MOUNTLAKE TERRACE, Wash. - FS Bancorp, Inc. (NASDAQ:FSBW), the parent company of 1st Security Bank of Washington, has completed its previously announced $5 million stock repurchase program and revealed that its Board of Directors has approved an additional buyback of up to $5 million of its outstanding common stock. The new repurchase plan is set to occur over a 12-month period concluding on October 31, 2025.
The company indicated that repurchases could be made in the open market, private transactions, or through shares withheld upon the exercise of equity awards. The timing of these buybacks will depend on a variety of factors, including stock availability, market conditions, the stock's trading price, alternative capital uses, and the company's financial performance. The repurchase program is slated to begin no earlier than the third trading day following this announcement.
FS Bancorp has stated that the repurchase initiative is part of a strategy to manage capital effectively and deliver value to its shareholders. The company has the flexibility to suspend, modify, or terminate the program at any time based on market conditions and other relevant factors.
This move comes as FS Bancorp continues to serve its customer base through 27 branches and various loan production offices across Washington and Oregon, specializing predominantly in home mortgage services in the Northwest.
The company's announcement also included a reminder that forward-looking statements involve risks and uncertainties, including economic conditions, competitive pressures, changes in the regulatory environment, and other factors that could impact the company's operations and financial performance.
The information provided is based on a press release statement from FS Bancorp, Inc.
In other recent news, FS Bancorp has seen a series of significant developments. The company has reported a 3.8% increase in its quarterly cash dividend, rising from $0.26 to $0.27 per share, set to benefit its registered shareholders. Additionally, FS Bancorp has initiated a new stock repurchase program, intending to repurchase up to $5 million of its outstanding common stock over a period of 12 months, in compliance with SEC Rule 10b5-1 guidelines.
In the realm of mergers and acquisitions, Terri L. Degner, a seasoned banking professional, has been appointed to FS Bancorp's Board of Directors, bringing a wealth of experience from her tenure at Anchor Bank. Degner's appointment is expected to significantly contribute to the Board's operations.
On the analyst front, FS Bancorp's executives are set to participate in the Raymond (NS:RYMD) James U.S. Bank and Banking on Technology Conference in Chicago. This event will provide an opportunity for FS Bancorp to engage with investors, analysts, and other industry professionals, discussing the company's financial performance, strategic initiatives, and operational developments.
Furthermore, FS Bancorp has announced key executive changes. Matthew D. Mullet has been promoted to President while retaining his CFO role. Sean McCormick (NYSE:MKC) has been promoted to Chief Credit Administration Officer, and Robert Nesbitt has been appointed as Chief Credit Operations Officer. These promotions are part of FS Bancorp's strategy to bolster its leadership team. These are the recent developments at FS Bancorp.
InvestingPro Insights
FS Bancorp's recent announcement of a new $5 million stock repurchase program aligns with its strong financial position and commitment to shareholder value. According to InvestingPro data, the company boasts a market capitalization of $358.67 million and an attractive P/E ratio of 9.51, suggesting the stock may be undervalued relative to its earnings.
InvestingPro Tips reveal that FS Bancorp has raised its dividend for 12 consecutive years, demonstrating a consistent track record of returning value to shareholders. This aligns with the company's current strategy of effective capital management through stock buybacks. The dividend yield stands at 2.32%, which may appeal to income-focused investors.
The company's financial health is further underscored by its operating income margin of 35.97% for the last twelve months as of Q3 2024, indicating strong profitability. This robust financial performance supports FS Bancorp's ability to fund the repurchase program while maintaining operational stability.
It's worth noting that FS Bancorp has shown impressive price performance, with a 55.01% total return over the past year and a substantial 41.29% return over the last six months. This positive momentum could be a factor in the company's decision to repurchase shares, potentially seeing them as an attractive investment at current levels.
For investors seeking more comprehensive analysis, InvestingPro offers additional tips and insights. There are 8 more InvestingPro Tips available for FS Bancorp, which could provide valuable context for understanding the company's financial outlook and market position.
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