FS Bancorp, Inc. Authorizes Additional Share Repurchases

Rhea-AI Summary

FS Bancorp (NASDAQ: FSBW) has announced a new share repurchase program authorized by its Board of Directors. The program allows for the repurchase of up to $5.0 million of the company's outstanding common stock, either through open market or private transactions, over a 12-month period ending March 31, 2026.

The new program will begin on the third trading day following this announcement. Additionally, approximately $900,000 remains available from the previously announced November 15, 2024 repurchase plan.

Management will conduct repurchases at their discretion based on market conditions, trading prices, and alternative capital uses. The program will follow SEC Rule 10b-18 limitations and can be suspended, terminated, or modified at any time.

Positive

• Authorization of new $5.0 million share repurchase program
• Additional $900,000 available from previous repurchase program
• Flexible implementation allowing both open market and private transactions
• Program demonstrates commitment to returning value to shareholders

Negative

• Program execution subject to market conditions and management discretion
• No obligation to purchase any specific number of shares

Insights

Financial Analyst

FS Bancorp's $5 million share repurchase authorization represents a significant capital allocation decision that supplements their existing program with $900,000 remaining. Combined, the $5.9 million total authorization equals approximately 2.09% of the company's $281.8 million market capitalization.

This expanded buyback program is strategically timed and structured with flexibility. Management can execute purchases through open market transactions, private negotiations, or via Rule 10b5-1 trading plans. These mechanisms provide the bank with multiple pathways to acquire shares at advantageous price points while maintaining regulatory compliance.

The company's decision to expand its repurchase program rather than increase dividends suggests management believes shares are undervalued at current trading levels. For a regional bank holding company like FS Bancorp, buybacks offer flexibility that fixed dividend commitments don't - particularly valuable in today's uncertain interest rate environment where capital preservation remains important for financial institutions.

The implementation of a systematic, long-term repurchase strategy through March 2026 demonstrates management's commitment to enhancing shareholder value through reduction of outstanding shares. This typically improves key per-share metrics and provides price support for the stock.

MOUNTLAKE TERRACE, Wash., April 04, 2025 (GLOBE NEWSWIRE) -- FS Bancorp, Inc. (NASDAQ: FSBW) (“Company”), the holding company for 1st Security Bank of Washington (“Bank”) announced that its Board of Directors has authorized an additional repurchase of up to $5.0 million in shares of the Company’s outstanding common stock in the open market, in privately negotiated transactions from time to time over a 12-month period until March 31, 2026, at such prices as may be determined by the Company’s management. The repurchase program will commence no sooner than the third trading day after the public announcement of this repurchase program. In addition, the previously announced repurchase plan, that was announced on November 15, 2024, has approximately $900,000 remaining that is authorized for repurchase.

The repurchase program permits shares to be repurchased in open market or private transactions or pursuant to a trading plan adopted in accordance with Rule 10b5-1 of the Securities and Exchange Commission (“SEC”).

Repurchases will be made at management's discretion at prices management considers to be attractive and in the best interests of both the Company and its shareholders, subject to the availability of stock, general market conditions, the trading price of the stock, alternative uses for capital, and the Company's financial performance. Open market purchases will be conducted in accordance with the limitations set forth in Rule 10b-18 of the SEC and other applicable legal requirements.

The repurchase program may be suspended, terminated or modified at any time for any reason, including market conditions, the cost of repurchasing shares, the availability of alternative investment opportunities, liquidity, and other factors deemed appropriate. These factors may also affect the timing and amount of share repurchases. The repurchase program does not obligate the Company to purchase any particular number of shares.

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 twenty-seven Bank branches, and one headquarters office that provide loan 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 throughout the Northwest predominantly in Washington State including Puget Sound, Tri-Cities and Vancouver.

For more information visit 1st Security Bank’s website at www.fsbwa.com.

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”), 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 “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. 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: potential adverse impacts to economic conditions in the Company’s local market areas, other markets where 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, a potential recession or slowed economic growth caused by increasing political instability from acts of war, including Russia’s invasion of Ukraine, as well as increasing prices and supply chain disruptions, and any governmental or societal response to new COVID-19 variants; increased competitive pressures, changes in the interest rate environment, adverse changes in the securities markets, the Company’s ability to successfully realize the anticipated benefits of the branch acquisitions, including customer acquisition and retention; 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; legislative and regulatory changes, including changes in banking, securities and tax law, in regulatory policies and principles, or the interpretation of regulatory capital or other rules; 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 and 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. These risks could cause the Company’s actual results for 2024 and beyond to differ materially from those expressed in any forward-looking statements made by, or on behalf of the Company and could negatively affect its operating and stock performance.

Contacts:

Joseph C. Adams
Chief Executive Officer

Matthew D. Mullet
President and Chief Financial Officer
(425) 771-5299
www.FSBWA.com

FAQ

How much is FS Bancorp's (FSBW) new share repurchase program worth?

FS Bancorp's new share repurchase program is worth $5.0 million, with an additional $900,000 remaining from the previous program.

When does FSBW's new share repurchase program expire?

The new share repurchase program runs for 12 months until March 31, 2026.

How will FSBW implement its share repurchase program?

FSBW will conduct repurchases through open market or private transactions, following SEC Rule 10b-18 limitations, at management's discretion based on market conditions.

When will FSBW's new share repurchase program begin?

The program will commence on the third trading day following the public announcement.