FS Bancorp (FSBW) is a $3.20 billion community bank holding company operating through 1st Security Bank of Washington. At March 31, 2026, MFFAIS reports CLV/LLV/OLV all at negative $134.2 million, consistent with the standard banking liquidation posture where deposit liabilities settle at face value while loan assets take meaningful haircuts. Under the liquidation lens, the balance sheet shows: total assets of $3.20 billion against total liabilities of $2.89 billion, leaving GAAP book equity of $313.9 million. Applying standard haircuts, the primary asset categories are: cash/equivalents $38.7M (100% recovery = $38.7M); loans receivable net $2.62 billion (at 85% recovery, roughly reflecting ACL adequacy, nonperforming ratio of 0.69%, and indirect home improvement credit stress = ~$2.23B); securities AFS $271.0M (carried at fair value, ~98% recovery = ~$265M); securities HTM $33.3M (fair value $34.3M, modest premium); PP&E $43.6M (at 60% = ~$26M); goodwill $3.6M and CDI $9.8M (0% recovery); BOLI $36.5M (near-par surrender value); other assets $38.1M (discounted). Rough liquidation asset recovery totals approximately $2.73-2.75 billion. Against total liabilities of $2.89 billion at face value — dominated by $2.64 billion in deposits, $167.3M in FHLB/FRB borrowings, and $50M subordinated notes — the implied recovery to equity is negative, consistent with reported CLV figures. The deficit of approximately $134M reflects the standard asymmetry between haircut assets and face-value liabilities. Key change from prior period (December 31, 2025 10-K): total assets were essentially flat quarter-over-quarter; borrowings increased $38M to $167.3M from $129.3M; deposits decreased $36.1M; ACL increased modestly to $32.4M (1.22% of gross loans) from $31.9M (1.20%); loans held for sale increased $12.6M; and stockholders' equity increased $6.2M to $313.9M. A pending acquisition of Pacific West Bancorp (agreed February 25, 2026, expected Q3 2026 close) would add approximately $386M in assets, $276.6M in loans, and $342.2M in deposits for consideration of approximately $34.6M — not yet consolidated and therefore not reflected in current period balance sheet but introduces future liability stack expansion. Net charge-offs increased to $2.1M from $1.7M, driven by indirect home improvement loan stress. The filing discusses undisbursed construction and development loan commitments of $218.5M and total outstanding loan commitments of $621.6M in MD&A but does not separately tag off-balance-sheet commitment exposure in XBRL beyond the ACL on unfunded commitments ($1.6M).
▼ Community Notes