FS Bancorp, Inc. (FSBW) SEC Filings & Earnings Calls

Rising interest rates negatively impacting Home Lending segment profitability

“The Home Lending segment reported a net loss of $806,000 for the third quarter of 2026 due to rising interest rates” · word for word

Earnings decline YoY and sequentially across both segments

“Net income totaled $4.9 million for the third quarter of 2026, compared to $7.9 million for the previous quarter, and $9.2 million for the comparable quarter one year ago” · word for word

Integration risk from acquiring a new bank; potential for credit quality or operational issues.

“Acquisition of Pacific West Bancorp; integration of operations and loan portfolios.”

Consumer credit deterioration

“The rise in indirect home improvement and consumer loan net charge-offs reflects continued credit stress in those portfolios amid a challenging economic environment that could result in a material increase in the ACL on loans and adversely affect the Company’s financial condition and results of operations.” · word for word

Deposit outflow and funding mix shift

“Total deposits decreased $224.8 million to $2.45 billion at June 30, 2026, from $2.67 billion at December 31, 2025” · word for word

Commercial real estate exposure

“The additional charge-off reflects leasing uncertainty and updated appraised values for the underlying property, as well as continued pressure on commercial real estate values in the surrounding market.” · word for word

Deposit outflow risk: total deposits decreased $188.7M QoQ, primarily brokered deposits; reliance on borrowings for funding.

“Total deposits decreased $188.7 million, or 7.2%, to $2.45 billion at June 30, 2026, compared to $2.63 billion at March 31, 2026.” · word for word

Merger integration risk with Pacific West Bank; execution risk.

“From the announcement of our proposed merger with Pacific West Bank in the first quarter of 2026, our teams have been diligently working toward a successful integration.” · word for word

Consumer loan runoff: consumer loans decreased $33.1M YoY due to heightened payoff activity.

“Consumer loans were $573.2 million at June 30, 2026, a decrease of $33.1 million, or 5.5%, from $606.3 million in the comparable quarter one year ago.” · word for word

Credit quality deterioration, particularly in consumer and indirect home improvement loans, is driving higher provisioning and charge-offs.

“Net loan charge-offs totaled $2.1 million for the three months ended March 31, 2026, compared to $1.7 million during the three months ended March 31, 2025. The increase was primarily due to a $624,000 increase in indirect home improvement loan net charge-offs.” · word for word

Deposit outflows and a high loan-to-deposit ratio indicate funding pressure, partially mitigated by increased borrowings.

“Total deposits decreased $36.1 million to $2.64 billion at March 31, 2026, from $2.67 billion at December 31, 2025. The loan-to-deposit ratio was approximately 102.9% at March 31, 2026, compared to approximately 100.9% at December 31, 2025.” · word for word

Consumer loan portfolio decreased $13.5M due to heightened payoff activity, indicating potential prepayment risk.

“Consumer loans were $583.5 million at March 31, 2026, a decrease of $13.5 million, or 2.3%, from $597.0 million in the previous quarter” · word for word

Consumer loan credit risk

“Our loan portfolio possesses increased risk due to a large percentage of consumer loans...consumer loans accounted for $597.0 million, or 22.5% of our total gross loan portfolio.” · word for word

Tariff and trade policy impact on borrowers

“Trade disputes, tariffs, U.S. - China tensions, and shifting global supply chain patterns may continue to influence operating costs for our commercial borrowers.” · word for word

Integration risk and regulatory approval uncertainty

“subject to customary closing conditions, including the receipt of regulatory approvals and approval of the Agreement by the shareholders of Pacific West” · word for word

Credit provision risk: recorded an additional $1.0 million credit provision related to a single commercial construction relationship in Q4.

“Recognized an additional $1.0 million in credit provision related to a single commercial construction relationship during the fourth quarter of 2025” · word for word

Consumer loan decline: consumer loans decreased 3.7% YoY, primarily home improvement loans, indicating potential softening in that segment.

“Consumer loans, of which 88.1% are home improvement loans, decreased $3.8 million, or 0.6%, to $597.0 million at December 31, 2025, compared to $600.8 million in the previous quarter and decreased $23.2 million, or 3.7% from $620.2 million in the comparable quarter one year ago” · word for word

Change of control agreements may indicate potential M&A activity or retention concerns.

“Agreements triggered by change of control; could signal acquisition interest.”

Credit quality deterioration

“Nonperforming loans increased $4.8 million to $18.4 million at September 30, 2025, from $13.6 million at December 31, 2024.”

Concentration in CRE construction

“Commercial real estate (“CRE”) loans increased $61.4 million, primarily reflecting: $45.9 million in commercial and speculative construction and development loans.” · word for word

Deposit mix shift to brokered CDs

“Non-retail CDs, which include brokered CDs, online CDs and public funds CDs increased $220.0 million to $374.8 million, compared to $154.8 million at December 31, 2024.” · word for word