FS Bancorp's Third-Quarter Profit Falls to $4.9 Million After Pacific West Deal

FS Bancorp's net income fell 46% year over year in the third quarter, which included $2.5 million in expenses tied to its completed Pacific West Bancorp acquisition.

For the three months ended Sept. 30, net income was $4.926 million, down from $9.177 million a year earlier. Diluted earnings per share were 63 cents, compared with $1.18 in the year-earlier quarter.

FS Bancorp completed the acquisition Aug. 19. The quarter also included a preliminary, nontaxable bargain purchase gain of $1.7 million.

Net interest income was $35.686 million, and noninterest income was $6.176 million. Together, they totaled $41.862 million. Noninterest expenses rose to $32.3 million from $25.4 million a year earlier.

Deposits reached $2.87 billion at Sept. 30, up $418.3 million, or 17.1%, from June 30. The acquired business accounted for most of the increase. Pacific West had $442.8 million in deposits at quarter-end, compared with $435.6 million when FS Bancorp acquired it.