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MOUNTLAKE TERRACE, Wash. - FS Bancorp, Inc. (NASDAQ:FSBW), the holding company for 1st Security Bank of Washington, reported third quarter net income of $9.2 million, or $1.18 per diluted share, compared to $10.3 million, or $1.29 per diluted share, for the same quarter last year. The regional bank, currently valued at $288 million, trades at an attractive P/E ratio of 9.3x. According to InvestingPro analysis, three analysts have recently revised their earnings estimates upward for the upcoming period.
Total deposits increased 5.2% to $2.69 billion at September 30, 2025, compared to $2.55 billion at June 30, 2025, primarily due to growth in brokered certificates of deposit. Year-over-year, deposits grew 10.7% from $2.43 billion. The bank maintains a "FAIR" overall financial health score according to InvestingPro metrics, with particularly strong marks in relative value and profitability.
Loans receivable, net increased 0.7% to $2.60 billion at the end of the third quarter, compared to $2.58 billion at June 30, 2025, and rose 5.5% from $2.46 billion a year earlier. The quarterly growth was primarily driven by commercial and speculative construction and development loans, which increased $26.0 million, and commercial and industrial loans, which grew $16.6 million.
"We continue to manage our strong net interest margins with expanding yields on earning assets while maintaining a stable, well positioned mix of funding liabilities," stated Matthew Mullet, CEO and President of 1st Security Bank.
The company’s net interest margin was 4.37% for the quarter, up from 4.35% in the same period last year. Total interest income increased $3.9 million year-over-year, while interest expense rose $1.5 million.
The board approved a quarterly cash dividend of $0.28 per share, payable November 20, 2025, to shareholders of record as of November 6, 2025, marking the bank’s 51st consecutive quarterly dividend. InvestingPro data shows the bank has maintained dividend payments for 13 consecutive years, with a current yield of 3% and a healthy 7.7% dividend growth over the last twelve months.
During the quarter, FS Bancorp repurchased 134,413 shares at an average price of $41.15 per share. Book value per share increased to $40.43 at September 30, 2025, compared to $39.55 at June 30, 2025.
At quarter-end, the bank reported regulatory capital ratios of 13.8% for total risk-based capital and 11.0% for Tier 1 leverage capital, exceeding all regulatory requirements. The bank’s strong capital position is reflected in its moderate debt-to-equity ratio of 0.99 and return on equity of 11%.
This article is based on a press release statement from FS Bancorp, Inc.
In other recent news, FS Bancorp, Inc. reported a second-quarter net income of $7.7 million, or $0.99 per diluted share, which is a decrease from the $9.0 million, or $1.13 per diluted share, reported in the same quarter last year. The company’s board also declared its 50th consecutive quarterly cash dividend of $0.28 per common share and a special dividend of $0.22 per share, both payable on August 21, 2025. In leadership changes, Matthew D. Mullet has been named President and CEO of 1st Security Bank of Washington, effective September 1, 2025, following Joseph C. Adams’ decision to step down, although Adams will continue as CEO of FS Bancorp. Furthermore, FS Bancorp announced the promotion of May-Ling Sowell to Chief Compliance Officer, SVP, recognizing her long-standing service since 2006. Additionally, key executives, including President Matthew D. Mullet, attended the Raymond James U.S. Bank and Banking on Technology Conference in Chicago. The company has made investor materials related to this conference available as an exhibit to its filing. These developments highlight FS Bancorp’s ongoing strategic and leadership initiatives.
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