FS Bancorp, Inc. has released its financial results for the third quarter of 2026, revealing a significant decrease in net income compared to previous periods. The company also declared a quarterly cash dividend, marking its commitment to returning value to shareholders.
On October 21, 2026, FS Bancorp reported a net income of $4.9 million, or $0.63 per diluted share, down from $7.9 million, or $1.04 per diluted share, in the prior quarter. This decline is also notable compared to the $9.2 million, or $1.18 per diluted share, reported in the same quarter last year. The company attributed this decrease to various factors, including the integration costs associated with its recent acquisition.
FS Bancorp, Inc., incorporated in Washington, operates under the SIC code 6036, which pertains to savings institutions that are not federally chartered. The company trades on the Nasdaq under the ticker symbol FSBW. Its recent filings indicate a strategic focus on growth through acquisitions, as seen in its recent purchase of Pacific West Bancorp.
In the filing dated October 21, 2026, FS Bancorp also announced a quarterly cash dividend of $0.29 per share, payable on November 20, 2026, to stockholders of record as of November 6, 2026. This marks the 55th consecutive quarterly dividend declared by the company, reflecting its ongoing commitment to shareholder returns.
The acquisition of Pacific West Bancorp, completed on August 19, 2026, is a significant factor in FS Bancorp's current financial landscape. The deal was valued at approximately $35.3 million, consisting of 430,149 shares of FS Bancorp common stock and $16.9 million in cash. This acquisition is expected to enhance FS Bancorp's market position, particularly in the greater Portland, Oregon, and Vancouver, Washington, areas.
Following the acquisition, FS Bancorp reported that total deposits increased by $418.3 million, or 17.1%, reaching $2.87 billion as of September 30, 2026. This growth is primarily attributed to the deposits from Pacific West Bancorp, which accounted for $442.8 million of the total. The company also noted an increase in transactional deposits, further solidifying its financial foundation.
Despite the decline in net income, FS Bancorp's management remains optimistic. Matthew Mullet, the President and CEO, expressed excitement about the integration of Pacific West Bank and the opportunities for expanding deposit and loan offerings in the newly targeted markets. The company aims to leverage the strengths of both institutions to enhance customer service and operational efficiency.
Looking ahead, FS Bancorp's focus will likely remain on successfully integrating its recent acquisition while navigating the challenges of the competitive savings institution landscape. The filing does not specify what immediate steps will follow the recent announcements, but the company’s ongoing commitment to shareholder value through dividends and strategic growth initiatives is clear.