FS Bancorp (FSBW) Q2 2026 earnings summary

Executive summary

• Net income for Q2 2026 was $7.9 million ($1.04 per diluted share), up from $7.7 million in Q2 2025; six-month net income was $15.8 million, nearly flat year-over-year.

• Announced a definitive agreement to acquire Pacific West Bancorp for $34.6 million, expected to close in Q3 2026, with ongoing integration efforts.

• Announced 54th consecutive quarterly cash dividend of $0.29 per share, payable August 21, 2026.

Financial highlights

• Net interest income for Q2 2026 was $32.6 million, up $536,000 year-over-year; net interest margin remained stable at 4.30%.

• Book value per share increased to $43.57 at June 30, 2026; tangible book value per share rose to $41.84.

• Noninterest income for Q2 2026 rose $980,000 year-over-year to $6.2 million, mainly from higher gains on loan sales.

• Noninterest expense increased by $602,000 to $26.1 million, including $417,000 in acquisition/merger-related costs.

• Total assets decreased by $17.8 million to $3.18 billion since year-end 2025, mainly due to lower securities and loans held for sale, partially offset by loan growth.

Outlook and guidance

• Management expects continued loan growth in CRE and residential lending, with ongoing focus on asset quality, funding cost management, and merger integration.

• Management expects final resolution of a significant commercial construction loan charge-off in the second half of 2026.

• The Pacific West acquisition is anticipated to close in Q3 2026, expanding the company’s presence in the Portland, OR market.