FS Bancorp stock, third-quarter earnings

FS Bancorp stock faces earnings pressure after Q3 profit drop

Published on 11/02/2026 at 01:02 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

FS Bancorp stock reported weaker third-quarter profit after the Pacific West deal. Integration costs and mortgage pressure remain key investor concerns.

Profit falls as integration continues

FS Bancorp's third-quarter net income declined from the prior year as merger-related expenses increased.
The Pacific West acquisition lifted deposits and loans while Home Lending reported a loss.
The company declared a quarterly dividend payable to shareholders of record in November.

FS Bancorp stock, third-quarter earnings, Pacific West acquisition, banking, quarterly dividend, Illustration mit AI erstellt.

FS Bancorp reported lower third-quarter earnings on October 21, 2026, as merger-related expenses and pressure in Home Lending outweighed higher net interest income. The company's release said net income fell to $4.9 million, or $0.63 per diluted share, from $9.2 million, or $1.18 per share, a year earlier.

The FS Bancorp earnings release attributed part of the pressure to the Pacific West Bancorp acquisition. FS Bancorp incurred $2.5 million in merger-related expenses during the quarter and recorded a preliminary $1.7 million bargain purchase gain in noninterest income.

Acquisition expands the balance sheet

The acquisition, completed on August 19, added approximately $476.5 million of assets and $435.6 million of deposits. Total deposits increased 17.1% from June 30 to $2.87 billion, while net loans rose to $3.01 billion.

Net interest income increased to $35.7 million from $33.7 million a year earlier. Noninterest expense, however, rose to $32.3 million from $25.4 million, reflecting higher salaries and benefits, acquisition costs and operating expenses. Management said most remaining acquisition-related expenses are expected in the fourth quarter as systems integration continues.

Mortgage banking weighs on results

Commercial and Consumer Banking produced $5.7 million of net income, compared with $8.4 million in the year-earlier quarter. Home Lending posted an $806,000 loss, compared with income of $775,000 a year earlier, as higher interest rates pressured the mortgage business.

For the first nine months, net income decreased to $20.7 million from $24.9 million. Net interest income increased to $100.9 million from $96.8 million, but higher expenses and credit costs reduced the contribution to earnings.

Dividend maintains shareholder return

The board approved a quarterly cash dividend of $0.29 per common share, the company's 55th consecutive quarterly dividend. The payment is scheduled for November 20, 2026, for shareholders of record on November 6.

FS Bancorp stock is issued by FS Bancorp, a Washington-based bank holding company for 1st Security Bank of Washington. The bank provides deposit products, residential, consumer, business and commercial real estate lending, cash management and mortgage services, primarily across Washington and Oregon. Its two reported segments are Commercial and Consumer Banking and Home Lending.