FS Bancorp is the holding company for 1st Security Bank, a community bank headquartered in Mountlake Terrace, Washington, serving the Puget Sound region and select Pacific Northwest markets through 27 branches and 13 loan production offices. The bank's core business is lending across commercial real estate (~37% of gross loans), one-to-four-family residential mortgages (~24%), consumer loans (~20%), construction and development (~15%), and commercial business loans (~12%). The bank earns money primarily through net interest income — the spread between rates earned on loans and investments and rates paid on deposits and borrowings. Two niches distinguish 1st Security Bank from typical community banks. First, the bank is an active residential speculative construction lender in the Puget Sound area, a niche it built after larger banks exited the segment following the 2008 financial crisis. Second, the bank originates indirect home improvement loans through a network of contractors and dealers across 13 states, financing products like windows, roofing, and HVAC for homeowners. This channel provides a scalable origination footprint well beyond the branch network, though it carries the highest charge-off rate in the loan book. The bank also operates a residential mortgage banking business, originating and selling loans into the secondary market while retaining servicing rights on a portion of sales. Funding comes primarily from retail deposits, supplemented by brokered deposits and FHLB advances. The bank has grown its loan portfolio organically and through acquisitions, most recently purchasing seven branches from Columbia State Bank in 2023.