INVESTOR PRESENTATION

August 2023

"Build a truly great place to work and bank."

-FSBW Vision Statement

Disclosure Statement

The information included in this presentation is confidential and may not be reproduced or redistributed, passed on or divulged, directly or indirectly, to any other person. FS Bancorp, Inc. (the "Company") reserves the right to request the return of this presentation at any time.

Forward Looking Statements

This presentation may contain forward-looking statements within the meaning within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements often include the words or phrases "believe," "will," "will likely result," "are expected to," "will continue," "is anticipated," "estimate," "project," "plans," or similar expressions. Forward looking statements are not historical facts but instead represent management's current expectations and forecasts regarding future events, many of which are inherently uncertain and outside of our control. Actual results may differ, possibly materially, from those currently expected or projected in these forward-looking statements.

Factors that could cause the Company's actual results to differ materially from those described in the forward-looking statements, include but are not limited to, the following: potential adverse impacts to economic conditions in the Company's local market areas, other markets where the Company has lending relationships, or other aspects of the Company's business operations or financial markets, including, without limitation, as a result of employment levels; labor shortages, the effects of inflation, a potential recession or slowed economic growth caused by increasing political instability from acts of war, including Russia's invasion of Ukraine, as well as increasing prices and supply chain disruptions, and any governmental or societal response to new COVID-19 variants; increased competitive pressures, changes in the interest rate environment, adverse changes in the securities markets, the Company's ability to successfully realize the anticipated benefits of the branch acquisitions, including customer acquisition and retention; the Company's ability to execute its plans to grow its residential construction lending, mortgage banking, and warehouse lending operations, and the geographic expansion of its indirect home improvement lending; challenges arising from expanding into new geographic markets, products, or services; secondary market conditions for loans and the Company's ability to originate loans for sale and sell loans in the secondary market; legislative and regulatory changes, including changes in banking, securities and tax law, in regulatory policies and principles, or the interpretation of regulatory capital or other rules; and other factors described in the Company's latest Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and other reports filed with and furnished to the SEC which are available on its website at www.fsbwa.com and on the SEC's website at www.sec.gov.

Any of the forward-looking statements that the Company makes in this presentation and in the other public statements are based upon management's beliefs and assumptions at the time they are made and may turn out to be incorrect because of the inaccurate assumptions the Company might make, because of the factors illustrated above or because of other factors that cannot be foreseen by the Company. Therefore, these factors should be considered in evaluating the forward- looking statements, and undue reliance should not be placed on such statements. The Company does not undertake and specifically disclaim any obligation to revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements except as required by securities laws. These risks could cause the Company's actual results for 2023 and beyond to differ materially from those expressed in any forward-looking statements made by, or on behalf of the Company and could negatively affect its operating and stock performance.

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FRANCHISE OVERVIEW

Total Assets:

$2.91 billion (at June 30, 2023)

Headquartered:

Mountlake Terrace, WA

Branches:

29 *

  • Loan Production Offices: 14

ATM Locations:

20

Year Established:

1936

Quarterly Dividend:

$0.25**

  • Including headquarters and drive through banking in Aberdeen, WA. **Forty-second Consecutive Quarterly Dividend Announced

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CULTURE & HISTORY

Vision

Build a truly great place to work and bank

Mission

Guiding

Principles

Founded in 1936 as a

credit union

Live our Core Values and 'WOW' each other

and our customers every day

Employ smart,

Emphasis on

Best idea wins

Jim Collins'

driven, and

Good-to-Great

collaboration

nice people

Lessons

Converted to a stocksavings

Raised $27.6M in Capital ($25.7M net)

Announced forty-second consecutive

bank on July 9, 2012

w/secondary offering

quarterly cash dividend of $0.25 per share

Converted to a state

Completed a four-branch acquisition in

Completed Anchor Bancorp

charteredmutual savings

Q1 2016 resulting in $186.0M in new

acquisition on

bank on April 1, 2004

relationship-based deposits

November 15, 2018

1936

2004

2012

2016

2017

Completed a seven-branch acquisition in Q1 2023 resulting in $425.5M in new

relationship-based deposits

2018 2023

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RECENT BRANCH ACQUISITION

Desirable marketplace expansion that boasts similar characteristics to those in

Opportunity to expand

which we currently operate

Low-cost source of funding to support our strong asset generation capabilities

our markets and growth

prospects while

throughout the communities we serve, and to replace higher cost wholesale

maintaining safe and

funding

sound banking principles

Efficient deployment of our capital to support our continued growth and

profitability

Aligned deposit and

Expanding reach with seven new locations *

Retention of all branch and related personnel to support a smooth customer

lending strategies should

transition experience

provide a smooth

Ability to provide meaningful ongoing employment opportunities to acquired

customer transition

experience

staff

Preservation of a strong community banking culture

Continued strong focus on

enterprise risk

management and controls

  • Strong compliance culture, BSA / AML systems and risk management platforms
  • Strong regulatory capital at closing with attractive pro forma earnings to provide ongoing support
  • Enhanced geographic reach and diversification

* The transaction closed on February 24, 2023, with approximately $66 million in loans and $425 million in deposits

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Disclaimer

FS Bancorp Inc. published this content on 21 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 August 2023 22:32:06 UTC.