Financial Position - Total assets increased by $36.9 million to $3.07 billion at March 31, 2025, from $3.03 billion at December 31, 2024[185]. - Total liabilities increased by $33.8 million to $2.77 billion at March 31, 2025, primarily due to a $275.7 million increase in deposits[192]. - Total deposits rose to $2.62 billion at March 31, 2025, up from $2.34 billion at December 31, 2024, reflecting increases across all deposit categories[193]. - Certificates of deposit (CDs) increased by $204.4 million to $1.23 billion at March 31, 2025, with non-retail CDs representing 28.5% of total CDs[194]. - Uninsured deposits were approximately $679.4 million or 26.0% of total deposits at March 31, 2025, down from $652.7 million or 27.9% at December 31, 2024[197]. - Book value per common share was $39.12 at March 31, 2025, compared to $38.26 at December 31, 2024[200]. Loan Portfolio - The loan portfolio composition at March 31, 2025, included commercial real estate loans (34.5%), residential real estate loans (30.0%), consumer loans (24.0%), and commercial business loans (11.5%)[177]. - The Company funded $26.9 million in fixture-secured consumer loans during the quarter ended March 31, 2025, consisting of 1,232 loans[178]. - One-to-four-family loan originations for the three months ended March 31, 2025, totaled $145.4 million, a decrease of 5.6% compared to $153.9 million for the same period in 2024[189]. - The Company originated $141.4 million of one-to-four-family loans during the three months ended March 31, 2025, with $91.9 million sold to investors[179]. - Total undisbursed construction and development loan commitments increased by $11.3 million to $185.4 million at March 31, 2025[186]. - Loans held for sale increased by $3.2 million to $31.0 million at March 31, 2025, from $27.8 million at December 31, 2024[187]. - The allowance for credit losses (ACL) on loans was $31.7 million or 1.25% of gross loans receivable at March 31, 2025, compared to $31.9 million or 1.26% at December 31, 2024[190]. - Classified loans totaled $23.5 million at March 31, 2025, an increase from $22.9 million at December 31, 2024, with nonperforming loans rising to $14.5 million from $13.6 million[191]. Income and Expenses - Net income for the three months ended March 31, 2025, was $8.0 million, a decrease from $8.4 million for the same period in 2024, primarily due to a $1.5 million increase in noninterest expense[201]. - Net interest income increased by $636,000 to $31.0 million for the three months ended March 31, 2025, driven by a $1.9 million increase in interest income[206]. - Interest income for Q1 2025 increased by $1.9 million to $46.8 million, driven by a $2.3 million rise in interest income on loans receivable[208]. - Interest expense rose by $1.3 million to $15.8 million in Q1 2025, primarily due to a $1.1 million increase in borrowing costs[211]. - Noninterest expense increased by $1.5 million to $25.1 million in Q1 2025, mainly due to higher salaries and benefits[217]. - The efficiency ratio weakened to 69.39% in Q1 2025 from 66.36% in Q1 2024, indicating that noninterest expense growth outpaced revenue growth[218]. Capital and Regulatory Compliance - The Bank maintained a Tier 1 leverage-based capital ratio of 11.3% and was considered "well capitalized" as of March 31, 2025[232]. - FS Bancorp has exceeded all applicable regulatory capital requirements as of March 31, 2025[233]. - The regulatory capital ratios for FS Bancorp at March 31, 2025 are 9.9% for Tier 1 leverage-based capital, 11.5% for Tier 1 risk-based capital, 14.7% for total risk-based capital, and 11.5% for CET 1 capital ratio[233]. Market Risk and Strategic Focus - The Company’s strategic focus includes growing and diversifying the loan portfolio and expanding into new markets[176]. - There have been no material changes in the market risk disclosures contained in FS Bancorp's 2024 Form 10-K[234].
FS Bancorp(FSBW) - 2025 Q1 - Quarterly Report