FS Bancorp Inc
For the period ended Dec 31, 2023. Filed Mar 15, 2024.
View on SEC.govAbout this filing
A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.
FY2023 · Filed Mar 15, 2024
Extracted filing text, with the paragraph anchors used by the comparison.
See the whole filing, with its images and exhibitsContents
Investment Activities
***General.***Under Washington law, savings banks are permitted to invest in various types of liquid assets, including U.S. Treasury obligations, securities of various federal agencies, certain certificates of deposit of insured banks and savings institutions, banker’s acceptances, repurchase agreements, federal funds (“Fed Funds”), commercial paper, investment grade corporate debt securities, and obligations of states and their political subdivisions.
The Chief Financial Officer has the responsibility for the management of the Company’s investment portfolio, subject to consultation with the Chief Executive Officer, and the direction and guidance of the Board of Directors. Various factors are considered when making investment decisions, including the marketability, maturity and tax consequences of the proposed investment. The maturity structure of investments will be affected by various market conditions, including the current and anticipated slope of the yield curve, the level of interest rates, the trend of new deposit inflows, and the anticipated demand for funds via deposit withdrawals and loan originations and purchases.
The general objectives of the Company’s investment portfolio will be to provide liquidity when loan demand is high, to assist in maintaining earnings when loan demand is low and to maximize earnings while satisfactorily managing risk, including credit risk, reinvestment risk, liquidity risk, and interest rate risk. See “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations – Asset and Liability Management and Market Risk” of this Form 10–K.
The composition and contractual maturities of the investment portfolio at December 31, 2023, excluding FHLB stock, are indicated in the following table. Weighted-average yield for each maturity range includes coupon interest, discount accretion and premium amortization and has been calculated using the amortized cost of each security in that range. The yields on tax exempt municipal bonds have not been computed on a tax equivalent basis.
| 1 year or less · Over 1 year to 5 years · Over 5 to 10 years · Over 10 years · Total Securities | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Weighted · Weighted · Weighted · Weighted · Weighted | |||||||||||
| Amortized | Average | Amortized | Average | Amortized | Average | Amortized | Average | Amortized | Average | Fair | |
| (Dollars in thousands) | Cost | Yield | Cost | Yield | Cost | Yield | Cost | Yield | Cost | Yield | Value |
| Securities available-for-sale | |||||||||||
| U.S. agency securities | $922 | 2.91% | $3,947 | 1.23% | $11,972 | 2.53% | $4,310 | 2.32% | $21,151 | 2.26% | $18,018 |
| Corporate securities | 1,000 | 5.66 | 6,000 | 7.00 | 4,000 | 5.26 | 2,000 | 2.05 | 13,000 | 5.60 | 12,872 |
| Municipal bonds | 1,013 | 3.06 | 757 | 3.10 | 7,603 | 2.23 | 129,430 | 1.93 | 138,803 | 1.96 | 119,447 |
| Mortgage-backed securities: | |||||||||||
| Federal National Mortgage Association | — | — | 11,076 | 2.85 | 42,546 | 2.82 | 22,747 | 2.54 | 76,369 | 2.74 | 66,275 |
| Federal Home Loan Mortgage Corporation | — | — | — | — | 23,116 | 5.54 | 9,195 | 3.73 | 32,311 | 5.02 | 31,376 |
| Government National Mortgage Association | — | — | 728 | 2.93 | 3,447 | 2.33 | — | — | 4,175 | 2.43 | 3,597 |
| U.S. Small Business Administration securities | 198 | 2.63 | 1,860 | 3.10 | 21,420 | 5.59 | 19,408 | 5.28 | 42,886 | 5.33 | 41,348 |
| Total securities available-for-sale | 3,133 | 3.82 | 24,368 | 3.64 | 114,104 | 3.89 | 187,090 | 2.45 | 328,695 | 3.05 | 292,933 |
| Securities held-to-maturity | |||||||||||
| Corporate securities | — | — | — | — | 8,500 | 5.05 | — | — | 8,500 | 5.05 | 7,666 |
| Total securities | $3,133 | 3.82% | $24,368 | 3.64% | $122,604 | 3.97% | $187,090 | 2.45% | $337,195 | 3.10% | $300,599 |
As a member of the FHLB of Des Moines, the Company had $2.1 million in stock at December 31, 2023. For the year ended December 31, 2023, the Company received $245,000 in dividends.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.