FS Bancorp Announces Completion of Merger with Pacific West Bancorp

What Happened
FS Bancorp, Inc. (FSBW), parent of 1st Security Bank of Washington, announced that it completed its previously announced acquisition of Pacific West Bancorp, the parent of Pacific West Bank (Portland, OR). The merger was completed pursuant to the Agreement and Plan of Merger dated February 25, 2026; Pacific West Bank was merged into 1st Security Bank of Washington, with 1st Security Bank surviving. FS Bancorp issued a press release on August 20, 2026 announcing the closing.

Key Details

• Merger Agreement dated February 25, 2026; press release announcing closing dated August 20, 2026.
• Aggregate consideration: 430,176 shares of FS Bancorp common stock and $16,832,742 in cash.
• Pacific West shareholders could elect stock or cash consideration, with proration applied per the merger agreement.
• The Merger Agreement was included as Exhibit 2.1 to FS Bancorp’s Form S-4 filed June 29, 2026 (referenced in the 8-K).

Why It Matters
The transaction replaces Pacific West Bancorp’s standalone operations by folding Pacific West Bank into 1st Security Bank of Washington and changes FS Bancorp’s capital structure through issuance of 430,176 new shares and a cash payment of about $16.8 million. These concrete actions affect outstanding share count and FS Bancorp’s cash resources and are material items investors should note when evaluating the company’s capital position and ongoing integration activities.