FS Bancorp Q2 net income edges up; deposits fall as brokered deposits decrease

FS Bancorp

21/07/2026 21:45

    

    Overview
  
US regional bank reported Q2 net income and EPS up slightly from prior year
Net interest income rose modestly year-over-year, driven by loan growth
Company repurchased 87,000 shares for $3.6 mln and maintained quarterly dividend
Total deposits decreased 7.2% from prior quarter due to a decrease in brokered deposits

    

    Outlook
  
Company expects final resolution of a commercial construction loan relationship in H2 2026
FS Bancorp sees continued pressure on commercial real estate values in its market

    

    Result Drivers
  
LOAN GROWTH - Net interest income increased due to higher interest income on loans receivable, mainly from growth in the commercial real estate portfolio
CREDIT CHARGE-OFFS - Provision for credit losses rose due to higher net charge-offs, including a partial charge-off on a commercial construction loan and increased delinquencies in the indirect home improvement portfolio
FUNDING MIX SHIFT - Total deposits declined, mainly from a reduction in brokered deposits, offset by increased borrowings at a slightly lower cost

    
Company press release: ID:nGNX5l9NRV

    

    Key Details
  

            Metric
          

            Beat/Miss
          

            Actual
          

            Consensus Estimate
          
Q2 EPS
 
$1.04
 
Q2 Net Income
 
$7.90 mln
 
Q2 Net Interest Income
 
$32.60 mln
 
Q2 Dividend
 
$0.29
 
Q2 Net Interest Margin
 
4.30%
 

    

    Analyst Coverage
  
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the banks peer group is "buy."
Wall Street's median 12-month price target for FS Bancorp Inc is $45.50, about 5.8% above its July 20 closing price of $43.02
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 9 three months ago

    

    Reuters Recommended Reads
  
July 21 - Bridgewater Bancshares Q2 adjusted EPS meets estimates as net interest income rises on loan growth
July 21 - Metropolitan Bank Q2 EPS falls on credit loss provision and one-time expenses
July 21 - KeyCorp quarterly profit rises on interest income strength

    
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)