Table of Contents

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

(Mark One)

 

☒         QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended June 30, 2026        

 

or

 

☐         TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from                     to                    

 

Commission File Number: 001-35589

 

FS BANCORP, INC.

(Exact name of registrant as specified in its charter)

 

Washington		45-4585178
(State or other jurisdiction of incorporation or organization)		(IRS Employer Identification No.)

 

6920 220th Street SW, Mountlake Terrace, Washington  98043

(Address of principal executive offices; Zip Code)

 

(425) 771‑5299

 

(Registrant’s telephone number, including area code)

 

None

 

(Former name, former address, and former fiscal year, if changed since last report)

 

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $.01 per share	FSBW	The NASDAQ Stock Market LLC

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes ☒          No ☐

 

Indicate by check mark whether the registrant has submitted electronically, every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes ☒          No ☐

 

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b‑2 of the Exchange Act.

 

Large accelerated filer ☐		Accelerated filer ☒
Non-accelerated filer ☐		Smaller reporting company ☐
Emerging growth company ☐

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b‑2 of the Exchange Act).    Yes ☐          No ☒

 

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: As of August 5, 2026, there were 7,431,972 outstanding shares of the registrant’s common stock.

 

 

FS Bancorp, Inc.

Form 10‑Q

 

Table of Contents

 

				Page Number
PART I		FINANCIAL INFORMATION
Item 1.		Financial Statements
		Consolidated Balance Sheets at June 30, 2026 (Unaudited) and December 31, 2025		4
		Consolidated Statements of Income for the Three and Six Months Ended June 30, 2026 and 2025 (Unaudited)		5
		Consolidated Statements of Comprehensive Income for the Three and Six Months Ended June 30, 2026 and 2025 (Unaudited)		6
		Consolidated Statements of Changes in Stockholders’ Equity for the Three and Six Months Ended June 30, 2026 and 2025 (Unaudited)		7
		Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2026 and 2025 (Unaudited)		9 - 10
		Notes to Consolidated Financial Statements		11 - 50
Item 2.		Management’s Discussion and Analysis of Financial Condition and Results of Operations		52 - 66
Item 3.		Quantitative and Qualitative Disclosures About Market Risk		67
Item 4.		Controls and Procedures		67
PART II		OTHER INFORMATION		67
Item 1.		Legal Proceedings		67
Item 1A.		Risk Factors		67
Item 2.		Unregistered Sales of Equity Securities and Use of Proceeds		68
Item 3.		Defaults Upon Senior Securities		68
Item 4.		Mine Safety Disclosures		68
Item 5.		Other Information		68
Item 6.		Exhibits		69
SIGNATURES				70

 

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.

 

 

​	​	June 30,		​	​	December 31,		​
ASSETS	​	2026		​	​	2025		​
Cash and due from banks	​	$	12,835	​	​	$	13,504	​
Interest-bearing deposits at other financial institutions	​	​	16,875	​	​	​	14,715	​
Total cash and cash equivalents	​	​	29,710	​	​	​	28,219	​
Securities available-for-sale, at fair value (amortized cost of $291,317 and $310,097, net of allowance for credit losses of $0 and $0, respectively)	​	​	269,460	​	​	​	288,667	​
Securities held-to-maturity, at amortized cost (fair value of $35,183 and $34,396, net of allowance for credit losses of $277 and $277, respectively)	​	​	34,845	​	​	​	33,224	​
Loans held for sale, at fair value	​	​	30,548	​	​	​	43,705	​
Loans receivable, net of allowance for credit losses of $31,165 and $31,937 (includes loans of $13,159 and $13,183, at fair value, respectively)	​	​	2,628,992	​	​	​	2,623,172	​
Accrued interest receivable	​	​	14,263	​	​	​	14,614	​
Premises and equipment, net	​	​	43,455	​	​	​	44,065	​
Long-lived assets held for sale	​	​	3,258	​	​	​	3,258	​
Operating lease right-of-use (“ROU”) assets	​	​	6,655	​	​	​	5,789	​
Federal Home Loan Bank (“FHLB”) stock, at cost	​	​	14,420	​	​	​	7,971	​
Deferred tax asset, net	​	​	6,441	​	​	​	6,993	​
Bank owned life insurance (“BOLI”), net	​	​	36,771	​	​	​	36,249	​
Mortgage servicing rights (“MSRs”), held at the lower of cost or fair value	​	​	8,912	​	​	​	8,608	​
Goodwill	​	​	3,592	​	​	​	3,592	​
Core deposit intangible, net	​	​	9,052	​	​	​	10,518	​
Other assets	​	​	38,706	​	​	​	38,203	​
TOTAL ASSETS	​	$	3,179,080	​	​	$	3,196,847	​
LIABILITIES	​	​	​	​	​	​	​	​
Deposits:	​	​	​	​	​	​	​	​
Noninterest-bearing accounts	​	$	641,856	​	​	$	658,123	​
Interest-bearing accounts	​	​	1,807,026	​	​	​	2,015,519	​
Total deposits	​	​	2,448,882	​	​	​	2,673,642	​
Borrowings	​	​	324,500	​	​	​	129,305	​
Subordinated notes:	​	​	​	​	​	​	​	​
Principal amount	​	​	50,000	​	​	​	50,000	​
Unamortized debt issuance costs	​	​	(306	)	​	​	(339	)
Total subordinated notes less unamortized debt issuance costs	​	​	49,694	​	​	​	49,661	​
Operating lease liabilities	​	​	6,753	​	​	​	5,889	​
Other liabilities	​	​	30,291	​	​	​	30,656	​
Total liabilities	​	​	2,860,120	​	​	​	2,889,153	​
COMMITMENTS AND CONTINGENCIES (NOTE 8)	​	​	​	​	​	​	​	​
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; 7,423,772 and 7,507,519 shares issued and outstanding at June 30, 2026 and December 31, 2025, respectively	​	​	74	​	​	​	75	​
Additional paid-in capital	​	​	40,886	​	​	​	43,251	​
Retained earnings	​	​	291,635	​	​	​	280,197	​
Accumulated other comprehensive loss, net of tax	​	​	(13,635	)	​	​	(15,829	)
Total stockholders’ equity	​	​	318,960	​	​	​	307,694	​
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	​	$	3,179,080	​	​	$	3,196,847	​