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Investing.com - DA Davidson has lowered its price target on FS Bancorp (NASDAQ:FSBW) to $41.00 from $44.00 while maintaining a Neutral rating on the stock. According to InvestingPro data, the stock currently trades at a P/E ratio of 9.3x, with analyst targets ranging from $44 to $47.
The bank reported third-quarter 2025 earnings per share of $1.18, exceeding both DA Davidson’s estimate of $1.09 and the consensus forecast of $1.08. The earnings beat was primarily driven by higher spread and fee income. The company has maintained strong profitability, with a return on equity of 11% in the last twelve months.
FS Bancorp demonstrated a strong net interest margin (NIM) that continued to rise during the quarter, which DA Davidson described as "lofty." The firm noted this margin remains among the best compared to industry peers.
Loan growth slowed during the quarter, prompting the bank to focus on managing pricing to improve net growth. DA Davidson indicated this strategy may cause the net interest margin to level off, though it would still remain strong relative to peers.
The research firm observed some credit migration in FS Bancorp’s portfolio but characterized overall asset quality as sound, contributing to its maintained Neutral stance on the stock despite the lower price target. Notably, InvestingPro analysis shows the company has raised its dividend for 12 consecutive years, with a current yield of 3%. Additional insights and metrics are available on InvestingPro.
In other recent news, FS Bancorp reported a third-quarter net income of $9.2 million, or $1.18 per diluted share, a decrease from the previous year’s $10.3 million, or $1.29 per diluted share. Total deposits saw a significant increase, reaching $2.69 billion by September 30, 2025, up 5.2% from June 30, 2025, and 10.7% year-over-year. In the second quarter, FS Bancorp recorded a net income of $7.7 million, or $0.99 per diluted share, down from $9.0 million, or $1.13 per diluted share, the previous year. The company also declared a special dividend of $0.22 per share, in addition to its regular quarterly cash dividend of $0.28 per share. Leadership changes were announced as Matthew D. Mullet was named CEO of 1st Security Bank, succeeding Joseph C. Adams, who will continue as CEO of FS Bancorp. Executives from FS Bancorp attended the Raymond James U.S. Bank and Banking on Technology Conference in Chicago, with investor materials made available. These developments reflect FS Bancorp’s ongoing strategic adjustments and financial performance.
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