FS Bancorp Q2 2026: Loan Charge-Off Clips EPS Despite Revenue Beat
As seen on the 24/7 Wall St. homepage on July 21, 2026.
A $2.3M construction loan charge-off dragged earnings down 4% despite beating revenue by 2.1%, but tangible book value surged 12% year-over-year and the Pacific West merger S-4 cleared the SEC last month.
Continue ReadingShow less
FS Bancorp reported Q2 2026 earnings per share of $1.04, coming in about 4% below the consensus estimate of $1.08. The shortfall traces directly to a $2.3 million construction loan charge-off that weighed on the bottom line, even as the bank cleared the revenue bar — posting $38.8 million against an estimate of $38 million, a 2.1% beat. It is the second consecutive quarter in which FSBW has missed on EPS after topping estimates in Q1 2026 and Q3 2025.
The headline EPS miss does not tell the whole story on balance-sheet health. Tangible book value climbed 12% year-over-year, a meaningful sign that underlying capital is building even when a single credit event pressures quarterly earnings. Investors watching credit quality will want to assess whether the construction charge-off is an isolated incident or an early signal of broader portfolio stress.
Sponsored
Are You Ready To Retire, Or Years Behind?
Most Americans suspect they're behind on retirement and never find out. Advisor.com's free matching tool pairs you in about three minutes with a vetted fiduciary advisor who can help you with investing, taxes, retirement, estate planning, and more. No minimums. No sales call. Find out where you stand.
The quarter also arrived with a significant strategic backdrop: the S-4 registration statement for FS Bancorp's merger with Pacific West cleared SEC review last month. That milestone keeps the deal on track and is likely to be a more consequential driver of the stock's longer-term trajectory than any single quarter's charge-off.
Mentioned: FSBW