Washington
|
001-35589
|
45-4585178
|
(State or other jurisdiction
of incorporation)
|
(Commission
File Number)
|
(I.R.S. Employer
Identification No.)
|
6920 220th Street SW, Suite 200,
Mountlake Terrace, Washington
|
98043
|
(Address of principal executive offices)
|
(Zip Code)
|
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))
|
(d)
|
Exhibits
|
99.1
|
Press release of FS Bancorp, Inc. dated July 25, 2013
|
Date: July 25, 2013 |
FS BANCORP, INC.
|
/s/Matthew D. Mullet | |
Matthew D. Mullet | |
Chief Financial Officer
(Principal Financial and Accounting Officer)
|
·
|
Total assets increased to $378.9 million at June 30, 2013, compared to $371.6 million at March 31, 2013 and $340.9 million at June 30, 2012;
|
·
|
Net income decreased to $1.1 million in the second quarter compared to $1.2 million in the first quarter of 2013, and increased from $621,000 for the comparable quarter one year ago;
|
·
|
Earnings per diluted share were $0.36 for the second quarter of 2013 compared to $0.41 for the preceding quarter;
|
·
|
Net interest margin increased to 5.47% in the second quarter compared to 5.45% for the preceding quarter and from 5.39% for the comparable quarter one year ago;
|
·
|
The ratio of non-performing assets to total assets improved year over year to 1.1% at June 30, 2013 compared to 1.4% at June 30, 2012 and increased slightly from 1.0% at March 31, 2013; and
|
·
|
Capital levels at the Bank for Total Risk-Based Capital of 16.9% increased in the second quarter from 16.0% in the first quarter of 2013 and Tier 1 Leverage Capital Ratio of 13.1% slightly decreased from 13.2% in the first quarter of 2013.
|
LOAN PORTFOLIO
|
||||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
June 30, 2013
|
March 31, 2013
|
June 30, 2012
|
||||||||||||||||||||||
Amount
|
Percent
|
Amount
|
Percent
|
Amount
|
Percent
|
|||||||||||||||||||
REAL ESTATE LOANS
|
||||||||||||||||||||||||
Commercial
|
$ | 34,762 | 12.2 | % | $ | 36,282 | 12.9 | % | $ | 30,829 | 12.4 | % | ||||||||||||
Construction and development
|
43,177 | 15.1 | 39,074 | 13.9 | 18,539 | 7.4 | ||||||||||||||||||
Home equity
|
15,356 | 5.4 | 15,627 | 5.5 | 14,949 | 6.0 | ||||||||||||||||||
One-to-four-family (held for sale
excluded)
|
16,366 | 5.7 | 13,465 | 4.7 | 11,560 | 4.6 | ||||||||||||||||||
Multi-family
|
4,145 | 1.4 | 2,247 | 0.8 | 1,854 | 0.8 | ||||||||||||||||||
Total real estate loans
|
113,806 | 39.8 | 106,695 | 37.8 | 77,731 | 31.2 | ||||||||||||||||||
CONSUMER LOANS
|
||||||||||||||||||||||||
Indirect home improvement
|
94,058 | 32.9 | 91,369 | 32.4 | 80,568 | 32.3 | ||||||||||||||||||
Recreational
|
20,520 | 7.2 | 18,750 | 6.7 | 28,065 | 11.3 | ||||||||||||||||||
Automobile
|
1,485 | 0.5 | 1,910 | 0.7 | 3,765 | 1.5 | ||||||||||||||||||
Home improvement
|
558 | 0.2 | 585 | 0.2 | 750 | 0.3 | ||||||||||||||||||
Other
|
1,309 | 0.5 | 1,338 | 0.5 | 1,504 | 0.6 | ||||||||||||||||||
Total consumer loans
|
117,930 | 41.3 | 113,952 | 40.5 | 114,652 | 46.0 | ||||||||||||||||||
COMMERCIAL BUSINESS LOANS
|
53,966 | 18.9 | 61,061 | 21.7 | 56,952 | 22.8 | ||||||||||||||||||
Total loans
|
285,702 | 100.0 | % | 281,708 | 100.0 | % | 249,335 | 100.0 | % | |||||||||||||||
Allowance for loan losses
|
(5,276 | ) | (5,044 | ) | (4,332 | ) | ||||||||||||||||||
Deferred cost, fees, and discounts, net
|
(15 | ) | (163 | ) | 199 | |||||||||||||||||||
Total loans receivable, net
|
$ | 280,411 | $ | 276,501 | $ | 245,202 |
DEPOSIT BREAKDOWN
(Dollars in thousands)
|
||||||||||||||||||||||||
June 30, 2013
|
March 31, 2013
|
June 30, 2012
|
||||||||||||||||||||||
Amount
|
Percent
|
Amount
|
Percent
|
Amount
|
Percent
|
|||||||||||||||||||
Interest-bearing checking
|
$ | 23,288 | 7.8 | % | $ | 22,579 | 7.7 | % | $ | 20,650 | 6.7 | % | ||||||||||||
Noninterest-bearing
checking
|
37,105 | 12.3 | 36,500 | 12.4 | 25,811 | 8.4 | ||||||||||||||||||
Savings
|
14,744 | 4.9 | 12,254 | 4.2 | 53,268 | 17.3 | ||||||||||||||||||
Money market
|
117,706 | 39.1 | 117,482 | 40.0 | 103,733 | 33.7 | ||||||||||||||||||
Certificates of deposits of
less than $100,000
|
41,806 | 13.9 | 39,358 | 13.4 | 41,651 | 13.6 | ||||||||||||||||||
Certificates of deposits of
$100,000 through $250,000
|
43,286 | 14.4 | 43,683 | 14.9 | 38,417 | 12.5 | ||||||||||||||||||
Certificates of deposits of
more than $250,000
|
22,978 | 7.6 | 21,925 | 7.4 | 23,840 | 7.8 | ||||||||||||||||||
Total
|
$ | 300,913 | 100 | % | $ | 293,781 | 100 | % | $ | 307,370 | 100 | % |
June 30,
|
March 31,
|
June 30,
|
||||||||||
2013
|
2013
|
2012
|
||||||||||
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
||||||||||
ASSETS
|
||||||||||||
Cash and due from banks
|
$ | 2,296 | $ | 1,354 | $ | 3,085 | ||||||
Interest-bearing deposits at other financial institutions
|
14,117 | 7,552 | 30,151 | |||||||||
Securities available-for-sale, at fair value
|
44,186 | 43,158 | 37,864 | |||||||||
Federal Home Loan Bank stock, at cost
|
1,733 | 1,749 | 1,797 | |||||||||
Loans held for sale
|
13,146 | 20,160 | 4,094 | |||||||||
Loans receivable, net
|
280,411 | 276,501 | 245,202 | |||||||||
Accrued interest receivable
|
1,292 | 1,328 | 1,129 | |||||||||
Premises and equipment, net
|
13,525 | 13,024 | 11,154 | |||||||||
Other real estate owned (“OREO”)
|
1,805 | 1,956 | 2,950 | |||||||||
Deferred tax asset
|
1,349 | 1,472 | -- | |||||||||
Other assets
|
5,002 | 3,317 | 3,485 | |||||||||
TOTAL ASSETS
|
$ | 378,862 | $ | 371,571 | $ | 340,911 | ||||||
LIABILITIES
|
||||||||||||
Deposits
|
||||||||||||
Interest-bearing accounts
|
$ | 263,808 | $ | 257,281 | $ | 281,559 | ||||||
Noninterest-bearing accounts
|
37,105 | 36,500 | 25,811 | |||||||||
Total deposits
|
300,913 | 293,781 | 307,370 | |||||||||
Borrowings
|
13,664 | 13,659 | 4,100 | |||||||||
Other liabilities
|
3,206 | 3,190 | 1,539 | |||||||||
Total liabilities
|
317,783 | 310,630 | 313,009 | |||||||||
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;
3,240,125 shares issued and outstanding at June 30, 2013,
and March 31, 2013, respectively and 0 shares at June 30, 2012
|
32 | 32 | -- | |||||||||
Additional paid-in capital
|
29,979 | 29,923 | -- | |||||||||
Retained earnings
|
33,917 | 32,981 | 27,349 | |||||||||
Accumulated other comprehensive income (loss)
|
(609 | ) | 311 | 553 | ||||||||
Unearned shares - Employee Stock Ownership Plan (“ESOP”)
|
(2,240 | ) | (2,306 | ) | -- | |||||||
Total stockholders’ equity
|
61,079 | 60,941 | 27,902 | |||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
|
$ | 378,862 | $ | 371,571 | $ | 340,911 |
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||||||||
2013
|
2012
|
2013
|
2012
|
|||||||||||||||
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|||||||||||||||
INTEREST INCOME
|
||||||||||||||||||
Loans receivable
|
$
|
5,233
|
$
|
4,341
|
$
|
10,171
|
$
|
8,475
|
||||||||||
Interest and dividends on investment
securities, and cash and cash equivalents
|
203
|
163
|
440
|
328
|
||||||||||||||
Total interest income
|
5,436
|
4,504
|
10,611
|
8,803
|
||||||||||||||
INTEREST EXPENSE
|
||||||||||||||||||
Deposits
|
464
|
569
|
936
|
1,172
|
||||||||||||||
Borrowings
|
48
|
44
|
87
|
90
|
||||||||||||||
Total interest expense
|
512
|
613
|
1,023
|
1,262
|
||||||||||||||
NET INTEREST INCOME
|
4,924
|
3,891
|
9,588
|
7,541
|
||||||||||||||
PROVISION FOR LOAN LOSSES
|
600
|
550
|
1,200
|
1,065
|
||||||||||||||
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES
|
4,324
|
3,341
|
8,388
|
6,476
|
||||||||||||||
NONINTEREST INCOME
|
||||||||||||||||||
Service charges and fee income
|
494
|
505
|
948
|
995
|
||||||||||||||
Gain on sale of loans
|
2,228
|
445
|
3,779
|
551
|
||||||||||||||
Gain on sale of investment securities
|
96
|
94
|
264
|
106
|
||||||||||||||
Other noninterest income
|
113
|
78
|
203
|
193
|
||||||||||||||
Total noninterest income
|
2,931
|
1,122
|
5,194
|
1,845
|
||||||||||||||
NONINTEREST EXPENSE
|
||||||||||||||||||
Salaries and benefits
|
3,135
|
1,864
|
5,612
|
3,561
|
||||||||||||||
Operations
|
759
|
624
|
1,517
|
1,131
|
||||||||||||||
Occupancy
|
385
|
314
|
702
|
603
|
||||||||||||||
Data processing
|
266
|
275
|
532
|
508
|
||||||||||||||
OREO fair value write-downs, net of
loss on sales
|
117
|
216
|
195
|
646
|
||||||||||||||
OREO expenses
|
16
|
64
|
38
|
98
|
||||||||||||||
Loan costs
|
345
|
198
|
645
|
337
|
||||||||||||||
Professional and board fees
|
333
|
166
|
563
|
303
|
||||||||||||||
FDIC insurance
|
67
|
56
|
123
|
119
|
||||||||||||||
Marketing and advertising
|
158
|
67
|
243
|
120
|
||||||||||||||
Impairment (recovery) on mortgage
servicing rights
|
22
|
(2)
|
(100)
|
(3)
|
||||||||||||||
Total noninterest expense
|
5,603
|
3,842
|
10,070
|
7,423
|
||||||||||||||
INCOME BEFORE PROVISION FOR INCOME
TAX
|
1,652
|
621
|
3,512
|
898
|
||||||||||||||
PROVISION FOR INCOME TAX
|
566
|
--
|
1,191
|
--
|
||||||||||||||
NET INCOME
|
$
|
1,086
|
$
|
621
|
$
|
2,321
|
$
|
898
|
||||||||||
Basic earnings per share
|
$
|
0.36
|
n/a(1)
|
$
|
0.77
|
n/a(1)
|
||||||||||||
Diluted earnings per share
|
$
|
0.36
|
n/a(1)
|
$
|
0.77
|
n/a(1)
|
KEY FINANCIAL RATIOS AND DATA
|
At or For the Three Months Ended
|
|||||||||||
(Dollars in thousands, except per share data) (Unaudited)
|
June 30,
|
March 31,
|
June 30,
|
|||||||||
2013
|
2013
|
2012
|
||||||||||
PERFORMANCE RATIOS:
|
||||||||||||
Return on average assets (ratio of net income to average total assets) (2)
|
1.15 | % | 1.37 | % | 0.81 | % | ||||||
Return on average equity (ratio of net income to average equity) (2)
|
7.17 | 8.29 | 8.91 | |||||||||
Yield on average interest-earning assets
|
6.04 | 6.04 | 6.21 | |||||||||
Rate paid on average interest-bearing liabilities
|
0.75 | 0.77 | 0.97 | |||||||||
Interest rate spread information:
|
||||||||||||
Average during period
|
5.29 | 5.27 | 5.24 | |||||||||
Net interest margin (2)
|
5.47 | 5.45 | 5.39 | |||||||||
Operating expense to average total assets (2)
|
5.94 | 4.94 | 5.00 | |||||||||
Average interest-earning assets to average interest-bearing liabilities
|
131.15 | 129.43 | 114.34 | |||||||||
Efficiency ratio (3)
|
71.33 | 64.49 | 76.64 |
At or For the Six Months Ended
|
||||||
June 30,
|
June 30,
|
|||||
2013
|
2012
|
|||||
PERFORMANCE RATIOS:
|
||||||
Return on average assets (ratio of net income to average total assets) (2)
|
1.26
|
%
|
0.60
|
%
|
||
Return on average equity (ratio of net income to average equity) (2)
|
7.72
|
6.50
|
||||
Yield on average interest-earning assets
|
6.04
|
6.26
|
||||
Rate paid on average interest-bearing liabilities
|
0.76
|
1.02
|
||||
Interest rate spread information:
|
||||||
Average during period
|
5.28
|
5.23
|
||||
Net interest margin (2)
|
5.46
|
5.42
|
||||
Operating expense to average total assets (2)
|
5.45
|
4.97
|
||||
Average interest-earning assets to average interest-bearing liabilities
|
130.31
|
113.94
|
||||
Efficiency ratio (3)
|
68.12
|
79.09
|
June 30,
|
March 31,
|
June 30,
|
||||||
2013
|
2013
|
2012
|
||||||
ASSET QUALITY RATIOS AND DATA:
|
||||||||
Non-performing assets to total assets at end of period (4)
|
1.10
|
%
|
1.02
|
%
|
1.38
|
%
|
||
Non-performing loans to total gross loans (5)
|
0.80
|
0.63
|
0.70
|
|||||
Allowance for loan losses to non-performing loans (5)
|
229.99
|
284.49
|
249.25
|
|||||
Allowance for loan losses to gross loans receivable
|
1.85
|
1.79
|
1.74
|
|||||
CAPITAL RATIOS, BANK ONLY:
|
||||||||
Tier 1 Leverage Capital
|
13.11
|
%
|
13.19
|
%
|
8.88
|
%
|
||
Tier 1 Risk-Based Capital
|
15.66
|
14.79
|
10.02
|
|||||
Total Risk-Based Capital
|
16.91
|
16.04
|
11.27
|
|||||
CAPITAL RATIOS, COMPANY ONLY:
|
||||||||
Tier 1 Leverage Capital
|
16.31
|
%
|
16.50
|
%
|
n/a
|
|||
Total Risk-Based Capital
|
20.74
|
19.76
|
n/a
|
|||||
BOOK VALUE:
|
||||||||
Book value per common share
|
$20.23
|
(6)
|
$20.22
|
(7)
|
n/a
|
(1)
|
(1)
|
Per share calculations are not available (n/a) as the Company completed its stock conversion and became a public company on July 9, 2012.
|
||
(2)
|
Annualized.
|
||
(3)
|
Total noninterest expense as a percentage of net interest income and total other noninterest income.
|
||
(4)
|
Non-performing assets consists of non-performing loans (which include non-accruing loans and accruing loans more than 90 days past due), foreclosed real estate and other repossessed assets.
|
||
(5)
|
Non-performing loans consists of non-accruing loans and accruing loans more than 90 days past due.
|
||
(6)
|
Book value per common share was calculated using all shares outstanding of 3,240,125 at June 30, 2013, less unallocated ESOP shares of 220,329.
|
||
(7)
|
Book value per common share was calculated using all shares outstanding of 3,240,125 at March 31, 2013, less unallocated ESOP shares of 226,809.
|