FS Bancorp Announces Strong Q3 Earnings and Dividend
Mountlake Terrace, Tuesday, 21 October 2025.
FS Bancorp reported a net income of $9.2 million in Q3 2025, with $1.18 earnings per share, marking the 51st consecutive quarterly dividend, highlighting its robust financial performance.
Strong Financial Performance Amidst Economic Fluctuations
FS Bancorp, Inc. (NASDAQ: FSBW), headquartered in Mountlake Terrace, Washington, has reported a net income of $9.2 million for the third quarter of 2025, which translates to earnings of $1.18 per diluted share. Despite a slight decline from $10.3 million, or $1.29 per diluted share, in the same quarter of the previous year, the company maintains a strong performance. This marks the 51st consecutive quarterly dividend, showcasing its consistent financial health and commitment to shareholders [1].
Key Indicators of Growth
FS Bancorp’s total deposits increased by $133.1 million, or 5.2%, reaching $2.69 billion as of September 30, 2025, compared to $2.55 billion at the end of June 2025. This growth reflects the company’s ability to attract and retain customer deposits in a competitive banking environment. Meanwhile, borrowings saw a significant decrease of $105 million, or 44.8%, bringing them down to $129.3 million over the same period [1].
Loan Portfolio Expansion
The company’s loans receivable, net, increased by $17.3 million, or 0.7%, totaling $2.60 billion by the end of September 2025. This increase was primarily driven by growth in commercial and speculative construction, development loans, and commercial and industrial loans. The total loans grew to $2.63 billion, with notable contributions from commercial real estate and construction loans [1].
Strategic Financial Management
FS Bancorp’s strategic management of net interest margins (NIM) has been a critical factor in its financial success. The NIM increased by two basis points to 4.37% for the third quarter of 2025, highlighting the company’s effective asset-yield management and stable funding liabilities. Additionally, the provision for credit losses increased to $2.3 million, reflecting cautious credit risk management in an uncertain economic environment [1].
Outlook and Future Prospects
Looking ahead, FS Bancorp’s Board of Directors has approved the 51st consecutive quarterly cash dividend of $0.28 per common share, set to be paid on November 20, 2025, to shareholders recorded by November 6, 2025. This decision underscores the company’s stable financial footing and commitment to returning value to shareholders, even amid economic fluctuations [1].