Acquisition and Expansion - The Company completed the acquisition of seven retail bank branches from Columbia State Bank, gaining approximately $425.5 million in deposits and $66.1 million in loans[179]. - The Company is committed to expanding into new markets and enhancing its community banking presence[180]. - The Company’s strategic focus includes diversifying revenues, expanding lending channels, and enhancing the banking franchise[180]. Loan Portfolio and Originations - As of June 30, 2024, the Company's loan portfolio consisted of real estate loans (61.7%), consumer loans (25.8%), and commercial business loans (12.5%)[181]. - The Company funded $32.6 million in fixture-secured consumer loans during the quarter ended June 30, 2024, with approximately 1,500 loans originated[182]. - One-to-four-family loan originations totaled $206.1 million for the three months ended June 30, 2024, including $164.5 million sold to investors[182]. - One-to-four-family loan originations for the six months ended June 30, 2024, totaled $363.8 million, a 34.5% increase from $270.5 million in the same period of 2023[210]. - The Company originated $67.6 million in fixture-secured loans for the six months ended June 30, 2024, representing 100% of the total[182]. Financial Performance - Net income for the three months ended June 30, 2024, was $9.0 million, a slight decrease from $9.1 million for the same period in 2023, primarily due to a 3.6% decrease in net interest income[221]. - Net income for the six months ended June 30, 2024, was $17.4 million, a slight increase from $17.3 million for the same period in 2023[236]. - Noninterest income increased by $1.0 million to $5.9 million for the three months ended June 30, 2024, driven by a $516,000 increase in gain on sale of loans[233]. - Noninterest income increased by $927,000 to $11.0 million for the six months ended June 30, 2024, primarily due to an $8.2 million increase in gain on sale of MSRs[248]. Interest Income and Expenses - The Company’s earnings are primarily dependent on net interest income, which is influenced by the balances of loans and investments outstanding[186]. - Net interest income decreased by $1.2 million to $30.4 million for the three months ended June 30, 2024, compared to $31.6 million for the same period in 2023, due to rising interest expenses[226]. - Interest income increased by $5.1 million to $45.9 million for the three months ended June 30, 2024, primarily due to a $138.7 million increase in average interest-earning assets[227]. - Interest expense rose by $6.2 million to $15.5 million for the three months ended June 30, 2024, driven by a $5.6 million increase in deposit interest expense[228]. - Total interest income increased by $11.3 million to $90.8 million for the six months ended June 30, 2024, primarily due to a $9.2 million increase in interest income on loans receivable[241]. - Interest expense increased by $12.8 million to $30.1 million for the six months ended June 30, 2024, primarily due to an increase in interest expense on deposits of $11.9 million[244]. Asset Quality and Credit Losses - The allowance for credit losses (ACL) on loans totaled $31.2 million or 1.26% of gross loans receivable at June 30, 2024, compared to $31.5 million or 1.30% at December 31, 2023[211]. - Nonperforming loans increased by $454,000 to $11.4 million at June 30, 2024, with a ratio of nonperforming loans to total gross loans at 0.46%[213]. - The provision for loan losses increased by $361,000, or 50.4%, for the three months ended June 30, 2024, compared to the same period in 2023[221]. - Provision for credit losses was $1.1 million for the three months ended June 30, 2024, compared to $716,000 for the same period in 2023, reflecting an increase in nonperforming loans[231]. - Net loan charge-offs totaled $1.2 million for the three months ended June 30, 2024, up from $650,000 in the same period in 2023[232]. Deposits and Borrowings - Total deposits decreased by $139.5 million to $2.38 billion at June 30, 2024, from $2.52 billion at December 31, 2023[214]. - Total deposits decreased to $2,382.8 million at June 30, 2024, from $2,522.3 million at December 31, 2023[218]. - Borrowings increased by $88.1 million to $181.9 million at June 30, 2024, from $93.7 million at December 31, 2023, primarily due to a decrease in total brokered deposits[216]. - Uninsured deposits were approximately $586.6 million, or 24.6% of total deposits, at June 30, 2024, compared to $606.5 million, or 24.0% of total deposits, at December 31, 2023[216]. Equity and Capital - Total stockholders' equity increased by $19.5 million to $284.0 million at June 30, 2024, from $264.5 million at December 31, 2023, driven by net income of $17.4 million[217]. - The book value per common share increased to $37.15 at June 30, 2024, from $34.36 at December 31, 2023[220]. - At June 30, 2024, the Bank's Tier 1 leverage-based capital ratio was 10.9%, exceeding all regulatory capital requirements[261]. Efficiency and Expenses - Noninterest expense decreased by $347,000 to $23.9 million for the three months ended June 30, 2024, primarily due to reductions in loan costs and FDIC insurance[234]. - The efficiency ratio improved to 65.78% for the three months ended June 30, 2024, compared to 66.52% for the same period in 2023[234]. - The efficiency ratio remained relatively unchanged at 66.07% for the six months ended June 30, 2024, compared to 66.04% for the same period in 2023[249]. Dividends and Stock Repurchases - The current quarterly common stock dividend rate is $0.27 per share, with total dividends paid each quarter expected to be approximately $2.1 million based on outstanding shares as of June 30, 2024[259]. - The Company has approximately $630,000 remaining available for future stock repurchases as of June 30, 2024, with an additional program authorized for up to $5.0 million[260].

Core Viewpoint - FS Bancorp (FSBW) is currently identified as a strong value stock with a Zacks Rank of 2 (Buy) and a Value grade of A, indicating it is potentially undervalued in the market [4][8]. Valuation Metrics - FSBW has a P/E ratio of 10.43, which is lower than the industry average of 11.53. Over the past 52 weeks, its Forward P/E has fluctuated between 6.37 and 10.60, with a median of 7.61 [4]. - The company has a P/B ratio of 1.25, compared to the industry average of 1.38. Its P/B ratio has ranged from 0.87 to 1.25 over the past year, with a median of 0.95 [5]. - FSBW's P/S ratio stands at 1.72, which is lower than the industry average of 2.11. This ratio is considered a reliable performance indicator due to the difficulty of manipulating sales figures [6]. - The P/CF ratio for FSBW is 7.22, significantly lower than the industry average of 10.72. Its P/CF has varied from 4.71 to 7.22 over the past year, with a median of 5.31 [7]. Investment Outlook - The combination of these valuation metrics suggests that FS Bancorp is likely undervalued, making it an attractive option for value investors, especially given its strong earnings outlook [8].

Dividend Increases - Several companies are set to increase their dividends, with the average increase being 7.1% and a median of 5.9% [23] - The companies listed include Source Corporation (SRCE) with a 5.88% increase, NextEra Energy Partners (NEP) with a 1.40% increase, and Orrstown Financial Services (ORRF) with a notable 15.00% increase [28] Company Performance Metrics - SRCE has a current price of $63.06, a P/E ratio of 12.6, and is 57% off its 52-week low [4] - NEP's current price is $26, with a P/E ratio of 0 and is 42% off its 52-week low [4] - FSBW has a current price of $42.85, a P/E ratio of 7.19, and is 57% off its 52-week low [4] - ORRF's current price is $34.27, with a P/E ratio of 8.81, and is 82% off its 52-week low [4] Dividend Yield and Growth Rates - ORRF has a yield of 2.68% with a 1-year dividend growth rate of 2.6% [15] - FSBW has a yield of 2.52% and a 5-year dividend growth rate of 28.6% [15] - SRCE has a yield of 2.28% and a 10-year growth rate of 7.9% [15] - NEP stands out with a yield of 14% and a 5-year growth rate of 13.8% [15] Historical Returns - FSBW has shown a total return of 50% over the past decade, translating to a 19.7% CAGR [18] - SRCE and ODC have also outperformed the benchmark SCHD, with total returns of 220% and 200%, respectively [7] Ex-Dividend Dates - The ex-dividend date for SRCE is August 5, 2024, for NEP is August 6, 2024, and for FSBW is August 7, 2024 [28]

Core Insights - FS Bancorp reported revenue of $36.27 million for the quarter ended June 2024, reflecting a year-over-year decline of 0.3% and an EPS of $1.13 compared to $1.25 a year ago [1] Financial Performance Metrics - The reported revenue exceeded the Zacks Consensus Estimate of $35.4 million by 2.46%, while the EPS surprise was 9.71% against a consensus estimate of $1.03 [3] - Net Interest Margin was reported at 4.3%, matching the average estimate, while the Efficiency Ratio was 65.8%, slightly above the estimated 65% [4] - Total Non-Interest Income was $5.87 million, surpassing the average estimate of $4.60 million, while Net Interest Income was $30.40 million, slightly below the average estimate of $30.80 million [4] Stock Performance - FS Bancorp shares have returned +21.1% over the past month, significantly outperforming the Zacks S&P 500 composite's +2% change [6] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [6]

Company Performance - FS Bancorp (FSBW) reported quarterly earnings of $1.13 per share, exceeding the Zacks Consensus Estimate of $1.03 per share, but down from $1.25 per share a year ago [1] - The company has surpassed consensus EPS estimates in all four of the last quarters [2] - FS Bancorp's revenues for the quarter ended June 2024 were $36.27 million, surpassing the Zacks Consensus Estimate by 2.46%, but down from $36.39 million year-over-year [9] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.09 on revenues of $36.05 million, and for the current fiscal year, it is $3.93 on revenues of $139.15 million [12] - The estimate revisions trend for FS Bancorp is currently unfavorable, leading to a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [5] Industry Context - FS Bancorp operates within the Zacks Banks - West industry, which is currently ranked in the bottom 34% of over 250 Zacks industries [6] - The performance of FS Bancorp's stock may be influenced by the overall outlook of the banking industry [6] Stock Performance - FS Bancorp shares have increased approximately 9.8% since the beginning of the year, compared to a 16.7% gain for the S&P 500 [10] - Despite the year-to-date increase, FS Bancorp has underperformed the market [11]

Exhibit 99.1 FS Bancorp, Inc. Reports Second Quarter Net Income of $9.0 Million or $1.13 Per Diluted Share and Previously Announced Share Repurchase Plan and 3.8% Increase in its Quarterly Dividend MOUNTLAKE TERRACE, WA – July 23, 2024 – FS Bancorp, Inc. (NASDAQ: FSBW) (the "Company"), the holding company for 1st Security Bank of Washington (the "Bank" or "1st Security Bank") today reported 2024 second quarter net income of $9.0 million, or $1.13 per diluted share, compared to $9.1 million, or $1.16 per dil ...

Group 1 - FS Bancorp, Inc. has appointed Matthew D. Mullet as President of both the Bank and the Company, while he will continue to serve as Chief Financial Officer [5] - Joseph C. Adams remains the Chief Executive Officer for both the Company and the Bank, highlighting the leadership continuity within the organization [5] - 1st Security Bank operates twenty-seven branches and provides loan and deposit services primarily in Washington State, including the Puget Sound and Tri-Cities areas [3][5] Group 2 - Matthew D. Mullet has a strong background in banking, having served in various roles since 2000, including Chief Financial Officer at Golf Savings Bank and 1st Security Bank [5] - The Bank focuses on home mortgage services throughout the Northwest, predominantly in Washington State [3][5] - Mullet is recognized for his leadership skills and deep understanding of the banking landscape, which is expected to benefit the Bank's operations [3]

Core Viewpoint - FS Bancorp, Inc. (FSBW) has demonstrated a commitment to returning value to shareholders through consistent dividend increases and share repurchase programs, indicating a strong financial position and growth potential. Group 1: Dividend Information - FSBW has been paying quarterly cash dividends for 46 consecutive quarters, with a current payout ratio of 22% of its earnings, allowing for reinvestment and growth while providing returns to shareholders [1] - In January 2024, FSBW increased its quarterly dividend by 4% to 26 cents per share [2] - Recently, FSBW announced a dividend hike to 27 cents per share, reflecting a 3.8% increase from the previous payout, with payment scheduled for August 21, 2024 [8] Group 2: Share Repurchase Programs - FSBW authorized a share repurchase plan in April 2022 for $10 million worth of shares [3] - An additional share buyback program of up to $5 million was recently authorized, which will remain active through July 31, 2025 [10] - As of March 31, 2024, $3 million worth of shares remained available under the existing repurchase program [10] Group 3: Financial Health - FSBW's common equity CET 1 capital ratio is 12.47%, and the total risk-based capital ratio is 13.72%, both exceeding regulatory requirements [4] - As of March 31, 2024, FSBW reported total cash and cash equivalents of $45.4 million, total loans of $2.4 billion, and long-term borrowings of $129.9 million, indicating a solid liquidity position [11] - The company has experienced a 28% increase in share price over the past year [5] Group 4: Growth Metrics - FSBW has increased dividends 11 times in the last five years, with a five-year annualized growth rate of 30.24% [9] - The current dividend yield stands at 2.9% based on a closing price of $37.75 as of July 12 [9]

The repurchase program permits shares to be repurchased in open market or private transactions or pursuant to a trading plan adopted in accordance with Rule 10b5-1 of the Securities and Exchange Commission ("SEC"). About FS Bancorp Forward-Looking Statements In addition, the Company's Board of Directors authorized an additional repurchase of up to $5.0 million in shares of the Company's outstanding shares of common stock in the open market, in privately negotiated transactions or shares withheld upon the ex ...

MOUNTLAKE TERRACE, Wash., May 24, 2024 (GLOBE NEWSWIRE) -- FS Bancorp, Inc. (NASDAQ:FSBW), the holding company for 1st Security Bank of Washington ("1st Security" or "Bank") announced today the promotions of Kelli Nielsen and Donn Costa to the positions of EVP, Chief Retail Banking Officer and EVP, Chief Home Lending Officer, respectively. 1st Security Bank Chief Executive Officer, Joe Adams, announced the promotions at an all-employee meeting on Friday, May 17th. During the announcement, Adams said, "Kelli ...