MOUNTLAKE TERRACE, Wash. - FS Bancorp, Inc. (NASDAQ: NASDAQ:FSBW), the parent company of 1st Security Bank of Washington, announced a modest increase in its quarterly cash dividend and the authorization of a new stock repurchase program. The company's board of directors approved a rise in the dividend to $0.27 per share, up from $0.26, marking a 3.8% increase. This change is set to benefit shareholders of record as of August 7, 2024, with the payment due on August 21, 2024.
In addition to the dividend hike, FS Bancorp has also initiated a plan to repurchase up to $5 million of its outstanding common stock. The repurchase program is expected to commence no earlier than the third trading day following the announcement and will continue over a 12-month period until July 31, 2025. The buybacks may occur in the open market, through privately negotiated transactions, or by withholding shares upon the exercise of equity awards. The timing and volume of repurchases will be at the discretion of management, taking into account stock availability, market conditions, and other relevant factors.
The repurchase program aligns with the guidelines of Rule 10b5-1 under the Securities and Exchange Commission (SEC), which allows companies to repurchase shares at times when they might otherwise be prevented from doing so under insider trading laws. The program may be adjusted, paused, or ended at any time based on various factors, including market dynamics, repurchase price levels, alternative investment opportunities, liquidity, and the company's financial performance.
FS Bancorp, a Washington corporation, operates through its subsidiary, 1st Security Bank, offering loan and deposit services across twenty-seven branches and various loan production offices in the greater Puget Sound area, the Tri-Cities, and Vancouver, Washington. The bank is primarily focused on servicing home mortgage customers throughout the Northwest, with a strong presence in Washington State's home lending markets.
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