FS Bancorp(FSBW) - 2025 Q4 - Annual Results

Financial Performance - FS Bancorp, Inc. reported net income of $8.4 million, or $1.10 per diluted share for Q4 2025, an increase from $7.4 million, or $0.92 per diluted share in Q4 2024[1] - Net income for the quarter ended December 31, 2025, was $8,420, down 8% from $9,177 in the same quarter last year[41] - Basic earnings per share for the quarter was $1.12, a decrease of 7% from $1.20 in the prior year[41] - Return on assets for Q4 2025 was 1.04%, up from 0.98% in Q4 2024[44] - Return on equity for Q4 2025 was 10.78, compared to 9.88 in Q4 2024[44] - Basic earnings per share for Q4 2025 was $1.12, an increase from $0.94 in Q4 2024[44] Dividends and Shareholder Returns - The company increased its quarterly dividend by 3.6% to $0.29 per common share, marking the fifty-second consecutive quarterly cash dividend[3] - The company repurchased 46,947 shares at an average price of $40.01 per share, with $4.3 million remaining for future purchases[7] Deposits and Assets - Total deposits reached $2.67 billion at December 31, 2025, a 14.3% increase from $2.34 billion at December 31, 2024[4] - As of December 31, 2025, total deposits amounted to $2,673,642,000, a decrease of $12,850,000 from the previous quarter, but an increase of $334,224,000 year-over-year[17] - Total assets decreased by $11.978 million to $3.196847 billion, a 0.4% decline from the previous quarter, but increased by $167.670 million, or 6%, year-over-year[12] - Total assets as of December 31, 2025, were $3,196,847, a 6% increase from $3,029,177 in the prior year[39] Loans and Credit - Loans receivable increased by $121.2 million, or 4.8%, to $2.62 billion at December 31, 2025, compared to $2.50 billion at December 31, 2024[4] - Total loans receivable, net increased by $23.571 million to $2.623172 billion, reflecting a 1% increase from the previous quarter and a 5% increase year-over-year[13] - Commercial and speculative construction and development loans rose by $27.446 million, contributing significantly to the overall loan growth[13] - Total commercial business loans increased by $3.005 million, maintaining a stable percentage of total loans at 12.4%[13] - The allowance for credit losses on loans increased by $1.881 million, reflecting a proactive approach to managing credit risk[13] - Nonperforming loans totaled $18,745,000, an increase of $370,000 from the previous quarter and an increase of $5,145,000 year-over-year[24] - The allowance for credit losses (ACL) on loans increased to $31,937,000, reflecting a provision of $3,882,000 for the quarter ended December 31, 2025[22] Interest Income and Expenses - Net interest income rose to $33,600,000 for the three months ended December 31, 2025, an increase of $2,500,000 compared to the same period last year[26] - Total interest income increased by $3,800,000 year-over-year, primarily due to a $3,200,000 increase in interest income on loans receivable[26] - Total interest expense for the quarter was $17,160, an increase of 8% compared to $15,860 in the prior year[41] - Interest income from loans receivable, including fees, was $46,876 for the quarter, a 7% increase from $43,654 in the same quarter last year[41] Capital and Ratios - Regulatory capital ratios at the Bank were 14.0% for total risk-based capital and 11.0% for Tier 1 leverage capital at December 31, 2025[7] - The bank's stockholders' equity increased to $307,694,000, up by $7,183,000 from the previous quarter and $11,927,000 year-over-year[19] - The bank's total risk-based capital ratio was 13.96% as of December 31, 2025, exceeding the minimum capital requirements set by the FDIC[20] - The bank's capital ratios indicate it is "well capitalized" under regulatory standards, with a CET 1 capital ratio of 12.73%[20] Noninterest Income and Expenses - Noninterest income for Q4 2025 included an additional $1.0 million related to death benefits from bank-owned life insurance policies[7] - Total noninterest income for the year ended December 31, 2025, increased by $721,000 to $22.3 million, driven by a $2.4 million increase in other noninterest income[32] - Noninterest expense for the year ended December 31, 2025, increased by $4.4 million to $102.0 million, primarily due to increases in salaries and benefits and operations expense[33] Economic Outlook - The company anticipates potential impacts from economic conditions, interest rate changes, and competitive pressures on its future performance[36]