FS Bancorp, Inc. Reports Second Quarter Net Income of $7.7 Million or $0.99 Per Diluted Share and Declares 50th Consecutive Quarterly Cash Dividend in Addition to a Special Dividend

Core Viewpoint - FS Bancorp, Inc. reported a decline in net income for the second quarter of 2025, reflecting challenges in the banking sector while maintaining a commitment to shareholder value through dividends and share repurchase activities [1][3]. Financial Performance - The company reported a net income of $7.7 million, or $0.99 per diluted share, for Q2 2025, down from $9.0 million, or $1.13 per diluted share, in Q2 2024 [1]. - For the first half of 2025, net income was $15.7 million, or $1.99 per diluted share, compared to $17.4 million, or $2.20 per diluted share, in the same period of 2024 [1]. Balance Sheet and Asset Growth - Total assets increased by $109.9 million, or 4%, to $3.176 billion as of June 30, 2025, compared to $3.066 billion at March 31, 2025, and $2.941 billion at June 30, 2024 [12]. - Loans receivable, net increased by $81.2 million, or 3.2%, to $2.58 billion at June 30, 2025, compared to $2.50 billion at March 31, 2025, and $2.46 billion at June 30, 2024 [7]. Segment Reporting - The Commercial and Consumer Banking segment generated a net income of $7.4 million, while the Home Lending segment contributed $351,000 for Q2 2025 [7]. - Net interest income for the Commercial and Consumer Banking segment was $29.2 million, and for Home Lending, it was $2.9 million for Q2 2025 [6]. Dividends and Share Repurchase - The Board of Directors approved a cash dividend of $0.28 per common share and a special dividend of $0.22 per common share, marking the 50th consecutive quarterly cash dividend [3]. - The company repurchased 132,282 shares at an average price of $38.92 per share during Q2 2025, with a remaining authorization of $725,000 for future purchases [7]. Deposits and Borrowings - Total deposits decreased by $61.8 million, or 2.4%, to $2.55 billion at June 30, 2025, primarily due to a decrease in brokered deposits [7]. - Borrowings increased significantly by $165.5 million, or 240.5%, to $234.3 million at June 30, 2025, compared to $68.8 million at March 31, 2025 [7]. Loan Composition - The total loan portfolio reached $2.614 billion, with commercial and industrial loans accounting for $312.5 million, and residential real estate loans totaling $779.5 million as of June 30, 2025 [14][15]. - Consumer loans decreased by $2.6 million, or 0.4%, to $606.3 million at June 30, 2025, compared to the previous quarter [7].