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0001530249false00015302492023-01-252023-01-25

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): January 25, 2023

FS BANCORP, INC.

(Exact name of registrant as specified in its charter)

Washington

001-35589

45-4585178

(State or other jurisdiction

of incorporation)

(Commission

File Number)

(I.R.S. Employer

Identification No.)

, Washington

6920 220th Street SW

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 January 25, 2023, FS Bancorp, Inc., the parent corporation of 1st Security Bank of Washington, issued its earnings release for the quarter ended December 31, 2022.  A copy of the press release is furnished with this Form 8-K as Exhibit 99.1 and is incorporated herein by reference.

Item 9.01 Exhibits

(d) Exhibits

99.1

Press release of FS Bancorp, Inc. dated January 25, 2023

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: January 25, 2023

FS BANCORP, INC.

/s/Matthew D. Mullet

Matthew D. Mullet

Chief Financial Officer

(Principal Financial and Accounting Officer)

EX-99.1 2 fsbw-20230125xex99d1.htm EX-99.1

Exhibit 99.1

Graphic

FS Bancorp, Inc. Reports $29.6 Million of Net Income or $3.70 Per Diluted Share for 2022 and the Fortieth Consecutive Quarterly Dividend including a 25% Dividend Increase to $0.25 Per Share

MOUNTLAKE TERRACE, WA – January 25, 2023 – FS Bancorp, Inc. (NASDAQ: FSBW) (the “Company”), the holding company for 1st Security Bank of Washington (the “Bank”) today reported 2022 net income of $29.6 million, or $3.70 per diluted share, compared to $37.4 million, or $4.37 per diluted share for 2021.  Fourth quarter net income was $7.6 million, or $0.97 per diluted share, compared to $8.6 million, or $1.03 per diluted share, for the comparable quarter one year ago.

“Our teams remain focused on completing the announced branch acquisitions which is scheduled to close during the first quarter of 2023, subject to customary closing conditions. The new deposits associated with the branch acquisitions are expected to support the Company’s loan growth,” stated Joe Adams, CEO. “We are also pleased that our Board of Directors approved our fortieth consecutive quarterly cash dividend of $0.25 per share, up from $0.20 per share, which will be paid on February 23, 2023, to shareholders of record as of February 9, 2023,” concluded Adams.

“Our anticipated geographic expansion into Oregon resulted in related acquisition expenses in the fourth quarter of 2022 with the remaining expenses expected to be realized with the closing of the branch acquisitions projected in February,” noted Matthew Mullet, CFO.

2022 Fourth Quarter and Year End Highlights

Net income was $7.6 million for the fourth quarter of 2022, compared to $8.5 million in the previous quarter, and $8.6 million for the comparable quarter one year ago;
Net interest margin (“NIM”) improved to 4.62%, compared to 4.54% for the previous quarter, and 4.20% for the comparable quarter one year ago;
Loans receivable, net increased $106.9 million, or 5.1%, to $2.19 billion at December 31, 2022, compared to $2.08 billion at September 30, 2022, and increased $462.3 million, or 26.7% from $1.73 billion at December 31, 2021;
Consumer loans, of which 87.1% are home improvement loans, increased $51.0 million, or 9.8%, to $569.6 million at December 31, 2022, compared to $518.6 million in the previous quarter and increased $147.5 million, or 35.0% from $422.0 million in the comparable quarter one year ago. During the three months ended December 31, 2022, originations in the consumer portfolio included 82.2% of home improvement loans originated with a Fair Isaac and Company, Incorporated (“FICO”) score above 720 and 87.3% of home improvement loans with a UCC-2 security filing;
Segment reporting reflected $8.3 million of net income for the Commercial and Consumer Banking segment and $684,000 of net loss for the Home Lending segment in the fourth quarter of 2022, compared to $6.1 million and $2.6 million of net income in the fourth quarter of 2021, respectively;
Quarterly cash dividend increased to $0.25 per share for the fourth quarter, resulting in a dividend payout ratio of 25.4% based on fourth quarter 2022 earnings; and
Capital levels at the Bank were 13.7% for total risk-based capital and 11.3% for Tier 1 leverage capital at December 31, 2022.


FS Bancorp Q4 Earnings
January 25, 2023
Page 2

Segment Reporting

The Company reports two 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 portfolios and cash management services. This segment is also responsible for the management of the investment portfolio and other assets of the Bank. 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 are a summary of segment reporting for the three months and years ended December 31, 2022 and 2021:

At or For the Three Months Ended December 31, 2022

Condensed income statement:

    

Commercial and Consumer Banking

    

Home Lending

    

Total

Net interest income (1)

 

$

26,375

$

2,927

 

$

29,302

Provision for credit losses on loans (2)

 

(1,337)

 

(248)

 

(1,585)

Noninterest income (3)

 

2,214

 

1,482

 

3,696

Noninterest expense

 

(16,845)

 

(5,004)

 

(21,849)

Income (loss) before (provision) benefit for income taxes

 

10,407

 

(843)

 

9,564

(Provision) benefit for income taxes

 

(2,101)

 

159

 

(1,942)

Net income (loss)

 

$

8,306

$

(684)

 

$

7,622

Total average assets for period ended

 

$

2,154,427

$

457,315

 

$

2,611,742

Full-time employees ("FTEs")

 

405

 

132

 

537

At or For the Three Months Ended December 31, 2021

Condensed income statement:

    

Commercial and Consumer Banking

    

Home Lending

    

Total

Net interest income (1)

 

$

20,477

$

2,197

 

$

22,674

Reversal of loan losses (2)

 

432

 

568

 

1,000

Noninterest income (3)

 

1,999

 

5,896

 

7,895

Noninterest expense

 

(15,406)

 

(5,553)

 

(20,959)

Income before provision for income taxes

 

7,502

 

3,108

 

10,610

Provision for income taxes

 

(1,431)

 

(530)

 

(1,961)

Net income

 

$

6,071

$

2,578

 

$

8,649

Total average assets for period ended

 

$

1,805,471

$

429,156

 

$

2,234,627

FTEs

 

384

 

152

 

536

At or For the Year Ended December 31, 2022

Commercial

and Consumer

Condensed income statement:

    

Banking

    

Home Lending

    

Total

Net interest income (1)

 

$

93,358

$

10,922

 

$

104,280

Provision for credit losses on loans (2)

 

(5,064)

 

(1,153)

 

(6,217)

Noninterest income (3)

 

10,158

 

7,950

 

18,108

Noninterest expense

 

(59,723)

 

(19,460)

 

(79,183)

Income (loss) before (provision) benefit for income taxes

 

38,729

 

(1,741)

 

36,988

(Provision) benefit for income taxes

 

(7,684)

 

345

 

(7,339)

Net income (loss)

 

$

31,045

$

(1,396)

 

$

29,649

Total average assets for period ended

 

$

2,018,263

$

417,431

 

$

2,435,694

FTEs

 

405

 

132

 

537


FS Bancorp Q4 Earnings
January 25, 2023
Page 3

At or For the Year Ended December 31, 2021

Commercial

and Consumer

Condensed income statement:

    

Banking

    

Home Lending

    

Total

Net interest income (1)

 

$

78,306

$

8,343

 

$

86,649

(Provision for) reversal of loan losses (2)

 

(2,613)

 

2,113

 

(500)

Noninterest income (3)

 

8,545

 

28,968

 

37,513

Noninterest expense

 

(56,557)

 

(19,685)

 

(76,242)

Income before provision for income taxes

 

27,681

 

19,739

 

47,420

Provision for income taxes

 

(5,842)

 

(4,166)

 

(10,008)

Net income

 

$

21,839

$

15,573

 

$

37,412

Total average assets for period ended

 

$

1,779,850

$

409,363

 

$

2,189,213

FTEs

 

384

 

152

 

536

________________________

(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.
(2) Provision for credit losses on loans as calculated using the Current Expected Credit Loss (“CECL”) method adopted January 1, 2022, and provision for loan losses as calculated using the previous incurred loss method in 2021. The change in methodology reflects shifts in allocation between segments due to various changes, adjustments to qualitative factors, changes in loan balances, and charge-off and recovery activity.
(3) 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 and year ended December 31, 2022, the Company recorded a net increase in fair value of $181,000 and a net decrease in fair value of $1.7 million, as compared to a net increase in fair value of $26,000 and a net decrease in fair value of $29,000 for the three months and year ended December 31, 2021, respectively. As of December 31, 2022 and December 31, 2021, there were $14.0 million and $16.1 million, respectively, in residential mortgage loans recorded at fair value as they were previously transferred from held for sale to loans held for investment.

Asset Summary

Total assets decreased $19.2 million, or 0.7%, to $2.63 billion at December 31, 2022, compared to $2.65 billion at September 30, 2022, and increased $346.5 million, or 15.2%, from $2.29 billion at December 31, 2021.  The quarter over linked quarter decrease in total assets was primarily due to decreases in total cash and cash equivalents of $118.4 million, loans held for sale (“HFS”) of $3.4 million, Federal Home Loan Bank (“FHLB”) stock of $3.0 million, and other assets of $2.7 million, partially offset by increases in loans receivable, net of $106.9 million and securities available-for-sale (“AFS”) of $1.3 million. The year over year increase was primarily due to increases in loans receivable, net of $462.3 million, cash and cash equivalents of $14.9 million, deferred tax asset, net of $6.7 million, FHLB stock of $5.8 million, other assets of $5.0 million, accrued interest receivable of $3.6 million, operating lease right-of-use of $1.7 million, and servicing rights of $1.0 million, partially offset by decreases in loans HFS of $105.7 million, securities AFS of $42.1 million, and certificates of deposit (“CDs”) at other financial institutions of $5.8 million.


FS Bancorp Q4 Earnings
January 25, 2023
Page 4

LOAN PORTFOLIO

(Dollars in thousands)

December 31, 2022

September 30, 2022

December 31, 2021

    

Amount

    

Percent

Amount

    

Percent

Amount

    

Percent

REAL ESTATE LOANS

Commercial

$

334,059

 

15.1

%  

$

310,923

 

14.7

%  

$

264,429

 

15.1

%  

Construction and development

 

342,591

 

15.4

 

335,177

 

15.9

 

240,553

 

13.7

Home equity

 

55,387

 

2.5

 

53,681

 

2.6

 

41,017

 

2.3

One-to-four-family (excludes HFS)

 

469,485

 

21.2

 

429,196

 

20.3

 

366,146

 

20.8

Multi-family

 

219,738

 

9.9

 

223,712

 

10.6

 

178,158

 

10.2

Total real estate loans

 

1,421,260

 

64.1

 

1,352,689

 

64.1

 

1,090,303

 

62.1

CONSUMER LOANS

Indirect home improvement

 

495,941

 

22.3

 

447,462

 

21.2

 

336,285

 

19.2

Marine

 

70,567

 

3.2

 

68,106

 

3.2

 

82,778

 

4.7

Other consumer

 

3,064

 

0.1

 

2,987

 

0.2

 

2,980

 

0.2

Total consumer loans

 

569,572

 

25.6

 

518,555

 

24.6

 

422,043

 

24.1

COMMERCIAL BUSINESS LOANS

Commercial and industrial

 

196,791

 

8.9

 

211,009

 

10.0

 

208,552

 

11.9

Warehouse lending

 

31,229

 

1.4

 

28,102

 

1.3

 

33,277

 

1.9

Total commercial business loans

 

228,020

 

10.3

 

239,111

 

11.3

 

241,829

 

13.8

Total loans receivable, gross

 

2,218,852

 

100.0

%  

 

2,110,355

 

100.0

%  

 

1,754,175

 

100.0

%  

Allowance for credit losses on loans (1)

 

(27,992)

 

(26,426)

 

(25,635)

Total loans receivable, net

$

2,190,860

$

2,083,929

$

1,728,540

_________________________

(1) Allowance in 2022 is reported using the CECL method and as of December 31, 2021, the allowance is reported in accordance with previous GAAP using the incurred loss method.

Loans receivable, net increased $106.9 million to $2.19 billion at December 31, 2022, from $2.08 billion at September 30, 2022, and increased $462.3 million from $1.73 billion at December 31, 2021. The quarter over linked quarter increase in total real estate loans was $68.6 million, including increases in one-to-four-family loans (excluding loans HFS) of $40.3 million, commercial real estate loans of $23.1 million, construction and development loans of $7.4 million, and home equity loans of $1.7 million, partially offset by a decrease in multi-family loans of $4.0 million. Consumer loans increased $51.0 million, primarily due to increases of $48.5 million in indirect home improvement loans and $2.5 million in marine loans. Commercial business loans decreased $11.1 million, as a result of a decrease of $14.2 million in commercial and industrial lending, partially offset by an increase of $3.1 million in warehouse lending.

Originations of one-to-four-family loans to purchase and to refinance a home for the three months ended December 31, 2022 and September 30, 2022, and for the three months ended and years ended December 31, 2022 and 2021 were as follows:

(Dollars in thousands)

For the Three Months Ended

For the Three Months Ended

Quarter

Quarter

December 31, 2022

September 30, 2022

over Quarter

over Quarter

    

Amount

    

Percent

    

    

Amount

    

Percent

    

    

$ Change

    

% Change

Purchase

$

115,102

87.8

%

$

172,639

89.1

%

$

(57,537)

(33.3)

%

Refinance

16,045

 

12.2

21,096

 

10.9

(5,051)

(23.9)

Total

$

131,147

100.0

%

$

193,735

100.0

%

$

(62,588)

(32.3)

%


FS Bancorp Q4 Earnings
January 25, 2023
Page 5

(Dollars in thousands)

For the Three Months Ended

For the Three Months Ended

Year

Year

December 31, 2022

December 31, 2021

over Year

   over Year   

    

Amount

    

Percent

    

    

    

Amount

    

Percent

    

    

$ Change

    

% Change

Purchase

$

115,102

87.8

%

$

182,851

53.9

%

$

(67,749)

(37.1)

%

Refinance

16,045

 

12.2

156,322

46.1

(140,277)

(89.7)

Total

$

131,147

100.0

%

$

339,173

100.0

%

$

(208,026)

(61.3)

%

(Dollars in thousands)

For the Year Ended

For the Year Ended

Year

Year

December 31, 2022

December 31, 2021

over Year

   over Year   

    

Amount

    

Percent

    

    

    

Amount

    

Percent

    

    

$ Change

    

% Change

Purchase

$

664,361

80.2

%

$

869,108

55.9

%

$

(204,747)

(23.6)

%

Refinance

164,380

 

19.8

685,727

44.1

(521,347)

(76.0)

Total

$

828,741

100.0

%

$

1,554,835

100.0

%

$

(726,094)

(46.7)

%

During the quarter ended December 31, 2022, the Company sold $76.2 million of one-to-four-family loans compared to $142.3 million during the previous quarter and $305.8 million during the same quarter one year ago. The decrease in loan purchase and refinance activity, as well as sales activity, compared to the prior periods reflects the impact of rising market interest rates.

Gross margins on home loan sales decreased to 2.15% for the quarter ended December 31, 2022, compared to 2.31% in the previous quarter and decreased from 3.66% 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.

Liabilities and Equity Summary

Changes in deposits at the dates indicated are as follows:

(Dollars in thousands)

December 31, 2022

September 30, 2022

Transactional deposits:

  

Amount

  

Percent

  

Amount

  

Percent

  

   $ Change  

  

% Change

Noninterest-bearing checking

$

537,938

 

25.3

%  

$

555,753

 

26.7

%  

$

(17,815)

 

(3.2)

%

Interest-bearing checking (1)

135,127

 

6.3

147,968

 

7.1

(12,841)

 

(8.7)

Escrow accounts related to mortgages serviced (2)

16,236

 

0.8

25,859

 

1.2

(9,623)

(37.2)

Subtotal

689,301

32.4

729,580

35.0

(40,279)

(5.5)

Savings

134,358

 

6.3

143,612

 

6.9

(9,254)

 

(6.4)

Money market (3)

574,290

 

27.0

659,861

 

31.7

(85,571)

 

(13.0)

Subtotal

708,648

33.3

803,473

38.6

(94,825)

(11.8)

Certificates of deposit less than $100,000 (4)

440,785

 

20.7

345,227

 

16.6

95,558

 

27.7

Certificates of deposit of $100,000 through $250,000

195,447

 

9.2

133,429

 

6.4

62,018

 

46.5

Certificates of deposit of $250,000 and over

93,560

 

4.4

71,629

 

3.4

21,931

 

30.6

Subtotal

729,792

34.3

550,285

26.4

179,507

 

32.6

Total

$

2,127,741

 

100.0

%  

$

2,083,338

 

100.0

%  

$

44,403

 

2.1

%


FS Bancorp Q4 Earnings
January 25, 2023
Page 6

(Dollars in thousands)

December 31, 2022

December 31, 2021

Transactional deposits:

  

Amount

  

Percent  

  

Amount

  

Percent  

  

$ Change

  

% Change  

Noninterest-bearing checking (5)

$

537,938

 

25.3

%   

$

564,360

 

29.4

%    

$

(26,422)

 

(4.7)

%

Interest-bearing checking (1)(5)

135,127

 

6.3

228,024

 

11.9

(92,897)

 

(40.7)

Escrow accounts related to mortgages serviced (2)

16,236

 

0.8

16,389

 

0.9

(153)

(0.9)

Subtotal

689,301

32.4

808,773

42.2

(119,472)

(14.8)

Savings

134,358

 

6.3

193,922

 

10.1

(59,564)

 

(30.7)

Money market (3)

574,290

 

27.0

552,357

 

28.8

21,933

 

4.0

Subtotal

708,648

33.3

746,279

38.9

(37,631)

(5.0)

Certificates of deposit less than $100,000 (4)

440,785

 

20.7

186,974

 

9.8

253,811

 

135.7

Certificates of deposit of $100,000 through $250,000

195,447

 

9.2

116,206

 

6.1

79,241

 

68.2

Certificates of deposit of $250,000 and over

93,560

 

4.4

57,512

 

3.0

36,048

 

62.7

Subtotal

729,792

34.3

360,692

18.9

369,100

 

102.3

Total

$

2,127,741

 

100.0

%    

$

1,915,744

 

100.0

%    

$

211,997

 

11.1

%

_______________________

(1) Includes $2.3 million, $1.2 million, and $90.0 million of brokered deposits at December 31, 2022, September 30, 2022, and December 31, 2021, respectively.
(2) Noninterest-bearing accounts.
(3) Includes $59.7 million, $66.8 million, and $5.0 million of brokered deposits at December 31, 2022, September 30, 2022, and December 31, 2021, respectively.
(4) Includes $332.0 million, $256.6 million, and $97.6 million of brokered deposits at December 31, 2022, September 30, 2022, and December 31, 2021, respectively.
(5) Interest-bearing checking balance as of December 31, 2021, was revised due to the misclassification of certain checking products in previous periods. As a result of the misclassification, interest-bearing checking balance as of December 31, 2021, of $121.2 million were reclassified to noninterest-bearing checking for comparative purposes.

At December 31, 2022, certificates of deposit (“CDs”), which include retail and nonretail CDs, totaled $729.8 million, compared to $360.7 million at September 30, 2022, and $369.1 million at December 31, 2021, with nonretail CDs representing 49.3%, 78.8% and 30.9% of total CDs at such dates, respectively. At December 31, 2022, nonretail CDs, which include brokered CDs, online CDs, and public funds CDs, increased $75.2 million to $359.6 million, compared to $284.4 million at September 30, 2022, due to an increase of $75.4 million in brokered CDs. The year over year increase in nonretail CDs of $245.4 million from $114.2 million at December 31, 2021, was primarily the result of a $234.4 million increase in brokered CDs.

At December 31, 2022, borrowings comprised of FHLB advances decreased $74.3 million, or 28.5%, to $186.5 million from $260.8 million at September 30, 2022, and increased $144.0 million, or 338.6% from $42.5 million at December 31, 2021.

Total stockholders’ equity increased $11.2 million, to $231.7 million at December 31, 2022, from $220.5 million at September 30, 2022, and decreased $15.8 million from $247.5 million at December 31, 2021. The increase in stockholders’ equity during the current quarter reflects net income of $7.6 million, partially offset by dividends paid of $1.5 million. In addition, stockholders’ equity was positively impacted by increased unrealized net gains in securities AFS of $4.1 million, net of tax, reflecting changes in market interest rates during the quarter, partially offset by unrealized losses on fair value and cash flow hedges of $428,000, net of tax, resulting in a net $3.7 million FS Bancorp Q4 Earnings January 25, 2023 Page 7


decrease in accumulated other comprehensive loss, net of tax. Book value per common share was $30.42 at December 31, 2022, compared to $29.07 at September 30, 2022, and $30.75 at December 31, 2021.

The Bank is well capitalized under the minimum capital requirements established by the Federal Deposit Insurance Corporation (“FDIC”) with a total risk-based capital ratio of 13.7%, a Tier 1 leverage capital ratio of 11.3%, and a common equity Tier 1 (“CET1”) capital ratio of 12.5% at December 31, 2022.

The Company exceeded all regulatory capital requirements with a total risk-based capital ratio of 14.0%, a Tier 1 leverage capital ratio of 9.7%, and a CET1 ratio of 10.7% at December 31, 2022.

Credit Quality

The allowance for credit losses on loans (“ACLL”) at December 31, 2022, increased to $28.0 million, or 1.26% of gross loans receivable, excluding loans HFS, compared to $26.4 million, or 1.25% of gross loans receivable, excluding loans HFS at September 30, 2022, and $25.6 million, or 1.46% of gross loans receivable, excluding loans HFS, at December 31, 2021. The $1.6 million increase in the ACLL through the provision of credit losses was primarily due to higher risks from economic uncertainty, the increase in loans, and increased reserves on individually evaluated nonaccrual loans. The $2.4 million increase in the ACLL at December 31, 2022, from December 31, 2021, was primarily due to the growth in loans, partially offset by the one-time cumulative-effect adjustment of $2.9 million as of the CECL adoption date of January 1, 2022. The allowance for credit losses on unfunded loan commitments decreased $545,000 to $2.5 million at December 31, 2022, compared to $3.1 million at September 30, 2022, and increased $2.0 million from $499,000 at December 31, 2021.

Nonperforming loans increased $411,000 to $8.7 million at December 31, 2022, from $8.2 million at September 30, 2022, and increased $2.8 million from $5.8 million at December 31, 2021. The increase in nonperforming loans at December 31, 2022, compared to the linked quarter was primarily due to an increase in nonperforming indirect home improvement loans of $455,000 and compared to the same period last year was primarily due to an increase in nonperforming commercial business loans of $1.9 million, indirect home improvement loans of $525,000, one-to-four-family loans of $440,000, and marine loans of $211,000.

Loans classified as substandard increased $3.6 million to $20.2 million at December 31, 2022, compared to $16.6 million at September 30, 2022, and increased $2.1 from $18.1 million at December 31, 2021. The quarter over linked quarter increase in substandard loans was attributable to increases of $2.1 million in one-to-four-family loans and $1.9 million in commercial real estate loans, partially offset by a decrease of $806,000 in commercial and industrial loans. The year over year increase in substandard loans was primarily due to increases of $4.5 million in commercial real estate loans, $522,000 in indirect home improvement loans, and $450,000 in one-to-four-family loans, partially offset by a decrease of $3.3 million in commercial and industrial loans. There was one other real estate owned (“OREO”) property in the amount of $570,000 at December 31, 2022, one OREO in the amount of $145,000 at September 30, 2022, compared to none at December 31, 2021.

At December 31, 2022 and September 30, 2022, the Company had two commercial business loans totaling $3.7 million and $3.8 million, respectively, classified as troubled debt restructured (“TDRs”) loans, compared to none at December 31, 2021. These TDRs were nonaccrual loans at December 31, 2022 and 2021.

Operating Results

Net interest income increased $6.6 million, to $29.3 million for the three months ended December 31, 2022, from $22.7 million for the three months ended December 31, 2021. This comparable quarter over quarter increase was primarily the result of an improved mix of loans versus other interest-bearing assets and increased balances in FS Bancorp Q4 Earnings January 25, 2023 Page 8


higher yielding loans. Interest income increased $11.0 million, primarily due to an increase of $10.6 million in interest income on loans receivable, including fees, impacted primarily by loan growth and rising interest rates. Interest expense increased $4.4 million, primarily as a result of higher market interest rates.

For the year ended December 31, 2022, net interest income increased by $17.6 million, to $104.3 million, from $86.6 million for the year ended December 31, 2021 for the same reasons as described for the three-month comparison above, with an increase in interest income of $22.3 million and an increase in interest expense of $4.7 million.

NIM increased 42 basis points to 4.62% for the three months ended December 31, 2022, from 4.20% for the same period in the prior year, and increased 33 basis points to 4.46% for the year ended December 31, 2022, from 4.13% for the year ended December 31, 2021. The increase in NIM for both the three months and year ended December 31, 2022 and 2021, respectively, reflects new loan originations at higher market interest rates, variable rate interest-earning assets repricing higher following recent increases in market interest rates, and an improved asset mix of higher yielding assets as lower yielding excess cash funded higher yielding loans. The benefit from higher rates and interest earning assets were partially offset by rising deposit and borrowing costs. Increases in average balances of higher costing CDs and borrowings placed additional pressure on the NIM.

The average total cost of funds, including noninterest-bearing checking, increased 69 basis points to 1.12% for the three months ended December 31, 2022, from 0.43% for the three months ended December 31, 2021. This increase was predominantly due to the rise in cost for market rate deposits. The average total cost of funds increased 16 basis points to 0.67% for the year ended December 31, 2022, from 0.51% for the year ended December 31, 2021. Management remains focused on matching deposit/liability duration with the duration of loans/assets where appropriate.

For the three months and year ended December 31, 2022, the provision for credit losses on loans was $1.6 million and $6.2 million, respectively, compared to a recovery from the allowance for loan losses of $1.0 million for the three months ended December 31, 2021 and provision for loan losses on loans of $500,000 for the year ended December 31, 2021, as calculated under the prior incurred loss methodology. The provision for credit losses on loans reflects a deterioration of current economic factors, the increase in total loans receivable, and increased reserves on individually evaluated nonaccrual loans.

For the three months and year ended December 31, 2022, the Company recorded a recovery from the allowance for credit losses on unfunded commitments of $545,000 and $365,000, compared to provisions for loan losses on unfunded commitments of $3,000 and $92,000, for the three months and year ended December 31, 2021, respectively, under the prior incurred loss methodology. The recovery from the allowance for credit losses on unfunded commitments in 2022 was primarily attributed to a decline in the amount of unfunded commitments.

During the three months ended December 31, 2022, net charge-offs totaled $564,000, compared to $290,000 for the same period last year, primarily due to net charge-off increases of $175,000 in indirect home improvement loans and $98,000 in marine loans. Net charge-offs totaled $1.4 million during the year ended December 31, 2022, compared to $1.0 million during the year ended December 31, 2021. The year over year increase was primarily due to a net charge-off increase of $326,000 in other consumer loans (which included an increase in deposit overdraft net charge-offs of $301,000) and a net charge-off increase of $94,000 in marine loans, partially offset by reductions in net charge-offs of $38,000 in commercial business loans and $12,000 in indirect home improvement loans.


FS Bancorp Q4 Earnings
January 25, 2023
Page 9

Noninterest income decreased $4.2 million, to $3.7 million, for the three months ended December 31, 2022, from $7.9 million for the three months ended December 31, 2021. The decrease reflects a $5.5 million decrease in gain on sale of loans due to a reduction in origination and sales volume of loans HFS and a reduction in gross margins of sold loans, partially offset by an increase of $1.1 million in service charges and fee income as a result of less amortization of mortgage servicing rights reflecting increased market interest rates and increased servicing fees from non-portfolio serviced loans. Noninterest income decreased $19.4 million to $18.1 million for the year ended December 31, 2022, from $37.5 million for the year ended December 31, 2021. This decrease was primarily the result of a $23.2 million decrease in gain on sale of loans, partially offset by increases of $4.2 million in service charges and fee income.

Noninterest expense increased $890,000 to $21.8 million for the three months ended December 31, 2022, from $21.0 million for the three months ended December 31, 2021. The increase in noninterest expense primarily reflects an increase of $898,000 in acquisition costs related to the pending branch acquisition, compared to none in the same period last year. Other increases included $567,000 in data processing and $275,000 in FDIC insurance. These increases were partially offset by a $868,000 reduction in salaries and benefits, primarily due to a reduction in incentive compensation and commissions. Noninterest expense increased $2.9 million, to $79.2 million for the year ended December 31, 2022, from $76.2 million for the year ended December 31, 2021. The increase as compared to the same period last year was primarily due to a reduction in the recovery of servicing rights to $1,000 from $2.1 million, along with increases of $1.1 million in data processing, $898,000 in acquisition costs mentioned above, $588,000 in FDIC insurance, $273,000 in occupancy, and $263,000 in marketing and advertising, partially offset by a decrease of $2.1 million in salaries and benefits, primarily due to a reduction in incentive compensation and commissions and employee stock ownership plan expense.

About FS Bancorp

FS Bancorp, Inc., a Washington corporation, is the holding company for 1st Security Bank of Washington. The Bank provides loan and deposit services to customers who are predominantly small- and middle-market businesses and individuals in Western Washington through its 20 Bank branches, one headquarters office that produces loans and accepts deposits, and loan production offices in various suburban communities in the greater Puget Sound area, the Tri-Cities, and in Vancouver, Washington. The Bank services home mortgage customers throughout Washington State with an emphasis in the Puget Sound, Tri-Cities, and Vancouver home lending markets. The Bank announced the purchase of seven retail bank branches from Columbia Bank (two in Washington state and five in Oregon) with the transaction projected to be consummated on February 24, 2023, and the branches opening as 1st Security Bank branches on February 27, 2023.

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”), in press releases or 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 FS Bancorp Q4 Earnings January 25, 2023 Page 10


in the forward-looking statements, include but are not limited to, the following: potential adverse impacts to 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, a potential recession or slowed economic growth caused by increasing political instability from acts of war, including Russia’s invasion of Ukraine, as well as supply chain disruptions, and any governmental or societal response to new COVID-19 variants; increased competitive pressures, changes in the interest rate environment, adverse changes in the securities markets, the Company’s ability to successfully realize the anticipated benefits of the pending branch acquisitions, including customer acquisition and retention; 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; legislative and regulatory changes, including as a result of the COVID-19 pandemic; and other factors described in the Company’s latest Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and other filings with 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 specifically disclaims any obligation to revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements. These risks could cause the Company’s actual results for 2023 and beyond to differ materially from those expressed in any forward-looking statements made by, or on behalf of the Company and could negatively affect its operating and stock performance.


FS Bancorp Q4 Earnings
January 25, 2023
Page 11

FS BANCORP, INC. AND SUBSIDIARY

CONSOLIDATED BALANCE SHEETS

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

Linked

Year

December 31, 

September 30, 

December 31, 

Quarter

Over Year

    

2022

    

2022

    

2021

    

% Change

    

% Change

ASSETS

Cash and due from banks

$

10,525

$

11,541

$

12,043

(9)

(13)

Interest-bearing deposits at other financial institutions

 

30,912

 

148,256

 

14,448

(79)

114

Total cash and cash equivalents

 

41,437

 

159,797

 

26,491

(74)

56

Certificates of deposit at other financial institutions

 

4,712

 

4,960

 

10,542

(5)

(55)

Securities available-for-sale, at fair value

 

229,252

 

227,942

 

271,359

1

(16)

Securities held-to-maturity, net

8,469

8,469

7,500

13

Loans held for sale, at fair value

 

20,093

 

23,447

 

125,810

(14)

(84)

Loans receivable, net

 

2,190,860

 

2,083,929

 

1,728,540

5

27

Accrued interest receivable

 

11,144

 

10,407

 

7,594

7

47

Premises and equipment, net

 

25,119

 

25,438

 

26,591

(1)

(6)

Operating lease right-of-use

6,226

6,607

4,557

(6)

37

Federal Home Loan Bank (“FHLB”) stock, at cost

 

10,611

 

13,591

 

4,778

(22)

122

Other real estate owned (“OREO”)

570

145

293

100

Deferred tax asset, net

6,670

6,571

2

100

Bank owned life insurance (“BOLI”), net

 

36,799

 

36,578

 

37,092

1

(1)

Servicing rights, held at the lower of cost or fair value

 

18,017

 

18,470

 

16,970

(2)

6

Goodwill

 

2,312

 

2,312

 

2,312

Core deposit intangible, net

 

3,369

 

3,542

 

4,060

(5)

(17)

Other assets

 

17,238

 

19,933

 

12,195

(14)

41

TOTAL ASSETS

$

2,632,898

$

2,652,138

$

2,286,391

(1)

15

LIABILITIES

 

  

 

  

Deposits:

 

  

 

  

Noninterest-bearing accounts

$

554,174

$

581,612

$

580,749

(5)

(5)

Interest-bearing accounts

 

1,573,567

 

1,501,726

 

1,334,995

5

18

Total deposits

 

2,127,741

 

2,083,338

 

1,915,744

2

11

Borrowings

 

186,528

 

260,828

 

42,528

(28)

339

Subordinated notes:

 

 

Principal amount

 

50,000

 

50,000

 

50,000

Unamortized debt issuance costs

 

(539)

 

(556)

 

(606)

(3)

(11)

Total subordinated notes less unamortized debt issuance costs

 

49,461

 

49,444

 

49,394

Operating lease liability

6,474

6,836

4,792

(5)

35

Deferred tax liability, net

 

 

1,183

(100)

Other liabilities

 

30,997

 

31,145

 

25,243

23

Total liabilities

 

2,401,201

 

2,431,591

 

2,038,884

(1)

18

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; 7,736,185 shares issued and outstanding at December 31, 2022, 7,704,373 at September 30, 2022, and 8,169,887 at December 31, 2021

77

77

82

(6)

Additional paid-in capital

 

55,187

 

53,769

 

67,958

3

(19)

Retained earnings

 

202,065

 

195,986

 

179,215

3

13

Accumulated other comprehensive (loss) income, net of tax

 

(25,632)

 

(29,285)

 

252

(12)

(10,271)

Total stockholders’ equity

 

231,697

 

220,547

 

247,507

5

(6)

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

$

2,632,898

$

2,652,138

$

2,286,391

(1)

15


FS Bancorp Q4 Earnings
January 25, 2023
Page 12

FS BANCORP, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF INCOME

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

Three Months Ended

Qtr

Year

December 31, 

September 30, 

December 31, 

Over Qtr

Over Year

    

2022

    

2022

    

2021

    

% Change

    

% Change

INTEREST INCOME

Loans receivable, including fees

$

33,763

$

29,563

$

23,199

14

46

Interest and dividends on investment securities, cash and cash equivalents, and certificates of deposit at other financial institutions

 

2,056

 

1,741

 

1,587

18

30

Total interest and dividend income

 

35,819

 

31,304

 

24,786

14

45

INTEREST EXPENSE

 

 

 

Deposits

 

3,982

 

2,596

 

1,448

53

175

Borrowings

 

2,049

 

696

 

179

194

1,045

Subordinated notes

 

486

 

485

 

485

Total interest expense

 

6,517

 

3,777

 

2,112

73

209

NET INTEREST INCOME

 

29,302

 

27,527

 

22,674

6

29

PROVISION (REVERSAL) FOR CREDIT LOSSES

1,585

1,718

(1,000)

(8)

(259)

NET INTEREST INCOME AFTER PROVISION (REVERSAL) FOR CREDIT LOSSES

 

27,717

 

25,809

 

23,674

7

17

NONINTEREST INCOME

Service charges and fee income

 

2,404

 

2,327

 

1,323

3

82

Gain on sale of loans

 

592

 

1,402

 

6,121

(58)

(90)

Earnings on cash surrender value of BOLI

 

222

 

221

 

219

1

Other noninterest income

 

478

 

231

 

232

107

106

Total noninterest income

3,696

4,181

7,895

(12)

(53)

NONINTEREST EXPENSE

  

 

  

Salaries and benefits

12,522

 

11,402

13,390

10

(6)

Operations

3,087

2,812

3,031

10

2

Occupancy

 

1,340

 

1,344

 

1,300

3

Data processing

 

1,699

 

1,548

 

1,132

10

50

Loan costs

 

698

 

746

 

782

(6)

(11)

Professional and board fees

 

767

 

631

 

816

22

(6)

Federal Deposit Insurance Corporation (“FDIC”) insurance

 

420

 

462

 

145

(9)

190

Marketing and advertising

245

220

205

11

20

Acquisition cost

898

100

100

Amortization of core deposit intangible

 

173

 

173

 

160

8

Recovery of servicing rights

 

 

 

(2)

100

Total noninterest expense

 

21,849

 

19,338

20,959

13

4

INCOME BEFORE PROVISION FOR INCOME TAXES

 

9,564

 

10,652

10,610

(10)

(10)

PROVISION FOR INCOME TAXES

 

1,942

 

2,194

 

1,961

(11)

(1)

NET INCOME

$

7,622

$

8,458

$

8,649

(10)

(12)

Basic earnings per share (1)

$

0.98

$

1.09

$

1.05

(10)

(7)

Diluted earnings per share (1)

$

0.97

$

1.08

$

1.03

(10)

(6)


FS Bancorp Q4 Earnings
January 25, 2023
Page 13

FS BANCORP, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF INCOME

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

Year Ended

Year

December 31, 

December 31, 

Over Year

    

2022

    

2021

    

% Change

INTEREST INCOME

Loans receivable, including fees

$

111,648

$

90,737

23

Interest and dividends on investment securities, cash and cash equivalents, and certificates of deposit at other financial institutions

 

7,046

 

5,637

25

Total interest and dividend income

 

118,694

 

96,374

23

INTEREST EXPENSE

 

 

Deposits

 

9,420

 

6,929

36

Borrowings

 

3,052

 

1,074

184

Subordinated note

 

1,942

 

1,722

13

Total interest expense

 

14,414

 

9,725

48

NET INTEREST INCOME

 

104,280

 

86,649

20

PROVISION FOR CREDIT LOSSES

6,217

500

1,143

NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES

 

98,063

 

86,149

14

NONINTEREST INCOME

Service charges and fee income

 

8,525

 

4,349

96

Gain on sale of loans

 

7,917

 

31,083

(75)

Earnings on cash surrender value of BOLI

 

876

 

866

1

Other noninterest income

 

790

 

1,215

(35)

Total noninterest income

18,108

37,513

(52)

NONINTEREST EXPENSE

  

Salaries and benefits

47,632

49,721

(4)

Operations

10,743

10,791

Occupancy

 

5,165

 

4,892

6

Data processing

 

6,062

 

4,951

22

Loss on sale of OREO

 

 

9

100

Loan costs

 

2,718

 

2,795

(3)

Professional and board fees

 

3,154

 

3,181

(1)

FDIC insurance

 

1,224

 

636

92

Marketing and advertising

897

634

41

Acquisition cost

898

100

Amortization of core deposit intangible

 

691

 

691

Recovery of servicing rights

 

(1)

 

(2,059)

(100)

Total noninterest expense

 

79,183

76,242

4

INCOME BEFORE PROVISION FOR INCOME TAXES

 

36,988

47,420

(22)

PROVISION FOR INCOME TAXES

 

7,339

 

10,008

(27)

NET INCOME

$

29,649

$

37,412

(21)

Basic earnings per share (1)

$

3.75

$

4.48

(16)

Diluted earnings per share (1)

$

3.70

$

4.37

(15)

____________________________

(1) Earnings per share for the three months and year ended December 31, 2021, was revised due to the improper inclusion of certain unvested shares in the denominator of basic and diluted earnings per share. As a result of the inclusion, earnings per share was understated for the three months ended and year ended December 31, 2021. Basic earnings per share for those periods was updated to $1.05 and $4.48, respectively, from $1.04 and $4.42 as previously reported. Diluted earnings per share was updated to $1.03 and $4.37, respectively, from $1.01 and $4.32 as previously reported.


FS Bancorp Q4 Earnings
January 25, 2023
Page 14

KEY FINANCIAL RATIOS AND DATA (Unaudited)

For the Three Months Ended

December 31, 

September 30, 

December 31, 

    

2022

2022

2021

PERFORMANCE RATIOS:

                

Return on assets (ratio of net income to average total assets) (1) 

1.16

%  

1.34

%  

1.54

%

Return on equity (ratio of net income to average equity) (1)

11.52

13.31

14.07

Yield on average interest-earning assets (1)

5.65

5.16

4.59

Average total cost of funds (1)

1.12

0.68

0.43

Interest rate spread information – average during period

4.53

4.48

4.16

Net interest margin (1) 

4.62

4.54

4.20

Operating expense to average total assets (1)

3.32

3.07

3.72

Average interest-earning assets to average interest-bearing liabilities (1)

142.94

147.92

152.96

Efficiency ratio (2)

66.21

60.99

68.57

For the Year Ended

December 31, 

December 31, 

    

2022

     

2021

PERFORMANCE RATIOS:

Return on assets (ratio of net income to average total assets)

1.22

%  

                

1.71

%

Return on equity (ratio of net income to average equity) 

11.66

15.74

Yield on average interest-earning assets

5.07

4.59

Average total cost of funds

0.67

0.51

Interest rate spread information – average during period

4.40

4.08

Net interest margin 

4.46

4.13

Operating expense to average total assets

3.25

3.48

Average interest-earning assets to average interest-bearing liabilities

149.09

146.06

Efficiency ratio (2)

64.70

61.41

December 31, 

September 30, 

December 31, 

    

2022

2022

2021

ASSET QUALITY RATIOS AND DATA:

Nonperforming assets to total assets at end of period (3)

0.35

%  

0.32

%  

0.25

%

Nonperforming loans to total gross loans (4)

0.39

0.39

0.33

Allowance for credit losses - loans to nonperforming loans (4)

303.50

315.35

440.24

Allowance for credit losses - loans to gross loans receivable, excluding HFS loans

1.26

1.25

1.46

At or For the Three Months Ended

December 31, 

September 30, 

December 31, 

    

2022

     

2022

     

2021

PER COMMON SHARE DATA:

Basic earnings per share

$

0.98

$

1.09

$

1.05

Diluted earnings per share

$

0.97

$

1.08

$

1.03

Weighted average basic shares outstanding

 

7,597,260

7,605,360

8,065,103

Weighted average diluted shares outstanding

 

7,712,498

7,707,762

8,260,103

Common shares outstanding at end of period

 

7,617,655

(5)​

7,585,843

(6)​

8,048,215

(7)​

Book value per share using common shares outstanding

$

30.42

$

29.07

$

30.75

Tangible book value per share using common shares outstanding (8)

$

29.67

$

28.30

$

29.96

____________________________

(1) Annualized.

FS Bancorp Q4 Earnings
January 25, 2023
Page 15

(2) Total noninterest expense as a percentage of net interest income and total noninterest income.
(3) 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.
(4) Nonperforming loans consist of nonaccruing loans and accruing loans 90 days or more past due.
(5) Common shares were calculated using shares outstanding of 7,736,185 at December 31, 2022, less 118,530 unvested restricted stock shares.
(6) Common shares were calculated using shares outstanding of 7,704,373 at September 30, 2022, less 118,530 unvested restricted stock shares.
(7) Common shares were calculated using shares outstanding of 8,169,887 at December 31, 2021, less 121,672 unvested restricted stock shares.
(8) 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.

(Dollars in thousands)

For the Three Months Ended December 31, 

For the Year Ended December 31, 

QTR Over QTR

Year Over Year

Average Balances

    

2022

    

2021

    

2022

    

2021

    

$ Change

    

$ Change

Assets

Loans receivable (1)

 

$

2,194,173

 

$

1,813,922

$

2,014,017

$

1,762,832

$

380,251

$

251,185

Securities available-for-sale, at fair value

 

274,255

 

267,325

 

278,099

229,027

6,930

49,072

Securities held-to-maturity

8,500

7,500

8,084

7,500

1,000

584

Interest-bearing deposits and certificates of deposit at other financial institutions

 

11,729

 

48,621

 

7,231

93,435

(36,892)

(86,204)

FHLB stock, at cost

 

26,706

 

4,637

 

32,689

5,494

22,069

27,195

Total interest-earning assets

 

2,515,363

 

2,142,005

 

2,340,120

2,098,288

373,358

241,832

Noninterest-earning assets

 

96,379

 

92,622

 

95,574

90,925

3,757

4,649

Total assets

 

$

2,611,742

 

$

2,234,627

$

2,435,694

$

2,189,213

$

377,115

$

246,481

Liabilities and stockholders’ equity