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
FS Bancorp, holding company for 1st Security Bank of Washington, reported Q3 2024 net income of $10.3 million or $1.29 per diluted share, up from $9.0 million or $1.13 per diluted share in Q3 2023. For the nine months ending September 30, 2024, net income was $27.6 million or $3.45 per diluted share, compared to $26.3 million or $3.33 per diluted share for the same period in 2023.
Total deposits rose by $44.5 million to $2.43 billion, while borrowings decreased by $18.1 million to $163.8 million. The company's net interest margin increased to 4.35%. The Board approved a $0.27 per share cash dividend, payable on November 21, 2024, to shareholders of record as of November 7, 2024.
FS Bancorp repurchased 97,000 shares at an average price of $43.58 per share. The book value per share increased to $37.45, and the tangible book value per share rose to $35.10. The company reported a tax benefit of $420,000 due to energy tax credits.
FS Bancorp, la società di holding per 1st Security Bank of Washington, ha riportato un utile netto per il terzo trimestre 2024 di 10,3 milioni di dollari o 1,29 dollari per azione diluita, in aumento rispetto ai 9,0 milioni di dollari o 1,13 dollari per azione diluita nel terzo trimestre 2023. Nei nove mesi terminanti il 30 settembre 2024, l'utile netto è stato di 27,6 milioni di dollari o 3,45 dollari per azione diluita, rispetto ai 26,3 milioni di dollari o 3,33 dollari per azione diluita nello stesso periodo del 2023.
I depositi totali sono aumentati di 44,5 milioni di dollari, raggiungendo i 2,43 miliardi di dollari, mentre i prestiti sono diminuiti di 18,1 milioni di dollari, arrivando a 163,8 milioni di dollari. Il margine d'interesse netto della società è aumentato al 4,35%. Il Consiglio ha approvato un dividendo in contante di 0,27 dollari per azione, che sarà pagato il 21 novembre 2024 agli azionisti registrati al 7 novembre 2024.
FS Bancorp ha riacquistato 97.000 azioni a un prezzo medio di 43,58 dollari per azione. Il valore contabile per azione è aumentato a 37,45 dollari e il valore contabile tangibile per azione è salito a 35,10 dollari. La società ha riportato un beneficio fiscale di 420.000 dollari a causa dei crediti d'imposta energetici.
FS Bancorp, empresa matriz de 1st Security Bank of Washington, reportó un ingreso neto del tercer trimestre de 2024 de 10,3 millones de dólares o 1,29 dólares por acción diluida, un aumento con respecto a los 9,0 millones de dólares o 1,13 dólares por acción diluida en el tercer trimestre de 2023. Durante los nueve meses que terminaron el 30 de septiembre de 2024, los ingresos netos fueron de 27,6 millones de dólares o 3,45 dólares por acción diluida, en comparación con 26,3 millones de dólares o 3,33 dólares por acción diluida en el mismo período de 2023.
Los depósitos totales aumentaron en 44,5 millones de dólares, alcanzando los 2,43 mil millones de dólares, mientras que los préstamos disminuyeron en 18,1 millones de dólares hasta 163,8 millones de dólares. El margen de interés neto de la empresa aumentó al 4,35%. La Junta aprobó un dividendo en efectivo de 0,27 dólares por acción, pagadero el 21 de noviembre de 2024, a los accionistas registrados al 7 de noviembre de 2024.
FS Bancorp recompró 97,000 acciones a un precio promedio de 43,58 dólares por acción. El valor contable por acción aumentó a 37,45 dólares y el valor contable tangible por acción subió a 35,10 dólares. La empresa reportó un beneficio fiscal de 420,000 dólares debido a créditos fiscales por energía.
FS Bancorp, 1st Security Bank of Washington의 모회사, 2024년 3분기 순이익이 1,030만 달러 또는 희석 주당 1.29달러로 보고되었으며, 이는 2023년 3분기의 900만 달러 또는 희석 주당 1.13달러에서 증가한 수치입니다. 2024년 9월 30일로 종료된 9개월 동안 순이익은 2,760만 달러 또는 희석 주당 3.45달러로, 2023년 같은 기간의 2,630만 달러 또는 3.33달러와 비교됩니다.
총 예금은 4,450만 달러 증가하여 24억 3천만 달러에 이르렀고, 차입금은 1,810만 달러 감소하여 1억 6,380만 달러가 되었습니다. 회사의 순이자 마진은 4.35%로 증가했습니다. 이사회는 주당 0.27달러 현금 배당금을 승인하였으며, 2024년 11월 21일에 2024년 11월 7일 기준 주주에게 지급될 예정입니다.
FS Bancorp는 주당 평균 43.58달러에 97,000주를 재매입했습니다. 주당 장부 가치는 37.45달러로 증가하였고, 주당 유 Tangible 장부 가치는 35.10달러로 상승했습니다. 회사는 에너지 세금 크레딧으로 인해 420,000달러의 세금 혜택을 보고했습니다.
FS Bancorp, la société de portefeuille de 1st Security Bank of Washington, a rapporté un bénéfice net de 3ème trimestre 2024 de 10,3 millions de dollars ou 1,29 dollar par action diluée, en hausse par rapport à 9,0 millions de dollars ou 1,13 dollar par action diluée au 3ème trimestre 2023. Pour les neuf mois se terminant le 30 septembre 2024, le bénéfice net s'élevait à 27,6 millions de dollars ou 3,45 dollars par action diluée, comparé à 26,3 millions de dollars ou 3,33 dollars par action diluée pour la même période en 2023.
Les dépôts totaux ont augmenté de 44,5 millions de dollars pour atteindre 2,43 milliards de dollars, tandis que les emprunts ont diminué de 18,1 millions de dollars pour s'établir à 163,8 millions de dollars. La marge d'intérêt nette de l'entreprise a augmenté pour atteindre 4,35 %. Le Conseil a approuvé un dividende en espèces de 0,27 dollar par action, payable le 21 novembre 2024, aux actionnaires inscrits au 7 novembre 2024.
FS Bancorp a racheté 97 000 actions à un prix moyen de 43,58 dollars par action. La valeur comptable par action a augmenté à 37,45 dollars et la valeur comptable tangible par action a atteint 35,10 dollars. L'entreprise a signalé un avantage fiscal de 420 000 dollars en raison des crédits d'impôt sur l'énergie.
FS Bancorp, die Muttergesellschaft der 1st Security Bank of Washington, berichtete für das 3. Quartal 2024 einen Nettogewinn von 10,3 Millionen Dollar oder 1,29 Dollar pro verwässerter Aktie, ein Anstieg von 9,0 Millionen Dollar oder 1,13 Dollar pro verwässerter Aktie im 3. Quartal 2023. Für die neun Monate bis zum 30. September 2024 betrug der Nettogewinn 27,6 Millionen Dollar oder 3,45 Dollar pro verwässerter Aktie, im Vergleich zu 26,3 Millionen Dollar oder 3,33 Dollar pro verwässerter Aktie im gleichen Zeitraum 2023.
Die Gesamteinlagen stiegen um 44,5 Millionen Dollar auf 2,43 Milliarden Dollar, während die Kredite um 18,1 Millionen Dollar auf 163,8 Millionen Dollar sanken. Die Nettomarge der Zinsen des Unternehmens stieg auf 4,35%. Der Vorstand genehmigte eine Bar-Dividende von 0,27 Dollar pro Aktie, die am 21. November 2024 an die zum 7. November 2024 registrierten Aktionäre gezahlt wird.
FS Bancorp kaufte 97.000 Aktien zu einem durchschnittlichen Preis von 43,58 Dollar pro Aktie zurück. Der Buchwert pro Aktie stieg auf 37,45 Dollar, und der materielle Buchwert pro Aktie erhöhte sich auf 35,10 Dollar. Das Unternehmen berichtete über einen Steuervergünstigungsbetrag von 420.000 Dollar aufgrund von Steuerkrediten für Energie.
- Q3 2024 net income increased to $10.3 million from $9.0 million YoY.
- Net interest margin rose to 4.35%.
- Total deposits increased by $44.5 million.
- Board declared a $0.27 per share cash dividend.
- Repurchased 97,000 shares at $43.58 per share.
- Book value per share increased to $37.45.
- Consumer loans decreased by $9.3 million.
- Noninterest expense increased to $25.8 million from $23.6 million YoY.
- Decrease in noninterest-bearing deposits from $670.2 million to $657.8 million YoY.
MOUNTLAKE TERRACE, Wash., Oct. 22, 2024 (GLOBE NEWSWIRE) -- FS Bancorp, Inc. (NASDAQ: FSBW) (the “Company”), the holding company for 1st Security Bank of Washington (the “Bank”) today reported 2024 third quarter net income of
“Deposit growth experienced in the third quarter of 2024 was a direct result of the Bank-wide focus and strategic planning objective to fund loan growth with core deposits,” stated Joe Adams, CEO. “We are also pleased that our Board of Directors approved our forty-seventh consecutive quarterly cash dividend of
2024 Third Quarter Highlights
- Net income was
$10.3 million for the third quarter of 2024, compared to$9.0 million for both the previous quarter and the comparable quarter one year ago; - Net interest margin (“NIM”) increased to
4.35% for the third quarter of 2024, compared to4.29% in the previous quarter, and4.34% for the comparable quarter one year ago; - Total deposits increased
$44.5 million , or1.9% , to$2.43 billion at September 30, 2024, primarily due to an increase in noninterest-bearing checking of$34.4 million and certificates of deposit ("CDs") of$15.0 million , compared to$2.38 billion at June 30, 2024 and decreased$27.1 million , or1.1% , from$2.45 billion at September 30, 2023. Noninterest-bearing deposits were$657.8 million at September 30, 2024,$623.3 million at June 30, 2024, and$670.2 million at September 30, 2023; - Borrowings decreased
$18.1 million , or9.9% to$163.8 million at September 30, 2024, compared to$181.9 million at June 30, 2024, as a result of the Company's strategic planning objective to fund loan growth with core deposits; - Loans receivable, net was unchanged at
$2.46 billion at September 30, 2024, and June 30, 2024, and increased$88.1 million , or3.7% , from$2.38 billion at September 30, 2023; - Consumer loans, of which
87.3% are home improvement loans, decreased$9.3 million , or1.4% , to$632.4 million at September 30, 2024, compared to$641.7 million in the previous quarter, and decreased$7.7 million , or1.2% , from$640.1 million in the comparable quarter one year ago. Yields on consumer loans increased 18 basis points to7.59% from7.41% at the end of the second quarter 2024. During the three months ended September 30, 2024, consumer loan originations included80.4% of home improvement loans originated with a Fair Isaac Corporation (“FICO”) score above 720 and83.9% of home improvement loans with a UCC-2 security filing; - For the third quarter of 2024, there was a tax benefit of
$420,000 , compared to tax provisions of$2.4 million in the prior quarter, and$2.5 million for the same quarter last year. The tax benefit for the third quarter of 2024 was due to$28.4 million of energy tax credits purchased during the current quarter related to the Inflation Reduction Act of 2022; - Repurchased 97,000 shares of the Company's common stock in the third quarter of 2024 at an average price of
$43.58 per share with$1.4 million remaining for future purchases under the share repurchase plan that was approved in July 2024; - Book value per share increased
$0.30 t o$37.45 at September 30, 2024, compared to$37.15 at June 30, 2024, and increased$4.87 from$32.58 at September 30, 2023. Tangible book value per share (non-GAAP financial measure) increased$0.44 t o$35.10 at September 30, 2024, compared to$34.66 at June 30, 2024, and increased$5.37 from$29.73 at September 30, 2023. See, “Non-GAAP Financial Measures.” - Segment reporting in the third quarter of 2024 reflected net income of
$9.3 million for the Commercial and Consumer Banking segment and$1.0 million for the Home Lending segment, compared to net income of$8.0 million and$1.0 million in the prior quarter, and net income of$8.8 million and$166,000 in the third quarter of 2023, respectively; - The percentage of available unencumbered cash and secured borrowing capacity at the Federal Home Loan Bank (“FHLB”) and the Federal Reserve Bank to uninsured deposits was
182% at September 30, 2024, compared to191% in the prior quarter. The average deposit size per FDIC-insured account at the Bank was$33,000 and$32,000 for September 30, 2024 and June 30, 2024, respectively; and - Regulatory capital ratios at the Bank were
14.2% for total risk-based capital and11.2% for Tier 1 leverage capital at September 30, 2024, compared to13.9% for total risk-based capital and10.9% for Tier 1 leverage capital at June 30, 2024.
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 Company reflected the sale of servicing rights in the first quarter of 2024 as a gain to the Commercial and Consumer Banking segment to offset the realized loss on sale of investment securities and will allocate the gain on a straight-line basis over four years as intercompany income from the Commercial and Consumer Banking segment to the Home Lending segment.
The tables below provide a summary of segment reporting at or for the three and nine months ended September 30, 2024 and 2023 (dollars in thousands):
| At or For the Three Months Ended September 30, 2024 | ||||||||||||
| Condensed income statement: | Commercial and Consumer Banking | Home Lending | Total | |||||||||
| Net interest income (1) | $ | 28,612 | $ | 2,632 | $ | 31,244 | ||||||
| Provision for credit losses | (1,331 | ) | (182 | ) | (1,513 | ) | ||||||
| Noninterest income (2) | 2,257 | 3,710 | 5,967 | |||||||||
| Noninterest expense (3) | (20,199 | ) | (5,633 | ) | (25,832 | ) | ||||||
| Income before (provision) benefit for income taxes | 9,339 | 527 | 9,866 | |||||||||
| (Provision) benefit for income taxes | (71 | ) | 491 | 420 | ||||||||
| Net income | $ | 9,268 | $ | 1,018 | $ | 10,286 | ||||||
| Total average assets for period ended | $ | 2,347,855 | $ | 612,935 | $ | 2,960,790 | ||||||
| Full-time employees ("FTEs") | 442 | 117 | 559 | |||||||||
| At or For the Three Months Ended September 30, 2023 | ||||||||||||
| Condensed income statement: | Commercial and Consumer Banking | Home Lending | Total | |||||||||
| Net interest income (1) | $ | 27,563 | $ | 3,071 | $ | 30,634 | ||||||
| Provision for credit losses | (437 | ) | (111 | ) | (548 | ) | ||||||
| Noninterest income (2) | 2,680 | 2,302 | 4,982 | |||||||||
| Noninterest expense (3) | (18,539 | ) | (5,047 | ) | (23,586 | ) | ||||||
| Income before provision for income taxes | 11,267 | 215 | 11,482 | |||||||||
| Provision for income taxes | (2,480 | ) | (49 | ) | (2,529 | ) | ||||||
| Net income | $ | 8,787 | $ | 166 | $ | 8,953 | ||||||
| Total average assets for period ended | $ | 2,361,014 | $ | 540,372 | $ | 2,901,386 | ||||||
| FTEs | 434 | 128 | 562 | |||||||||
| At or For the Nine Months Ended September 30, 2024 | ||||||||||||
| Condensed income statement: | Commercial and Consumer Banking | Home Lending | Total | |||||||||
| Net interest income (1) | $ | 84,749 | $ | 7,242 | $ | 91,991 | ||||||
| Provision for credit losses | (3,796 | ) | (193 | ) | (3,989 | ) | ||||||
| Noninterest income (2) | 6,919 | 10,027 | 16,946 | |||||||||
| Noninterest expense (3) | (58,250 | ) | (14,968 | ) | (73,218 | ) | ||||||
| Income before (provision) benefit for income taxes | 29,622 | 2,108 | 31,730 | |||||||||
| (Provision) benefit for income taxes | (4,253 | ) | 165 | (4,088 | ) | |||||||
| Net income | $ | 25,369 | $ | 2,273 | $ | 27,642 | ||||||
| Total average assets for period ended | $ | 2,369,740 | $ | 586,001 | $ | 2,955,741 | ||||||
| FTEs | 442 | 117 | 559 | |||||||||
| At or For the Nine Months Ended September 30, 2023 | ||||||||||||
| Condensed income statement: | Commercial and Consumer Banking | Home Lending | Total | |||||||||
| Net interest income (1) | $ | 83,332 | $ | 9,516 | $ | 92,848 | ||||||
| Provision for credit losses | (2,555 | ) | (817 | ) | (3,372 | ) | ||||||
| Noninterest income (2) | 7,766 | 7,268 | 15,034 | |||||||||
| Noninterest expense (3) | (56,099 | ) | (15,215 | ) | (71,314 | ) | ||||||
| Income before provision for income taxes | 32,444 | 752 | 33,196 | |||||||||
| Provision for income taxes | (6,758 | ) | (157 | ) | (6,915 | ) | ||||||
| Net income | $ | 25,686 | $ | 595 | $ | 26,281 | ||||||
| Total average assets for period ended | $ | 2,288,996 | $ | 520,513 | $ | 2,809,509 | ||||||
| FTEs | 434 | 128 | 562 | |||||||||
__________________________
| (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 nine months ended September 30, 2024, the Company recorded net increases in fair value of | |
| (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 nine months ended September 30, 2024 and 2023, the Home Lending segment included allocated overhead expenses of | |
Asset Summary
Total assets increased
| LOAN PORTFOLIO | ||||||||||||||||||||||||
| (Dollars in thousands) | September 30, 2024 | June 30, 2024 | September 30, 2023 | |||||||||||||||||||||
| Amount | Percent | Amount | Percent | Amount | Percent | |||||||||||||||||||
| REAL ESTATE LOANS | ||||||||||||||||||||||||
| Commercial | $ | 352,933 | 14.1 | % | $ | 359,404 | 14.4 | % | $ | 364,673 | 15.2 | % | ||||||||||||
| Construction and development | 292,366 | 11.7 | 274,209 | 11.0 | 289,873 | 12.0 | ||||||||||||||||||
| Home equity | 75,063 | 3.0 | 73,749 | 3.0 | 67,103 | 2.8 | ||||||||||||||||||
| One-to-four-family (excludes HFS) | 591,666 | 23.7 | 588,966 | 23.7 | 540,670 | 22.5 | ||||||||||||||||||
| Multi-family | 238,462 | 9.6 | 239,675 | 9.6 | 243,661 | 10.1 | ||||||||||||||||||
| Total real estate loans | 1,550,490 | 62.1 | 1,536,003 | 61.7 | 1,505,980 | 62.6 | ||||||||||||||||||
| CONSUMER LOANS | ||||||||||||||||||||||||
| Indirect home improvement | 552,226 | 22.2 | 563,621 | 22.7 | 562,650 | 23.4 | ||||||||||||||||||
| Marine | 76,845 | 3.1 | 74,627 | 3.0 | 73,887 | 3.1 | ||||||||||||||||||
| Other consumer | 3,346 | 0.1 | 3,440 | 0.1 | 3,547 | 0.1 | ||||||||||||||||||
| Total consumer loans | 632,417 | 25.4 | 641,688 | 25.8 | 640,084 | 26.6 | ||||||||||||||||||
| COMMERCIAL BUSINESS LOANS | ||||||||||||||||||||||||
| Commercial and industrial ("C&I") | 296,773 | 11.9 | 285,183 | 11.5 | 236,520 | 9.8 | ||||||||||||||||||
| Warehouse lending | 15,249 | 0.6 | 25,548 | 1.0 | 23,489 | 1.0 | ||||||||||||||||||
| Total commercial business loans | 312,022 | 12.5 | 310,731 | 12.5 | 260,009 | 10.8 | ||||||||||||||||||
| Total loans receivable, gross | 2,494,929 | 100.0 | % | 2,488,422 | 100.0 | % | 2,406,073 | 100.0 | % | |||||||||||||||
| Allowance for credit losses on loans | (31,232 | ) | (31,238 | ) | (30,501 | ) | ||||||||||||||||||
| Total loans receivable, net | $ | 2,463,697 | $ | 2,457,184 | $ | 2,375,572 | ||||||||||||||||||
Loans receivable, net was unchanged at
The composition of CRE loans at the dates indicated were as follows:
| (Dollars in thousands) | ||||||||||||
| September 30, 2024 | June 30, 2024 | September 30, 2023 | ||||||||||
| CRE by Type: | Amount | Amount | Amount | |||||||||
| Agriculture | $ | 3,610 | $ | 3,639 | $ | 3,926 | ||||||
| CRE Non-owner occupied: | ||||||||||||
| Office | 40,672 | 41,381 | 41,878 | |||||||||
| Retail | 36,070 | 37,507 | 37,865 | |||||||||
| Hospitality/restaurant | 27,743 | 28,314 | 25,252 | |||||||||
| Self storage | 19,130 | 19,141 | 21,381 | |||||||||
| Mixed use | 17,881 | 18,062 | 16,768 | |||||||||
| Industrial | 15,402 | 17,163 | 17,431 | |||||||||
| Senior housing/assisted living | 7,621 | 7,675 | 8,556 | |||||||||
| Other (1) | 6,684 | 6,847 | 7,814 | |||||||||
| Land | 2,523 | 3,021 | 6,381 | |||||||||
| Education/worship | 2,545 | 2,571 | 2,645 | |||||||||
| Total CRE non-owner occupied | 176,271 | 181,682 | 185,971 | |||||||||
| CRE owner occupied: | ||||||||||||
| Industrial | 63,577 | 63,969 | 63,307 | |||||||||
| Office | 42,156 | 41,978 | 41,663 | |||||||||
| Retail | 19,968 | 20,885 | 23,228 | |||||||||
| Hospitality/restaurant | 10,528 | 10,800 | 14,153 | |||||||||
| Other (2) | 8,116 | 8,354 | 8,850 | |||||||||
| Car wash | 9,575 | 9,607 | 7,818 | |||||||||
| Automobile related | 8,874 | 8,200 | 8,193 | |||||||||
| Education/worship | 4,609 | 4,610 | 4,617 | |||||||||
| Mixed use | 5,649 | 5,680 | 2,947 | |||||||||
| Total CRE owner occupied | 173,052 | 174,083 | 174,776 | |||||||||
| Total | $ | 352,933 | $ | 359,404 | $ | 364,673 | ||||||
__________________________________
| (1) | Primarily includes loans secured by mobile home parks totaling | |
| (2) | Primarily includes loans secured by gas stations totaling | |
The following tables 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 | |||||||||||||||||||||||||||
| Dec 31, | Mar 31, | Jun 30, | Sep 30, | Dec 31, | Mar 31, | Jun 30, | Sep 30, | Average | |||||||||||||||||||||
| CRE by type: | 2024 | 2025 | 2025 | 2025 | 2025 | 2026 | 2026 | 2026 | Total | Rate | |||||||||||||||||||
| Agriculture | $ | 926 | $ | — | $ | 424 | $ | — | $ | 311 | $ | 181 | $ | 259 | $ | 306 | $ | 2,407 | |||||||||||
| Apartment | 9,990 | 9,817 | 5,271 | 1,829 | 18,671 | 1,908 | 14,485 | 9,797 | 71,768 | ||||||||||||||||||||
| Auto related | — | — | 2,091 | — | — | — | — | — | 2,091 | ||||||||||||||||||||
| Hotel / hospitality | — | 579 | 1,212 | 1,336 | — | 118 | 1,307 | — | 4,552 | ||||||||||||||||||||
| Industrial | 8,337 | 897 | 588 | — | 10,361 | 584 | 173 | 1,636 | 22,576 | ||||||||||||||||||||
| Mixed use | 795 | 1,750 | 3,490 | 250 | 318 | — | — | — | 6,603 | ||||||||||||||||||||
| Office | 4,702 | 11,171 | — | 4,214 | 988 | 528 | 1,666 | 566 | 23,835 | ||||||||||||||||||||
| Other | 1,227 | — | 116 | 1,168 | 246 | 901 | — | 2,545 | 6,203 | ||||||||||||||||||||
| Retail | 1,266 | 2,006 | — | 83 | — | 465 | 3,285 | — | 7,105 | ||||||||||||||||||||
| Senior housing and assisted living | — | — | — | — | — | 2,186 | — | — | 2,186 | ||||||||||||||||||||
| Total | $ | 27,243 | $ | 26,220 | $ | 13,192 | $ | 8,880 | $ | 30,895 | $ | 6,871 | $ | 21,175 | $ | 14,850 | $ | 149,326 | |||||||||||
A breakdown of construction loans at the dates indicated were as follows:
| (Dollars in thousands) | ||||||||||||||||
| September 30, 2024 | June 30, 2024 | |||||||||||||||
| Construction Types: | Amount | Percent | Amount | Percent | ||||||||||||
| Commercial construction ─ retail | $ | 8,710 | 3.0 | % | $ | 8,698 | 3.2 | % | ||||||||
| Commercial construction ─ office | 4,737 | 1.6 | 4,737 | 1.7 | ||||||||||||
| Commercial construction ─ self storage | 10,408 | 3.5 | 10,000 | 3.6 | ||||||||||||
| Commercial construction ─ car wash | 7,807 | 2.7 | 7,807 | 2.8 | ||||||||||||
| Multi-family | 30,931 | 10.6 | 30,960 | 11.3 | ||||||||||||
| Custom construction ─ single family residential and single family manufactured residential | 43,528 | 14.9 | 46,107 | 16.8 | ||||||||||||
| Custom construction ─ land, lot and acquisition and development | 8,220 | 2.8 | 7,310 | 2.7 | ||||||||||||
| Speculative residential construction ─ vertical | 145,549 | 49.8 | 131,293 | 47.9 | ||||||||||||
| Speculative residential construction ─ land, lot and acquisition and development | 32,476 | 11.1 | 27,297 | 10.0 | ||||||||||||
| Total | $ | 292,366 | 100.0 | % | $ | 274,209 | 100.0 | % | ||||||||
| (Dollars in thousands) | ||||||||||||||||
| September 30, 2024 | September 30, 2023 | |||||||||||||||
| Construction Types: | Amount | Percent | Amount | Percent | ||||||||||||
| Commercial construction ─ retail | $ | 8,710 | 3.0 | % | $ | 7,347 | 2.5 | % | ||||||||
| Commercial construction ─ office | 4,737 | 1.6 | 4,591 | 1.6 | ||||||||||||
| Commercial construction ─ self storage | 10,408 | 3.5 | 10,734 | 3.7 | ||||||||||||
| Commercial construction ─ car wash | 7,807 | 2.7 | 7,287 | 2.5 | ||||||||||||
| Multi-family | 30,931 | 10.6 | 52,913 | 18.3 | ||||||||||||
| Custom construction ─ single family residential and single family manufactured residential | 43,528 | 14.9 | 44,542 | 15.4 | ||||||||||||
| Custom construction ─ land, lot and acquisition and development | 8,220 | 2.8 | 7,012 | 2.4 | ||||||||||||
| Speculative residential construction ─ vertical | 145,549 | 49.8 | 124,244 | 42.8 | ||||||||||||
| Speculative residential construction ─ land, lot and acquisition and development | 32,476 | 11.1 | 31,203 | 10.8 | ||||||||||||
| Total | $ | 292,366 | 100.0 | % | $ | 289,873 | 100.0 | % | ||||||||
Originations of one-to-four-family loans to purchase and refinance a home for the periods indicated were as follows:
| (Dollars in thousands) | For the Three Months Ended | For the Three Months Ended | ||||||||||||||||||||||
| September 30, 2024 | June 30, 2024 | |||||||||||||||||||||||
| Amount | Percent | Amount | Percent | $ Change | % Change | |||||||||||||||||||
| Purchase | $ | 168,088 | 85.7 | % | $ | 193,715 | 92.3 | % | $ | (25,627 | ) | (13.2 | )% | |||||||||||
| Refinance | 28,001 | 14.3 | 16,173 | 7.7 | 11,828 | 73.1 | % | |||||||||||||||||
| Total | $ | 196,089 | 100.0 | % | $ | 209,888 | 100.0 | % | $ | (13,799 | ) | (6.5 | )% | |||||||||||
| (Dollars in thousands) | For the Three Months Ended September 30, | |||||||||||||||||||||||
| 2024 | 2023 | |||||||||||||||||||||||
| Amount | Percent | Amount | Percent | $ Change | % Change | |||||||||||||||||||
| Purchase | $ | 168,088 | 85.7 | % | $ | 139,345 | 92.1 | % | $ | 28,743 | 20.6 | % | ||||||||||||
| Refinance | 28,001 | 14.3 | 12,001 | 7.9 | 16,000 | 133.3 | % | |||||||||||||||||
| Total | $ | 196,089 | 100.0 | % | $ | 151,346 | 100.0 | % | $ | 44,743 | 29.6 | % | ||||||||||||
| (Dollars in thousands) | For the Nine Months Ended September 30, | |||||||||||||||||||||||
| 2024 | 2023 | |||||||||||||||||||||||
| Amount | Percent | Amount | Percent | $ Change | % Change | |||||||||||||||||||
| Purchase | $ | 497,705 | 88.8 | % | $ | 387,211 | 91.8 | % | $ | 110,494 | 28.5 | % | ||||||||||||
| Refinance | 62,546 | 11.2 | 34,635 | 8.2 | 27,911 | 80.6 | % | |||||||||||||||||
| Total | $ | 560,251 | 100.0 | % | $ | 421,846 | 100.0 | % | $ | 138,405 | 32.8 | % | ||||||||||||
During the quarter ended September 30, 2024, the Company sold
Liabilities and Equity Summary
Changes in deposits at the dates indicated were as follows:
| (Dollars in thousands) | ||||||||||||||||||||||||
| September 30, 2024 | June 30, 2024 | |||||||||||||||||||||||
| Transactional deposits: | Amount | Percent | Amount | Percent | $ Change | % Change | ||||||||||||||||||
| Noninterest-bearing checking | $ | 641,270 | 26.4 | % | $ | 613,137 | 25.7 | % | $ | 28,133 | 4.6 | % | ||||||||||||
| Interest-bearing checking (1) | 165,944 | 6.8 | 166,839 | 7.0 | (895 | ) | (0.5 | ) | ||||||||||||||||
| Escrow accounts related to mortgages serviced (2) | 16,483 | 0.7 | 10,212 | 0.4 | 6,271 | 61.4 | ||||||||||||||||||
| Subtotal | 823,697 | 33.9 | 790,188 | 33.1 | 33,509 | 4.2 | ||||||||||||||||||
| Savings | 151,364 | 6.2 | 151,398 | 6.4 | (34 | ) | (0.0 | ) | ||||||||||||||||
| Money market (3) | 340,049 | 14.0 | 343,995 | 14.4 | (3,946 | ) | (1.1 | ) | ||||||||||||||||
| Subtotal | 491,413 | 20.2 | 495,393 | 20.8 | (3,980 | ) | (0.8 | ) | ||||||||||||||||
| Certificates of deposit less than | 533,441 | 22.0 | 530,537 | 22.3 | 2,904 | 0.5 | ||||||||||||||||||
| Certificates of deposit of | 452,705 | 18.7 | 427,893 | 18.0 | 24,812 | 5.8 | ||||||||||||||||||
| Certificates of deposit greater than | 126,075 | 5.2 | 138,792 | 5.8 | (12,717 | ) | (9.2 | ) | ||||||||||||||||
| Subtotal | 1,112,221 | 45.9 | 1,097,222 | 46.1 | 14,999 | 1.4 | ||||||||||||||||||
| Total | $ | 2,427,331 | 100.0 | % | $ | 2,382,803 | 100.0 | % | $ | 44,528 | 1.9 | % | ||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||
| September 30, 2024 | September 30, 2023 | |||||||||||||||||||||||
| Transactional deposits: | Amount | Percent | Amount | Percent | $ Change | % Change | ||||||||||||||||||
| Noninterest-bearing checking | $ | 641,270 | 26.4 | % | $ | 643,670 | 26.2 | % | $ | (2,400 | ) | (0.4 | )% | |||||||||||
| Interest-bearing checking (1) | 165,944 | 6.8 | 219,468 | 8.9 | (53,524 | ) | (24.4 | ) | ||||||||||||||||
| Escrow accounts related to mortgages serviced (2) | 16,483 | 0.7 | 26,489 | 1.1 | (10,006 | ) | (37.8 | ) | ||||||||||||||||
| Subtotal | 823,697 | 33.9 | 889,627 | 36.2 | (65,930 | ) | (7.4 | ) | ||||||||||||||||
| Savings | 151,364 | 6.2 | 157,901 | 6.4 | (6,537 | ) | (4.1 | ) | ||||||||||||||||
| Money market (3) | 340,049 | 14.0 | 389,962 | 15.9 | (49,913 | ) | (12.8 | ) | ||||||||||||||||
| Subtotal | 491,413 | 20.2 | 547,863 | 22.3 | (56,450 | ) | (10.3 | ) | ||||||||||||||||
| Certificates of deposit less than | 533,441 | 22.0 | 527,032 | 21.5 | 6,409 | 1.2 | ||||||||||||||||||
| Certificates of deposit of | 452,705 | 18.7 | 406,545 | 16.6 | 46,160 | 11.4 | ||||||||||||||||||
| Certificates of deposit greater than | 126,075 | 5.2 | 83,377 | 3.4 | 42,698 | 51.2 | ||||||||||||||||||
| Subtotal | 1,112,221 | 45.9 | 1,016,954 | 41.5 | 95,267 | 9.4 | ||||||||||||||||||
| Total | $ | 2,427,331 | 100.0 | % | $ | 2,454,444 | 100.0 | % | $ | (27,113 | ) | (1.1 | )% | |||||||||||
__________________________________
| (1) | There were no brokered deposits at September 30, 2024 and June 30, 2024, compared to | |
| (2) | Noninterest-bearing accounts. | |
| (3) | Includes | |
| (4) | Includes | |
At September 30, 2024, CDs, which include retail and non-retail CDs, totaled
At September 30, 2024, the Bank had uninsured deposits of approximately
At September 30, 2024, borrowings decreased
Total stockholders’ equity increased
The Bank is considered well capitalized under the capital requirements established by the Federal Deposit Insurance Corporation (“FDIC”) with a total risk-based capital ratio of
The Company exceeded all regulatory capital requirements with a total risk-based capital ratio of
Credit Quality
The allowance for credit losses on loans (“ACLL”) was
Nonperforming loans decreased
Loans classified as substandard decreased
Operating Results
Net interest income increased
For the nine months ended September 30, 2024, net interest income decreased
NIM (annualized) increased one basis point to
The average total cost of funds, including noninterest-bearing checking, increased 47 basis points to
For the three and nine months ended September 30, 2024, the provision for credit losses on loans was
During the three months ended September 30, 2024, net charge-offs increased
Noninterest income increased
Noninterest expense increased
For the three months ended September 30, 2024, the Company recorded a benefit for income taxes of
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 decrease 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, changes in the interest rate environment, 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; 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 | |||||||||||||||||||
| September 30, | June 30, | September 30, | Quarter | Quarter | ||||||||||||||||
| 2024 | 2024 | 2023 | % Change | % Change | ||||||||||||||||
| ASSETS | ||||||||||||||||||||
| Cash and due from banks | $ | 17,950 | $ | 20,005 | $ | 18,137 | (10 | ) | (1 | ) | ||||||||||
| Interest-bearing deposits at other financial institutions | 22,390 | 13,006 | 62,536 | 72 | (64 | ) | ||||||||||||||
| Total cash and cash equivalents | 40,340 | 33,011 | 80,673 | 22 | (50 | ) | ||||||||||||||
| Certificates of deposit at other financial institutions | 12,001 | 12,707 | 17,636 | (6 | ) | (32 | ) | |||||||||||||
| Securities available-for-sale, at fair value | 228,199 | 221,182 | 251,917 | 3 | (9 | ) | ||||||||||||||
| Securities held-to-maturity, net | 8,455 | 8,455 | 8,455 | — | — | |||||||||||||||
| Loans held for sale, at fair value | 49,373 | 53,811 | 18,636 | (8 | ) | 165 | ||||||||||||||
| Loans receivable, net | 2,463,697 | 2,457,184 | 2,375,572 | — | 4 | |||||||||||||||
| Accrued interest receivable | 14,014 | 13,792 | 13,925 | 2 | 1 | |||||||||||||||
| Premises and equipment, net | 30,026 | 29,999 | 30,926 | — | (3 | ) | ||||||||||||||
| Operating lease right-of-use | 5,365 | 5,784 | 7,042 | (7 | ) | (24 | ) | |||||||||||||
| Federal Home Loan Bank stock, at cost | 9,504 | 10,322 | 3,696 | (8 | ) | 157 | ||||||||||||||
| Other real estate owned | — | — | 570 | — | (100 | ) | ||||||||||||||
| Deferred tax asset, net | 4,222 | 4,590 | 7,424 | (8 | ) | (43 | ) | |||||||||||||
| Bank owned life insurance (“BOLI”), net | 38,453 | 38,201 | 37,480 | 1 | 3 | |||||||||||||||
| MSRs, held at the lower of cost or fair value | 8,739 | 9,352 | 17,657 | (7 | ) | (51 | ) | |||||||||||||
| Goodwill | 3,592 | 3,592 | 3,592 | — | — | |||||||||||||||
| Core deposit intangible, net | 14,586 | 15,483 | 18,323 | (6 | ) | (20 | ) | |||||||||||||
| Other assets | 39,642 | 23,912 | 26,548 | 66 | 49 | |||||||||||||||
| TOTAL ASSETS | $ | 2,970,208 | $ | 2,941,377 | $ | 2,920,072 | 1 | 2 | ||||||||||||
| LIABILITIES | ||||||||||||||||||||
| Deposits: | ||||||||||||||||||||
| Noninterest-bearing accounts | $ | 657,753 | $ | 623,349 | $ | 670,158 | 6 | (2 | ) | |||||||||||
| Interest-bearing accounts | 1,769,578 | 1,759,454 | 1,784,286 | 1 | (1 | ) | ||||||||||||||
| Total deposits | 2,427,331 | 2,382,803 | 2,454,444 | 2 | (1 | ) | ||||||||||||||
| Borrowings | 163,806 | 181,895 | 121,895 | (10 | ) | 34 | ||||||||||||||
| Subordinated notes: | ||||||||||||||||||||
| Principal amount | 50,000 | 50,000 | 50,000 | — | — | |||||||||||||||
| Unamortized debt issuance costs | (423 | ) | (439 | ) | (489 | ) | (4 | ) | (13 | ) | ||||||||||
| Total subordinated notes less unamortized debt issuance costs | 49,577 | 49,561 | 49,511 | — | — | |||||||||||||||
| Operating lease liability | 5,548 | 5,979 | 7,269 | (7 | ) | (24 | ) | |||||||||||||
| Other liabilities | 35,044 | 37,113 | 36,288 | (6 | ) | (3 | ) | |||||||||||||
| Total liabilities | 2,681,306 | 2,657,351 | 2,669,407 | 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; 7,817,172 shares issued and outstanding at September 30, 2024, 7,742,607 at June 30, 2024, and 7,796,095 at September 30, 2023 | 78 | 77 | 78 | 1 | — | |||||||||||||||
| Additional paid-in capital | 55,264 | 55,834 | 57,464 | (1 | ) | (4 | ) | |||||||||||||
| Retained earnings | 251,843 | 243,651 | 222,532 | 3 | 13 | |||||||||||||||
| Accumulated other comprehensive loss, net of tax | (18,283 | ) | (15,536 | ) | (29,409 | ) | 18 | (38 | ) | |||||||||||
| Total stockholders’ equity | 288,902 | 284,026 | 250,665 | 2 | 15 | |||||||||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 2,970,208 | $ | 2,941,377 | $ | 2,920,072 | 1 | 2 | ||||||||||||
| FS BANCORP, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF INCOME (Dollars in thousands, except per share amounts) (Unaudited) | ||||||||||||||||||||
| Three Months Ended | Linked | Prior Year | ||||||||||||||||||
| September 30, | June 30, | September 30, | Quarter | Quarter | ||||||||||||||||
| 2024 | 2024 | 2023 | % Change | % Change | ||||||||||||||||
| INTEREST INCOME | ||||||||||||||||||||
| Loans receivable, including fees | $ | 43,800 | $ | 42,406 | $ | 39,874 | 3 | 10 | ||||||||||||
| Interest and dividends on investment securities, cash and cash equivalents, and certificates of deposit at other financial institutions | 3,243 | 3,534 | 3,396 | (8 | ) | (5 | ) | |||||||||||||
| Total interest and dividend income | 47,043 | 45,940 | 43,270 | 2 | 9 | |||||||||||||||
| INTEREST EXPENSE | ||||||||||||||||||||
| Deposits | 13,486 | 13,252 | 10,462 | 2 | 29 | |||||||||||||||
| Borrowings | 1,828 | 1,801 | 1,689 | 1 | 8 | |||||||||||||||
| Subordinated notes | 485 | 486 | 485 | — | — | |||||||||||||||
| Total interest expense | 15,799 | 15,539 | 12,636 | 2 | 25 | |||||||||||||||
| NET INTEREST INCOME | 31,244 | 30,401 | 30,634 | 3 | 2 | |||||||||||||||
| PROVISION FOR CREDIT LOSSES | 1,513 | 1,077 | 548 | 40 | 176 | |||||||||||||||
| NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | 29,731 | 29,324 | 30,086 | 1 | (1 | ) | ||||||||||||||
| NONINTEREST INCOME | ||||||||||||||||||||
| Service charges and fee income | 2,482 | 2,479 | 2,882 | — | (14 | ) | ||||||||||||||
| Gain on sale of loans | 2,523 | 2,463 | 1,875 | 2 | 35 | |||||||||||||||
| Gain on sale of MSRs | 141 | — | — | NM | NM | |||||||||||||||
| Gain on sale of investment securities, net | 11 | 151 | — | (93 | ) | NM | ||||||||||||||
| Earnings on cash surrender value of BOLI | 252 | 242 | 233 | 4 | 8 | |||||||||||||||
| Other noninterest income | 558 | 533 | (8 | ) | 5 | (7,075 | ) | |||||||||||||
| Total noninterest income | 5,967 | 5,868 | 4,982 | 2 | 20 | |||||||||||||||
| NONINTEREST EXPENSE | ||||||||||||||||||||
| Salaries and benefits | 13,985 | 13,378 | 13,503 | 5 | 4 | |||||||||||||||
| Operations | 3,827 | 3,519 | 3,409 | 9 | 12 | |||||||||||||||
| Occupancy | 1,662 | 1,669 | 1,588 | — | 5 | |||||||||||||||
| Data processing | 2,156 | 2,058 | 1,841 | 5 | 17 | |||||||||||||||
| Loan costs | 666 | 653 | 564 | 2 | 18 | |||||||||||||||
| Professional and board fees | 1,223 | 888 | 666 | 38 | 84 | |||||||||||||||
| FDIC insurance | 533 | 450 | 561 | 18 | (5 | ) | ||||||||||||||
| Marketing and advertising | 377 | 377 | 452 | — | (17 | ) | ||||||||||||||
| Amortization of core deposit intangible | 897 | 919 | 1,002 | (2 | ) | (10 | ) | |||||||||||||
| Impairment (recovery) of servicing rights | 506 | (54 | ) | — | (1,037 | ) | NM | |||||||||||||
| Total noninterest expense | 25,832 | 23,857 | 23,586 | 8 | 10 | |||||||||||||||
| INCOME BEFORE (BENEFIT) PROVISION FOR INCOME TAXES | 9,866 | 11,335 | 11,482 | (13 | ) | (14 | ) | |||||||||||||
| (BENEFIT) PROVISION FOR INCOME TAXES | (420 | ) | 2,376 | 2,529 | (118 | ) | (117 | ) | ||||||||||||
| NET INCOME | $ | 10,286 | $ | 8,959 | $ | 8,953 | 15 | 15 | ||||||||||||
| Basic earnings per share | $ | 1.32 | $ | 1.15 | $ | 1.15 | 15 | 15 | ||||||||||||
| Diluted earnings per share | $ | 1.29 | $ | 1.13 | $ | 1.13 | 14 | 14 | ||||||||||||
| Nine Months Ended | Year | |||||||||||
| September 30, | September 30, | Over Year | ||||||||||
| 2024 | 2023 | % Change | ||||||||||
| INTEREST INCOME | ||||||||||||
| Loans receivable, including fees | $ | 127,203 | $ | 114,082 | 12 | |||||||
| Interest and dividends on investment securities, cash and cash equivalents, and certificates of deposit at other financial institutions | 10,660 | 8,667 | 23 | |||||||||
| Total interest and dividend income | 137,863 | 122,749 | 12 | |||||||||
| INTEREST EXPENSE | ||||||||||||
| Deposits | 39,620 | 24,696 | 60 | |||||||||
| Borrowings | 4,796 | 3,749 | 28 | |||||||||
| Subordinated note | 1,456 | 1,456 | — | |||||||||
| Total interest expense | 45,872 | 29,901 | 53 | |||||||||
| NET INTEREST INCOME | 91,991 | 92,848 | (1 | ) | ||||||||
| PROVISION FOR CREDIT LOSSES | 3,989 | 3,372 | 18 | |||||||||
| NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | 88,002 | 89,476 | (2 | ) | ||||||||
| NONINTEREST INCOME | ||||||||||||
| Service charges and fee income | 7,513 | 8,352 | (10 | ) | ||||||||
| Gain on sale of loans | 6,824 | 5,298 | 29 | |||||||||
| 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 | 734 | 681 | 8 | |||||||||
| Other noninterest income | 1,355 | 703 | 93 | |||||||||
| Total noninterest income | 16,946 | 15,034 | 13 | |||||||||
| NONINTEREST EXPENSE | ||||||||||||
| Salaries and benefits | 40,920 | 40,880 | — | |||||||||
| Operations | 10,354 | 9,744 | 6 | |||||||||
| Occupancy | 5,036 | 4,670 | 8 | |||||||||
| Data processing | 6,172 | 5,092 | 21 | |||||||||
| Loan costs | 1,904 | 2,077 | (8 | ) | ||||||||
| Professional and board fees | 3,034 | 2,001 | 52 | |||||||||
| FDIC insurance | 1,515 | 1,732 | (13 | ) | ||||||||
| Marketing and advertising | 981 | 1,072 | (8 | ) | ||||||||
| Acquisition costs | — | 1,562 | 100 | |||||||||
| Amortization of core deposit intangible | 2,757 | 2,484 | 11 | |||||||||
| Impairment of servicing rights | 545 | — | NM | |||||||||
| Total noninterest expense | 73,218 | 71,314 | 3 | |||||||||
| INCOME BEFORE PROVISION FOR INCOME TAXES | 31,730 | 33,196 | (4 | ) | ||||||||
| PROVISION FOR INCOME TAXES | 4,088 | 6,915 | (41 | ) | ||||||||
| NET INCOME | $ | 27,642 | $ | 26,281 | 5 | |||||||
| Basic earnings per share | $ | 3.54 | $ | 3.38 | 5 | |||||||
| Diluted earnings per share | $ | 3.45 | $ | 3.33 | 4 | |||||||
KEY FINANCIAL RATIOS AND DATA (Unaudited)
| At or For the Three Months Ended | ||||||||||||
| September 30, | June 30, | September 30, | ||||||||||
| 2024 | 2024 | 2023 | ||||||||||
| PERFORMANCE RATIOS: | ||||||||||||
| Return on assets (ratio of net income to average total assets) (1) | 1.38 | % | 1.22 | % | 1.22 | % | ||||||
| Return on equity (ratio of net income to average equity) (1) | 14.08 | 12.72 | 13.81 | |||||||||
| Yield on average interest-earning assets (1) | 6.56 | 6.48 | 6.13 | |||||||||
| Average total cost of funds (1) | 2.39 | 2.38 | 1.92 | |||||||||
| Interest rate spread information – average during period | 4.17 | 3.33 | 4.21 | |||||||||
| Net interest margin (1) | 4.35 | 4.29 | 4.34 | |||||||||
| Operating expense to average total assets (1) | 3.47 | 3.26 | 3.23 | |||||||||
| Average interest-earning assets to average interest-bearing liabilities (1) | 144.28 | 166.25 | 145.14 | |||||||||
| Efficiency ratio (2) | 69.42 | 65.78 | 66.22 | |||||||||
| Common equity ratio (ratio of stockholders' equity to total assets) | 9.73 | 9.66 | 8.58 | |||||||||
| Tangible common equity ratio (3) | 9.17 | 9.07 | 7.89 | |||||||||
| For the Nine Months Ended | ||||||||
| September 30, | September 30, | |||||||
| 2024 | 2023 | |||||||
| PERFORMANCE RATIOS: | ||||||||
| Return on assets (ratio of net income to average total assets) (1) | 1.25 | % | 1.25 | % | ||||
| Return on equity (ratio of net income to average equity) (1) | 13.05 | 14.13 | ||||||
| Yield on average interest-earning assets (1) | 6.44 | 6.03 | ||||||
| Average total cost of funds (1) | 2.33 | 1.58 | ||||||
| Interest rate spread information – average during period | 4.11 | 4.45 | ||||||
| Net interest margin (1) | 4.30 | 4.56 | ||||||
| Operating expense to average total assets (1) | 3.31 | 3.39 | ||||||
| Average interest-earning assets to average interest-bearing liabilities | 144.14 | 146.23 | ||||||
| Efficiency ratio (2) | 67.21 | 66.10 | ||||||
| September 30, | June 30, | September 30, | ||||||||||
| 2024 | 2024 | 2023 | ||||||||||
| ASSET QUALITY RATIOS AND DATA: | ||||||||||||
| Nonperforming assets to total assets at end of period (4) | 0.36 | % | 0.39 | % | 0.21 | % | ||||||
| Nonperforming loans to total gross loans (excluding loans HFS) (5) | 0.43 | 0.46 | 0.23 | |||||||||
| Allowance for credit losses – loans to nonperforming loans (5) | 290.07 | 273.95 | 493.46 | |||||||||
| Allowance for credit losses – loans to total gross loans (excluding loans HFS) | 1.25 | 1.26 | 1.27 | |||||||||
| At or For the Three Months Ended | ||||||||||||
| September 30, | June 30, | September 30, | ||||||||||
| 2024 | 2024 | 2023 | ||||||||||
| PER COMMON SHARE DATA: | ||||||||||||
| Basic earnings per share | $ | 1.32 | $ | 1.15 | $ | 1.15 | ||||||
| Diluted earnings per share | $ | 1.29 | $ | 1.13 | $ | 1.13 | ||||||
| Weighted average basic shares outstanding | 7,676,102 | 7,688,246 | 7,667,981 | |||||||||
| Weighted average diluted shares outstanding | 7,854,389 | 7,796,253 | 7,780,430 | |||||||||
| Common shares outstanding at end of period | 7,713,359 | (6) | 7,644,463 | (7) | 7,693,951 | (8) | ||||||
| Book value per share using common shares outstanding | $ | 37.45 | $ | 37.15 | $ | 32.58 | ||||||
| Tangible book value per share using common shares outstanding (3) | $ | 35.10 | $ | 34.66 | $ | 29.73 | ||||||
__________________________________
| (1) | Annualized. | |
| (2) | Total noninterest expense as a percentage of net interest income and total noninterest income. | |
| (3) | Represents a non-GAAP financial measure. For a reconciliation to the most comparable GAAP financial measure, see “Non-GAAP Financial Measures” below. | |
| (4) | Nonperforming assets consist of nonperforming loans (which include nonaccruing loans and accruing loans more than 90 days 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 7,817,172 at September 30, 2024, less 103,813 unvested restricted stock shares. | |
| (7) | Common shares were calculated using shares outstanding of 7,742,607 at June 30, 2024, less 98,144 unvested restricted stock shares. | |
| (8) | Common shares were calculated using shares outstanding of 7,796,095 at September 30, 2023, less 102,144 unvested restricted stock shares. |
| (Dollars in thousands) | For the Three Months Ended September 30, | For the Nine Months Ended September 30, | Linked Qtr. | Prior Year Qtr. | ||||||||||||||||||||
| Average Balances | 2024 | 2023 | 2024 | 2023 | $ Change | $ Change | ||||||||||||||||||
| Assets | ||||||||||||||||||||||||
| Loans receivable, net (1) | $ | 2,536,106 | $ | 2,423,691 | $ | 2,504,129 | $ | 2,362,885 | $ | 112,415 | $ | 141,244 | ||||||||||||
| Securities available-for-sale, at amortized cost | 250,957 | 294,148 | 288,460 | 276,835 | (43,191 | ) | 11,625 | |||||||||||||||||
| Securities held-to-maturity | 8,500 | 8,500 | 8,500 | 8,500 | - | - | ||||||||||||||||||
| Interest-bearing deposits and certificates of deposit at other financial institutions | 48,546 | 68,369 | 49,887 | 67,163 | (19,823 | ) | (17,276 | ) | ||||||||||||||||
| FHLB stock, at cost | 10,739 | 4,626 | 6,666 | 5,190 | 6,113 | 1,476 | ||||||||||||||||||
| Total interest-earning assets | 2,854,848 | 2,799,334 | 2,857,642 | 2,720,573 | 55,514 | 137,069 | ||||||||||||||||||
| Noninterest-earning assets | 105,941 | 102,052 | 98,099 | 88,936 | 3,889 | 9,163 | ||||||||||||||||||
| Total assets | $ | 2,960,789 | $ | 2,901,386 | $ | 2,955,741 | $ | 2,809,509 | $ | 59,403 | $ | 146,232 | ||||||||||||
| Liabilities | ||||||||||||||||||||||||
| Interest-bearing deposit accounts | $ | 1,737,793 | $ | 1,741,257 | $ | 1,788,324 | $ | 1,703,688 | $ | (3,464 | ) | $ | 84,636 | |||||||||||
| Borrowings | 191,279 | 138,013 | 144,635 | 107,254 | 53,266 | 37,381 | ||||||||||||||||||
| Subordinated notes | 49,567 | 49,500 | 49,550 | 49,484 | 67 | 66 | ||||||||||||||||||
| Total interest-bearing liabilities | 1,978,639 | 1,928,770 | 1,982,509 | 1,860,426 | 49,869 | 122,083 | ||||||||||||||||||
| Noninterest-bearing deposit accounts | 650,852 | 676,000 | 648,345 | 664,319 | (25,148 | ) | (15,974 | ) | ||||||||||||||||
| Other noninterest-bearing liabilities | 40,606 | 39,365 | 41,965 | 36,095 | 1,241 | 5,870 | ||||||||||||||||||
| Total liabilities | $ | 2,670,097 | $ | 2,644,135 | $ | 2,672,819 | $ | 2,560,840 | $ | 25,962 | $ | 111,979 | ||||||||||||
__________________________________
| (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) | September 30, | June 30, | September 30, | ||||||||||
| Tangible Book Value Per Share: | 2024 | 2024 | 2023 | ||||||||||
| Stockholders' equity (GAAP) | $ | 288,902 | $ | 284,026 | $ | 250,665 | |||||||
| Less: goodwill and core deposit intangible, net | (18,178 | ) | (19,075 | ) | (21,915 | ) | |||||||
| Tangible common stockholders' equity (non-GAAP) | $ | 270,724 | $ | 264,951 | $ | 228,750 | |||||||
| Common shares outstanding at end of period | 7,713,359 | (1) | 7,644,463 | (2) | 7,693,951 | (3) | |||||||
| Book value per share (GAAP) | $ | 37.45 | $ | 37.15 | $ | 32.58 | |||||||
| Tangible book value per share (non-GAAP) | $ | 35.10 | $ | 34.66 | $ | 29.73 | |||||||
| Tangible Common Equity Ratio: | |||||||||||||
| Total assets (GAAP) | $ | 2,970,208 | $ | 2,941,377 | $ | 2,920,072 | |||||||
| Less: goodwill and core deposit intangible assets | (18,178 | ) | (19,075 | ) | (21,915 | ) | |||||||
| Tangible assets (non-GAAP) | $ | 2,952,030 | $ | 2,922,302 | $ | 2,898,157 | |||||||
| Common equity ratio (GAAP) | 9.73 | % | 9.66 | % | 8.58 | % | |||||||
| Tangible common equity ratio (non-GAAP) | 9.17 | 9.07 | 7.89 | ||||||||||
_________________________
| (1) | Common shares were calculated using shares outstanding of 7,817,172 at September 30, 2024, less 103,813 unvested restricted stock shares. | |
| (2) | Common shares were calculated using shares outstanding of 7,742,607 at June 30, 2024, less 98,144 unvested restricted stock shares. | |
| (3) | Common shares were calculated using shares outstanding of 7,796,095 at September 30, 2023, less 102,144 unvested restricted stock shares. | |
Contacts:
Joseph C. Adams,
Chief Executive Officer
Matthew D. Mullet,
President/Chief Financial Officer
(425) 771-5299
www.FSBWA.com
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