | $1.0 million | -$0.6 million | Segment Net Income (YTD 2025 vs YTD 2024) | Segment | YTD 2025 Net Income | YTD 2024 Net Income | Change | | :--- | :--- | :--- | :--- | | Commercial & Consumer Banking | $15.2 million | $16.1 million | -$0.9 million | | Home Lending | $0.6 million | $1.3 million | -$0.7 million | [Operating Results](index=12&type=section&id=Operating%20Results) Net interest income increased to $32.1 million in Q2 2025 with a stable 4.30% NIM, but noninterest income declined by $0.7 million and noninterest expense rose by $1.6 million - Net interest income increased by **$1.7 million** YoY to **$32.1 million** for Q2 2025, primarily due to a **$2.6 million** increase in interest income from loans[23](index=23&type=chunk) - Net interest margin (NIM) was **4.30%** for Q2 2025, a slight increase from 4.29% in Q2 2024, reflecting higher yields on interest-earning assets[25](index=25&type=chunk) - The provision for credit losses was **$2.0 million** for Q2 2025, an increase from $1.1 million in Q2 2024, reflecting net loan growth and higher net charge-offs[27](index=27&type=chunk) - Total noninterest income decreased by **$698,000** YoY to **$5.2 million**, mainly due to a **$491,000** decrease in gain on sale of loans[29](index=29&type=chunk) - Total noninterest expense increased by **$1.6 million** YoY to **$25.5 million**, driven by higher salaries and benefits, operations expense, and professional fees[30](index=30&type=chunk) [Financial Position](index=5&type=section&id=Financial%20Position) [Asset Summary](index=5&type=section&id=Asset%20Summary) Total assets grew to $3.18 billion by June 30, 2025, up 4% QoQ and 8% YoY, primarily driven by increases in net loans receivable and available-for-sale securities Total Assets Growth | Date | Total Assets | QoQ Change | YoY Change | | :--- | :--- | :--- | :--- | | **June 30, 2025** | $3,176.0 million | +4% | +8% | | **March 31, 2025** | $3,066.1 million | - | - | | **June 30, 2024** | $2,941.4 million | - | - | - The growth in assets was funded by a combination of on-balance sheet liquidity and a significant increase in borrowings[10](index=10&type=chunk) [Loan Portfolio Analysis](index=6&type=section&id=Loan%20Portfolio%20Analysis) The gross loan portfolio grew 5.1% YoY to $2.61 billion, led by Commercial Real Estate and Residential Real Estate, while the Consumer loan portfolio decreased [Overall Loan Portfolio Composition](index=6&type=section&id=Overall%20Loan%20Portfolio%20Composition) As of Q2 2025, the loan portfolio was led by Commercial Real Estate (35.0%) and Residential Real Estate (29.8%) Loan Portfolio Composition (June 30, 2025) | Loan Category | Amount | Percent of Total | | :--- | :--- | :--- | | Total CRE loans | $916.1 million | 35.0% | | Total residential real estate loans | $779.5 million | 29.8% | | Total consumer loans | $606.3 million | 23.2% | | Total commercial business loans | $312.5 million | 12.0% | | **Total gross loans receivable** | **$2,614.5 million** | **100.0%** | [Commercial Real Estate (CRE) & Construction Loans](index=7&type=section&id=Commercial%20Real%20Estate%20(CRE)%20%26%20Construction%20Loans) CRE portfolio growth was driven by a $79.9 million increase in construction loans, with total construction loans reaching $354.7 million, primarily from speculative residential construction - The CRE non-owner occupied portfolio's largest exposures are to Office (**$39.1M**) and Retail (**$38.7M**) properties[12](index=12&type=chunk) - Total construction loans increased to **$354.7 million** at June 30, 2025, up from $274.2 million at June 30, 2024, with speculative residential construction accounting for **56.5%** of the portfolio[13](index=13&type=chunk) [Residential Mortgage Originations](index=8&type=section&id=Residential%20Mortgage%20Originations) Q2 2025 one-to-four-family loan originations totaled $199.3 million (85.7% purchase activity), with $127.1 million sold, though gross margins on sales decreased One-to-Four-Family Loan Originations (Q2 2025) | Origination Type | Amount | % of Total | | :--- | :--- | :--- | | Purchase | $170.9 million | 85.7% | | Refinance | $28.5 million | 14.3% | | **Total** | **$199.3 million** | **100.0%** | - Loan sales volume increased to **$127.1 million** in Q2 2025 from $91.9 million in Q1 2025, attributed to seasonal homebuying activity[13](index=13&type=chunk) [Liabilities and Equity Summary](index=9&type=section&id=Liabilities%20and%20Equity%20Summary) Total deposits decreased by $61.8 million QoQ to $2.55 billion due to brokered CD reductions, while borrowings significantly increased by $165.5 million to fund asset growth, and equity slightly declined due to repurchases and dividends Deposit Composition (June 30, 2025) | Deposit Type | Amount | % of Total | | :--- | :--- | :--- | | Noninterest-bearing | $643.6 million | 25.2% | | Transactional & Savings | $721.7 million | 28.3% | | Certificates of deposit (CDs) | $1,177.6 million | 46.1% | | **Total Deposits** | **$2,553.4 million** | **100.0%** | - Uninsured deposits were estimated at **$677.2 million** at June 30, 2025, slightly down from $679.4 million at March 31, 2025[16](index=16&type=chunk) - The linked-quarter decrease in stockholders' equity was primarily due to **$5.1 million** in share repurchases and **$2.1 million** in cash dividends, partially offset by **$7.7 million** in net income[17](index=17&type=chunk) [Capital Adequacy](index=3&type=section&id=Capital%20Adequacy) Both the company and the bank remain 'well capitalized,' with the Bank's total risk-based capital ratio at 14.07% and Tier 1 leverage ratio at 11.18% as of June 30, 2025 Regulatory Capital Ratios (June 30, 2025) | Ratio | Bank | Company | | :--- | :--- | :--- | | Total risk-based capital | 14.07% | 14.16% | | Tier 1 leverage capital | 11.18% | 9.65% | | CET 1 capital | 12.82% | 11.07% | [Credit Quality](index=10&type=section&id=Credit%20Quality) [Allowance for Credit Losses (ACL)](index=10&type=section&id=Allowance%20for%20Credit%20Losses%20(ACL)) The Allowance for Credit Losses (ACL) on loans increased to $32.2 million in Q2 2025 due to a $1.7 million provision, partially offset by $1.2 million in net charge-offs, primarily from indirect consumer loans ACL on Loans to Total Gross Loans | Date | ACL to Gross Loans Ratio | | :--- | :--- | | **June 30, 2025** | 1.23% | | **March 31, 2025** | 1.25% | | **June 30, 2024** | 1.26% | - The ending ACL balance on loans was **$32.2 million**, with a provision of **$1.7 million** and net charge-offs (charge-offs less recoveries) of **$1.2 million** for Q2 2025[20](index=20&type=chunk) [Nonperforming and Criticized Loans](index=11&type=section&id=Nonperforming%20and%20Criticized%20Loans) Credit quality deteriorated as total nonperforming loans increased to $19.0 million, driven by a commercial construction loan and consumer delinquencies, with total criticized loans also rising to $24.9 million Trend in Nonperforming Loans (NPLs) | Date | Total NPLs | NPLs to Total Gross Loans | | :--- | :--- | :--- | | **June 30, 2025** | $19.0 million | 0.73% | | **March 31, 2025** | $14.5 million | 0.57% | | **June 30, 2024** | $11.4 million | 0.46% | - The increase in nonaccrual loans was partly driven by a single commercial construction loan, which contributed to a **$2.6 million** increase from the prior quarter[21](index=21&type=chunk) - Total criticized loans increased to **$24.9 million** at June 30, 2025, up from $23.5 million in the prior quarter and $24.3 million in the prior year[22](index=22&type=chunk) [Shareholder Information](index=1&type=section&id=Shareholder%20Information) [Dividends and Share Repurchases](index=1&type=section&id=Dividends%20and%20Share%20Repurchases) The company declared its 50th consecutive quarterly dividend of $0.28 per share plus a $0.22 special dividend, while repurchasing 132,282 shares and approving a new $5.0 million repurchase plan - The Board of Directors approved the **50th consecutive quarterly cash dividend** of **$0.28** per common share[3](index=3&type=chunk) - A special dividend of **$0.22** per common share was also approved, both payable on August 21, 2025, to shareholders of record as of August 7, 2025[3](index=3&type=chunk) Q2 2025 Share Repurchase Activity | Metric | Value | | :--- | :--- | | Shares Repurchased | 132,282 | | Average Price | $38.92 | | Remaining Authorization (Existing Plan) | $725,000 | | New Repurchase Plan Authorization | $5.0 million | [Per Share Data](index=1&type=section&id=Per%20Share%20Data) Diluted EPS for Q2 2025 was $0.99, a decrease from prior periods, while book value per share grew to $39.55 and tangible book value per share reached $37.46 Per Share Metrics | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Diluted EPS | $0.99 | $1.01 | $1.13 | | Book Value Per Share | $39.55 | $39.12 | $37.15 | | Tangible Book Value Per Share | $37.46 | $36.96 | $34.66 | [Appendix](index=15&type=section&id=Appendix) [Consolidated Financial Statements](index=15&type=section&id=Consolidated%20Financial%20Statements) The appendix contains unaudited Consolidated Balance Sheets, Statements of Income, Key Financial Ratios, and Average Balance data for relevant periods - The appendix contains the Consolidated Balance Sheets[34](index=34&type=chunk)[35](index=35&type=chunk) - The appendix contains the Consolidated Statements of Income[36](index=36&type=chunk)[37](index=37&type=chunk)[38](index=38&type=chunk)[39](index=39&type=chunk) - The appendix includes Key Financial Ratios and Average Balance data[40](index=40&type=chunk)[45](index=45&type=chunk) [Non-GAAP Financial Measures](index=20&type=section&id=Non-GAAP%20Financial%20Measures) The company presents non-GAAP financial measures like tangible book value per share and tangible common equity ratio, excluding intangible assets, with full reconciliation to GAAP measures - The company uses non-GAAP measures such as tangible book value per share and tangible common equity ratio, which exclude goodwill and other intangible assets[46](index=46&type=chunk) Reconciliation of GAAP to Non-GAAP Equity (June 30, 2025) | Metric | Amount | | :--- | :--- | | Stockholders' equity (GAAP) | $297.2 million | | Less: goodwill and core deposit intangible | ($15.7 million) | | **Tangible common stockholders' equity (non-GAAP)** | **$281.5 million** |
FS Bancorp, Inc. Reports Second Quarter Net Income of $7.7 Million or $0.99 Per Diluted Share and Declares 50th Consecutive Quarterly Cash Dividend in Addition to a Special Dividend
GlobeNewswire News Room· 2025-07-22 20:30
Core Viewpoint - FS Bancorp, Inc. reported a decline in net income for the second quarter of 2025, reflecting challenges in the banking sector while maintaining a commitment to shareholder value through dividends and share repurchase activities [1][3]. Financial Performance - The company reported a net income of $7.7 million, or $0.99 per diluted share, for Q2 2025, down from $9.0 million, or $1.13 per diluted share, in Q2 2024 [1]. - For the first half of 2025, net income was $15.7 million, or $1.99 per diluted share, compared to $17.4 million, or $2.20 per diluted share, in the same period of 2024 [1]. Balance Sheet and Asset Growth - Total assets increased by $109.9 million, or 4%, to $3.176 billion as of June 30, 2025, compared to $3.066 billion at March 31, 2025, and $2.941 billion at June 30, 2024 [12]. - Loans receivable, net increased by $81.2 million, or 3.2%, to $2.58 billion at June 30, 2025, compared to $2.50 billion at March 31, 2025, and $2.46 billion at June 30, 2024 [7]. Segment Reporting - The Commercial and Consumer Banking segment generated a net income of $7.4 million, while the Home Lending segment contributed $351,000 for Q2 2025 [7]. - Net interest income for the Commercial and Consumer Banking segment was $29.2 million, and for Home Lending, it was $2.9 million for Q2 2025 [6]. Dividends and Share Repurchase - The Board of Directors approved a cash dividend of $0.28 per common share and a special dividend of $0.22 per common share, marking the 50th consecutive quarterly cash dividend [3]. - The company repurchased 132,282 shares at an average price of $38.92 per share during Q2 2025, with a remaining authorization of $725,000 for future purchases [7]. Deposits and Borrowings - Total deposits decreased by $61.8 million, or 2.4%, to $2.55 billion at June 30, 2025, primarily due to a decrease in brokered deposits [7]. - Borrowings increased significantly by $165.5 million, or 240.5%, to $234.3 million at June 30, 2025, compared to $68.8 million at March 31, 2025 [7]. Loan Composition - The total loan portfolio reached $2.614 billion, with commercial and industrial loans accounting for $312.5 million, and residential real estate loans totaling $779.5 million as of June 30, 2025 [14][15]. - Consumer loans decreased by $2.6 million, or 0.4%, to $606.3 million at June 30, 2025, compared to the previous quarter [7].
FS Bancorp, Inc. Reports Second Quarter Net Income of $7.7 Million or $0.99 Per Diluted Share and Declares 50th Consecutive Quarterly Cash Dividend in Addition to a Special Dividend
Globenewswire· 2025-07-22 20:30
Core Points - FS Bancorp, Inc. reported a net income of $7.7 million for Q2 2025, a decrease from $9.0 million in Q2 2024, and a net income of $15.7 million for the first half of 2025, down from $17.4 million in the same period last year [1][7][9] - The company experienced a decrease in total deposits by $61.8 million, or 2.4%, to $2.55 billion compared to the previous quarter, but an increase of $170.6 million, or 7.2%, from the same quarter last year [7] - The company’s loan receivable, net increased by $81.2 million, or 3.2%, to $2.58 billion compared to the previous quarter, and increased by $125.1 million, or 5.1%, from the same quarter last year [7] - The company repurchased 132,282 shares of common stock at an average price of $38.92 per share, with a remaining authorization of $725,000 for future purchases [7] - The Board of Directors approved a cash dividend of $0.28 per common share and a special dividend of $0.22 per common share, marking the 50th consecutive quarterly cash dividend [3] Financial Performance - Net interest income for the Commercial and Consumer Banking segment was $29.2 million, while the Home Lending segment reported $2.9 million for Q2 2025 [8] - The provision for credit losses was $(1.8) million for the Commercial and Consumer Banking segment and $(0.2) million for the Home Lending segment [8] - Noninterest income totaled $5.2 million, with noninterest expenses at $25.5 million for the quarter [8] Segment Reporting - The Commercial and Consumer Banking segment generated a net income of $7.4 million, while the Home Lending segment contributed $351,000 for Q2 2025 [7][8] - Total average assets for the Commercial and Consumer Banking segment were $2.47 billion, and for the Home Lending segment, $649.4 million [8] - The company operates through two segments: Commercial and Consumer Banking, and Home Lending, providing a range of financial products and services [5] Asset Summary - Total assets increased by $109.9 million, or 4%, to $3.18 billion compared to the previous quarter, and by $234.6 million, or 8%, from the same period last year [14] - Loans receivable, net increased to $2.58 billion, reflecting a focus on balance sheet growth through loan origination [14][16] - The company’s regulatory capital ratios were 14.1% for total risk-based capital and 11.2% for Tier 1 leverage capital as of June 30, 2025 [7]