Fs Bancorp, Inc. · NASDAQ:FSBW
Fs Bancorp — Investor Presentation (November 2012)
29 slides from Fs Bancorp's investor presentation, Nov 27, 2012
Slide 1: Investor Presentation
1ST SECURITY BANK FS BANCORP INC. Investor Presentation November 27th. 2012 “Best idea wins” Charles Ainslie Founder Golf Savings Bank
Slide 2: Forward-looking statements
matters discussed in this presentation may contain forward-looking statements withi n Reform Act of 1995. Forward-looking statements are not statements of the words “believes,” “expects,” “anticipates,” “ “forecasts,” “intends,” “plans,” “targets,” “potentially,” “probably,” “projects,” “outlook” or
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 beliefs and assumptions at the time they are made. We undertake no obligation to publicly update or revise any forward-looking statements included in this pr
Slide 4: Agenda
Agenda History Management Philosophy Mutual to Stock Conversion Footprint Financials Questions and Answers
Slide 5: Bank History
Bank History >» Founded in 1936 as a credit union. ] Operated as a credit union until 2004. 1ST SECURITY >» Converted to a state chartered mutual BANK savings bank on April 1, 2004. Operating as | 1st Security Bank of Washington. Y ihe FS BANCORP INC. > Converted to a stock savings bank on July 9, 2
Slide 6: Management Philosophy
Management Philosophy = Live by the Core Values = Leadership is service, not control = Upside down pyramid = Emphasis on collaboration = Best idea wins = Good to Great lessons
Slide 7: Core Values
Core Values o. Relationship Driven — we strive to “wow” (surprise, excite and delight) each other and our customers 0. Ethical-— fair, honest, act with integrity o. Lead by Example— maintaina positive attitude, show respect for others, have some fun Accountable — we take our responsibilities serious
Slide 8: Jim Collins' "Good to Great"
Jim Collins’ “Good to Great” = Level 5 Leadership = First Who...then What = Confront the Brutal Facts = Hedgehog Concept = A Culture of Discipline = Technology never the root cause = Transformation Gradual
Slide 9: First Who... then What
First Who... then What ° Get the right people on the bus (the right people don’t need to be tightly managed, they are self-motivated and want to build something great) Get the wrong people off the bus (with the wrong people, it does not matter if you discover the right direction, you still won’t bui
Slide 10: Board of Directors
Board of Directors Ted Leech, Chairman. Audit and Compensation Committees. Retired Univar Senior Vice President. Career responsibilities included Accounting, A/P, Information Technology, Treasury, Legal, HR, and Audit. Mike Mansfield, Audit and Compensation Committees. Former tax partner at Moss Ada
Slide 11: Leadership Team
Leadership Team Joe Adams, Chief Executive Officer. Joined 2003. Member of the Board of Directors and 9 years at the bank/credit union. Prior to joining the bank, Mr. Adams practiced law from 1985 to 2003. Drew Ness, Chief Operations Officer. Joined 2008. Over 20 years of banking experience. Previou
Slide 12: Leadership Team
Leadership Team Deanne Goff SVP Retail Banking. Over 20 years of Retail banking experience including 16 years with 1st Security Bank. Debbie Steck SVP Home Lending Operations. Over 25 years of Home lending experience including 10 years with Golf Savings Bank. Dennis O’Leary SVP Construction and Cons
Slide 13: Leadership Team
Leadership Team Jerome Bader VP Marketing. Over 20 years of marketing experience including being the marketing director for the second largest chamber of commerce in Washington State. May-Ling Sowell SVP Compliance and Audit. Over 25 years of audit and compliance experience at Puget Sound area commu
Slide 14: IPO Raised $32.4 million Gross
IPO Raised $32.4 million Gross Ast SECURITY BANK OF WASHINGTON AND FS BANCORP, INC. ANNOUNCE COMPLETION OF CONVERSION AND STOCK OFFERING MOUNTLAKE TERRACE, WA (July 9, 2012) — FS Bancorp, Inc. announced today that it has become the holding company for 1st Security Bank of Washington (the “Bank”) in
Slide 15: 1st Security Bank Footprint
1st Security Bank Footprint fusses® Poulsbo | ~ Edmonds _ Lynnwood 15 Be Canyon Park - Overlake Puyallup Administrative Office Capitol Hill Branch projected opening in 2°4 quarter of 2013.
Slide 16: Northwest Economy
Northwest Economy Jobs, Jobs, Jobs. 16 Housing and Home Building. Major employers include Boeing, Microsoft, Amazon, Starbucks, Costco, Google, Russell, and Nordstrom. Bank footprint projected employment growth of 1.7% per year for the next 10 years. Population growth, income growth, and housing aff
Slide 17: Snohomish County 2008 and Now
Snohomish County 2008 and Now Headquartered in Snohomish Headquartered in Snohomish County: December 31, 2008 County: June 30, 2012 Frontier Bank* $4,099,493 1st Security Bank $340,911 Cascade Bank* $1,636,243 Coastal Community Bank $339,048 City Bank* $1,325,541 = - UniBank $182,609 Golf Savings Ba
Slide 18: Financial History
Financial History Summary Data from 2008. Data prior to September 30, 2012 is reported for the Bank only. 9/30/2012 | 12/31/2011 12/31/2010 | 12/31/2009 | 12/31/2008 Net Loans $259,157 $217,131 $230,822 $231,441 $222,974 Total Assets $341,213 $283,793 $292,334 $281,836 $255,368 Total Deposits $274,8
Slide 19: Balance Sheet
Numbers presented in thousands (000's) As of September 30, 2012 Balance Sheet As of December 31, 2011 Cash and Cash Equivalents $12,177 Cash and Cash Equivalents $19,253 Securities AFS at Fair Value 38,794 Securities AFS at Fair Value 26,899 Loans Held for Sale 8511 Loans Held for Sale 0 Loans Recei
Slide 20: Income Statement
Income Statement Nine months ending September 30, 2011 Nine months ending September 30, 2012 Interest Income $13,642 Interest Income $12,307 Interest Expense 1,832 Interest Expense 2,326 Net Interest Income 11,810 Net Interest Income 9,981 Provision for Loan Losses 1,695 Provision for Loan Losses 1,
Slide 21: Selected Financial Ratios from UBPR
Selected Financial Ratios from UBPR Data is annualized where applicable based upon reported year to date results. 9/30/2012 12/31/2011 9/30/2011 Return on Assets 1.80% 0.56% 0.60% Net Interest Margin 5.44% 5.26% 5.24% Efficiency Ratio 74.37% 73.84% 73.91% Net Loans & Leases to Deposits 92.88% 87.55%
Slide 22: Loan Portfolio Composition
FS BANCORP INC. Loan Portfolio Composition ° As of September 30, 2012 As of December 31, 2011 1-4 Family Real _§ 1-4 Family Real Estate Loans Estate Loans m Commercial m Commercial Real Real Estate Estate Loans Loans = Consumer = Consumer Loans Loans = Commercial Commercial Business Loans. Business
Slide 23: Loan Diversification
Loan Diversification 23 Target Loan Mix Actual 9/30/2012 Actual 12/31/2011 Type Percentage of Gross Type Percentage of Gross Type Percentage of Gross Loans including HFS Loans including HFS Loans including HFS Consumer 30% Consumer 43% Consumer 52% Lending Lending Lending Commercial 30% Commercial 2
Slide 24: Nonperforming Assets
Nonperforming Assets $600 —_ ae ee i a $2,000, “¢ Non Accrual Loans 30-Sep-11 m31-Dec-11 30-Sep-12 Numbers reported in thousands (000's) 24
Slide 25: Deposit Stats
Deposit Stats Quarter end September 30, 2012 Quarter end December 31, 2011 mi Checking $24,569 |IMMDA and Savings mcO's less than $250,000 CD's $250,000+ Numbers reported in (00's) $22,774 mi Checking |IMMDA and Savings mcO's less than $250,000 CD's $250,000+ Numbers reported in (000's) 25
Slide 26: Prospectus Plan Highlights
26 Prospectus Plan Highlights 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. Expand
Slide 27: Book Value Per Share
27 Book Value Per Share Book value per share as reported on September 30, 2012 reflects $18.32 per share. Earnings per share in the 3'¢ quarter reflect $1.03 per share including $0.72 of deferred tax asset provision reversal benefit. Reported shares include 259,210 of unallocated Employee Stock Owne
Slide 28: FS Bancorp, Inc. key metrics
FS Bancorp, Inc. Reported As of Date YTD Net Income before Income Tax* $1,900 9/30/2012 Return on Average Assets** 1.81% 9/30/2012 Return on Average Assets w/o DTA** 0.81% 9/30/2012 Net Interest Margin** 5.39% 9/30/2012 Return on Average Equity** 15.90% 9/30/2012 Non Performing Assets to Total Asset
Slide 29: Questions?
Questions? 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 29