FS Bancorp(FSBW) - 2025 Q1 - Quarterly Results

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$7,382 in the same quarter last year[38]. - Basic earnings per share increased to $1.02, up 9$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$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$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$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$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].