FS Bancorp Q2 net income edges up; deposits fall as brokered deposits decrease

FS Bancorp, Inc.

FS Bancorp, Inc.

FSBW

0.00


Overview

  • US regional bank reported Q2 net income and EPS up slightly from prior year

  • Net interest income rose modestly year-over-year, driven by loan growth

  • Company repurchased 87,000 shares for $3.6 mln and maintained quarterly dividend

  • Total deposits decreased 7.2% from prior quarter due to a decrease in brokered deposits


Outlook

  • Company expects final resolution of a commercial construction loan relationship in H2 2026

  • FS Bancorp sees continued pressure on commercial real estate values in its market


Result Drivers

  • LOAN GROWTH - Net interest income increased due to higher interest income on loans receivable, mainly from growth in the commercial real estate portfolio

  • CREDIT CHARGE-OFFS - Provision for credit losses rose due to higher net charge-offs, including a partial charge-off on a commercial construction loan and increased delinquencies in the indirect home improvement portfolio

  • FUNDING MIX SHIFT - Total deposits declined, mainly from a reduction in brokered deposits, offset by increased borrowings at a slightly lower cost


Company press release: ID:nGNX5l9NRV


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 EPS

$1.04

Q2 Net Income

$7.90 mln

Q2 Net Interest Income

$32.60 mln

Q2 Dividend

$0.29

Q2 Net Interest Margin

4.30%


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the banks peer group is "buy."

  • Wall Street's median 12-month price target for FS Bancorp Inc is $45.50, about 5.8% above its July 20 closing price of $43.02

  • The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 9 three months ago


Reuters Recommended Reads

  • July 21 - Bridgewater Bancshares Q2 adjusted EPS meets estimates as net interest income rises on loan growth

  • July 21 - Metropolitan Bank Q2 EPS falls on credit loss provision and one-time expenses

  • July 21 - KeyCorp quarterly profit rises on interest income strength


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