AG真人官方

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

MOUNTLAKE TERRACE, Wash., July 22, 2025 (GLOBE NEWSWIRE) -- FS Bancorp, Inc. (NASDAQ: FSBW) (the 鈥淐ompany鈥�), the holding company for 1st Security Bank of Washington (the 鈥淏ank鈥�) today reported听2025 second quarter net income of $7.7听尘颈濒濒颈辞苍, or $0.99听per diluted share, compared to $9.0听尘颈濒濒颈辞苍, or $1.13听per diluted share, for the comparable quarter one year ago. For the six months ended听June 30, 2025, net income was $15.7听尘颈濒濒颈辞苍, or $1.99听per diluted share, compared to net income of $17.4 million, or $2.20 per diluted share, for the comparable six-month period in 2024.

鈥淲e are proud of the balance sheet growth this quarter driven by solid loan demand. Additionally, our share repurchase activity reflects our continued confidence听and commitment to delivering long-term value to our shareholders,鈥� stated Phillip Whittington, CFO.

鈥淲e are pleased to announce听that听our Board of Directors has approved听our 50th听consecutive quarterly cash dividend of $0.28听per common share, demonstrating our continued commitment to delivering value to our shareholders. In recognition of this milestone, the听Board also听approved听a special dividend of $0.22 per common share.听Both dividends will be paid on August听21, 2025, to shareholders of record as of August听7, 2025,鈥� noted Matthew Mullet, President.

2025 Second Quarter Highlights

• Net income was $7.7 million for the second quarter of 2025, compared to $8.0听尘颈濒濒颈辞苍 for the previous quarter, and $9.0听尘颈濒濒颈辞苍 for the comparable quarter one year ago;
• Total deposits decreased $61.8 million, or 2.4%, to $2.55 billion at听June 30, 2025, primarily due to a听decrease of $59.1 million in brokered deposits,听compared to $2.62听产颈濒濒颈辞苍 at March 31, 2025, and increased $170.6 million, or 7.2%, from $2.38听产颈濒濒颈辞苍 at听June 30, 2024.听 Noninterest-bearing deposits were听$654.1听尘颈濒濒颈辞苍 at June 30, 2025, $676.7听尘颈濒濒颈辞苍 at March 31, 2025, and $623.3听尘颈濒濒颈辞苍 at June 30, 2024;
• Borrowings increased听$165.5听尘颈濒濒颈辞苍,听辞谤 240.5% to $234.3听尘颈濒濒颈辞苍 at听June 30, 2025, compared to $68.8听尘颈濒濒颈辞苍 at March 31, 2025, and increased $52.4 million, or 28.8%, from $181.9听尘颈濒濒颈辞苍 at听June 30, 2024;
• Loans receivable, net increased $81.2 million, or 3.2%, to听$2.58 billion at听June 30, 2025, compared to $2.50 billion at听March 31, 2025, and increased $125.1 million, or 5.1%, from $2.46听产颈濒濒颈辞苍 at June 30, 2024;
• Consumer loans were听$606.3听尘颈濒濒颈辞苍 at June 30, 2025, a decrease of听$2.6听尘颈濒濒颈辞苍, or 0.4%, from听$608.9听尘颈濒濒颈辞苍 in the previous quarter, and a decrease of听$35.4听尘颈濒濒颈辞苍, or 5.5%, from $641.7听尘颈濒濒颈辞苍 in the comparable quarter one year ago. During the three months ended June 30, 2025, consumer loan originations included 82.5% of home improvement loans originated with a Fair Isaac Corporation听(鈥淔ICO鈥�) score above 720;
• Repurchased 132,282 shares of the Company's common stock听in the second quarter of 2025听at an average price of $38.92 per share with $725,000 remaining for future purchases under the existing share听repurchase plan at June 30, 2025. In addition, as previously announced on July 9, 2025, the Board approved a new share repurchase plan authorizing the repurchase of up to $5.0 million in shares of the Company's outstanding common stock;
• Book value per share increased $0.43 to $39.55听at June 30, 2025, compared to $39.12听at March 31, 2025, and increased $2.40 from $37.15听at June 30, 2024.听 Tangible book value per share (non-GAAP financial measure) increased $0.50 to $37.46听at听June 30, 2025, compared to $36.96听at March 31, 2025, and increased $2.80 from $34.66听at June 30, 2024. See,听鈥淣on-GAAP Financial Measures;鈥�
• Segment reporting in the second quarter of 2025 reflected net income of $7.4听尘颈濒濒颈辞苍 for the Commercial and Consumer Banking segment and $351,000听for the Home Lending segment, compared to net income of $7.8听尘颈濒濒颈辞苍 and $242,000听in the prior quarter, and net income of $8.0听尘颈濒濒颈辞苍 and $1.0 million in the second quarter of 2024, respectively; and
• Regulatory capital ratios at the Bank were 14.1% for total risk-based capital and 11.2% for Tier 1 leverage capital at June 30, 2025, compared to 14.4% for total risk-based capital and 11.3% for Tier 1 leverage capital at March 31, 2025.

Segment Reporting

The Company operates through two reportable segments: Commercial and Consumer Banking and Home Lending. The Commercial and Consumer Banking segment provides diversified financial products and services to our commercial and consumer customers. These products and services include deposit products; residential, consumer, business and commercial real estate lending听and cash management services. This segment also manages听the Bank's investment portfolio and other assets. The Home Lending segment originates one-to-four-family residential mortgage loans primarily for sale in the secondary markets as well as loans held for investment.

The tables below provide a summary of segment reporting at or for the听three and six months ended June 30, 2025 and 2024 (dollars in thousands):

__________________________

Asset Summary

The following table presents the components and听changes in听total assets as of听the dates indicated.

The increase in total assets reflects the Company's continued focus on balance sheet growth through loan origination听and selective investment activity, funded by a combination of on-balance sheet liquidity and borrowings.

The composition of听CRE听loans at听the dates indicated were as follows:

The following table听includes CRE loans repricing or maturing within the next two years, excluding loans that reprice simultaneously with changes to the听prime rate:

The composition of construction loans at the dates indicated were as follows:

Originations of one-to-four-family loans to purchase and refinance a home for the periods indicated were as follows:

During the quarter ended June 30, 2025, the Company sold $127.1 million of one-to-four-family loans compared to $91.9听million during the previous quarter and $164.5听million during the same quarter one year ago. The increase in the volume of loans sold during the current quarter compared to the prior quarter was primarily due to seasonal factors, including the spring homebuying season. This increased demand for homes generally results in a higher volume of loan originations and, consequently, more loans available for sale. Gross margins on home loan sales decreased to 3.06% for the听quarter听ended June 30, 2025, compared to 3.26% in the previous quarter and increased听from 2.96% in the same quarter one year ago. Gross margins are defined as the margin on loans sold (cash sales) without the impact of deferred costs.

Liabilities and Equity Summary

The following table summarizes the components and changes in deposits, borrowings,听equity, and book value per common share at the dates indicated.

__________________________

At June 30, 2025, the Bank had uninsured deposits of approximately $677.2 million, compared to approximately听$679.4听million at March 31, 2025, and $586.6听million at June 30, 2024.听 The uninsured amounts are estimates based on the methodologies and assumptions used for the Bank's regulatory reporting requirements.

In reference to the table above,听the linked quarter decrease in stockholders鈥� equity at听June 30, 2025, compared to听March 31, 2025, was primarily due to听share repurchases of $5.1 million, cash dividends paid of $2.1 million,听and $525,000 in equity award听compensation, partially offset by net income of $7.7听尘颈濒濒颈辞苍. Stockholders鈥� equity was also impacted by a decline in unrealized fair value听on securities available for sale听of $1.2 million, net of tax, and听fair value and cash flow hedges听of $1.6 million, net of tax, reflecting听changes in market interest rates during the quarter, resulting in a $2.8 million decrease听in accumulated other comprehensive loss, net of tax.

The Bank is considered 鈥渨ell capitalized鈥澨齯nder the capital requirement established by the Federal Deposit Insurance Corporation (鈥淔DIC鈥�) and the Company exceeded all regulatory capital requirements. At June 30, 2025, capital ratios presented for the Bank and the Company were as follows:

Credit Quality

The following table summarizes the changes in the ACL on loans, nonperforming loans, and substandard loans at the dates indicated.

The increase in nonaccrual loans during the period was partly driven by a single commercial construction loan, which remains in active development. Ongoing construction disbursements on this loan contributed to a $2.6 million increase from the prior quarter and a $4.3 million increase compared to the same period last year.听Increases in consumer loan delinquencies also contributed to the overall rise in nonaccrual loans between the periods.听

Operating Results

Net interest income increased $1.7 million听to $32.1听million for the three months ended June 30, 2025, from $30.4听million for the three months ended June 30, 2024, primarily due to听an听increase in total听interest income of $2.8听million, partially offset by an increase in interest expense of $1.1听million. The $2.8听million increase in total interest income was听primarily due to an increase of $2.6听尘颈濒濒颈辞苍 in interest income on loans receivable, including fees, primarily as a result of net loan growth. The $1.1听million increase in total interest expense was听primarily the听result of higher average balances of deposits and borrowings to fund asset growth.

For the six months ended听June 30, 2025, net interest income increased $2.3听million to $63.1 million, from $60.7 million for the six months ended听June 30, 2024, with a $4.7 million increase in total interest income, partially offset by a $2.3 million听increase in interest expense for the same reasons mentioned above.听

NIM (annualized) increased one basis point听to 4.30% for the three months ended June 30, 2025, from 4.29% for the same period in the prior year and increased four听basis points from 4.27% to 4.31% for the six months ended听June 30, 2025.听The change听in NIM for the three and six months ended June 30, 2025, compared to the same period听in 2024, reflects the increased yields on interest-earning assets, as a result of loan growth and repricing activity.听The improvement also reflects a favorable shift in the asset mix and disciplined management of deposit and funding costs.听

The average total cost of funds, including noninterest-bearing checking, increased one听basis point to 2.39% for the three months ended June 30, 2025, from 2.38% for the three months ended June 30, 2024. This increase was predominantly due to higher average balances in borrowings. The average cost of funds increased eight basis points to 2.38% for the six months ended听June 30, 2025,听from 2.30% for the six months ended听June 30, 2024, primarily听for the same reason noted above as well as growth in the deposit mix from the prior year.听

For the three and six months ended June 30, 2025, the provision for credit losses on loans was $2.0听million and $3.6听million, compared to $1.1听million and $2.5 million for the three and six months ended June 30, 2024, respectively. The provision for credit losses on loans reflects net loan growth and an increase in net charge-off activity.

During the three months ended June 30, 2025, net charge-offs decreased $63,000 to听$1.2听million, compared to the same period the prior year. During the six months ended听June 30, 2025,听net charge-offs increased $184,000, to $2.9 million, compared to $2.7 million during the six months ended听June 30, 2024. The increase was primarily due to a $1.2 million increase in net charge-offs on听indirect home improvement loans, partially听offset by a $693,000 decrease in net charge-offs on commercial business loans and a $271,000 decrease in net charge-offs on marine loans. Management attributes the increase in net charge-offs for the current six month period to continued volatile economic conditions.

Total noninterest income decreased $698,000听to $5.2 million听for the three months ended听June 30, 2025, from $5.9 million for the three months ended听June 30, 2024.听The decrease primarily reflects a $491,000听decrease in gain on sale of loans, primarily due to a decrease of loans available for sale,听a $156,000 decrease in service charges and fee income and a $151,000 decrease in gain on sale of investment securities due to no sales activity in the current quarter compared to the same period last year. Total noninterest income decreased $683,000, to $10.3听million, for the six months ended听June 30, 2025, from $11.0听million for the six听months ended听June 30, 2024. This decrease was primarily the result of a $629,000 decrease in gain on sale of loans,听a $464,000 decrease in service charges and fee income, and a net decrease of $368,000 from no activity in gain on sales of MSRs and loss听on sale of investment securities compared to an听$8.2 million net gain on sale of MSRs, offset by the $7.8 million loss on sale of investment securities that occurred in the first half of 2024. These decreases in total noninterest income were听partially offset by a $755,000 increase in other noninterest income as result of sales of nonmarketable equity securities at a $312,000 gain, bank owned life insurance proceeds of $195,000, and a $101,000 increase in brokered loans fees.

Total noninterest expense听was $25.5听million for the three months ended听June 30, 2025, compared to $23.9听million听for the three months ended听June 30, 2024.听 The $1.6听million increase was primarily due to a $710,000听increase in salaries and benefits, primarily due to competitive wage adjustments, a $305,000 increase in operations expense, and a $267,000听increase in professional and board fees.听 Total noninterest expense increased听$3.2 million听to $50.6 million听for the six months ended听June 30, 2025, compared to $47.4 million for the six months ended听June 30, 2024.听Increases听during the six month period ended听June 30, 2025,听compared to听the same period last year included $1.7 million in salaries and benefits, $742,000 in operations expense, and $531,000 in professional and board fees.

About FS Bancorp

FS Bancorp, Inc., a Washington corporation, is the holding company for 1st Security Bank of Washington. The Bank offers a range of听loan and deposit services primarily to small- and middle-market businesses and individuals in Washington and Oregon.听 It operates through听27 bank branches, one headquarters office that provides loans and deposit services, and loan production offices in various suburban communities in the greater Puget Sound area, the Kennewick-Pasco-Richland metropolitan area of Washington, also known as the Tri-Cities, and in Vancouver, Washington. Additionally, the Bank services home mortgage customers across听the Northwest, focusing on markets听in Washington State including the Puget Sound, Tri-Cities, and Vancouver.

Forward-Looking Statements

When used in this press release and in other documents filed with or furnished to the Securities and Exchange Commission (the 鈥淪EC鈥�), in press releases or other public stockholder communications, or in oral statements made with the approval of an authorized executive officer, the words or phrases 鈥渂elieve,鈥� 鈥渨ill,鈥� 鈥渨ill likely result,鈥� 鈥渁re expected to,鈥� 鈥渨ill continue,鈥� 鈥渋s anticipated,鈥� 鈥渆stimate,鈥� 鈥減roject,鈥� 鈥減lans,鈥� or similar expressions are intended to identify 鈥渇orward-looking statements鈥� within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not historical facts but instead represent management's current expectations and forecasts regarding future events, many of which are inherently uncertain and outside of our control. Actual results may differ, possibly materially from those currently expected or projected in these forward-looking statements. Factors that could cause the Company鈥檚 actual results to differ materially from those described in the forward-looking statements, include but are not limited to, the following: adverse impacts to economic conditions in the Company鈥檚 local market areas, other markets where the Company has lending relationships, or other aspects of the Company鈥檚 business operations or financial markets, including, without limitation, as a result of employment levels; labor shortages, the effects of inflation, recessionary pressures or slowing听economic growth;听changes in interest rates and the duration of such changes, including actions by the Federal Reserve, which could adversely affect our revenues and expenses, the values of our assets and obligations, and the availability and cost of capital and liquidity; the impact of inflation and monetary and fiscal policy responses thereto and their impact on consumer and business behavior; geopolitical developments and international conflicts including but not limited to tensions or instability in Eastern Europe, the Middle east, and Asia, or the imposition of new or increased tariffs and trade restrictions, which may disrupt financial markets, global supply chains,听energy prices, or economic activity in specific industry sectors; the effects of a federal government shutdown, debt ceiling standoff, or other fiscal policy uncertainty;听increased competitive pressures, including repricing and competitors' pricing initiatives, and their impact on our market position, loan, and deposit products; adverse changes in the securities markets, the Company鈥檚 ability to听execute its plans to grow its residential construction lending, mortgage banking, and warehouse lending operations, and the geographic expansion of its indirect home improvement lending; challenges arising from expanding into new geographic markets, products, or services; secondary market conditions for loans and the Company鈥檚 ability to originate loans for sale and sell loans in the secondary market; volatility in the mortgage industry; fluctuations in deposits; liquidity issues, including our ability to borrow funds or raise additional capital, if necessary; the impact of bank failures or adverse developments at other banks and related negative press about the banking industry in general on investor and depositor sentiment; the ability to adapt to rapid technological changes, including advancements in artificial intelligence, digital banking, and cybersecurity; legislation or听regulatory changes, including but not limited to shifts听in capital requirements, banking regulation, tax laws,听辞谤 consumer protection laws; vulnerabilities听听in听information systems or third-party service providers, including disruptions, breaches, or attacks;听environmental, social and governance goals; the effects of climate change, severe weather events, natural disasters, pandemics, epidemics and other public health crises, acts of war or terrorism, domestic political听unrest and other external events on our business;听and other factors described in the Company鈥檚 latest Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and other reports filed with or听furnished to the SEC which are available on its website at www.fsbwa.com and on the SEC's website at www.sec.gov.

Any of the forward-looking statements that the Company makes in this press release and in the other public statements are based upon management's beliefs and assumptions at the time they are made and may turn out to be incorrect because of the inaccurate assumptions the Company might make, because of the factors illustrated above or because of other factors that cannot be foreseen by the Company. Therefore, these factors should be considered in evaluating the forward-looking statements, and undue reliance should not be placed on such statements. The Company does not undertake and specifically disclaims any obligation to revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.