Monitor Q4 2026 for completion of core system conversion and remaining acquisition-related expenses; the integration of Pacific West and stabilization of Home Lending margins will be key to earnings recovery.
Price Chart
Executive Summary
FS Bancorp reported a sharp decline in Q3 2026 earnings: net income fell to $4.9M ($0.63/diluted share) from $9.2M ($1.18) a year ago, driven by $2.5M in merger costs from the Pacific West acquisition, a $806K loss in the Home Lending segment due to rising rates, and higher noninterest expenses. The company declared its 55th consecutive quarterly dividend of $0.29/share, maintaining its payout. The acquisition added $476.5M in assets but also brought $8.6M in nonaccrual loans, pressuring credit quality.
Key Financial Metrics
Key Facts
- Q3 2026 net income $4.9M vs $9.2M in Q3 2025, down 46% YoY
- Diluted EPS $0.63 vs $1.18 in Q3 2025, down 47% YoY
- Home Lending segment posted a net loss of $806K vs income of $775K in Q3 2025
- Total noninterest expense rose 27% YoY to $32.3M, including $2.5M in acquisition costs
- Nonperforming loans increased to $25.1M from $15.6M at June 30, 2026, driven by $8.6M in acquired nonaccrual loans
- Book value per share fell 1.2% sequentially to $43.05; tangible book value fell 2.4% to $40.84
- Bank remained well capitalized with total risk-based capital ratio of 12.6%
- Declared $0.29 quarterly dividend, payable Nov 20, 2026 to holders of record Nov 6, 2026
Financial Impact
Net income declined $4.3M (46%) YoY; EPS fell $0.55 (47%) YoY; noninterest expense increased $6.9M (27%) YoY; nonperforming loans rose $9.5M (61%) sequentially
Risk Factors
- Continued pressure from rising interest rates on Home Lending segment profitability
- Credit quality deterioration from acquired Pacific West loan portfolio, particularly $8.6M in nonaccrual loans
- Higher operating expenses from acquisition integration may persist into Q4 2026
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3385940 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 23, 2026 3d ago | 8-K | $43.88 $43.77 | ▼ −0.25% | ▼ −0.96% | $43.77 (−0.25%) |
Oct 21, 2026 5d ago | 8-K | $44.35 $43.88 | ▲ +1.06% | ▲ +0.54% | $43.77 (+1.31%) |
Oct 21, 2026 5d ago | Press Release | $44.35 $43.88 | ▲ +1.06% | ▲ +0.54% | $43.77 (+1.31%) |
Aug 28, 2026 8w ago | 144 | $42.85 $42.30 | ▼ −1.28% | ▼ −0.98% | $43.77 (+2.15%) |
Aug 24, 2026 9w ago | 8-K | $42.94 $42.73 | ▼ −0.49% | ▼ −0.81% | $43.77 (+1.93%) |
Aug 24, 2026 9w ago | Press Release | $42.94 $42.73 | ▼ −0.49% | ▼ −0.81% | $43.77 (+1.93%) |
Aug 21, 2026 9w ago | 8-K | $42.47 $42.94 | ▲ +1.11% | ▲ +1.40% | $43.77 (+3.06%) |
Aug 20, 2026 9w ago | Press Release | $42.60 $42.47 | ▼ −0.31% | ▼ −0.71% | $43.77 (+2.75%) |
Aug 11, 2026 10w ago | 8-K | $42.61 $43.79 | ▲ +2.77% | ▲ +2.52% | $43.77 (+2.72%) |
Jul 16, 2026 14w ago | EFFECT | $45.27 $44.03 | ▼ −2.74% | ▼ −1.75% | $43.77 (−3.31%) |
US Market Status
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