FS Bancorp (FSBW) Investor presentation summary

Franchise overview and growth

• Total assets reached $2.94 billion as of June 30, 2024, with 29 branches and 14 loan production offices across Washington and Oregon.

• Significant growth through acquisitions, including Anchor Bancorp in 2018 and Columbia Bank branches in 2023.

• Asset growth from $828 million in 2016 to $2.94 billion in Q2 2024.

• Forty-six consecutive quarterly cash dividends, with the latest at $0.27 per share.

• Focus on being a great place to work and bank, with a strong culture and core values.

Financial performance and capital position

• Q2 2024 net income was $9.0 million, with diluted EPS of $1.13 and ROAA of 1.22%.

• Tangible book value per share increased to $34.66, and all capital ratios remain above well-capitalized thresholds.

• Net interest margin stood at 4.29%, and the efficiency ratio was 65.78%.

• Total deposits were $2.4 billion, with a cost of deposits at 2.18%.

• Regular dividend payout ratio was 23.9% in Q2 2024, with ongoing share repurchases.

Lending and business segments

• Gross loans totaled $2.5 billion, with a diversified portfolio: 26% indirect home improvement/consumer, 24% one-to-four-family, 18% commercial & industrial, 11% construction & development, and 10% multi-family.

• Consumer lending portfolio yield rose to 7.41% in Q2 2024, with $641.7 million outstanding.

• Commercial & industrial loans outstanding reached $484.8 million, up $49.1 million sequentially.

• Construction and development loans had $464.3 million committed and $274.2 million outstanding, with a 9.08% average coupon.

• Mortgage banking and gain on sale revenue have declined as a percentage of total revenue since 2021.