FS Bancorp Reports $8.0 Million Net Income in Q1 2025, Total Assets Reach $3.07 Billion

FS Bancorp, Inc. reported a net income of $8.0 million for the first quarter of 2025, a decrease from $8.4 million in the same period last year. This decline was attributed to a $1.5 million increase in noninterest expenses and a $193,000 rise in the provision for credit losses, which were partially offset by a reduction of $1.1 million in income tax expenses and a $636,000 increase in net interest income. The company’s net interest income rose to $31.0 million, up from $30.3 million year-over-year, driven by a higher yield on loans and an increase in the average balance of loans outstanding.

Total assets for FS Bancorp increased by $36.9 million to $3.07 billion as of March 31, 2025, compared to $3.03 billion at the end of 2024. This growth was primarily fueled by a $31.1 million rise in cash and cash equivalents and a $10.0 million increase in securities available-for-sale. Loans receivable remained stable at approximately $2.50 billion, with notable increases in one-to-four-family loans and construction and development loans, while commercial business loans saw a decrease. The allowance for credit losses on loans was $31.7 million, representing 1.25% of gross loans receivable.

On the operational front, FS Bancorp's total deposits surged by $275.7 million to $2.62 billion, reflecting increases across all deposit categories, particularly in brokered deposits. The company’s strategy to manage interest rate risk and liquidity through brokered deposits has proven effective, with non-retail CDs making up a significant portion of total deposits. The bank's total liabilities also rose to $2.77 billion, primarily due to the increase in deposits, while borrowings decreased significantly as higher-cost funds were paid down.

Looking ahead, FS Bancorp aims to continue diversifying its revenue streams and expanding its lending channels. The company is focused on maintaining strong asset quality and capturing complete customer relationships through a broad array of products and services. Management remains optimistic about the potential for growth in residential construction lending and indirect home improvement lending, despite the challenges posed by economic volatility and competitive pressures in the market. The bank is well-capitalized, exceeding all regulatory capital requirements, which positions it favorably for future growth opportunities.