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FS Bancorp Inc (FSBW)
NASDAQ:FSBW
US Market
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FS Bancorp (FSBW) AI Stock Analysis

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FSBW

FS Bancorp

(NASDAQ:FSBW)

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Neutral 63 (OpenAI - Gpt-5.6Sol)
Rating:63Neutral
Price Target:
$47.00
â–²(9.68% Upside)
Action:Reiterated
Date:10/23/26
The score is primarily held back by mixed financial performance—material TTM revenue decline, margin compression, higher leverage, and weaker free-cash-flow conversion—despite steady net income. Technicals are mildly supportive with price above key moving averages and a positive MACD, and valuation is favorable with a low-teens P/E and a ~2.6% dividend yield. Corporate events add modest support via the acquisition and buyback plan but are tempered by near-term earnings pressure from merger costs.
Positive Factors
Acquisition expands regional banking scale
The Pacific West acquisition materially expands FS Bancorp’s asset, deposit, and lending base while extending its presence into Oregon. Greater scale can deepen customer relationships, broaden future revenue opportunities, and strengthen the company’s regional community-banking platform.
Negative Factors
Revenue and operating margin deterioration
The sharp TTM revenue decline and lower operating margins indicate that recent earnings power is weaker than in the prior two years. If this persists, reduced profitability could constrain organic investment, capital flexibility, and the bank’s ability to absorb operating pressures.
Read all positive and negative factors
Positive Factors
Negative Factors
Acquisition expands regional banking scale
The Pacific West acquisition materially expands FS Bancorp’s asset, deposit, and lending base while extending its presence into Oregon. Greater scale can deepen customer relationships, broaden future revenue opportunities, and strengthen the company’s regional community-banking platform.
Read all positive factors

FS Bancorp (FSBW) vs. SPDR S&P 500 ETF (SPY)

FS Bancorp Business Overview & Revenue Model

Company Description
FS Bancorp, Inc. functions as the holding company for 1st Security Bank of Washington, delivering a comprehensive suite of banking and financial services. These offerings cater to families, local and regional businesses, and specialized industry s...
How the Company Makes Money
FS Bancorp primarily earns money through its banking subsidiary by (1) generating net interest income and (2) collecting noninterest income, while incurring operating and funding costs. Net interest income is typically the largest driver: the bank...

FS Bancorp Financial Statement Overview

Summary
Mixed fundamentals: TTM revenue fell sharply (~19%) with margin compression (gross and EBITDA down vs 2024–2025), while net income held roughly flat and net margin improved vs 2025. Balance-sheet risk increased as debt-to-equity rose to ~1.19 TTM (vs ~0.46 in 2025). Cash flow remains positive (OCF ~$59M; FCF ~$40M) but FCF declined (~23%) and cash conversion weakened (~68% of net income).
Income Statement
63
Positive
Balance Sheet
56
Neutral
Cash Flow
60
Neutral
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue178.70M217.51M203.71M185.26M134.08M131.08M
Gross Profit103.32M144.75M136.47M136.59M113.45M120.86M
EBITDA35.92M56.68M52.15M57.92M50.99M62.60M
Net Income33.36M33.35M35.02M36.05M29.65M37.41M
Balance Sheet
Total Assets3.18B3.20B3.03B2.97B2.63B2.29B
Cash, Cash Equivalents and Short-Term Investments282.30M302.17M200.75M194.22M275.40M308.39M
Total Debt380.95M141.08M354.96M60.27M242.46M96.71M
Total Liabilities2.86B2.89B2.73B2.71B2.40B2.04B
Stockholders Equity318.96M307.69M295.77M264.49M231.70M247.51M
Cash Flow
Free Cash Flow98.12M51.94M49.19M76.00M183.35M107.03M
Operating Cash Flow117.70M72.31M50.82M77.67M184.90M109.01M
Investing Cash Flow-86.60M-206.43M-104.20M77.67M-504.04M-310.83M
Financing Cash Flow-34.58M130.70M19.32M-131.08M334.09M136.74M

FS Bancorp Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price42.85
Price Trends
50DMA
43.72
Positive
100DMA
43.19
Positive
200DMA
41.62
Positive
Market Momentum
MACD
0.11
Positive
RSI
45.36
Neutral
STOCH
58.60
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FSBW, the sentiment is Neutral. The current price of 42.85 is below the 20-day moving average (MA) of 44.26, below the 50-day MA of 43.72, and above the 200-day MA of 41.62, indicating a neutral trend. The MACD of 0.11 indicates Positive momentum. The RSI at 45.36 is Neutral, neither overbought nor oversold. The STOCH value of 58.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FSBW.

FS Bancorp Risk Analysis

FS Bancorp disclosed 31 risk factors in its most recent earnings report. FS Bancorp reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

FS Bancorp Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
$442.32M10.5115.86%2.03%24.22%39.38%
73
Outperform
$406.45M9.8810.64%2.97%6.34%35.15%
69
Neutral
$414.18M10.3413.69%4.09%2.06%24.58%
68
Neutral
$18.00B11.429.92%3.81%9.73%1.22%
66
Neutral
$504.87M14.2510.27%3.98%25.09%12.79%
64
Neutral
$433.33M12.389.04%2.33%16.31%4.61%
63
Neutral
$344.35M11.259.14%2.63%5.90%-7.04%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FSBW
FS Bancorp
43.77
5.83
15.38%
CZNC
Citizens & Northern
28.15
9.57
51.54%
CBAN
Colony Bankcorp
20.42
4.28
26.53%
FNLC
First Bancorp
36.70
12.62
52.39%
PLBC
Plumas Bancorp
63.56
23.54
58.80%
PCB
PCB Bancorp
28.94
8.23
39.75%

FS Bancorp Corporate Events

Business Operations and StrategyExecutive/Board Changes
FS Bancorp appoints CEO Matthew Mullet to boards
Positive
Oct 23, 2026
On October 22, 2026, FS Bancorp, Inc., the holding company for 1st Security Bank of Washington, appointed President and Chief Executive Officer Matthew D. Mullet to the Boards of Directors of both the Company and the Bank. The governance nominatin...
Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresM&A Transactions
FS Bancorp Reports Lower Q3 Earnings Amid Merger Costs
Negative
Oct 21, 2026
On October 21, 2026, FS Bancorp reported third-quarter 2026 net income of $4.9 million, or $0.63 per diluted share, down from $7.9 million in the prior quarter and $9.2 million a year earlier, reflecting merger-related costs and Home Lending weakn...
Business Operations and StrategyStock Buyback
FS Bancorp Announces $5 Million Share Repurchase Plan
Positive
Aug 24, 2026
On August 24, 2026, FS Bancorp, Inc., the holding company for 1st Security Bank of Washington, said its board had authorized a share repurchase program of up to $5.0 million of its outstanding common stock. The buyback, which can be executed in op...
Business Operations and StrategyM&A Transactions
FS Bancorp Completes Acquisition of Pacific West Bancorp
Positive
Aug 21, 2026
Effective August 19, 2026, FS Bancorp, Inc., parent of 1st Security Bank of Washington, completed its acquisition of Pacific West Bancorp, the parent of Pacific West Bank of Portland, Oregon, merging Pacific West Bank into 1st Security Bank of Was...
Business Operations and Strategy
FS Bancorp Highlights Strategy at Western Bank Summit
Positive
Aug 11, 2026
FS Bancorp, Inc. announced that President and Chief Executive Officer Matthew D. Mullet, Executive Vice President and Chief Risk Officer and CRA Officer Erin Burr, and Executive Vice President and Chief Lending Officer Benjamin G. Crowl will atten...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 23, 2026