Q3 Profit Falls 47% as FS Bancorp Absorbs Pacific West Deal Costs
FSBW sits 22% above its 52-week low of $36.66.
Summary
Q3 net income dropped to $4.9M, or $0.63 per diluted share, from $7.9M ($1.04) last quarter and $9.2M ($1.18) a year ago — a roughly 47% year-over-year decline. The Pacific West acquisition closed August 19 and drove the balance sheet expansion: deposits jumped 17.1% to $2.87B and loans rose 14% to $3.01B, but the deal also brought $2.5M of merger expenses and a $1.7M bargain purchase gain. The company also repurchased 44,664 shares for $1.9 million at an average price of $43.41 in Q3 2026. The Home Lending segment flipped to an $806K net loss from $775K income a year ago as rising rates squeezed mortgage banking. Credit remains the sore spot: nonperforming CRE loans climbed to $17.1M from $7.8M last quarter, and the allowance for credit losses rose to $36.5M from $31.2M. The board declared the 55th straight quarterly dividend of $0.29, payable November 20 to holders of record November 6 — the payout looks secure but the earnings trend is deteriorating.
Updated with an SEC 8-K filing · What changed
Updates
· SEC 8-K — FS Bancorp repurchased 44,664 shares for $1.9 million at an average price of $43.41 in Q3 2026.
At the time of this announcement, 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 news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: GlobeNewswire.