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
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
Metric
Actual
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%
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
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
K
Kidz AI Inc Enters Into Definitive 60-Month Enterprise AI Compute Services Agreement With Canopy Wave With Aggregate Contract Value Of $44.6 Million
FSBW•
