FS Bancorp(US:FSBW)2025-11-10 21:38Financial Position - Total assets increased by $179.6 million to $3.21 billion at September 30, 2025, from $3.03 billion at December 31, 2024[187]. - Total liabilities increased by $174.9 million to $2.91 billion at September 30, 2025, primarily due to a $347.1 million increase in deposits[199]. - Total stockholders' equity increased by $4.7 million to $300.5 million at September 30, 2025, primarily reflecting net income of $24.9 million[206]. - As of September 30, 2025, the Bank exceeded all minimum capital requirements set by the FDIC, maintaining a "well capitalized" status[254]. - The Bank's capital ratios at September 30, 2025, included Tier 1 leverage-based capital at 11.0%, Tier 1 risk-based capital at 12.6%, total risk-based capital at 13.8%, and common equity Tier 1 capital at 12.6%[254]. - FS Bancorp, as a bank holding company, also exceeded all regulatory capital requirements with Tier 1 leverage-based capital at 9.5%, Tier 1 risk-based capital at 11.0%, total risk-based capital at 13.9%, and CET 1 capital ratio at 11.0% as of September 30, 2025[255]. Loan Performance - Loans receivable, net, increased by $97.7 million to $2.60 billion at September 30, 2025, compared to $2.50 billion at December 31, 2024[188]. - One-to-four-family loan originations for the nine months ended September 30, 2025, totaled $520.3 million, a decrease of 7.1% compared to $560.3 million for the same period in 2024[193]. - The allowance for credit losses (ACL) on loans totaled $30.1 million, or 1.14% of gross loans receivable, at September 30, 2025, down from 1.26% at December 31, 2024[195]. - Nonperforming loans increased by $4.8 million to $18.4 million at September 30, 2025, from $13.6 million at December 31, 2024, with a nonperforming loans to total gross loans ratio rising to 0.70%[196]. - Classified loans totaled $27.1 million at September 30, 2025, compared to $22.9 million at December 31, 2024, with the coverage ratio of the allowance for credit losses on loans to nonperforming loans declining to 163.8%[197]. - The provision for credit losses increased by $1.9 million, or 48.5%, to $5.5 million for the nine months ended September 30, 2025, compared to $3.7 million for the same period in 2024[226]. - Net loan charge-offs totaled $4.0 million for the three months ended September 30, 2025, compared to $1.6 million for the same period in 2024[221]. Deposits and Funding - Total deposits rose by $347.1 million to $2.69 billion at September 30, 2025, with increases in all deposit categories, including a $50.7 million rise in transactional accounts[200]. - Certificates of deposit (CDs) increased by $270.9 million to $1.3 billion at September 30, 2025, with non-retail CDs representing 28.8% of total CDs[201]. - Total deposits increased by $347.1 million during the nine months ended September 30, 2025, with a net increase in brokered deposits of $143.0 million[249]. Income and Expenses - Net income for the three months ended September 30, 2025, was $9.2 million, a decrease from $10.3 million for the same period in 2024, primarily due to a $2.8 million increase in provision for income tax expense[208]. - Net interest income increased by $2.4 million to $33.7 million for the three months ended September 30, 2025, driven by a $3.9 million increase in total interest income[212]. - Total interest income for the three months ended September 30, 2025, increased by $3.9 million to $51.0 million, primarily due to an increase in interest income on loans receivable[214]. - Noninterest income decreased by $373,000 to $5.6 million for the three months ended September 30, 2025, from $6.0 million for the same period in 2024[222]. - Total interest expense increased by $1.5 million to $17.3 million for the three months ended September 30, 2025, from $15.8 million for the same period in 2024[217]. - Noninterest expense increased by $2.7 million to $75.9 million for the nine months ended September 30, 2025, mainly due to higher salaries and benefits[240]. - The efficiency ratio improved to 64.63% for the three months ended September 30, 2025, compared to 69.42% for the same period in 2024[224]. - The efficiency ratio weakened to 67.40% for the nine months ended September 30, 2025, compared to 67.21% in the prior year, due to rising noninterest expenses[241]. Interest Rates and Margins - Net interest margin (NIM) increased by two basis points to 4.37% for the three months ended September 30, 2025, reflecting higher yields on interest-earning assets[213]. - Net interest margin (NIM) increased three basis points to 4.33% for the nine months ended September 30, 2025, compared to 4.30% for the same period in the prior year[231]. - The average cost of total interest-bearing liabilities decreased three basis points to 3.15% for the three months ended September 30, 2025[219]. Market Risk - There have been no material changes in the market risk disclosures for FS Bancorp as reported in the 2024 Form 10-K[256].