Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-35589 FS BANCORP, INC. (Exact name of registrant as specified in its charter) Washington 45-4585178 (State or ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-35589 FS BANCORP, INC. (Exact name of registrant as specified in its charter) Washington 45-4585178 (State or ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K Indicate by check mark if the Registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐ No ☒ (Mark one) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 001-35589 FS BANCORP, ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-35589 FS BANCORP, INC. (Exact name of registrant as specified in its charter) ( j Washington p 45-4585178 ...

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) (Exact name of registrant as specified in its charter) ( j Washington p 45-4585178 organization) (IRS Employer Identification No.) 6920 22 ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to (Mark One) Commission File Number: 001-35589 FS BANCORP, INC. (Exact name of registrant as specified in its charter) Washington 45-4585178 organizat ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark one) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 001-35589 FS BANCORP, INC. (Exact name of registrant as specified in its charter) | Washington | 45-4585178 | | --- | --- | | (State or other jurisdicti ...

Loan Portfolio and Provision for Losses - As of September 30, 2020, the Company had 471 Paycheck Protection Program (PPP) loans totaling $74.1 million for small- to mid-size businesses [181]. - The Company recorded a provision for loan losses of $3.1 million for the quarter ended September 30, 2020, compared to $573,000 for the same quarter in 2019, reflecting the adverse impact of the COVID-19 pandemic [182]. - The total amount of portfolio loans under payment/relief agreements as of September 30, 2020, included $23.8 million in commercial real estate loans and $7.6 million in commercial business loans [182]. - The allowance for loan and lease losses (ALLL) was $24.8 million, or 1.63% of gross loans receivable, at September 30, 2020, compared to $13.2 million, or 0.98%, at December 31, 2019 [211]. - Non-performing loans increased to $7.6 million at September 30, 2020, from $3.0 million at December 31, 2019, with a ratio of non-performing loans to total gross loans of 0.50% [213]. - Substandard loans increased to $18.5 million at September 30, 2020, compared to $6.7 million at December 31, 2019 [211]. - The provision for loan losses increased significantly to $11.4 million for the nine months ended September 30, 2020, compared to $2.2 million in the same period of 2019, reflecting credit deterioration due to the COVID-19 pandemic [243]. Loan Originations and Sales - For the nine months ended September 30, 2020, the Company originated $1.35 billion of one-to-four-family loans, with $1.12 billion sold to investors [191]. - The Company originated $1.35 billion in one-to-four-family loans during the nine months ended September 30, 2020, a 112.0% increase compared to $638.7 million for the same period in 2019 [210]. - The Company sold $1.12 billion of one-to-four-family loans during the nine months ended September 30, 2020, compared to $551.6 million for the same period one year ago [210]. Financial Performance - Net income for the three months ended September 30, 2020, was $12.7 million, a 78.87% increase from $7.1 million for the same period in 2019, primarily due to a $10.8 million increase in noninterest income [223]. - Net income for the nine months ended September 30, 2020, was $27.9 million, a 66.5% increase from $16.8 million in the same period of 2019 [236]. - Noninterest income surged by $10.8 million, or 160.2%, to $17.5 million for the three months ended September 30, 2020, driven by a $11.6 million increase in gain on sale of loans [232]. - Noninterest income rose by $23.2 million, or 133.4%, to $40.6 million for the nine months ended September 30, 2020, driven by a $24.9 million increase in gain on sale of loans [244]. Asset and Liability Management - Total assets increased by $341.6 million, or 19.9%, to $2.05 billion at September 30, 2020, compared to $1.71 billion at December 31, 2019 [207]. - Loans receivable, net increased by $155.2 million to $1.49 billion at September 30, 2020, from $1.34 billion at December 31, 2019 [208]. - Loans held for sale increased by $145.4 million, or 208.6%, to $215.1 million at September 30, 2020, from $69.7 million at December 31, 2019 [209]. - Total liabilities increased by $321.3 million to $1.83 billion at September 30, 2020, from $1.51 billion at December 31, 2019, primarily due to increases in deposits and borrowings [215]. - Total deposits rose by $220.8 million to $1.61 billion at September 30, 2020, driven by organic growth, PPP loan proceeds, and government stimulus checks [216]. Interest Income and Expense - Net interest income increased by $1.2 million to $18.9 million for the three months ended September 30, 2020, compared to $17.7 million for the same period in 2019 [225]. - Interest income decreased by $483,000 to $22.2 million for the three months ended September 30, 2020, primarily due to a 121 basis point decrease in the average yield on interest-earning assets [228]. - The net interest margin decreased by 62 basis points to 3.92% for the three months ended September 30, 2020, from 4.54% for the same period in the prior year [227]. - Interest income for the nine months ended September 30, 2020, decreased by $1.5 million to $65.9 million, primarily due to a 98 basis point decrease in the average yield on interest-earning assets [240]. - Interest expense decreased by $2.8 million to $11.6 million for the nine months ended September 30, 2020, primarily due to a $2.3 million decrease in interest expense on deposits and a $474,000 decrease on borrowings [241]. Capital and Liquidity - The Bank maintained a Tier 1 leverage-based capital ratio of 10.7% at September 30, 2020, down from 11.6% at December 31, 2019, while still exceeding the minimum capital requirements [256]. - FS Bancorp, Inc. had $12.6 million in unrestricted cash to meet liquidity needs as of September 30, 2020 [253]. - As of September 30, 2020, the Bank's total borrowing capacity with the FHLB was $573.8 million, with unused capacity of $495.5 million [249]. Operational Efficiency - The efficiency ratio improved to 47.11% for Q3 2020, compared to 60.14% for Q3 2019, indicating better cost management relative to income [234]. - The efficiency ratio improved to 50.61% for the nine months ended September 30, 2020, compared to 66.24% in the prior year, indicating better cost management relative to income [246]. - Noninterest expense rose by $2.5 million, or 16.7%, to $17.2 million for the three months ended September 30, 2020, primarily due to increased salaries and benefits [233]. - Noninterest expense increased by $1.4 million, or 3.0%, to $48.0 million for the nine months ended September 30, 2020, primarily due to a $2.4 million increase in salaries and benefits [245].

Loan Performance and Provisions - The Company recorded a provision for loan losses of $4.6 million for the quarter ended June 30, 2020, compared to $910,000 for the same quarter in 2019, reflecting the adverse impact of the COVID-19 pandemic [205]. - The allowance for loan and lease losses (ALLL) was $21.5 million, or 1.47% of gross loans receivable, at June 30, 2020, compared to $13.2 million, or 0.98%, at December 31, 2019 [243]. - Non-performing loans increased to $7.9 million at June 30, 2020, from $3.0 million at December 31, 2019, with a ratio of non-performing loans to total gross loans of 0.54% [243]. - The provision for loan losses increased significantly to $4.6 million for the three months ended June 30, 2020, from $910,000 in the same period of 2019, due to credit deterioration from the COVID-19 pandemic [267]. - For the six months ended June 30, 2020, the provision for loan losses increased to $8.3 million from $1.7 million in the same period of 2019, primarily due to credit deterioration related to the COVID-19 pandemic [282]. Loan Originations and Modifications - The Company funded 463 Paycheck Protection Program (PPP) loans totaling $75.3 million as of June 30, 2020, aimed at supporting small to midsize businesses [203]. - As of June 30, 2020, the Bank approved loan modifications for 355 individual loans with aggregate principal balances totaling $103.6 million due to COVID-19 [208]. - The Company originated $764.0 million of one-to-four-family loans during the six months ended June 30, 2020, with $639.4 million sold to investors [218]. - One-to-four-family loan originations increased by $412.3 million, or 117.2%, to $764.0 million during the six months ended June 30, 2020, compared to $351.7 million during the same period in 2019 [239]. - Commercial business loans increased by $54.0 million, primarily due to $75.3 million in PPP loans originated in the second quarter of 2020 [237]. Financial Performance - Net income for the three months ended June 30, 2020, was $10.0 million, a 122.2% increase from $4.5 million for the same period in 2019 [258]. - For the six months ended June 30, 2020, net income was $15.2 million, up from $9.7 million in the same period of 2019, influenced by a $12.4 million increase in noninterest income [273]. - Noninterest income surged by $8.0 million, or 132.3%, to $14.1 million for the three months ended June 30, 2020, driven by a $9.8 million increase in gains on loan sales [268]. - Noninterest income rose by $12.4 million, or 116.4%, to $23.0 million for the six months ended June 30, 2020, driven by a $13.3 million increase in gain on sale of loans [283]. Asset and Liability Changes - Total assets increased by $295.7 million, or 17.3%, to $2.01 billion at June 30, 2020, compared to $1.71 billion at December 31, 2019 [236]. - Loans receivable, net increased by $108.1 million to $1.44 billion at June 30, 2020, from $1.34 billion at December 31, 2019 [237]. - Total liabilities increased by $287.3 million to $1.80 billion at June 30, 2020, from $1.51 billion at December 31, 2019, primarily due to increases in deposits and borrowings [246]. - Total deposits rose by $214.5 million to $1.61 billion at June 30, 2020, driven by PPP loan proceeds and government stimulus checks [247]. Interest Income and Expenses - Net interest income increased by $326,000 to $17.9 million for the three months ended June 30, 2020, compared to $17.5 million for the same period in 2019 [261]. - Interest income decreased by $652,000 to $21.7 million for the three months ended June 30, 2020, primarily due to a 111 basis point decrease in the average yield on interest-earning assets [264]. - Net interest income for the six months ended June 30, 2020, increased slightly by $110,000 to $35.3 million, despite a decrease in interest income of $1.0 million [274]. - Interest income for the six months ended June 30, 2020, decreased by $1.0 million to $43.7 million, with an average yield on interest-earning assets dropping to 5.06% [278]. - Noninterest expense decreased by $2.4 million, or 14.3%, to $14.6 million for the three months ended June 30, 2020, primarily due to a reduction in salaries and benefits [269]. Capital and Efficiency Ratios - Total stockholders' equity increased by $8.4 million to $208.6 million at June 30, 2020, primarily due to net income and other comprehensive income [254]. - The efficiency ratio improved to 45.71% for the three months ended June 30, 2020, compared to 72.28% for the same period in 2019, reflecting increased noninterest income and decreased noninterest expenses [270]. - The efficiency ratio improved to 52.79% for the six months ended June 30, 2020, compared to 69.49% for the same period in 2019, reflecting increased noninterest income and decreased noninterest expense [285]. - The Tier 1 leverage-based capital ratio for the Bank at June 30, 2020 was 10.8%, down from 11.6% at December 31, 2019, while still exceeding the minimum capital requirements [295]. Community Engagement and Operational Adjustments - The Company has taken measures to ensure branch safety, with most employees working remotely and branches operating under specific guidelines [209]. - The Company is actively involved in community activities, strengthening relationships within its market areas [214]. - The Company has emphasized lower cost core deposits to reduce funding costs for loan growth [215]. - The Company is focused on diversifying revenues and expanding lending channels, particularly in residential mortgage and commercial construction [217].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2020 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001‑35589 FS BANCORP, INC. (Exact name of registrant as specified in its charter) Washington 45‑4585178 (Stat ...