FS Bancorp, Inc. (NASDAQ:FSBW) issued a press release on July 26,
2018 announcing its 2018 second quarter results. FS Bancorp,
Inc. seeks to correct that its basic and diluted earnings per share
for the six months ended June 30, 2018 included in the
Consolidated Statements of Income were $2.40 and $2.28, rather than
what was previously reported as $2.39 and $2.27, respectively.
The corrected release reads as follows:
FS Bancorp, Inc. (NASDAQ:FSBW) (the “Company”), the
holding company for 1st Security Bank of Washington (the “Bank”)
today reported 2018 second quarter net income of $4.3 million and
quarterly loan growth of 9.3% which contributed to the increase in
assets to $1.1 billion at June 30, 2018. Second quarter
earnings per diluted share were $1.13 and includes a 19.7% increase
in net interest income over the comparable quarter one year
ago.
“We experienced exceptional loan growth in the second quarter as
a result of our new production employees and strength of our
historical lending teams, helping drive profitability,” stated Joe
Adams, CEO of FS Bancorp, Inc.
“We are also pleased with the proposed merger of the Company and
Anchor Bancorp ('Anchor') (NASDAQ:ANCB) that was announced on July
17, 2018. The combined company will have approximately $1.5 billion
in assets, $1.2 billion in deposits, 22 branch offices throughout
Western Washington, and eight loan production offices in Washington
State.” CEO Adams added, “Our lending growth combined with
our acquisition of Anchor and the franchise’s long standing history
of banking in the communities served will strengthen and build upon
our presence in Western Washington and is consistent with our
business strategy to appropriately utilize capital and increase
operating efficiency and profitability to enhance our banking
franchise for the benefit of both our shareholders and the
communities we serve.”
CFO of FS Bancorp, Inc. Matthew Mullet also noted, “Our Board of
Directors has approved our twenty-second quarterly cash dividend of
$0.14 per share for the second quarter.” The dividend will be
paid on August 23, 2018, to shareholders of record as of August 8,
2018.
2018 Second Quarter Highlights
- Total gross loans increased $76.1 million during the quarter,
or 9.3%, to $893.8 million at June 30, 2018, compared to $817.7
million at March 31, 2018, and increased $173.5 million, or 24.1%,
from $720.3 million at June 30, 2017;
- Announced the signing of a definitive agreement with Anchor
which is projected to provide additional operating leverage as well
as access to additional core funding growth;
- Net income was $4.3 million for both the first and second
quarters of 2018, compared to $4.4 million in the second quarter
one year ago;
- Deposits increased $12.6 million, to $870.1 million at June 30,
2018, from $857.5 million at March 31, 2018, and increased
$84.4 million, from $785.7 million at June 30, 2017; and
- Capital levels at the Bank increased to 15.6% for total
risk-based capital and 12.2% for Tier 1 leverage capital at June
30, 2018, compared to 13.2% and 10.1% at June 30, 2017,
respectively.
Proposed Acquisition of Anchor Bancorp
On July 17, 2018, the Company entered into a
definitive agreement (the “Agreement”) with Anchor Bancorp pursuant
to which Anchor will be merged with and into the Company, and
immediately thereafter Anchor’s bank subsidiary, Anchor Bank, will
be merged with and into the Bank. Under terms of the Agreement,
Anchor shareholders will receive 0.2921 shares of FS Bancorp common
stock and $12.40 in cash for each share of Anchor common stock. FS
Bancorp will pay aggregate consideration of 725,585 shares of FS
Bancorp common stock and $30.8 million in cash or approximately
$77.0 million in aggregate, including the value of outstanding
shares of Anchor restricted stock.
In the event the Agreement is terminated under
certain specified circumstances in connection with a competing
transaction, Anchor will be required to pay the Company a
termination fee of $2.7 million in cash. The proposed transaction
is subject to customary closing conditions, including the receipt
of regulatory approvals and approval of the Agreement by the
shareholders of Anchor, and is expected to be completed in either
the fourth quarter of 2018 or early in the first quarter of
2019.
Balance Sheet and Credit Quality
Total assets increased $88.9 million, or 8.5%, to $1.1 billion
at June 30, 2018, compared to $1.0 billion at March 31, 2018,
and increased $204.0 million, or 22.0%, from $928.6 million at June
30, 2017. The quarter over linked quarter increase of $88.9
million in total assets included increases in loans receivable, net
of $75.6 million, securities available-for-sale (“AFS”) of $7.1
million, loans held for sale (“HFS”) of $3.9 million, and Federal
Home Loan Bank (“FHLB”) stock of $3.4 million, partially offset by
a decrease in total cash and cash equivalents of $3.7 million.
The year-to-date (“YTD”) over YTD increase of $204.0 million
in total assets included increases in loans receivable, net of
$172.1 million, securities AFS of $19.5 million, total cash and
cash equivalents of $4.2 million, FHLB stock of $3.8 million,
servicing rights of $3.5 million, bank owned life insurance
(“BOLI”) of $3.3 million, and accrued interest receivable of $1.2
million, partially offset by a decrease in loans HFS of $2.1
million, and other assets of $1.4 million. These increases in
assets YTD over YTD were primarily funded by growth in deposits and
short-term overnight FHLB borrowings.
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LOAN
PORTFOLIO |
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(Dollars in
thousands) |
June 30, 2018 |
|
March 31, 2018 |
|
June 30, 2017 |
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|
Amount |
|
Percent |
|
Amount |
|
Percent |
|
Amount |
|
Percent |
|
REAL ESTATE
LOANS |
|
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|
|
|
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|
Commercial |
$ |
64,599 |
|
|
7.2 |
% |
$ |
61,956 |
|
|
7.6 |
% |
$ |
57,997 |
|
|
8.0 |
% |
Construction and development |
|
160,521 |
|
|
18.0 |
|
|
143,611 |
|
|
17.5 |
|
|
119,455 |
|
|
16.6 |
|
Home
equity |
|
25,460 |
|
|
2.9 |
|
|
23,563 |
|
|
2.9 |
|
|
22,450 |
|
|
3.1 |
|
One-to-four-family (excludes HFS) |
|
177,988 |
|
|
19.9 |
|
|
165,030 |
|
|
20.2 |
|
|
154,826 |
|
|
21.5 |
|
Multi-family |
|
47,695 |
|
|
5.3 |
|
|
52,431 |
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|
6.4 |
|
|
42,967 |
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|
6.0 |
|
Total
real estate loans |
|
476,263 |
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|
53.3 |
|
|
446,591 |
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|
54.6 |
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|
397,695 |
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55.2 |
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CONSUMER
LOANS |
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Indirect
home improvement |
|
147,067 |
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16.5 |
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|
136,946 |
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16.8 |
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|
117,926 |
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16.4 |
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Solar |
|
42,189 |
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4.7 |
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|
41,581 |
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5.1 |
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|
38,507 |
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5.3 |
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Marine |
|
48,591 |
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5.4 |
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38,451 |
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4.7 |
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|
32,254 |
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4.5 |
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Other
consumer |
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2,027 |
|
|
0.2 |
|
|
1,951 |
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0.2 |
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|
2,042 |
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0.3 |
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Total
consumer loans |
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239,874 |
|
|
26.8 |
|
|
218,929 |
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26.8 |
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|
190,729 |
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26.5 |
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COMMERCIAL
BUSINESS LOANS |
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Commercial and industrial |
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110,962 |
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12.4 |
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104,612 |
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12.8 |
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92,713 |
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12.9 |
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Warehouse
lending |
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66,681 |
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7.5 |
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47,563 |
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5.8 |
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|
39,165 |
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5.4 |
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Total
commercial business loans |
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177,643 |
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19.9 |
|
|
152,175 |
|
|
18.6 |
|
|
131,878 |
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|
18.3 |
|
Total
loans receivable, gross |
|
893,780 |
|
|
100.0 |
% |
|
817,695 |
|
|
100.0 |
% |
|
720,302 |
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100.0 |
% |
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Allowance
for loan losses |
|
(11,571 |
) |
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(11,140 |
) |
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(10,143 |
) |
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Deferred
costs and fees, net |
|
(2,885 |
) |
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(2,760 |
) |
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(2,445 |
) |
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Premiums
on purchased loans |
|
1,876 |
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1,837 |
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1,388 |
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Total
loans receivable, net |
$ |
881,200 |
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$ |
805,632 |
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$ |
709,102 |
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Loans receivable, net increased $75.6 million to $881.2 million
at June 30, 2018, from $805.6 million at March 31, 2018, and
increased $172.1 million from $709.1 million at June 30,
2017. During the second quarter, real estate loans increased
$29.7 million, including increases in construction and development
loans of $16.9 million, one-to-four-family portfolio loans of $13.0
million, commercial loans of $2.6 million, and home equity loans of
$1.9 million, partially offset by a decrease of $4.7 million in
multi-family loans. Commercial business loans increased $25.5
million, mostly due to an increase in warehouse lending of $19.1
million and $6.4 million of commercial and industrial loans of
which $4.4 million was associated with the purchase of the
guaranteed portion of U.S. Department of Agriculture loans.
Consumer loans increased $20.9 million, primarily due to the $10.1
million growth in each of our indirect home improvement and marine
loan portfolios.
One-to-four-family loans originated through the home lending
segment which includes loans HFS, loans held for investment, fixed
seconds, and loans brokered to other institutions increased $22.0
million, or 12.9%, to $192.2 million during the quarter ended June
30, 2018, compared to $170.2 million for the preceding quarter, and
decreased from $216.8 million for the same quarter one year ago.
During the six months ended June 30, 2018, originations of
one-to-four-family loans to purchase a home (purchase production)
decreased by $3.9 million, or 1.4% with $274.7 million in loan
purchase production closing, down from $278.6 million for the six
months ended June 30, 2017. One-to-four-family loan
originations for refinance (refinance production) increased $8.5
million, or 10.9% during the six months ended June 30, 2018, with
$86.7 million in refinance production closing, up from $78.2
million for the six months ended June 30, 2017. During the
quarter ended June 30, 2018, the Company sold $160.6 million of
one-to-four-family loans HFS, compared to sales of $155.0 million
for the preceding quarter, and sales of $171.0 million for the same
quarter one year ago.
Purchase production was 81.5% of the total one-to-four-family
loan originations versus 18.5% for refinance production during the
second quarter of 2018, compared to 81.1% in purchase production
versus 18.9% in refinance production during the same period in
2017. The slight increase in purchase production reflects the
appreciation in home values in our markets and continued strong
home purchase demand in the Pacific Northwest and the slight
decrease in refinance production reflects increasing market
interest rates.
The allowance for loan losses at June 30, 2018 increased to
$11.6 million, or 1.3% of gross loans receivable, excluding loans
HFS, compared to $11.1 million, or 1.4% of gross loans receivable,
excluding loans HFS at March 31, 2018, and $10.1 million, or 1.4%
of gross loans receivable, excluding loans HFS, at June 30,
2017. Non-performing loans, consisting solely of non-accruing
loans, decreased to $627,000 at June 30, 2018, from $720,000 at
March 31, 2018, and $754,000 at June 30, 2017. Substandard
loans decreased to $5.8 million at June 30, 2018, compared to $6.0
million at March 31, 2018, and $8.5 million at June 30, 2017.
The $2.7 million decrease in substandard loans from one year ago
was primarily due to the sale of a shared national credit of $1.9
million in the third quarter of 2017. There was no other real
estate owned at June 30, 2018, March 31, 2018, or June 30, 2017,
respectively.
Total deposits were $870.1 million at June 30, 2018, compared to
$857.5 million at March 31, 2018, and $785.7 million at June 30,
2017. Relationship-based transactional deposits
(noninterest-bearing checking, interest-bearing checking, and
escrow accounts) decreased $7.9 million, from March 31, 2018, and
increased $53.7 million, from June 30, 2017. Money market and
savings accounts decreased $3.1 million from March 31, 2018, and
$47.2 million from June 30, 2017, primarily occurring from
increased market interest rate competition and more attractive time
deposit rates. Time deposits increased $23.6 million, from
March 31, 2018, and increased $77.9 million, from June 30,
2017.
Non-retail certificates of deposit which includes brokered
certificates of deposit, online certificates of deposit, and public
funds increased $3.4 million from March 31, 2018, primarily due to
a $9.1 million increase in brokered certificates of deposit, mostly
offset by a $5.7 million decrease in online certificates of
deposit. The $32.9 million increase from $54.7 million at June 30,
2017 reflects a $41.9 million increase in brokered certificates of
deposit, partially offset by an $8.8 million decrease in online
certificates of deposit. Management remains focused on
increasing our lower cost relationship-based deposits to fund
long-term asset growth.
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DEPOSIT
BREAKDOWN |
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(Dollars in
thousands) |
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June 30, 2018 |
|
March 31, 2018 |
|
June 30, 2017 |
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Amount |
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Percent |
|
Amount |
|
Percent |
|
Amount |
|
Percent |
|
Noninterest-bearing
checking |
|
$ |
172,848 |
|
19.9 |
% |
$ |
177,251 |
|
20.7 |
% |
$ |
156,177 |
|
19.9 |
% |
Interest-bearing
checking |
|
|
128,080 |
|
14.7 |
|
|
130,002 |
|
15.2 |
|
|
91,197 |
|
11.6 |
|
Savings |
|
|
77,631 |
|
8.9 |
|
|
76,843 |
|
9.0 |
|
|
73,922 |
|
9.4 |
|
Money market |
|
|
210,742 |
|
24.2 |
|
|
214,676 |
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25.0 |
|
|
261,658 |
|
33.3 |
|
Certificates of deposit
less than $100,000 |
|
|
144,755 |
|
16.7 |
|
|
129,778 |
|
15.1 |
|
|
93,142 |
|
11.9 |
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Certificates of deposit
of $100,000 through $250,000 |
|
|
79,131 |
|
9.1 |
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|
73,934 |
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8.6 |
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|
70,204 |
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8.9 |
|
Certificates of deposit
of $250,000 and over |
|
|
45,417 |
|
5.2 |
|
|
41,944 |
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4.9 |
|
|
28,010 |
|
3.6 |
|
Escrow accounts related
to mortgages serviced |
|
|
11,509 |
|
1.3 |
|
|
13,050 |
|
1.5 |
|
|
11,387 |
|
1.4 |
|
Total |
|
$ |
870,113 |
|
100.0 |
% |
$ |
857,478 |
|
100.0 |
% |
$ |
785,697 |
|
100.0 |
% |
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At June 30, 2018, borrowings increased $67.0 million, or 169.5%,
to $106.5 million, from $39.5 million at March 31, 2018, and
increased $75.9 million, or 247.3%, from $30.7 million at June 30,
2017. The quarter over linked quarter increase reflects the use of
short-term overnight FHLB borrowings to support loan growth.
Total stockholders’ equity increased $3.9 million, to $129.4
million at June 30, 2018, from $125.4 million at March 31,
2018, and increased $40.5 million, from $88.8 million at June 30,
2017. The increase in stockholders’ equity from the first
quarter of 2018 was primarily due to net income of $4.3 million,
partially offset by an increase in accumulated other comprehensive
loss, net of tax of $411,000. The $40.5 million increase from the
second quarter of 2017 was significantly impacted by net proceeds
of $25.6 million received in the third quarter of 2017 due to an
issuance and sale of common stock through our underwritten public
offering as previously reported. Book value per common share was
$35.94 at June 30, 2018, compared to $35.21 at March 31, 2018, and
$30.40 at June 30, 2017.
The Bank is well capitalized under the minimum capital
requirements established by the FDIC with a total risk-based
capital ratio of 15.6%, a Tier 1 leverage capital ratio of 12.2%,
and a common equity Tier 1 (“CET1”) capital ratio of 14.3% at June
30, 2018. At June 30, 2017, the total risk-based capital
ratio was 13.2%, the Tier 1 leverage capital ratio was 10.1%, and
the CET1 capital ratio was 12.0%.
The Company exceeded all regulatory capital requirements with a
total risk-based capital ratio of 15.2%, a Tier 1 leverage capital
ratio of 11.9%, and a CET1 ratio of 13.9% at June 30, 2018,
compared to 12.5%, 9.5%, and 11.2%, respectively, at June 30,
2017.
Operating Results
Net interest income increased $2.0 million, to $11.9 million for
the three months ended June 30, 2018, from $10.0 million for the
three months ended June 30, 2017, primarily attributable to a $2.7
million increase in loans receivable interest income, partially
offset by a $536,000 increase in deposit interest expense due to
continued overall growth in interest-bearing deposits with higher
market interest rates paid on new interest-bearing deposits, and a
$390,000 increase in interest expense mostly from the use of FHLB
borrowings to support loan growth. Net interest income increased
$4.5 million, to $23.4 million for the six months ended June 30,
2018, from $18.9 million for the six months ended June 30, 2017,
mostly due to a $5.6 million increase in interest income on loans
receivable, partially offset by a $927,000 increase in interest
expense on deposits and a $431,000 increase in interest expense on
borrowings.
The net interest margin (“NIM”) decreased five basis points to
4.58% for the three months ended June 30, 2018, from 4.63% for the
same period in the prior year, and increased seven basis points to
4.66% for the six months ended June 30, 2018, from 4.59% for the
six months ended June 30, 2017. The quarter over quarter
decrease in NIM was driven primarily by growth in higher cost
market rate time deposits and increased borrowings to fund loan
growth, and the year over year increase in NIM was mostly driven by
substantial growth in higher yielding loans. The average cost
of funds increased 31 basis points to 0.89% for the three months
ended June 30, 2018, from 0.58% for the three and six months ended
June 30, 2017, and increased 21 basis points to 0.79% for the six
months ended June 30, 2018. This increase was primarily
related to growth in time deposits and an increase in short-term
overnight FHLB borrowings at higher market interest rates.
Management remains focused on matching deposit/liability duration
with the duration of loans/assets where appropriate.
For the three and six months ended June 30, 2018, the provision
for loan losses was $450,000 and $800,000, respectively, due to
continued loan growth, compared to no provision recorded for the
three and six months ended June 30, 2017. During the three months
ended June 30, 2018, net charge-offs totaled $19,000, compared to
$4,000 during the three months ended June 30, 2017. Net recoveries
totaled $15,000 during the six months ended June 30, 2018, compared
to net charge-offs of $68,000 during the six months ended June 30,
2017.
Noninterest income decreased $1.3 million, to $5.6 million for
the three months ended June 30, 2018, from $7.0 million for the
three months ended June 30, 2017. The decrease during the
period reflects a $958,000 reduction in non-recurring gain on sale
of mortgage servicing rights, and a $333,000 reduction in service
charges and fee income primarily associated with the sale of
servicing assets in the second quarter of 2017, and a $237,000
reduction in gain on sale of investment securities, partially
offset by a $211,000 increase in gain on sale of loans.
Noninterest income decreased $1.7 million, to $10.6 million for the
six months ended June 30, 2018, from $12.4 million for the six
months ended June 30, 2017. The decrease during the period
was primarily due to reductions of $958,000 in non-recurring gain
on sale of mortgage servicing rights and $535,000 in service
charges and fee income as described above, a $166,000 reduction in
gain on sale of loans, and a $124,000 reduction in gain on sale of
investment securities.
Noninterest expense increased $1.2 million, to $12.1 million for
the three months ended June 30, 2018, from $10.9 million for the
three months ended June 30, 2017. The increase in noninterest
expense was the result of a $755,000 increase in salaries and
benefits, which included a $401,000 decrease in incentives and
commissions due in part to the reduction of homes available for
sale in the Pacific Northwest, a $161,000 increase in loan costs, a
$98,000 increase in operations expense, an $86,000 increase in data
processing, and a $61,000 increase in professional and board fees.
Noninterest expense increased $1.9 million, to $23.2 million for
the six months ended June 30, 2018, from $21.3 million for the six
months ended June 30, 2017. The increase in noninterest
expense was primarily a result of a $1.7 million increase in
salaries and benefits, which included a $381,000 increase in
incentives and commissions, and a $159,000 increase in data
processing.
About FS Bancorp
FS Bancorp, Inc., a Washington corporation, is the holding
company for 1st Security Bank of Washington. The Bank
provides loan and deposit services to customers who are
predominantly small and middle-market businesses and individuals in
Western Washington through its 13 bank branches, including the
newly opened Silverdale branch on April 12, 2018, and seven loan
production offices in various suburban communities in the greater
Puget Sound area, and one loan production office in the market area
of the Tri-Cities, Washington. The Bank services home
mortgage customers throughout Washington State with an emphasis in
the Puget Sound and Tri-Cities home lending markets.
Forward-Looking Statements
When used in this press release and in other documents filed
with or furnished to the Securities and Exchange Commission (the
“SEC”), in press releases or other public stockholder
communications, or in oral statements made with the approval of an
authorized executive officer, the words or phrases “believe,”
“will,” “will likely result,” “are expected to,” “will continue,”
“is anticipated,” “estimate,” “project,” “plans,” or similar
expressions are intended to identify “forward-looking statements”
within the meaning of the Private Securities Litigation Reform Act
of 1995. Forward‑looking statements are not historical facts but
instead represent management's current expectations and forecasts
regarding future events, many of which are inherently uncertain and
outside of our control. Actual results may differ, possibly
materially from those currently expected or projected in these
forward-looking statements. Factors that could cause our actual
results to differ materially from those described in the
forward-looking statements, include but are not limited to, the
following: the expected cost savings, synergies and other financial
benefits from our pending acquisition of Anchor (“merger”)
might not be realized within the expected time frames or at all;
governmental approval of the merger may not be obtained or adverse
regulatory conditions may be imposed in connection with
governmental approvals of the merger; conditions to the closing of
the merger may not be satisfied; the shareholders of Anchor may
fail to approve the consummation of the merger; the integration of
the combined company, including personnel changes/retention, might
not proceed as planned; and the combined company might not perform
as well as expected; increased competitive pressures; changes in
the interest rate environment; changes in general economic
conditions and conditions within the securities markets; our
ability to execute our plans to grow our residential construction
lending, mortgage banking, and warehouse lending operations, and
the geographic expansion of our indirect home improvement lending;
our ability to successfully integrate any assets, liabilities,
customers, systems, and management personnel we may acquire into
our operations and our ability to realize related revenue synergies
and expected cost savings and other benefits within the anticipated
time frames or at all; secondary market conditions for loans and
our ability to sell loans in the secondary market; legislative and
regulatory changes; and other factors described in the Company’s
latest Annual Report on Form 10-K, Quarterly Reports on Form 10-Q,
and other filings with the Securities and Exchange Commission which
are available on our website at www.fsbwa.com and on the SEC's
website at www.sec.gov. Any of the forward-looking statements
that we make in this press release and in the other public
statements are based upon management's beliefs and assumptions at
the time they are made and may turn out to be wrong because of the
inaccurate assumptions we might make, because of the factors
illustrated above or because of other factors that we cannot
foresee. Therefore, these factors should be considered in
evaluating the forward‑looking statements, and undue reliance
should not be placed on such statements. We do not undertake and
specifically disclaim any obligation to revise any forward-looking
statements to reflect the occurrence of anticipated or
unanticipated events or circumstances after the date of such
statements. These risks could cause our actual results for 2018 and
beyond to differ materially from those expressed in any
forward-looking statements made by, or on behalf of us and could
negatively affect our operating and stock performance.
Additional Information about the Proposed Acquisition of
Anchor
This press release does not constitute an offer to sell or the
solicitation of an offer to buy any securities or a solicitation of
any vote or approval. In connection with the proposed transaction,
FS Bancorp, Inc. (“FS Bancorp”) intends to file a registration
statement on Form S-4 with the SEC which will contain a proxy
statement/prospectus to be distributed to the shareholders of
Anchor in connection with their vote on the merger. Each party will
also file other documents regarding the proposed transaction with
the SEC. BEFORE MAKING ANY VOTING OR INVESTMENT DECISION REGARDING
THE TRANSACTION, SHAREHOLDERS OF ANCHOR ARE ENCOURAGED TO READ THE
REGISTRATION STATEMENT AND ANY OTHER RELEVANT DOCUMENTS FILED WITH
SEC, INCLUDING THE PROXY STATEMENT/PROSPECTUS THAT WILL BE PART OF
THE REGISTRATION STATEMENT, AS WELL AS ANY AMENDMENTS OR
SUPPLEMENTS TO THESE DOCUMENTS, WHEN THEY BECOME AVAILABLE, BECAUSE
THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED MERGER.
The final proxy statement/prospectus will be mailed to shareholders
of Anchor. Investors and security holders will be able to obtain
the documents free of charge at the SEC's website, www.sec.gov. In
addition, documents filed with the SEC by FS Bancorp will be
available free of charge by accessing FS Bancorp's website at
www.FSBWA.com or by writing FS Bancorp at 6920 220th Street SW
Mountlake Terrace, WA 98043, Attention: Investor Relations or
calling (425) 771-5299, or by writing Anchor at 601 Woodland Square
Loop SE, Lacey, WA 98503, Attention: Corporate Secretary or calling
(360) 537-1388.
FS Bancorp, Anchor, their directors, executive officers and
certain other persons may be deemed to be participants in the
solicitation of proxies from Anchor shareholders in favor of the
approval of the merger. Information about the directors and
executive officers of FS Bancorp and their ownership of FS Bancorp
stock is included in the proxy statement for its 2018 annual
meeting of shareholders, which was filed with the SEC on March 28,
2018. Information about the directors and executive officers of
Anchor and their ownership of Anchor stock is set forth in the
proxy statement for its 2017 annual meeting of shareholders, which
was filed with the SEC on November 9, 2017, and also will be
included in the proxy statement/prospectus for the merger.
Additional information regarding the interests of those
participants and other persons who may be deemed participants in
the transaction may be obtained by reading the registration
statement and the proxy statement/prospectus regarding the proposed
merger when it becomes available. Free copies of this document may
be obtained as described in the preceding paragraph.
|
|
FS BANCORP, INC. AND SUBSIDIARY |
|
CONSOLIDATED BALANCE SHEETS |
|
(Dollars in thousands, except share amounts)
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Linked |
|
YTD |
|
|
June 30, |
|
March 31, |
|
June 30, |
|
Quarter |
|
Over YTD |
|
|
2018 |
|
|
2018 |
|
|
2017 |
|
|
% Change |
|
% Change |
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
Cash and
due from banks |
$ |
3,429 |
|
|
$ |
3,532 |
|
|
$ |
3,975 |
|
|
(3 |
) |
|
(14 |
) |
|
Interest-bearing deposits at other financial institutions |
|
18,548 |
|
|
|
22,108 |
|
|
|
13,827 |
|
|
(16 |
) |
|
34 |
|
|
Total
cash and cash equivalents |
|
21,977 |
|
|
|
25,640 |
|
|
|
17,802 |
|
|
(14 |
) |
|
23 |
|
|
Certificates of deposit at other financial institutions |
|
17,611 |
|
|
|
17,611 |
|
|
|
18,109 |
|
|
— |
|
|
(3 |
) |
|
Securities available-for-sale, at fair value |
|
98,465 |
|
|
|
91,371 |
|
|
|
78,932 |
|
|
8 |
|
|
25 |
|
|
Loans
held for sale, at fair value |
|
55,191 |
|
|
|
51,315 |
|
|
|
57,256 |
|
|
8 |
|
|
(4 |
) |
|
Loans
receivable, net |
|
881,200 |
|
|
|
805,632 |
|
|
|
709,102 |
|
|
9 |
|
|
24 |
|
|
Accrued
interest receivable |
|
4,071 |
|
|
|
3,693 |
|
|
|
2,903 |
|
|
10 |
|
|
40 |
|
|
Premises
and equipment, net |
|
16,273 |
|
|
|
15,798 |
|
|
|
15,550 |
|
|
3 |
|
|
5 |
|
|
Federal
Home Loan Bank (“FHLB”) stock, at cost |
|
7,742 |
|
|
|
4,308 |
|
|
|
3,909 |
|
|
80 |
|
|
98 |
|
|
Bank
owned life insurance (“BOLI”), net |
|
13,498 |
|
|
|
13,410 |
|
|
|
10,194 |
|
|
1 |
|
|
32 |
|
|
Servicing
rights, held at the lower of cost or fair value |
|
8,352 |
|
|
|
7,515 |
|
|
|
4,899 |
|
|
11 |
|
|
70 |
|
|
Goodwill |
|
2,312 |
|
|
|
2,312 |
|
|
|
2,312 |
|
|
— |
|
|
— |
|
|
Core
deposit intangible, net |
|
1,164 |
|
|
|
1,240 |
|
|
|
1,517 |
|
|
(6 |
) |
|
(23 |
) |
|
Other
assets |
|
4,686 |
|
|
|
3,767 |
|
|
|
6,097 |
|
|
24 |
|
|
(23 |
) |
|
TOTAL
ASSETS |
$ |
1,132,542 |
|
|
$ |
1,043,612 |
|
|
$ |
928,582 |
|
|
9 |
|
|
22 |
|
|
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing accounts |
$ |
184,357 |
|
|
$ |
190,301 |
|
|
$ |
167,564 |
|
|
(3 |
) |
|
10 |
|
|
Interest-bearing accounts |
|
685,756 |
|
|
|
667,177 |
|
|
|
618,133 |
|
|
3 |
|
|
11 |
|
|
Total deposits |
|
870,113 |
|
|
|
857,478 |
|
|
|
785,697 |
|
|
1 |
|
|
11 |
|
|
Borrowings |
|
106,526 |
|
|
|
39,529 |
|
|
|
30,669 |
|
|
169 |
|
|
247 |
|
|
Subordinated note: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal
amount |
|
10,000 |
|
|
|
10,000 |
|
|
|
10,000 |
|
|
— |
|
|
— |
|
|
Unamortized debt issuance costs |
|
(145 |
) |
|
|
(150 |
) |
|
|
(165 |
) |
|
(3 |
) |
|
(12 |
) |
|
Total subordinated note less unamortized debt issuance costs |
|
9,855 |
|
|
|
9,850 |
|
|
|
9,835 |
|
|
— |
|
|
— |
|
|
Deferred
tax liability, net |
|
27 |
|
|
|
137 |
|
|
|
1,424 |
|
|
(80 |
) |
|
(98 |
) |
|
Other
liabilities |
|
16,650 |
|
|
|
11,176 |
|
|
|
12,133 |
|
|
49 |
|
|
37 |
|
|
Total liabilities |
|
1,003,171 |
|
|
|
918,170 |
|
|
|
839,758 |
|
|
9 |
|
|
19 |
|
|
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; |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,708,660 shares issued and outstanding at
June 30, 2018, 3,695,552 at March 31, 2018, and
3,075,168 at June 30, 2017 |
|
37 |
|
|
|
37 |
|
|
|
31 |
|
|
— |
|
|
19 |
|
|
Additional paid-in capital |
|
56,344 |
|
|
|
55,823 |
|
|
|
28,208 |
|
|
1 |
|
|
100 |
|
|
Retained
earnings |
|
76,102 |
|
|
|
72,349 |
|
|
|
61,920 |
|
|
5 |
|
|
23 |
|
|
Accumulated other comprehensive loss, net of tax |
|
(2,127 |
) |
|
|
(1,716 |
) |
|
|
(87 |
) |
|
24 |
|
|
2,345 |
|
|
Unearned
shares – Employee Stock Ownership Plan (“ESOP”) |
|
(985 |
) |
|
|
(1,051 |
) |
|
|
(1,248 |
) |
|
(6 |
) |
|
(21 |
) |
|
Total stockholders’ equity |
|
129,371 |
|
|
|
125,442 |
|
|
|
88,824 |
|
|
3 |
|
|
46 |
|
|
TOTAL
LIABILITIES AND STOCKHOLDERS’ EQUITY |
$ |
1,132,542 |
|
|
$ |
1,043,612 |
|
|
$ |
928,582 |
|
|
9 |
|
|
22 |
|
|
|
FS BANCORP, INC. AND SUBSIDIARY |
CONSOLIDATED STATEMENTS OF
INCOME |
(Dollars in thousands, except per share amounts)
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
QTR |
|
YTD |
|
June 30, |
|
June 30, |
|
Over QTR |
|
Over YTD |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
% Change |
|
% Change |
INTEREST
INCOME |
|
|
|
|
|
|
|
|
|
|
|
Loans receivable,
including fees |
$ |
13,135 |
|
$ |
10,401 |
|
$ |
25,391 |
|
$ |
19,773 |
|
26 |
|
|
28 |
|
Interest and dividends
on investment securities, cash and cash equivalents, and
certificates of deposit at other financial institutions |
|
887 |
|
|
736 |
|
|
1,619 |
|
|
1,397 |
|
21 |
|
|
16 |
|
Total
interest and dividend income |
|
14,022 |
|
|
11,137 |
|
|
27,010 |
|
|
21,170 |
|
26 |
|
|
28 |
|
INTEREST
EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
1,432 |
|
|
896 |
|
|
2,675 |
|
|
1,748 |
|
60 |
|
|
53 |
|
Borrowings |
|
496 |
|
|
106 |
|
|
576 |
|
|
145 |
|
368 |
|
|
297 |
|
Subordinated note |
|
169 |
|
|
169 |
|
|
337 |
|
|
336 |
|
— |
|
|
— |
|
Total
interest expense |
|
2,097 |
|
|
1,171 |
|
|
3,588 |
|
|
2,229 |
|
79 |
|
|
61 |
|
NET INTEREST
INCOME |
|
11,925 |
|
|
9,966 |
|
|
23,422 |
|
|
18,941 |
|
20 |
|
|
24 |
|
PROVISION FOR
LOAN LOSSES |
|
450 |
|
|
— |
|
|
800 |
|
|
— |
|
100 |
|
|
100 |
|
NET INTEREST
INCOME AFTER PROVISION FOR LOAN LOSSES |
|
11,475 |
|
|
9,966 |
|
|
22,622 |
|
|
18,941 |
|
15 |
|
|
19 |
|
NONINTEREST
INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges and fee
income |
|
670 |
|
|
1,003 |
|
|
1,329 |
|
|
1,864 |
|
(33 |
) |
|
(29 |
) |
Gain on sale of
loans |
|
4,671 |
|
|
4,460 |
|
|
8,649 |
|
|
8,815 |
|
5 |
|
|
(2 |
) |
Gain on sale of
investment securities |
|
— |
|
|
237 |
|
|
113 |
|
|
237 |
|
(100 |
) |
|
(52 |
) |
Gain on sale of
mortgage servicing rights |
|
— |
|
|
958 |
|
|
— |
|
|
958 |
|
(100 |
) |
|
(100 |
) |
Earnings on cash
surrender value of BOLI |
|
88 |
|
|
71 |
|
|
170 |
|
|
140 |
|
24 |
|
|
21 |
|
Other noninterest
income |
|
185 |
|
|
228 |
|
|
377 |
|
|
363 |
|
(19 |
) |
|
4 |
|
Total
noninterest income |
|
5,614 |
|
|
6,957 |
|
|
10,638 |
|
|
12,377 |
|
(19 |
) |
|
(14 |
) |
NONINTEREST
EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and
benefits |
|
7,671 |
|
|
6,916 |
|
|
14,719 |
|
|
13,034 |
|
11 |
|
|
13 |
|
Operations |
|
1,541 |
|
|
1,443 |
|
|
2,901 |
|
|
2,929 |
|
7 |
|
|
(1 |
) |
Occupancy |
|
704 |
|
|
645 |
|
|
1,353 |
|
|
1,289 |
|
9 |
|
|
5 |
|
Data processing |
|
679 |
|
|
593 |
|
|
1,319 |
|
|
1,160 |
|
15 |
|
|
14 |
|
Loan costs |
|
704 |
|
|
543 |
|
|
1,332 |
|
|
1,252 |
|
30 |
|
|
6 |
|
Professional and board
fees |
|
463 |
|
|
402 |
|
|
907 |
|
|
883 |
|
15 |
|
|
3 |
|
Federal Deposit
Insurance Corporation (“FDIC”) insurance |
|
90 |
|
|
119 |
|
|
131 |
|
|
253 |
|
(24 |
) |
|
(48 |
) |
Marketing and
advertising |
|
215 |
|
|
182 |
|
|
364 |
|
|
320 |
|
18 |
|
|
14 |
|
Amortization of core
deposit intangible |
|
77 |
|
|
100 |
|
|
153 |
|
|
200 |
|
(23 |
) |
|
(24 |
) |
Impairment on servicing
rights |
|
— |
|
|
1 |
|
|
— |
|
|
1 |
|
(100 |
) |
|
(100 |
) |
Total
noninterest expense |
|
12,144 |
|
|
10,944 |
|
|
23,179 |
|
|
21,321 |
|
11 |
|
|
9 |
|
INCOME BEFORE
PROVISION FOR INCOME TAXES |
|
4,945 |
|
|
5,979 |
|
|
10,081 |
|
|
9,997 |
|
(17 |
) |
|
1 |
|
PROVISION FOR
INCOME TAXES |
|
688 |
|
|
1,620 |
|
|
1,502 |
|
|
3,045 |
|
(58 |
) |
|
(51 |
) |
NET
INCOME |
$ |
4,257 |
|
$ |
4,359 |
|
$ |
8,579 |
|
$ |
6,952 |
|
(2 |
) |
|
23 |
|
Basic earnings per
share |
$ |
1.19 |
|
$ |
1.50 |
|
$ |
2.40 |
|
$ |
2.40 |
|
(21 |
) |
|
— |
|
Diluted earnings per
share |
$ |
1.13 |
|
$ |
1.41 |
|
$ |
2.28 |
|
$ |
2.25 |
|
(20 |
) |
|
1 |
|
|
|
|
|
|
|
|
KEY FINANCIAL
RATIOS AND DATA (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At or For the Three Months Ended |
|
|
June 30, |
|
March 31, |
|
June 30, |
|
|
2018 |
|
2018 |
|
2017 |
|
PERFORMANCE
RATIOS: |
|
|
|
|
|
|
Return on
assets (ratio of net income to average total assets) (1) |
1.58 |
% |
1.72 |
% |
1.94 |
% |
Return on
equity (ratio of net income to average equity) (1) |
13.57 |
|
14.28 |
|
20.62 |
|
Yield on
average interest-earning assets |
5.38 |
|
5.38 |
|
5.18 |
|
Interest
incurred on liabilities as a percentage of average noninterest
bearing deposits and interest-bearing liabilities |
0.89 |
|
0.69 |
|
0.58 |
|
Interest
rate spread information – average during period |
4.49 |
|
4.69 |
|
4.59 |
|
Net
interest margin (1) |
4.58 |
|
4.76 |
|
4.63 |
|
Operating
expense to average total assets |
4.50 |
|
4.40 |
|
4.86 |
|
Average
interest-earning assets to average interest-bearing
liabilities |
136.32 |
|
139.62 |
|
133.85 |
|
Efficiency ratio (2) |
69.24 |
|
66.80 |
|
64.67 |
|
|
|
|
|
|
|
At or For the Six Months Ended |
|
|
June 30, |
|
June 30, |
|
|
2018 |
|
2017 |
|
PERFORMANCE
RATIOS: |
|
|
|
|
Return on
assets (ratio of net income to average total assets) (1) |
1.65 |
% |
1.61 |
% |
Return on
equity (ratio of net income to average equity) (1) |
13.92 |
|
16.91 |
|
Yield on
average interest-earning assets |
5.38 |
|
5.13 |
|
Interest
incurred on liabilities as a percentage of average noninterest
bearing deposits and interest-bearing liabilities |
0.79 |
|
0.58 |
|
Interest
rate spread information – average during period |
4.59 |
|
4.55 |
|
Net
interest margin (1) |
4.66 |
|
4.59 |
|
Operating
expense to average total assets |
4.45 |
|
4.94 |
|
Average
interest-earning assets to average interest-bearing
liabilities |
137.89 |
|
134.70 |
|
Efficiency ratio (2) |
68.05 |
|
68.08 |
|
|
|
|
|
|
|
|
|
June 30, |
|
March 31, |
|
June 30, |
|
|
2018 |
|
2018 |
|
2017 |
|
ASSET QUALITY
RATIOS AND DATA: |
|
|
|
|
|
|
Non-performing assets to total assets at end of
period (3) |
0.06 |
% |
0.07 |
% |
0.08 |
% |
Non-performing loans to total gross loans (4) |
0.07 |
|
0.09 |
|
0.10 |
|
Allowance
for loan losses to non-performing loans (4) |
1,845.45 |
|
1,547.22 |
|
1,345.23 |
|
Allowance
for loan losses to gross loans receivable, excluding HFS loans |
1.29 |
|
1.36 |
|
1.41 |
|
|
|
|
|
|
|
|
CAPITAL RATIOS,
BANK ONLY: |
|
|
|
|
|
|
Tier 1
leverage-based capital |
12.23 |
% |
12.58 |
% |
10.12 |
% |
Tier 1
risk-based capital |
14.32 |
|
14.96 |
|
11.97 |
|
Total
risk-based capital |
15.57 |
|
16.21 |
|
13.23 |
|
Common
equity Tier 1 capital |
14.32 |
|
14.96 |
|
11.97 |
|
|
|
|
|
|
|
|
CAPITAL RATIOS,
COMPANY ONLY: |
|
|
|
|
|
|
Tier 1
leverage-based capital |
11.86 |
% |
12.20 |
% |
9.50 |
% |
Total
risk-based capital |
15.15 |
|
15.76 |
|
12.49 |
|
Common
equity Tier 1 capital |
13.90 |
|
14.51 |
|
11.24 |
|
|
|
|
|
|
|
|
|
|
|
|
At or For the Three Months Ended |
|
|
|
June 30, |
|
March 31, |
|
June 30, |
|
|
2018 |
|
2018 |
|
2017 |
|
PER COMMON
SHARE DATA: |
|
|
|
|
|
|
|
|
|
Basic
earnings per share |
$ |
1.19 |
|
$ |
1.22 |
|
$ |
1.50 |
|
Diluted
earnings per share |
$ |
1.13 |
|
$ |
1.15 |
|
$ |
1.41 |
|
Weighted
average basic shares outstanding |
|
3,583,927 |
|
|
3,556,581 |
|
|
2,903,323 |
|
Weighted
average diluted shares outstanding |
|
3,765,724 |
|
|
3,751,537 |
|
|
3,097,628 |
|
Common
shares outstanding at period end |
|
3,599,516 |
(5) |
|
3,563,006 |
(6) |
|
2,921,681 |
(7) |
Book
value per share using common shares outstanding |
$ |
35.94 |
|
$ |
35.21 |
|
$ |
30.40 |
|
Tangible
book value per share using common shares outstanding (8) |
$ |
34.98 |
|
$ |
34.21 |
|
$ |
29.09 |
|
________________(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 3,708,660
at June 30, 2018, less 18,421 restricted stock shares, and 90,724
unallocated ESOP shares.(6) Common shares were calculated using
shares outstanding of 3,695,552 at March 31, 2018, less 35,342
restricted stock shares, and 97,204 unallocated ESOP shares.(7)
Common shares were calculated using shares outstanding of 3,075,168
at June 30, 2017, less 36,842 restricted stock shares, and 116,645
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 below.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended June 30, |
|
For the Six Months Ended June 30, |
|
QTR Over QTR |
|
YTD Over YTD |
Average Balances |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
$ Change |
|
$ Change |
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans receivable, net
deferred loan fees (1) |
|
$ |
899,692 |
|
$ |
720,569 |
|
$ |
872,394 |
|
$ |
685,524 |
|
$ |
179,123 |
|
|
$ |
186,870 |
|
Securities
available-for-sale, at fair value |
|
|
96,865 |
|
|
97,289 |
|
|
93,716 |
|
|
95,711 |
|
|
(424 |
) |
|
|
(1,995 |
) |
Interest-bearing
deposits and certificates of deposit at other financial
institutions |
|
|
41,952 |
|
|
40,930 |
|
|
41,346 |
|
|
47,760 |
|
|
1,022 |
|
|
|
(6,414 |
) |
FHLB stock, at
cost |
|
|
6,770 |
|
|
4,019 |
|
|
5,097 |
|
|
3,467 |
|
|
2,751 |
|
|
|
1,630 |
|
Total
interest-earning assets |
|
|
1,045,279 |
|
|
862,807 |
|
|
1,012,553 |
|
|
832,462 |
|
|
182,472 |
|
|
|
180,091 |
|
Noninterest-earning
assets (2) |
|
|
37,583 |
|
|
39,676 |
|
|
37,419 |
|
|
38,331 |
|
|
(2,093 |
) |
|
|
(912 |
) |
Total
assets |
|
$ |
1,082,862 |
|
$ |
902,483 |
|
$ |
1,049,972 |
|
$ |
870,793 |
|
$ |
180,379 |
|
|
$ |
179,179 |
|
Liabilities and
stockholders’ equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
accounts |
|
$ |
656,363 |
|
$ |
595,071 |
|
$ |
663,173 |
|
$ |
580,760 |
|
$ |
61,292 |
|
|
$ |
82,413 |
|
Borrowings |
|
|
100,546 |
|
|
36,754 |
|
|
61,294 |
|
|
24,752 |
|
|
63,792 |
|
|
|
36,542 |
|
Subordinated note |
|
|
9,852 |
|
|
9,832 |
|
|
9,849 |
|
|
9,829 |
|
|
20 |
|
|
|
20 |
|
Total
interest-bearing liabilities |
|
|
766,761 |
|
|
641,657 |
|
|
734,316 |
|
|
615,341 |
|
|
125,104 |
|
|
|
118,975 |
|
Noninterest-bearing
accounts |
|
|
179,814 |
|
|
162,919 |
|
|
180,158 |
|
|
159,985 |
|
|
16,895 |
|
|
|
20,173 |
|
Other
noninterest-bearing liabilities |
|
|
10,451 |
|
|
13,112 |
|
|
11,181 |
|
|
12,553 |
|
|
(2,661 |
) |
|
|
(1,372 |
) |
Stockholders’
equity |
|
|
125,836 |
|
|
84,795 |
|
|
124,317 |
|
|
82,914 |
|
|
41,041 |
|
|
|
41,403 |
|
Total
liabilities and stockholders’ equity |
|
$ |
1,082,862 |
|
$ |
902,483 |
|
$ |
1,049,972 |
|
$ |
870,793 |
|
$ |
180,379 |
|
|
$ |
179,179 |
|
________________(1) Includes loans held for sale(2) Includes
fixed assets, BOLI, goodwill, and CDI
Non-GAAP Financial Measures:
In addition to results presented in accordance with generally
accepted accounting principles utilized in the United States
(“GAAP”), this earnings release contains the tangible book value
per share, a non-GAAP financial measure. Tangible common
stockholders’ equity is calculated by excluding intangible assets
from stockholders’ equity. For this financial measure, the
Company’s intangible assets are goodwill and core deposit
intangible. Tangible book value per share is calculated by dividing
tangible common shareholders’ equity by the number of common shares
outstanding. The Company believes that this measure is consistent
with the capital treatment by our bank regulatory agencies, which
excludes intangible assets from the calculation of risk-based
capital ratios and presents this measure to facilitate comparison
of the quality and composition of the Company's capital over time
and in comparison to its competitors.
Non-GAAP financial measures have inherent limitations, are not
required to be uniformly applied, and are not audited. Further,
this non-GAAP financial measure of tangible book value per share
should not be considered in isolation or as a substitute for book
value per share or total stockholders' equity determined in
accordance with GAAP and may not be comparable to a similarly
titled measure reported by other companies.
Reconciliation of the GAAP and non-GAAP financial measure is
presented below.
|
|
|
|
|
|
|
|
|
|
June 30, |
|
March 31, |
|
June 30, |
|
2018 |
|
2018 |
|
2017 |
|
(Dollars in thousands) |
Stockholders'
equity |
$ |
129,371 |
|
|
$ |
125,442 |
|
|
$ |
88,824 |
|
Goodwill
and core deposit intangible, net |
|
(3,476 |
) |
|
|
(3,552 |
) |
|
|
(3,829 |
) |
Tangible common
stockholders' equity |
$ |
125,895 |
|
|
$ |
121,890 |
|
|
$ |
84,995 |
|
|
|
|
|
|
|
|
|
|
Common shares
outstanding at end of period |
|
3,599,516 |
|
|
|
3,563,006 |
|
|
|
2,921,681 |
|
|
|
|
|
|
|
|
|
|
Common stockholders'
equity (book value) per share (GAAP) |
$ |
35.94 |
|
|
$ |
35.21 |
|
|
$ |
30.40 |
|
Tangible common
stockholders' equity (tangible book value) per share
(non-GAAP) |
$ |
34.98 |
|
|
$ |
34.21 |
|
|
$ |
29.09 |
|
|
|
Contacts: |
|
Joseph C. Adams, |
|
Chief Executive
Officer |
|
Matthew D. Mullet, |
|
Chief Financial
Officer |
|
(425) 771-5299 |
|
www.FSBWA.com |
|
|
|
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