Revenue: As of FY2025, the actual value is USD 219.52 M.

EPS: As of FY2025, the actual value is USD 4.29, missing the estimate of USD 4.3367.

EBIT: As of FY2025, the actual value is USD -89.29 M.

Loan Portfolio Breakdown

Total Loans Outstanding

• Total loans outstanding for FS Bancorp, Inc. were $2.655 billion at December 31, 2025, an increase from $2.534 billion at December 31, 2024.

Commercial Real Estate (CRE) Loans

• CRE loans totaled $969.5 million, representing 36.5% of the gross loan portfolio, at December 31, 2025.
• This category included $262.2 million in multi-family loans and $354.1 million in speculative construction and development loans.
• Total CRE loans (excluding multi-family and speculative construction/development) increased to $353.2 million in 2025 from $345.3 million in 2024.
  • CRE non-owner occupied loans were $177.1 million in 2025, up from $174.9 million in 2024.
  • CRE owner occupied loans were $176.1 million in 2025, up from $170.4 million in 2024.

Construction and Development Lending

• Total outstanding construction and development loans were $396.5 million, or 14.9% of the gross loan portfolio, at December 31, 2025, compared to $330.7 million at December 31, 2024.
  • Speculative residential construction – vertical loans increased to $225.2 million in 2025 from $180.4 million in 2024.
  • Speculative residential construction – land, lot, and acquisition and development loans decreased to $42.0 million in 2025 from $42.9 million in 2024.
  • Custom construction – single family residential and single family manufactured residential loans decreased to $32.5 million in 2025 from $42.0 million in 2024.
• Total undisbursed construction and development loan commitments increased by $61.3 million to $235.4 million at December 31, 2025, from $174.1 million at December 31, 2024.

Home Equity Lending

• Total outstanding second lien mortgage and home equity loans were $88.3 million, or 3.3% of the gross loan portfolio, at December 31, 2025.
• Unfunded commitments on home equity lines of credit were $99.5 million at December 31, 2025.

Residential Loans (One-to-four-family)

• One-to-four-family residential mortgage loans totaled $628.8 million, or 23.7% of the gross loan portfolio, at December 31, 2025, excluding loans held for sale of $43.7 million.
• Originations of one-to-four-family loans totaled $739.0 million in 2025, an increase of 3.3% from $715.6 million in 2024.
  • Purchase originations decreased by -3.5% to $604.8 million in 2025 from $626.9 million in 2024.
  • Refinance originations increased by 51.3% to $134.2 million in 2025 from $88.7 million in 2024.
• FS Bancorp, Inc. sold $555.2 million of one-to-four-family loans in 2025, compared to $564.8 million in 2024.
• Gross margin on home loan sales remained at 3.08% for both 2025 and 2024.

Consumer Lending

• Consumer loans totaled $597.0 million, or 22.5% of the gross loan portfolio, at December 31, 2025.
  • Indirect home improvement loans were $525.8 million, or 19.8% of gross loans and 88.1% of total consumer loans, at December 31, 2025.
  • Marine loans totaled $68.1 million, or 2.6% of total loans, at December 31, 2025.
  • Other consumer loans totaled $3.0 million at December 31, 2025.
• In 2025, 84.9% of consumer loan originations were to borrowers with FICO scores above 720, and 14.2% were to borrowers with FICO scores between 660 and 720.
• Consumer loan originations with FICO scores below 660 represented 1.0% in 2025.

Commercial Business Lending

• The commercial business loan portfolio totaled $329.3 million, or 12.4% of the gross loan portfolio, at December 31, 2025.
  • Commercial and industrial loans were $301.1 million, or 11.3% of the gross loan portfolio, at December 31, 2025.
  • Warehouse lending loans were $28.2 million, or 1.1% of the gross loan portfolio, at December 31, 2025.
• Approved commercial construction warehouse lending lines totaled $55.0 million to two companies, with $25.6 million outstanding at December 31, 2025, compared to $47.5 million approved and $10.7 million outstanding at December 31, 2024.
• Approved mortgage warehouse lending lines totaled $15.5 million to three companies, with $2.5 million outstanding at December 31, 2025, compared to $19.5 million approved and $2.2 million outstanding at December 31, 2024.
• During 2025, FS Bancorp, Inc. processed approximately 153 loans and funded approximately $77.5 million in total under its mortgage warehouse lending program.

Asset Quality and Credit Losses

Allowance for Credit Losses (ACL) on Loans

• The provision for credit losses on loans was $9.0 million for the year ended December 31, 2025, compared to $5.6 million for the year ended December 31, 2024.
• The ACL on loans was $31.9 million, or 1.20% of gross loans receivable, at December 31, 2025, compared to $31.9 million, or 1.26%, at December 31, 2024.
• The increase in the 2025 provision was primarily driven by higher net charge-offs in the commercial real estate and consumer loan portfolios, particularly within indirect home improvement loans, and organic loan growth, changes in credit quality, and updates to qualitative factors, partially offset by a $2.3 million charge-off on a single commercial construction loan.

Net Charge-offs to Average Loans Outstanding

• Total net charge-offs were $8.888 million (0.34%) for 2025, up from $5.299 million (0.21%) in 2024.
  • Commercial and speculative construction and development net charge-offs were $2.300 million (0.78%) in 2025, compared to $0 in 2024.
  • Indirect Home Improvement net charge-offs were $5.937 million (1.10%) in 2025, up from $3.809 million (0.67%) in 2024.
  • Marine net charge-offs were $142 thousand (0.20%) in 2025, down from $434 thousand (0.59%) in 2024.
  • Other Consumer net charge-offs were $155 thousand (4.10%) in 2025, compared to $150 thousand (4.60%) in 2024.
  • Commercial and Industrial net charge-offs were $354 thousand (0.12%) in 2025, down from $906 thousand (0.34%) in 2024.

Nonperforming Loans and Assets

• Nonperforming loans increased by $5.1 million to $18.7 million at December 31, 2025, from $13.6 million at December 31, 2024.
• The ratio of nonperforming loans to total gross loans rose to 0.71% at December 31, 2025, from 0.54% at December 31, 2024.
• Nonperforming assets (consisting of nonaccrual loans) were $18.7 million, or 0.59% of total assets, at December 31, 2025.
• The coverage ratio of ACL on loans to nonperforming loans was 170.6% at December 31, 2025, compared to 234.6% at December 31, 2024.
• Classified loans, all substandard, totaled $27.3 million at December 31, 2025, compared to $22.9 million at December 31, 2024.

Other Real Estate Owned (OREO)

• FS Bancorp, Inc. had no OREO properties as of December 31, 2025.

Mortgage Servicing Rights (MSRs)

• Gross mortgage servicing fees were $4.4 million for the year ended December 31, 2025.
• As of December 31, 2025, FS Bancorp, Inc. was servicing $1.67 billion of one-to-four-family loans, with MSRs recorded at an amortized cost of $8.6 million and an estimated fair value of $21.8 million.
• The holdback reserve for guaranteed loans was $1.8 million at December 31, 2025.

Investment Portfolio

Securities Available-for-Sale

• Total securities available-for-sale had an amortized cost of $310.1 million and a fair value of $288.7 million at December 31, 2025.
• Unrealized net losses of - $16.8 million, net of tax, were reflected in stockholders’ equity for available-for-sale securities at December 31, 2025.
• These unrealized losses were partially offset by unrealized gains on cash flow and fair value hedges of $992 thousand, net of tax, at December 31, 2025.

Securities Held-to-Maturity

• Total securities held-to-maturity had an amortized cost of $33.5 million and a fair value of $32.1 million at December 31, 2025.

Deposit Portfolio Breakdown

Total Deposits

• Total deposits increased by $334.2 million (14.29%) to $2.674 billion at December 31, 2025, from $2.339 billion at December 31, 2024.
• Brokered deposits increased by $219.1 million in 2025, compared to a decrease of - $288.2 million in 2024.
• Brokered deposits constituted 13.6% of total deposits at December 31, 2025.
• Uninsured deposits were approximately $718.1 million at December 31, 2025, compared to $652.7 million at December 31, 2024.

Deposit Types (Amounts in thousands)

• Noninterest-bearing checking: $647,197 (24.21% of total) in 2025, compared to $627,679 (26.83%) in 2024.
• Interest-bearing checking: $335,449 (12.55% of total) in 2025, compared to $176,561 (7.55%) in 2024, including $140.2 million of brokered deposits in 2025 and no brokered deposits in 2024.
• Savings: $164,056 (6.13% of total) in 2025, compared to $154,188 (6.59%) in 2024.
• Money market: $385,618 (14.42% of total) in 2025, compared to $341,615 (14.60%) in 2024, including $20.3 million of brokered deposits in 2025 and $279 thousand in 2024.
• Escrow accounts related to mortgages serviced: $10,926 (0.41% of total) in 2025, compared to $10,479 (0.45%) in 2024.
• Certificates: $1,130,396 (42.28% of total) in 2025, compared to $1,028,896 (43.98%) in 2024, including $202.1 million of brokered certificates of deposit in 2025 and $143.1 million in 2024.

Debt and Borrowings

• Outstanding advances from the FHLB of Des Moines totaled $129.3 million at December 31, 2025.
• FS Bancorp, Inc. had $276.9 million of additional short-term borrowing capacity with the FRB and $101.0 million in unsecured Fed Funds lines of credit with other correspondent financial institutions at December 31, 2025, with none outstanding.
• FS Bancorp, Inc. has $50.0 million in 3.75% fixed-to-floating rate subordinated notes due 2031.

Regulatory Capital

• At December 31, 2025, 1st Security Bank was categorized as “well capitalized” by the FDIC.
  • Total risk-based capital ratio was 13.96% (minimum 8.00%).
  • Tier 1 risk-based capital ratio was 12.73% (minimum 6.00%).
  • Tier 1 leverage capital ratio was 10.96% (minimum 4.00%).
  • CET1 capital ratio was 12.73% (minimum 4.50%).
• 1st Security Bank’s aggregate recorded loan balances for construction, land development, and land loans were 103.5% of regulatory capital at December 31, 2025.
• Loans on all commercial real estate were 274.9% of regulatory capital at December 31, 2025.

Outlook / Guidance

FS Bancorp, Inc. plans to diversify revenues, expand lending channels, and enhance its banking franchise by growing and diversifying its loan portfolio, maintaining strong asset quality, and emphasizing lower-cost core deposits to fund loan growth. The company intends to expand into new markets and deepen existing customer relationships through tailored products and services. Management believes the Allowance for Credit Losses (ACL) was adequate as of December 31, 2025, but acknowledges potential significant changes due to economic conditions and future events.