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 January 26, 2017
|
Date: January 26, 2017
|
FS BANCORP, INC.
|
|
|
|
/s/ Matthew D. Mullet
|
|
Matthew D. Mullet
|
|
Chief Financial Officer
(Principal Financial and Accounting Officer)
|
·
|
Net income of $2.5 million for the fourth quarter of 2016, compared to $3.5 million for the previous quarter, and an increase from $2.0 million for the fourth quarter one year ago;
|
·
|
Earnings per diluted share decreased to $0.86 for the fourth quarter of 2016, compared to $1.18 for the preceding quarter in 2016, and increased from $0.66 for the fourth quarter of 2015;
|
·
|
Total gross loans increased $1.2 million, or 0.2%, to $605.4 million at December 31, 2016, compared to $604.2 million at September 30, 2016, and increased $94.1 million, or 18.4%, from $511.3 million at December 31, 2015;
|
·
|
Relationship-based transactional deposits (noninterest-bearing checking, interest-bearing checking, and escrow accounts) increased $2.3 million, or 1.0%, to $219.0 million at December 31, 2016, from $216.8 million at September 30, 2016, and increased $112.7 million, or 106.0% from $106.3 million at December 31, 2015;
|
·
|
Net recoveries of prior loan charge-offs were $25,000 for the three months ended December 31, 2016, compared to net loan charge-offs of $54,000 for the three months ended December 31, 2015;
|
·
|
Net recoveries were $26,000 in 2016, compared to net loan charge-offs of $555,000 in 2015; and
|
·
|
Capital levels at the Bank were 13.9% for total risk-based capital and 10.3% for Tier 1 leverage capital at December 31, 2016, compared to 15.5% and 12.1% at December 31, 2015, respectively.
|
LOAN PORTFOLIO
|
||||||||||||||||||||||||
(Dollars in thousands)
|
December 31, 2016
|
September 30, 2016
|
December 31, 2015
|
|||||||||||||||||||||
Amount
|
Percent
|
Amount
|
Percent
|
Amount
|
Percent
|
|||||||||||||||||||
REAL ESTATE LOANS
|
||||||||||||||||||||||||
Commercial
|
$
|
55,871
|
9.2
|
%
|
$
|
55,794
|
9.2
|
%
|
$
|
50,034
|
9.8
|
%
|
||||||||||||
Construction and development
|
94,462
|
15.6
|
90,201
|
14.9
|
80,806
|
15.8
|
||||||||||||||||||
Home equity
|
20,081
|
3.3
|
19,649
|
3.3
|
16,540
|
3.2
|
||||||||||||||||||
One-to-four-family (excludes held for
|
||||||||||||||||||||||||
sale)
|
124,009
|
20.5
|
116,886
|
19.4
|
102,921
|
20.1
|
||||||||||||||||||
Multi-family
|
37,527
|
6.2
|
33,988
|
5.6
|
22,223
|
4.4
|
||||||||||||||||||
Total real estate loans
|
331,950
|
54.8
|
316,518
|
52.4
|
272,524
|
53.3
|
||||||||||||||||||
CONSUMER LOANS
|
||||||||||||||||||||||||
Indirect home improvement
|
107,759
|
17.8
|
104,524
|
17.3
|
103,064
|
20.2
|
||||||||||||||||||
Solar
|
36,503
|
6.1
|
34,806
|
5.8
|
29,226
|
5.7
|
||||||||||||||||||
Marine
|
28,549
|
4.7
|
29,268
|
4.8
|
23,851
|
4.7
|
||||||||||||||||||
Other consumer
|
1,915
|
0.3
|
1,978
|
0.3
|
2,181
|
0.4
|
||||||||||||||||||
Total consumer loans
|
174,726
|
28.9
|
170,576
|
28.2
|
158,322
|
31.0
|
||||||||||||||||||
COMMERCIAL BUSINESS LOANS
|
||||||||||||||||||||||||
Commercial and industrial
|
65,841
|
10.9
|
68,526
|
11.4
|
59,619
|
11.6
|
||||||||||||||||||
Warehouse
|
32,898
|
5.4
|
48,598
|
8.0
|
20,817
|
4.1
|
||||||||||||||||||
Total commercial business loans
|
98,739
|
16.3
|
117,124
|
19.4
|
80,436
|
15.7
|
||||||||||||||||||
Total loans receivable, gross
|
605,415
|
100.0
|
%
|
604,218
|
100.0
|
%
|
511,282
|
100.0
|
%
|
|||||||||||||||
Allowance for loan losses
|
(10,211
|
)
|
(9,586
|
)
|
(7,785
|
)
|
||||||||||||||||||
Deferred cost, fees, and discounts, net
|
(1,887
|
)
|
(1,832
|
)
|
(962
|
)
|
||||||||||||||||||
Total loans receivable, net
|
$
|
593,317
|
$
|
592,800
|
$
|
502,535
|
DEPOSIT BREAKDOWN
(Dollars in thousands)
|
||||||||||||||||||||||||
December 31, 2016
|
September 30, 2016
|
December 31, 2015
|
||||||||||||||||||||||
Amount
|
Percent
|
Amount
|
Percent
|
Amount
|
Percent
|
|||||||||||||||||||
Noninterest-bearing checking
|
$
|
143,236
|
20.1
|
%
|
$
|
143,251
|
20.4
|
%
|
$
|
66,676
|
13.8
|
%
|
||||||||||||
Interest-bearing checking
|
66,119
|
9.3
|
63,682
|
9.1
|
34,098
|
7.0
|
||||||||||||||||||
Savings
|
54,996
|
7.7
|
50,348
|
7.2
|
30,126
|
6.2
|
||||||||||||||||||
Money market
|
242,849
|
34.1
|
238,321
|
33.9
|
159,605
|
32.9
|
||||||||||||||||||
Certificates of deposit less
than $100,000
|
93,791
|
13.2
|
93,953
|
13.3
|
65,175
|
13.4
|
||||||||||||||||||
Certificates of deposit of
$100,000 through $250,000
|
74,832
|
10.5
|
76,855
|
10.9
|
91,317
|
18.8
|
||||||||||||||||||
Certificates of deposit of $250,000
and over
|
27,094
|
3.8
|
26,910
|
3.8
|
32,610
|
6.7
|
||||||||||||||||||
Escrow accounts related to
mortgages serviced
|
9,676
|
1.3
|
9,844
|
1.4
|
5,571
|
1.2
|
||||||||||||||||||
Total
|
$
|
712,593
|
100.0
|
%
|
$
|
703,164
|
100.0
|
%
|
$
|
485,178
|
100.0
|
%
|
December 31,
|
September 30,
|
December 31,
|
||||||||||
2016
|
2016
|
2015
|
||||||||||
Unaudited
|
Unaudited
|
Unaudited
|
||||||||||
ASSETS
|
||||||||||||
Cash and due from banks
|
$
|
3,590
|
$
|
3,445
|
$
|
1,708
|
||||||
Interest-bearing deposits at other financial institutions
|
32,866
|
13,068
|
22,747
|
|||||||||
Total cash and cash equivalents
|
36,456
|
16,513
|
24,455
|
|||||||||
Certificates of deposit at other financial institutions
|
15,248
|
14,009
|
12,421
|
|||||||||
Securities available-for-sale, at fair value
|
81,875
|
80,762
|
55,217
|
|||||||||
Loans held for sale, at fair value
|
52,553
|
77,129
|
44,925
|
|||||||||
Loans receivable, net
|
593,317
|
592,800
|
502,535
|
|||||||||
Accrued interest receivable
|
2,524
|
2,557
|
2,107
|
|||||||||
Premises and equipment, net
|
16,012
|
15,071
|
13,856
|
|||||||||
Federal Home Loan Bank ("FHLB") stock, at cost
|
2,719
|
2,004
|
4,551
|
|||||||||
Bank owned life insurance ("BOLI"), net
|
10,054
|
9,983
|
9,772
|
|||||||||
Servicing rights, held at the lower of cost or fair value
|
8,459
|
7,654
|
5,811
|
|||||||||
Goodwill
|
2,312
|
2,312
|
—
|
|||||||||
Core deposit intangible, net
|
1,717
|
1,857
|
—
|
|||||||||
Other assets
|
4,680
|
4,835
|
1,911
|
|||||||||
TOTAL ASSETS
|
$
|
827,926
|
$
|
827,486
|
$
|
677,561
|
||||||
LIABILITIES
|
||||||||||||
Deposits:
|
||||||||||||
Noninterest-bearing accounts
|
$
|
152,913
|
$
|
153,095
|
$
|
72,247
|
||||||
Interest-bearing accounts
|
559,680
|
550,069
|
412,931
|
|||||||||
Total deposits
|
712,593
|
703,164
|
485,178
|
|||||||||
Borrowings
|
12,670
|
21,030
|
98,769
|
|||||||||
Subordinated note:
|
||||||||||||
Principal amount
|
10,000
|
10,000
|
10,000
|
|||||||||
Unamortized debt issuance costs
|
(175
|
)
|
(180
|
)
|
(195
|
)
|
||||||
Total subordinated note less unamortized debt issuance costs
|
9,825
|
9,820
|
9,805
|
|||||||||
Deferred tax liability, net
|
1,161
|
1,944
|
1,293
|
|||||||||
Other liabilities
|
10,644
|
11,971
|
7,176
|
|||||||||
Total liabilities
|
746,893
|
747,929
|
602,221
|
|||||||||
COMMITMENTS AND CONTINGENCIES
|
||||||||||||
STOCKHOLDERS' EQUITY
|
||||||||||||
Preferred stock, $0.01 par value; 5,000,000 shares
|
||||||||||||
authorized; none issued or outstanding
|
—
|
—
|
—
|
|||||||||
Common stock, $0.01 par value; 45,000,000 shares authorized;
|
||||||||||||
3,059,503 shares issued and outstanding at December 31,2016,
|
||||||||||||
3,057,753 at September 30, 2016, and 3,242,120 at December 31,
|
||||||||||||
2015
|
31
|
31
|
32
|
|||||||||
Additional paid-in capital
|
27,334
|
26,866
|
30,692
|
|||||||||
Retained earnings
|
55,584
|
53,326
|
46,175
|
|||||||||
Accumulated other comprehensive (loss) income, net of tax
|
(536
|
)
|
773
|
78
|
||||||||
Unearned shares - Employee Stock Ownership Plan ("ESOP")
|
(1,380
|
)
|
(1,439
|
)
|
(1,637
|
)
|
||||||
Total stockholders' equity
|
81,033
|
79,557
|
75,340
|
|||||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
$
|
827,926
|
$
|
827,486
|
$
|
677,561
|
|
Three Months Ended
December 31,
|
Year Ended
December 31,
|
||||||||||||||
|
2016
|
2015
|
2016
|
2015
|
||||||||||||
Unaudited
|
Unaudited
|
Unaudited
|
Unaudited
|
|||||||||||||
INTEREST INCOME
|
||||||||||||||||
Loans receivable including fees
|
$
|
9,758
|
$
|
8,376
|
$
|
35,772
|
$
|
30,418
|
||||||||
Interest and dividends on investment securities,
cash and cash equivalents, and certificates of
deposit at other financial institutions
|
498
|
414
|
2,248
|
1,289
|
||||||||||||
Total interest and dividend income
|
10,256
|
8,790
|
38,020
|
31,707
|
||||||||||||
INTEREST EXPENSE
|
||||||||||||||||
Deposits
|
844
|
804
|
3,254
|
3,229
|
||||||||||||
Borrowings
|
49
|
77
|
226
|
285
|
||||||||||||
Subordinated note
|
171
|
157
|
683
|
144
|
||||||||||||
Total interest expense
|
1,064
|
1,038
|
4,163
|
3,658
|
||||||||||||
NET INTEREST INCOME
|
9,192
|
7,752
|
33,857
|
28,049
|
||||||||||||
PROVISION FOR LOAN LOSSES
|
600
|
450
|
2,400
|
2,250
|
||||||||||||
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES
|
8,592
|
7,302
|
31,457
|
25,799
|
||||||||||||
NONINTEREST INCOME
|
||||||||||||||||
Service charges and fee income
|
903
|
524
|
3,391
|
1,977
|
||||||||||||
Gain on sale of loans
|
4,335
|
3,107
|
19,058
|
14,672
|
||||||||||||
Gain on sale of investment securities
|
—
|
—
|
146
|
76
|
||||||||||||
Earnings on cash surrender value of BOLI
|
71
|
71
|
282
|
216
|
||||||||||||
Other noninterest income
|
135
|
166
|
692
|
652
|
||||||||||||
Total noninterest income
|
5,444
|
3,868
|
23,569
|
17,593
|
||||||||||||
NONINTEREST EXPENSE
|
||||||||||||||||
Salaries and benefits
|
5,472
|
4,271
|
21,982
|
16,732
|
||||||||||||
Operations
|
1,779
|
1,167
|
6,000
|
4,376
|
||||||||||||
Occupancy
|
629
|
479
|
2,404
|
1,867
|
||||||||||||
Data processing
|
558
|
441
|
2,134
|
1,573
|
||||||||||||
Gain on sale of OREO
|
—
|
—
|
(150
|
)
|
—
|
|||||||||||
Loan costs
|
716
|
417
|
2,505
|
1,547
|
||||||||||||
Professional and board fees
|
453
|
390
|
1,943
|
1,658
|
||||||||||||
Federal Deposit Insurance Corporation insurance
|
182
|
77
|
487
|
305
|
||||||||||||
Marketing and advertising
|
157
|
251
|
710
|
709
|
||||||||||||
Acquisition costs
|
—
|
444
|
389
|
876
|
||||||||||||
Amortization of core deposit intangible
|
140
|
—
|
522
|
—
|
||||||||||||
Recovery on servicing rights
|
(1
|
)
|
—
|
(3
|
)
|
—
|
||||||||||
Total noninterest expense
|
10,085
|
7,937
|
38,923
|
29,643
|
||||||||||||
INCOME BEFORE PROVISION FOR
INCOME TAXES |
3,951
|
3,233
|
16,103
|
13,749
|
||||||||||||
PROVISION FOR INCOME TAXES
|
1,405
|
1,217
|
5,604
|
4,873
|
||||||||||||
NET INCOME
|
$
|
2,546
|
$
|
2,016
|
$
|
10,499
|
$
|
8,876
|
||||||||
Basic earnings per share
|
$
|
0.89
|
$
|
0.67
|
$
|
3.63
|
$
|
2.98
|
||||||||
Diluted earnings per share
|
$
|
0.86
|
$
|
0.66
|
$
|
3.51
|
$
|
2.93
|
KEY FINANCIAL RATIOS AND DATA (Unaudited)
|
||||||||||||
(Dollars in thousands, except per share amounts)
|
At or For the Three Months Ended
|
|||||||||||
PERFORMANCE RATIOS:
|
December 31,
2016 |
September 30,
2016 |
December 31,
2015 |
|||||||||
Return on assets (ratio of net income to average total assets) (1)
|
1.23
|
%
|
1.71
|
%
|
1.23
|
%
|
||||||
Return on equity (ratio of net income to average equity) (1)
|
12.92
|
18.08
|
10.90
|
|||||||||
Yield on average interest-earning assets
|
5.20
|
5.09
|
5.61
|
|||||||||
Interest incurred on liabilities as a percentage of average
|
||||||||||||
noninterest bearing deposits and interest-bearing liabilities
|
0.58
|
0.57
|
0.72
|
|||||||||
Interest rate spread information – average during period
|
4.62
|
4.52
|
4.89
|
|||||||||
Net interest margin (1)
|
4.66
|
4.55
|
4.95
|
|||||||||
Operating expense to average total assets
|
4.86
|
5.11
|
4.83
|
|||||||||
Average interest-earning assets to average interest-bearing
|
||||||||||||
liabilities
|
135.05
|
135.98
|
125.51
|
|||||||||
Efficiency ratio (2)
|
68.91
|
64.46
|
68.30
|
At or For the Year Ended
|
||||||||
PERFORMANCE RATIOS:
|
December 31,
2016
|
December 31,
2015
|
||||||
Return on assets (ratio of net income to average total assets) (1)
|
1.31
|
%
|
1.52
|
%
|
||||
Return on equity (ratio of net income to average equity) (1)
|
13.84
|
12.73
|
||||||
Yield on average interest-earning assets
|
4.99
|
5.67
|
||||||
Interest incurred on liabilities as a percentage of average
|
||||||||
noninterest bearing deposits and interest-bearing liabilities
|
0.59
|
0.72
|
||||||
Interest rate spread information – average during period
|
4.40
|
4.84
|
||||||
Net interest margin
|
4.44
|
5.01
|
||||||
Operating expense to average total assets
|
4.87
|
5.07
|
||||||
Average interest-earning assets to average interest-bearing
|
||||||||
liabilities
|
135.60
|
127.09
|
||||||
Efficiency ratio (2)
|
67.78
|
64.95
|
||||||
ASSET QUALITY RATIOS AND DATA:
|
December 31,
2016
|
September 30,
2016
|
December 31,
2015
|
|||||||||
Non-performing assets to total assets at end of period (3)
|
0.09
|
%
|
0.07
|
%
|
0.15
|
%
|
||||||
Non-performing loans to total gross loans (4)
|
0.12
|
0.10
|
0.20
|
|||||||||
Allowance for loan losses to non-performing loans (4)
|
1,387.36
|
1,613.80
|
765.49
|
|||||||||
Allowance for loan losses to gross loans receivable
|
1.69
|
1.59
|
1.52
|
|||||||||
CAPITAL RATIOS, BANK ONLY:
|
||||||||||||
Tier 1 leverage-based capital
|
10.33
|
%
|
10.33
|
%
|
12.14
|
%
|
||||||
Tier 1 risk-based capital
|
12.62
|
12.21
|
14.26
|
|||||||||
Total risk-based capital
|
13.87
|
13.46
|
15.51
|
|||||||||
Common equity Tier 1 capital
|
12.62
|
12.21
|
14.26
|
|||||||||
CAPITAL RATIOS, COMPANY ONLY:
|
||||||||||||
Tier 1 leverage-based capital
|
9.52
|
%
|
9.38
|
%
|
11.56
|
%
|
||||||
Total risk-based capital
|
12.88
|
12.39
|
14.90
|
|||||||||
Common equity Tier 1 capital
|
11.63
|
11.14
|
13.64
|
At or For the Three Months Ended
|
||||||||||||
PER COMMON SHARE DATA:
|
December 31,
2016 |
September 30,
2016 |
December 31,
2015 |
|||||||||
Basic earnings per share
|
$
|
0.89
|
$
|
1.21
|
$
|
0.67
|
||||||
Diluted earnings per share
|
$
|
0.86
|
$
|
1.18
|
$
|
0.66
|
||||||
Weighted average basic shares outstanding
|
2,860,260
|
2,851,147
|
2,991,225
|
|||||||||
Weighted average diluted shares outstanding
|
2,975,963
|
2,938,439
|
3,074,048
|
|||||||||
Common shares outstanding at period end
|
2,861,135
|
(5)
|
2,852,905
|
(6)
|
2,991,910
|
(7)
|
||||||
Book value per share using outstanding common shares
|
$
|
28.32
|
$
|
27.89
|
$
|
25.18
|
||||||
Tangible book value per share using outstanding common shares (8)
|
$
|
26.91
|
$
|
26.42
|
$
|
25.18
|
||||||
(1)
|
Annualized.
|
||
(2)
|
Total noninterest expense as a percentage of net interest income and total other noninterest income.
|
||
(3)
|
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.
|
||
(4)
|
Non-performing loans consists of non-accruing loans.
|
||
(5)
|
Common shares were calculated using shares outstanding of 3,059,503 at December 31, 2016, less 68,763 restricted stock shares, and 129,605 unallocated ESOP shares.
|
||
(6)
|
Common shares were calculated using shares outstanding of 3,057,753 at September 30, 2016, less 68,763 restricted stock shares, and 136,085 unallocated ESOP shares.
|
||
(7)
|
Common shares were calculated using shares outstanding at period end of 3,242,120 at December 31, 2015, less 94,684 restricted stock shares, and 155,526 unallocated ESOP shares.
|
||
(8)
|
Tangible book value per share using outstanding common shares excludes intangible assets. This ratio represents a non-GAAP financial measure. See also Non-GAAP Financial Measures reconciliation in the table below.
|
December 31,
2016
|
September 30,
2016
|
December 31,
2015
|
||||||||||
(Dollars in thousands)
|
||||||||||||
Stockholders' equity
|
$
|
81,033
|
$
|
79,557
|
$
|
75,340
|
||||||
Less: Goodwill and core deposit intangible
|
4,029
|
4,169
|
—
|
|||||||||
Tangible common stockholders' equity
|
$
|
77,004
|
$
|
75,388
|
$
|
75,340
|
||||||
Common shares outstanding at end of period
|
2,861,135
|
2,852,905
|
2,991,910
|
|||||||||
Common stockholders' equity (book value) per share (GAAP)
|
$
|
28.32
|
$
|
27.89
|
$
|
25.18
|
||||||
Tangible common stockholders' equity (tangible book value) per share
(non-GAAP)
|
$
|
26.91
|
$
|
26.42
|
$
|
25.18
|
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