FS Bancorp (FSBW) investor relations material

Executive summary

• Q3 2025 net income was $9.2 million ($1.18/diluted share), down from $10.3 million YoY but up from $7.7 million in Q2 2025, with nine-month net income at $24.9 million.

• Total assets increased $179.6 million to $3.21 billion at September 30, 2025, driven by loan and securities growth, funded by brokered deposits.

• Loan growth was concentrated in commercial construction, multi-family, and residential real estate, while consumer loans, especially indirect home improvement, declined.

• Declared 51st consecutive quarterly cash dividend of $0.28/share, to be paid Nov 20, 2025.

• Focus remains on NIM management, asset yield expansion, and balanced shareholder returns via dividends and share repurchases.

Financial highlights

• Net interest income for Q3 2025 rose 7.8% YoY to $33.7 million, with NIM improving to 4.37%.

• Total deposits grew 10.7% YoY to $2.69 billion; loans receivable, net, increased 5.5% YoY to $2.60 billion.

• Provision for credit losses increased to $2.3 million, reflecting higher net charge-offs and growth in nonperforming loans.

• Noninterest income decreased by $373,000 to $5.6 million, mainly due to lower service charges and no MSR sales.

• Noninterest expense declined slightly to $25.4 million, with efficiency ratio improving to 64.63%.

Outlook and guidance

• Management expects continued NIM strength, focus on asset yield expansion, and stable funding mix.

• The company expects to continue managing loan production capacity and funding mix in response to market demand and interest rate environment.

• Forward-looking statements caution on economic, regulatory, and market uncertainties.