FS Bancorp authorizes additional $5 million share repurchase program

MOUNTLAKE TERRACE, Wash. - FS Bancorp, Inc. (NASDAQ:FSBW), the holding company for 1st Security Bank of Washington with a market capitalization of $289 million, announced Monday that its Board of Directors has authorized an additional $5 million share repurchase program. The company, trading at a P/E ratio of 9.55 and currently valued near its InvestingPro Fair Value, has maintained consistent dividend payments for 13 consecutive years.

The program allows the company to repurchase shares of its outstanding common stock over a 12-month period ending October 27, 2026. Repurchases may be conducted in open market or private transactions at management’s discretion. With analyst price targets ranging from $44 to $47, representing potential upside, and a current dividend yield of 2.97%, InvestingPro data reveals additional compelling metrics about FSBW’s financial health and growth potential.

The new buyback initiative will begin no sooner than the third trading day following the announcement. The program permits shares to be repurchased under Rule 10b5-1 of the Securities and Exchange Commission.

According to the company’s statement, management will determine repurchase prices based on what it considers attractive and in the best interests of both the company and its shareholders. Factors influencing repurchase decisions will include stock availability, market conditions, trading price, alternative capital uses, and financial performance.

The company noted that open market purchases will comply with Rule 10b-18 limitations and other legal requirements. The program may be suspended, terminated, or modified at any time for any reason and does not obligate the company to purchase any specific number of shares.

FS Bancorp operates 27 bank branches and several loan production offices throughout Washington and Oregon, serving small and middle-market businesses and individuals. The information was disclosed in a press release issued by the company.

In other recent news, FS Bancorp reported third-quarter 2025 earnings per share of $1.18, surpassing both DA Davidson’s estimate of $1.09 and the consensus forecast of $1.08, largely due to increased spread and fee income. Despite this earnings beat, the company’s net income for the quarter was $9.2 million, down from $10.3 million in the same period last year. Total deposits saw a significant increase of 5.2% from the previous quarter, reaching $2.69 billion, primarily driven by growth in brokered certificates of deposit. Year-over-year, deposits grew by 10.7%.

DA Davidson has lowered its price target for FS Bancorp to $41.00 from $44.00, maintaining a Neutral rating due to slowing loan growth. Meanwhile, FS Bancorp executives, including President Matthew D. Mullet, participated in the Raymond James U.S. Bank and Banking on Technology Conference in Chicago, where they provided investor materials as an exhibit to their filing. In a leadership change, Matthew D. Mullet has been named President and CEO of 1st Security Bank, a subsidiary of FS Bancorp, effective September 1, 2025. Joseph C. Adams will retire from his position as CEO of the bank but will continue as CEO of FS Bancorp.

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