Skip to main content

FS Bancorp, Inc. Reports $36.1 Million of Net Income or $4.56 Per Diluted Share for 2023 and a 4% Increase in its Quarterly Dividend to $0.26 Per Share

MOUNTLAKE TERRACE, Wash., Jan. 24, 2024 (GLOBE NEWSWIRE) — FS Bancorp, Inc. (NASDAQ: FSBW) (the “Company”), the holding company for 1st Security Bank of Washington (the “Bank”), today reported 2023 net income of $36.1 million, or $4.56 per diluted share, compared to $29.6 million, or $3.70 per diluted share for 2022. Fourth quarter net income was $9.8 million, or $1.23 per diluted share, compared to $7.6 million, or $0.97 per diluted share, for the comparable quarter one year ago.

“Utilizing the Bank’s highly diversified balance sheet, our team achieved our goal of producing strong financial results in varying rate and economic environments,” stated Joe Adams, CEO. “We are also pleased that our Board of Directors increased and approved our forty-fourth consecutive quarterly cash dividend.  The quarterly dividend will be paid on February 22, 2024, to shareholders of record as of February 8, 2024,” concluded Adams.

“The integration of the seven retail branches acquired from Columbia State Bank in the first quarter of 2023, provided a framework for our balanced, focused growth throughout 2023,” noted Matthew Mullet, CFO.

2023 Fourth Quarter and Year End Highlights

  • Net income was $9.8 million for the fourth quarter of 2023, compared to $9.0 million in the previous quarter, and $7.6 million for the comparable quarter one year ago;
  • Our Board of Directors approved a $0.01 increase in the quarterly dividend to $0.26 per share, or $1.04 annually;
  • A closed branch in Centralia, Washington recorded as an other real estate owned (“OREO”) property in the fourth quarter of 2022 was sold in the fourth quarter of 2023 with a resulting gain of $148,000;
  • As of the fourth quarter of 2023, the Company has been negotiating to sell a portion of its mortgage servicing rights (“MSRs”).  The MSRs related to mortgages with Fannie Mae and Freddie Mac serviced loans with an aggregate principal balance of approximately $1.30 billion of its $2.83 billion total servicing portfolio.  In addition, the Company transferred $8.1 million of residential mortgage loan servicing rights to held for sale. The sale is projected to close in the first quarter of 2024;
  • Total deposits increased $67.9 million, or 2.8%, to $2.52 billion at December 31, 2023, compared to $2.45 billion at September 30, 2023, and increased $394.6 million, or 18.5%, from $2.13 billion at December 31, 2022, with noninterest-bearing deposit totals of $670.8 million at December 31, 2023, $670.2 million at September 30, 2023, and $554.2 million at December 31, 2022;
  • Loans receivable, net increased $25.9 million, or 1.1%, to $2.40 billion at December 31, 2023, compared to $2.38 billion at September 30, 2023, and increased $210.6 million, or 9.6% from $2.19 billion at December 31, 2022;
  • Consumer loans, of which 88.1% are home improvement loans, increased $6.7 million, or 1.0%, to $646.8 million at December 31, 2023, compared to $640.1 million in the previous quarter and increased $77.2 million, or 13.6% from $569.6 million in the comparable quarter one year ago. During the three months ended December 31, 2023, originations in the consumer portfolio included 77.3% of home improvement loans originated with a Fair Isaac and Company, Incorporated (“FICO”) score above 720 and 91.5% of home improvement loans with a UCC-2 security filing;
  • Segment reporting reflected net income of $10.0 million for the Commercial and Consumer Banking segment and a net loss of $254,000 for the Home Lending segment in the fourth quarter of 2023, compared to net income of $8.3 million and net loss of $684,000 in the fourth quarter of 2022, respectively;
  • The ratio of available unencumbered cash and secured borrowing capacity at the Federal Home Loan Bank (“FHLB”) and the Federal Reserve Bank to uninsured deposits was 224% at December 31, 2023, compared to 216% in the prior quarter. The average deposit size per FDIC-insured account at the Bank was $33,000 at both December 31, 2023 and September 30, 2023;
  • Regulatory capital ratios at the Bank were 13.4% for total risk-based capital and 10.4% for Tier 1 leverage capital at December 31, 2023, compared to 13.1% for total risk-based capital and 10.3% for Tier 1 leverage capital at September 30, 2023;
  • The return on average assets increased nine basis points to 1.27% for the year ended December 31, 2023 compared to 1.18% for the year ended December 31, 2022; and
  • The allowance for credit losses on loans (“ACLL”) to gross loans receivable increased to 1.30% at December 31, 2023, compared to 1.27% at September 30, 2023, and 1.26% at December 31, 2022.

Segment Reporting

The Company reports two segments: Commercial and Consumer Banking and Home Lending. The Commercial and Consumer Banking segment provides diversified financial products and services to our commercial and consumer customers. These products and services include deposit products; residential, consumer, business and commercial real estate lending portfolios and cash management services. This segment is also responsible for the management of the investment portfolio and other assets of the Bank. The Home Lending segment originates one-to-four-family residential mortgage loans primarily for sale in the secondary markets as well as loans held for investment.

The tables below provide a summary of segment reporting at or for the three months and years ended December 31, 2023 and 2022 (dollars in thousands):

 At or For the Three Months Ended December 31, 2023 
Condensed income statement: Commercial and Consumer Banking  Home Lending  Total 
Net interest income (1) $28,405  $2,050  $30,455 
Provision for credit losses  (939)  (463)  (1,402)
Noninterest income (2)  2,602   2,854   5,456 
Noninterest expense (3)  (17,668)  (4,765)  (22,433)
Income (loss) before (provision) benefit for income taxes  12,400   (324)  12,076 
(Provision) benefit for income taxes  (2,374)  70   (2,304)
Net income (loss) $10,026  $(254) $9,772 
Total average assets for period ended $2,395,363  $548,002  $2,943,365 
Full-time employees (“FTEs”)  447   123   570 

 At or For the Three Months Ended December 31, 2022 
Condensed income statement: Commercial and Consumer Banking  Home Lending  Total 
Net interest income (1) $26,375  $2,927  $29,302 
Provision for credit losses  (1,337)  (248)  (1,585)
Noninterest income (2)  2,214   1,482   3,696 
Noninterest expense (3)  (16,845)  (5,004)  (21,849)
Income (loss) before (provision) benefit for income taxes  10,407   (843)  9,564 
(Provision) benefit for income taxes  (2,101)  159   (1,942)
Net income (loss) $8,306  $(684) $7,622 
Total average assets for period ended $2,154,427  $457,315  $2,611,742 
FTEs  405   132   537 

 At or For the Year Ended December 31, 2023 
 Commercial     
 and Consumer     
Condensed income statement: Banking  Home Lending  Total 
Net interest income (1) $111,737  $11,566  $123,303 
Provision for credit losses  (3,494)  (1,280)  (4,774)
Noninterest income (2)  10,368   10,122   20,490 
Noninterest expense (3)  (73,767)  (19,980)  (93,747)
Income before provision for income taxes  44,844   428   45,272 
Provision for income taxes  (9,132)  (87)  (9,219)
Net income $35,712  $341  $36,053 
Total average assets for period ended $2,315,806  $527,442  $2,843,248 
FTEs  447   123   570 

 At or For the Year Ended December 31, 2022 
 Commercial        
 and Consumer        
Condensed income statement: Banking  Home Lending  Total 
Net interest income (1) $93,358  $10,922  $104,280 
Provision for credit losses  (5,064)  (1,153)  (6,217)
Noninterest income (2)  10,158   7,950   18,108 
Noninterest expense (3)  (59,723)  (19,460)  (79,183)
Income (loss) before (provision) benefit for income taxes  38,729   (1,741)  36,988 
(Provision) benefit for income taxes  (7,684)  345   (7,339)
Net income (loss) $31,045  $(1,396) $29,649 
Total average assets for period ended $2,018,263  $417,431  $2,435,694 
FTEs  405   132   537 

________________________

(1) Net interest income is the difference between interest earned on assets and the cost of liabilities to fund those assets. Interest earned includes actual interest earned on segment assets and, if the segment has excess liabilities, interest credits for providing funding to the other segment. The cost of liabilities includes interest expense on segment liabilities and, if the segment does not have enough liabilities to fund its assets, a funding charge based on the cost of assigned liabilities to fund segment assets.
   
(2) Noninterest income includes activity from certain residential mortgage loans that were initially originated for sale and measured at fair value, and subsequently transferred to loans held for investment. Gains and losses from changes in fair value for these loans are reported in earnings as a component of noninterest income. For the three months and year ended December 31, 2023, the Company recorded a net increase in fair value of $733,000 and $447,000, as compared to a net increase in fair value of $181,000 and a net decrease in fair value of $1.7 million for the three months and year ended December 31, 2022 , respectively.  As of December 31, 2023 and 2022, there were $15.1 million and $14.0 million, respectively, in residential mortgage loans recorded at fair value as they were previously transferred from loans held for sale to loans held for investment.
   
(3) Noninterest expense includes allocated overhead expense from general corporate activities. Allocation is determined based on a combination of segment assets and FTEs. For the three months and year ended December 31, 2023 and 2022, the Home Lending segment included allocated overhead expenses of $1.4 million and $1.5 million, respectively. For the year ended December 31, 2023 and 2022, the Home Lending segment included allocated overhead expenses of $6.1 million and $6.2 million, respectively.
   

Asset Summary

Total assets increased $52.6 million, or 1.8%, to $2.97 billion at December 31, 2023, compared to $2.92 billion at September 30, 2023, and increased $339.8 million, or 12.9%, from $2.63 billion at December 31, 2022.  The increase in total assets at December 31, 2023 compared to September 30, 2023 was primarily due to increases in securities available-for-sale (“AFS”) of $41.0 million, loans receivable, net of $25.9 million and loans held for sale (“HFS”) of $7.0 million, partially offset by decreases of $13.9 million in interest-bearing deposits at other financial institutions and $8.2 million in other assets.  The increase in securities AFS was attributable to purchases of variable and shorter duration securities, as well as increases in fair value due to improving market rates.  The increase in loans receivable, net was due to organic loan growth. The decrease in other assets was principally due to declines in the fair value of interest rate swaps.  The increase in total assets at December 31, 2023 compared to December 31, 2022 was primarily due to increases in loans receivable, net of $210.6 million, primarily due to organic loan growth which was primarily funded through deposits received from the purchase of seven retail branches from Columbia State Bank completed on February 24, 2023 (“Branch Acquisition”). The increase in total assets at December 31, 2023 compared to December 31, 2022 also included increase in securities available-for-sale of $63.7 million, total cash and cash equivalents of $24.3 million, certificates of deposit (“CDs”) at other financial institutions of $19.5 million, core deposit intangible (“CDI”), net of $14.0 million, loans HFS of $5.6 million, premises and equipment of $5.5 million, accrued interest receivable of $2.9 million, goodwill of $1.3 million, and other assets of $1.2 million.  These increases were partially offset by a decrease in FHLB stock of $8.5 million.

LOAN PORTFOLIO                        
(Dollars in thousands) December 31, 2023  September 30, 2023  December 31, 2022 
  Amount  Percent  Amount  Percent  Amount  Percent 
REAL ESTATE LOANS                        
Commercial $366,328   15.1% $364,673   15.2% $334,059   15.1%
Construction and development  303,054   12.5   289,873   12.0   342,591   15.4 
Home equity  69,488   2.9   67,103   2.8   55,387   2.5 
One-to-four-family (excludes HFS)  567,742   23.3   540,670   22.5   469,485   21.2 
Multi-family  223,769   9.2   243,661   10.1   219,738   9.9 
Total real estate loans  1,530,381   63.0   1,505,980   62.6   1,421,260   64.1 
                         
CONSUMER LOANS                        
Indirect home improvement  569,903   23.4   562,650   23.4   495,941   22.3 
Marine  73,310   3.0   73,887   3.1   70,567   3.2 
Other consumer  3,540   0.1   3,547   0.1   3,064   0.1 
Total consumer loans  646,753   26.5   640,084   26.6   569,572   25.6 
                         
COMMERCIAL BUSINESS LOANS                        
Commercial and industrial  238,301   9.8   236,520   9.8   196,791   8.9 
Warehouse lending  17,580   0.7   23,489   1.0   31,229   1.4 
Total commercial business loans  255,881   10.5   260,009   10.8   228,020   10.3 
Total loans receivable, gross  2,433,015   100.0%  2,406,073   100.0%  2,218,852   100.0%
                         
Allowance for credit losses on loans  (31,534)      (30,501)      (27,992)    
Total loans receivable, net $2,401,481      $2,375,572      $2,190,860     
                         

Loans receivable, net increased $25.9 million to $2.40 billion at December 31, 2023, from $2.38 billion at September 30, 2023, and increased $210.6 million from $2.19 billion at December 31, 2022. The increase in total real estate loans at December 31, 2023, compared to the prior quarter reflects increases in one-to-four-family loans (excluding loans HFS) of $27.1 million, construction and development loans of $13.2 million, home equity loans of $2.4 million, commercial real estate loans of $1.7 million and consumer loans of $7.0 million.  These increases were partially offset by a $19.9 million decrease in multi-family loans and a $4.1 million decrease in commercial business loans, primarily as a result of a $5.9 million decrease in warehouse lending.

A breakdown of commercial real estate (“CRE”) loans at the dates indicated were as follows:

(Dollars in thousands)        
  December 31, 2023 December 31, 2022
CRE by Type: Amount Amount
Agriculture $3,799  $ 
CRE Non-owner occupied:        
Office  42,739   44,757 
Retail  38,691   35,796 
Hospitality/restaurant  28,007   32,367 
Self storage  21,381   16,854 
Mixed use  19,331   16,646 
Industrial  16,978   21,013 
Senior housing/assisted living  8,505   8,685 
Other (1)  8,365   4,817 
Land  3,936   6,683 
Education/worship  2,620   2,717 
Total CRE non-owner occupied  190,553   190,335 
CRE owner occupied:        
Industrial  66,048   55,701 
Office  41,495   30,437 
Retail  22,020   20,622 
Hospitality/restaurant  11,065   12,259 
Other (2)  8,522   4,354 
Car wash  7,767   7,960 
Automobile related  7,530   8,086 
Education/worship  4,606   1,288 
Mixed use  2,923   3,017 
Total CRE owner occupied  171,976   143,724 
Total $366,328  $334,059 

________________________

(1) Primarily includes: mobile home park: $2.3 million and $2.4 million, other: $4.4 million and $1.5 million, RV park: $699,000 and $0.0, and automobile related: $608,000 and $0.0 for December 31, 2023 and 2022, respectively.
   
(2) Primarily includes: other: $5.5 million and $3.1 million, gas stations: $1.7 million and $0.0, and non-profit: $922,000 and $948,000, for December 31, 2023 and 2022, respectively.
   

A breakdown of construction loans at the dates indicated were as follows:

(Dollars in thousands)                
  December 31, 2023  December 31, 2022 
Construction Types: Amount  Percent  Amount  Percent 
Commercial construction – office $4,699   1.6% $2,009   0.6%
Commercial construction – self storage  17,445   5.8   20,000   5.8 
Commercial construction – car wash  7,742   2.6   3,417   1.0 
Multi-family  56,065   18.5   75,254   22.0 
Custom construction – single family residential & single family manufactured residential  47,230   15.6   32,465   9.5 
Custom construction – land, lot and acquisition and development  6,377   2.1   5,438   1.6 
Speculative residential construction – vertical  131,336   43.3   164,368   48.0 
Speculative residential construction – land, lot and acquisition and development  32,160   10.6   39,640   11.6 
Total $303,054   100.0% $342,591   100.0%
                 

Originations of one-to-four-family loans to purchase and to refinance a home for the periods indicated were as follows:

(Dollars in thousands) For the Three Months Ended      
  December 31, 2023  September 30, 2023      
  Amount Percent  Amount Percent   $ Change  % Change 
Purchase $110,458 90.7% $139,345 92.1% $(28,887) (20.7)%
Refinance  11,290 9.3   12,001 7.9   (711) (5.9)
Total $121,748 100.0% $151,346 100.0% $(29,598) (19.6)%

(Dollars in thousands) For the Three Months Ended December 31,         
  2023  2022         
  Amount  Percent  Amount  Percent  $ Change  % Change 
Purchase $110,458   90.7% $115,102   87.8% $(4,644)  (4.0)%
Refinance  11,290   9.3   16,045   12.2   (4,755)  (29.6)
Total $121,748   100.0% $131,147   100.0% $(9,399)  (7.2)%

(Dollars in thousands) For the Year Ended December 31,         
  2023  2022         
  Amount  Percent  Amount  Percent  $ Change  % Change 
Purchase $497,669   91.6% $664,361   80.2% $(166,692)  (25.1)%
Refinance  45,925   8.4   164,380   19.8   (118,455)  (72.1)
Total $543,594   100.0% $828,741   100.0% $(285,147)  (34.4)%
                         

The decrease in the origination of loans to purchase and refinance, compared to the comparable period in 2022, reflects the impact of higher market interest rates and low available housing inventory in our market areas.

During the quarter ended December 31, 2023, the Company sold $87.5 million of one-to-four-family loans compared to $117.6 million during the previous quarter and $76.2 million during the same quarter one year ago. Gross margins on home loan sales increased slightly to 3.09% for the quarter ended December 31, 2023, compared to 3.08% in the previous quarter and increased from 2.15% in the same quarter one year ago. Gross margins are defined as the margin on loans sold (cash sales) without the impact of deferred costs.

Liabilities and Equity Summary

Changes in deposits at the dates indicated are as follows:

(Dollars in thousands)                        
  December 31, 2023  September 30, 2023         
Transactional deposits: Amount  Percent  Amount  Percent  $ Change  % Change 
Noninterest-bearing checking $654,048   25.9% $643,670   26.2% $10,378   1.6%
Interest-bearing checking (1)  244,028   9.7   219,469   8.9   24,559   11.2 
Escrow accounts related to mortgages serviced (2)  16,783   0.7   26,488   1.1   (9,705)  (36.6)
Subtotal  914,859   36.3   889,627   36.2   25,232   2.8 
Savings  151,630   6.0   157,901   6.4   (6,271)  (4.0)
Money market (3)  359,063   14.2   389,962   15.9   (30,899)  (7.9)
Subtotal  510,693   20.2   547,863   22.3   (37,170)  (6.8)
Certificates of deposit less than $100,000 (4)  587,858   23.3   527,032   21.5   60,826   11.5 
Certificates of deposit of $100,000 through $250,000  429,373   17.0   406,545   16.6   22,828   5.6 
Certificates of deposit of $250,000 and over  79,540   3.2   83,377   3.4   (3,837)  (4.6)
Subtotal  1,096,771   43.5   1,016,954   41.5   79,817   7.8 
Total $2,522,323   100.0% $2,454,444   100.0% $67,879   2.8%
                         

(Dollars in thousands)                        
  December 31, 2023  December 31, 2022         
Transactional deposits: Amount  Percent  Amount  Percent  $ Change  % Change 
Noninterest-bearing checking $654,048   25.9% $537,938   25.3% $116,110   21.6%
Interest-bearing checking (1)  244,028   9.7   135,127   6.3   108,901   80.6 
Escrow accounts related to mortgages serviced (2)  16,783   0.7   16,236   0.8   547   3.4 
Subtotal  914,859   36.3   689,301   32.4   225,558   32.7 
Savings  151,630   6.0   134,358   6.3   17,272   12.9 
Money market (3)  359,063   14.2   574,290   27.0   (215,227)  (37.5)
Subtotal  510,693   20.2   708,648   33.3   (197,955)  (27.9)
Certificates of deposit less than $100,000 (4)  587,858   23.3   440,785   20.7   147,073   33.4 
Certificates of deposit of $100,000 through $250,000  429,373   17.0   195,447   9.2   233,926   119.7 
Certificates of deposit of $250,000 and over  79,540   3.2   93,560   4.4   (14,020)  (15.0)
Subtotal  1,096,771   43.5   729,792   34.3   366,979   50.3 
Total $2,522,323   100.0% $2,127,741   100.0% $394,582   18.5%

_______________________

(1) Includes $70.2 million, $50.1 million, and $2.3 million of brokered deposits at December 31, 2023, September 30, 2023 and December 31, 2022, respectively.
(2) Noninterest-bearing accounts.
(3) Includes $1,000, $51,000, and $59.7 million of brokered deposits at December 31, 2023, September 30, 2023 and December 31, 2022, respectively.
(4) Includes $361.3 million, $323.3 million, and $332.0 million of brokered deposits at December 31, 2023, September 30, 2023 and December 31, 2022, respectively.
   

At December 31, 2023, CDs, which include retail and nonretail CDs, totaled $1.10 billion, compared to $1.02 billion at September 30, 2023, and $729.8 million at December 31, 2022, with nonretail CDs representing 34.2%, 33.2% and 49.3% of total CDs at such dates, respectively.  At December 31, 2023, nonretail CDs, which include brokered CDs, online CDs, and public funds CDs, increased $37.3 million to $374.5 million, compared to $337.2 million at September 30, 2023, primarily due to an increase of $38.0 million in brokered CDs. Nonretail CDs totaled $374.5 million at December 31, 2023, compared to $359.6 million at December 31, 2022.

At December 31, 2023, the Bank had uninsured deposits of approximately $606.5 million, compared to approximately $591.6 million in September 30, 2023, and approximately $560.0 million at December 31, 2022.  The uninsured amounts are estimated based on the methodologies and assumptions used for the Bank’s regulatory reporting requirements.

At December 31, 2023, borrowings totaled $93.7 million and were comprised of advances from the Federal Reserve Bank’s Term Funding Program of $89.9 million and FHLB fixed-rate advances of $3.9 million.  Borrowings decreased $28.1 million to $93.7 million at December 31, 2023, from $121.9 million at September 30, 2023, and decreased $92.8 million, from $186.5 million at December 31, 2022. The decrease was partially attributable to a shift in funding mix from overnight borrowings to wholesale brokered CDs, as well as liquidity from the Branch Acquisition utilized to pay down borrowings and brokered deposits.

Total stockholders’ equity increased $13.8 million, to $264.5 million at December 31, 2023, from $250.7 million at September 30, 2023, and increased $32.8 million from $231.7 million at December 31, 2022. The increase in stockholders’ equity at December 31, 2023, compared to September 30, 2023, reflects net income of $9.8 million, partially offset by dividends paid of $2.0 million. In addition, stockholders’ equity was positively impacted by unrealized net gains in securities available-for-sale of $12.7 million, net of tax, partially offset by unrealized net losses on interest rate swaps of $6.6 million, net of tax, reflecting changes in market interest rates during the quarter, resulting in a $6.1 million net decrease in accumulated other comprehensive loss. Book value per common share was $34.36 at December 31, 2023, compared to $32.58 at September 30, 2023, and $30.42 at December 31, 2022.

The Bank is considered well capitalized under the minimum capital requirements established by the Federal Deposit Insurance Corporation (“FDIC”) with a total risk-based capital ratio of 13.4%, a Tier 1 leverage capital ratio of 10.4%, and a common equity Tier 1 (“CET1”) capital ratio of 12.1% at December 31, 2023.

The Company exceeded all regulatory capital requirements with a total risk-based capital ratio of 13.7%, a Tier 1 leverage capital ratio of 9.0%, and a CET1 ratio of 10.5% at December 31, 2023.

Credit Quality

The ACLL totaled to $31.5 million, or 1.30% of gross loans receivable (excluding loans HFS) at December 31, 2023, compared to $30.5 million, or 1.27% of gross loans receivable (excluding loans HFS) at September 30, 2023, and $28.0 million, or 1.26% of gross loans receivable (excluding loans HFS) at December 31, 2022. The $1.0 million increase in the ACLL at December 31, 2023, compared to the prior quarter was primarily due to an increase in total loans and the increase in nonperforming loans. The $3.5 million increase in the ACLL at December 31, 2023, from the prior year, was primarily due to organic loan growth, increases in nonperforming loans, and the addition of loans acquired in the Branch Acquisition. The allowance for credit losses on unfunded loan commitments decreased $266,000 to $1.5 million at December 31, 2023, compared to $1.8 million at September 30, 2023, and decreased $1.0 million from $2.5 million at December 31, 2022. The decrease in allowance for unfunded loan commitments was primarily attributable to a decrease in unfunded construction loan commitments.

Nonperforming loans increased $5.3 million to $11.0 million at December 31, 2023, from $5.6 million at September 30, 2023, and increased $2.3 million from $8.7 million at December 31, 2022. The increase in nonperforming loans at December 31, 2023, from the prior quarter was primarily due to the addition of one nonperforming construction and development loan (owner occupied commercial space) of $4.7 million and an increase in commercial business loans of $569,000.  The increase in nonperforming loans compared to the prior year was primarily due to the one nonperforming construction and development loan of $4.7 million mentioned above and the addition of a commercial real estate loan of $1.1 million, partially offset by a decrease in commercial business loans of $3.7 million primarily attributable to a $3.5 million commercial business loan being upgraded to performing from nonperforming status.   

Loans classified as substandard or worse increased $5.7 million to $24.9 million at December 31, 2023, compared to $19.2 million at September 30, 2023, and increased $4.7 million from $20.2 million at December 31, 2022. The increase in substandard loans at December 31, 2023, compared to the prior quarter was primarily attributable to increases of $4.7 million in construction and development loans and $327,000 in commercial real estate loans, and compared to the prior year was primarily due to increases of $4.7 million in construction and development loans and $787,000 in indirect home improvement loans, partially offset by a decrease of $1.5 million in commercial real estate loans. There was no other real estate owned (“OREO”) property at December 31, 2023, and one OREO property (a closed branch at Centralia, Washington) in the amount of $570,000 at both September 30, 2023, and at December 31, 2022.

Operating Results

Net interest income increased $1.2 million to $30.5 million for the three months ended December 31, 2023, from $29.3 million for the three months ended December 31, 2022, primarily as a result of an increase in interest income on loans receivable, including fees. Total interest income for the three months ended December 31, 2023, increased $8.6 million compared to the same period last year, primarily due to an increase of $7.1 million in interest income on loans receivable, including fees, impacted primarily as a result new loans being originated at higher rates and variable rate loans repricing higher following increases in market interest rates. Total interest expense increased $7.5 million to $14.0 million for the three months ended December 31, 2023, compared to the same period last year, primarily as a result of higher market interest rates, higher utilization of borrowings and a shift in deposit mix from transactional accounts to higher cost CDs.

For the year ended December 31, 2023, net interest income increased $19.0 million to $123.3 million, from $104.3 million for the year ended December 31, 2022 for the same reasons described above for the three-month comparison, with an increase in total interest income of $48.5 million and an increase in interest expense of $29.5 million.

NIM decreased 38 basis points to 4.24% for the three months ended December 31, 2023, from 4.62% for the same period in the prior year, and increased two basis points to 4.48% for the year ended December 31, 2023, from 4.46% for the year ended December 31, 2022. The changes in NIM for both the three months and year ended December 31, 2023, compared to the same period in 2022, reflects new loan originations at higher market interest rates, variable rate interest-earning assets repricing higher following increases in market interest rates, offset by the rising cost of deposits and borrowings. The benefit from higher rates and interest earning assets were offset by rising deposit and borrowing costs. Increases in average balances of higher costing CDs and borrowings placed additional pressure on the NIM, which resulted in a decrease for the three months ended December 31, 2023, compared to the same period in 2022.

The average total cost of funds, including noninterest-bearing checking, increased 98 basis points to 2.10% for the three months ended December 31, 2023, from 1.12% for the three months ended December 31, 2022. This increase was predominantly due to the rise in cost for market rates for deposits. The average total cost of funds increased 105 basis points to 1.72% for the year ended December 31, 2023, from 0.67% for the year ended December 31, 2022, also reflecting increases in market interest rates over last year. Management remains focused on matching deposit/liability duration with the duration of loans/assets where appropriate.

For the three months and year ended December 31, 2023, the provision for credit losses on loans was $1.7 million and $5.8 million, respectively, compared to $1.6 million and $6.2 million, respectively for the three months and year ended December 31, 2022. The provision for credit losses on loans reflects an increase in total loans receivable, an increase in nonperforming loans, and net charge-offs in indirect home improvement and marine loans.

During the three months ended December 31, 2023, net charge-offs totaled $635,000, compared to $564,000 for the same period last year, primarily due to increased net charge-offs of $290,000 in indirect home improvement loans and $5,000 in deposit overdrafts, partially offset by decreases of $214,000 in marine loans and $10,000 in other loans. Net charge-offs totaled $2.2 million during the year ended December 31, 2023, compared to $1.4 million during the year ended December 31, 2022. This increase was primarily due to net charge-off increases of $1.3 million in indirect home improvement loans, partially offset by a net decrease of $395,000 in deposit overdraft charge-offs. Management attributes the increase in net charge-offs over the year primarily to higher balances of indirect consumer loans and volatile economic conditions.

Noninterest income increased $1.8 million, to $5.5 million, for the three months ended December 31, 2023, from $3.7 million for the three months ended December 31, 2022. The increase reflects an $821,000 increase in gain on sale of loans, a $540,000 increase in other noninterest income and a $382,000 increase in service charges and fee income. Noninterest income increased $2.4 million to $20.5 million for the year ended December 31, 2023, from $18.1 million for the year ended December 31, 2022. This increase was primarily the result of a $2.6 million increase in service charges and fee income and a $931,000 increase in other noninterest income, partially offset by a decrease of $1.2 million in gain on sale of loans. The increase in service charges and fee income was primarily due to a reduction in servicing rights amortization as a result of fewer prepayments, and an increase in deposit fee income attributable to deposits acquired in the Branch Acquisition.  The increase in other noninterest income was primarily due to increases in fair value for loans evaluated under the fair value option.

Noninterest expense increased $584,000 to $22.4 million for the three months ended December 31, 2023, from $21.8 million for the three months ended December 31, 2022. The increase in noninterest expense was primarily a result of increases of $807,000 in amortization of core deposit intangible, $368,000 in occupancy, $240,000 in FDIC insurance, $239,000 in operations and $220,000 in salaries and benefits. These increases were partially offset by decreases of $898,000 in acquisition costs and $201,000 in loan costs, and a gain on sale of OREO of $148,000. Noninterest expense increased $14.6 million, to $93.7 million for the year ended December 31, 2023, from $79.2 million for the year ended December 31, 2022. Increases during the year ended December 31, 2023, as compared to the same period last year included $6.0 million in salaries and benefits, $2.8 million in amortization of core deposit intangible, $2.3 million in operations, $1.2 million in occupancy, and $1.2 million in FDIC insurance.  The increases in noninterest expense for both the current quarter and 2023 year end, compared to the same periods the prior year were primarily related to the Branch Acquisition.

About FS Bancorp

FS Bancorp, Inc., a Washington corporation, is the holding company for 1st Security Bank of Washington. The Bank provides loan and deposit services to customers who are predominantly small- and middle-market businesses and individuals in Washington and Oregon through its 27 Bank branches, one headquarters office that produces loans and accepts deposits, and loan production offices in various suburban communities in the greater Puget Sound area, the Kennewick-Pasco-Richland metropolitan area of Washington, also known as the Tri-Cities, and in Vancouver, Washington. The Bank services home mortgage customers throughout the Northwest predominantly in Washington State including the Puget Sound, Tri-Cities and Vancouver home lending markets.

Forward-Looking Statements

When used in this press release and in other documents filed with or furnished to the Securities and Exchange Commission (the “SEC”), in press releases or other public stockholder communications, or in oral statements made with the approval of an authorized executive officer, the words or phrases “believe,” “will,” “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “project,” “plans,” or similar expressions are intended to identify “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not historical facts but instead represent management’s current expectations and forecasts regarding future events, many of which are inherently uncertain and outside of our control. Actual results may differ, possibly materially from those currently expected or projected in these forward-looking statements. Factors that could cause the Company’s actual results to differ materially from those described in the forward-looking statements, include but are not limited to, the following: potential adverse impacts to economic conditions in the Company’s local market areas, other markets where the Company has lending relationships, or other aspects of the Company’s business operations or financial markets, including, without limitation, as a result of employment levels; labor shortages, the effects of inflation, a potential recession or slowed economic growth; changes in the interest rate environment, including the past increases in the Federal Reserve benchmark rate and duration at which such increased interest rate levels are maintained, which could adversely affect our revenues and expenses, the values of our assets and obligations, and the availability and cost of capital and liquidity; the impact of  continuing high inflation and the current and future monetary policies of the Federal Reserve in response thereto; the effects of any federal government shutdown; increased competitive pressures, changes in the interest rate environment, adverse changes in the securities markets, the Company’s ability to successfully realize the anticipated benefits of the Branch Acquisition, including customer acquisition and retention; the Company’s ability to execute its plans to grow its residential construction lending, mortgage banking, and warehouse lending operations, and the geographic expansion of its indirect home improvement lending; challenges arising from expanding into new geographic markets, products, or services; secondary market conditions for loans and the Company’s ability to originate loans for sale and sell loans in the secondary market; volatility in the mortgage industry; fluctuations in deposits; liquidity issues, including our ability to borrow funds or raise additional capital, if necessary; the impact of bank failures or adverse developments at other banks and related negative press about the banking industry in general on investor and depositor sentiment; legislative and regulatory changes, including changes in banking, securities and tax law, in regulatory policies and principles, or the interpretation of regulatory capital or other rules; disruptions, security breaches, or other adverse events, failures or interruptions in, or attacks on, our information technology systems or on the third-party vendors who perform critical processing functions for us; the effects of climate change, severe weather events, natural disasters, pandemics, epidemics and other public health crises, acts of war or terrorism, and other external events on our business; and other factors described in the Company’s latest Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and other reports filed with or furnished to the SEC which are available on its website at www.fsbwa.com and on the SEC’s website at www.sec.gov. Any of the forward-looking statements that the Company makes in this press release and in the other public statements are based upon management’s beliefs and assumptions at the time they are made and may turn out to be incorrect because of the inaccurate assumptions the Company might make, because of the factors illustrated above or because of other factors that cannot be foreseen by the Company. Therefore, these factors should be considered in evaluating the forward-looking statements, and undue reliance should not be placed on such statements. The Company does not undertake and specifically disclaims any obligation to revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements. These risks could cause the Company’s actual results for 2024 and beyond to differ materially from those expressed in any forward-looking statements made by, or on behalf of the Company and could negatively affect its operating and stock performance.

 
FS BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except share amounts) (Unaudited)
 
              Linked  Year 
  December 31,  September 30,  December 31,  Quarter  Over Year 
  2023  2023  2022  % Change  % Change 
ASSETS                    
Cash and due from banks $17,083  $18,137  $10,525   (6)  62 
Interest-bearing deposits at other financial institutions  48,608   62,536   30,912   (22)  57 
Total cash and cash equivalents  65,691   80,673   41,437   (19)  59 
Certificates of deposit at other financial institutions  24,167   17,636   4,712   37   413 
Securities available-for-sale, at fair value  292,933   251,917   229,252   16   28 
Securities held-to-maturity, net  8,455   8,455   8,469      NM 
Loans held for sale, at fair value  25,668   18,636   20,093   38   28 
Loans receivable, net  2,401,481   2,375,572   2,190,860   1   10 
Accrued interest receivable  14,005   13,925   11,144   1   26 
Premises and equipment, net  30,578   30,926   25,119   (1)  22 
Operating lease right-of-use  6,627   7,042   6,226   (6)  6 
Federal Home Loan Bank stock, at cost  2,114   3,696   10,611   (43)  (80)
Other real estate owned     570   570   (100)  (100)
Deferred tax asset, net  6,725   7,424   6,670   (9)  1 
Bank owned life insurance (“BOLI”), net  37,719   37,480   36,799   1   3 
Servicing rights, held at the lower of cost or fair value  9,090   17,657   18,017   (49)  (50)
Servicing rights held for sale, held at the lower of cost or fair value  8,086         NM   NM 
Goodwill  3,592   3,592   2,312      55 
Core deposit intangible, net  17,343   18,323   3,369   (5)  415 
Other assets  18,395   26,548   17,240   (31)  7 
TOTAL ASSETS $2,972,669  $2,920,072  $2,632,900   2   13 
LIABILITIES                    
Deposits:                    
Noninterest-bearing accounts $670,831  $670,158  $554,174   NM   21 
Interest-bearing accounts  1,851,492   1,784,286   1,573,567   4   18 
Total deposits  2,522,323   2,454,444   2,127,741   3   19 
Borrowings  93,746   121,895   186,528   (23)  (50)
Subordinated notes:                    
Principal amount  50,000   50,000   50,000       
Unamortized debt issuance costs  (473)  (489)  (539)  (3)  (12)
Total subordinated notes less unamortized debt issuance costs  49,527   49,511   49,461   NM   NM 
Operating lease liability  6,848   7,269   6,474   (6)  6 
Other liabilities  35,737   36,288   30,999   (2)  15 
Total liabilities  2,708,181   2,669,407   2,401,203   1   13 
COMMITMENTS AND CONTINGENCIES                    
STOCKHOLDERS’ EQUITY                    
Preferred stock, $.01 par value; 5,000,000 shares authorized; none issued or outstanding               
Common stock, $.01 par value; 45,000,000 shares authorized; 7,800,545 shares issued and outstanding at December 31, 2023, 7,796,095 at September 30, 2023, and 7,736,185 at December 31, 2022  78   78   77      1 
Additional paid-in capital  57,362   57,464   55,187   NM   4 
Retained earnings  230,354   222,532   202,065   4   14 
Accumulated other comprehensive loss, net of tax  (23,306)  (29,409)  (25,632)  (21)  (9)
Total stockholders’ equity  264,488   250,665   231,697   6   14 
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $2,972,669  $2,920,072  $2,632,900   2   13 
                     

FS BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share amounts) (Unaudited)
 
  Three Months Ended  Qtr  Year 
  December 31,  September 30,  December 31,  Over Qtr  Over Year 
  2023  2023  2022  % Change  % Change 
INTEREST INCOME                    
Loans receivable, including fees $40,863  $39,874  $33,763   2   21 
Interest and dividends on investment securities, cash and cash equivalents, and certificates of deposit at other financial institutions  3,580   3,396   2,056   5   74 
Total interest and dividend income  44,443   43,270   35,819   3   24 
INTEREST EXPENSE                    
Deposits  12,055   10,462   3,982   15   203 
Borrowings  1,447   1,689   2,049   (14)  (29)
Subordinated notes  486   485   486       
Total interest expense  13,988   12,636   6,517   11   115 
NET INTEREST INCOME  30,455   30,634   29,302   (1)  4 
PROVISION FOR CREDIT LOSSES  1,402   548   1,585   156   (12)
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES  29,053   30,086   27,717   (3)  5 
NONINTEREST INCOME                    
Service charges and fee income  2,786   2,882   2,404   (3)  16 
Gain on sale of loans  1,413   1,875   592   (25)  139 
Earnings on cash surrender value of BOLI  239   233   222   3   8 
Other noninterest income  1,018   (8)  478  NM   113 
Total noninterest income  5,456   4,982   3,696   10   48 
NONINTEREST EXPENSE                    
Salaries and benefits  12,742   13,503   12,522   (6)  2 
Operations  3,326   3,409   3,087   (2)  8 
Occupancy  1,708   1,588   1,340   8   27 
Data processing  1,760   1,841   1,699   (4)  4 
Gain on sale of OREO  (148)       NM  NM 
Loan costs  497   564   698   (12)  (29)
Professional and board fees  583   666   767   (12)  (24)
Federal Deposit Insurance Corporation (“FDIC”) insurance  660   561   420   18   57 
Marketing and advertising  277   452   245   (39)  13 
Acquisition costs        898      (100)
Amortization of core deposit intangible  980   1,002   173   (2)  466 
Impairment of servicing rights  48        NM  NM 
Total noninterest expense  22,433   23,586   21,849   (5)  3 
INCOME BEFORE PROVISION FOR INCOME TAXES  12,076   11,482   9,564   5   26 
PROVISION FOR INCOME TAXES  2,304   2,529   1,942   (9)  19 
NET INCOME $9,772  $8,953  $7,622   9   28 
Basic earnings per share $1.25  $1.15  $0.98   9   28 
Diluted earnings per share $1.23  $1.13  $0.97   9   27 
                     

FS BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share amounts) (Unaudited)
 
  Year Ended  Year 
  December 31,  December 31,  Over Year 
  2023  2022  % Change 
INTEREST INCOME            
Loans receivable, including fees $154,945  $111,648   39 
Interest and dividends on investment securities, cash and cash equivalents, and certificates of deposit at other financial institutions  12,247   7,046   74 
Total interest and dividend income  167,192   118,694   41 
INTEREST EXPENSE            
Deposits  36,751   9,420   290 
Borrowings  5,196   3,052   70 
Subordinated note  1,942   1,942    
Total interest expense  43,889   14,414   204 
NET INTEREST INCOME  123,303   104,280   18 
PROVISION FOR CREDIT LOSSES  4,774   6,217   (23)
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES  118,529   98,063   21 
NONINTEREST INCOME            
Service charges and fee income  11,138   8,525   31 
Gain on sale of loans  6,711   7,917   (15)
Earnings on cash surrender value of BOLI  920   876   5 
Other noninterest income  1,721   790   118 
Total noninterest income  20,490   18,108   13 
NONINTEREST EXPENSE            
Salaries and benefits  53,622   47,632   13 
Operations  13,070   10,743   22 
Occupancy  6,378   5,165   23 
Data processing  6,852   6,062   13 
Gain on sale of OREO  (148)     NM 
Loan costs  2,574   2,718   (5)
Professional and board fees  2,584   3,154   (18)
FDIC insurance  2,392   1,224   95 
Marketing and advertising  1,349   897   50 
Acquisition costs  1,562   898   74 
Amortization of core deposit intangible  3,464   691   401 
Impairment (recovery) of servicing rights  48   (1)  (4,900)
Total noninterest expense  93,747   79,183   18 
INCOME BEFORE PROVISION FOR INCOME TAXES  45,272   36,988   22 
PROVISION FOR INCOME TAXES  9,219   7,339   26 
NET INCOME $36,053  $29,649   22 
Basic earnings per share $4.63  $3.75   23 
Diluted earnings per share $4.56  $3.70   23 
             

KEY FINANCIAL RATIOS AND DATA (Unaudited)

  For the Three Months Ended 
  December 31,  September 30,  December 31, 
PERFORMANCE RATIOS: 2023  2023  2022 
Return on assets (ratio of net income to average total assets) (1)  1.32%  1.22%  1.17%
Return on equity (ratio of net income to average equity) (1)  15.01   13.81   13.32 
Yield on average interest-earning assets (1)  6.19   6.13   5.65 
Average total cost of funds (1)  2.10   1.92   1.12 
Interest rate spread information – average during period  4.09   4.21   4.53 
Net interest margin (1)  4.24   4.34   4.62 
Operating expense to average total assets (1)  3.02   3.23   3.36 
Average interest-earning assets to average interest-bearing liabilities (1)  143.45   145.14   142.94 
Efficiency ratio (2)  62.47   66.22   66.21 
Common equity ratio (ratio of stockholders’ equity to total assets)  8.90   8.58   8.80 
Tangible common equity ratio (3)  8.25   7.89   8.60 

  For the Year Ended 
  December 31,  December 31, 
PERFORMANCE RATIOS: 2023  2022 
Return on assets (ratio of net income to average total assets)  1.27%  1.18%
Return on equity (ratio of net income to average equity)  14.36   12.71 
Yield on average interest-earning assets  6.07   5.07 
Average total cost of funds  1.72   0.67 
Interest rate spread information – average during period  4.36   4.40 
Net interest margin  4.48   4.46 
Operating expense to average total assets  3.30   3.15 
Average interest-earning assets to average interest-bearing liabilities  145.50   149.09 
Efficiency ratio (2)  65.20   64.70 

  December 31,  September 30,  December 31, 
ASSET QUALITY RATIOS AND DATA: 2023  2023  2022 
Nonperforming assets to total assets at end of period (4)  0.37%  0.21%  0.35%
Nonperforming loans to total gross loans (excluding loans held for sale) (5)  0.45   0.23   0.39 
Allowance for credit losses – loans to nonperforming loans (5)  288.11   493.46   303.50 
Allowance for credit losses – loans to gross loans receivable (excluding loans held for sale)  1.30   1.27   1.26 

  At or For the Three Months Ended 
  December 31,  September 30,  December 31, 
PER COMMON SHARE DATA: 2023  2023  2022 
Basic earnings per share $1.25  $1.15  $0.98 
Diluted earnings per share $1.23  $1.13  $0.97 
Weighted average basic shares outstanding  7,696,429   7,667,981   7,597,260 
Weighted average diluted shares outstanding  7,795,383   7,780,430   7,712,498 
Common shares outstanding at end of period  7,698,401(6)  7,693,951(7)  7,617,655(8)
Book value per share using common shares outstanding $34.36  $32.58  $30.42 
Tangible book value per share using common shares outstanding (9) $31.64  $29.73  $29.67 

 ____________________________

(1) Annualized.
(2) Total noninterest expense as a percentage of net interest income and total noninterest income.
(3) Tangible common equity ratio excludes intangible assets.  This ratio represents a non-GAAP financial measure.  See “Non-GAAP Financial Measures” below.
(4) Nonperforming assets consist of nonperforming loans (which include nonaccruing loans and accruing loans more than 90 days past due), foreclosed real estate and other repossessed assets.
(5) Nonperforming loans consist of nonaccruing loans and accruing loans 90 days or more past due.
(6) Common shares were calculated using shares outstanding of 7,800,545 at December 31, 2023, less 102,144 unvested restricted stock shares.
(7) Common shares were calculated using shares outstanding of 7,796,095 at September 30, 2023, less 102,144 unvested restricted stock shares.
(8) Common shares were calculated using shares outstanding of 7,736,185 at December 31, 2022, less 118,530 unvested restricted stock shares.
(9) Tangible book value per share using outstanding common shares excludes intangible assets. This ratio represents a non-GAAP financial measure. See “Non-GAAP Financial Measures” below.

(Dollars in thousands) For the Three Months Ended December 31,  For the Year Ended December 31,  QTR Over QTR  Year Over Year 
Average Balances 2023  2022  2023  2022  $ Change  $ Change 
Assets                        
Loans receivable (1) $2,448,946  $2,194,173  $2,384,577  $2,014,017  $254,773  $370,560 
Securities available-for-sale, at fair value  321,735   274,255   288,152   278,099   47,480   10,053 
Securities held-to-maturity  8,500   8,500   8,500   8,084      416 
Interest-bearing deposits and certificates of deposit at other financial institutions  66,769   11,729   67,063   7,231   55,040   59,832 
FHLB stock, at cost  3,403   26,706   4,740   32,689   (23,303)  (27,949)
Total interest-earning assets  2,849,353   2,515,363   2,753,032   2,340,120   333,990   412,912 
Noninterest-earning assets  94,012   96,379   90,216   95,574   (2,367)  (5,358)
Total assets $2,943,365  $2,611,742  $2,843,248  $2,435,694  $331,623  $407,554 
Liabilities                        
Interest-bearing accounts $1,817,369  $1,495,841  $1,732,342  $1,417,561  $321,528  $314,781 
Borrowings  119,451   214,488   110,328   102,571   (95,037)  7,757 
Subordinated notes  49,517   49,450   49,492   49,425   67   67 
Total interest-bearing liabilities  1,986,337   1,759,779   1,892,162   1,569,557   226,558   322,605 
Noninterest-bearing accounts  659,080   555,622   662,998   579,968   103,458   83,030 
Other noninterest-bearing liabilities  39,651   33,775   36,992   31,955   5,876   5,037 
Total liabilities $2,685,068  $2,349,176  $2,592,152  $2,181,480  $335,892  $410,672 

____________________________
(1) Includes loans HFS.

Non-GAAP Financial Measures:

In addition to financial results presented in accordance with generally accepted accounting principles utilized in the United States (“GAAP”), this earnings release presents non-GAAP financial measures that include tangible book value per share and tangible common equity ratio.  Management believes that providing the Company’s tangible book value per share and tangible common equity ratio is consistent with the capital treatment utilized by the investment community, which excludes intangible assets from the calculation of risk-based capital ratios and facilitates comparison of the quality and composition of the Company’s capital over time and in comparison to its competitors.  Where applicable, the Company has also presented comparable GAAP information.

These non-GAAP financial measures have inherent limitations, are not required to be uniformly applied, and are not audited. They should not be considered in isolation or as a substitute for total stockholders’ equity or operating results determined in accordance with GAAP.  These non-GAAP measures may not be comparable to similarly titled measures reported by other companies.

Reconciliation of the GAAP book value per share and common equity ratio and the non-GAAP tangible book value per share and tangible common equity ratio is presented below.

(Dollars in thousands, except share and per share amounts) December 31,  September 30,  December 31, 
Tangible Book Value Per Share: 2023  2023  2022 
Stockholders’ equity (GAAP) $264,488  $250,665  $231,697 
Less: goodwill and core deposit intangible, net  (20,935)  (21,915)  (5,681)
Tangible common stockholders’ equity (non-GAAP) $243,553  $228,750  $226,016 
             
Common shares outstanding at end of period  7,698,401   7,693,951   7,617,655 
             
Book value per share (GAAP) $34.36  $32.58  $30.42 
Tangible book value per share (non-GAAP) $31.64  $29.73  $29.67 
             
Tangible Common Equity Ratio:            
Total assets (GAAP) $2,972,669  $2,920,072  $2,632,898 
Less: goodwill and core deposit intangible assets  (20,935)  (21,915)  (5,681)
Tangible assets (non-GAAP) $2,951,734  $2,898,157  $2,627,217 
             
Common equity ratio (GAAP)  8.90%  8.58%  8.80 
Tangible common equity ratio (non-GAAP)  8.25   7.89   8.60 
             

Contacts:
Joseph C. Adams,
Chief Executive Officer
Matthew D. Mullet,
Chief Financial Officer
(425) 771-5299
www.FSBWA.com

Disclaimer & Cookie Notice

Welcome to GOLDEA services for Professionals

Before you continue, please confirm the following:

Professional advisers only

I am a professional adviser and would like to visit the GOLDEA CAPITAL for Professionals website.

Cookie Notice

We use cookies to improve your experience on our website

Information we collect about your use of Goldea Capital website

Goldea Capital website collects personal data about visitors to its website.

When someone visits our websites, we use a third party service, Google Analytics, to collect standard internet log information (such as IP address and type of browser they’re using) and details of visitor behavior patterns. We do this to allow us to keep track of the number of visitors to the various parts of the sites and understand how our website is used. We do not make any attempt to find out the identities or nature of those visiting our websites. We won’t share your information with any other organizations for marketing, market research or commercial purposes and we don’t pass on your details to other websites.

Use of cookies
Cookies are small text files that are placed on your computer or other device by websites that you visit. They are widely used to make websites work, or work more efficiently, as well as to provide information to the owners of the site.