FS Bancorp Reports Q1 Earnings with Increased Credit Loss Provisions and Declares Quarterly Dividend
FSBW is trading near its 52-week low of $36.66 (13% above the low) on light trading volume (0.1× avg).
Summary
FS Bancorp reported Q1 2026 earnings with stable diluted EPS year-over-year but a sequential net income decline, alongside increased credit loss provisions and nonperforming loans, while also declaring a regular quarterly dividend.
Key Events · Earnings and Guidance · FSBW
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First Quarter 2026 Financial Results
FS Bancorp reported net income of $7.8 million, or $1.02 per diluted share, for Q1 2026. This represents a sequential decrease from $8.4 million in Q4 2025 but is stable compared to $8.0 million in Q1 2025. Pre-tax income increased 4.6% year-over-year to $9.9 million.
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Increased Credit Loss Provisions and Nonperforming Loans
The provision for credit losses on loans increased to $2.6 million in Q1 2026 from $1.5 million in Q1 2025. Nonperforming loans rose to $18.268 million at March 31, 2026, up from $14.471 million a year prior, primarily due to a commercial construction relationship and increases in consumer loans.
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Quarterly Cash Dividend Declared
The Board of Directors declared a regular quarterly cash dividend of $0.29 per share, payable on May 21, 2026, to stockholders of record as of May 7, 2026. This marks the 53rd consecutive quarterly cash dividend.
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Modest Share Repurchase Activity
The company repurchased $620,000, or 15,025 shares, of its common stock in Q1 2026 at an average price of $41.24 per share. Approximately $3.6 million remains available under the existing share repurchase plan.
Analysis · FSBW · Finance
FS Bancorp's Q1 2026 earnings report, while showing stable diluted EPS year-over-year, revealed a sequential decline in net income and a notable increase in credit loss provisions and nonperforming loans. The 26% year-over-year rise in nonperforming loans and a 73% increase in provision for credit losses signal potential credit quality deterioration, which is a key risk factor for banks. This detailed financial disclosure, following a prior news release of headline figures, provides critical insights into the company's asset quality trends. Investors should monitor these credit metrics closely, especially given the ongoing merger with Pacific West Bancorp and expansion plans.
At the time of this filing, FSBW was trading at $41.55 on NASDAQ in the Finance sector, with a market capitalization of approximately $311.7M. The 52-week trading range was $36.66 to $44.22. This filing was assessed with negative market sentiment and an importance score of 7 out of 10.