Net interest margin remains stubbornly flat at 1.0% as of 2026Q1, reflecting an inability to expand interest-earning assets effectively against rising liability costs.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'07 | Dec'06 |
|---|
| Net Interest Income | 131.97M | 130.41M | 123.11M | 123.3M | 104.28M | 86.65M | 74.12M | 70.31M | 52.1M | 41.25M | 33.86M | 28.05M | 22.14M | 19.55M | 16.42M | 13.47M | 13.45M | 11.88M | 10.68M | 11.41M |
| NII Growth % | 26.56% | 5.93% | -0.16% | 18.24% | 20.35% | 16.9% | 5.42% | 34.95% | 26.3% | 21.83% | 20.71% | 26.69% | 13.22% | 19.06% | 21.91% | 0.19% | 13.16% | 11.3% | -6.46% | - |
| Net Interest Margin % | 4.12% | 4.08% | 4.06% | 4.15% | 3.96% | 3.79% | 3.51% | 4.1% | 3.21% | 4.2% | 4.09% | 4.14% | 4.34% | 4.66% | 4.57% | 4.75% | 4.6% | 4.22% | 4.06% | 4.45% |
| Interest Income | 199.79M | 197.25M | 184.84M | 167.19M | 118.69M | 96.37M | 88.84M | 89.63M | 62.33M | 46.18M | 38.02M | 31.71M | 24.84M | 21.73M | 18.79M | 16.48M | 17.33M | 16.4M | 17.62M | 16.95M |
| Interest Expense | 67.82M | 66.84M | 61.73M | 43.89M | 14.41M | 9.72M | 14.72M | 19.32M | 10.23M | 4.93M | 4.16M | 3.66M | 2.7M | 2.18M | 2.36M | 3.01M | 3.89M | 4.52M | 6.94M | 5.54M |
| Loan Loss Provision | 6.86M | 5.92M | 5.51M | 4.77M | 6.22M | 500K | 13.04M | 2.88M | 1.54M | 750K | 2.4M | 2.25M | 1.8M | 2.17M | 2.91M | 2.37M | 3.48M | 7.07M | 577.91K | 246K |
| Non-Interest Income | 21.14M | 20.26M | 18.87M | 18.06M | 15.39M | 34.71M | 53.29M | 19.96M | 16.71M | 20.36M | 21.21M | 16.05M | 8.65M | 7.06M | 4.45M | 1.37M | 2.66M | 3.15M | 3.37M | 4.91M |
| Non-Interest Income % | 9.57% | 9.32% | 9.26% | 9.75% | 11.48% | 26.48% | 37.5% | 18.21% | 21.14% | 30.6% | 35.81% | 33.6% | 25.84% | 24.52% | 19.15% | 7.7% | 13.31% | 16.13% | 16.04% | 22.47% |
| Total Revenue | 220.93M | 217.51M | 203.71M | 185.26M | 134.08M | 131.08M | 142.13M | 109.59M | 79.03M | 66.54M | 59.23M | 47.75M | 33.5M | 28.79M | 23.24M | 17.85M | 19.99M | 19.56M | 20.98M | 21.86M |
| Revenue Growth % | 14.14% | 6.78% | 9.96% | 38.16% | 2.29% | -7.77% | 29.7% | 38.66% | 18.77% | 12.34% | 24.04% | 42.56% | 16.33% | 23.91% | 30.16% | -10.71% | 2.23% | -6.8% | -4.02% | - |
| Non-Interest Expense | 101.07M | 100M | 94.88M | 91.32M | 76.47M | 73.44M | 64.53M | 59.26M | 38.69M | 40.28M | 36.57M | 28.1M | 22.52M | 18.51M | 14.76M | 10.93M | 11.03M | 12.54M | 17.32M | 14.26M |
| Efficiency Ratio | 45.75% | 45.98% | 46.58% | 49.29% | 57.03% | 56.02% | 45.4% | 54.08% | 48.96% | 60.53% | 61.73% | 58.84% | 67.24% | 64.27% | 63.53% | 61.24% | 55.15% | 64.14% | 82.55% | 65.24% |
| Operating Income | 45.18M | 44.74M | 41.58M | 45.27M | 36.99M | 47.42M | 49.85M | 28.13M | 28.57M | 20.58M | 16.1M | 13.75M | 6.47M | 5.94M | 3.2M | 1.54M | 1.6M | -4.57M | -3.86M | 1.82M |
| Operating Margin % | 20.45% | 20.57% | 20.41% | 24.44% | 27.59% | 36.18% | 35.07% | 25.67% | 36.15% | 30.93% | 27.19% | 28.79% | 19.32% | 20.63% | 13.76% | 8.65% | 8.01% | -23.39% | -18.38% | 8.32% |
| Operating Income Growth % | - | 7.6% | -8.15% | 22.4% | -22% | -4.87% | 77.21% | -1.54% | 38.83% | 27.8% | 17.12% | 112.47% | 8.96% | 85.71% | 106.99% | -3.56% | 135.02% | -18.57% | -312.11% | - |
| Pretax Income | 41.55M | 41.12M | 41.58M | 45.27M | 36.99M | 47.42M | 49.85M | 28.13M | 28.57M | 20.58M | 16.1M | 13.75M | 6.47M | 5.94M | 3.2M | 1.54M | 1.6M | -4.57M | -3.86M | 1.82M |
| Pretax Margin % | 18.81% | 18.9% | 20.41% | 24.44% | 27.59% | 36.18% | 35.07% | 25.67% | 36.15% | 30.93% | 27.19% | 28.79% | 19.32% | 20.63% | 13.76% | 8.65% | 8.01% | -23.39% | -18.38% | 8.32% |
| Income Tax | 8.4M | 7.77M | 6.56M | 9.22M | 7.34M | 10.01M | 10.59M | 5.41M | 4.22M | 6.49M | 5.6M | 4.87M | 1.93M | 2.02M | -2.1M | 0 | 0 | 0 | 271.55K | 573.14K |
| Effective Tax Rate % | 20.21% | 18.9% | 15.77% | 20.36% | 19.84% | 21.11% | 21.24% | 19.24% | 14.78% | 31.56% | 34.8% | 35.44% | 29.84% | 34% | -65.57% | 0% | 0% | 0% | -7.04% | 31.52% |
| Net Income | 33.16M | 33.35M | 35.02M | 36.05M | 29.65M | 37.41M | 39.26M | 22.72M | 24.35M | 14.09M | 10.5M | 8.88M | 4.54M | 3.92M | 5.29M | 1.54M | 1.6M | -4.57M | -4.13M | 1.25M |
| Net Margin % | 15.01% | 15.33% | 17.19% | 19.46% | 22.11% | 28.54% | 27.63% | 20.73% | 30.81% | 21.17% | 17.72% | 18.59% | 13.55% | 13.61% | 22.79% | 8.65% | 8.01% | -23.39% | -19.68% | 5.7% |
| Net Income Growth % | -4.31% | -4.79% | -2.85% | 21.6% | -20.75% | -4.72% | 72.84% | -6.69% | 72.86% | 34.16% | 18.29% | 95.51% | 15.82% | -25.97% | 242.72% | -3.56% | 135.02% | -10.78% | -431.53% | - |
| Net Income (Continuing) | 33.16M | 33.35M | 35.02M | 36.05M | 29.65M | 37.41M | 39.26M | 22.72M | 24.35M | 14.09M | 10.5M | 8.88M | 4.54M | 3.92M | 5.29M | 1.54M | 1.6M | -4.57M | -4.13M | 1.25M |
| EPS (Diluted) | 4.33 | 4.28 | 4.36 | 4.56 | 3.70 | 4.32 | 4.49 | 2.50 | 3.15 | 2.14 | 1.76 | 1.47 | 0.76 | 0.65 | 0.88 | 0.24 | 0.25 | -0.71 | -0.64 | 0.19 |
| EPS Growth % | -1.38% | -1.83% | -4.39% | 23.24% | -14.35% | -3.79% | 79.6% | -20.63% | 47.2% | 21.59% | 19.73% | 93.42% | 16.92% | -26.14% | 266.67% | -4% | 135.21% | -10.94% | -436.84% | - |
| EPS (Basic) | - | 4.34 | 4.48 | 4.63 | 3.75 | 4.42 | 4.57 | 2.57 | 3.29 | 2.28 | 1.82 | 1.49 | 0.76 | 0.65 | 0.88 | 0.24 | 0.25 | -0.71 | -0.64 | 0.19 |
| Diluted Shares Outstanding | 7.66M | 7.66M | 7.89M | 7.91M | 8.01M | 8.66M | 8.71M | 9.05M | 7.74M | 6.58M | 5.98M | 6.06M | 5.97M | 6.08M | 6.01M | 6.48M | 6.48M | 6.48M | 6.48M | 6.48M |
Mortgage revenue volatility
According to reported financial statements, FSBW's net interest income has remained largely range-bound, moving from $30.5 million in 2023Q4 to $32.5 million in 2026Q1, suggesting that the bank is struggling to meaningfully expand its interest-earning base despite a generally supportive rate environment for regional lenders.
The modest growth in NII appears to reflect a challenging deposit environment where funding costs likely offset gains from asset repricing. Investors should monitor whether the bank's reliance on niche indirect lending can continue to support margins if competitive pressures in the Puget Sound market intensify further.
Based on the provided quarterly data, FSBW's net interest margin has remained stubbornly flat at 1.0% for the majority of the last ten quarters, indicating that the bank's asset yields are failing to outpace the rising cost of interest-bearing liabilities in the current cycle.
This lack of margin expansion suggests that the bank's specialized lending niches may not be providing the expected pricing power against larger regional competitors. The stability of this metric at a low level warrants further investigation into the bank's deposit beta and its ability to retain low-cost funding.
As reported in recent filings, the efficiency ratio has fluctuated significantly, reaching a high of 54.0% in 2024Q4 before moderating to 46.7% in 2026Q1, which highlights the bank's operational vulnerability to the cyclical nature of its mortgage-heavy revenue stream and associated non-interest expense overhead.
The volatility in the efficiency ratio implies that the bank's cost structure is not sufficiently flexible to absorb sharp declines in mortgage-related fee income. This suggests that management may face challenges in maintaining operating leverage if origination volumes remain depressed or if competitive wage pressures persist.
Based on the bank's historical performance, non-interest income has shown extreme volatility, ranging from a negative $3.7 million in 2024Q1 to a peak of $12.2 million in 2024Q4, underscoring the high dependency on mortgage gain-on-sale margins which are inherently sensitive to interest rate fluctuations.
The erratic nature of these fee streams suggests that the bank's non-interest income is not a reliable source of recurring earnings. Investors should be cautious of the potential for future negative surprises if mortgage market conditions deteriorate, as the current fee composition lacks sufficient diversification.
As indicated by the financial data, the provision for loan losses has been inconsistent, spiking to $2.5 million in 2026Q1 from zero in 2025Q4, which may suggest a shift in management's assessment of credit quality within the bank's specialized indirect consumer and commercial loan portfolios.
The sudden increase in provision expense warrants close monitoring, as it may indicate early signs of stress in the bank's niche lending segments. This development could imply that the bank's underwriting standards are being tested by the current economic environment in the Pacific Northwest.
Quick answers to the most common questions about buying FSBW stock.
FS Bancorp, Inc. (FSBW) is profitable, generating $33.3M in net income for the fiscal year ending 2025 with a net profit margin of 15.3%.
FS Bancorp, Inc. (FSBW) reported an operating income of $44.7M, resulting in an operating profit margin of 20.6%. This margin reflects the operational efficiency of the business before interest and taxes.
FS Bancorp, Inc. (FSBW) generated $144.7M in gross profit for the year, representing a gross profit margin of 66.5%. This demonstrates the company's core pricing power and production efficiency.