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  4. FS Bancorp, Inc. Reports $7.4 Million of Net Income or $0.92 Per Diluted Share for 2024 and 3.7% Increase in Its Quarterly Dividend

FS Bancorp, Inc. Reports $7.4 Million of Net Income or $0.92 Per Diluted Share for 2024 and 3.7% Increase in Its Quarterly Dividend

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FS Bancorp (NASDAQ: FSBW) reported Q4 2024 net income of $7.4 million ($0.92 per diluted share), down from $9.8 million ($1.23 per diluted share) in Q4 2023. The decrease was primarily due to a $2.5 million tax provision in Q4 2024 compared to a $420,000 tax benefit in Q3 2024. For the full year 2024, net income was $35.0 million ($4.36 per diluted share), compared to $36.1 million in 2023.

The company announced its 48th consecutive quarterly dividend increase of $0.01 to $0.28 per share, payable on February 20, 2025. Total assets increased to $3.03 billion, surpassing the $3 billion milestone. Tangible book value per share grew 13.8% year-over-year to $36.02.

Notable metrics include a net interest margin of 4.31%, total deposits of $2.34 billion (down 3.6% quarterly), and net loans receivable of $2.50 billion (up 1.6% quarterly).

FS Bancorp (NASDAQ: FSBW) ha riportato un reddito netto del Q4 2024 di 7,4 milioni di dollari (0,92 dollari per azione diluita), in calo rispetto ai 9,8 milioni di dollari (1,23 dollari per azione diluita) del Q4 2023. La diminuzione è dovuta principalmente a una provvista fiscale di 2,5 milioni di dollari nel Q4 2024 rispetto a un beneficio fiscale di 420.000 dollari nel Q3 2024. Per l'intero anno 2024, il reddito netto è stato di 35,0 milioni di dollari (4,36 dollari per azione diluita), rispetto ai 36,1 milioni di dollari nel 2023.

La società ha annunciato il suo 48° aumento consecutivo del dividendo trimestrale di 0,01 dollari a 0,28 dollari per azione, pagabile il 20 febbraio 2025. Gli attivi totali sono aumentati a 3,03 miliardi di dollari, superando il traguardo dei 3 miliardi. Il valore contabile tangibile per azione è cresciuto del 13,8% su base annua, raggiungendo 36,02 dollari.

Metrica notevoli includono un margine di interesse netto del 4,31%, depositi totali di 2,34 miliardi di dollari (in calo del 3,6% rispetto al trimestre precedente) e prestiti netti da incassare di 2,50 miliardi di dollari (in aumento dell'1,6% rispetto al trimestre precedente).

FS Bancorp (NASDAQ: FSBW) reportó un ingreso neto de 7.4 millones de dólares (0.92 dólares por acción diluida) en el cuarto trimestre de 2024, una disminución respecto a los 9.8 millones de dólares (1.23 dólares por acción diluida) en el cuarto trimestre de 2023. La disminución se debió principalmente a una provisión fiscal de 2.5 millones de dólares en el cuarto trimestre de 2024, en comparación con un beneficio fiscal de 420,000 dólares en el tercer trimestre de 2024. Para el año completo de 2024, el ingreso neto fue de 35.0 millones de dólares (4.36 dólares por acción diluida), comparado con 36.1 millones de dólares en 2023.

La compañía anunció su 48° aumento consecutivo del dividendo trimestral de 0.01 dólares a 0.28 dólares por acción, pagadero el 20 de febrero de 2025. Los activos totales aumentaron a 3.03 mil millones de dólares, superando la marca de los 3 mil millones. El valor contable tangible por acción creció un 13.8% en comparación anual, alcanzando 36.02 dólares.

Las métricas notables incluyen un margen de interés neto del 4.31%, depósitos totales de 2.34 mil millones de dólares (una disminución del 3.6% trimestral) y préstamos netos por cobrar de 2.50 mil millones de dólares (un aumento del 1.6% trimestral).

FS Bancorp (NASDAQ: FSBW)는 2024년 4분기 순이익으로 740만 달러 (희석주당 0.92 달러)를 보고했으며, 이는 2023년 4분기의 980만 달러 (희석주당 1.23 달러)에서 감소한 수치입니다. 감소의 주요 원인은 2024년 4분기의 250만 달러 세금 충당금과 2024년 3분기의 42만 달러 세금 혜택 차이에 기인합니다. 2024년 전체 연도 순이익은 3,500만 달러 (희석주당 4.36 달러)로, 2023년의 3,610만 달러와 비교됩니다.

회사는 주당 0.01달러에서 0.28달러로 48번째 연속 분기 배당금 인상을 발표했으며, 2025년 2월 20일에 지급될 예정입니다. 총 자산은 30억 3천만 달러로 증가하였으며, 30억 달러의 이정표를 초과하였습니다. 주당 유 tangible 장부 가치는 전년 대비 13.8% 증가하여 36.02 달러에 이릅니다.

주목할 만한 지표로는 4.31%의 순이자 마진, 23억 4천만 달러의 총 예금(분기 대비 3.6% 감소), 25억 달러의 순 대출채권(분기 대비 1.6% 증가) 등이 있습니다.

FS Bancorp (NASDAQ: FSBW) a annoncé un bénéfice net de 7,4 millions de dollars (0,92 dollars par action diluée) pour le quatrième trimestre 2024, en baisse par rapport à 9,8 millions de dollars (1,23 dollars par action diluée) pour le quatrième trimestre 2023. La baisse est principalement due à une provision fiscale de 2,5 millions de dollars au quatrième trimestre 2024, comparée à un avantage fiscal de 420 000 dollars au troisième trimestre 2024. Pour l'année complète 2024, le bénéfice net s'élevait à 35,0 millions de dollars (4,36 dollars par action diluée), contre 36,1 millions de dollars en 2023.

L'entreprise a annoncé sa 48ème augmentation consécutive du dividende trimestriel de 0,01 dollar à 0,28 dollar par action, payable le 20 février 2025. Les actifs totaux ont augmenté à 3,03 milliards de dollars, dépassant le seuil des 3 milliards de dollars. La valeur comptable tangible par action a augmenté de 13,8 % d'une année sur l'autre pour atteindre 36,02 dollars.

Parmi les indicateurs notables figurent une marge d'intérêt nette de 4,31 %, des dépôts totaux de 2,34 milliards de dollars (en baisse de 3,6 % par rapport au trimestre précédent) et des prêts nets à recevoir de 2,50 milliards de dollars (en hausse de 1,6 % par rapport au trimestre précédent).

FS Bancorp (NASDAQ: FSBW) meldete für das 4. Quartal 2024 einen Nettogewinn von 7,4 Millionen Dollar (0,92 Dollar pro verwässerter Aktie), was einem Rückgang gegenüber 9,8 Millionen Dollar (1,23 Dollar pro verwässerter Aktie) im 4. Quartal 2023 entspricht. Der Rückgang resultierte hauptsächlich aus einer Steuerbelastung von 2,5 Millionen Dollar im 4. Quartal 2024 im Vergleich zu einem Steuervorteil von 420.000 Dollar im 3. Quartal 2024. Für das gesamte Jahr 2024 betrug der Nettogewinn 35,0 Millionen Dollar (4,36 Dollar pro verwässerter Aktie), im Vergleich zu 36,1 Millionen Dollar im Jahr 2023.

Das Unternehmen gab seine 48. aufeinanderfolgende Erhöhung der vierteljährlichen Dividende von 0,01 Dollar auf 0,28 Dollar pro Aktie bekannt, zahlbar am 20. Februar 2025. Die Gesamtnettowerte stiegen auf 3,03 Milliarden Dollar und überschritten die 3 Milliarden-Dollar-Marke. Der buchmäßige Wert pro Aktie stieg im Jahresvergleich um 13,8 % auf 36,02 Dollar.

Bemerkenswerte Kennzahlen umfassen eine Nettozinsmarge von 4,31 %, Gesamtdeposits von 2,34 Milliarden Dollar (rückläufig um 3,6 % zum Vorquartal) und netto ausstehende Darlehen von 2,50 Milliarden Dollar (steigend um 1,6 % zum Vorquartal).

Positive
  • 48th consecutive quarterly dividend increase to $0.28 per share
  • Tangible book value per share increased 13.8% YoY to $36.02
  • Total assets surpassed $3 billion milestone
  • Net loans receivable increased 1.6% quarterly to $2.50 billion
  • Strong regulatory capital ratios with 14.2% total risk-based capital
Negative
  • Q4 net income decreased to $7.4M from $9.8M YoY
  • Total deposits decreased 3.6% quarterly to $2.34B
  • Full-year 2024 net income declined to $35.0M from $36.1M in 2023
  • Noninterest-bearing deposits decreased to $638.2M from $670.8M YoY

MOUNTLAKE TERRACE, Wash., Jan. 21, 2025 (GLOBE NEWSWIRE) -- FS Bancorp, Inc. (NASDAQ: FSBW) (the “Company”), the holding company for 1st Security Bank of Washington (the “Bank”), today reported fourth quarter net income of $7.4 million, or $0.92 per diluted share, compared to $9.8 million, or $1.23 per diluted share, for the comparable quarter one year ago. The decrease in net income during the fourth quarter of 2024, compared to the preceding quarter, was primarily due to a $420,000 tax benefit recorded during the preceding quarter, compared to a $2.5 million tax provision recorded for the fourth quarter of 2024.  The tax benefit for the third quarter of 2024 was due to $28.4 million of energy tax credits purchased during the third quarter related to the Inflation Reduction Act of 2022.  Net income for the year ended December 31, 2024 was $35.0 million, or $4.36 per diluted share, compared to $36.1 million, or $4.56 per diluted share for 2023.

“Despite economic volatility that has impacted interest rates for loans and deposits these past few years, we are proud to have, primarily through organic loan growth, surpassed $3 billion in total assets,” stated Joe Adams, CEO. “We are also thankful to our Board of Directors for increasing our forty-eighth consecutive quarterly cash dividend by $0.01 to $0.28 per common share.  The quarterly dividend will be paid on February 20, 2025, to shareholders of record as of February 6, 2025,” concluded Adams.

“Tangible book value (non-GAAP) per share was $36.02 at December 31, 2024, compared to $31.64 at December 31, 2023, a 13.8% increase year over year.  The focus on risk adjusted returns and growing tangible book value remains a mainstay for the Company's shareholders,” noted Matthew Mullet, President and CFO.

2024 Fourth Quarter and Year End Highlights

  • Net income was $7.4 million for the fourth quarter of 2024, compared to $10.3 million in the previous quarter, and $9.8 million for the comparable quarter one year ago;
  • Net interest margin (“NIM”) was 4.31% for the fourth quarter of 2024, compared to 4.35% in the previous quarter, and 4.24% for the comparable quarter one year ago;
  • Total deposits decreased $87.9 million, or 3.6%, to $2.34 billion at December 31, 2024, primarily due to a $107.9 million decrease in brokered deposits, compared to $2.43 billion at September 30, 2024, and decreased $182.9 million, or 7.3%, from $2.52 billion at December 31, 2023. Noninterest-bearing deposits were $638.2 million at December 31, 2024, $657.8 million at September 30, 2024, and $670.8 million at December 31, 2023;
  • Loans receivable, net increased $38.3 million, or 1.6%, to $2.50 billion at December 31, 2024, compared to $2.46 billion at September 30, 2024, and increased $100.5 million, or 4.2%, from $2.40 billion at December 31, 2023;
  • Consumer loans, of which 87.4% are home improvement loans, decreased $12.2 million, or 1.9%, to $620.2 million at December 31, 2024, compared to $632.4 million in the previous quarter and decreased $26.6 million, or 4.1% from $646.8 million in the comparable quarter one year ago. During the three months ended December 31, 2024, 81.2% of consumer portfolio originations for home improvement loans had a Fair Isaac Corporation (“FICO”) score above 720 and 80.7% were secured with a UCC-2 filing;
  • Borrowings increased $144.0 million, or 87.9%, to $307.8 million at December 31, 2024, compared to $163.8 million at September 30, 2024, and increased $214.1 million, or 228.3%, from $93.7 million at December 31, 2023;
  • A $2.5 million provision for income taxes was recorded during the fourth quarter of 2024, compared to a $420,000 tax benefit during the third quarter of 2024, as a result of $28.4 million of energy tax credits purchased during the third quarter of 2024;
  • Repurchased 35,000 shares of the Company's common stock in the fourth quarter of 2024 at an average price of $48.47 per share with $4.7 million remaining for future purchases under the existing share repurchase plan;
  • Book value per share increased $0.81 to $38.26 at December 31, 2024, compared to $37.45 at September 30, 2024, and increased $3.91 from $34.36 at December 31, 2023.  Tangible book value per share (non-GAAP financial measure) increased $0.92 to $36.02 at December 31, 2024, compared to $35.10 at September 30, 2024, and increased $6.62 from $31.64 at December 31, 2023.  See, “Non-GAAP Financial Measures.”
  • Segment reporting in the fourth quarter of 2024 reflected net income of $7.4 million for the Commercial and Consumer Banking segment and a net loss of $39,000 for the Home Lending segment, compared to net income of $9.3 million and $1.0 million in the prior quarter, and net income of $10.0 million and net loss of $254,000 in the fourth quarter of 2023, respectively; and
  • Regulatory capital ratios at the Bank were 14.2% for total risk-based capital and 11.2% for Tier 1 leverage capital at December 31, 2024, compared to 13.4% for total risk-based capital and 10.4% for Tier 1 leverage capital at December 31, 2023.

Segment Reporting

The Company reports two 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 portfolios and cash management services. This segment is also responsible for the management of the investment portfolio and other assets of the Bank. 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 months and years ended December 31, 2024 and 2023 (dollars in thousands):

  At or For the Three Months Ended December 31, 2024 
Condensed income statement: Commercial and Consumer Banking  Home Lending  Total 
Net interest income(1) $28,555  $2,559  $31,114 
(Provision) recovery for credit losses  (1,597)  75   (1,522)
Noninterest income(2)  2,308   2,302   4,610 
Noninterest expense(3)  (19,365)  (4,986)  (24,351)
Income (loss) before (provision) benefit for income taxes  9,901   (50)  9,851 
(Provision) benefit for income taxes  (2,480)  11   (2,469)
Net income (loss) $7,421  $(39) $7,382 
Total average assets for period ended $2,383,885  $606,826  $2,990,711 
Full-time employees ("FTEs")  447   115   562 


  At or For the Three Months Ended December 31, 2023 
Condensed income statement: Commercial and Consumer Banking  Home Lending  Total 
Net interest income(1) $28,405  $2,050  $30,455 
Provision for credit losses  (939)  (463)  (1,402)
Noninterest income(2)  2,602   2,854   5,456 
Noninterest expense(3)  (17,668)  (4,765)  (22,433)
Income (loss) before (provision) benefit for income taxes  12,400   (324)  12,076 
(Provision) benefit for income taxes  (2,374)  70   (2,304)
Net income (loss) $10,026  $(254) $9,772 
Total average assets for period ended $2,395,363  $548,002  $2,943,365 
FTEs  447   123   570 


  At or For the Year Ended December 31, 2024 
Condensed income statement: Commercial and Consumer Banking  Home Lending  Total 
Net interest income(1) $113,304  $9,801  $123,105 
Provision for credit losses  (5,393)  (118)  (5,511)
Noninterest income(2)  9,227   12,329   21,556 
Noninterest expense(3)  (77,615)  (19,954)  (97,569)
Income before (provision) benefit for income taxes  39,523   2,058   41,581 
(Provision) benefit for income taxes  (6,733)  176   (6,557)
Net income $32,790  $2,234  $35,024 
Total average assets for period ended $2,373,295  $591,236  $2,964,531 
FTEs  447   115   562 


  At or For the Year Ended December 31, 2023 
Condensed income statement: Commercial and Consumer Banking  Home Lending  Total 
Net interest income(1) $111,737  $11,566  $123,303 
Provision for credit losses  (3,494)  (1,280)  (4,774)
Noninterest income(2)  10,368   10,122   20,490 
Noninterest expense(3)  (73,767)  (19,980)  (93,747)
Income before provision for income taxes  44,844   428   45,272 
Provision for income taxes  (9,132)  (87)  (9,219)
Net income $35,712  $341  $36,053 
Total average assets for period ended $2,315,806  $527,442  $2,843,248 
FTEs  447   123   570 

________________________

(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 months and year ended December 31, 2024, the Company recorded a net decrease in fair value of $396,000 and a net increase in fair value of $52,000, respectively, as compared to net increases in fair value of $733,000 and $447,000 for the three months and year ended December 31, 2023, respectively.  As of December 31, 2024 and 2023, there were $12.7 million and $15.1 million, respectively, in residential mortgage loans recorded at fair value as they were previously 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 months and years ended December 31, 2024 and 2023, the Home Lending segment included allocated overhead expenses of $1.8 million and $6.6 million, compared to $1.4 million and $6.1 million, respectively.
   

Asset Summary

Total assets increased $59.0 million, or 2.0%, to $3.03 billion at December 31, 2024, compared to $2.97 billion at both September 30, 2024 and December 31, 2023. The increase in total assets at December 31, 2024, compared to September 30, 2024, was primarily due to increases of $53.0 million in securities available-for-sale (“AFS”), $38.3 million in loans receivable, net, and $6.1 million in FHLB stock, partially offset by decreases of $21.5 million in loans held for sale (“HFS”), $10.3 million in certificates of deposit (“CDs”) at other financial institutions, and $10.0 million in interest-bearing deposits at other financial institutions.  The increase in securities AFS was attributable to purchases of variable and shorter duration securities.  The increase in loans receivable, net was due to organic loan growth. The increase compared to December 31, 2023, was primarily due to increases in loans receivable, net of $100.5 million, other assets of $21.3 million, and FHLB stock of $13.5 million, partially offset by decreases in interest-bearing deposits at other financial institutions of $36.3 million, CDs at other financial institutions of $22.4 million, securities available-for-sale of $11.8 million, and mortgage servicing rights (“MSRs”) held for sale of $8.1 million.

LOAN PORTFOLIO                        
(Dollars in thousands) December 31, 2024  September 30, 2024  December 31, 2023 
  Amount  Percent  Amount  Percent  Amount  Percent 
REAL ESTATE LOANS                        
Commercial $345,317   13.6% $352,933   14.1% $366,328   15.1%
Construction and development  330,700   13.1   292,366   11.7   303,054   12.5 
Home equity  75,147   3.0   75,063   3.0   69,488   2.9 
One-to-four-family (excludes HFS)  617,322   24.4   591,666   23.7   567,742   23.3 
Multi-family  245,222   9.7   238,462   9.6   223,769   9.2 
Total real estate loans  1,613,708   63.8   1,550,490   62.1   1,530,381   63.0 
                         
CONSUMER LOANS                        
Indirect home improvement  541,946   21.4   552,226   22.2   569,903   23.4 
Marine  74,931   3.0   76,845   3.1   73,310   3.0 
Other consumer  3,304   0.1   3,346   0.1   3,540   0.1 
Total consumer loans  620,181   24.5   632,417   25.4   646,753   26.5 
                         
COMMERCIAL BUSINESS LOANS                        
Commercial and industrial ("C&I")  287,014   11.3   296,773   11.9   238,301   9.8 
Warehouse lending  12,918   0.4   15,249   0.6   17,580   0.7 
Total commercial business loans  299,932   11.7   312,022   12.5   255,881   10.5 
Total loans receivable, gross  2,533,821   100.0%  2,494,929   100.0%  2,433,015   100.0%
                         
Allowance for credit losses on loans  (31,870)      (31,232)      (31,534)    
Total loans receivable, net $2,501,951      $2,463,697      $2,401,481     
                         

Loans receivable, net increased $38.3 million to $2.50 billion at December 31, 2024, from $2.46 billion at September 30, 2024, and increased $100.5 million from $2.40 billion at December 31, 2023. The increase in total real estate loans at December 31, 2024, compared to the prior quarter reflects increases in construction and development loans of $38.3 million, one-to-four-family loans (excluding loans HFS) of $25.7 million, and multi-family loans of $6.8 million.  These increases were partially offset by a $7.6 million decrease in commercial real estate loans. Consumer loans decreased $12.2 million primarily due to a $10.3 million decrease in indirect home improvement loans and $1.9 million decrease in marine loans.  Commercial business loans decreased $12.1 million, primarily as a result of a $9.8 million decrease in commercial and industrial (“C&I”) loans and $2.3 million decrease in warehouse lending.

A breakdown of commercial real estate (“CRE”) loans at the dates indicated were as follows:

(Dollars in thousands) December 31, 2024  September 30, 2024  December 31, 2023 
CRE by Type: Amount  Amount  Amount 
Agriculture $3,834  $3,610  $3,799 
CRE Non-owner occupied:            
Office  39,697   40,672   42,739 
Retail  36,568   36,070   38,691 
Hospitality/restaurant  27,562   27,743   28,007 
Self storage  19,111   19,130   21,381 
Mixed use  17,721   17,881   19,331 
Industrial  15,125   15,402   16,978 
Senior housing/assisted living  7,565   7,621   8,505 
Other(1)  6,631   6,684   8,365 
Land  2,421   2,523   3,936 
Education/worship  2,520   2,545   2,620 
Total CRE non-owner occupied  174,921   176,271   190,553 
CRE owner occupied:            
Industrial  67,064   63,577   66,048 
Office  42,223   42,156   41,495 
Retail  20,718   19,968   22,020 
Hospitality/restaurant  10,396   10,528   11,065 
Other(2)  8,612   8,116   8,522 
Car wash  —   9,575   7,767 
Automobile related  7,325   8,874   7,530 
Education/worship  4,608   4,609   4,606 
Mixed use  5,616   5,649   2,923 
Total CRE owner occupied  166,562   173,052   171,976 
   Total $345,317  $352,933  $366,328 

________________________

(1) Primarily includes loans secured by mobile home parks totaling $766,000, $774,000, and $2.3 million, RV parks totaling $685,000, $689,000, and $699,000, automobile-related collateral totaling $589,000, $594,000, and $608,000, and other collateral totaling $4.6 million, $4.6 million, and $4.4 million at December 31, 2024, September 30, 2024, and December 31, 2023, respectively.
(2) Primarily includes loans secured by gas stations totaling $1.5 million, $1.5 million, and $1.7 million, non-profit organization totaling $1.5 million, $901,000, and $922,000, and other collateral totaling $5.6 million, $5.7 million, and $5.5 million at December 31, 2024, September 30, 2024, and December 31, 2023, respectively.
   

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:

(Dollars in thousands)  For the Quarter Ended    Current Weighted
  Mar 31, Jun 30, Sep 30, Dec 31, Mar 31, Jun 30, Sep 30, Dec 31,    Average
CRE by type: 2025 2025 2025 2025 2026 2026 2026 2026 Total Rate
Agriculture $840 $424 $— $312 $181 $— $300 $— $2,057 6.22%
Apartment  9,177  6,167  1,826  18,617  1,893  13,951  9,780  7,163  68,574 4.98%
Auto related  —  2,075  —  —  —  —  —  —  2,075 4.18%
Hotel / hospitality  572  1,203  1,326  —  116  1,286  —  —  4,503 4.39%
Industrial  891  583  —  10,243  581  173  1,615  —  14,086 4.26%
Mixed use  1,738  3,479  247  315  —  —  —  385  6,164 5.29%
Office  10,448  453  4,172  977  523  1,654  562  7,805  26,594 4.89%
Other  1,146  115  1,158  243  897  —  2,520  1,509  7,588 5.05%
Retail  1,883  984  72  —  451  3,261  —  3,448  10,099 4.25%
Senior housing and assisted living  —  —  —  —  2,172  —  —  —  2,172 4.75%
Total $26,695 $15,483 $8,801 $30,707 $6,814 $20,325 $14,777 $20,310 $143,912 4.84%
                              

A breakdown of construction loans at the dates indicated were as follows:

(Dollars in thousands)                
  December 31, 2024  September 30, 2024 
Construction Types: Amount  Percent  Amount  Percent 
Commercial construction - retail $8,079   2.4% $8,710   3.0%
Commercial construction - office  4,979   1.5   4,737   1.6 
Commercial construction - self storage  13,480   4.1   10,408   3.5 
Commercial construction - car wash  —   —   7,807   2.7 
Multi-family  30,945   9.4   30,931   10.6 
Custom construction - single family residential and single family manufactured residential  42,040   12.7   43,528   14.9 
Custom construction - land, lot and acquisition and development  7,862   2.4   8,220   2.8 
Speculative residential construction - vertical  180,381   54.5   145,549   49.8 
Speculative residential construction - land, lot and acquisition and development  42,934   13.0   32,476   11.1 
Total $330,700   100.0% $292,366   100.0%


(Dollars in thousands)                
  December 31, 2024  December 31, 2023 
Construction Types: Amount  Percent  Amount  Percent 
Commercial construction - retail $8,079   2.4% $—   —%
Commercial construction - office  4,979   1.5   4,699   1.5 
Commercial construction - self storage  13,480   4.1   17,445   5.8 
Commercial construction - car wash  —   —   7,742   2.5 
Multi-family  30,945   9.4   56,065   18.5 
Custom construction - single family residential and single family manufactured residential  42,040   12.7   47,230   15.7 
Custom construction - land, lot and acquisition and development  7,862   2.4   6,377   2.1 
Speculative residential construction - vertical  180,381   54.5   131,336   43.3 
Speculative residential construction - land, lot and acquisition and development  42,934   13.0   32,160   10.6 
Total $330,700   100.0% $303,054   100.0%
                 

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

(Dollars in thousands) For the Three Months Ended         
  December 31, 2024  September 30, 2024         
  Amount  Percent  Amount  Percent  $ Change  % Change 
Purchase $129,232   83.2% $168,088   85.7% $(38,856)  (23.1)%
Refinance  26,116   16.8   28,001   14.3   (1,885)  (6.7)%
Total $155,348   100.0% $196,089   100.0% $(40,741)  (20.7)%


(Dollars in thousands) For the Three Months Ended December 31,         
  2024  2023         
  Amount  Percent  Amount  Percent  $ Change  % Change 
Purchase $129,232   83.2% $110,458   90.7% $18,774   17.0%
Refinance  26,116   16.8   11,290   9.3   14,826   131.3%
Total $155,348   100.0% $121,748   100.0% $33,600   27.6%


(Dollars in thousands) For the Year Ended December 31,         
  2024  2023         
  Amount  Percent  Amount  Percent  $ Change  % Change 
Purchase $626,937   87.6% $497,669   91.6% $129,268   26.0%
Refinance  88,662   12.4   45,925   8.4   42,737   93.1%
Total $715,599   100.0% $543,594   100.0% $172,005   31.6%
                         

During the quarter ended December 31, 2024, the Company sold $138.9 million of one-to-four-family loans compared to $167.6 million during the previous quarter and $87.5 million during the same quarter one year ago. Gross margins on home loan sales increased to 3.14% for the quarter ended December 31, 2024, compared to 2.96% in the previous quarter and 3.09% 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

Changes in deposits at the dates indicated were as follows:

(Dollars in thousands)                        
  December 31, 2024  September 30, 2024         
Transactional deposits: Amount  Percent  Amount  Percent  $ Change  % Change 
Noninterest-bearing checking $627,679   26.8% $641,270   26.4% $(13,591)  (2.1)%
Interest-bearing checking(1)  176,561   7.5   165,944   6.8   10,617   6.4 
Escrow accounts related to mortgages serviced(2)  10,479   0.5   16,483   0.7   (6,004)  (36.4)
Subtotal  814,719   34.8   823,697   33.9   (8,978)  (1.1)
Savings  154,188   6.6   151,364   6.2   2,824   1.9 
Money market(3)  341,615   14.6   340,049   14.0   1,566   0.5 
Subtotal  495,803   21.2   491,413   20.2   4,390   0.9 
Certificates of deposit less than $100,000(4)  440,257   18.8   533,441   22.0   (93,184)  (17.5)
Certificates of deposit of $100,000 through $250,000  455,594   19.5   452,705   18.7   2,889   0.6 
Certificates of deposit greater than $250,000  133,045   5.7   126,075   5.2   6,970   5.5 
Subtotal  1,028,896   44.0   1,112,221   45.9   (83,325)  (7.5)
Total $2,339,418   100.0% $2,427,331   100.0% $(87,913)  (3.6)%


(Dollars in thousands)                        
  December 31, 2024  December 31, 2023         
Transactional deposits: Amount  Percent  Amount  Percent  $ Change  % Change 
Noninterest-bearing checking $627,679   26.8% $654,048   25.9% $(26,369)  (4.0)%
Interest-bearing checking(1)  176,561   7.5   244,028   9.7   (67,467)  (27.6)
Escrow accounts related to mortgages serviced(2)  10,479   0.5   16,783   0.7   (6,304)  (37.6)
Subtotal  814,719   34.8   914,859   36.3   (100,140)  (10.9)
Savings  154,188   6.6   151,630   6.0   2,558   1.7 
Money market(3)  341,615   14.6   359,063   14.2   (17,448)  (4.9)
Subtotal  495,803   21.2   510,693   20.2   (14,890)  (2.9)
Certificates of deposit less than $100,000(4)  440,257   18.8   587,858   23.3   (147,601)  (25.1)
Certificates of deposit of $100,000 through $250,000  455,594   19.5   429,373   17.0   26,221   6.1 
Certificates of deposit greater than $250,000  133,045   5.7   79,540   3.2   53,505   67.3 
Subtotal  1,028,896   44.0   1,096,771   43.5   (67,875)  (6.2)
Total $2,339,418   100.0% $2,522,323   100.0% $(182,905)  (7.3)%

_______________________

(1) There were no brokered deposits at December 31, 2024 and September 30, 2024, and $70.2 million of brokered deposits at December 31, 2023.
(2) Noninterest-bearing accounts.
(3) Includes $279,000, $1.0 million, and $1,000 of brokered deposits at December 31, 2024, September 30, 2024 and December 31, 2023, respectively.
(4) Includes $143.1 million, $250.2 million, and $361.3 million of brokered deposits at December 31, 2024, September 30, 2024 and December 31, 2023, respectively.
   

At December 31, 2024, CDs, which include retail and nonretail CDs, totaled $1.03 billion, compared to $1.11 billion at September 30, 2024, and $1.10 billion at December 31, 2023, with nonretail CDs representing 15.0%, 22.5% and 34.2% of total CDs at such dates, respectively.  At December 31, 2024, nonretail CDs, which include brokered CDs, online CDs, and public funds CDs, decreased $108.1 million to $154.8 million, compared to $262.9 million at September 30, 2024, primarily due to a decrease of $107.2 million in brokered CDs. Nonretail CDs totaled $154.8 million at December 31, 2024, compared to $374.5 million at December 31, 2023. The decrease in brokered CDs was primarily due to more favorable rates in FHLB borrowings at maturity.

At December 31, 2024, the Bank had uninsured deposits of approximately $652.7 million, compared to approximately $644.9 million in September 30, 2024, and approximately $606.5 million at December 31, 2023.  The uninsured amounts are estimated based on the methodologies and assumptions used for the Bank's regulatory reporting requirements.

At December 31, 2024, borrowings increased $144.0 million to $307.8 million from $163.8 million at September 30, 2024, and increased $214.1 million, from $93.7 million at December 31, 2023. These increases coincide primarily with the decreases in brokered CDs mentioned above due to more favorable rates in FHLB borrowings. The borrowings were comprised of FHLB advances of $258.8 million and overnight borrowings of $49.0 million.

Total stockholders’ equity increased $6.9 million, to $295.8 million at December 31, 2024, from $288.9 million at September 30, 2024, and increased $31.3 million from $264.5 million at December 31, 2023. The increase in stockholders’ equity at December 31, 2024, compared to September 30, 2024, reflects net income of $7.4 million, partially offset by dividends paid of $2.1 million. Stockholders’ equity was also positively impacted by a $1.1 million net decrease in accumulated other comprehensive loss, net of tax, reflecting changes in market interest rates during the quarter. Book value per common share was $38.26 at December 31, 2024, compared to $37.45 at September 30, 2024, and $34.36 at December 31, 2023.

The Bank is considered well capitalized under the minimum capital requirements established by the Federal Deposit Insurance Corporation (“FDIC”) with a total risk-based capital ratio of 14.2%, a Tier 1 leverage capital ratio of 11.2%, and a common equity Tier 1 (“CET1”) capital ratio of 12.9% at December 31, 2024.

The Company exceeded all regulatory capital requirements with a total risk-based capital ratio of 14.5%, a Tier 1 leverage capital ratio of 9.9%, and a CET1 ratio of 11.4% at December 31, 2024.

Credit Quality

The allowance for credit losses for loans (“ACLL”) was $31.9 million, or 1.26% of gross loans receivable (excluding loans HFS), at December 31, 2024, compared to $31.2 million, or 1.25% of gross loans receivable (excluding loans HFS), at September 30, 2024, and $31.5 million, or 1.30% of gross loans receivable (excluding loans HFS), at December 31, 2023. The increases in the ACLL at December 31, 2024, compared to the prior quarter and the same quarter a year ago was primarily due to loan growth, increases in nonperforming loans, and an increase in charge-offs. The allowance for credit losses on unfunded loan commitments decreased $98,000 to $1.4 million at December 31, 2024, compared to $1.5 million at both September 30, 2024, and December 31, 2023. 

Nonperforming loans increased $2.8 million to $13.6 million at December 31, 2024, from $10.8 million at September 30, 2024, and from $11.0 million at December 31, 2023. The increase in nonperforming loans at December 31, 2024, from the prior quarter was primarily due to increases in commercial real estate loans of $1.6 million, commercial business loans of $871,000, and construction and development loans of $242,000.  The increase in nonperforming loans compared to the prior year was primarily due to increases in commercial real estate loans of $1.7 million, commercial business loans of $763,000, and construction and development loans of $280,000, partially offset by a decrease in indirect home improvement loans of $186,000 and marine loans of $53,000.   

Loans classified as substandard decreased $280,000 to $22.9 million at December 31, 2024, compared to $23.2 million at September 30, 2024, and decreased $1.6 million from $24.5 million at December 31, 2023. The decrease in substandard loans at December 31, 2024, compared to the prior quarter was primarily attributable to decreases of $592,000 in commercial and industrial loans and $93,000 in indirect home improvement loans, partially offset by an increase of $243,000 in construction and development loans. Compared to the prior year, the decrease in substandard loans was primarily due to decreases of $1.3 million in commercial and industrial loans, $318,000 in commercial real estate loans, and $186,000 in indirect home improvement loans, partially offset by an increase of $281,000 million in construction and development loans. There was no other real estate owned (“OREO”) property at December 31, 2024, September 30, 2024, and December 31, 2023.

Operating Results

Net interest income increased $659,000 to $31.1 million for the three months ended December 31, 2024, from $30.5 million for the three months ended December 31, 2023, primarily as a result of an increase in interest income on loans receivable, including fees, partially offset by an increase in interest expense. Total interest income for the three months ended December 31, 2024, increased $2.5 million compared to the same period last year, primarily due to an increase of $2.8 million in interest income on loans receivable, including fees. This growth was primarily attributable to new loans being originated at higher rates and variable rate loans repricing higher following increases in market interest rates. Total interest expense increased $1.9 million to $15.9 million for the three months ended December 31, 2024, compared to the same period last year, primarily the result of higher market interest rates on brokered deposits and borrowings.

For the year ended December 31, 2024, net interest income decreased $198,000 to $123.1 million, from $123.3 million for the year ended December 31, 2023, as a $17.6 million increase in interest income was more than offset by a $17.8 million increase in interest expense.

NIM increased seven basis points to 4.31% for the three months ended December 31, 2024, compared to 4.24% for the same period in the prior year.  However, for the year ended December 31, 2024, NIM decreased 18 basis points to 4.30% from 4.48% for the year ended December 31, 2023. The increase in NIM for the three months ended December 31, 2024, compared to the same period in 2023, was due to higher net interest income, partially offset by a slight increase in average interest-earning assets.  In contrast, the decrease in NIM for the year ended December 31, 2024, compared to the prior year, was primarily the result of higher average interest-earning assets and a slight decrease in net interest income between the periods.

The average total cost of funds, including noninterest-bearing checking, increased 28 basis points to 2.38% for the three months ended December 31, 2024, from 2.10% for the three months ended December 31, 2023. This increase was predominantly due to higher market rates for deposits and increased utilization of higher cost borrowings. The average cost of funds increased 71 basis points to 2.43% for the year ended December 31, 2024, from 1.72% for the year ended December 31, 2023, also reflecting increases in market interest rates over last year and increased utilization of borrowings. Management remains focused on matching deposit/liability duration with the duration of loans/assets where feasible.

For the three months and year ended December 31, 2024, the provision for credit losses on loans was $1.6 million and $5.6 million, compared to $1.7 million and $5.8 million, for the three months and year ended December 31, 2023, respectively.  The provision for credit losses on loans reflects consumer charge-offs and organic loan growth during the periods.

During the three months ended December 31, 2024, net charge-offs increased $348,000 to $983,000, compared to $635,000 for the same period last year, reflecting increased net charge-offs of $330,000 in indirect home improvement loans and $167,000 in marine loans, partially offset by decreases of $144,000 in commercial business loans and $10,000 in deposits and overdrafts. Net charge-offs increased $3.1 million to $5.3 million during the year ended December 31, 2024, compared to $2.2 million during the year ended December 31, 2023, reflecting increased net charge-off increases of $1.8 million in indirect home improvement loans, $905,000 in C&I loans, $313,000 in marine loans, and $71,000 in other consumer loans. Management attributes the increase in net charge-offs over the year primarily to volatile economic conditions.

Noninterest income decreased $846,000 to $4.6 million, for the three months ended December 31, 2024, from $5.5 million for the three months ended December 31, 2023. The decrease reflects a $910,000 decrease in other noninterest income, primarily as a result of a reduction in fair value on loans held under the fair value option, and a decrease of $273,000 in service charges and fee income, primarily due to the sale of MSRs in the first quarter of 2024. These decreases were partially offset by a $320,000 increase in gain on sale of loans.  Noninterest income increased $1.1 million to $21.6 million for the year ended December 31, 2024, from $20.5 million for the year ended December 31, 2023. This increase was primarily the result of an $8.4 million gain on sale of MSRs mentioned above with no similar transaction occurring in the same period in 2023, and a $1.8 million increase in gain on sale of loans, partially offset by a $7.8 million loss on sale of investment securities resulting from management's strategic decision to increase the yields and reduce the duration of the securities portfolio, and a $1.1 million decrease in service charges and fee income due to a reduction in loan servicing fees due to the sale of MSRs in the first quarter of 2024.

Noninterest expense increased $1.9 million to $24.4 million for the three months ended December 31, 2024, from $22.4 million for the three months ended December 31, 2023. The increase in noninterest expense was primarily the result of an increase of $1.4 million in salaries and benefits, primarily driven by increased commissions for organic loan growth, $492,000 in data processing, reflecting loan growth, $455,000 in professional (consulting) and board fees, primarily related to the purchase of tax credits recorded in the third quarter. In addition, a $583,000 fair value recovery on servicing rights was recorded during the fourth quarter of 2024, compared to a $48,000 fair value impairment on servicing rights during the same period in 2023. Noninterest expense increased $3.8 million, to $97.6 million for the year ended December 31, 2024, from $93.7 million for the year ended December 31, 2023. This increase was primarily due to increases of $1.8 million in data processing, $1.5 million in professional (consulting) and board fees, $1.5 million in salaries and benefits, and $479,000 in occupancy, partially offset by a decrease of $1.6 million in acquisition costs as a result of no acquisition costs during the fourth quarter of 2024.  

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”), 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: 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 recession or slowed economic growth; changes in the interest rate environment, including the increases and decreases in the Federal Reserve benchmark rate and duration at which such interest rate levels are maintained, 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 the current and future monetary policies of the Federal Reserve in response thereto; the effects of any federal government shutdown; 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’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 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; 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; disruptions, security breaches, or other adverse events, failures or interruptions in, or attacks on, our information technology systems or on the third-party vendors who perform critical processing functions for us; the potential imposition of new tariffs or changes to existing trade policies that could affect economic activity or specific industry sectors; 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, civil 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 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. 

 
FS BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except share amounts) (Unaudited)
                   
              Linked  Prior Year 
  December 31,  September 30,  December 31,  Quarter  Quarter 
  2024  2024  2023  % Change  % Change 
ASSETS                    
Cash and due from banks $19,280  $17,950  $17,083   7   13 
Interest-bearing deposits at other financial institutions  12,355   22,390   48,608   (45)  (75)
Total cash and cash equivalents  31,635   40,340   65,691   (22)  (52)
Certificates of deposit at other financial institutions  1,727   12,001   24,167   (86)  (93)
Securities available-for-sale, at fair value  281,175   228,199   292,933   23   (4)
Securities held-to-maturity, net  8,455   8,455   8,455   —   — 
Loans held for sale, at fair value  27,835   49,373   25,668   (44)  8 
Loans receivable, net  2,501,951   2,463,697   2,401,481   2   4 
Accrued interest receivable  13,881   14,014   14,005   (1)  (1)
Premises and equipment, net  29,756   30,026   30,578   (1)  (3)
Operating lease right-of-use  5,378   5,365   6,627   —   (19)
Federal Home Loan Bank stock, at cost  15,621   9,504   2,114   64   639 
Deferred tax asset, net  7,059   4,222   6,725   67   5 
Bank owned life insurance (“BOLI”), net  38,528   38,453   37,719   —   2 
MSRs, held at the lower of cost or fair value  9,204   8,739   9,090   5   1 
MSRs, held for sale, held at the lower of cost or fair value  —   —   8,086   —   (100)
Goodwill  3,592   3,592   3,592   —   — 
Core deposit intangible, net  13,710   14,586   17,343   (6)  (21)
Other assets  39,670   39,642   18,395   —   116 
TOTAL ASSETS $3,029,177  $2,970,208  $2,972,669   2   2 
LIABILITIES                    
Deposits:                    
Noninterest-bearing accounts $638,158  $657,753  $670,831   (3)  (5)
Interest-bearing accounts  1,701,260   1,769,578   1,851,492   (4)  (8)
Total deposits  2,339,418   2,427,331   2,522,323   (4)  (7)
Borrowings  307,806   163,806   93,746   88   228 
Subordinated notes:                    
Principal amount  50,000   50,000   50,000   —   — 
Unamortized debt issuance costs  (406)  (423)  (473)  (4)  (14)
Total subordinated notes less unamortized debt issuance costs  49,594   49,577   49,527   —   — 
Operating lease liability  5,556   5,548   6,848   —   (19)
Other liabilities  31,036   35,044   35,737   (11)  (13)
Total liabilities  2,733,410   2,681,306   2,708,181   2   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; 7,833,014 shares issued and outstanding at December 31, 2024, 7,817,172 at September 30, 2024, and 7,800,545 at December 31, 2023  78   78   78   —   — 
Additional paid-in capital  55,716   55,264   57,362   1   (3)
Retained earnings  257,113   251,843   230,354   2   12 
Accumulated other comprehensive loss, net of tax  (17,140)  (18,283)  (23,306)  (6)  (26)
Total stockholders’ equity  295,767   288,902   264,488   2   12 
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $3,029,177  $2,970,208  $2,972,669   2   2 
                     


 
FS BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share amounts) (Unaudited)
          
  Three Months Ended  Linked  Prior Year 
  December 31,  September 30,  December 31,  Quarter  Quarter 
  2024  2024  2023  % Change  % Change 
INTEREST INCOME                    
Loans receivable, including fees $43,654  $43,800  $40,863   —   7 
Interest and dividends on investment securities, cash and cash equivalents, and certificates of deposit at other financial institutions  3,320   3,243   3,580   2   (7)
Total interest and dividend income  46,974   47,043   44,443   —   6 
INTEREST EXPENSE                    
Deposits  13,543   13,486   12,055   —   12 
Borrowings  1,831   1,828   1,447   —   27 
Subordinated notes  486   485   486   —   — 
Total interest expense  15,860   15,799   13,988   —   13 
NET INTEREST INCOME  31,114   31,244   30,455   —   2 
PROVISION FOR CREDIT LOSSES  1,522   1,513   1,402   1   9 
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES  29,592   29,731   29,053   —   2 
NONINTEREST INCOME                    
Service charges and fee income  2,513   2,482   2,786   —   (10)
Gain on sale of loans  1,733   2,523   1,413   (31)  23 
Gain on sale of MSRs  —   141   —   (100)  NM 
Gain on sale of investment securities, net  —   11   —   (100)  NM 
Earnings on cash surrender value of BOLI  256   252   239   2   7 
Other noninterest income  108   558   1,018   (81)  (89)
Total noninterest income  4,610   5,967   5,456   (23)  (16)
NONINTEREST EXPENSE                    
Salaries and benefits  14,172   13,985   12,742   1   11 
Operations  3,175   3,827   3,326   (17)  (5)
Occupancy  1,821   1,662   1,708   10   7 
Data processing  2,252   2,156   1,760   4   28 
Gain on sale of OREO  —   —   (148)  —   (100)
Loan costs  781   666   497   17   57 
Professional and board fees  1,038   1,223   583   (15)  78 
FDIC insurance  490   533   660   (8)  (26)
Marketing and advertising  329   377   277   (13)  19 
Amortization of core deposit intangible  876   897   980   (2)  (11)
(Recovery) impairment of servicing rights  (583)  506   48   NM   NM 
Total noninterest expense  24,351   25,832   22,433   (6)  9 
INCOME BEFORE PROVISION (BENEFIT) FOR INCOME TAXES  9,851   9,866   12,076   —   (18)
PROVISION (BENEFIT) FOR INCOME TAXES  2,469   (420)  2,304   NM   7 
NET INCOME $7,382  $10,286  $9,772   (28)  (24)
Basic earnings per share $0.94  $1.32  $1.25   (29)  (25)
Diluted earnings per share $0.92  $1.29  $1.23   (29)  (25)
                     


 
FS BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share amounts) (Unaudited)
       
  Year Ended  Year 
  December 31,  December 31,  Over Year 
  2024  2023  % Change 
INTEREST INCOME            
Loans receivable, including fees $170,857  $154,945   10 
Interest and dividends on investment securities, cash and cash equivalents, and certificates of deposit at other financial institutions  13,980   12,247   14 
Total interest and dividend income  184,837   167,192   11 
INTEREST EXPENSE            
Deposits  53,163   36,751   45 
Borrowings  6,627   5,196   28 
Subordinated note  1,942   1,942   — 
Total interest expense  61,732   43,889   41 
NET INTEREST INCOME  123,105   123,303   — 
PROVISION FOR CREDIT LOSSES  5,511   4,774   15 
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES  117,594   118,529   (1)
NONINTEREST INCOME            
Service charges and fee income  10,026   11,138   (10)
Gain on sale of loans  8,557   6,711   28 
Gain on sale of MSRs  8,356   —   NM 
Loss on sale of investment securities, net  (7,836)  —   NM 
Earnings on cash surrender value of BOLI  990   920   8 
Other noninterest income  1,463   1,721   (15)
Total noninterest income  21,556   20,490   5 
NONINTEREST EXPENSE            
Salaries and benefits  55,092   53,622   3 
Operations  13,529   13,070   4 
Occupancy  6,857   6,378   8 
Data processing  8,424   6,852   23 
Gain on sale of OREO  —   (148)  (100)
Loan costs  2,685   2,574   4 
Professional and board fees  4,072   2,584   58 
FDIC insurance  2,005   2,392   (16)
Marketing and advertising  1,310   1,349   (3)
Acquisition costs  —   1,562   (100)
Amortization of core deposit intangible  3,633   3,464   5 
(Impairment) recovery of servicing rights  (38)  48   NM 
Total noninterest expense  97,569   93,747   4 
INCOME BEFORE PROVISION FOR INCOME TAXES  41,581   45,272   (8)
PROVISION FOR INCOME TAXES  6,557   9,219   (29)
NET INCOME $35,024  $36,053   (3)
Basic earnings per share $4.48  $4.63   (3)
Diluted earnings per share $4.36  $4.56   (4)
             

KEY FINANCIAL RATIOS AND DATA (Unaudited)

  At or For the Three Months Ended 
  December 31,  September 30,  December 31, 
PERFORMANCE RATIOS: 2024  2024  2023 
Return on assets (ratio of net income to average total assets)(1) 0.98% 1.38% 1.32%
Return on equity (ratio of net income to average total stockholders' equity)(1) 9.88  14.08  15.01 
Yield on average interest-earning assets(1) 6.51  6.56  6.19 
Average total cost of funds(1) 2.38  2.39  2.10 
Interest rate spread information – average during period 4.13  4.17  4.09 
Net interest margin(1) 4.31  4.35  4.24 
Operating expense to average total assets(1) 3.24  3.47  3.02 
Average interest-earning assets to average interest-bearing liabilities(1) 143.27  144.28  143.45 
Efficiency ratio(2) 68.16  69.42  62.47 
Common equity ratio (ratio of stockholders' equity to total assets) 9.76  9.73  8.90 
Tangible common equity ratio(3) 9.25  9.17  8.25 


  For the Year Ended 
  December 31,  December 31, 
PERFORMANCE RATIOS: 2024  2023 
Return on assets (ratio of net income to average total assets) 1.18% 1.27%
Return on equity (ratio of net income to average total stockholders' equity) 12.22  14.36 
Yield on average interest-earning assets 6.46  6.07 
Average total cost of funds 2.43  1.72 
Interest rate spread information – average during period 4.03  4.36 
Net interest margin 4.30  4.48 
Operating expense to average total assets 3.29  3.30 
Average interest-earning assets to average interest-bearing liabilities 143.92  145.50 
Efficiency ratio(2) 67.45  65.20 


  December 31,  September 30,  December 31, 
ASSET QUALITY RATIOS AND DATA: 2024  2024  2023 
Nonperforming assets to total assets at end of period(4) 0.45% 0.36% 0.37%
Nonperforming loans to total gross loans (excluding loans HFS)(5) 0.54  0.43  0.45 
Allowance for credit losses – loans to nonperforming loans(5) 234.55  290.07  288.11 
Allowance for credit losses – loans to total gross loans (excluding loans HFS) 1.26  1.25  1.30 


  At or For the Three Months Ended  
  December 31,   September 30,   December 31,  
PER COMMON SHARE DATA: 2024   2024   2023  
Basic earnings per share $0.94   $1.32   $1.25  
Diluted earnings per share $0.92   $1.29   $1.23  
Weighted average basic shares outstanding  7,723,250    7,676,102    7,696,429  
Weighted average diluted shares outstanding  7,897,099    7,854,389    7,795,383  
Common shares outstanding at end of period  7,729,951 (6)  7,713,359 (7)  7,698,401 (8)
Book value per share using common shares outstanding $38.26   $37.45   $34.36  
Tangible book value per share using common shares outstanding(9) $36.02   $35.10   $31.64  

 ____________________________

(1) Annualized.
(2) Total noninterest expense as a percentage of net interest income and total noninterest income.
(3) Tangible common equity ratio excludes intangible assets.  This ratio represents a non-GAAP financial measure.  See “Non-GAAP Financial Measures” below.
(4) Nonperforming assets consist of nonperforming loans (which include nonaccruing loans and accruing loans 90 days or more past due), foreclosed real estate and other repossessed assets.
(5) Nonperforming loans consist of nonaccruing loans and accruing loans 90 days or more past due.
(6) Common shares were calculated using shares outstanding of 7,833,014 at December 31, 2024, less 103,063 unvested restricted stock shares.
(7) Common shares were calculated using shares outstanding of 7,817,172 at September 30, 2024, less 103,813 unvested restricted stock shares.
(8) Common shares were calculated using shares outstanding of 7,800,545 at December 31, 2023, less 102,144 unvested restricted stock shares.
(9) Tangible book value per share using outstanding common shares excludes intangible assets. This ratio represents a non-GAAP financial measure. See “Non-GAAP Financial Measures” below.
   


(Dollars in thousands) For the Three Months Ended December 31,  For the Year Ended December 31,  Linked Qtr.  Prior Year Qtr. 
Average Balances 2024  2023  2024  2023  $ Change  $ Change 
Assets                        
Loans receivable, net(1) $2,533,664  $2,448,946  $2,511,553  $2,384,577  $84,718  $126,976 
Securities available-for-sale, at amortized cost  265,483   321,735   282,684   288,152   (56,252)  (5,468)
Securities held-to-maturity  8,500   8,500   8,500   8,500   -   - 
Interest-bearing deposits and certificates of deposit at other financial institutions  53,286   66,769   50,741   67,063   (13,483)  (16,322)
FHLB stock, at cost  10,300   3,403   7,579   4,740   6,897   2,839 
Total interest-earning assets  2,871,233   2,849,353   2,861,057   2,753,032   21,880   108,025 
Noninterest-earning assets  119,478   94,012   103,474   90,216   25,466   13,258 
Total assets $2,990,711  $2,943,365  $2,964,531  $2,843,248  $47,346  $121,283 
Liabilities                        
Interest-bearing deposit accounts $1,772,887  $1,817,369  $1,784,443  $1,732,342  $(44,482) $52,101 
Borrowings  181,599   119,451   153,926   110,328   62,148   43,598 
Subordinated notes  49,584   49,517   49,559   49,492   67   67 
Total interest-bearing liabilities  2,004,070   1,986,337   1,987,928   1,892,162   17,733   95,766 
Noninterest-bearing deposit accounts  652,564   659,080   549,405   662,998   (6,516)  (113,593)
Other noninterest-bearing liabilities  36,722   39,651   140,648   36,992   (2,929)  103,656 
Total liabilities $2,693,356  $2,685,068  $2,677,981  $2,592,152  $8,288  $85,829 

 ____________________________

(1) Includes loans HFS.
   

Non-GAAP Financial Measures:

In addition to financial results presented in accordance with generally accepted accounting principles utilized in the United States (“GAAP”), this earnings release presents non-GAAP financial measures that include tangible book value per share and tangible common equity ratio.  Management believes that providing the Company’s tangible book value per share and tangible common equity ratio is consistent with the capital treatment utilized by the investment community, which excludes intangible assets from the calculation of risk-based capital ratios and facilitates comparison of the quality and composition of the Company's capital over time and to its competitors.  Where applicable, the Company has also presented comparable GAAP information.

These non-GAAP financial measures have inherent limitations, are not required to be uniformly applied, and are not audited. They should not be considered in isolation or as a substitute for total stockholders' equity or operating results determined in accordance with GAAP.  These non-GAAP measures may not be comparable to similarly titled measures reported by other companies.

Reconciliation of the GAAP book value per share and common equity ratio and the non-GAAP tangible book value per share and tangible common equity ratio is presented below.

(Dollars in thousands, except share and per share amounts)December 31,  September 30,  December 31, 
Tangible Book Value Per Share:2024  2024  2023 
Stockholders' equity (GAAP)$295,767   $288,902   $264,488  
Less: goodwill and core deposit intangible, net (17,302)   (18,178)   (20,935) 
Tangible common stockholders' equity (non-GAAP)$278,465   $270,724   $243,553  
            
Common shares outstanding at end of period 7,729,951 (1)  7,713,359 (2)  7,698,401 (3)
            
Book value per share (GAAP)$38.26   $37.45   $34.36  
Tangible book value per share (non-GAAP)$36.02   $35.10   $31.64  
            
Tangible Common Equity Ratio:           
Total assets (GAAP)$3,029,177   $2,970,208   $2,972,669  
Less: goodwill and core deposit intangible assets (17,302)   (18,178)   (20,935) 
Tangible assets (non-GAAP)$3,011,875   $2,952,030   $2,951,734  
            
Common equity ratio (GAAP) 9.76 %  9.73 %  8.90 %
Tangible common equity ratio (non-GAAP) 9.25    9.17    8.25  

_______________________

(1) Common shares were calculated using shares outstanding of 7,833,014 at December 31, 2024, less 103,063 unvested restricted stock shares.
(2) Common shares were calculated using shares outstanding of 7,817,172 at September 30, 2024, less 103,813 unvested restricted stock shares.
(3) Common shares were calculated using shares outstanding of 7,800,545 at December 31, 2024, less 102,144 unvested restricted stock shares.
   

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


FAQ

What was FSBW's Q4 2024 earnings per share?

FSBW reported earnings of $0.92 per diluted share for Q4 2024.

How much is FSBW's new quarterly dividend payment?

FSBW increased its quarterly dividend by $0.01 to $0.28 per share, payable on February 20, 2025.

What was FSBW's total asset value at the end of 2024?

FSBW's total assets reached $3.03 billion at December 31, 2024.

How much did FSBW's tangible book value per share grow in 2024?

FSBW's tangible book value per share grew 13.8% year-over-year to $36.02 at December 31, 2024.

What was FSBW's net interest margin in Q4 2024?

FSBW's net interest margin was 4.31% for the fourth quarter of 2024.

Stock FSBW logo
FS Bancorp, Inc.

NASDAQ:FSBW

FSBW Rankings

#3505 Ranked by Market Cap
#1141 Ranked by Dividends

FSBW Latest News

Nov 15, 2024
FS Bancorp, Inc. Authorizes Additional Share Repurchases
Oct 22, 2024
FS Bancorp, Inc. Reports Third Quarter Net Income of $10.3 Million or $1.29 Per Diluted Share and the Forty-Seventh Consecutive Quarterly Cash Dividend
Oct 1, 2024
FS Bancorp, Inc. Appoints Terri L. Degner to Board of Directors
Jul 23, 2024
FS Bancorp, Inc. Reports Second Quarter Net Income of $9.0 Million or $1.13 Per Diluted Share and Previously Announced Share Repurchase Plan and 3.8% Increase in its Quarterly Dividend
Jul 19, 2024
FS Bancorp, Inc. and 1st Security Bank Announces the Promotion of Matthew D. Mullet to President

FSBW Stock Data

326.64M
6.56M
15.76%
70.03%
0.54%
Banks - Regional
Savings Institutions, Not Federally Chartered
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United States of America
MOUNTLAKE TERRACE