Chicago, Feb. 10 – FS Bancorp, Inc. priced $50 million of fixed-to-floating-rate subordinated notes in a private placement due Feb. 15, 2031, according to a press release.
The initial fixed rate is 3.75% per year. The notes are callable starting Feb. 15, 2026, also the reset date when the interest resets to SOFR plus 337 basis points.
The company entered into a registration rights agreement with the purchasers of the notes. The company has agreed to take certain actions to provide for the exchange of the notes for subordinated notes that are registered under the Securities Act of 1933, as amended, and have substantially the same terms of the notes.
Additional interest will be due if the company fails to meet its obligations under the registration rights agreement.
Raymond James & Associates, Inc. was the lead placement agent.
Co-placement agents were D.A. Davidson & Co. and Janney Montgomery Scott.
Proceeds will be used for general corporate purposes, including providing capital to support the growth of the bank, potential share repurchase activities and potential acquisition opportunities.
The bank holding company for 1st Security Bank of Washington is based in Mountlake Terrace, Wash.
| Issuer: | FS Bancorp, Inc.
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| Issue: | Fixed-to-floating-rate subordinated notes
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| Amount: | $50 million
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| Maturity: | Feb. 15, 2031
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| Placement agents: | Raymond James & Associates, Inc., D.A. Davidson & Co. and Janney Montgomery Scott
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| Coupon: | 3.75% initial rate; resets to SOFR plus 337 bps on Feb. 15, 2026
|
| Call option: | Callable starting Feb. 15, 2026
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| Announcement date: | Feb. 10
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| Distribution: | Private placement
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