The 55th consecutive quarterly dividend is set at 29 cents a share.
FS Bancorp (FSBW) reported Q3 2026 net income of $4.9M, down from prior periods. The company completed its acquisition of Pacific West Bancorp, receiving 430,149 shares. Total deposits rose 17.1% to $2.87B, and loans increased 14.4% to $3.01B. The board approved a 29-cent quarterly dividend, marking 55 consecutive quarters. Shares repurchased totaled 44,664 at $43.41 each.
How this was made
The 30-second read
Why it matters
The earnings miss and modest dividend could lead to short-term price pressure, while deposit growth from the acquisition may provide a longer-term upside.
Market read
Primary relevance to FS Bancorp shareholders and regional banking investors; secondary relevance to peers with similar acquisition strategies.
What to watch
Strong deposit inflow from Pacific West acquisition and improved capital ratios may offset short-term earnings dip.
Background
FS Bancorp, a regional bank holding company, released its third-quarter 2026 earnings and dividend announcement following a recent acquisition of Pacific West Bancorp.
Ticker impact
FS Bancorp reported Q3 2026 net income of $4.9M and announced its 55th consecutive quarterly cash dividend of 29 cents per share.
likely slight downside as investors price in lower earnings and modest payout
Net income fell from the prior quarter and the dividend, while consistent, is modest; deposit growth from the recent acquisition may not offset earnings weakness in the short term.
Market effects
Regional banking sector may see pressure from earnings weakness but deposit growth could support peers.
Pacific Northwest banks could be affected by similar acquisition-driven growth dynamics.
Limited to U.S. regional banking; minimal global impact.
Counterpoint
Dividend sustainability concerns may be overstated; acquisition could drive longer-term earnings upside.
Key entities
- companyFS Bancorp, Inc.
Holding company for 1st Security Bank of Washington, ticker FSBW.
- companyPacific West Bancorp
Acquired bank whose deposits contributed to FS Bancorp's growth.