FS Bancorp and Pacific West Bancorp signed a definitive merger agreement and plan of merger whereby Pacific West will merge into FS Bancorp in a stock and cash transaction valued at approximately $34.6 million. As of Dec. 31, 2025, on a pro forma consolidated basis, the combined company would have approximately $3.6 billion in assets, $3 billion in loans, $3 billion in deposits and 31 branch locations throughout the Pacific Northwest.
“This partnership with Pacific West represents a compelling step forward in our continued expansion across the Pacific Northwest,” Matthew Mullet, president of FS Bancorp and CEO of 1st Security Bank of Washington, said. “Pacific West has built a customer focused commercial banking franchise with deep roots in the Portland-Vancouver metro area. Combining our organizations brings together complementary strengths that enhance our ability to serve our customers and communities.”
Jason Wessling, president and CEO of Pacific West, added, “We are excited to join FS Bancorp, a company that shares our commitment to relationship banking and community engagement. This merger provides Pacific West with access to broader capital resources, enhanced technology and a wider suite of products and services that will benefit our customers, employees and the communities we serve.”
Under terms of the agreement, the aggregate consideration will consist of 430,176 shares of FS Bancorp common stock and $16,832,742 in cash. Pacific West shareholders will have the right to elect shares of FS Bancorp common stock or cash, subject to proration as provided in the agreement. Based on the closing price of FS Bancorp common stock of $41.26 on Feb. 25, 2026, the consideration value for Pacific West was $34.6 million, or approximately $12.52 per share. Upon completion of the merger, Pacific West shareholders would hold, in aggregate, approximately 5.4% of FS Bancorp’s outstanding common stock.
The transaction is expected to be immediately accretive to FS Bancorp’s earnings per share, with projected 2027 EPS accretion of 7.4%, and dilutive to FS Bancorp’s tangible book value with projected TBV dilution at close of 2.2% and an earnback period of approximately 2.4 years.
The boards of directors of FS Bancorp and Pacific West have unanimously approved the proposed merger. The closing is expected to occur in Q3/26 and is subject to customary closing considerations, including obtaining approval by Pacific West’s shareholders and bank regulatory authorities.
D.A. Davidson served as financial advisor to FS Bancorp and Breyer & Associates served as legal counsel. Raymond James & Associates served as financial advisor to Pacific West and Buchalter APC served as legal counsel.
