FS Bancorp(FSBW) - 2024 Q3 - Quarterly Results

Financial Performance - FS Bancorp, Inc. reported a net income of $10.3 million, or$ 1.29 per diluted share, for Q3 2024, an increase from $9.0 million, or$ 1.13 per diluted share, in Q3 2023[1]. - The company reported a 3% increase in retained earnings, reaching $251,843 thousand compared to the previous quarter, and a 13% increase year-over-year[42]. - Net income for Q3 2024 reached$ 27,642,000, reflecting a 5% increase compared to $26,281,000 in Q3 2023[45]. - Basic earnings per share for Q3 2024 were$ 3.54, a 5% increase from $3.38 in Q3 2023[45]. - Basic earnings per share increased to$ 1.32 for the three months ended September 30, 2024, compared to $1.15 for the same period in 2023, reflecting a growth of 14.78%[48]. Deposits and Assets - Total deposits increased by$ 44.5 million, or 1.9%, to $2.43 billion at September 30, 2024, driven by a rise in noninterest-bearing checking and certificates of deposit[3]. - Total assets increased by$ 28.8 million, or 1.0%, to $2.97 billion as of September 30, 2024, compared to$ 2.94 billion at June 30, 2024[15]. - Total deposits as of September 30, 2024, were $2,427,331 thousand, a slight increase of 1.9% from$ 2,382,803 thousand in June 30, 2024[22]. - Cash and cash equivalents totaled $40,340 thousand, a 22% increase from the previous quarter but a 50% decrease year-over-year[42]. - The company’s total stockholders' equity rose to$ 288,902 thousand, reflecting a 2% increase from the previous quarter and a 15% increase year-over-year[42]. Loans and Credit Quality - Loans receivable remained stable at $2.46 billion as of September 30, 2024, reflecting an increase of$ 88.1 million, or 3.7%, from the previous year[3]. - The provision for credit losses on loans was $1.5 million for the three months ended September 30, 2024, compared to$ 683,000 for the same period in 2023, reflecting increased charge-off activity[35]. - Nonperforming loans decreased by $634,000 to$ 10.8 million at September 30, 2024, compared to $11.4 million at June 30, 2024, but increased by$ 5.2 million from $5.6 million at September 30, 2023[29]. - The allowance for credit losses on loans was$ 31.2 million, or 1.25% of gross loans receivable, at September 30, 2024, remaining virtually static compared to the prior quarter[28]. - The total amount of construction loans was detailed, with a significant portion maturing within the next two years, totaling $149.3 million[19]. Interest Income and Expenses - Net interest income for the three months ended September 30, 2024, increased by$ 610,000 to $31.2 million compared to$ 30.6 million for the same period in 2023, driven by a $3.8 million increase in interest and dividend income[31]. - Total interest expense surged to$ 45,872,000, a 53% increase from $29,901,000 in Q3 2023[45]. - The average total cost of funds increased by 47 basis points to 2.39% for the three months ended September 30, 2024, from 1.92% for the same period in 2023[34]. - The average total cost of funds increased to 2.33% from 1.58% year-over-year, indicating a rise in funding costs[47]. Capital and Ratios - Regulatory capital ratios were 14.2% for total risk-based capital and 11.2% for Tier 1 leverage capital at September 30, 2024, compared to 13.9% and 10.9% respectively in the previous quarter[6]. - The Bank's total risk-based capital ratio was 14.4% at September 30, 2024, exceeding all regulatory capital requirements[27]. - The common equity ratio increased to 9.73% as of September 30, 2024, compared to 8.58% a year earlier[46]. - The common equity ratio (GAAP) improved to 9.73% as of September 30, 2024, compared to 8.58% a year earlier, indicating stronger capital position[52]. Other Key Metrics - The efficiency ratio for Q3 2024 was 69.42%, slightly higher than 66.22% in Q3 2023[46]. - Return on assets improved to 1.38% in Q3 2024, compared to 1.22% in both the previous quarter and the same quarter last year[46]. - Noninterest income increased by$ 985,000 to $6.0 million for the three months ended September 30, 2024, primarily due to a$ 648,000 increase in gain on sale of loans[37]. - The effective corporate income tax rate for the three months ended September 30, 2024, was (4.3)%, significantly reduced by energy tax credits, compared to 22.0% for the same period in 2023[39].