FS Bancorp, Inc. reported a net income of $9.2 million for the third quarter of 2025, a decrease from $10.3 million in the same period last year. The decline was attributed to a significant increase in the provision for income taxes, which rose by $2.8 million, and a $796,000 increase in the provision for loan losses. However, net interest income increased by $2.4 million to $33.7 million, driven by higher interest income on loans, which rose by $2.9 million due to an increase in both the average balance of loans and the yield earned on those loans.
Total assets for FS Bancorp increased by $179.6 million to $3.21 billion as of September 30, 2025, compared to $3.03 billion at the end of 2024. This growth was primarily fueled by a $97.7 million increase in loans receivable, net, and a $30.5 million rise in securities available-for-sale. The company’s loan portfolio composition included 35.4% commercial real estate loans, 29.1% residential real estate loans, 22.9% consumer loans, and 12.4% commercial business loans. The increase in loans was particularly notable in commercial construction and development, as well as multi-family and residential real estate segments.
On the operational front, FS Bancorp's total deposits rose by $347.1 million to $2.69 billion, reflecting increases across all deposit categories. The company reported a loan-to-deposit ratio of approximately 99.3% at the end of the quarter, down from 109.5% at the end of 2024, indicating a shift towards a more stable funding base. The increase in deposits was largely attributed to a strategic focus on brokered deposits, which increased significantly during the period.
The company also noted a rise in nonperforming loans, which increased to $18.4 million from $13.6 million at the end of 2024, primarily due to issues in the construction and development loan segment. The allowance for credit losses on loans totaled $30.1 million, or 1.14% of gross loans receivable, down from $31.9 million, or 1.26%, at the end of the previous year. The decrease in the allowance was largely due to a partial charge-off of a commercial construction loan that had been previously reserved.
Looking ahead, FS Bancorp remains focused on diversifying its revenue streams and expanding its lending channels while maintaining strong asset quality. The company plans to continue investing in its home lending operations and managing production capacity in response to market demand. The strategic emphasis on growing and diversifying the loan portfolio, along with maintaining a well-capitalized status, positions FS Bancorp for continued stability and growth in the evolving economic landscape.
About FS Bancorp, Inc.
FS Bancorp is a community-focused bank holding company operating through its subsidiary, 1st Security Bank. It offers a range of lending services including commercial real estate, construction, residential, consumer, and business loans. Serving the Pacific Northwest, it emphasizes relationship banking, community involvement, and diversified loan portfolios to support local families, businesses, and industries. Its business model centers on relationship lending, community engagement, and strategic growth through organic and acquisition channels.
About 10-Q Filings
A 10-Q form is an important financial report that public companies in the United States must submit every three months. It gives a clear picture of a company's financial health and recent performance.
Key points about the 10-Q:
- Frequency: Companies file it three times a year, covering the first three quarters. The fourth quarter is covered in a more comprehensive annual report.
-
Content: It includes:
- Financial statements showing the company's current financial position
- Updates from management on the performance and projections of the business
- Information about potential risks the company faces
- Details on how the company is run internally
- Deadline: Must be filed within 40 or 45 days after the quarter ends, depending on the size of the company.
Our Methodology
AssetRoom is committed to providing timely summaries of news from public companies. We use AI to generate these summaries quickly, but they are not reviewed by human experts.
Our method:
- Data Collection: We continuously monitor for new filings (currently limited to US-listed stocks).
- AI-Powered Analysis: Our advanced AI system processes each filing, identifying key information and extracting relevant data.
- Summary Generation: The AI creates a concise, easy-to-understand summary of the filing, highlighting the most important points.
- Publication: The summary is immediately published on our platform, allowing users instant access to the latest information.
- Email users: We distribute round-up emails according to our users preferences, keeping them in the loop with the companies they follow.
Feedback & Corrections
Spot an error or have a suggestion? Contact us.