FS Bancorp, Inc. (FSBW) Stock

FS Bancorp, Inc. (FSBW) is a Financials stock trading at $43.36 (as of 2026-09-02), with a market capitalization of $322.25M and a trailing P/E of 9.7. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

FS Bancorp, Inc. is a bank holding company for 1st Security Bank of Washington, providing banking and financial services through Commercial and Consumer Banking and Home Lending. It offers deposit products and makes residential mortgages, home equity loans, and various commercial and consumer loans for individuals, local families, and businesses in the greater Puget Sound area.

Understand FS Bancorp, Inc.: how it makes money

FS Bancorp is the holding company for 1st Security Bank of Washington, a community bank serving local families and businesses with deposits, commercial loans, and residential mortgages. It earns income from the interest spread between what depositors earn and what borrowers pay, plus fees from home loan origination. Home lending is the distinctive differentiator, while commercial and consumer banking form the steady recurring core.

Profit is the net interest spread on a deposit-funded balance sheet, with home loan origination acting as the growth engine that feeds future recurring loan-book interest income.

Business quality (Mixed): A small, steady-spread community bank with solid credit underwriting but limited scale and modest top-line growth (10% ROE, 20% operating margin, mixed quality grade).

Valuation: At 10× earnings, FSBW trades 26% below the Banking average (13×).

Bull case

Stock trades well below peers: At a P/E of 9.6x versus the banking industry average of 13x, the stock is priced 26% below its sector, implying the market assigns a discount for size and growth that may be excessive given stable margins.
High-quality consumer book: 84.3% of consumer portfolio originations carry a FICO score above 720, signaling a credit book with low expected charge-offs that should protect net interest margin through mild cycles.

Bear case

Growth is barely positive: Revenue grew just 2.0% year-over-year in the latest quarter, a pace that is roughly in line with broad deposits growth and leaves little room for earnings leverage if funding costs rise.
Small scale caps upside: With only 567 full-time equivalent employees and Home Lending Production of $210 million in the quarter, the bank's addressable market is a single state's residential and small-business borrowers, limiting organic growth and fee diversification.

Valuation — source: SEC EDGAR (first-party)
Price	$43.36
Market Cap	$322.25M
P/E Ratio	9.7
EV / EBITDA	13.8
Price / Book	1.01
Price / Sales	1.61
FCF Yield	16.1%
DCF Value (model)	$71.33
DCF Upside vs Price	64.5%

Profitability & Growth — source: SEC EDGAR
Revenue (TTM)	$197.25M
Net Margin	16.9%
Revenue Growth (YoY)	2.0%
EPS Growth (YoY)	6.0%
FCF Growth (YoY)	778.4%

Valuation vs Sector & Industry
Stock P/E	9.7
Sector P/E (Financials)	14.9
Industry P/E (Banking)	12.7
vs Sector	-35.2%
vs Industry	-23.9%

Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional Holder	T. Rowe Price Investment Management, Inc. ($38.51M)
Institutional Holders Tracked	10

Company
Sector	Financials
Industry	Banking
CEO	Joseph C. Adams
Employees	567
Country	US
IPO Date	2012-07-10

Related Companies (Banking; 8 comparable banks)

Data as of 2026-09-02.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.