業績公告
即時報告
8-K
2026-07-21
FS Bancorp第二季淨收入790萬美元 每股派息0.29美元 存款減少7.2%
AI 繁中摘要
FS Bancorp（納斯達克：FSBW）昨日公佈截至2026年6月30日止第二季度業績。期內淨收入錄得790萬美元（約合每股攤薄盈利1.04美元），略高於上一季度的780萬美元（每股1.02美元）及去年同期的770萬美元（每股0.99美元）。上半年累計淨收入達1,580萬美元（每股2.07美元），同比微增約0.6%（去年同期1,570萬美元，每股1.99美元）。
董事會已批准第54次連續季度現金股息，每股0.29美元，將於2026年8月21日派發，股權登記日為8月7日，體現公司持續回饋長期股東的承諾。
業績亮點方面，總存款較上季減少1.887億美元（7.2%）至24.5億美元，主要由於經紀存款減少2.01億美元，但零售存款增加1,210萬美元；存款成本由2.24%降至2.18%。貸款淨額則增至26.3億美元（較上季增490萬美元，較去年同期增4,670萬美元），增長主要來自商業房地產組合（年增8,890萬美元），但消費者貸款持續縮減（較去年同期減少3,310萬美元至5.732億美元）。期內消費者貸款中，87.3%的間接家居裝修貸款原創時的FICO評分高於720。
不良貸款總額降至1,565萬美元（佔總貸款0.59%），較去年同期的1,900萬美元明顯改善，主要因為一筆商業建築貸款的2.3百萬美元部分撇賬及一筆商業房地產貸款清償。貸款減值撥備為260萬美元（第二季度），高於去年同期的200萬美元，反映更高的淨撇賬活動（尤其在家居裝修組合及前述商業建築貸款）。
按業務分部劃分，商業及消費銀行分部第二季度淨收入680萬美元（去年同期740萬美元）；住宅貸款分部淨收入110萬美元（去年同期35.2萬美元），受惠於按揭貸款出售利潤增加。
資本狀況穩健，銀行總風險資本比率14.0%，一級槓桿資本比率11.4%，繼續被視為「資本充足」。公司於第二季度以均價41.81美元回購8.7萬股普通股，涉資360萬美元。每股賬面值升至43.57美元（較上季增1.15美元），有形賬面值（非公認會計原則）為41.84美元。
管理層表示，團隊正全力推進與Pacific West Bank的合併整合工作，該交易仍需獲得監管及股東批准。展望未來，公司強調將維持審慎的資金策略，平衡流動性需要與股東回報。合併相關開支第二季度為41.7萬美元，預計年內完成最終解決。
展開英文正文
EX-99.1
2
ex_963242.htm
EXHIBIT 99.1
ex_963242.htm
Exhibit 99.1
FS Bancorp, Inc. Reports Second Quarter Net Income of $7.9 Million or $1.04 Per Diluted Share and Declares 54th Consecutive Quarterly Cash Dividend
MOUNTLAKE TERRACE, WA – July 21, 2026 – FS Bancorp, Inc. (NASDAQ: FSBW) (the “Company”), the holding company for 1st Security Bank of Washington (the “Bank”) today reported 2026 second quarter net income of $7.9 million, or $1.04 per diluted share, compared to $7.8 million, or $1.02 per diluted share, for the prior quarter, and $7.7 million, or $0.99 per diluted share, for the comparable quarter one year ago. For the six months ended June 30, 2026, net income was $15.8 million, or $2.07 per diluted share, compared to net income of $15.7 million, or $1.99 per diluted share, for the comparable six-month period in 2025.
“From the announcement of our proposed merger with Pacific West Bank in the first quarter of 2026, our teams have been diligently working toward a successful integration, while concurrently contributing to our financial success this quarter,” stated Matthew Mullet, President and CEO of FS Bancorp, Inc. “We are also pleased to announce that our Board of Directors has approved our 54th consecutive quarterly cash dividend of $0.29 per common share, demonstrating our commitment to returning capital to long-term shareholders. The cash dividend will be paid on August 21, 2026, to shareholders of record as of August 7, 2026,” concluded Mullet.
2026 Second Quarter Highlights
●
Net income totaled $7.9 million for the second quarter of 2026, compared to $7.8 million for the previous quarter, and $7.7 million for the comparable quarter one year ago;
●
Total deposits decreased $188.7 million, or 7.2%, to $2.45 billion at June 30, 2026, compared to $2.63 billion at March 31, 2026. This decrease was primarily due to a $201.1 million decrease in brokered deposits, with an offsetting increase of $12.1 million in retail deposits. Compared to June 30, 2025, total deposits decreased $104.5 million, or 4.1%. The cost of deposits decreased to 2.18% for the quarter ended June 30, 2026, from 2.24% for the quarter ended March 31, 2026, primarily due to the Company's funding strategy of shifting from higher cost brokered deposits to borrowings, while maintaining sufficient liquidity;
●
Loans receivable, net increased $4.9 million, to $2.63 billion at June 30, 2026, compared to $2.62 billion at March 31, 2026, and increased $46.7 million, from $2.58 billion at June 30, 2025. The year-over-year loan growth was primarily due to an increase of $88.9 million in the commercial real estate portfolio, partially offset by heightened payoff activity in the consumer loan portfolio which decreased $33.1 million during the same period;
●
Consumer loans were $573.2 million at June 30, 2026, a decrease of $10.3 million, or 1.8%, from $583.5 million in the previous quarter, and a decrease of $33.1 million, or 5.5%, from $606.3 million in the comparable quarter one year ago. During the three months ended June 30, 2026, consumer loan originations included 87.3% of indirect home improvement loans originated with a Fair Isaac Corporation (“FICO”) score above 720;
●
The Commercial and Consumer Banking segment reported net income of $6.8 million for the second quarter of 2026, compared to $6.7 million for the prior quarter and $7.4 million for the second quarter of 2025. The Home Lending segment reported net income of $1.1 million for both the first and second quarters of 2026, compared to $352,000 for the second quarter of 2025;
●
Repurchased 87,000 shares of the Company's common stock for $3.6 million in the second quarter of 2026, at an average price of $41.81 per share;
FS Bancorp Q2 Earnings
July 21, 2026
Page 2
●
Book value per share increased $1.15, or 2.7%, to $43.57 at June 30, 2026, compared to $42.42 at March 31, 2026, and increased $4.02, or 10.2%, from $39.55 at June 30, 2025. Tangible book value per share (non-GAAP financial measure) increased $1.23 to $41.84 at June 30, 2026, compared to $40.61 at March 31, 2026, and increased $4.38 from $37.46 at June 30, 2025. See, “Non-GAAP Financial Measures;” and
●
Regulatory capital ratios at the Bank were 14.0% for total risk-based capital and 11.4% for Tier 1 leverage capital at June 30, 2026, compared to 13.8% for total risk-based capital and 11.2% for Tier 1 leverage capital at March 31, 2026. The Bank remained well capitalized under applicable regulatory capital standards.
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 and cash management services. This segment also manages 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 three and six months ended June 30, 2026 and 2025 (dollars in thousands):
At or For the Three Months Ended June 30, 2026
Condensed income statement:
Commercial and Consumer Banking
Home Lending
Total
Net interest income
(1)
$29,662
$2,986
$32,648
Provision for credit losses
(2,297)
(344)
(2,641)
Noninterest income
(2)
2,740
3,410
6,150
Noninterest expense
(3)
(21,413)
(4,691)
(26,104)
Income before provision for income taxes
8,692
1,361
10,053
Provision for income taxes
(1,899)
(218)
(2,117)
Net income
$6,793
$1,143
$7,936
Total average assets for period ended
$2,511,682
$668,842
$3,180,524
Full-time employees ("FTEs")
476
117
593
At or For the Three Months Ended June 30, 2025
Condensed income statement:
Commercial and Consumer Banking
Home Lending
Total
Net interest income (1)
$29,179
$2,933
$32,112
Provision for credit losses
(1,849)
(172)
(2,021)
Noninterest income (2)
2,298
2,872
5,170
Noninterest expense (3)
(20,314)
(5,188)
(25,502)
Income before provision for income taxes
9,314
445
9,759
Provision for income taxes
(1,938)
(93)
(2,031)
Net income
$7,376
$352
$7,728
Total average assets for period ended
$2,466,917
$649,443
$3,116,360
FTEs
452
115
567
FS Bancorp Q2 Earnings
July 21, 2026
Page 3
At or For the Six Months Ended June 30, 2026
Condensed income statement:
Commercial and Consumer Banking
Home Lending
Total
Net interest income
(1)
$59,214
$5,979
$65,193
Provision for credit losses
(4,842)
(328)
(5,170)
Noninterest income
(2)
5,204
6,347
11,551
Noninterest expense
(3)
(42,275)
(9,349)
(51,624)
Income before provision for income taxes
17,301
2,649
19,950
Provision for income taxes
(3,762)
(422)
(4,184)
Net income
$13,539
$2,227
$15,766
Total average assets for period ended
$2,527,284
$663,600
$3,190,884
FTEs
476
117
593
At or For the Six Months Ended June 30, 2025
Condensed income statement:
Commercial and Consumer Banking
Home Lending
Total
Net interest income
(1)
$57,585
$5,508
$63,093
Provision for credit losses
(3,170)
(443)
(3,613)
Noninterest income
(2)
4,543
5,753
10,296
Noninterest expense
(3)
(40,489)
(10,067)
(50,556)
Income before provision for income taxes
18,469
751
19,220
Provision for income taxes
(3,314)
(157)
(3,471)
Net income
$15,155
$594
$15,749
Total average assets for period ended
$2,440,654
$634,013
$3,074,667
FTEs
452
115
567
________________________
(1)
Net interest income is the difference between interest earned on assets and the cost of liabilities to fund those assets. Interest earned includes actual interest earned on segment assets and, if the segment has excess liabilities, interest credits for providing funding to the other segment. The cost of liabilities includes interest expense on segment liabilities and, if the segment does not have enough liabilities to fund its assets, a funding charge based on the cost of assigned liabilities to fund segment assets.
(2)
Noninterest income includes activity from certain residential mortgage loans that were initially originated for sale and measured at fair value and subsequently transferred to loans held for investment. Gains and losses from changes in fair value for these loans are reported in earnings as a component of noninterest income. For the three and six months ended June 30, 2026, the Company recorded a net increase of $45,000 and a net decrease of $56,000 in fair value, respectively, compared to a net increase of $3,000 and a net increase of $266,000 in fair value for the three and six months ended June 30, 2025, respectively. As of both June 30, 2026 and 2025, there were $13.2 million in residential mortgage loans recorded at fair value, which had previously been transferred from loans held for sale to loans held for investment.
(3)
Noninterest expense includes allocated overhead expense from general corporate activities. Allocation is determined based on a combination of segment assets and FTEs. For the three and six months ended June 30, 2026 and 2025, the Home Lending segment included allocated overhead expenses of $1.7 million and $3.6 million, compared to $1.8 million and $3.7 million, respectively.
FS Bancorp Q2 Earnings
July 21, 2026
Page 4
Asset Summary
The following table summarizes the composition of total assets and changes from the linked quarter and prior-year period.
ASSETS
Linked Quarter
Prior Year
(Dollars in thousands)
June 30,
March 31,
June 30,
Change
Quarter Change
2026
2026
2025
$
%
$
%
Cash and due from banks
$
12,835
$
12,424
$
15,168
$
411
3
%
$
(2,333
)
(15
)%
Interest-bearing deposits at other financial institutions
16,875
26,278
18,027
(9,403
)
(36
)
(1,152
)
(6
)
Total cash and cash equivalents
29,710
38,702
33,195
(8,992
)
(23
)
(3,485
)
(10
)
Certificates of deposit at other financial institutions
—
—
248
—
—
NM
NM
Securities available-for-sale, at fair value
269,460
271,007
302,692
(1,547
)
(1
)
(33,232
)
(11
)
Securities held-to-maturity, net
34,845
33,267
31,562
1,578
5
3,283
10
Loans held for sale, at fair value
30,548
56,275
53,630
(25,727
)
(46
)
(23,082
)
(43
)
Loans receivable, net
2,628,992
2,624,091
2,582,272
4,901
—
46,720
2
Accrued interest receivable
14,263
15,333
14,270
(1,070
)
(7
)
(7
)
—
Premises and equipment, net
43,455
43,612
30,098
(157
)
—
13,357
44
Long-lived assets held for sale
3,258
3,258
—
—
—
—
NM
Operating lease right-of-use
6,655
5,472
7,969
1,183
22
(1,314
)
(16
)
Federal Home Loan Bank stock, at cost
14,420
8,701
11,579
5,719
66
2,841
25
Deferred tax asset, net
6,441
7,175
7,782
(734
)
(10
)
(1,341
)
(17
)
Bank owned life insurance (“BOLI”), net
36,771
36,508
38,262
263
1
(1,491
)
(4
)
MSRs, held at the lower of cost or fair value
8,912
8,676
8,652
236
3
260
3
Goodwill
3,592
3,592
3,592
—
—
—
—
Core deposit intangible, net
9,052
9,774
12,071
(722
)
(7
)
(3,019
)
(25
)
Other assets
38,706
38,072
38,139
634
2
567
1
TOTAL ASSETS
$
3,179,080
$
3,203,515
$
3,176,013
$
(24,435
)
(1
)%
$
3,067
—
%
FS Bancorp Q2 Earnings
July 21, 2026
Page 5
Prior
LOAN PORTFOLIO
Linked
Year
(Dollars in thousands)
Quarter
Quarter
COMMERCIAL REAL ESTATE
June 30, 2026
March 31, 2026
June 30, 2025
$
$
("CRE") LOANS
Amount
Percent
Amount
Percent
Amount
Percent
Change
Change
CRE owner occupied
$184,136
6.9%
$182,260
6.9%
$180,250
6.8%
$1,876
$3,886
CRE non-owner occupied
188,258
7.1
182,568
6.9
171,979
6.6
5,690
16,279
Commercial and speculative construction and development
370,459
13.9
358,657
13.5
300,723
11.5
11,802
69,736
Multi-family
262,137
9.9
263,353
9.9
263,185
10.1
(1,216)
(1,048)
Total CRE loans
1,004,990
37.8
986,838
37.2
916,137
35.0
18,152
88,853
RESIDENTIAL REAL ESTATE LOANS
One-to-four-family (excludes HFS)
660,518
24.8
630,996
23.8
639,881
24.4
29,522
20,637
Home equity
88,214
3.3
88,468
3.3
85,613
3.3
(254)
2,601
Residential custom construction
44,765
1.7
44,134
1.7
54,024
2.1
631
(9,259)
Total residential real estate loans
793,497
29.8
763,598
28.8
779,518
29.8
29,899
13,979
CONSUMER LOANS
Indirect home improvement
502,151
18.9
513,437
19.3
530,375
20.3
(11,286)
(28,224)
Marine
66,941
2.5
67,126
2.5
72,765
2.8
(185)
(5,824)
Other consumer
4,111
0.1
2,921
0.1
3,151
0.1
1,190
960
Total consumer loans
573,203
21.5
583,484
21.9
606,291
23.2
(10,281)
(33,088)
COMMERCIAL BUSINESS LOANS
Commercial and industrial (“C&I”)
281,181
10.6
304,470
11.5
294,563
11.3
(23,289)
(13,382)
Warehouse lending
7,286
0.3
18,144
0.6
17,952
0.7
(10,858)
(10,666)
Total commercial business loans
288,467
10.9
322,614
12.1
312,515
12.0
(34,147)
(24,048)
Total loans receivable, gross
2,660,157
100.0%
2,656,534
100.0%
2,614,461
100.0%
3,623
45,696
Allowance for credit losses ("ACL") on loans
(31,165)
(32,443)
(32,189)
1,278
1,024
Total loans receivable, net
$2,628,992
$2,624,091
$2,582,272
$4,901
$46,720
The following table includes CRE loans repricing or maturing within the next two years, excluding loans that reprice simultaneously with changes to the prime rate:
Current
(Dollars in
Weighted
thousands)
For the Quarter Ended
Average
CRE by type:
Sep 30, 2026
Dec 31, 2026
Mar 31, 2027
Jun 30, 2027
Sep 30, 2027
Dec 31, 2027
Mar 31, 2028
Jun 30, 2028
Total
Rate
Apartment
$
6,957
$
16,937
$
7,345
$
2,242
$
4,101
$
11,817
$
15,901
$
37,411
$
102,711
5.85
%
Industrial
198
—
13,497
3,645
5,641
5,204
2,790
6,334
37,309
5.88
%
Mixed use
—
1,135
1,287
—
—
3,210
445
—
6,077
6.73
%
Office
538
12,580
2,767
—
7,318
3,622
—
3,090
29,915
5.75
%
Other
3,241
2,408
—
1,739
323
24
7
866
8,608
5.24
%
Retail
—
3,298
2,902
2,322
7,370
—
—
417
16,309
4.88
%
Senior housing and assisted living
2,092
—
—
1,336
—
—
3,022
—
6,450
6.88
%
Total
$
13,026
$
36,358
$
27,798
$
11,284
$
24,753
$
23,877
$
22,165
$
48,118
$
207,379
FS Bancorp Q2 Earnings
July 21, 2026
Page 6
The composition of CRE loans at the dates indicated were as follows:
(Dollars in thousands)
CRE by Type:
June 30, 2026
March 31, 2026
June 30, 2025
CRE non-owner occupied:
Office
$43,705
$43,532
$39,141
Retail
42,042
42,186
38,652
Hospitality/restaurant
24,499
24,673
26,489
Industrial
20,824
14,064
14,444
Self-storage
18,767
18,844
19,075
Mixed use
18,489
18,674
18,387
Other
9,189
9,249
3,670
Senior housing/assisted living
6,882
7,263
7,448
Education/worship
2,359
2,387
2,467
Land
1,502
1,696
2,206
Total CRE non-owner occupied
188,258
182,568
171,979
CRE owner occupied:
Industrial
79,137
74,904
77,419
Office
31,862
35,100
40,156
Retail
27,433
27,443
19,470
Other
10,539
10,674
9,483
Mixed use
9,239
7,685
5,548
Hospitality/restaurant
7,622
8,125
7,230
Automobile related
6,745
6,792
7,215
Car wash
4,376
4,394
4,447
Agriculture
3,816
3,759
4,652
Education/worship
3,367
3,384
4,630
Total CRE owner occupied
184,136
182,260
180,250
Total
$372,394
$364,828
$352,229
The composition of construction loans at the dates indicated were as follows:
(Dollars in thousands)
June 30, 2026
March 31, 2026
June 30, 2025
Construction Types:
Amount
Percent
Amount
Percent
Amount
Percent
Commercial construction – retail
$8,447
2.0%
$8,450
2.1%
$8,447
2.4%
Commercial construction – office
7,164
1.7
9,442
2.3
9,083
2.6
Commercial construction – self storage
25,234
6.1
24,217
6.0
16,553
4.7
Commercial construction – hotel
13,463
3.3
11,968
3.0
3,673
1.0
Multi-family
46,186
11.1
44,343
11.0
23,119
6.5
Custom construction – single family residential and single family manufactured residential
33,944
8.2
33,425
8.3
45,570
12.8
Custom construction – land, lot and acquisition and development
10,821
2.6
10,708
2.7
8,454
2.4
Speculative residential construction – vertical
225,992
54.4
216,204
53.7
200,375
56.5
Speculative residential construction – land, lot and acquisition and development
43,973
10.6
44,034
10.9
39,473
11.1
Total
$415,224
100.0%
$402,791
100.0%
$354,747
100.0%
FS Bancorp Q2 Earnings
July 21, 2026
Page 7
Originations of one-to-four-family loans to purchase and refinance a home for the periods indicated were as follows:
(Dollars in
Prior Year
thousands)
For the Three Months Ended
Linked Quarter
Quarter
June 30, 2026
March 31, 2026
June 30, 2025
$
%
$
%
Amount
Percent
Amount
Percent
Amount
Percent
Change
Change
Change
Change
Purchase
$163,100
79.2%
$139,626
67.3%
$170,854
85.7%
$23,474
16.8
$(7,754)
(4.5)%
Refinance
42,741
20.8
67,864
32.7
28,470
14.3
(25,123)
(37.0)
14,271
50.1%
Total
$205,841
100.0%
$207,490
100.0%
$199,324
100.0%
$(1,649)
(0.8)
$6,517
3.3%
(Dollars in thousands)
For the Six Months Ended June 30,
2026
2025
Amount
Percent
Amount
Percent
$ Change
% Change
Purchase
$302,726
73.2%
$290,737
84.3%
$11,989
4.1%
Refinance
110,605
26.8
53,983
15.7
56,622
104.9%
Total
$413,331
100.0%
$344,720
100.0%
$68,611
19.9%
During the quarter ended June 30, 2026, the Company sold $156.1 million of one-to-four-family loans compared to $154.7 million during the previous quarter and $127.1 million during the same quarter one year ago. Gross margins on home loan sales decreased to 2.98% for the quarter ended June 30, 2026, compared to 3.03% in the previous quarter and decreased from 3.06% 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, equity, and book value per common share at the dates indicated.
(Dollars in thousands)
Linked
Prior Year
DEPOSITS
June 30, 2026
March 31, 2026
June 30, 2025
Quarter
Quarter
Transactional deposits:
Amount
Percent
Amount
Percent
Amount
Percent
$ Change
$ Change
Noninterest-bearing checking
$629,799
25.7%
$634,787
24.1%
$643,573
25.2%
$(4,988)
$(13,774)
Interest-bearing checking
209,721
8.6
185,793
7.0
181,240
7.1
23,928
28,481
Escrow accounts related to mortgages serviced
(1)
12,057
0.5
18,904
0.7
10,496
0.4
(6,847)
1,561
Subtotal
851,577
34.8
839,484
31.8
835,309
32.7
12,093
16,268
Savings and money market:
Savings
173,091
7.1
169,192
6.4
159,601
6.3
3,899
13,490
Money market
375,833
15.3
377,685
14.3
350,548
13.7
(1,852)
25,285
Subtotal
548,924
22.4
546,877
20.7
510,149
20.0
2,047
38,775
Certificates of deposit:
CDs
922,022
37.6
923,801
35.0
896,892
35.1
(1,779)
25,130
Brokered Deposits
Non-maturity brokered deposits
4,027
0.2
250
—
251
—
3,777
3,776
Maturity brokered deposits
122,332
5.0
327,164
12.5
310,774
12.2
(204,832)
(188,442)
Subtotal
126,359
5.2
327,414
12.5
311,025
12.2
(201,055)
(184,666)
Total deposits
$2,448,882
100.0%
$2,637,576
100.0%
$2,553,375
100.0%
$(188,694)
$(104,493)
Borrowings (2)
$324,500
$167,305
$234,305
$157,195
$90,195
Stockholders' equity
$318,960
$313,852
$297,203
$5,108
$21,757
Book value per common share
$43.57
$42.42
$39.55
$1.15
$4.02
(1)
Primarily noninterest-bearing accounts based on applicable state law.
(2)
Comprised of FHLB advances and Federal Reserve Bank borrowings.
FS Bancorp Q2 Earnings
July 21, 2026
Page 8
Brokered deposits declined from the prior quarter, partially offset by increased borrowings, which offered a slightly lower cost of funds.
In the table above, the linked quarter increase in stockholders’ equity at June 30, 2026, compared to March 31, 2026, was primarily due to net income of $7.9 million. Changes in the fair value of available‑for‑sale securities and interest rate swap cash flow hedges increased accumulated other comprehensive income (“AOCI”) by $2.1 million, net of tax. Gains and losses in fair value reflect changes in market interest rates during the periods. The increase in stockholders’ equity was partially offset by share repurchases of $3.6 million and cash dividends paid of $2.2 million.
The Bank is considered “well capitalized” under the capital requirement established by the Federal Deposit Insurance Corporation (“FDIC”) and the Company exceeded all regulatory capital requirements. At June 30, 2026, capital ratios presented for the Bank and the Company were as follows:
At June 30, 2026
Bank
Company
Total risk-based capital (to risk-weighted assets)
14.01%
13.87%
Tier 1 leverage capital (to average assets)
11.43%
10.05%
CET 1 capital (to risk-weighted assets)
12.84%
11.29%
Credit Quality
The following tables summarize changes in the ACL on loans for the periods indicated and the balances of nonperforming and classified loans at the dates indicated.
For the three months ended
Linked
Prior Year
ACL ON LOANS
June 30,
March 31,
June 30,
Quarter
Quarter
(Dollars in thousands)
2026
2026
2025
$ Change
$ Change
Beginning ACL balance
$32,443
$31,937
$31,653
$506
$790
Provision
2,559
2,650
1,715
(91)
844
Charge-offs
Indirect
(2,067)
(2,450)
(1,556)
383
(511)
Marine
(7)
(75)
(43)
68
36
Other
(49)
(95)
(42)
46
(7)
Commercial and speculative construction and development
(2,277)
—
—
(2,277)
(2,277)
Commercial business
(39)
(230)
—
191
(39)
Subtotal
(4,439)
(2,850)
(1,641)
(1,589)
(2,798)
Recoveries
Indirect
584
585
331
(1)
253
Marine
3
36
54
(33)
(51)
Other
15
7
7
8
8
Commercial business
—
78
70
(78)
(70)
Subtotal
602
706
462
(104)
140
Ending ACL balance
$31,165
$32,443
$32,189
$(1,278)
$(1,024)
FS Bancorp Q2 Earnings
July 21, 2026
Page 9
NONPERFORMING LOANS
Linked
Prior Year
(Dollars in thousands)
June 30,
March 31,
June 30,
Quarter
Quarter
CRE LOANS
2026
2026
2025
$ Change
$ Change
CRE
$614
$1,081
$2,046
$(467)
$(1,432)
Commercial and speculative construction and development
7,164
9,442
9,083
(2,278)
(1,919)
Total CRE loans
7,778
10,523
11,129
(2,745)
(3,351)
RESIDENTIAL REAL ESTATE LOANS
One-to-four-family (excludes HFS)
1,973
1,983
1,809
(10)
164
Home equity
472
475
251
(3)
221
Total residential real estate loans
2,445
2,458
2,060
(13)
385
CONSUMER LOANS
Indirect home improvement
4,799
4,622
3,365
177
1,434
Marine
606
466
567
140
39
Other consumer
19
34
13
(15)
6
Total consumer loans
5,424
5,122
3,945
302
1,479
COMMERCIAL BUSINESS LOANS
C&I
—
165
1,862
(165)
(1,862)
Total nonperforming loans
$15,647
$18,268
$18,996
$(2,621)
$(3,349)
The decrease in nonperforming loans at June 30, 2026, compared to June 30, 2025, was primarily attributable to a $2.3 million charge-off on a commercial construction loan and a single payoff within the commercial real estate portfolio. The charge-off reflects leasing uncertainty and updated appraised values for the underlying property, as well as continued pressure on commercial real estate values in the surrounding market.
CLASSIFIED LOANS
Linked
Prior Year
(Dollars in thousands)
June 30,
March 31,
June 30,
Quarter
Quarter
CRE LOANS
2026
2026
2025
$ Change
$ Change
CRE
$4,236
$4,122
$2,046
$114
$2,190
Commercial and speculative construction and development
7,164
9,442
9,083
(2,278)
(1,919)
Total CRE loans
11,400
13,564
11,129
(2,164)
271
RESIDENTIAL REAL ESTATE LOANS
One-to-four-family (excludes HFS)
3,794
3,814
4,383
(20)
(589)
Home equity
472
475
251
(3)
221
Total residential real estate loans
4,266
4,289
4,634
(23)
(368)
CONSUMER LOANS
Indirect home improvement
4,799
4,622
3,365
177
1,434
Marine
606
466
567
140
39
Other consumer
19
34
13
(15)
6
Total consumer loans
5,424
5,122
3,945
302
1,479
COMMERCIAL BUSINESS LOANS
C&I
3,889
3,168
5,220
721
(1,331)
Total classified loans
$24,979
$26,143
$24,928
$(1,164)
$51
FS Bancorp Q2 Earnings
July 21, 2026
Page 10
Operating Results
Net interest income increased $536,000 to $32.6 million for the three months ended June 30, 2026, from $32.1 million for the three months ended June 30, 2025, primarily due to an increase in total interest income of $959,000, partially offset by an increase in total interest expense of $423,000. The $536,000 increase in net interest income was primarily due to an increase of $1.2 million in interest income on loans receivable, including fees, resulting from net loan growth. The $423,000 increase in total interest expense reflected a $612,000 increase in interest expense on borrowings resulting from higher average borrowing balances and a $423,000 increase in interest expense on the subordinated note following its repricing to a higher interest rate in 2026, partially offset by a $612,000 decrease in interest expense on deposits.
For the six months ended June 30, 2026, net interest income increased $2.1 million to $65.2 million, from $63.1 million for the six months ended June 30, 2025, with a $3.5 million increase in total interest income, partially offset by a $1.4 million increase in interest expense. The $3.5 million increase in total interest income was primarily due to an increase of $3.9 million in interest income on loans receivable, including fees, resulting from net loan growth. The $1.4 million increase in total interest expense was primarily due to a $1.0 million increase in interest expense on deposits, reflecting higher average deposit balances and funding costs during the period, and a $629,000 increase in interest expense on the subordinated note following its repricing to a higher interest rate in 2026, partially offset by a $267,000 decrease in interest expense on borrowings.
Net interest margin (“NIM”) (annualized) was unchanged at 4.30% for the three months ended June 30, 2026, compared to the same period in the prior year and decreased one basis point from 4.31% to 4.30% for the six months ended June 30, 2026, compared to the same period in 2025. Net interest margin remained relatively stable during both periods as modest increases in earning asset yields were largely offset by corresponding increases in funding costs.
The average total cost of funds, including noninterest-bearing checking, increased two basis points to 2.41% for the three months ended June 30, 2026, from 2.39% for the three months ended June 30, 2025. This increase primarily reflected the repricing of the subordinated note together with changes in the Company's funding mix during the period, partially offset by lower rates on certificates of deposit as those deposits repriced. The average cost of funds increased two basis points to 2.40% for the six months ended June 30, 2026, from 2.38% for the six months ended June 30, 2025, primarily for the same reason noted above.
For the three and six months ended June 30, 2026, the provision for credit losses on loans was $2.6 million and $5.2 million, compared to $2.0 million and $3.6 million for the three and six months ended June 30, 2025. The year-to-date provision for credit losses on loans reflects a $3.1 million increase in net charge-off activity, primarily due to a $2.3 million partial charge-off on a single commercial construction loan as well as increased charge-offs in the consumer loan portfolio. The commercial construction loan had been partially reserved for in prior periods.
During the three months ended June 30, 2026, total net charge-offs increased $2.7 million to $3.8 million, compared to $1.2 million for the three months ended June 30, 2025. The increase was primarily attributable to an additional charge-off on a commercial construction loan relationship that was previously partially charged off in 2024, as well as higher net charge-offs within the indirect home improvement portfolio. The additional charge-off reflects leasing uncertainty and updated appraised values for the underlying property, as well as continued pressure on commercial real estate values in the surrounding market. Following the additional charge-off, management believes the remaining carrying value appropriately reflects current collateral values. Management expects final resolution of the relationship during the second half of 2026. The increase in indirect home improvement loan net charge-offs primarily reflects elevated delinquency levels within portions of the portfolio.
FS Bancorp Q2 Earnings
July 21, 2026
Page 11
During the six months ended June 30, 2026, net charge-offs increased $3.1 million to $6.0 million, compared to $2.9 million for the six months ended June 30, 2025. The increase was primarily due to higher net charge-offs within the indirect home improvement portfolio and the additional charge-off on the commercial construction loan relationship discussed above.
Total noninterest income increased $980,000 to $6.2 million for the three months ended June 30, 2026, from $5.2 million for the three months ended June 30, 2025. The increase primarily reflected higher gain on sale of loans of $609,000 and a $404,000 increase in other noninterest income, partially offset by a $42,000 decrease in service charges and fee income.
Total noninterest income increased $1.3 million to $11.6 million for the six months ended June 30, 2026, from $10.3 million for the six months ended June 30, 2025. This increase was the result of a $1.3 million increase in gain on sale of loans and a $158,000 increase in other noninterest income, partially offset by a $213,000 decrease in service charges and fee income.
Total noninterest expense increased $602,000 to $26.1 million for the three months ended June 30, 2026, compared to $25.5 million for the three months ended June 30, 2025. The $602,000 increase was primarily attributable to a $1.5 million increase in salaries and benefits expense resulting from annual compensation adjustments implemented during the second quarter as part of the Company's annual focal review process, as well as higher benefit costs. In addition, the Company recorded $417,000 of acquisition-related costs associated with the previously announced merger with Pacific West Bancorp (“Pacific West”), which remains subject to customary closing conditions, including shareholder and regulatory approvals. These increases were partially offset by a $1.1 million reduction in operations expense, primarily due to an approximately $800,000 decrease in the mortgage repurchase reserve. The reduction reflects the continued seasoning of loans originated during the high-volume production years of 2020 and 2021, which reduced expected future repurchase losses.
Total noninterest expense increased $1.1 million to $51.6 million for the six months ended June 30, 2026, from $50.6 million for the six months ended June 30, 2025. This increase included a $1.8 million increase in salaries and benefits, a $712,000 increase in acquisition costs, and a $515,000 increase in loan costs, partially offset by a $1.2 million decrease in operations, primarily due to the same reason mentioned above.
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 loan and deposit services primarily to small- and middle-market businesses and individuals in Washington and Oregon. It operates through 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 the Northwest, focusing on markets 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 “SEC”), other public stockholder communications, or in oral statements made with the approval of an authorized executive officer, the words or phrases “believe,” “will,” “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “project,” “plans,” or similar expressions are intended to identify “forward-looking statements” 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.
FS Bancorp Q2 Earnings
July 21, 2026
Page 12
Factors that could cause the Company’s actual results to differ materially from those described in the forward-looking statements, include, but are not limited to the following: adverse economic conditions in the Company’s local market areas, other markets in which the Company has lending relationships, or other aspects of the Company’s business operations or financial markets, including, without limitation, as a result of employment levels; labor shortages, the effects of inflation, recessionary pressures or slowing economic growth; changes in interest rate levels and volatility, and the timing and pace of such changes, including actions by the Federal Reserve, which could adversely affect the Company's revenues and expenses, the values of our assets and obligations, and the availability and cost of capital and liquidity; inflationary pressures and related monetary and fiscal policy responses, 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, South America, and Asia, or the imposition of new or increased tariffs and trade restrictions, which may disrupt financial markets, global supply chains, commodity prices, or economic activity in specific industry sectors; the effects of a federal government shutdown, debt ceiling standoff, or other fiscal policy uncertainty; increased competitive pressures, including repricing and competitors' pricing initiatives, and their impact on the Company's market position, loan, and deposit products; adverse changes in the securities markets, the Company’s ability to 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’s ability to originate loans for sale and sell loans in the secondary market; volatility in the mortgage industry; fluctuations in deposits; liquidity issues, including the Company's ability to borrow funds or raise additional capital, if necessary; the impact of bank failures or adverse developments at other banks and related negative publicity 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 platforms, and cybersecurity; legislation or regulatory changes, including but not limited to shifts in capital requirements, banking regulation, tax laws, or consumer protection laws; vulnerabilities in information systems or third-party service providers, including disruptions, breaches, or attacks; environmental, social and governance matters; the effects of climate change, severe weather events, natural disasters, pandemics, epidemics and other public health crises, acts of war or terrorism, domestic political unrest and other external events on our business; and other factors described in the Company’s latest Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and other reports filed with or furnished to the SEC which are available on the Company's website at www.fsbwa.com and on the SEC's website at www.sec.gov.
Further, statements about the potential effects of the Company's proposed merger with Pacific West on the Company's business, financial results, and condition may constitute forward-looking statements and are subject to the risk that the actual effects may differ, possibly materially, from what is reflected in the forward-looking statements due to factor and future developments which are uncertain, unpredictable, and in many cases, beyond the Company's control, including the following: the expected cost savings, synergies and other financial benefits from the merger might not be realized within the expected time frames or at all; governmental approval of the merger may not be obtained, or adverse regulatory conditions may be imposed in connection with governmental approvals of the merger; conditions to the closing of the merger may not be satisfied; the shareholders of Pacific West may fail to approve the consummation of the merger; the integration of the combined company, including the retention of key personnel, might not proceed as planned; and the combined company might not perform as well as expected.
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 expressly disclaims any obligation, to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.
FS Bancorp Q2 Earnings
July 21, 2026
Page 13
FS BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands) (Unaudited)
Linked
Prior Year
June 30,
March 31,
June 30,
Quarter
Quarter
ASSETS
2026
2026
2025
% Change
% Change
Cash and due from banks
$12,835
$12,424
$15,168
3
(15)
Interest-bearing deposits at other financial institutions
16,875
26,278
18,027
(36)
(6)
Total cash and cash equivalents
29,710
38,702
33,195
(23)
(10)
Certificates of deposit at other financial institutions
—
—
248
—
NM
Securities available-for-sale, at fair value
269,460
271,007
302,692
(1)
(11)
Securities held-to-maturity, net
34,845
33,267
31,562
5
10
Loans held for sale, at fair value
30,548
56,275
53,630
(46)
(43)
Loans receivable, net
2,628,992
2,624,091
2,582,272
—
2
Accrued interest receivable
14,263
15,333
14,270
(7)
—
Premises and equipment, net
43,455
43,612
30,098
—
44
Long-lived assets held for sale
3,258
3,258
—
—
NM
Operating lease right-of-use
6,655
5,472
7,969
22
(16)
Federal Home Loan Bank stock, at cost
14,420
8,701
11,579
66
25
Deferred tax asset, net
6,441
7,175
7,782
(10)
(17)
Bank owned life insurance (“BOLI”), net
36,771
36,508
38,262
1
(4)
MSRs, held at the lower of cost or fair value
8,912
8,676
8,652
3
3
Goodwill
3,592
3,592
3,592
—
—
Core deposit intangible, net
9,052
9,774
12,071
(7)
(25)
Other assets
38,706
38,072
38,139
2
1
TOTAL ASSETS
$3,179,080
$3,203,515
$3,176,013
(1)
—
LIABILITIES
Deposits:
Noninterest-bearing accounts
$641,856
$653,691
$654,069
(2)
(2)
Interest-bearing accounts
1,807,026
1,983,885
1,899,306
(9)
(5)
Total deposits
2,448,882
2,637,576
2,553,375
(7)
(4)
Borrowings
324,500
167,305
234,305
94
38
Subordinated notes:
Principal amount
50,000
50,000
50,000
—
—
Unamortized debt issuance costs
(306)
(322)
(373)
(5)
(18)
Total subordinated notes less unamortized debt issuance costs
49,694
49,678
49,627
—
—
Operating lease liability
6,753
5,570
8,138
21
(17)
Other liabilities
30,291
29,534
33,365
3
(9)
Total liabilities
2,860,120
2,889,663
2,878,810
(1)
(1)
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS’ EQUITY
Preferred stock, $.01 par value; 5,000,000 shares authorized; none issued or outstanding
—
—
—
—
—
Common stock, $.01 par value; 45,000,000 shares authorized; 7,423,772 shares issued and outstanding at June 30, 2026, 7,501,542 at March 31, 2026, and 7,618,543 at June 30, 2025
74
75
76
(1)
(3)
Additional paid-in capital
40,886
43,668
48,418
(6)
(16)
Retained earnings
291,635
285,854
268,509
2
9
Accumulated other comprehensive loss, net of tax
(13,635)
(15,745)
(19,800)
(13)
(31)
Total stockholders’ e