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].
FS Bancorp(FSBW) - 2024 Q4 - Annual Results