MOUNTLAKE TERRACE, Wash., Jan. 30, 2013 (GLOBE NEWSWIRE) -- FS Bancorp, Inc. (Nasdaq:FSBW) ("FS Bancorp" or "the Company"), the holding company for 1st Security Bank of Washington ("the Bank") today reported 2012 fourth quarter net income of $1.1 million, or $0.36 per diluted share, compared to $312,000 for the fourth quarter ended December 31, 2011. The 2012 fourth quarter net income of $1.1 million compares to $3.3 million for the third quarter of 2012 which included a $2.3 million reversal of the valuation allowance for the deferred tax asset. Net income for the year ended December 31, 2012 was $5.3 million including the $2.3 million reversal of the valuation allowance for the deferred tax asset compared to net income of $1.5 million for the year ended December 31, 2011. The Company completed its initial public offering on July 9, 2012 with the issuance of 3,240,125 shares of its common stock, which generated gross proceeds of $32.4 million; therefore, operating results before that date are for the Bank only.
"The focus on the successful implementation of the business plan has allowed the Bank to invest in an expanded infrastructure and also, at the same time, continue to increase earnings," stated Joe Adams, CEO of the Company and the Bank. "The Board is pleased with the diversified revenue streams that include expanded business lending, construction lending, and home lending to complement our strength in consumer lending."
As previously disclosed in the third quarter Form 10-Q, the Company completed the sale of 366 consumer marine loans on December 14, 2012 that had an aggregate principal balance of $12.6 million. In connection with the sale, a $67,000 reserve for potential loan recourse was established and will remain in effect until June 12, 2013. The sale of marine loans resulted in a pre-tax gain of $115,000, net of the reserve. The primary purpose in selling these consumer loans was to enable the Company to continue to diversify its balance sheet and manage interest rate risk.