FS Bancorp, Inc. reported a net income of $7.9 million for the three months ended June 30, 2026, reflecting a slight increase from $7.7 million in the same period of the previous year. This growth was primarily driven by a $980,000 increase in noninterest income and a $536,000 rise in net interest income, which was partially offset by a $620,000 increase in the provision for credit losses. For the six months ended June 30, 2026, net income was $15.8 million, compared to $15.7 million for the same period in 2025, indicating stable profitability amid fluctuating market conditions.
Total assets decreased by $17.8 million to $3.18 billion as of June 30, 2026, from $3.20 billion at the end of 2025. This decline was attributed to reductions in securities available-for-sale and loans held for sale, which were partially offset by increases in loans receivable and Federal Home Loan Bank (FHLB) stock. Loans receivable, net, increased by $5.8 million to $2.63 billion, with notable growth in commercial real estate and residential real estate loans, while consumer loans saw a decrease.
In terms of operational metrics, the company’s total deposits fell by $224.8 million to $2.45 billion, driven by a significant reduction in brokered deposits. The loan-to-deposit ratio increased to approximately 108.6% at June 30, 2026, compared to 100.9% at the end of 2025, reflecting a strategic shift towards utilizing borrowings to fund loan growth. The company’s borrowings rose to $324.5 million, up from $129.3 million, as it sought more competitive funding sources.
Strategically, FS Bancorp announced a definitive agreement to acquire Pacific West Bancorp in a transaction valued at approximately $34.6 million, which is expected to enhance its market presence in the Pacific Northwest. The merger is subject to regulatory approvals and is anticipated to close in the third quarter of 2026. The company continues to focus on diversifying its revenue streams and expanding its lending channels, particularly in residential construction and home improvement loans, which are critical to its growth strategy.
Looking ahead, FS Bancorp remains cautiously optimistic about its financial performance, with management emphasizing the importance of maintaining strong asset quality and managing credit risks. The company plans to continue leveraging its community banking presence while expanding into new markets, aiming to enhance its overall operational efficiency and profitability in the coming quarters.
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.
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