Fs Bancorp, Inc. · NASDAQ:FSBW
Fs Bancorp — Investor Presentation (June 2013)
24 slides from Fs Bancorp's investor presentation, Jun 3, 2013
Slide 1: Investor Presentation
1ST SECURITY BANK FS BANCORB INC. Investor Presentation dune 4ths 2013 Build a truly great place to work and bank. FSBW Vision Statement
Slide 2: Forward-looking statements
Certain matters discussed in this presentation may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not statements of historical fact and often include the words “believes,” “expects,” “anticipates” “estimat
Slide 3: Forward-looking statements (continued)
Any of the forward-looking statements that we make in this presentation and in the other public statements we make are based ‘upon management's, ‘and assumptions at the time they are made. We undertake no obligation to publicly update or revise any forward-looking statements included in this present
Slide 4: Agenda
OE eae Agenda = History = Culture = Footprint = Financial Results = Lending Breakout = Business Plan = Questions and Answers
Slide 5: Bank History
Bank History > Founded in 1936 as a credit union. Operated as a credit union until 2004. > Converted to a state chartered mutual savings bank on April 1, 2004, operating as 1st Security Bank of Washington. > Converted to a stock savings bank on July 9, 2012. Holding company under the name FS Bancorp
Slide 6: Bank Culture
IsT Bank Culture = Vision: “Build a truly great place to work and bank.” = Mission: “Live our Core Values and ‘wow’ each other and our customers every day.” = Business Philosophy = Emphasis on collaboration = Best idea wins = Jim Collins’ Good to Great lessons
Slide 7: 1st Security Bank Footprint
a tk 1st Security Bank Footprint ie ss Poulsbo Spigig Poulsbo Home Lending@® ee ) Edmonds@ — | Capitol Hill Branch @ 2 | opened May 13th, @ 1 ynnwood 2013.
Slide 8: Snohomish County Banks 2008 and Now
Snohomish County Banks 2008 and Now Headquartered in Snohomish Headquartered in Snohomish County: December 31, 2008 County: March 31, 2013, Frontier Bank* $4,099,493 Coastal Community Bank $387,010 Cascade Bank® $1,636,243 Ast Security Bank $371,560 City Bank* $1,325,541 r Golf Savings Bank* $519,65
Slide 9: Northwest Economy
1sT SECURITY BANK Northwest Economy FS BANCORP INC. = Jobs, Jobs, Jobs. Limited supply of in city housing. Major employers include Boeing, Microsoft, Amazon, Starbucks, Costco, Google, Russell, and Nordstrom. Population growth, income growth, and housing affordability.
Slide 10: Financial History
Financial History Data prior to December 31, 2012 is reported for the Bank only. 3/31/2013 | 12/31/2012 12/31/2011 | 12/31/2010 | 12/31/2009 Net Loans $276,501| $274,949] $217,131] $230,822| $231,441 Total Assets $371,571| $359,030} $283,793] $292,334 $281,836 Total Deposits $293,781| $288,949] $246
Slide 11: Income Statement
Income Statement Three Months Ended Three Months Ended March 31, 2013 (Consolidated) March 31, 2012 (Bank only) Interest Income $5,175 Interest Income $4,299 Interest Expense (510) Interest Expense (649) Net Interest Income (NI!) 4,665 Net Interest Income (NII) 3,650 Provision for Loan Losses (600)
Slide 12: Balance Sheet
IsT B a | ance S h eet ‘Numbers presented in thousands (00's) As of March 31, 2013 (Consolidated) As of March 31, 2012 (Bank Only) Cash and Cash Equivalents $8,906 Cash and Cash Equivalents $16,359 Securities AFS at Fair Value 43,158 Securities AFS at Fair Value 31,866 Loans Held for Sale 20,160 Loa
Slide 13: Selected Financial Ratios
Selected Financial Ratios (Consolidated) (Consolidated) (Bank Only) 3/31/2013* | 12/31/2012* | 3/31/2012* Return on Average Assets 1.37% 1.22% 0.38% Net Interest Margin 5.45% 5.52% 5.35% Efficiency Ratio 64.49% 66.24% 81.89% Net Loans & Leases to Deposits 94.12% 95.15% 87.90% Non Performing Assets t
Slide 14: Loan Diversification
IsT Loan Diversification Target Loan Mix Actual 3/31/2013 Actual 12/31/2012 Type | Percentage of Gross Type Percentage of Gross Type Percentage of Gross Loans including HFS Loans including HFS Loans including HFS Consumer 30% Consumer 38% Consumer 38% Lending Lending Lending ‘Commercial 30% Commerci
Slide 15: Consumer Lending
FS BANCORP INC. Consumer Lending Q1 2013 Highlights Q1 2013 Dealer Production by State + $114MM Outstandingas of 3/31/13 * 40.15% Washington + §14.8MM in Dealer Originations (Up 82.9% from + 33.15% Oregon comparable first quarter 2012) * 26.70% California * Average Yield of 9.07% in Q1, up from 8.90
Slide 16: Home Lending
Home Lending 2013 Q1 Closings: $53.5MM (100% Retail) ~ Ast Quarter Purchases Closings: 46% ~ 1st Quarter New Applications: 1st Quarter Closed Loans - 72% of Conventional loans have a FICO >=741 = 73% of Conventional loans have a LTV of <=80% SESORDEREA! “MGereCrineRe SPST ~ Opened the Poulsbo Produc
Slide 17: Home Lending
Home Lending 2013 Servicing unpaid principal balance $157.7MM First quarter increase in servicingasset: $29.1MM ~ Book value for mortgage servicing rights: 90% *87 ~ Weighted average coupon 3.93% sharin On Sle 2013 Q1 Margins on loan sales: = Margins on loans sold in Q4 of 2.75% - Slight decrease fr
Slide 18: Commercial Business Lending
IsT SECURITY F FS BANCORB INC. Commercial Business Lending 2013 Q1 Highlights + $61.1MM Outstanding as of 3/31/13 + $109.5MM Commitments as of 3/31/13 + $26.8MM of Outstanding balances are warehouse related, down 12.1MM from December 2012 2013 Quarter End Product Mix mc a warehouse 2013 Mortgage War
Slide 19: Residential Construction Lending
FS BANCORB INC. Residential Construction Lending Portfolio Highlights March 31, 2013 Concentration (Committed, + $13.8MM in 2013 Ql Originations ee ( ) * $60.2MM Committed as of 3/31/13 Construction + $35.5MM Outstandingas of 3/31/13 $9.4MM Loan Payoffs in Q1 2013 6.72% Average Interest Rate 66.4% A
Slide 20: Nonperforming Assets
IsT Nonperforming Assets Non Accrual Lane Repo'd Property @31-Dect1 m31-Dec-12 m31-Mar-13 Numbers reported in thousands (000’s) 2
Slide 21: Deposit Trends
Deposit Trends As of March 31, 2013 (Consolidated) Checking | MMDA and Savings = CD's less than $250,000 » CD's $250,000+ FS BANCORB INC. As of March 31, 2012 (Bank Only) Checking lI MMDA and Savings '= CU's less than $250,000 » CO's $250,000+ $21,925 Numbers reported in (000's) $24,477 9% Numbers r
Slide 22: Business Plan
Business Plan = Growing and diversifying our loan portfolio = Maintaining and improving asset quality = Emphasizing lower cost core deposits to reduce the costs of funding our loan growth = Capturing our customers’ full relationship by offering a wide range of products and services = Expanding our r
Slide 23: Capital Management Strategy
Capital Management Strategy Primary deployment through organic asset growth Quarterly cash dividend of 5 cents per share for shareholders of record on May 15th, 2013 and payable on May 29th, 2013 $12.1 million in cash held at FS Bancorp, Inc. as of March 31, 2013 Continued focus on increasing shareh
Slide 24: Contact Information
Contact Information Joseph C. Adams Matthew D. Mullet joea@fsbwa.com mattm@fsbwa.com Chief Executive Officer Chief Financial Officer 425-697-8048 425-697-8026 6920 220" Street Southwest Mountlake Terrace, Washington 98043