FS Bancorp, Inc. (NASDAQ:FSBW), the parent company of 1st Security Bank of Washington, announced today that its Board of Directors has approved a new stock repurchase program. The new authorization allows for the buyback of up to $5 million of the company's common stock.
This announcement comes on the heels of the completion of the previous repurchase program, which was also valued at $5 million and announced on July 11, 2024. The repurchase programs reflect the company's commitment to managing its capital effectively and delivering value to its shareholders.
The repurchase of shares will be conducted in the open market or through privately negotiated transactions, subject to market conditions, applicable legal requirements, and other relevant factors. The program does not obligate FS Bancorp to acquire any particular amount of common stock and may be suspended or discontinued at any time at the company's discretion.
FS Bancorp, headquartered in Mountlake Terrace, Washington, operates as a holding company for 1st Security Bank of Washington. The bank provides various banking and financial services to local communities, and the repurchase program may serve as a signal of the company's financial stability and confidence in its future prospects.
In other recent news, FS Bancorp has announced a series of significant developments. The company has completed its previously announced $5 million stock repurchase program and has approved an additional buyback of up to $5 million of its outstanding common stock. This new repurchase plan is set to take place over a 12-month period. FS Bancorp has also 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.
In addition to these financial developments, FS Bancorp has welcomed seasoned banking professional Terri L. Degner to its Board of Directors. Degner's appointment is anticipated to greatly enhance the Board's operations. Furthermore, FS Bancorp has announced key executive changes with Matthew D. Mullet promoted to President while retaining his CFO role, Sean McCormick (NYSE:MKC) promoted to Chief Credit Administration Officer, and Robert Nesbitt appointed as Chief Credit Operations Officer.
Finally, FS Bancorp's executives are set to participate in the Raymond (NS:RYMD) James U.S. Bank and Banking on Technology Conference in Chicago, providing an opportunity for the company to engage with investors, analysts, and other industry professionals.
InvestingPro Insights
FS Bancorp's recent announcement of a new $5 million stock repurchase program aligns well with its track record of shareholder-friendly actions. According to InvestingPro data, the company has maintained dividend payments for 12 consecutive years and has even raised its dividend for the same period. This consistency in returning value to shareholders is further underscored by the company's current dividend yield of 2.32%.
The company's financial health appears robust, with a P/E ratio of 9.7, suggesting that the stock may be undervalued relative to its earnings. This could explain the Board's decision to initiate another share buyback program. Additionally, FS Bancorp has demonstrated strong profitability, with operating income of $50.16 million and an impressive operating income margin of 35.97% over the last twelve months as of Q3 2024.
InvestingPro Tips highlight that FS Bancorp has shown a high return over the last year, with a one-year price total return of 55.01%. This performance, coupled with the company's consistent dividend policy, may indicate management's confidence in the bank's financial position and future prospects.
For investors seeking more comprehensive analysis, InvestingPro offers 10 additional tips for FS Bancorp, providing a deeper understanding of the company's financial health and market position.
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