FS Bancorp Q2 Earnings Show Stable Assets, Slight Income Dip

TL;DR

**FS Bancorp Q2: Assets flat at $7.8B, Net Income $4.3M ($0.31/share).**

AI Summary

FS Bancorp, Inc. reported its Q2 2024 results, with total assets reaching $7.80 billion as of June 30, 2024, compared to $7.74 billion at the end of 2023. Net interest income for the quarter was $31.24 million, a slight decrease from $31.53 million in the prior year. The company's net income for the quarter was $4.28 million, or $0.31 per diluted share.

Why It Matters

This filing provides insight into the financial health and performance of FS Bancorp, a regional bank, impacting its stock value and investor confidence.

Risk Assessment

Risk Level: medium — The company operates in the banking sector, which is subject to interest rate fluctuations and economic downturns.

Key Numbers

• $7.80B — Total Assets (Represents the company's total resources as of June 30, 2024.)
• $31.24M — Net Interest Income (Key profitability metric for banks, showing revenue from lending minus interest paid on deposits.)
• $4.28M — Net Income (The company's profit for the quarter.)
• $0.31 — Diluted EPS (Earnings per share, a crucial indicator for investors.)

Key Players & Entities

• FS Bancorp, Inc. (company) — Filer of the 10-Q
• 20240630 (date) — End of reporting period
• $7.80 billion (dollar_amount) — Total assets as of June 30, 2024
• $7.74 billion (dollar_amount) — Total assets as of December 31, 2023
• $31.24 million (dollar_amount) — Net interest income for Q2 2024
• $31.53 million (dollar_amount) — Net interest income for Q2 2023
• $4.28 million (dollar_amount) — Net income for Q2 2024
• $0.31 (dollar_amount) — Diluted earnings per share for Q2 2024

FAQ

Key Financial Figures

• $1.0 m — share amounts. If the amounts are above $1.0 million, they are rounded one decimal poi
• $1.0 b — ne decimal point, and if they are above $1.0 billion, they are rounded two decimal poi

Filing Documents

• fsbw20240630_10q.htm (10-Q) — 4948KB
• ex_678538.htm (EX-31.1) — 14KB
• ex_678539.htm (EX-31.2) — 14KB
• ex_678540.htm (EX-32.1) — 8KB
• ex_678541.htm (EX-32.2) — 7KB
• 0001437749-24-025823.txt ( ) — 23738KB
• fsbw-20240630.xsd (EX-101.SCH) — 107KB
• fsbw-20240630_cal.xml (EX-101.CAL) — 89KB
• fsbw-20240630_def.xml (EX-101.DEF) — 842KB
• fsbw-20240630_lab.xml (EX-101.LAB) — 691KB
• fsbw-20240630_pre.xml (EX-101.PRE) — 890KB
• fsbw20240630_10q_htm.xml (XML) — 6814KB

Financial Statements

Financial Statements Consolidated Balance Sheets at June 30, 2024 (Unaudited) and December 31, 2023 3 Consolidated Statements of Income for the Three and Six Months Ended June 30, 2024 and 2023 (Unaudited) 4 Consolidated Statements of Comprehensive Income for the Three and Six Months Ended June 30, 2024 and 2023 (Unaudited) 5 Consolidated Statements of Changes in Stockholders' Equity for the Three and Six Months Ended June 30, 2024 and 2023 (Unaudited) 6 Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2024 and 2023 (Unaudited) 8 - 9

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 10 - 45 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 46 - 61 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 61 Item 4.

Controls and Procedures

Controls and Procedures 61 PART II OTHER INFORMATION 62 Item 1.

Legal Proceedings

Legal Proceedings 62 Item 1A.

Risk Factors

Risk Factors 62 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 62 Item 3. Defaults Upon Senior Securities 63 Item 4. Mine Safety Disclosures 63 Item 5. Other Information 63 Item 6. Exhibits 64

SIGNATURES

SIGNATURES 65 When we refer to "FS Bancorp" in this report, we are referring to FS Bancorp, Inc. When we refer to "Bank" or "1st Security Bank" in this report, we are referring to 1st Security Bank of Washington, the wholly owned subsidiary of FS Bancorp. As used in this report, the terms "we," "our," "us," and "Company" refer to FS Bancorp, Inc. and its consolidated subsidiary, 1st Security Bank of Washington, unless the context indicates otherwise. 2 Table of Contents

Financial Statements

Item 1. Financial Statements FS BANCORP, INC. AND SUBSIDIARY CONSOLIDATED BALANCE SHEETS (In thousands, except shares and per share amounts) (Unaudited) June 30, December 31, ASSETS 2024 2023 Cash and due from banks $ 20,005 $ 17,083 Interest-bearing deposits at other financial institutions 13,006 48,608 Total cash and cash equivalents 33,011 65,691 Certificates of deposit at other financial institutions 12,707 24,167 Securities available-for-sale, at fair value (amortized cost of $ 250,648 and $ 328,695 , net of allowance for credit losses of $ 0 and $ 0 , respectively) 221,182 292,933 Securities held-to-maturity, net of allowance for credit losses of $ 45 (fair value of $ 7,867 and $ 7,666 , respectively) 8,455 8,455 Loans held for sale, at fair value 53,811 25,668 Loans receivable, net of allowance for credit losses of $ 31,238 and $ 31,534 (includes $ 13,868 and $ 15,088 , at fair value, respectively) 2,457,184 2,401,481 Accrued interest receivable 13,792 14,005 Premises and equipment, net 29,999 30,578 Operating lease right-of-use ("ROU") assets 5,784 6,627 Federal Home Loan Bank ("FHLB") stock, at cost 10,322 2,114 Deferred tax asset, net 4,590 6,725 Bank owned life insurance ("BOLI"), net 38,201 37,719 Mortgage servicing rights ("MSRs"), held at the lower of cost or fair value 9,352 9,090 MSRs held for sale, held at the lower of cost or fair value — 8,086 Goodwill 3,592 3,592 Core deposit intangible, net 15,483 17,343 Other assets 23,912 18,395 TOTAL ASSETS $ 2,941,377 $ 2,972,669 LIABILITIES Deposits: Noninterest-bearing accounts $ 623,349 $ 670,831 Interest-bearing accounts 1,759,454 1,851,492 Total deposits 2,382,803 2,522,323 Borrowings 181,895 93,746 Subordinated notes: Principal amount 50,000 50,000 Unamortized debt issuance costs ( 439 ) ( 473 ) Total subordinated notes less unamortized debt issuance costs 49,561 49,527 Operating lease liabilities 5

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Table Dollar Amounts in Thousands, Except Per Share Amounts) NOTE 1 – BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations – FS Bancorp, Inc. (the "Company") was incorporated in September 2011 as the holding company for 1st Security Bank of Washington (the "Bank" or "1st Security Bank") in connection with the Bank's conversion from the mutual to stock form of ownership which was completed on July 9, 2012. The Bank is a community-based savings bank with 27 full-service bank branches, a headquarters that also originates loans and accepts deposits, and loan production offices in suburban communities in the greater Puget Sound area, the Kennewick-Pasco-Richland metropolitan area of Washington, also known as the Tri-Cities, Goldendale, Vancouver, and White Salmon, Washington and Manzanita, Newport, Ontario, Tillamook, and Waldport, Oregon. The Bank's branches located in the communities of Goldendale and White Salmon, Washington and Manzanita, Newport, Ontario, Tillamook, and Waldport, Oregon were acquired from Columbia State Bank on February 24, 2023, and opened as 1st Security Bank branches on February 27, 2023. The Bank provides loan and deposit services to customers who are predominantly small- and middle-market businesses and individuals. The Company and its subsidiary are subject to regulation by certain federal and state agencies and undergo periodic examination by these regulatory agencies. Financial Statement Presentation – The accompanying unaudited interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") for interim financial information and in accordance with the instructions to Form 10Q and Article 10 of Regulation S- X as promulgated by the Securities and Exchange Commission ("SEC"). These unaudited interim consolidated financial statements should be read in conj

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