FS Bancorp, Inc. Declares Two-for-One Stock Split in the Form of a Stock Dividend, Increased Quarterly Cash Dividend

Rhea-AI Summary

FS Bancorp has announced a two-for-one stock split through a 100% stock dividend, effective July 14, 2021, for shareholders of record as of July 6, 2021. This move will double the outstanding shares from approximately 4.2 million to 8.4 million, maintaining a par value of $0.01 per share. The recent quarterly cash dividend of $0.27 is set to be reduced to $0.14 post-split. CEO Joe Adams stated that this stock split aims to enhance liquidity and attract new investors while maintaining a commitment to long-term profitability and dividends.

Positive

• Stock split expected to increase liquidity and attract new investors.
• Commitment to shareholder value with continued dividend payments.

Negative

• Quarterly dividend decreased from $0.27 to $0.14 post-split.

MOUNTLAKE TERRACE, Wash., June 25, 2021 (GLOBE NEWSWIRE) -- FS Bancorp, Inc. (NASDAQ: FSBW) (the "Company"), the holding company for 1st Security Bank of Washington (the "Bank"), announced today that its Board of Directors declared a two-for-one stock split in the form of a 100% stock dividend, payable July 14, 2021, to shareholders of record as of July 6, 2021.  Under the terms of the stock split, the Company’s shareholders will receive a dividend of one share for every share held on the record date.  The dividend will be paid in authorized but unissued shares of the Company’s common stock.

The par value of the Company's stock will not be affected by the split and will remain at $0.01 per share.  The Company anticipates that the outstanding shares of stock after the split will be increased from approximately 4.2 million shares to 8.4 million shares. The Company’s most recent quarterly cash dividend was $0.27 per share and was paid on May 20, 2021.  The Board of Directors approved a one cent $0.01 increase at its June 24, 2021 meeting for shareholders as of July 23, 2021, payable on August 6, 2021. The quarterly dividend post-split is $0.14 per share.

Joe Adams, CEO, stated, “We are pleased to announce that the Board of Directors has determined that this stock split in the form of a stock dividend is in the best interest of our shareholders, as we anticipate the reduced trading price per share and the doubling of the shares outstanding will promote new investor interest and improve liquidity in the market.  As always, our business strategy includes long term profitability and payment of dividends reflecting our strong commitment to enhancing shareholder value.”

Additional information on the stock dividend is available at http://investorrelations.fsbwa.com/stock/stock-splits including frequently asked questions and information on the timing of stock dividends.

About FS Bancorp

FS Bancorp, Inc., a Washington corporation, is the holding company for 1st Security Bank of Washington. The Bank provides loan and deposit services to customers who are predominantly small- and middle-market businesses and individuals in Western Washington through its 21 Bank branches, one headquarter office that produces loans and accepts deposits, and nine loan production offices in various suburban communities in the greater Puget Sound area, and one loan production office in the market area of Tri-Cities, Washington. The Bank services home mortgage customers throughout Washington State with an emphasis in the Puget Sound and Tri-Cities home lending markets.

Forward-Looking Statements

This press release contains statements that the Company believes are “forward-looking statements.” These statements relate to the Company’s financial condition, results of operations, plans, objectives, future performance or business. You should not place undue reliance on these statements, as they are subject to risks and uncertainties, and actual results and performance in future periods may be materially different from any future results or performance suggested by the forward-looking statements in this release. Factors that might cause such differences include, but are not limited to, those identified in our risk factors contained in FS Bancorp, Inc.’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020.  Such forward-looking statements speak only as of the date of this release. The Company expressly disclaims any obligation to update or revise any forward-looking statements found herein to reflect any changes in the Company’s expectations of results or any change in events.

Contacts:
Joseph C. Adams,
Chief Executive Officer
Matthew D. Mullet,
Chief Financial Officer
(425) 771-5299
www.FSBWA.com 

FAQ

What is the dividend payment date for FS Bancorp's stock split?

The dividend payment date for FS Bancorp's stock split is July 14, 2021.

How many shares will shareholders receive in the FS Bancorp stock split?

Shareholders will receive one additional share for every share held, doubling their total shares.

What will be the new quarterly dividend amount after the stock split?

The new quarterly dividend after the stock split will be $0.14 per share.

When is the record date for the FS Bancorp stock split?

The record date for the FS Bancorp stock split is July 6, 2021.

Why did FS Bancorp decide to conduct a stock split?

FS Bancorp believes the stock split will reduce the trading price per share, promoting new investor interest.