FS Bancorp (FSBW) investor relations material

Executive summary

• Net income for Q2 2026 was $7.9 million ($1.04 per diluted share), up from $7.8 million in Q1 2026 and $7.7 million in Q2 2025.

• Six-month net income reached $15.8 million ($2.07 per diluted share), slightly higher than $15.7 million ($1.99 per diluted share) for the same period in 2025.

• Announced 54th consecutive quarterly cash dividend of $0.29 per share, payable August 21, 2026.

• Ongoing integration efforts for the proposed merger with Pacific West Bank.

Financial highlights

• Book value per share rose to $43.57, up 2.7% from Q1 2026 and 10.2% year-over-year; tangible book value per share increased to $41.84.

• Total deposits declined 7.2% sequentially and 4.1% year-over-year, mainly due to a reduction in brokered deposits.

• Loans receivable, net, increased $4.9 million sequentially and $46.7 million year-over-year, driven by commercial real estate growth.

• Net interest income for Q2 2026 was $32.6 million, up $536,000 year-over-year; net interest margin remained stable at 4.30%.

• Noninterest income for Q2 2026 rose $980,000 year-over-year to $6.2 million, mainly from higher gains on loan sales.

• Noninterest expense increased $602,000 year-over-year to $26.1 million, including $417,000 in merger-related costs.

Outlook and guidance

• Management expects final resolution of a significant commercial construction loan charge-off in the second half of 2026.

• Continued focus on merger integration and maintaining strong capital and liquidity positions.