Core Viewpoint - FS Bancorp, Inc. reported a decrease in net income for the third quarter of 2025, with net income of $9.2 million compared to $10.3 million in the same quarter last year, reflecting challenges in maintaining profitability amidst changing market conditions [1][7]. Financial Performance - The net income for the third quarter of 2025 was $9.2 million, or $1.18 per diluted share, down from $10.3 million, or $1.29 per diluted share, in the same quarter of 2024 [1]. - For the nine months ended September 30, 2025, net income was $24.9 million, or $3.18 per diluted share, compared to $27.6 million, or $3.45 per diluted share, for the same period in 2024 [1]. - Total deposits increased by $133.1 million, or 5.2%, to $2.69 billion at September 30, 2025, compared to $2.55 billion at June 30, 2025, and increased by $259.2 million, or 10.7%, from $2.43 billion at September 30, 2024 [7]. - Loans receivable, net increased by $17.3 million, or 0.7%, to $2.60 billion at September 30, 2025, compared to $2.58 billion at June 30, 2025, and increased by $135.9 million, or 5.5%, from $2.46 billion at September 30, 2024 [7]. Shareholder Returns - The company balanced shareholder returns in the third quarter through share repurchases, a paid special dividend, and the payment of its 50th quarterly dividend [3]. - The Board of Directors approved a cash dividend of $0.28 per common share, marking the 51st consecutive quarterly cash dividend, to be paid on November 20, 2025 [3]. Segment Reporting - The company operates through two segments: Commercial and Consumer Banking, and Home Lending [5]. - In the third quarter of 2025, the Commercial and Consumer Banking segment reported net income of $8.4 million, while the Home Lending segment reported net income of $775,000 [7]. Asset and Liability Management - Total assets increased by $32.8 million, or 1%, to $3.21 billion at September 30, 2025, compared to $3.18 billion at June 30, 2025, and increased by $238.6 million, or 8%, from $2.97 billion at September 30, 2024 [13]. - Borrowings decreased by $105.0 million, or 44.8%, to $129.3 million at September 30, 2025, compared to $234.3 million at June 30, 2025 [7]. Loan Portfolio - Total loans receivable increased to $2.63 billion during the third quarter of 2025, primarily due to growth in commercial and speculative construction and development loans [16]. - The composition of commercial real estate (CRE) loans showed an increase in total CRE loans to $932.7 million, up from $916.1 million in the previous quarter [17].

Core Points - FS Bancorp, Inc. reported a net income of $7.7 million for Q2 2025, a decrease from $9.0 million in Q2 2024, and a net income of $15.7 million for the first half of 2025, down from $17.4 million in the same period last year [1][7][9] - The company experienced a decrease in total deposits by $61.8 million, or 2.4%, to $2.55 billion compared to the previous quarter, but an increase of $170.6 million, or 7.2%, from the same quarter last year [7] - The company’s loan receivable, net increased by $81.2 million, or 3.2%, to $2.58 billion compared to the previous quarter, and increased by $125.1 million, or 5.1%, from the same quarter last year [7] - The company repurchased 132,282 shares of common stock at an average price of $38.92 per share, with a remaining authorization of $725,000 for future purchases [7] - 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] Financial Performance - Net interest income for the Commercial and Consumer Banking segment was $29.2 million, while the Home Lending segment reported $2.9 million for Q2 2025 [8] - The provision for credit losses was $(1.8) million for the Commercial and Consumer Banking segment and $(0.2) million for the Home Lending segment [8] - Noninterest income totaled $5.2 million, with noninterest expenses at $25.5 million for the quarter [8] 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][8] - Total average assets for the Commercial and Consumer Banking segment were $2.47 billion, and for the Home Lending segment, $649.4 million [8] - The company operates through two segments: Commercial and Consumer Banking, and Home Lending, providing a range of financial products and services [5] Asset Summary - Total assets increased by $109.9 million, or 4%, to $3.18 billion compared to the previous quarter, and by $234.6 million, or 8%, from the same period last year [14] - Loans receivable, net increased to $2.58 billion, reflecting a focus on balance sheet growth through loan origination [14][16] - The company’s regulatory capital ratios were 14.1% for total risk-based capital and 11.2% for Tier 1 leverage capital as of June 30, 2025 [7]