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Form 8-K

sec.gov

8-K — FS Bancorp, Inc.

Accession: 0001437749-26-012996

Filed: 2026-04-22

Period: 2026-04-21

CIK: 0001530249

SIC: 6036 (SAVINGS INSTITUTIONS, NOT FEDERALLY CHARTERED)

Item: Results of Operations and Financial Condition

Item: Other Events

Item: Financial Statements and Exhibits

Documents

8-K — fsbw20260226_8k.htm (Primary)

EX-99.1 — EXHIBIT 99.1 (ex_925751.htm)

GRAPHIC (logo.jpg)

XML — IDEA: XBRL DOCUMENT (R1.htm)

8-K — FORM 8-K

8-K (Primary)

Filename: fsbw20260226_8k.htm · Sequence: 1

fsbw20260226_8k.htm

false

0001530249

0001530249

2026-04-21

2026-04-21

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

​

FORM 8-K

​

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

​

Date of Report (Date of earliest event reported): April 21, 2026

​

FS BANCORP, INC.

(Exact name of registrant as specified in its charter)

​

Washington

001-35589

45-4585178

(State or other jurisdiction

of incorporation)

(Commission

File Number)

(I.R.S. Employer

Identification No.)

​

​

6920 220th Street SW

Mountlake Terrace, Washington

​98043

(Address of principal executive offices)

(Zip Code)

​

Registrant's telephone number, including area code:  (425) 771-5299

​

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions.

​

☐

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

​

Securities registered pursuant to Section 12(b) of the Act:

​

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, par value $.01 per share

FSBW

The NASDAQ Stock Market LLC

​

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

​

Item 2.02 Results of Operations and Financial Condition

​

On April 21, 2026, FS Bancorp, Inc. (the Company), the parent corporation of 1st Security Bank of Washington, issued its earnings release for the quarter ended March 31, 2026.  A copy of the press release is furnished with this Form 8-K as Exhibit 99.1 and is incorporated herein by reference.

Item 8.01 Other Events

On April 21, 2026, the Company announced its Board of Directors declared a regular quarterly cash dividend on Company common stock of $0.29 per share, payable on May 21, 2026, to stockholders of record as of the close of business on May 7, 2026.

​

Item 9.01 Exhibits

​

(d)

Exhibits

​

99.1

Press release of FS Bancorp, Inc. dated April 21, 2026

104

Cover Page Interactive Data File (embedded within the Inline XBRL document)

​

​

SIGNATURES

​

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

​

​

Date: April 22, 2026

FS BANCORP, INC.

​

​

​

/s/Phillip D. Whittington

​

Phillip D. Whittington

​

Chief Financial Officer

​

​

EX-99.1 — EXHIBIT 99.1

EX-99.1

Filename: ex_925751.htm · Sequence: 2

ex_925751.htm

Exhibit 99.1

FS Bancorp, Inc. Reports First Quarter Net Income of $7.8 Million or $1.02 Per Diluted Share and Declares 53rd Consecutive Quarterly Cash Dividend

MOUNTLAKE TERRACE, WA – April 21, 2026 – FS Bancorp, Inc. (NASDAQ: FSBW) (the “Company”), the holding company for 1st Security Bank of Washington (the “Bank”) today reported 2026 first quarter net income of $7.8 million, or $1.02 per diluted share, compared to $8.4 million, or $1.10 per diluted share, for the prior quarter, and $8.0 million, or $1.01 per diluted share, for the comparable quarter one year ago. Pre-tax income of $9.9 million in the first quarter of 2026 increased $440,000, or 4.6%, from $9.5 million in the first quarter of 2025, with the decrease in net income between those periods primarily reflecting a higher effective income tax rate.

“We are excited about the announced merger with Pacific West Bancorp that occurred in February and our projected growth into the Portland, Oregon market area later in 2026,” stated Matthew Mullet, CEO and President of 1st Security Bank.

“Book value per share reached a split adjusted record of $42.42 in the first quarter of 2026, reflecting sustained earnings growth and disciplined capital management,” stated Joe Adams, CEO of FS Bancorp, Inc. “We are also pleased to announce that our Board of Directors has approved our 53rd consecutive quarterly cash dividend of $0.29 per common share, demonstrating our commitment to returning capital to long-term shareholders. The cash dividend will be paid on May 21, 2026, to shareholders of record as of May 7, 2026,” concluded Adams.

2026 First Quarter Highlights

●

Net income totaled $7.8 million for the first quarter of 2026, compared to $8.4 million for the previous quarter, and $8.0 million for the comparable quarter one year ago. The linked quarter-over-quarter decrease is primarily due to a $1.0 million bank owned life insurance mortality benefit received in the prior quarter with no such benefit for the first quarter of 2026. Pre-tax income grew to $9.9 million in the first quarter of 2026, up $440,000, or 4.6%, from $9.5 million in the comparable quarter one year ago, driven by growth in net interest income and Home Lending segment results;

●

Total deposits, excluding brokered deposits, were unchanged at $2.31 billion at March 31, 2026 and December 31, 2025, and increased $65.2 million, or 2.9%, from $2.24 billion at March 31, 2025. The cost of deposits decreased to 2.24% for the quarter ended March 31, 2026, from 2.26% for the quarter ended December 31, 2025 primarily due to repricing on maturing certificates of deposits and other deposit repricing activities;

●

Loans receivable, net was $2.62 billion at both March 31, 2026 and December 31, 2025, and increased $123.0 million, or 4.9%, from $2.50 billion at March 31, 2025. Net growth of $17.4 million in the commercial real estate portfolio was partially offset by heightened payoff activity in the consumer loan portfolio for the quarter ended March 31, 2026;

●

Consumer loans were $583.5 million at March 31, 2026, a decrease of $13.5 million, or 2.3%, from $597.0 million in the previous quarter, and a decrease of $25.4 million, or 4.2%, from $608.9 million in the comparable quarter one year ago. During the three months ended March 31, 2026, consumer loan originations included 83.3% of home improvement loans originated with a Fair Isaac Corporation (“FICO”) score above 720;

●

Home Lending production increased significantly compared to the comparable quarter one year ago, totaling $207.5 million for the three months ended March 31, 2026, compared to $145.4 million for the three months ended March 31, 2025, a 42.7% increase, driven by improved rate activity;

●

Segment reporting in the first quarter of 2026 reflected net income of $6.7 million for the Commercial and Consumer Banking segment and $1.1 million for the Home Lending segment, compared to net income of $7.8 million and $643,000 in the prior quarter, and net income of $7.8 million and $241,000 in the first quarter of 2025, respectively;

FS Bancorp Q1 Earnings

April 21, 2026

Page 2

●

Repurchased $620,000, or 15,025 shares of the Company's common stock in the first quarter of 2026 at an average price of $41.24 per share, with $3.6 million remaining for future purchases under the existing share repurchase plan as of March 31, 2026;

●

Book value per share increased $0.87 to $42.42 at March 31, 2026, compared to $41.55 at December 31, 2025, and increased $3.30 from $39.12 at March 31, 2025. Tangible book value per share (non-GAAP financial measure) increased $0.96 to $40.61 at March 31, 2026, compared to $39.65 at December 31, 2025, and increased $3.65 from $36.96 at March 31, 2025. See, “Non-GAAP Financial Measures;”; and

●

Regulatory capital ratios at the Bank were 13.8% for total risk-based capital and 11.2% for Tier 1 leverage capital at March 31, 2026, compared to 14.0% for total risk-based capital and 11.0% for Tier 1 leverage capital at December 31, 2025.

Segment Reporting

The Company operates through two reportable 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 and cash management services. This segment also manages the Bank's investment portfolio and other assets. 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 ended March 31, 2026 and 2025 (dollars in thousands):

At or For the Three Months Ended March 31, 2026

Condensed income statement:

Commercial and Consumer Banking

Home Lending

Total

Net interest income (1)

$

29,552

$

2,993

$

32,545

(Provision) recovery for credit losses

(2,545

)

16

(2,529

)

Noninterest income (2)

2,464

2,937

5,401

Noninterest expense (3)

(20,862

)

(4,658

)

(25,520

)

Income before provision for income taxes

8,609

1,288

9,897

Provision for income taxes

(1,863

)

(204

)

(2,067

)

Net income

$

6,746

$

1,084

$

7,830

Total average assets for period ended

$

2,543,059

$

658,300

$

3,201,359

Full-time employees ("FTEs")

469

116

585

At or For the Three Months Ended March 31, 2025

Condensed income statement:

Commercial and Consumer Banking

Home Lending

Total

Net interest income (1)

$

28,407

$

2,575

$

30,982

Provision for credit losses

(1,321)

(271)

(1,592)

Noninterest income (2)

2,246

2,880

5,126

Noninterest expense (3)

(20,176)

(4,879)

(25,055)

Income before provision for income taxes

9,156

305

9,461

Provision for income taxes

(1,376)

(64)

(1,440)

Net income

$

7,780

$

241

$

8,021

Total average assets for period ended

$

2,414,100

$

618,412

$

3,032,512

FTEs

454

113

567

FS Bancorp Q1 Earnings

April 21, 2026

Page 3

________________________

(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 ended March 31, 2026, the Company recorded a net decrease in fair value of $101,000, compared to a net increase in fair value of $263,000, for the three months ended March 31, 2025. As of March 31, 2026 and 2025, there were $13.0 million and $14.5 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 ended March 31, 2026 and 2025, the Home Lending segment included allocated overhead expenses of $1.9 million and $1.8 million, respectively.

Asset Summary

The following table presents the components and changes in total assets as of the dates indicated.

ASSETS

Linked Quarter

Prior Year

(Dollars in thousands)

March 31,

December 31,

March 31,

Change

Quarter Change

2026

2025

2025

$

%

$

%

Cash and due from banks

$

12,424

$

13,504

$

18,657

$

(1,080

)

(8

)%

$

(6,233

)

(33

)%

Interest-bearing deposits at other financial institutions

26,278

14,715

44,084

11,563

79

(17,806

)

(40

)

Total cash and cash equivalents

38,702

28,219

62,741

10,483

37

(24,039

)

(38

)

Certificates of deposit at other financial institutions

—

—

1,234

—

NM

(1,234

)

(100

)

Securities available-for-sale, at fair value

271,007

288,667

291,133

(17,660

)

(6

)

(20,126

)

(7

)

Securities held-to-maturity, net

33,267

33,224

10,434

43

—

22,833

219

Loans held for sale, at fair value

56,275

43,705

31,038

12,570

29

25,237

81

Loans receivable, net

2,624,091

2,623,172

2,501,117

919

—

122,974

5

Accrued interest receivable

15,333

14,614

14,406

719

5

927

6

Premises and equipment, net

43,612

44,065

29,451

(453

)

(1

)

14,161

48

Long-lived assets held for sale

3,258

3,258

—

—

—

3,258

—

Operating lease right-of-use

5,472

5,789

4,979

(317

)

(5

)

493

10

Federal Home Loan Bank stock, at cost

8,701

7,971

5,256

730

9

3,445

66

Deferred tax asset, net

7,175

6,993

7,009

182

3

166

2

Bank owned life insurance (“BOLI”), net

36,508

36,249

38,778

259

1

(2,270

)

(6

)

MSRs, held at the lower of cost or fair value

8,676

8,608

8,926

68

1

(250

)

(3

)

Goodwill

3,592

3,592

3,592

—

—

—

—

Core deposit intangible, net

9,774

10,518

12,879

(744

)

(7

)

(3,105

)

(24

)

Other assets

38,072

38,203

43,105

(131

)

—

(5,033

)

(12

)

TOTAL ASSETS

$

3,203,515

$

3,196,847

$

3,066,078

$

6,668

—

%

$

137,437

4

%

FS Bancorp Q1 Earnings

April 21, 2026

Page 4

Prior

LOAN PORTFOLIO

Linked

Year

(Dollars in thousands)

Quarter

Quarter

COMMERCIAL REAL ESTATE

March 31, 2026

December 31, 2025

March 31, 2025

$

$

("CRE") LOANS

Amount

Percent

Amount

Percent

Amount

Percent

Change

Change

CRE owner occupied

$

182,260

6.9

%

$

176,078

6.6

%

$

164,911

6.5

%

$

6,182

$

17,349

CRE non-owner occupied

182,568

6.9

177,113

6.7

174,188

6.9

5,455

8,380

Commercial and speculative construction and development

358,657

13.5

354,130

13.3

288,978

11.4

4,527

69,679

Multi-family

263,353

9.9

262,150

9.9

244,940

9.7

1,203

18,413

Total CRE loans

986,838

37.2

969,471

36.5

873,017

34.5

17,367

113,821

RESIDENTIAL REAL ESTATE LOANS

One-to-four-family (excludes HFS)

630,996

23.8

628,761

23.7

637,299

25.2

2,235

(6,303

)

Home equity

88,468

3.3

88,271

3.3

73,846

2.9

197

14,622

Residential custom construction

44,134

1.7

42,329

1.6

48,810

1.9

1,805

(4,676

)

Total residential real estate loans

763,598

28.8

759,361

28.6

759,955

30.0

4,237

3,643

CONSUMER LOANS

Indirect home improvement

513,437

19.3

525,842

19.8

532,038

21.0

(12,405

)

(18,601

)

Marine

67,126

2.5

68,115

2.6

73,737

2.9

(989

)

(6,611

)

Other consumer

2,921

0.1

3,029

0.1

3,118

0.1

(108

)

(197

)

Total consumer loans

583,484

21.9

596,986

22.5

608,893

24.0

(13,502

)

(25,409

)

COMMERCIAL BUSINESS LOANS

Commercial and industrial (“C&I”)

304,470

11.5

301,111

11.3

274,956

10.9

3,359

29,514

Warehouse lending

18,144

0.6

28,180

1.1

15,949

0.6

(10,036

)

2,195

Total commercial business loans

322,614

12.1

329,291

12.4

290,905

11.5

(6,677

)

31,709

Total loans receivable, gross

2,656,534

100.0

%

2,655,109

100.0

%

2,532,770

100.0

%

1,425

123,764

Allowance for credit losses ("ACL") on loans

(32,443

)

(31,937

)

(31,653

)

(506

)

(790

)

Total loans receivable, net

$

2,624,091

$

2,623,172

$

2,501,117

$

919

$

122,974

FS Bancorp Q1 Earnings

April 21, 2026

Page 5

The composition of CRE loans at the dates indicated were as follows:

(Dollars in thousands)

CRE by Type:

March 31, 2026

December 31, 2025

March 31, 2025

CRE non-owner occupied:

Office

$43,532

$44,429

$39,406

Retail

42,186

36,387

35,520

Hospitality/restaurant

24,673

24,848

27,377

Self-storage

18,844

18,924

19,092

Mixed use

18,674

18,903

18,868

Industrial

14,064

14,263

15,033

Other

9,249

7,729

6,579

Senior housing/assisted living

7,263

7,329

7,506

Education/worship

2,387

2,414

2,493

Land

1,696

1,887

2,314

Total CRE non-owner occupied

182,568

177,113

174,188

CRE owner occupied:

Industrial

74,904

75,347

66,618

Office

35,100

30,311

40,447

Retail

27,443

24,248

20,535

Other

10,674

10,492

8,529

Hospitality/restaurant

8,125

7,583

7,306

Mixed use

7,685

7,831

5,579

Automobile related

6,792

7,111

7,266

Car wash

4,394

4,412

—

Agriculture

3,759

4,136

3,990

Education/worship

3,384

4,607

4,641

Total CRE owner occupied

182,260

176,078

164,911

Total

$

364,828

$

353,191

$

339,099

The following table includes CRE loans repricing or maturing within the next two years, excluding loans that reprice simultaneously with changes to the prime rate:

Current

(Dollars in

Weighted

thousands)

For the Quarter Ended

Average

CRE by type:

Jun 30, 2026

Sep 30, 2026

Dec 31, 2026

Mar 31, 2027

Jun 30, 2027

Sep 30, 2027

Dec 31, 2027

Mar 31, 2028

Total

Rate

Agriculture

$

627

$

259

$

—

$

—

$

—

$

—

$

—

$

—

$

886

6.21%

Apartment

13,865

9,149

16,078

27,722

18,059

4,118

12,379

15,898

117,268

5.93%

Hotel / hospitality

—

108

—

—

—

—

—

—

108

8.75%

Industrial

572

1,409

—

13,577

3,278

5,680

5,231

2,808

32,555

5.73%

Mixed use

768

—

370

1,292

—

—

3,228

450

6,108

6.73%

Office

4,533

542

7,525

2,790

—

7,402

3,718

—

26,510

5.26%

Other

—

2,387

2,317

—

1,766

324

—

—

6,794

4.94%

Retail

3,366

—

3,324

2,934

2,337

7,412

—

—

19,373

4.68%

Senior housing and assisted living

—

2,094

—

—

1,345

—

—

3,041

6,480

6.88%

Total

$

23,731

$

15,948

$

29,614

$

48,315

$

26,785

$

24,936

$

24,556

$

22,197

$

216,082

FS Bancorp Q1 Earnings

April 21, 2026

Page 6

The composition of construction loans at the dates indicated were as follows:

(Dollars in thousands)

March 31, 2026

December 31, 2025

March 31, 2025

Construction Types:

Amount

Percent

Amount

Percent

Amount

Percent

Commercial construction – retail

$

8,450

2.1

%

$

8,452

2.1

%

$

8,157

2.4

%

Commercial construction – office

9,442

2.3

9,236

2.3

6,487

1.9

Commercial construction – self storage

24,217

6.0

22,437

5.7

16,012

4.7

Commercial construction – hotel

11,968

3.0

9,404

2.4

402

0.1

Multi-family

44,343

11.0

37,403

9.4

31,275

9.3

Custom construction – single family residential and single family manufactured residential

33,425

8.3

32,451

8.2

41,143

12.2

Custom construction – land, lot and acquisition and development

10,708

2.7

9,878

2.5

7,667

2.3

Speculative residential construction – vertical

216,204

53.7

225,198

56.8

186,042

55.1

Speculative residential construction – land, lot and acquisition and development

44,034

10.9

42,000

10.6

40,603

12.0

Total

$

402,791

100.0

%

$

396,459

100.0

%

$

337,788

100.0

%

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

(Dollars in

Prior Year

thousands)

For the Three Months Ended

Linked Quarter

Quarter

March 31, 2026

December 31, 2025

March 31, 2025

$

%

$

%

Amount

Percent

Amount

Percent

Amount

Percent

Change

Change

Change

Change

Purchase

$

139,626

67.3

%

$

158,992

72.6

%

$

120,719

83.0

%

$

(19,366

)

(12.2

)

$

18,907

15.7

%

Refinance

67,864

32.7

60,153

27.4

24,677

17.0

7,711

12.8

43,187

175.0

%

Total

$

207,490

100.0

%

$

219,145

100.0

%

$

145,396

100.0

%

$

(11,655

)

(5.3

)

$

62,094

42.7

%

During the quarter ended March 31, 2026, the Company sold $154.7 million of one-to-four-family loans compared to $180.1 million during the previous quarter and $91.9 million during the same quarter one year ago. The increase in the volume of loans sold during the current quarter compared to the prior quarter was primarily due to favorable rate activity. Gross margins on home loan sales decreased to 3.03% for the quarter ended March 31, 2026, compared to 3.08% in the previous quarter and decreased from 3.26% 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.

FS Bancorp Q1 Earnings

April 21, 2026

Page 7

Liabilities and Equity Summary

The following table summarizes the components and changes in deposits, borrowings, equity, and book value per common share at the dates indicated.

(Dollars in thousands)

Linked

Prior Year

DEPOSITS

March 31, 2026

December 31, 2025

March 31, 2025

Quarter

Quarter

Transactional deposits:

Amount

Percent

Amount

Percent

Amount

Percent

$ Change

$ Change

Noninterest-bearing checking

$

634,787

24.1

%

$

647,197

24.2

%

$

659,417

25.2

%

$

(12,410

)

$

(24,630

)

Interest-bearing checking

185,793

7.0

195,275

7.3

171,369

6.6

(9,482

)

14,424

Escrow accounts related to mortgages serviced (1)

18,904

0.7

10,926

0.4

17,289

0.7

7,978

1,615

Subtotal

839,484

31.8

853,398

31.9

848,075

32.4

(13,914

)

(8,591

)

Savings and money market:

Savings

169,192

6.4

164,056

6.1

160,332

6.1

5,136

8,860

Money market

377,685

14.3

365,322

13.7

343,098

13.1

12,363

34,587

Subtotal

546,877

20.7

529,378

19.8

503,430

19.3

17,499

43,447

Certificates of deposit:

CDs

923,801

35.0

928,326

34.7

893,424

34.2

(4,525

)

30,377

Brokered Deposits

Non-maturity brokered deposits

250

—

244

—

251

—

6

(1

)

Maturity brokered deposits

327,164

12.4

362,296

13.6

369,971

14.1

(35,132

)

(42,807

)

Subtotal

327,414

12.4

362,540

13.6

370,222

14.1

(35,126

)

(42,808

)

Total deposits

$

2,637,576

100.0

%

$

2,673,642

100.0

%

$

2,615,151

100.0

%

$

(36,066

)

$

22,425

Borrowings (2)

$

167,305

$

129,305

$

68,805

$

38,000

$

98,500

Stockholders' equity

$

313,852

$

307,694

$

298,840

$

6,158

$

15,012

Book value per common share

$

42.42

$

41.55

$

39.12

$

0.87

$

3.30

(1)

Primarily noninterest-bearing accounts based on applicable state law.

(2)

Comprised of FHLB advances and Federal Reserve Bank borrowings.

At March 31, 2026, the Bank had uninsured deposits of approximately $704.2 million, compared to approximately $718.1 million at December 31, 2025, and $679.4 million at March 31, 2025.  The uninsured amounts are estimates based on the methodologies and assumptions used for the Bank's regulatory reporting requirements.

In the table above, the linked quarter increase in stockholders’ equity at March 31, 2026, compared to December 31, 2025, was primarily due to net income of $7.8 million. Declines in the fair value of available‑for‑sale securities recorded in accumulated other comprehensive income (“AOCI”) were largely offset by improvements in the fair value of interest rate swap cash flow hedges, resulting in a net improvement of $83,000, net of tax. Gains and losses in fair value reflect changes in market interest rates during the periods. The increase in stockholders’ equity was partially offset by share repurchases of $620,000 and cash dividends paid of $2.2 million.

FS Bancorp Q1 Earnings

April 21, 2026

Page 8

The Bank is considered “well capitalized” under the capital requirement established by the Federal Deposit Insurance Corporation (“FDIC”) and the Company exceeded all regulatory capital requirements. At March 31, 2026, capital ratios presented for the Bank and the Company were as follows:

At March 31, 2026

Bank

Company

Total risk-based capital (to risk-weighted assets)

13.81%

13.77%

Tier 1 leverage capital (to average assets)

11.16%

9.87%

CET 1 capital (to risk-weighted assets)

12.59%

11.15%

Credit Quality

The following table summarizes the changes in the ACL on loans, nonperforming loans, and classified loans at the dates indicated.

Linked

Prior Year

ACL ON LOANS

March 31,

December 31,

March 31,

Quarter

Quarter

(Dollars in thousands)

2026

2025

2025

$ Change

$ Change

Beginning ACL balance

$

31,937

$

30,056

$

31,870

$

1,881

$

67

Provision

2,649

3,882

1,505

(1,233

)

1,144

Charge-offs

Indirect

(2,449

)

(2,258

)

(1,580

)

(191

)

(869

)

Marine

(75

)

(99

)

(19

)

24

(56

)

Other

(95

)

(53

)

(37

)

(42

)

(58

)

Commercial business

(230

)

—

(433

)

(230

)

203

Subtotal

(2,849

)

(2,410

)

(2,069

)

(439

)

(780

)

Recoveries

CRE

—

2

—

(2

)

—

Indirect

585

403

340

182

245

Marine

36

1

3

35

33

Other

7

3

4

4

3

Commercial business

78

—

—

78

78

Subtotal

706

409

347

297

359

Ending ACL balance

$

32,443

$

31,937

$

31,653

$

506

$

790

FS Bancorp Q1 Earnings

April 21, 2026

Page 9

NONPERFORMING LOANS

Linked

Prior Year

(Dollars in thousands)

March 31,

December 31,

March 31,

Quarter

Quarter

CRE LOANS

2026

2025

2025

$ Change

$ Change

CRE

$

1,081

$

2,049

$

1,196

$

(968)

$

(115)

Commercial and speculative construction and development

9,442

9,236

6,487

206

2,955

Total CRE loans

10,523

11,285

7,683

(762)

2,840

RESIDENTIAL REAL ESTATE LOANS

One-to-four-family (excludes HFS)

1,983

1,778

1,134

205

849

Home equity

475

390

252

85

223

Total residential real estate loans

2,458

2,168

1,386

290

1,072

CONSUMER LOANS

Indirect home improvement

4,622

4,256

2,821

366

1,801

Marine

466

454

648

12

(182)

Other consumer

34

2

1

32

33

Total consumer loans

5,122

4,712

3,470

410

1,652

COMMERCIAL BUSINESS LOANS

C&I

165

580

1,932

(415)

(1,767)

Total nonperforming loans

$

18,268

$

18,745

$

14,471

$

(477)

$

3,797

The increase in nonperforming loans at March 31, 2026, compared to March 31, 2025 was partly driven by one commercial construction relationship, which remains in active development. Disbursements on this relationship, net of partial charge-offs of $2.3 million, contributed to a $3.0 million net increase in the nonperforming loan balance compared to March 31, 2025. Additional disbursements were made to support project completion and improve the probability of recovering collateral value. Increases in indirect home improvement and residential real estate nonperforming loans also contributed to the rise in nonperforming loans between the periods.

CLASSIFIED LOANS

Linked

Prior Year

(Dollars in thousands)

March 31,

December 31,

March 31,

Quarter

Quarter

CRE LOANS

2026

2025

2025

$ Change

$ Change

CRE

$

4,122

$

5,496

$

2,040

$

(1,374)

$

2,082

Commercial and speculative construction and development

9,442

9,236

6,487

206

2,955

Total CRE loans

13,564

14,732

8,527

(1,168)

5,037

RESIDENTIAL REAL ESTATE LOANS

One-to-four-family (excludes HFS)

3,814

3,616

3,728

198

86

Home equity

475

390

252

85

223

Total residential real estate loans

4,289

4,006

3,980

283

309

CONSUMER LOANS

Indirect home improvement

4,622

4,256

2,821

366

1,801

Marine

466

454

648

12

(182)

Other consumer

34

2

1

32

33

Total consumer loans

5,122

4,712

3,470

410

1,652

COMMERCIAL BUSINESS LOANS

C&I

3,168

3,872

7,524

(704)

(4,356)

Total classified loans

$

26,143

$

27,322

$

23,501

$

(1,179)

$

2,642

FS Bancorp Q1 Earnings

April 21, 2026

Page 10

Operating Results

Net interest income increased $1.6 million to $32.5 million for the three months ended March 31, 2026, from $31.0 million for the three months ended March 31, 2025, primarily due to an increase in total interest income of $2.5 million, partially offset by an increase in total interest expense of $982,000. The $2.5 million increase in total interest income was primarily due to an increase of $2.7 million in interest income on loans receivable, including fees, resulting from net loan growth. The $982,000 increase in total interest expense was primarily the result of higher average deposit balances used to fund asset growth.

Net interest margin (“NIM”) (annualized) decreased one basis point to 4.31% for the three months ended March 31, 2026, compared to 4.32% for the same period in the prior year. The decrease primarily reflects the repricing of the Company’s subordinated notes to a floating rate on February 15, 2026, which resulted in an estimated two basis point decline in NIM for the quarter. Lower loan yields resulting from decreases in the prime rate further pressured net interest margin, which was partially offset by favorable deposit repricing.

The average total cost of funds, including noninterest-bearing checking, increased one basis point to 2.39% for the three months ended March 31, 2026, from 2.38% for the three months ended March 31, 2025. This increase was primarily due to the repricing of the Company’s subordinated debt, as previously discussed, and was partially offset by favorable deposit repricing.

For the three months ended March 31, 2026, the provision for credit losses on loans was $2.6 million, compared to $1.5 million for the three months ended March 31, 2025. The provision for credit losses on loans reflects a $422,000 increase net charge-off activity, along with heightened past due and nonaccrual consumer loans.

During the three months ended March 31, 2026, total net charge-offs increased $422,000 to $2.1 million, compared to $1.7 million for the three months ended March 31, 2025. The increase was primarily due to a $624,000 net charge-off increase in indirect home improvement loans, partially offset by a $281,000 net charge-off decrease in commercial business loans, with the remainder attributable to slightly higher net charge-off increases in marine and consumer loans. The rise in indirect home improvement and consumer loan net charge-offs reflects continued credit stress in those portfolios amid a challenging economic environment.

Total noninterest income increased $275,000 to $5.4 million for the three months ended March 31, 2026, from $5.1 million for the three months ended March 31, 2025. The increase primarily reflects a $684,000 increase in gain on sale of loans, partially offset by a $246,000 decrease in other noninterest income, and a $171,000 decrease in service charges and fee income.

Total noninterest expense increased $465,000 to $25.5 million for the three months ended March 31, 2026, compared to $25.1 million for the three months ended March 31, 2025. The $465,000 increase reflected higher costs in several areas: loan costs increased $334,000, due to higher loan origination activity; salaries and benefits rose $321,000 from competitive wage adjustments; acquisition related costs of $295,000 were recorded in connection with the previously announced merger with Pacific West Bancorp; and occupancy expense increased $159,000 due to branch renovations.  These increases were partially offset by a $451,000 reduction in data processing expenses following renegotiated vendor contracts, and a $173,000 decrease in professional and board fees.

About FS Bancorp

FS Bancorp, Inc., a Washington corporation, is the holding company for 1st Security Bank of Washington. The Bank offers a range of loan and deposit services primarily to small- and middle-market businesses and individuals in Washington and Oregon. It operates through 27 bank branches, one headquarters office that provides loans and deposit services, 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. Additionally, the Bank services home mortgage customers across the Northwest, focusing on markets in Washington State including the Puget Sound, Tri-Cities, and Vancouver.

FS Bancorp Q1 Earnings

April 21, 2026

Page 11

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”), 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: adverse 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, recessionary pressures or slowing economic growth; changes in interest rate levels and volatility, and the timing and pace of such changes, including actions by the Federal Reserve, which could adversely affect the Company's revenues and expenses, the values of our assets and obligations, and the availability and cost of capital and liquidity; inflationary pressures and related monetary and fiscal policy responses, and their impact on consumer and business behavior; geopolitical developments and international conflicts including but not limited to tensions or instability in Eastern Europe, the Middle East, South America, and Asia, or the imposition of new or increased tariffs and trade restrictions, which may disrupt financial markets, global supply chains, commodity prices, or economic activity in specific industry sectors; the effects of a federal government shutdown, debt ceiling standoff, or other fiscal policy uncertainty; increased competitive pressures, including repricing and competitors' pricing initiatives, and their impact on the Company's market position, loan, and deposit products; adverse changes in the securities markets, 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 the Company's ability to borrow funds or raise additional capital, if necessary; the impact of bank failures or adverse developments at other banks and related negative publicity about the banking industry in general on investor and depositor sentiment; the ability to adapt to rapid technological changes, including advancements in artificial intelligence, digital banking platforms, and cybersecurity; legislation or regulatory changes, including but not limited to shifts in capital requirements, banking regulation, tax laws, or consumer protection laws; vulnerabilities  in information systems or third-party service providers, including disruptions, breaches, or attacks; environmental, social and governance matters; the effects of climate change, severe weather events, natural disasters, pandemics, epidemics and other public health crises, acts of war or terrorism, domestic political unrest 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 expressly disclaims any obligation, to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.

FS Bancorp Q1 Earnings

April 21, 2026

Page 12

FS BANCORP, INC. AND SUBSIDIARY

CONSOLIDATED BALANCE SHEETS

(Dollars in thousands) (Unaudited)

Linked

Prior Year

March 31,

December 31,

March 31,

Quarter

Quarter

ASSETS

2026

2025

2025

% Change

% Change

Cash and due from banks

$

12,424

$

13,504

$

18,657

(8

)

(33

)

Interest-bearing deposits at other financial institutions

26,278

14,715

44,084

79

(40

)

Total cash and cash equivalents

38,702

28,219

62,741

37

(38

)

Certificates of deposit at other financial institutions

—

—

1,234

—

NM

Securities available-for-sale, at fair value

271,007

288,667

291,133

(6

)

(7

)

Securities held-to-maturity, net

33,267

33,224

10,434

—

219

Loans held for sale, at fair value

56,275

43,705

31,038

29

81

Loans receivable, net

2,624,091

2,623,172

2,501,117

—

5

Accrued interest receivable

15,333

14,614

14,406

5

6

Premises and equipment, net

43,612

44,065

29,451

(1

)

48

Long-lived assets held for sale

3,258

3,258

—

—

NM

Operating lease right-of-use

5,472

5,789

4,979

(5

)

10

Federal Home Loan Bank stock, at cost

8,701

7,971

5,256

9

66

Deferred tax asset, net

7,175

6,993

7,009

3

2

Bank owned life insurance (“BOLI”), net

36,508

36,249

38,778

1

(6

)

MSRs, held at the lower of cost or fair value

8,676

8,608

8,926

1

(3

)

Goodwill

3,592

3,592

3,592

—

—

Core deposit intangible, net

9,774

10,518

12,879

(7

)

(24

)

Other assets

38,072

38,203

43,105

—

(12

)

TOTAL ASSETS

$

3,203,515

$

3,196,847

$

3,066,078

—

4

LIABILITIES

Deposits:

Noninterest-bearing accounts

$

653,691

$

658,123

$

676,706

(1

)

(3

)

Interest-bearing accounts

1,983,885

2,015,519

1,938,445

(2

)

2

Total deposits

2,637,576

2,673,642

2,615,151

(1

)

1

Borrowings

167,305

129,305

68,805

29

143

Subordinated notes:

Principal amount

50,000

50,000

50,000

—

—

Unamortized debt issuance costs

(322

)

(339

)

(389

)

(5

)

(17

)

Total subordinated notes less unamortized debt issuance costs

49,678

49,661

49,611

—

—

Operating lease liability

5,570

5,889

5,149

(5

)

8

Other liabilities

29,534

30,656

28,522

(4

)

4

Total liabilities

2,889,663

2,889,153

2,767,238

—

4

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; 7,501,542 shares issued and outstanding at March 31, 2026, 7,507,519 at December 31, 2025, and 7,742,907 at March 31, 2025

75

75

77

—

(3

)

Additional paid-in capital

43,668

43,251

52,806

1

(17

)

Retained earnings

285,854

280,197

262,945

2

9

Accumulated other comprehensive loss, net of tax

(15,745

)

(15,829

)

(16,988

)

(1

)

(7

)

Total stockholders’ equity

313,852

307,694

298,840

2

5

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

$

3,203,515

$

3,196,847

$

3,066,078

—

4

FS Bancorp Q1 Earnings

April 21, 2026

Page 13

FS BANCORP, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF INCOME

(Dollars in thousands, except per share amounts) (Unaudited)

Three Months Ended

Linked

Prior Year

March 31,

December 31,

March 31,

Quarter

Quarter

INTEREST INCOME

2026

2025

2025

% Change

% Change

Loans receivable, including fees

$

46,012

$

46,876

$

43,303

(2

)

6

Interest and dividends on investment securities, cash and cash equivalents, and certificates of deposit at other financial institutions

3,321

3,906

3,485

(15

)

(5

)

Total interest and dividend income

49,333

50,782

46,788

(3

)

5

INTEREST EXPENSE

Deposits

14,713

15,228

13,058

(3

)

13

Borrowings

1,384

1,446

2,263

(4

)

(39

)

Subordinated notes

691

486

485

42

—

Total interest expense

16,788

17,160

15,806

(2

)

6

NET INTEREST INCOME

32,545

33,622

30,982

(3

)

5

PROVISION FOR CREDIT LOSSES

2,529

3,624

1,592

(30

)

59

NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES

30,016

29,998

29,390

—

2

NONINTEREST INCOME

Service charges and fee income

2,073

2,233

2,244

(7

)

(8

)

Gain on sale of loans

2,384

2,169

1,700

10

40

Earnings on cash surrender value of BOLI

259

261

250

(1

)

4

Other noninterest income

685

1,724

932

(60

)

(27

)

Total noninterest income

5,401

6,387

5,126

(15

)

5

NONINTEREST EXPENSE

Salaries and benefits

14,854

14,744

14,533

1

2

Operations

3,380

3,680

3,445

(8

)

(2

)

Occupancy

1,876

1,889

1,717

(1

)

9

Data processing

1,594

1,847

2,045

(14

)

(22

)

Loan costs

882

905

548

(3

)

61

Professional and board fees

1,014

1,213

1,186

(16

)

(15

)

FDIC insurance

627

626

538

—

17

Marketing and advertising

309

372

221

(17

)

40

Acquisition costs

295

—

—

NM

—

Amortization of core deposit intangible

744

766

831

(3

)

(10

)

(Recovery) impairment of servicing rights

(55

)

31

(9

)

(277

)

511

Total noninterest expense

25,520

26,073

25,055

(2

)

2

INCOME BEFORE PROVISION FOR INCOME TAXES

9,897

10,312

9,461

(4

)

5

PROVISION FOR INCOME TAXES

2,067

1,892

1,440

9

44

NET INCOME

$

7,830

$

8,420

$

8,021

(7

)

(2

)

Basic earnings per share

$

1.04

$

1.12

$

1.02

(7

)

2

Diluted earnings per share

$

1.02

$

1.10

$

1.01

(7

)

1

FS Bancorp Q1 Earnings

April 21, 2026

Page 14

KEY FINANCIAL RATIOS AND DATA (Unaudited)

For the Three Months Ended

March 31,

December 31,

March 31,

PERFORMANCE RATIOS:

2026

2025

2025

Return on assets (ratio of net income to average total assets) (1)

0.99

%

1.04

%

1.07

%

Return on equity (ratio of net income to average total stockholders' equity) (1)

10.03

10.78

10.80

Yield on average interest-earning assets (1)

6.53

6.56

6.53

Average total cost of funds (1)

2.39

2.38

2.38

Interest rate spread information – average during period

4.14

4.18

4.15

Net interest margin (1)

4.31

4.35

4.32

Operating expense to average total assets (1)

3.23

3.23

3.35

Average interest-earning assets to average interest-bearing liabilities (1)

139.86

140.03

142.94

Efficiency ratio (2)

67.25

65.13

69.39

Common equity ratio (ratio of stockholders' equity to total assets)

9.80

9.62

9.75

Tangible common equity ratio (3)

9.42

9.22

9.26

March 31,

December 31,

March 31,

ASSET QUALITY RATIOS AND DATA:

2026

2025

2025

Nonperforming assets to total assets at end of period (4)

0.57

%

0.59

%

0.47

%

Nonperforming loans to total gross loans (excluding loans HFS) (5)

0.69

0.71

0.57

ACL – loans to nonperforming loans (5)

177.67

170.59

219.08

ACL – loans to total gross loans (excluding loans HFS)

1.22

1.20

1.25

At or For the Three Months Ended

March 31,

December 31,

March 31,

PER COMMON SHARE DATA:

2026

2025

2025

Basic earnings per share

$

1.04

$

1.12

$

1.02

Diluted earnings per share

$

1.02

$

1.10

$

1.01

Weighted average basic shares outstanding

7,402,375

7,414,419

7,695,320

Weighted average diluted shares outstanding

7,531,291

7,529,471

7,805,728

Common shares outstanding at end of period

7,398,571

(6)

7,404,548

(7)

7,639,844

(8)

Book value per share using common shares outstanding

$

42.42

$

41.55

$

39.12

Tangible book value per share using common shares outstanding (9)

$

40.61

$

39.65

$

36.96

(1)

Annualized.

(2)

Total noninterest expense as a percentage of net interest income and total noninterest income.

(3)

Represents a non-GAAP financial measure.  For a reconciliation to the most comparable 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 7,501,542 at March 31, 2026, less 102,971 unvested restricted stock shares.

(7)

Common shares were calculated using shares outstanding of 7,507,519 at December 31, 2025, less 102,971 unvested restricted stock shares.

(8)

Common shares were calculated using shares outstanding of 7,742,907 at March 31, 2025, less 103,063 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.

FS Bancorp Q1 Earnings

April 21, 2026

Page 15

(Dollars in thousands)

For the Three Months Ended March 31,

QTR Over QTR

Average Balances

2026

2025

$ Change

Assets

Loans receivable, net (1)

$

2,700,993

$

2,560,107

$

140,886

Investment securities - taxable

254,244

241,429

12,815

Investment securities - nontaxable

78,144

77,643

501

Interest-bearing deposits and certificates of deposit at other financial institutions

23,082

16,161

6,921

FHLB stock, at cost

8,057

11,948

(3,891

)

Total interest-earning assets

3,064,520

2,907,288

157,232

Noninterest-earning assets

136,839

125,224

11,615

Total assets

$

3,201,359

$

3,032,512

$

168,847

Liabilities

Interest-bearing deposit accounts

$

2,009,158

$

1,765,605

$

243,553

Borrowings

132,250

218,639

(86,389

)

Subordinated notes

49,666

49,600

66

Total interest-bearing liabilities

2,191,074

2,033,844

157,230

Noninterest-bearing deposit accounts

658,746

663,824

(5,078

)

Other noninterest-bearing liabilities

34,805

33,739

1,066

Total liabilities

$

2,884,625

$

2,731,407

$

153,218

(1) Includes loans HFS.

FS Bancorp Q1 Earnings

April 21, 2026

Page 16

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 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)

March 31,

December 31,

March 31,

Tangible Book Value Per Share:

2026

2025

2025

Stockholders' equity (GAAP)

$

313,852

$

307,694

$

298,840

Less: goodwill and core deposit intangible, net

(13,366)

(14,110)

(16,471)

Tangible common stockholders' equity (non-GAAP)

$

300,486

$

293,584

$

282,369

Common shares outstanding at end of period

7,398,571

(1)

7,404,548

(2)

7,639,844

(3)

Book value per share (GAAP)

$

42.42

$

41.55

$

39.12

Tangible book value per share (non-GAAP)

$

40.61

$

39.65

$

36.96

Tangible Common Equity Ratio:

Total assets (GAAP)

$

3,203,515

$

3,196,847

$

3,066,078

Less: goodwill and core deposit intangible assets

(13,366)

(14,110)

(16,471)

Tangible assets (non-GAAP)

$

3,190,149

$

3,182,737

$

3,049,607

Common equity ratio (GAAP)

9.80

%

9.62

%

9.75

%

Tangible common equity ratio (non-GAAP)

9.42

9.22

9.26

_________________________

(1)

Common shares were calculated using shares outstanding of 7,501,542 at March 31, 2026, less 102,971 unvested restricted stock shares.

(2)

Common shares were calculated using shares outstanding of 7,507,519 at December 31, 2025, less 102,971 unvested restricted stock shares.

(3)

Common shares were calculated using shares outstanding of 7,742,907 at March 31, 2025, less 103,063 unvested restricted stock shares.

FS Bancorp Q1 Earnings

April 21, 2026

Page 17

Additional Information About the Merger and Where to Find It

This press release does not constitute an offer to sell or the solicitation of an offer to buy or exchange any securities or a solicitation of any vote or approval with respect to the proposed transaction with Pacific West Bancorp.

In connection with the proposed merger, a registration statement on Form S-4 will be filed with the SEC that will include a proxy statement of Pacific West Bancorp and a prospectus of the Company, which will be distributed to the shareholders of Pacific West Bancorp in connection with its votes on the merger of Pacific West Bancorp with and into the Company and the issuance of Company common stock in the proposed transaction.  INVESTORS AND SECURITY HOLDERS ARE ENCOURAGED TO READ THE REGISTRATION STATEMENT AND PROXY STATEMENT/PROSPECTUS WHEN THEY BECOME AVAILABLE (ANY OTHER DOCUMENTS FILED WITH THE SEC IN CONNECTION WITH THE PROPOSED TRANSACTION OR INCORPORATED BY REFERENCE INTO THE PROXY STATEMENT/PROSPECTUS) BECAUSE SUCH DOCUMENTS WILL CONTAIN IMPORTANT INFORMATION REGARDING THE PROPOSED MERGER AND RELATED MATTERS.

Investors and security holders will be able to obtain free copies of the registration statement on Form S-4 and the related proxy statement/prospectus, when filed, as well as other documents filed with the SEC by the Company through the website maintained by the SEC at www.sec.gov.  These documents, when available, also can be obtained free of charge by accessing the Company’s website at www.fsbwa.com under the tab “Investor Relations” and then under “SEC Filings.”  Alternatively, these documents, when filed with the SEC by the Company, can be obtained free of charge by (1) writing to FS Bancorp, Inc at 6920 220th Street SW, Mountlake Terrace, Washington 98043, Attn: Investor Relations or (2) by calling (425) 771-5299.

Participants in the Solicitation

The Company, Pacific West Bancorp and certain of their respective directors and executive officers may be deemed to be participants in the solicitation of proxies from the shareholders of Pacific West Bancorp in connection with the proposed transaction.  Information about the Company's directors and executive officers is included in the proxy statement for its 2026 annual meeting of the Company’s shareholders, which was filed with the SEC on April 6, 2026.  Information about Pacific West Bancorp’s participants and additional information regarding the interests of these participants will be included in the proxy statement/prospectus regarding the proposed transaction when it becomes available.  Free copies of this document may be obtained as described above.

Contacts:

Matthew D. Mullet,

President and Chief Executive Officer

Phillip D. Whittington,

Chief Financial Officer

(425) 771-5299

www.FSBWA.com

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