FSBW · FS Bancorp, Inc.

FS Bancorp reported first quarter 2026 net income of $7.8 million, or $1.02 per diluted share, compared to $8.4 million in the prior quarter and $8.0 million in the same quarter last year. The linked quarter decrease was primarily attributed to a $1.0 million bank owned life insurance mortality benefit recognized in the prior quarter, which did not recur in the current period. On a pre-tax basis, earnings showed underlying strength, increasing 4.6% year-over-year to $9.9 million, driven by growth in net interest income and improved Home Lending segment performance. The effective tax rate was higher in the current quarter compared to the prior year.

Operational highlights included a significant 42.7% year-over-year increase in Home Lending production to $207.5 million, fueled by improved rate activity. The Home Lending segment reported net income of $1.1 million, up substantially from $241,000 in the prior year. In contrast, the Commercial and Consumer Banking segment earned $6.7 million, down slightly from $7.8 million in the prior year. Asset quality metrics remained stable, with total deposits excluding brokered deposits unchanged sequentially at $2.31 billion. Loans receivable, net, increased 4.9% year-over-year to $2.62 billion, led by growth in the commercial real estate portfolio. The cost of deposits decreased to 2.24% from 2.26% in the prior quarter due to repricing activities.

Capital management remained a priority, with the Board declaring the 53rd consecutive quarterly cash dividend of $0.29 per share. The company repurchased 15,025 shares at an average price of $41.24 during the quarter. Book value per share reached a record $42.42, reflecting sustained earnings growth and disciplined capital management. Management also highlighted the announced merger with Pacific West Bancorp and projected expansion into the Portland, Oregon market later in 2026.