Financial Performance - Net income for the first quarter of 2025 was $8.0 million, or $1.01 per diluted share, compared to $8.4 million, or $1.06 per diluted share, in the same quarter last year[1]. - Net income for the quarter was $8,021, representing a 9% increase compared to $7,382 in the same quarter last year[38]. - Basic earnings per share increased to $1.02, up 9% from $0.94 in the prior year[39]. - Return on assets improved to 1.07% for the quarter, compared to 0.98% in the previous quarter[39]. - The efficiency ratio for the quarter was 69.39%, compared to 66.36% in the same quarter last year[39]. Deposits and Assets - Total deposits increased by $275.7 million, or 11.8%, to $2.62 billion at March 31, 2025, driven by a $226.9 million increase in brokered deposits[4]. - Total deposits increased to $2.62 billion at March 31, 2025, reflecting an 11.8% increase from $2.34 billion at December 31, 2024[16]. - Total assets increased by $36.9 million, or 1.2%, to $3.07 billion at March 31, 2025, compared to $3.03 billion at December 31, 2024[8]. - Total assets as of March 31, 2025, were $3,032,512, reflecting a $73,965 increase from the previous quarter[44]. - Interest-bearing accounts increased by 14% to $1,938,445 thousand as of March 31, 2025, compared to $1,701,260 thousand in the same period last year[36]. Loans and Credit Quality - Loans receivable, net remained virtually unchanged at $2.50 billion at March 31, 2025, but increased by $85.7 million, or 3.5%, from $2.42 billion at March 31, 2024[4]. - Consumer loans decreased by $11.3 million, or 1.8%, to $608.9 million at March 31, 2025, compared to $620.2 million in the previous quarter[4]. - Nonperforming loans increased to $14.5 million at March 31, 2025, up from $13.6 million at December 31, 2024[25]. - Nonperforming loans to total gross loans increased to 0.57%, up from 0.49% in the same quarter last year[39]. - The allowance for credit losses on loans was $31.7 million, or 1.25% of gross loans receivable, at March 31, 2025[25]. Capital and Equity - Total stockholders' equity increased to $298.8 million at March 31, 2025, from $295.8 million at December 31, 2024[22]. - The company maintained a total risk-based capital ratio of 14.4% at March 31, 2025, exceeding regulatory requirements[23]. - Tangible book value per share increased to $36.96, up from $36.02 in the previous quarter[48]. Income and Expenses - Net interest income increased by $636,000 to $31.0 million for Q1 2025, driven by a $1.9 million increase in total interest income[27]. - The net interest margin (NIM) increased to 4.32% for Q1 2025, up from 4.26% in the same period last year[28]. - Total noninterest income remained unchanged at $5.1 million for the three months ended March 31, 2025, while total noninterest expense rose to $25.0 million from $23.5 million in the same period last year, driven by a $976,000 increase in salaries and benefits[31]. - The company reported a total interest expense of $15,806, a 9% increase from $14,534 in the prior year[38]. Market and Economic Conditions - The company anticipates potential adverse impacts from economic conditions, including inflation and changes in interest rates, which could affect revenues and expenses[33]. - Management noted challenges in expanding into new geographic markets and the potential for increased competitive pressures affecting market position[33].

Core Viewpoint - FS Bancorp, Inc. reported a net income of $8.0 million for the first quarter of 2025, reflecting a slight decrease compared to the same quarter last year, while deposit growth exceeded expectations, positioning the bank well for future loan opportunities [1][2]. Financial Performance - Net income for Q1 2025 was $8.0 million, or $1.01 per diluted share, compared to $8.4 million, or $1.06 per diluted share, in Q1 2024 [1]. - Total deposits increased by $275.7 million, or 11.8%, reaching $2.62 billion as of March 31, 2025, driven primarily by a $226.9 million increase in brokered deposits [6][17]. - Borrowings decreased significantly by $239.0 million, or 77.6%, to $68.8 million at March 31, 2025, compared to $307.8 million at December 31, 2024 [6][22]. Segment Reporting - The Commercial and Consumer Banking segment generated a net income of $7.8 million, while the Home Lending segment contributed $241,000 in net income for Q1 2025 [6]. - The total average assets for the period ended March 31, 2025, were $3.03 billion, reflecting an increase from $2.97 billion at March 31, 2024 [10]. Loan Portfolio - Loans receivable, net remained stable at $2.50 billion as of March 31, 2025, with a slight increase of $85.7 million, or 3.5%, from $2.42 billion at March 31, 2024 [6][11]. - Consumer loans decreased by $11.3 million, or 1.8%, to $608.9 million at March 31, 2025, compared to $620.2 million in the previous quarter [6][11]. Shareholder Returns - The Board of Directors approved a cash dividend of $0.28 per common share, marking the forty-ninth consecutive quarterly dividend, to be paid on May 22, 2025 [3]. - The company repurchased 98,317 shares of common stock at an average price of $39.06 per share during Q1 2025, with an additional $5.0 million authorized for future repurchases [6][23]. Capital and Equity - Total stockholders' equity increased by $3.1 million to $298.8 million at March 31, 2025, compared to $295.8 million at December 31, 2024 [23]. - Book value per share rose to $39.12 at March 31, 2025, up from $38.26 at December 31, 2024, and $36.06 at March 31, 2024 [23].

MOUNTLAKE TERRACE, Wash., April 01, 2025 (GLOBE NEWSWIRE) -- FS Bancorp, Inc. ("Company") (NASDAQ: FSBW), the holding company for 1st Security Bank of Washington ("1st Security Bank" or "Bank") announced today that it has named Phillip Whittington as Chief Financial Officer of both the Bank and the Company effective May 1, 2025. Matthew D. Mullet, who previously served as Chief Financial Officer and President will continue to serve as the President for both the Company and the Bank. "We are delighted to ann ...

Loan Portfolio and Lending Activities - As of December 31, 2024, the total loan portfolio amounted to $2.1 billion, with $1.27 billion in fixed-rate loans and $831.7 million in adjustable-rate loans[41]. - Commercial real estate (CRE) loans totaled $590.5 million, representing 23.3% of the gross loan portfolio, including $245.2 million in multi-family residential loans[47]. - The Company has a lending authority limit of $35 million, with the largest lending relationship at $42.6 million, secured by multi-family real estate property[45]. - The Company originated $715.7 million of one-to-four-family mortgages in 2024, with $564.8 million sold to investors[64]. - One-to-four-family residential mortgage loans represented 24.4% of the gross loan portfolio, totaling $617.3 million as of December 31, 2024[64]. - The commercial business loan portfolio totaled $299.9 million, or 11.7% of the gross loan portfolio, as of December 31, 2024[75]. - The total outstanding construction and development loans increased to $330.7 million in 2024, up from $303.1 million in 2023, representing an increase of 9.1%[53]. - The construction and development loan portfolio totaled $330.7 million, accounting for 13.1% of the total gross loan portfolio, with $223.3 million allocated to speculative residential projects[218]. - The Company processed approximately 162 loans and funded about $85.6 million under its mortgage warehouse lending program during the year ended December 31, 2024[77]. - The residential mortgage warehouse lending program had an outstanding balance of $2.2 million as of December 31, 2024, compared to $573,000 at the end of 2023[223]. Financial Performance and Credit Quality - Total loans originated in 2024 amounted to $1,304,785,000, an increase of 7.4% from $1,214,485,000 in 2023[85]. - The allowance for credit losses (ACL) on loans was $31.9 million, or 1.26% of gross loans receivable, as of December 31, 2024, compared to $31.5 million, or 1.30% in 2023[105]. - The provision for credit losses on loans for 2024 was $5.6 million, slightly down from $5.8 million in 2023, attributed to an increase in net charge-offs[105]. - Total net charge-offs for the year were $5,299 thousand, compared to $2,228 thousand in 2023, reflecting a 138.5% increase[108]. - Nonaccrual loans as a percentage of total loans outstanding increased to 0.54% in 2024 from 0.45% in 2023[108]. - The percentage of ACL on loans as a percentage of nonaccrual loans decreased to 234.32% in 2024 from 287.93% in 2023[108]. - The allocation of ACL for real estate loans was $14,441 thousand, accounting for 63.8% of total loans in 2024[109]. - The Company enhanced its stress testing to mitigate interest rate reset risk, focusing on borrowers' abilities to absorb higher interest rates[90]. Deposits and Funding Sources - Total deposits decreased by $182.9 million, or 7.25%, to $2.339 billion as of December 31, 2024, compared to $2.522 billion in 2023[119]. - Brokered deposits decreased by $288.2 million, with total brokered deposits accounting for 6.1% of total deposits at $143.4 million as of December 31, 2024[117][119]. - Approximately $652.7 million of the deposit portfolio was uninsured as of December 31, 2024, indicating a significant portion of deposits exceeding FDIC insurance limits[121]. - The company’s total transaction and savings deposits were $1.311 billion, representing 56.02% of total deposits as of December 31, 2024[119]. - The company’s interest credited on deposits increased to $53.2 million in 2024 from $36.8 million in 2023[119]. - The company plans to consider additional leverage strategies within regulatory requirements to fund loan originations and increase net interest income[124]. Regulatory Compliance and Capital Ratios - The Company is regulated by the Washington State Department of Financial Institutions and the Federal Deposit Insurance Corporation[29]. - At December 31, 2024, 1st Security Bank's total risk-based capital ratio was 14.18%, exceeding the required minimum of 8.00%[167]. - The Tier 1 risk-based capital ratio was 12.93%, above the required minimum of 6.00%[167]. - The CET1 capital ratio stood at 12.93%, surpassing the minimum requirement of 4.50%[167]. - 1st Security Bank was categorized as "well capitalized" under the prompt corrective action regulations of the FDIC as of December 31, 2024[171]. - The capital conservation buffer required for 1st Security Bank is an additional CET1 capital greater than 2.5% of risk-weighted assets[165]. - The Federal Reserve requires all depository institutions to maintain reserves at specified levels, and 1st Security Bank was in compliance with these requirements as of December 31, 2024[188]. Employee and Community Engagement - The company has hired 118 new employees in 2024, increasing the total employee count to 567 as of December 31, 2024[152]. - Employee health benefits have not increased in employee contribution costs since 2014, demonstrating a commitment to employee welfare[148]. - The company provided approximately 6,000 volunteer hours in both 2024 and 2023, reflecting its dedication to community engagement[153]. - The 401k plan matches up to the first 5% of contributions for up to 4% of total salary, enhancing employee retirement benefits[148]. - The average tenure for management positions is eight years and two months, indicating stability within the leadership team[151]. - The company emphasizes a flexible work schedule to support work-life balance for employees[149]. Market Position and Competition - The Company focuses on relationship lending and aims to capitalize on new lending opportunities arising from recent market consolidations[39]. - The company faces strong competition in real estate loans from various financial institutions and aims to differentiate through high-quality, personalized service[132]. - As of June 30, 2024, 1st Security Bank holds a 1% share of aggregate deposits in its market area across 12 counties[133]. Risk Management - Risks associated with commercial and multi-family loans include higher delinquency rates and the need for detailed collateral evaluations[215]. - The company’s construction loans often include interest reserves, allowing borrowers to defer payments, which increases repayment risk[219]. - The commercial and industrial business loans are primarily based on borrower cash flow, which may be unpredictable, increasing credit risk[217]. - FS Bancorp's loan portfolio is predominantly secured by real estate, which may be adversely affected by economic downturns, impacting borrowers' repayment capabilities[206].

Core Viewpoint - FS Bancorp reported a decline in revenue and earnings per share (EPS) for the quarter ended December 2024, missing both revenue and EPS estimates [1][3]. Financial Performance - Revenue for the quarter was $35.72 million, down 0.5% year-over-year, and below the Zacks Consensus Estimate of $36.95 million, resulting in a surprise of -3.32% [1]. - EPS was reported at $0.92, a decrease from $1.23 in the same quarter last year, and also below the consensus estimate of $1.04, leading to an EPS surprise of -11.54% [1]. - Net Interest Margin was 4.3%, slightly below the average estimate of 4.4% from two analysts [4]. - The Efficiency Ratio was reported at 68.2%, higher than the average estimate of 65.6% from two analysts [4]. - Total Non-Interest Income was $4.61 million, compared to the average estimate of $5.45 million [4]. - Net Interest Income was $31.11 million, slightly below the average estimate of $31.50 million [4]. Stock Performance - Over the past month, shares of FS Bancorp have returned -2.4%, contrasting with the Zacks S&P 500 composite's increase of +1.2% [3]. - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3].

Group 1 - FS Bancorp reported quarterly earnings of $0.92 per share, missing the Zacks Consensus Estimate of $1.04 per share, and down from $1.23 per share a year ago, representing an earnings surprise of -11.54% [1] - The company posted revenues of $35.72 million for the quarter, missing the Zacks Consensus Estimate by 3.32%, and down from $35.91 million year-over-year [2] - FS Bancorp has surpassed consensus EPS estimates three times over the last four quarters, indicating some volatility in earnings performance [2] Group 2 - The stock has underperformed the market, losing about 0.8% since the beginning of the year compared to the S&P 500's gain of 2% [3] - The current consensus EPS estimate for the coming quarter is $1.02 on revenues of $37 million, and for the current fiscal year, it is $4.45 on revenues of $154.1 million [7] - The Zacks Industry Rank for Banks - West is in the top 28% of over 250 Zacks industries, suggesting a favorable outlook for the industry [8]

Financial Performance - FS Bancorp reported a net income of $7.4 million, or $0.92 per diluted share, for Q4 2024, down from $9.8 million, or $1.23 per diluted share, in Q4 2023[1]. - FS Bancorp reported a net income of $7,382,000 for Q4 2024, a decrease of 28% compared to $10,286,000 in Q3 2024 and a 24% decrease from $9,772,000 in Q4 2023[42]. - The return on assets for Q4 2024 was 0.98%, a decrease from 1.38% in Q3 2024 and 1.32% in Q4 2023[45]. - Basic earnings per share for Q4 2024 were $0.94, down 29% from $1.32 in Q3 2024 and down 25% from $1.25 in Q4 2023[42]. - Total interest and dividend income for Q4 2024 was $46,974,000, reflecting a 6% increase from $44,443,000 in Q4 2023[42]. - Total interest income for the year ended December 31, 2024, was $184,837,000, an 11% increase from $167,192,000 in 2023[44]. Dividends and Shareholder Returns - The company increased its quarterly cash dividend by 3.7% to $0.28 per common share, marking the forty-eighth consecutive quarterly dividend increase[2]. Asset and Liability Management - Total assets increased by $59.0 million, or 2.0%, to $3.03 billion at December 31, 2024, compared to $2.97 billion at the end of 2023[9]. - Total liabilities slightly increased to $2,693,356 thousand in Q4 2024 from $2,685,068 thousand in Q4 2023, a rise of 0.3%[47]. - Total deposits decreased by $87.9 million, or 3.6%, to $2.34 billion at December 31, 2024, primarily due to a $107.9 million decrease in brokered deposits[4]. - Total deposits decreased by 3.6% to $2.34 billion at December 31, 2024, compared to $2.43 billion at September 30, 2024[16]. - Noninterest-bearing checking deposits fell by 4.0% to $627.7 million at December 31, 2024, from $654.0 million a year earlier[17]. - Borrowings increased significantly by $144.0 million, or 87.9%, to $307.8 million at December 31, 2024, compared to $93.7 million at the end of 2023[4]. - Borrowings increased by 88% to $307,806,000 as of December 31, 2024, compared to $93,746,000 a year earlier[40]. Loan Portfolio - Loans receivable, net increased by $38.3 million, or 1.6%, to $2.50 billion at December 31, 2024, compared to $2.40 billion at the end of 2023[4]. - Total loans receivable, net increased by $38.3 million to $2.50 billion at December 31, 2024, compared to $2.46 billion at September 30, 2024, and increased by $100.5 million from $2.40 billion at December 31, 2023[10]. - Total real estate loans reached $1.61 billion at December 31, 2024, accounting for 63.8% of total loans, with significant increases in construction and development loans by $38.3 million and one-to-four-family loans by $25.7 million[10]. - Consumer loans decreased by $12.2 million to $620.2 million, primarily due to a $10.3 million decrease in indirect home improvement loans[10]. - Commercial business loans decreased by $12.1 million, primarily due to a $9.8 million decrease in commercial and industrial loans[10]. - The total amount of commercial real estate (CRE) loans was $345.3 million at December 31, 2024, down from $366.3 million at December 31, 2023[11]. - Construction loans totaled $330.7 million at December 31, 2024, reflecting an increase from $303.1 million at December 31, 2023[14]. - One-to-four-family loan originations totaled $155.3 million for the three months ended December 31, 2024, a decrease of 20.7% from $196.1 million in the previous quarter[14]. - The percentage of purchase loans in one-to-four-family originations was 83.2% for the quarter ended December 31, 2024, compared to 90.7% in the same quarter of the previous year[14]. Credit Quality - The allowance for credit losses for loans was $31.9 million, or 1.26% of gross loans receivable, reflecting an increase due to loan growth and higher nonperforming loans[25]. - Nonperforming loans rose to $13.6 million at December 31, 2024, up from $10.8 million at September 30, 2024, primarily due to increases in commercial real estate and business loans[26]. - The provision for credit losses on loans was $1.6 million for the three months ended December 31, 2024, slightly down from $1.7 million in the same period in 2023[32]. - The provision for credit losses increased by 9% year-over-year to $1,522,000 in Q4 2024, compared to $1,402,000 in Q4 2023[42]. - Net charge-offs increased by $348,000 to $983,000 for the three months ended December 31, 2024, compared to $635,000 for the same period last year[33]. Operational Efficiency - The efficiency ratio for Q4 2024 was 68.16%, compared to 69.42% in Q3 2024 and 62.47% in Q4 2023[45]. - Noninterest income decreased by $846,000 to $4.6 million for the three months ended December 31, 2024, from $5.5 million in the same period in 2023[34]. - Noninterest expense increased by $1.9 million to $24.4 million for the three months ended December 31, 2024, compared to $22.4 million for the same period in 2023[35]. - Total noninterest expense for Q4 2024 was $24,351,000, a 6% decrease from $25,832,000 in Q3 2024 but a 9% increase from $22,433,000 in Q4 2023[42]. Capital Position - Total stockholders' equity increased to $295.8 million at December 31, 2024, from $288.9 million at September 30, 2024, supported by net income of $7.4 million[22]. - The company maintained a total risk-based capital ratio of 14.5% at December 31, 2024, exceeding regulatory requirements[24]. - Regulatory capital ratios at the Bank were 14.2% for total risk-based capital and 11.2% for Tier 1 leverage capital at December 31, 2024, compared to 13.4% and 10.4% respectively at the end of 2023[7]. - Common equity ratio improved to 9.76% in Q4 2024 from 8.90% in Q4 2023, indicating a stronger capital position[52]. - The tangible common equity ratio improved to 9.25% in Q4 2024 from 8.25% in Q4 2023, indicating enhanced capital quality[52]. Future Outlook - The company anticipates challenges in executing plans for growth due to economic conditions and competitive pressures[37]. - The company plans to continue focusing on expanding its real estate and construction loan portfolios in the upcoming quarters[10].

Core Viewpoint - FS Bancorp, Inc. reported a decrease in net income for the fourth quarter of 2024, primarily due to a tax provision compared to a tax benefit in the previous quarter, while total assets surpassed $3 billion through organic loan growth [1][2]. Financial Performance - Fourth quarter net income was $7.4 million, or $0.92 per diluted share, down from $9.8 million, or $1.23 per diluted share, in the same quarter last year [1]. - Net income for the year ended December 31, 2024, was $35.0 million, or $4.36 per diluted share, compared to $36.1 million, or $4.56 per diluted share for 2023 [1]. - The company recorded a net interest margin of 4.31% for the fourth quarter of 2024, slightly down from 4.35% in the previous quarter and up from 4.24% in the same quarter last year [4]. Asset and Deposit Trends - Total assets increased by $59.0 million, or 2.0%, to $3.03 billion at December 31, 2024, compared to $2.97 billion at both September 30, 2024, and December 31, 2023 [11]. - Total deposits decreased by $87.9 million, or 3.6%, to $2.34 billion at December 31, 2024, primarily due to a $107.9 million decrease in brokered deposits [4][20]. Loan Portfolio - Loans receivable, net increased by $38.3 million, or 1.6%, to $2.50 billion at December 31, 2024, compared to $2.46 billion at September 30, 2024, and increased by $100.5 million, or 4.2%, from $2.40 billion at December 31, 2023 [4][13]. - Consumer loans decreased by $12.2 million, or 1.9%, to $620.2 million at December 31, 2024, compared to $632.4 million in the previous quarter [4]. Capital and Dividends - The company’s tangible book value per share increased by 13.8% year over year to $36.02 at December 31, 2024, compared to $31.64 at December 31, 2023 [3]. - The Board of Directors approved a quarterly cash dividend increase of $0.01 to $0.28 per common share, marking the forty-eighth consecutive quarterly dividend [2]. Segment Performance - The Commercial and Consumer Banking segment reported net income of $7.4 million, while the Home Lending segment recorded a net loss of $39,000 for the fourth quarter of 2024 [4][6]. - Total average assets for the Commercial and Consumer Banking segment were $2.38 billion, while the Home Lending segment had total average assets of $606.8 million [7].

Core Points - FS Bancorp, Inc. reported a fourth quarter net income of $7.4 million, down from $9.8 million in the same quarter last year, primarily due to a tax provision of $2.5 million compared to a tax benefit of $420,000 in the previous quarter [1][6] - The company achieved total assets surpassing $3 billion, driven mainly by organic loan growth [2] - The tangible book value per share increased by 13.8% year-over-year to $36.02 as of December 31, 2024 [3] Financial Performance - Fourth quarter net income was $7.4 million, a decrease from $10.3 million in the previous quarter and $9.8 million year-over-year [6] - Net interest margin for the fourth quarter was 4.31%, slightly down from 4.35% in the previous quarter and up from 4.24% year-over-year [6] - Total deposits decreased by $87.9 million, or 3.6%, to $2.34 billion at December 31, 2024, primarily due to a $107.9 million decrease in brokered deposits [6][22] - Loans receivable increased by $38.3 million, or 1.6%, to $2.50 billion at December 31, 2024, compared to $2.46 billion in the previous quarter [6][11] Segment Reporting - The Commercial and Consumer Banking segment reported net income of $7.4 million, while the Home Lending segment recorded a net loss of $39,000 [8] - Net interest income for the Commercial and Consumer Banking segment was $28.6 million, while the Home Lending segment reported $2.6 million [8] - Total average assets for the Commercial and Consumer Banking segment were $2.38 billion, and $606.8 million for the Home Lending segment [8] Asset and Loan Portfolio - Total assets increased by $59.0 million, or 2.0%, to $3.03 billion at December 31, 2024 [10] - The total loans receivable, net increased by $38.3 million to $2.50 billion at December 31, 2024, with significant growth in real estate loans [11][20] - Consumer loans decreased by $12.2 million, primarily due to a decrease in home improvement loans [11] Dividends and Shareholder Returns - The Board of Directors increased the quarterly cash dividend by $0.01 to $0.28 per common share, marking the forty-eighth consecutive quarterly dividend increase [2] - The company repurchased 35,000 shares of common stock at an average price of $48.47 per share, with $4.7 million remaining for future purchases under the existing share repurchase plan [6]

Core Insights - FS Bancorp reported revenue of $37.21 million for the quarter ended September 2024, reflecting a year-over-year increase of 4.5% [1] - Earnings per share (EPS) for the quarter was $1.29, up from $1.13 in the same quarter last year, representing a surprise of +12.17% compared to the consensus estimate of $1.15 [1] Financial Performance Metrics - Net Interest Margin was reported at 4.4%, slightly above the estimated 4.3% [1] - Efficiency Ratio stood at 69.4%, significantly higher than the average estimate of 62.7% [1] - Total Non-Interest Income was $5.97 million, slightly below the estimated $6 million [1] - Net Interest Income was reported at $31.24 million, marginally exceeding the estimate of $31.10 million [1] Stock Performance - FS Bancorp shares have returned -5.2% over the past month, contrasting with the Zacks S&P 500 composite's +2.8% change [2] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [2]