FS Bancorp Q3 Profit Falls 47% to $4.9M; Dividend Held at $0.29
FSBW sits 22% above its 52-week low of $36.66.
Summary
FS Bancorp earned $4.9 million, or $0.63 a share, in Q3 — down sharply on $2.5 million of merger costs and a mortgage-banking loss — while acquired Pacific West loans lifted nonperforming balances. The $0.29 quarterly dividend was declared for the 55th consecutive quarter.
Key Events · Earnings and Guidance · FSBW
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Q3 Earnings Drop Sharply
Net income of $4.9 million, or $0.63 per diluted share, versus $7.9 million ($1.04) in Q2 2026 and $9.2 million ($1.18) a year ago; nine-month net income $20.7 million ($2.62) versus $24.9 million ($3.18).
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Merger Costs and Mortgage Loss Weigh
$2.5 million of Pacific West acquisition costs hit the quarter, and the Home Lending segment posted an $806,000 net loss as higher rates reduced saleable production; the remaining integration and core conversion costs are expected in Q4 2026.
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Acquired Loans Lift Credit Risk
Nonperforming loans rose to $25.1 million from $15.6 million, including $8.6 million of nonaccrual loans acquired with Pacific West; allowance coverage of nonperforming loans fell to 145% from 199%.
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Capital Ratios Decline Post-Deal
Bank total risk-based capital fell to 12.61% from 14.0% and Tier 1 leverage to 11.24% from 11.4%; the bank remains well capitalized.
Analysis · FSBW · Finance
Third-quarter net income of $4.9 million, or $0.63 per diluted share, is down 38% from $7.9 million in Q2 and 46% from $9.2 million a year ago. The miss is mostly self-inflicted: $2.5 million of Pacific West merger costs plus a Home Lending segment that flipped to an $806,000 loss as higher mortgage rates cut saleable production. The acquisition closed August 19 and added $442.8 million of deposits and $252.7 million of loans, but it also brought $8.6 million of nonaccrual loans and $12.5 million of classified loans, pushing nonperforming loans to $25.1 million from $15.6 million and cutting allowance coverage to 145% of nonperforming loans from 199%. Capital absorbed the deal too — the bank's total risk-based ratio dropped to 12.61% from 14.0%, still well capitalized. The board kept the quarterly dividend at $0.29, the 55th straight, payable November 20; the remaining integration costs and the core processing conversion land in Q4, so the expense drag is not finished.
How filings like this one have moved
In the 30 days to Oct 21, 2026, 28.9% of the 1511 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.54%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, FSBW was trading at $44.79 on NASDAQ in the Finance sector, with a market capitalization of approximately $348.5M. The 52-week trading range was $36.66 to $45.85. This filing was assessed with negative market sentiment and an importance score of 7 out of 10.