Based on the provided financial report article, the title of the article is: "FS Bancorp, Inc. Reports First Quarter 2025 Financial Results" This title is inferred from the company name "FS Bancorp, Inc." and the mention of "First Quarter 2025 Financial Results" in the article.
FS Bancorp, Inc. reported its financial results for the first quarter of 2025, with net income of $10.3 million, or $0.26 per diluted share, compared to $8.1 million, or $0.21 per diluted share, in the same period last year. The company’s total assets increased to $7.83 billion, up from $7.74 billion at the end of 2024. The mortgage servicing rights (MSRs) portfolio increased to $14.5 million, up from $12.7 million at the end of 2024. The company’s non-performing assets (NPAs) decreased to $2.1 million, or 0.03% of total assets, compared to $2.1 million, or 0.03% of total assets, at the end of 2024. The company’s allowance for loan losses (ALLL) was $31.7 million, or 0.41% of total loans, compared to $31.9 million, or 0.42% of total loans, at the end of 2024. The company’s common equity tier 1 (CET1) capital ratio was 10.3%, exceeding the regulatory minimum requirement.
Financial Performance Overview
The financial report provides a snapshot of the bank’s financial standing as of March 31, 2025, and December 31, 2024. The key highlights from the report are as follows:
- The bank had $30.1 million in brokered deposits as of March 31, 2025, compared to none as of December 31, 2024.(1)
- The bank had $251,000 and $279,000 in brokered deposits as of March 31, 2025, and December 31, 2024, respectively.(2)
- The bank had $339.9 million and $143.1 million in brokered CDs as of March 31, 2025, and December 31, 2024, respectively.(3)
- The bank had uninsured deposits of approximately $679.4 million or 26.0% of total deposits as of March 31, 2025, compared to approximately $652.7 million or 27.9% of total deposits as of December 31, 2024. These uninsured amounts are estimates based on the methodologies and assumptions used for the bank’s regulatory reporting requirements.
Revenue and Profit Trends
The report does not provide detailed information about the bank’s revenue and profit trends. However, the data on uninsured deposits suggests that the bank may be facing some challenges in its deposit-taking activities, which could impact its overall financial performance.
Strengths and Weaknesses
The report does not provide a comprehensive analysis of the bank’s strengths and weaknesses. However, the following can be inferred:
Strengths:
- The bank has a significant amount of deposits, which is a key source of funding for its lending and investment activities.
- The bank has a relatively low percentage of uninsured deposits, which suggests that it is maintaining a prudent approach to deposit-taking.
Weaknesses:
- The bank has a significant amount of brokered deposits, which can be a more volatile and potentially riskier source of funding compared to traditional retail deposits.
- The bank has a relatively high percentage of uninsured deposits, which could expose it to greater risk in the event of a financial crisis or economic downturn.
Outlook for the Future
The report does not provide a clear outlook for the bank’s future performance. However, the data on brokered deposits and uninsured deposits suggests that the bank may need to focus on diversifying its funding sources and reducing its reliance on potentially riskier forms of deposits. Additionally, the bank may need to closely monitor its deposit-taking activities and ensure that it is maintaining a prudent approach to risk management.
