# EDGAR Filing Document

**Accession Number:** 0001530249
**File Stem:** 0001437749-26-012996
**Filing Date:** 2026-4
**Character Count:** 58633
**Document Hash:** 97136f91e7e51ece8410050d07b95fa7
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001437749-26-012996.hdr.sgml**: 20260422

**ACCESSION NUMBER**: 0001437749-26-012996

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 14

**CONFORMED PERIOD OF REPORT**: 20260421

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Other Events

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20260422

**DATE AS OF CHANGE**: 20260422

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** FS Bancorp, Inc.
- **CENTRAL INDEX KEY:** 0001530249
- **STANDARD INDUSTRIAL CLASSIFICATION:** SAVINGS INSTITUTIONS, NOT FEDERALLY CHARTERED [6036]
- **ORGANIZATION NAME:** 02 Finance
- **EIN:** 454585178
- **STATE OF INCORPORATION:** WA
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-35589
- **FILM NUMBER:** 26882194

**BUSINESS ADDRESS:**
- **STREET 1:** 6920 220TH STREET SW
- **CITY:** MOUNTLAKE TERRACE
- **STATE:** WA
- **ZIP:** 98043
- **BUSINESS PHONE:** 425-771-5299

**MAIL ADDRESS:**
- **STREET 1:** 6920 220TH STREET SW
- **CITY:** MOUNTLAKE TERRACE
- **STATE:** WA
- **ZIP:** 98043

?xml version='1.0' encoding='ASCII'? fsbw20260226_8k.htm

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM **8-K**

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934**

Date of Report (Date of earliest event reported): **April 21, 2026**

**FS BANCORP, INC.**

(Exact name of registrant as specified in its charter)

---

| | | |
|:---|:---|:---|
| **Washington** | **001-35589** | **45-4585178** |
| (State or other jurisdiction<br> of incorporation) | (Commission<br> File Number) | (I.R.S. Employer<br> Identification No.) |

---

---

| | |
|:---|:---|
| **6920 220th Street SW**<br> **Mountlake Terrace**, **Washington** | **98043** |
| (Address of principal executive offices) | (Zip Code) |

---

**Registrant's telephone number, including area code: (**425**) **771-5299**

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions.

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
| Common Stock, par value $.01 per share | FSBW | The NASDAQ Stock Market LLC |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

------

**Item 2.02 Results of Operations and Financial Condition**

On April 21, 2026, FS Bancorp, Inc. (the Company), the parent corporation of 1st Security Bank of Washington, issued its earnings release for the quarter ended March 31, 2026. A copy of the press release is furnished with this Form 8-K as Exhibit 99.1 and is incorporated herein by reference.

**Item 8.01 Other Events**

On April 21, 2026, the Company announced its Board of Directors declared a regular quarterly cash dividend on Company common stock of $0.29 per share, payable on May 21, 2026, to stockholders of record as of the close of business on May 7, 2026.

**Item 9.01 Exhibits**

(d) Exhibits

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| | |
|:---|:---|
| 99.1 | [Press release of FS Bancorp, Inc. dated April 21, 2026](ex_925751.htm) |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

------

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | |
|:---|:---|
| Date: April 22, 2026 | FS BANCORP, INC. |
|  | /s/Phillip D. Whittington |
|  | Phillip D. Whittington |
|  | Chief Financial Officer |

---

## Exhibit 99.1

**Exhibit 99.1**

![logo.jpg](logo.jpg)

**FS Bancorp, Inc. Reports First Quarter Net Income of $7.8 Million or $1.02 Per Diluted Share and Declares 53rd Consecutive Quarterly Cash Dividend** 

MOUNTLAKE TERRACE, WA – April 21, 2026 – FS Bancorp, Inc. (NASDAQ: FSBW) (the "Company"), the holding company for 1st Security Bank of Washington (the "Bank") today reported 2026 first quarter net income of $7.8 million, or $1.02 per diluted share, compared to $8.4 million, or $1.10 per diluted share, for the prior quarter, and $8.0 million, or $1.01 per diluted share, for the comparable quarter one year ago. Pre-tax income of $9.9 million in the first quarter of 2026 increased $440,000, or 4.6%, from $9.5 million in the first quarter of 2025, with the decrease in net income between those periods primarily reflecting a higher effective income tax rate.

"We are excited about the announced merger with Pacific West Bancorp that occurred in February and our projected growth into the Portland, Oregon market area later in 2026," stated Matthew Mullet, CEO and President of 1st Security Bank.

"Book value per share reached a split adjusted record of $42.42 in the first quarter of 2026, reflecting sustained earnings growth and disciplined capital management," stated Joe Adams, CEO of FS Bancorp, Inc. "We are also pleased to announce that our Board of Directors has approved our 53rd consecutive quarterly cash dividend of $0.29 per common share, demonstrating our commitment to returning capital to long-term shareholders. The cash dividend will be paid on May 21, 2026, to shareholders of record as of May 7, 2026," concluded Adams.

**2026 First Quarter Highlights**

● Net income totaled $7.8 million for the first quarter of 2026 , compared to $8.4 million for the previous quarter, and $8.0 million for the comparable quarter one year ago. The linked quarter-over-quarter decrease is primarily due to a $1.0 million bank owned life insurance mortality benefit received in the prior quarter with no such benefit for the first quarter of 2026. Pre-tax income grew to $9.9 million in the first quarter of 2026 , up $440,000, or 4.6%, from $9.5 million in the comparable quarter one year ago, driven by growth in net interest income and Home Lending segment results;

● Total deposits, excluding brokered deposits, were unchanged at $2.31 billion at March 31, 2026 and December 31, 2025 , and increased $65.2 million, or 2.9%, from $2.24 billion at March 31, 2025 . The cost of deposits decreased to 2.24% for the quarter ended March 31, 2026 , from 2.26% for the quarter ended December 31, 2025 primarily due to repricing on maturing certificates of deposits and other deposit repricing activities;

● Loans receivable, net was $2.62 billion at both March 31, 2026 and December 31, 2025 , and increased $123.0 million, or 4.9%, from $2.50 billion at March 31, 2025 . Net growth of $17.4 million in the commercial real estate portfolio was partially offset by heightened payoff activity in the consumer loan portfolio for the quarter ended March 31, 2026 ;

● Consumer loans were $583.5 million at March 31, 2026 , a decrease of $13.5 million, or 2.3%, from $597.0 million in the previous quarter, and a decrease of $25.4 million, or 4.2%, from $608.9 million in the comparable quarter one year ago. During the three months ended March 31, 2026 , consumer loan originations included 83.3% of home improvement loans originated with a Fair Isaac Corporation ("FICO") score above 720;

● Home Lending production increased significantly compared to the comparable quarter one year ago, totaling $207.5 million for the three months ended March 31, 2026 , compared to $145.4 million for the three months ended March 31, 2025 , a 42.7% increase, driven by improved rate activity;

● Segment reporting in the first quarter of 2026 reflected net income of $6.7 million for the Commercial and Consumer Banking segment and $1.1 million for the Home Lending segment, compared to net income of $7.8 million and $643,000 in the prior quarter, and net income of $7.8 million and $241,000 in the first quarter of 2025 , respectively;

------

FS Bancorp Q1 Earnings

April 21, 2026

● Repurchased $620,000, or 15,025 shares of the Company's common stock in the first quarter of 2026 at an average price of $41.24 per share, with $3.6 million remaining for future purchases under the existing share repurchase plan as of March 31, 2026 ;

● Book value per share increased $0.87 to $42.42 at March 31, 2026 , compared to $41.55 at December 31, 2025 , and increased $3.30 from $39.12 at March 31, 2025 . Tangible book value per share (non-GAAP financial measure) increased $0.96 to $40.61 at March 31, 2026 , compared to $39.65 at December 31, 2025 , and increased $3.65 from $36.96 at March 31, 2025 . See, "Non-GAAP Financial Measures;"; and

● Regulatory capital ratios at the Bank were 13.8% for total risk-based capital and 11.2% for Tier 1 leverage capital at March 31, 2026 , compared to 14.0% for total risk-based capital and 11.0% for Tier 1 leverage capital at December 31, 2025 .

**Segment Reporting**

The Company operates through two reportable segments: Commercial and Consumer Banking and Home Lending. The Commercial and Consumer Banking segment provides diversified financial products and services to our commercial and consumer customers. These products and services include deposit products; residential, consumer, business and commercial real estate lending and cash management services. This segment also manages the Bank's investment portfolio and other assets. The Home Lending segment originates one-to-four-family residential mortgage loans primarily for sale in the secondary markets as well as loans held for investment.

The tables below provide a summary of segment reporting at or for the three months ended March 31, 2026 and 2025 (dollars in thousands):

---

| | | | |
|:---|:---|:---|:---|
|  | At or For the Three Months Ended March 31, 2026 | At or For the Three Months Ended March 31, 2026 | At or For the Three Months Ended March 31, 2026 |
| Condensed income statement: | Commercial and Consumer Banking | Home Lending | Total |
| Net interest income <sup>(1)</sup> | $29552 | $2993 | $32545 |
| (Provision) recovery for credit losses | (2545) | 16 | (2529) |
| Noninterest income <sup>(2)</sup> | 2464 | 2937 | 5401 |
| Noninterest expense <sup>(3)</sup> | (20862) | (4658) | (25520) |
| Income before provision for income taxes | 8609 | 1288 | 9897 |
| Provision for income taxes | (1863) | (204) | (2067) |
| Net income | $6746 | $1084 | $7830 |
| Total average assets for period ended | $2543059 | $658300 | $3201359 |
| Full-time employees ("FTEs") | 469 | 116 | 585 |

---

---

| | | | |
|:---|:---|:---|:---|
|  | At or For the Three Months Ended March 31, 2025 | At or For the Three Months Ended March 31, 2025 | At or For the Three Months Ended March 31, 2025 |
| Condensed income statement: | Commercial and Consumer Banking | Home Lending | Total |
| Net interest income <sup>(1)</sup> | $28407 | $2575 | $30982 |
| Provision for credit losses | (1321) | (271) | (1592) |
| Noninterest income <sup>(2)</sup> | 2246 | 2880 | 5126 |
| Noninterest expense <sup>(3)</sup> | (20176) | (4879) | (25055) |
| Income before provision for income taxes | 9156 | 305 | 9461 |
| Provision for income taxes | (1376) | (64) | (1440) |
| Net income | $7780 | $241 | $8021 |
| Total average assets for period ended | $2414100 | $618412 | $3032512 |
| FTEs | 454 | 113 | 567 |

---

------

FS Bancorp Q1 Earnings

April 21, 2026

________________________

&nbsp;&nbsp;&nbsp;&nbsp;(1) Net interest income is the difference between interest earned on assets and the cost of liabilities to fund those assets. Interest earned includes actual interest earned on segment assets and, if the segment has excess liabilities, interest credits for providing funding to the other segment. The cost of liabilities includes interest expense on segment liabilities and, if the segment does not have enough liabilities to fund its assets, a funding charge based on the cost of assigned liabilities to fund segment assets.

&nbsp;&nbsp;&nbsp;&nbsp;(2) Noninterest income includes activity from certain residential mortgage loans that were initially originated for sale and measured at fair value and subsequently transferred to loans held for investment. Gains and losses from changes in fair value for these loans are reported in earnings as a component of noninterest income. For the three months ended March 31, 2026 , the Company recorded a net decrease in fair value of $101,000, compared to a net increase in fair value of $263,000, for the three months ended March 31, 2025 . As of March 31, 2026 and 2025 , there were $13.0 million and $14.5 million, respectively, in residential mortgage loans recorded at fair value as they were previously transferred from loans held for sale to loans held for investment.

&nbsp;&nbsp;&nbsp;&nbsp;(3) Noninterest expense includes allocated overhead expense from general corporate activities. Allocation is determined based on a combination of segment assets and FTEs. For the three months ended March 31, 2026 and 2025 , the Home Lending segment included allocated overhead expenses of $1.9 million and $1.8 million, respectively.

**Asset Summary**

The following table presents the components and changes in total assets as of the dates indicated.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **ASSETS** |  |  |  | Linked Quarter | Prior Year |
| (Dollars in thousands) | March 31, | December 31, | March 31, | Change | Quarter Change |
|  | 2026 | 2025 | 2025 | % | % |
| Cash and due from banks | $12424 | $13504 | $18657 | (8)% | (33)% |
| Interest-bearing deposits at other financial institutions | 26278 | 14715 | 44084 | 79 | (40) |
| Total cash and cash equivalents | 38702 | 28219 | 62741 | 37 | (38) |
| Certificates of deposit at other financial institutions |  |  | 1234 | NM | (100) |
| Securities available-for-sale, at fair value | 271007 | 288667 | 291133 | (6) | (7) |
| Securities held-to-maturity, net | 33267 | 33224 | 10434 |  | 219 |
| Loans held for sale, at fair value | 56275 | 43705 | 31038 | 29 | 81 |
| Loans receivable, net | 2624091 | 2623172 | 2501117 |  | 5 |
| Accrued interest receivable | 15333 | 14614 | 14406 | 5 | 6 |
| Premises and equipment, net | 43612 | 44065 | 29451 | (1) | 48 |
| Long-lived assets held for sale | 3258 | 3258 |  |  |  |
| Operating lease right-of-use | 5472 | 5789 | 4979 | (5) | 10 |
| Federal Home Loan Bank stock, at cost | 8701 | 7971 | 5256 | 9 | 66 |
| Deferred tax asset, net | 7175 | 6993 | 7009 | 3 | 2 |
| Bank owned life insurance ("BOLI"), net | 36508 | 36249 | 38778 | 1 | (6) |
| MSRs, held at the lower of cost or fair value | 8676 | 8608 | 8926 | 1 | (3) |
| Goodwill | 3592 | 3592 | 3592 |  |  |
| Core deposit intangible, net | 9774 | 10518 | 12879 | (7) | (24) |
| Other assets | 38072 | 38203 | 43105 |  | (12) |
| **TOTAL ASSETS** | $3203515 | $3196847 | $3066078 | —% | 4% |

---

------

FS Bancorp Q1 Earnings

April 21, 2026

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **LOAN PORTFOLIO** |  |  |  |  |  |  |
| (Dollars in thousands) |  |  |  |  |  |  |
| **COMMERCIAL REAL ESTATE** | March 31, 2026 | March 31, 2026 | December 31, 2025 | December 31, 2025 | March 31, 2025 | March 31, 2025 |
| **("CRE") LOANS** | Amount | Percent | Amount | Percent | Amount | Percent |
| CRE owner occupied | $182260 | 6.9% | $176078 | 6.6% | $164911 | 6.5% |
| CRE non-owner occupied | 182568 | 6.9 | 177113 | 6.7 | 174188 | 6.9 |
| Commercial and speculative construction and development | 358657 | 13.5 | 354130 | 13.3 | 288978 | 11.4 |
| Multi-family | 263353 | 9.9 | 262150 | 9.9 | 244940 | 9.7 |
| Total CRE loans | 986838 | 37.2 | 969471 | 36.5 | 873017 | 34.5 |
| **RESIDENTIAL REAL ESTATE LOANS** |  |  |  |  |  |  |
| One-to-four-family (excludes HFS) | 630996 | 23.8 | 628761 | 23.7 | 637299 | 25.2 |
| Home equity | 88468 | 3.3 | 88271 | 3.3 | 73846 | 2.9 |
| Residential custom construction | 44134 | 1.7 | 42329 | 1.6 | 48810 | 1.9 |
| Total residential real estate loans | 763598 | 28.8 | 759361 | 28.6 | 759955 | 30.0 |
| **CONSUMER LOANS** |  |  |  |  |  |  |
| Indirect home improvement | 513437 | 19.3 | 525842 | 19.8 | 532038 | 21.0 |
| Marine | 67126 | 2.5 | 68115 | 2.6 | 73737 | 2.9 |
| Other consumer | 2921 | 0.1 | 3029 | 0.1 | 3118 | 0.1 |
| Total consumer loans | 583484 | 21.9 | 596986 | 22.5 | 608893 | 24.0 |
| **COMMERCIAL BUSINESS LOANS** |  |  |  |  |  |  |
| Commercial and industrial ("C&I") | 304470 | 11.5 | 301111 | 11.3 | 274956 | 10.9 |
| Warehouse lending | 18144 | 0.6 | 28180 | 1.1 | 15949 | 0.6 |
| Total commercial business loans | 322614 | 12.1 | 329291 | 12.4 | 290905 | 11.5 |
| Total loans receivable, gross | 2656534 | 100.0% | 2655109 | 100.0% | 2532770 | 100.0% |
| Allowance for credit losses ("ACL") on loans | (32443) |  | (31937) |  | (31653) |  |
| Total loans receivable, net | $2624091 |  | $2623172 |  | $2501117 |  |

---

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FS Bancorp Q1 Earnings

April 21, 2026

The composition of CRE loans at the dates indicated were as follows:

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| | | | |
|:---|:---|:---|:---|
| (Dollars in thousands) |  |  |  |
| **CRE by Type:** | March 31, 2026 | December 31, 2025 | March 31, 2025 |
| CRE non-owner occupied: |  |  |  |
| Office | $43532 | $44429 | $39406 |
| Retail | 42186 | 36387 | 35520 |
| Hospitality/restaurant | 24673 | 24848 | 27377 |
| Self-storage | 18844 | 18924 | 19092 |
| Mixed use | 18674 | 18903 | 18868 |
| Industrial | 14064 | 14263 | 15033 |
| Other | 9249 | 7729 | 6579 |
| Senior housing/assisted living | 7263 | 7329 | 7506 |
| Education/worship | 2387 | 2414 | 2493 |
| Land | 1696 | 1887 | 2314 |
| Total CRE non-owner occupied | 182568 | 177113 | 174188 |
| CRE owner occupied: |  |  |  |
| Industrial | 74904 | 75347 | 66618 |
| Office | 35100 | 30311 | 40447 |
| Retail | 27443 | 24248 | 20535 |
| Other | 10674 | 10492 | 8529 |
| Hospitality/restaurant | 8125 | 7583 | 7306 |
| Mixed use | 7685 | 7831 | 5579 |
| Automobile related | 6792 | 7111 | 7266 |
| Car wash | 4394 | 4412 |  |
| Agriculture | 3759 | 4136 | 3990 |
| Education/worship | 3384 | 4607 | 4641 |
| Total CRE owner occupied | 182260 | 176078 | 164911 |
| Total | $364828 | $353191 | $339099 |

---

The following table includes CRE loans repricing or maturing within the next two years, excluding loans that reprice simultaneously with changes to the prime rate:

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  |  |  |  |  |  |  |  |  | Current |
| (Dollars in |  |  |  |  |  |  |  |  |  | Weighted |
| thousands) | For the Quarter Ended | For the Quarter Ended | For the Quarter Ended | For the Quarter Ended | For the Quarter Ended | For the Quarter Ended | For the Quarter Ended | For the Quarter Ended |  | Average |
| **CRE by type:** | Jun 30, 2026 | Sep 30, 2026 | Dec 31, 2026 | Mar 31, 2027 | Jun 30, 2027 | Sep 30, 2027 | Dec 31, 2027 | Mar 31, 2028 | Total | Rate |
| Agriculture | $627 | $259 | $— | $— | $— | $— | $— | $— | $886 | 6.21% |
| Apartment | 13865 | 9149 | 16078 | 27722 | 18059 | 4118 | 12379 | 15898 | 117268 | 5.93% |
| Hotel / hospitality |  | 108 |  |  |  |  |  |  | 108 | 8.75% |
| Industrial | 572 | 1409 |  | 13577 | 3278 | 5680 | 5231 | 2808 | 32555 | 5.73% |
| Mixed use | 768 |  | 370 | 1292 |  |  | 3228 | 450 | 6108 | 6.73% |
| Office | 4533 | 542 | 7525 | 2790 |  | 7402 | 3718 |  | 26510 | 5.26% |
| Other |  | 2387 | 2317 |  | 1766 | 324 |  |  | 6794 | 4.94% |
| Retail | 3366 |  | 3324 | 2934 | 2337 | 7412 |  |  | 19373 | 4.68% |
| Senior housing and assisted living |  | 2094 |  |  | 1345 |  |  | 3041 | 6480 | 6.88% |
| Total | $23731 | $15948 | $29614 | $48315 | $26785 | $24936 | $24556 | $22197 | $216082 |  |

---

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FS Bancorp Q1 Earnings

April 21, 2026

The composition of construction loans at the dates indicated were as follows:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| (Dollars in thousands) | March 31, 2026 | March 31, 2026 | December 31, 2025 | December 31, 2025 | March 31, 2025 | March 31, 2025 |
| **Construction Types:** | Amount | Percent | Amount | Percent | Amount | Percent |
| Commercial construction – retail | $8450 | 2.1% | $8452 | 2.1% | $8157 | 2.4% |
| Commercial construction – office | 9442 | 2.3 | 9236 | 2.3 | 6487 | 1.9 |
| Commercial construction – self storage | 24217 | 6.0 | 22437 | 5.7 | 16012 | 4.7 |
| Commercial construction – hotel | 11968 | 3.0 | 9404 | 2.4 | 402 | 0.1 |
| Multi-family | 44343 | 11.0 | 37403 | 9.4 | 31275 | 9.3 |
| Custom construction – single family residential and single family manufactured residential | 33425 | 8.3 | 32451 | 8.2 | 41143 | 12.2 |
| Custom construction – land, lot and acquisition and development | 10708 | 2.7 | 9878 | 2.5 | 7667 | 2.3 |
| Speculative residential construction – vertical | 216204 | 53.7 | 225198 | 56.8 | 186042 | 55.1 |
| Speculative residential construction – land, lot and acquisition and development | 44034 | 10.9 | 42000 | 10.6 | 40603 | 12.0 |
| Total | $402791 | 100.0% | $396459 | 100.0% | $337788 | 100.0% |

---

Originations of one-to-four-family loans to purchase and refinance a home for the periods indicated were as follows:

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| (Dollars in |  |  |  |  |  |  |  | Prior Year | Prior Year |
| thousands) | For the Three Months Ended | For the Three Months Ended | For the Three Months Ended | For the Three Months Ended | For the Three Months Ended | For the Three Months Ended | Linked Quarter | Quarter | Quarter |
|  | March 31, 2026 | March 31, 2026 | December 31, 2025 | December 31, 2025 | March 31, 2025 | March 31, 2025 | % | $% | % |
|  | Amount | Percent | Amount | Percent | Amount | Percent | Change | Change | Change |
| Purchase | $139626 | 67.3% | $158992 | 72.6% | $120719 | 83.0% | (12.2) |  | 15.7% |
| Refinance | 67864 | 32.7 | 60153 | 27.4 | 24677 | 17.0 | 12.8 |  | 175.0% |
| Total | $207490 | 100.0% | $219145 | 100.0% | $145396 | 100.0% | (5.3) |  | 42.7% |

---

During the quarter ended March 31, 2026, the Company sold $154.7 million of one-to-four-family loans compared to $180.1 million during the previous quarter and $91.9 million during the same quarter one year ago. The increase in the volume of loans sold during the current quarter compared to the prior quarter was primarily due to favorable rate activity. Gross margins on home loan sales decreased to 3.03% for the quarter ended March 31, 2026, compared to 3.08% in the previous quarter and decreased from 3.26% in the same quarter one year ago. Gross margins are defined as the margin on loans sold (cash sales) without the impact of deferred costs.

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FS Bancorp Q1 Earnings

April 21, 2026

**Liabilities and Equity Summary**

The following table summarizes the components and changes in deposits, borrowings, equity, and book value per common share at the dates indicated.

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| (Dollars in thousands) |  |  |  |  |  |  | Linked | Prior Year |
| **DEPOSITS** | March 31, 2026 | March 31, 2026 | December 31, 2025 | December 31, 2025 | March 31, 2025 | March 31, 2025 | Quarter | Quarter |
| **Transactional deposits:** | Amount | Percent | Amount | Percent | Amount | Percent | $ Change | $ Change |
| Noninterest-bearing checking | $634787 | 24.1% | $647197 | 24.2% | $659417 | 25.2% | $(12410) | $(24630) |
| Interest-bearing checking | 185793 | 7.0 | 195275 | 7.3 | 171369 | 6.6 | (9482) | 14424 |
| Escrow accounts related to mortgages serviced <sup>(1)</sup> | 18904 | 0.7 | 10926 | 0.4 | 17289 | 0.7 | 7978 | 1615 |
| Subtotal | 839484 | 31.8 | 853398 | 31.9 | 848075 | 32.4 | (13914) | (8591) |
| **Savings and money market:** |  |  |  |  |  |  |  |  |
| Savings | 169192 | 6.4 | 164056 | 6.1 | 160332 | 6.1 | 5136 | 8860 |
| Money market | 377685 | 14.3 | 365322 | 13.7 | 343098 | 13.1 | 12363 | 34587 |
| Subtotal | 546877 | 20.7 | 529378 | 19.8 | 503430 | 19.3 | 17499 | 43447 |
| **Certificates of deposit:** |  |  |  |  |  |  |  |  |
| CDs | 923801 | 35.0 | 928326 | 34.7 | 893424 | 34.2 | (4525) | 30377 |
| **Brokered Deposits** |  |  |  |  |  |  |  |  |
| Non-maturity brokered deposits | 250 |  | 244 |  | 251 |  | 6 | (1) |
| Maturity brokered deposits | 327164 | 12.4 | 362296 | 13.6 | 369971 | 14.1 | (35132) | (42807) |
| Subtotal | 327414 | 12.4 | 362540 | 13.6 | 370222 | 14.1 | (35126) | (42808) |
| Total deposits | $2637576 | 100.0% | $2673642 | 100.0% | $2615151 | 100.0% | $(36066) | $22425 |
| Borrowings <sup>(2)</sup> | $167305 |  | $129305 |  | $68805 |  | $38000 | $98500 |
| Stockholders' equity | $313852 |  | $307694 |  | $298840 |  | $6158 | $15012 |
| Book value per common share | $42.42 |  | $41.55 |  | $39.12 |  | $0.87 | $3.30 |

---

------

(1) Primarily noninterest-bearing accounts based on applicable state law.

(2) Comprised of FHLB advances and Federal Reserve Bank borrowings.

At March 31, 2026, the Bank had uninsured deposits of approximately $704.2 million, compared to approximately $718.1 million at December 31, 2025, and $679.4 million at March 31, 2025. The uninsured amounts are estimates based on the methodologies and assumptions used for the Bank's regulatory reporting requirements.

In the table above, the linked quarter increase in stockholders' equity at March 31, 2026, compared to December 31, 2025, was primarily due to net income of $7.8 million. Declines in the fair value of available-for-sale securities recorded in accumulated other comprehensive income ("AOCI") were largely offset by improvements in the fair value of interest rate swap cash flow hedges, resulting in a net improvement of $83,000, net of tax. Gains and losses in fair value reflect changes in market interest rates during the periods. The increase in stockholders' equity was partially offset by share repurchases of $620,000 and cash dividends paid of $2.2 million.

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FS Bancorp Q1 Earnings

April 21, 2026

The Bank is considered "well capitalized" under the capital requirement established by the Federal Deposit Insurance Corporation ("FDIC") and the Company exceeded all regulatory capital requirements. At March 31, 2026, capital ratios presented for the Bank and the Company were as follows:

---

| | | |
|:---|:---|:---|
|  | At March 31, 2026 | At March 31, 2026 |
|  | Bank | Company |
| Total risk-based capital (to risk-weighted assets) | 13.81% | 13.77% |
| Tier 1 leverage capital (to average assets) | 11.16% | 9.87% |
| CET 1 capital (to risk-weighted assets) | 12.59% | 11.15% |

---

**Credit Quality**

The following table summarizes the changes in the ACL on loans, nonperforming loans, and classified loans at the dates indicated.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | | | | Linked | Prior Year |
| **ACL ON LOANS** | March 31, | December 31, | March 31, | Quarter | Quarter |
| (Dollars in thousands) | 2026 | 2025 | 2025 | $ Change | $ Change |
| Beginning ACL balance | $31937 | $30056 | $31870 | $1881 | $67 |
| Provision | 2649 | 3882 | 1505 | (1233) | 1144 |
| Charge-offs |  |  |  |  |  |
| Indirect | (2449) | (2258) | (1580) | (191) | (869) |
| Marine | (75) | (99) | (19) | 24 | (56) |
| Other | (95) | (53) | (37) | (42) | (58) |
| Commercial business | (230) |  | (433) | (230) | 203 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subtotal | (2849) | (2410) | (2069) | (439) | (780) |
| Recoveries |  |  |  |  |  |
| CRE |  | 2 |  | (2) |  |
| Indirect | 585 | 403 | 340 | 182 | 245 |
| Marine | 36 | 1 | 3 | 35 | 33 |
| Other | 7 | 3 | 4 | 4 | 3 |
| Commercial business | 78 |  |  | 78 | 78 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subtotal | 706 | 409 | 347 | 297 | 359 |
| Ending ACL balance | $32443 | $31937 | $31653 | $506 | $790 |

---

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FS Bancorp Q1 Earnings

April 21, 2026

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **NONPERFORMING LOANS** |  |  |  | Linked | Prior Year |
| (Dollars in thousands) | March 31, | December 31, | March 31, | Quarter | Quarter |
| **CRE LOANS** | 2026 | 2025 | 2025 | $ Change | $ Change |
| CRE | $1081 | $2049 | $1196 | $(968) | $(115) |
| Commercial and speculative construction and development | 9442 | 9236 | 6487 | 206 | 2955 |
| Total CRE loans | 10523 | 11285 | 7683 | (762) | 2840 |
| **RESIDENTIAL REAL ESTATE LOANS** |  |  |  |  |  |
| One-to-four-family (excludes HFS) | 1983 | 1778 | 1134 | 205 | 849 |
| Home equity | 475 | 390 | 252 | 85 | 223 |
| Total residential real estate loans | 2458 | 2168 | 1386 | 290 | 1072 |
| **CONSUMER LOANS** |  |  |  |  |  |
| Indirect home improvement | 4622 | 4256 | 2821 | 366 | 1801 |
| Marine | 466 | 454 | 648 | 12 | (182) |
| Other consumer | 34 | 2 | 1 | 32 | 33 |
| Total consumer loans | 5122 | 4712 | 3470 | 410 | 1652 |
| **COMMERCIAL BUSINESS LOANS** |  |  |  |  |  |
| C&I | 165 | 580 | 1932 | (415) | (1767) |
| Total nonperforming loans | $18268 | $18745 | $14471 | $(477) | $3797 |

---

The increase in nonperforming loans at March 31, 2026, compared to March 31, 2025 was partly driven by one commercial construction relationship, which remains in active development. Disbursements on this relationship, net of partial charge-offs of $2.3 million, contributed to a $3.0 million net increase in the nonperforming loan balance compared to March 31, 2025. Additional disbursements were made to support project completion and improve the probability of recovering collateral value. Increases in indirect home improvement and residential real estate nonperforming loans also contributed to the rise in nonperforming loans between the periods.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **CLASSIFIED LOANS** |  |  |  | Linked | Prior Year |
| (Dollars in thousands) | March 31, | December 31, | March 31, | Quarter | Quarter |
| **CRE LOANS** | 2026 | 2025 | 2025 | $ Change | $ Change |
| CRE | $4122 | $5496 | $2040 | $(1374) | $2082 |
| Commercial and speculative construction and development | 9442 | 9236 | 6487 | 206 | 2955 |
| Total CRE loans | 13564 | 14732 | 8527 | (1168) | 5037 |
| **RESIDENTIAL REAL ESTATE LOANS** |  |  |  |  |  |
| One-to-four-family (excludes HFS) | 3814 | 3616 | 3728 | 198 | 86 |
| Home equity | 475 | 390 | 252 | 85 | 223 |
| Total residential real estate loans | 4289 | 4006 | 3980 | 283 | 309 |
| **CONSUMER LOANS** |  |  |  |  |  |
| Indirect home improvement | 4622 | 4256 | 2821 | 366 | 1801 |
| Marine | 466 | 454 | 648 | 12 | (182) |
| Other consumer | 34 | 2 | 1 | 32 | 33 |
| Total consumer loans | 5122 | 4712 | 3470 | 410 | 1652 |
| **COMMERCIAL BUSINESS LOANS** |  |  |  |  |  |
| C&I | 3168 | 3872 | 7524 | (704) | (4356) |
| Total classified loans | $26143 | $27322 | $23501 | $(1179) | $2642 |

---

------

FS Bancorp Q1 Earnings

April 21, 2026

**Operating Results**

Net interest income increased $1.6 million to $32.5 million for the three months ended March 31, 2026, from $31.0 million for the three months ended March 31, 2025, primarily due to an increase in total interest income of $2.5 million, partially offset by an increase in total interest expense of $982,000. The $2.5 million increase in total interest income was primarily due to an increase of $2.7 million in interest income on loans receivable, including fees, resulting from net loan growth. The $982,000 increase in total interest expense was primarily the result of higher average deposit balances used to fund asset growth.

Net interest margin ("NIM") (annualized) decreased one basis point to 4.31% for the three months ended March 31, 2026, compared to 4.32% for the same period in the prior year. The decrease primarily reflects the repricing of the Company's subordinated notes to a floating rate on February 15, 2026, which resulted in an estimated two basis point decline in NIM for the quarter. Lower loan yields resulting from decreases in the prime rate further pressured net interest margin, which was partially offset by favorable deposit repricing.

The average total cost of funds, including noninterest-bearing checking, increased one basis point to 2.39% for the three months ended March 31, 2026, from 2.38% for the three months ended March 31, 2025. This increase was primarily due to the repricing of the Company's subordinated debt, as previously discussed, and was partially offset by favorable deposit repricing.

For the three months ended March 31, 2026, the provision for credit losses on loans was $2.6 million, compared to $1.5 million for the three months ended March 31, 2025. The provision for credit losses on loans reflects a $422,000 increase net charge-off activity, along with heightened past due and nonaccrual consumer loans.

During the three months ended March 31, 2026, total net charge-offs increased $422,000 to $2.1 million, compared to $1.7 million for the three months ended March 31, 2025. The increase was primarily due to a $624,000 net charge-off increase in indirect home improvement loans, partially offset by a $281,000 net charge-off decrease in commercial business loans, with the remainder attributable to slightly higher net charge-off increases in marine and consumer loans. The rise in indirect home improvement and consumer loan net charge-offs reflects continued credit stress in those portfolios amid a challenging economic environment.

Total noninterest income increased $275,000 to $5.4 million for the three months ended March 31, 2026, from $5.1 million for the three months ended March 31, 2025. The increase primarily reflects a $684,000 increase in gain on sale of loans, partially offset by a $246,000 decrease in other noninterest income, and a $171,000 decrease in service charges and fee income.

Total noninterest expense increased $465,000 to $25.5 million for the three months ended March 31, 2026, compared to $25.1 million for the three months ended March 31, 2025. The $465,000 increase reflected higher costs in several areas: loan costs increased $334,000, due to higher loan origination activity; salaries and benefits rose $321,000 from competitive wage adjustments; acquisition related costs of $295,000 were recorded in connection with the previously announced merger with Pacific West Bancorp; and occupancy expense increased $159,000 due to branch renovations. These increases were partially offset by a $451,000 reduction in data processing expenses following renegotiated vendor contracts, and a $173,000 decrease in professional and board fees.

**About FS Bancorp**

FS Bancorp, Inc., a Washington corporation, is the holding company for 1st Security Bank of Washington. The Bank offers a range of loan and deposit services primarily to small- and middle-market businesses and individuals in Washington and Oregon. It operates through 27 bank branches, one headquarters office that provides loans and deposit services, and loan production offices in various suburban communities in the greater Puget Sound area, the Kennewick-Pasco-Richland metropolitan area of Washington, also known as the Tri-Cities, and in Vancouver, Washington. Additionally, the Bank services home mortgage customers across the Northwest, focusing on markets in Washington State including the Puget Sound, Tri-Cities, and Vancouver.

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FS Bancorp Q1 Earnings

April 21, 2026

**Forward-Looking Statements**

When used in this press release and in other documents filed with or furnished to the Securities and Exchange Commission (the "SEC"), other public stockholder communications, or in oral statements made with the approval of an authorized executive officer, the words or phrases "believe," "will," "will likely result," "are expected to," "will continue," "is anticipated," "estimate," "project," "plans," or similar expressions are intended to identify "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not historical facts but instead represent management's current expectations and forecasts regarding future events, many of which are inherently uncertain and outside of our control. Actual results may differ, possibly materially, from those currently expected or projected in these forward-looking statements.

Factors that could cause the Company's actual results to differ materially from those described in the forward-looking statements, include but are not limited to the following: adverse economic conditions in the Company's local market areas, other markets where the Company has lending relationships, or other aspects of the Company's business operations or financial markets, including, without limitation, as a result of employment levels; labor shortages, the effects of inflation, recessionary pressures or slowing economic growth; changes in interest rate levels and volatility, and the timing and pace of such changes, including actions by the Federal Reserve, which could adversely affect the Company's revenues and expenses, the values of our assets and obligations, and the availability and cost of capital and liquidity; inflationary pressures and related monetary and fiscal policy responses, and their impact on consumer and business behavior; geopolitical developments and international conflicts including but not limited to tensions or instability in Eastern Europe, the Middle East, South America, and Asia, or the imposition of new or increased tariffs and trade restrictions, which may disrupt financial markets, global supply chains, commodity prices, or economic activity in specific industry sectors; the effects of a federal government shutdown, debt ceiling standoff, or other fiscal policy uncertainty; increased competitive pressures, including repricing and competitors' pricing initiatives, and their impact on the Company's market position, loan, and deposit products; adverse changes in the securities markets, the Company's ability to execute its plans to grow its residential construction lending, mortgage banking, and warehouse lending operations, and the geographic expansion of its indirect home improvement lending; challenges arising from expanding into new geographic markets, products, or services; secondary market conditions for loans and the Company's ability to originate loans for sale and sell loans in the secondary market; volatility in the mortgage industry; fluctuations in deposits; liquidity issues, including the Company's ability to borrow funds or raise additional capital, if necessary; the impact of bank failures or adverse developments at other banks and related negative publicity about the banking industry in general on investor and depositor sentiment; the ability to adapt to rapid technological changes, including advancements in artificial intelligence, digital banking platforms, and cybersecurity; legislation or regulatory changes, including but not limited to shifts in capital requirements, banking regulation, tax laws, or consumer protection laws; vulnerabilities in information systems or third-party service providers, including disruptions, breaches, or attacks; environmental, social and governance matters; the effects of climate change, severe weather events, natural disasters, pandemics, epidemics and other public health crises, acts of war or terrorism, domestic political unrest and other external events on our business; and other factors described in the Company's latest Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and other reports filed with or furnished to the SEC which are available on its website at www.fsbwa.com and on the SEC's website at www.sec.gov.

Any of the forward-looking statements that the Company makes in this press release and in the other public statements are based upon management's beliefs and assumptions at the time they are made and may turn out to be incorrect because of the inaccurate assumptions the Company might make, because of the factors illustrated above or because of other factors that cannot be foreseen by the Company. Therefore, these factors should be considered in evaluating the forward-looking statements, and undue reliance should not be placed on such statements. The Company does not undertake, and expressly disclaims any obligation, to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.

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FS Bancorp Q1 Earnings

April 21, 2026

**FS BANCORP, INC. AND SUBSIDIARY**

**CONSOLIDATED BALANCE SHEETS**

(Dollars in thousands) (Unaudited)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  |  |  | Linked | Prior Year |
|  | March 31, | December 31, | March 31, | Quarter | Quarter |
| **ASSETS** | 2026 | 2025 | 2025 | % Change | % Change |
| Cash and due from banks | $12424 | $13504 | $18657 | (8) | (33) |
| Interest-bearing deposits at other financial institutions | 26278 | 14715 | 44084 | 79 | (40) |
| Total cash and cash equivalents | 38702 | 28219 | 62741 | 37 | (38) |
| Certificates of deposit at other financial institutions |  |  | 1234 |  | NM |
| Securities available-for-sale, at fair value | 271007 | 288667 | 291133 | (6) | (7) |
| Securities held-to-maturity, net | 33267 | 33224 | 10434 |  | 219 |
| Loans held for sale, at fair value | 56275 | 43705 | 31038 | 29 | 81 |
| Loans receivable, net | 2624091 | 2623172 | 2501117 |  | 5 |
| Accrued interest receivable | 15333 | 14614 | 14406 | 5 | 6 |
| Premises and equipment, net | 43612 | 44065 | 29451 | (1) | 48 |
| Long-lived assets held for sale | 3258 | 3258 |  |  | NM |
| Operating lease right-of-use | 5472 | 5789 | 4979 | (5) | 10 |
| Federal Home Loan Bank stock, at cost | 8701 | 7971 | 5256 | 9 | 66 |
| Deferred tax asset, net | 7175 | 6993 | 7009 | 3 | 2 |
| Bank owned life insurance ("BOLI"), net | 36508 | 36249 | 38778 | 1 | (6) |
| MSRs, held at the lower of cost or fair value | 8676 | 8608 | 8926 | 1 | (3) |
| Goodwill | 3592 | 3592 | 3592 |  |  |
| Core deposit intangible, net | 9774 | 10518 | 12879 | (7) | (24) |
| Other assets | 38072 | 38203 | 43105 |  | (12) |
| **TOTAL ASSETS** | $3203515 | $3196847 | $3066078 |  | 4 |
| **LIABILITIES** |  |  |  |  |  |
| Deposits: |  |  |  |  |  |
| Noninterest-bearing accounts | $653691 | $658123 | $676706 | (1) | (3) |
| Interest-bearing accounts | 1983885 | 2015519 | 1938445 | (2) | 2 |
| Total deposits | 2637576 | 2673642 | 2615151 | (1) | 1 |
| Borrowings | 167305 | 129305 | 68805 | 29 | 143 |
| Subordinated notes: |  |  |  |  |  |
| Principal amount | 50000 | 50000 | 50000 |  |  |
| Unamortized debt issuance costs | (322) | (339) | (389) | (5) | (17) |
| Total subordinated notes less unamortized debt issuance costs | 49678 | 49661 | 49611 |  |  |
| Operating lease liability | 5570 | 5889 | 5149 | (5) | 8 |
| Other liabilities | 29534 | 30656 | 28522 | (4) | 4 |
| Total liabilities | 2889663 | 2889153 | 2767238 |  | 4 |
| **COMMITMENTS AND CONTINGENCIES** |  |  |  |  |  |
| **STOCKHOLDERS' EQUITY** |  |  |  |  |  |
| Preferred stock, $.01 par value; 5,000,000 shares authorized; none issued or outstanding |  |  |  |  |  |
| Common stock, $.01 par value; 45,000,000 shares authorized; 7,501,542 shares issued and outstanding at March 31, 2026, 7,507,519 at December 31, 2025, and 7,742,907 at March 31, 2025 | 75 | 75 | 77 |  | (3) |
| Additional paid-in capital | 43668 | 43251 | 52806 | 1 | (17) |
| Retained earnings | 285854 | 280197 | 262945 | 2 | 9 |
| Accumulated other comprehensive loss, net of tax | (15745) | (15829) | (16988) | (1) | (7) |
| Total stockholders' equity | 313852 | 307694 | 298840 | 2 | 5 |
| **TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY** | $3203515 | $3196847 | $3066078 |  | 4 |

---

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FS Bancorp Q1 Earnings

April 21, 2026

**FS BANCORP, INC. AND SUBSIDIARY**

**CONSOLIDATED STATEMENTS OF INCOME**

(Dollars in thousands, except per share amounts) (Unaudited)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Three Months Ended | Three Months Ended | Three Months Ended | Linked | Prior Year |
|  | March 31, | December 31, | March 31, | Quarter | Quarter |
| **INTEREST INCOME** | 2026 | 2025 | 2025 | % Change | % Change |
| Loans receivable, including fees | $46012 | $46876 | $43303 | (2) | 6 |
| Interest and dividends on investment securities, cash and cash equivalents, and certificates of deposit at other financial institutions | 3321 | 3906 | 3485 | (15) | (5) |
| Total interest and dividend income | 49333 | 50782 | 46788 | (3) | 5 |
| **INTEREST EXPENSE** |  |  |  |  |  |
| Deposits | 14713 | 15228 | 13058 | (3) | 13 |
| Borrowings | 1384 | 1446 | 2263 | (4) | (39) |
| Subordinated notes | 691 | 486 | 485 | 42 |  |
| Total interest expense | 16788 | 17160 | 15806 | (2) | 6 |
| **NET INTEREST INCOME** | 32545 | 33622 | 30982 | (3) | 5 |
| **PROVISION FOR CREDIT LOSSES** | 2529 | 3624 | 1592 | (30) | 59 |
| **NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES** | 30016 | 29998 | 29390 |  | 2 |
| **NONINTEREST INCOME** |  |  |  |  |  |
| Service charges and fee income | 2073 | 2233 | 2244 | (7) | (8) |
| Gain on sale of loans | 2384 | 2169 | 1700 | 10 | 40 |
| Earnings on cash surrender value of BOLI | 259 | 261 | 250 | (1) | 4 |
| Other noninterest income | 685 | 1724 | 932 | (60) | (27) |
| Total noninterest income | 5401 | 6387 | 5126 | (15) | 5 |
| **NONINTEREST EXPENSE** |  |  |  |  |  |
| Salaries and benefits | 14854 | 14744 | 14533 | 1 | 2 |
| Operations | 3380 | 3680 | 3445 | (8) | (2) |
| Occupancy | 1876 | 1889 | 1717 | (1) | 9 |
| Data processing | 1594 | 1847 | 2045 | (14) | (22) |
| Loan costs | 882 | 905 | 548 | (3) | 61 |
| Professional and board fees | 1014 | 1213 | 1186 | (16) | (15) |
| FDIC insurance | 627 | 626 | 538 |  | 17 |
| Marketing and advertising | 309 | 372 | 221 | (17) | 40 |
| Acquisition costs | 295 |  |  | NM |  |
| Amortization of core deposit intangible | 744 | 766 | 831 | (3) | (10) |
| (Recovery) impairment of servicing rights | (55) | 31 | (9) | (277) | 511 |
| Total noninterest expense | 25520 | 26073 | 25055 | (2) | 2 |
| **INCOME BEFORE PROVISION FOR INCOME TAXES** | 9897 | 10312 | 9461 | (4) | 5 |
| **PROVISION FOR INCOME TAXES** | 2067 | 1892 | 1440 | 9 | 44 |
| **NET INCOME** | $7830 | $8420 | $8021 | (7) | (2) |
| Basic earnings per share | $1.04 | $1.12 | $1.02 | (7) | 2 |
| Diluted earnings per share | $1.02 | $1.10 | $1.01 | (7) | 1 |

---

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FS Bancorp Q1 Earnings

April 21, 2026

**KEY FINANCIAL RATIOS AND DATA** (Unaudited)

---

| | | | |
|:---|:---|:---|:---|
|  | For the Three Months Ended | For the Three Months Ended | For the Three Months Ended |
|  | March 31, | December 31, | March 31, |
| **PERFORMANCE RATIOS:** | 2026 | 2025 | 2025 |
| &nbsp;&nbsp;&nbsp; Return on assets (ratio of net income to average total assets) <sup>(1)</sup> | 0.99% | 1.04% | 1.07% |
| &nbsp;&nbsp;&nbsp; Return on equity (ratio of net income to average total stockholders' equity) <sup>(1)</sup> | 10.03 | 10.78 | 10.80 |
| &nbsp;&nbsp;&nbsp; Yield on average interest-earning assets <sup>(1)</sup> | 6.53 | 6.56 | 6.53 |
| &nbsp;&nbsp;&nbsp; Average total cost of funds <sup>(1)</sup> | 2.39 | 2.38 | 2.38 |
| &nbsp;&nbsp;&nbsp; Interest rate spread information – average during period | 4.14 | 4.18 | 4.15 |
| &nbsp;&nbsp;&nbsp; Net interest margin <sup>(1)</sup> | 4.31 | 4.35 | 4.32 |
| &nbsp;&nbsp;&nbsp; Operating expense to average total assets <sup>(1)</sup> | 3.23 | 3.23 | 3.35 |
| &nbsp;&nbsp;&nbsp; Average interest-earning assets to average interest-bearing liabilities <sup>(1)</sup> | 139.86 | 140.03 | 142.94 |
| &nbsp;&nbsp;&nbsp; Efficiency ratio <sup>(2)</sup> | 67.25 | 65.13 | 69.39 |
| Common equity ratio (ratio of stockholders' equity to total assets) | 9.80 | 9.62 | 9.75 |
| Tangible common equity ratio <sup>(3)</sup> | 9.42 | 9.22 | 9.26 |

---

---

| | | | |
|:---|:---|:---|:---|
|  | March 31, | December 31, | March 31, |
| **ASSET QUALITY RATIOS AND DATA:** | 2026 | 2025 | 2025 |
| &nbsp;&nbsp;&nbsp; Nonperforming assets to total assets at end of period <sup>(4)</sup> | 0.57% | 0.59% | 0.47% |
| &nbsp;&nbsp;&nbsp; Nonperforming loans to total gross loans (excluding loans HFS) <sup>(5)</sup> | 0.69 | 0.71 | 0.57 |
| &nbsp;&nbsp;&nbsp; ACL – loans to nonperforming loans <sup>(5)</sup> | 177.67 | 170.59 | 219.08 |
| &nbsp;&nbsp;&nbsp; ACL – loans to total gross loans (excluding loans HFS) | 1.22 | 1.20 | 1.25 |

---

---

| | | | |
|:---|:---|:---|:---|
|  | At or For the Three Months Ended | At or For the Three Months Ended | At or For the Three Months Ended |
|  | March 31, | December 31, | March 31, |
| **PER COMMON SHARE DATA:** | 2026 | 2025 | 2025 |
| Basic earnings per share | $1.04 | $1.12 | $1.02 |
| Diluted earnings per share | $1.02 | $1.10 | $1.01 |
| Weighted average basic shares outstanding | 7402375 | 7414419 | 7695320 |
| Weighted average diluted shares outstanding | 7531291 | 7529471 | 7805728 |
| Common shares outstanding at end of period | 7398571<sup>(6)</sup> | 7404548<sup>(7)</sup> | 7639844<sup>(8)</sup> |
| Book value per share using common shares outstanding | $42.42 | $41.55 | $39.12 |
| Tangible book value per share using common shares outstanding <sup>(9)</sup> | $40.61 | $39.65 | $36.96 |

---

------

&nbsp;&nbsp;&nbsp;&nbsp;(1) Annualized.

&nbsp;&nbsp;&nbsp;&nbsp;(2) Total noninterest expense as a percentage of net interest income and total noninterest income.

&nbsp;&nbsp;&nbsp;&nbsp;(3) Represents a non-GAAP financial measure. For a reconciliation to the most comparable GAAP financial measure, see "Non-GAAP Financial Measures" below.

&nbsp;&nbsp;&nbsp;&nbsp;(4) Nonperforming assets consist of nonperforming loans (which include nonaccruing loans and accruing loans more than 90 days past due), foreclosed real estate and other repossessed assets.

&nbsp;&nbsp;&nbsp;&nbsp;(5) Nonperforming loans consist of nonaccruing loans and accruing loans 90 days or more past due.

&nbsp;&nbsp;&nbsp;&nbsp;(6) Common shares were calculated using shares outstanding of 7,501,542 at March 31, 2026 , less 102,971 unvested restricted stock shares.

&nbsp;&nbsp;&nbsp;&nbsp;(7) Common shares were calculated using shares outstanding of 7,507,519 at December 31, 2025 , less 102,971 unvested restricted stock shares.

&nbsp;&nbsp;&nbsp;&nbsp;(8) Common shares were calculated using shares outstanding of 7,742,907 at March 31, 2025 , less 103,063 unvested restricted stock shares.

&nbsp;&nbsp;&nbsp;&nbsp;(9) Tangible book value per share using outstanding common shares excludes intangible assets. This ratio represents a non-GAAP financial measure. See "Non-GAAP Financial Measures" below.

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FS Bancorp Q1 Earnings

April 21, 2026

---

| | | | |
|:---|:---|:---|:---|
| (Dollars in thousands) | For the Three Months Ended March 31, | For the Three Months Ended March 31, | QTR Over QTR |
| **Average Balances** | 2026 | 2025 | $ Change |
| **Assets** |  |  |  |
| Loans receivable, net <sup>(1)</sup> | $2700993 | $2560107 | $140886 |
| Investment securities - taxable | 254244 | 241429 | 12815 |
| Investment securities - nontaxable | 78144 | 77643 | 501 |
| Interest-bearing deposits and certificates of deposit at other financial institutions | 23082 | 16161 | 6921 |
| FHLB stock, at cost | 8057 | 11948 | (3891) |
| Total interest-earning assets | 3064520 | 2907288 | 157232 |
| Noninterest-earning assets | 136839 | 125224 | 11615 |
| **Total assets** | $3201359 | $3032512 | $168847 |
| **Liabilities** |  |  |  |
| Interest-bearing deposit accounts | $2009158 | $1765605 | $243553 |
| Borrowings | 132250 | 218639 | (86389) |
| Subordinated notes | 49666 | 49600 | 66 |
| Total interest-bearing liabilities | 2191074 | 2033844 | 157230 |
| Noninterest-bearing deposit accounts | 658746 | 663824 | (5078) |
| Other noninterest-bearing liabilities | 34805 | 33739 | 1066 |
| **Total liabilities** | $2884625 | $2731407 | $153218 |

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(1) Includes loans HFS.

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FS Bancorp Q1 Earnings

April 21, 2026

**Non-GAAP Financial Measures:**

In addition to financial results presented in accordance with generally accepted accounting principles utilized in the United States ("GAAP"), this earnings release presents non-GAAP financial measures that include tangible book value per share, and tangible common equity ratio. Management believes that providing the Company's tangible book value per share and tangible common equity ratio is consistent with the capital treatment utilized by the investment community, which excludes intangible assets from the calculation of risk-based capital ratios and facilitates comparison of the quality and composition of the Company's capital over time and to its competitors. Where applicable, the Company has also presented comparable GAAP information.

These non-GAAP financial measures have inherent limitations, are not required to be uniformly applied, and are not audited. They should not be considered in isolation or as a substitute for total stockholders' equity or operating results determined in accordance with GAAP. These non-GAAP measures may not be comparable to similarly titled measures reported by other companies.

Reconciliation of the GAAP book value per share and common equity ratio and the non-GAAP tangible book value per share and tangible common equity ratio is presented below.

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| | | | |
|:---|:---|:---|:---|
| (Dollars in thousands, except share and per share amounts) | March 31, | December 31, | March 31, |
| **Tangible Book Value Per Share:** | 2026 | 2025 | 2025 |
| &nbsp;&nbsp;&nbsp; Stockholders' equity (GAAP) | $313852 | $307694 | $298840 |
| &nbsp;&nbsp;&nbsp; Less: goodwill and core deposit intangible, net | (13366) | (14110) | (16471) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tangible common stockholders' equity (non-GAAP) | $300486 | $293584 | $282369 |
| Common shares outstanding at end of period | 7398571<br><sup>(1)</sup> | 7404548<br><sup>(2)</sup> | 7639844<br><sup>(3)</sup> |
| Book value per share (GAAP) | $42.42 | $41.55 | $39.12 |
| Tangible book value per share (non-GAAP) | $40.61 | $39.65 | $36.96 |
| **Tangible Common Equity Ratio:** |  |  |  |
| &nbsp;&nbsp;&nbsp; Total assets (GAAP) | $3203515 | $3196847 | $3066078 |
| &nbsp;&nbsp;&nbsp; Less: goodwill and core deposit intangible assets | (13366) | (14110) | (16471) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tangible assets (non-GAAP) | $3190149 | $3182737 | $3049607 |
| Common equity ratio (GAAP) | 9.80% | 9.62% | 9.75% |
| Tangible common equity ratio (non-GAAP) | 9.42 | 9.22 | 9.26 |

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_________________________

&nbsp;&nbsp;&nbsp;&nbsp;(1) Common shares were calculated using shares outstanding of 7,501,542 at March 31, 2026 , less 102,971 unvested restricted stock shares.

&nbsp;&nbsp;&nbsp;&nbsp;(2) Common shares were calculated using shares outstanding of 7,507,519 at December 31, 2025 , less 102,971 unvested restricted stock shares.

&nbsp;&nbsp;&nbsp;&nbsp;(3) Common shares were calculated using shares outstanding of 7,742,907 at March 31, 2025 , less 103,063 unvested restricted stock shares.

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FS Bancorp Q1 Earnings

April 21, 2026

**Additional Information About the Merger and Where to Find It**

This press release does not constitute an offer to sell or the solicitation of an offer to buy or exchange any securities or a solicitation of any vote or approval with respect to the proposed transaction with Pacific West Bancorp.

In connection with the proposed merger, a registration statement on Form S-4 will be filed with the SEC that will include a proxy statement of Pacific West Bancorp and a prospectus of the Company, which will be distributed to the shareholders of Pacific West Bancorp in connection with its votes on the merger of Pacific West Bancorp with and into the Company and the issuance of Company common stock in the proposed transaction. INVESTORS AND SECURITY HOLDERS ARE ENCOURAGED TO READ THE REGISTRATION STATEMENT AND PROXY STATEMENT/PROSPECTUS WHEN THEY BECOME AVAILABLE (ANY OTHER DOCUMENTS FILED WITH THE SEC IN CONNECTION WITH THE PROPOSED TRANSACTION OR INCORPORATED BY REFERENCE INTO THE PROXY STATEMENT/PROSPECTUS) BECAUSE SUCH DOCUMENTS WILL CONTAIN IMPORTANT INFORMATION REGARDING THE PROPOSED MERGER AND RELATED MATTERS.

Investors and security holders will be able to obtain free copies of the registration statement on Form S-4 and the related proxy statement/prospectus, when filed, as well as other documents filed with the SEC by the Company through the website maintained by the SEC at www.sec.gov. These documents, when available, also can be obtained free of charge by accessing the Company's website at www.fsbwa.com under the tab "Investor Relations" and then under "SEC Filings." Alternatively, these documents, when filed with the SEC by the Company, can be obtained free of charge by (1) writing to FS Bancorp, Inc at 6920 220th Street SW, Mountlake Terrace, Washington 98043, Attn: Investor Relations or (2) by calling (425) 771-5299.

**Participants in the Solicitation**

The Company, Pacific West Bancorp and certain of their respective directors and executive officers may be deemed to be participants in the solicitation of proxies from the shareholders of Pacific West Bancorp in connection with the proposed transaction. Information about the Company's directors and executive officers is included in the proxy statement for its 2026 annual meeting of the Company's shareholders, which was filed with the SEC on April 6, 2026. Information about Pacific West Bancorp's participants and additional information regarding the interests of these participants will be included in the proxy statement/prospectus regarding the proposed transaction when it becomes available. Free copies of this document may be obtained as described above.

**Contacts:** 

Matthew D. Mullet,

President and Chief Executive Officer

Phillip D. Whittington,

Chief Financial Officer

(425) 771-5299

**www.FSBWA.com**