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FS Bancorp Q1 2025 Earnings Report
FS Bancorp, Inc. reported its first quarter 2025 financial results, with net income of $8.0 million and diluted EPS of $1.01.
Key Takeaways
FS Bancorp, Inc. reported a net income of $8.0 million for the first quarter of 2025, a 9% increase from the previous quarter but a 4% decrease compared to the same quarter last year. Diluted earnings per share were $1.01. Total deposits increased by 11.8% to $2.62 billion, primarily driven by brokered deposits. Borrowings significantly decreased by 77.6%, repositioned into wholesale brokered CDs.
Net income for Q1 2025 was $8.0 million, up from $7.4 million in the prior quarter but down from $8.4 million in Q1 2024.
Total deposits grew by $275.7 million (11.8%) to $2.62 billion, with a notable increase in brokered deposits.
Borrowings decreased by $239.0 million (77.6%) to $68.8 million, largely replaced by wholesale brokered CDs.
The Board approved a $0.28 per common share quarterly cash dividend, marking the forty-ninth consecutive dividend.
FS Bancorp
FS Bancorp
FS Bancorp Revenue by Segment
Revenue by Segment
Commercial and Consumer Banking Revenue
CapyFin.comHome Lending Revenue
CapyFin.com Forward Guidance
The Company's forward-looking statements indicate potential for variability in actual results due to various economic, market, and regulatory factors. Management's current expectations are subject to inherent uncertainties.
Positive Outlook
- Continued commitment to returning value to shareholders through quarterly cash dividends.
- Deposit growth exceeding expectations, positioning the Bank well for loan pipeline.
- Gross margins on home loan sales increased to 3.26% in Q1 2025.
- Net interest income increased due to higher total interest income from loan growth and variable rate loans.
- Regulatory capital ratios remain strong, exceeding requirements.
Challenges Ahead
- Potential adverse impacts from economic conditions, including inflation and recession.
- Changes in interest rate environment could affect revenues, expenses, asset values, and liquidity.
- Increased competitive pressures impacting market position and product offerings.
- Challenges in expanding into new geographic markets, products, or services.
- Volatility in the mortgage industry and fluctuations in deposits could impact operations.