FS Bancorp, Inc. (NASDAQ: FSBW)

FS Bancorp is a bank holding company whose principal subsidiary is 1st Security Bank, a Washington state chartered stock savings bank engaged in relationship focused community banking. The bank offers lending and deposit services to consumers, small and mid sized businesses, real estate developers, and specialty niches such as indirect home improvement and marine finance. FS Bancorp does not conduct significant activities beyond holding the bank’s stock and providing capital through debt and equity markets. As of December 31, 2025, the company reported total assets of $3.2 billion, net loans receivable of $2.62 billion, deposits of $2.67 billion, and stockholders’ equity of $307.7 million.

The company generates revenue principally from interest earned on its diversified loan portfolio, which includes commercial real estate, construction and development, home equity, one to four family, consumer marine, and commercial business loans. Interest income is complemented by fees from deposit services, mortgage servicing rights, gains on the sale of loans, and income from brokered deposits and wholesale funding arrangements. Additional fee income arises from loan commitment fees, late payment charges, and other miscellaneous services. The bank’s net interest margin is supported by a stable core of retail deposits and selective use of advances from the Federal Home Loan Bank of Des Moines. Loan sales to government sponsored enterprises and private investors also produce noninterest income while retaining servicing rights on a portion of the sold balances.

FS Bancorp operates in a highly competitive banking market that includes large national banks such as Wells Fargo, Bank of America, and JPMorgan Chase, as well as regional players like U. S. Bank, KeyBank, and numerous credit unions and community banks. The bank’s competitive advantage lies in its relationship focused community banking model, deep local knowledge of the Puget Sound and Oregon markets, and a reputation for personalized service to families, businesses, and industry niches. Regulatory oversight comes from the Washington State Department of Financial Institutions and the Federal Deposit Insurance Corporation, and the bank is a member of the Federal Home Loan Bank of Des Moines. Specialty lending niches such as indirect home improvement and marine loans further differentiate FS Bancorp from larger rivals that tend to concentrate on standardized commercial and residential products.

The company serves local families, regional businesses, real estate developers, home improvement contractors, marine borrowers, and small to mid sized enterprises throughout the Puget Sound region of Washington and select markets in Oregon. Its customer base includes individual consumers seeking mortgages and home equity lines, builders and developers needing construction financing, and commercial clients such as transportation companies and construction firms that rely on warehouse lending lines. The bank also serves niche segments like solar related home improvement projects and owners of recreational vessels through its marine loan portfolio. While specific customer names are not disclosed in the filing, the breadth of relationships reflects a focus on community oriented banking across the Pacific Northwest.