FS Bancorp, Inc. reported its financial results for the three and nine months ended September 30, 2024, showing notable changes in revenue, profitability, and strategic developments compared to the previous fiscal period.

For the third quarter of 2024, FS Bancorp achieved a net income of $10.3 million, an increase from $9.0 million in the same period of 2023. This growth was primarily driven by a decrease in the provision for income tax expense by $2.9 million and an increase in noninterest income by $985,000. The basic earnings per share rose to $1.32 from $1.15 year-over-year. However, net interest income slightly increased to $31.2 million from $30.6 million, reflecting a $3.8 million rise in interest income, offset by a $3.2 million increase in interest expense.

For the nine months ended September 30, 2024, net income reached $27.6 million, up from $26.3 million in 2023. The increase was attributed to a $2.8 million decrease in the provision for income taxes and a $1.5 million rise in noninterest income. However, net interest income for the nine-month period decreased to $92.0 million from $92.8 million, primarily due to a significant increase in interest expense, which rose by $16.0 million, driven by higher market interest rates.

Total assets remained stable at approximately $2.97 billion as of September 30, 2024, while total liabilities decreased to $2.68 billion from $2.71 billion at the end of 2023. Total deposits also fell by $95.0 million, primarily due to a decrease in brokered deposits. The company’s total stockholders’ equity increased to $288.9 million from $264.5 million, reflecting a strong capital position.

Strategically, FS Bancorp completed the acquisition of seven retail bank branches from Columbia State Bank in February 2023, enhancing its market presence in the Pacific Northwest. The company continues to focus on diversifying its revenue streams and expanding its lending channels. As of September 30, 2024, the loan portfolio composition was 62.1% real estate loans, 25.4% consumer loans, and 12.5% commercial business loans.

The company’s regulatory capital ratios indicate a well-capitalized status, with Tier 1 risk-based capital at 11.2% and total risk-based capital at 14.4%. The bank's capital ratios exceeded the minimum required levels, ensuring a solid foundation for future growth and stability.