FS Bancorp Reports Strong Q4 Earnings, Boosts Dividend, and Continues Share Buyback
FSBW sits 24% above its 52-week low of $34.61.
Summary
FS Bancorp reported strong Q4 2025 earnings, increased its quarterly dividend by 3.6%, and continued share repurchases, signaling management confidence despite a specific credit quality issue.
Key Events · Earnings and Guidance · FSBW
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Strong Fourth Quarter Earnings
Net income for Q4 2025 increased to $8.4 million ($1.10 diluted EPS) from $7.4 million ($0.92 diluted EPS) in Q4 2024, representing a 13.5% rise in net income and a 19.6% increase in diluted EPS.
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Quarterly Dividend Increase
The Board of Directors declared a regular quarterly cash dividend, increasing it from $0.28 to $0.29 per share, a 3.6% increase, payable on February 19, 2026.
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Significant Tangible Book Value Growth
Tangible book value per share (non-GAAP) increased by 10.1% to $39.65 at December 31, 2025, compared to $36.02 a year prior.
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Continued Share Repurchase Program
The company repurchased 46,947 shares of common stock in Q4 2025 at an average price of $40.01 per share, with $4.3 million remaining under the existing plan.
Analysis · FSBW · Finance
FS Bancorp, Inc. reported a strong fourth quarter, with net income and diluted EPS increasing significantly year-over-year, although full-year net income saw a slight decrease. The company demonstrated robust growth in tangible book value per share, which rose over 10%. Management's confidence is further underscored by a 3.6% increase in the quarterly cash dividend and continued share repurchases, occurring while the stock trades near its 52-week high. While there was an increase in the provision for credit losses and nonperforming loans, these were primarily attributed to a specific commercial construction relationship, which the company has provisioned for. The strategic purchase of a new headquarters building indicates long-term operational planning.
At the time of this filing, FSBW was trading at $42.75 on NASDAQ in the Finance sector, with a market capitalization of approximately $326.5M. The 52-week trading range was $34.61 to $44.22. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.