FS Bancorp reported a decrease in net income to $4.9 million for the third quarter of 2026, down from $9.2 million in the prior-year period. Results were significantly impacted by $2.5 million in merger-related expenses following the August 19, 2026, acquisition of Pacific West Bancorp, partially offset by a $1.7 million preliminary bargain purchase gain.
Key Highlights
- Total loans receivable increased 14.4% sequentially to $3.01 billion, bolstered by $252.7 million in acquired loans and $131.7 million in organic growth during the quarter.
- Total deposits climbed 17.1% to $2.87 billion, primarily reflecting the addition of $442.8 million in deposits from the Pacific West acquisition.
- The Home Lending segment reported a net loss of $806,000 due to the impact of rising interest rates on mortgage activity, compared to a profit of $775,000 in the prior year.
- Asset quality remains stable with a regulatory total risk-based capital ratio of 12.6% at the Bank level, while tangible book value per share decreased to $40.84 from $41.84 in the prior quarter.