FS Bancorp to Acquire Pacific West Bancorp in Merger

FS Bancorp ( (FSBW) ) just unveiled an announcement.

FS Bancorp, Inc. and Pacific West Bancorp, two Pacific Northwest community banking companies, announced on February 25, 2026, that they signed a definitive merger agreement under which Pacific West will merge into FS Bancorp in a stock-and-cash deal valued at about $34.6 million, or $12.52 per share. The combination would create a pro forma institution with roughly $3.6 billion in assets, $3.0 billion in loans and deposits, and 31 branches across Washington and Oregon, expanding FS Bancorp’s presence in the Portland-Vancouver market while giving Pacific West customers access to broader capital resources and products.

Under the terms, Pacific West shareholders may elect FS Bancorp stock or cash from an aggregate consideration of 430,176 shares and $16.8 million in cash, leaving them with about 5.4% of FS Bancorp’s outstanding common stock upon closing. The boards of both companies have unanimously approved the transaction, which is projected to be immediately accretive to FS Bancorp’s earnings per share and modestly dilutive to tangible book value with a 2.4-year earnback, and the deal is expected to close in the third quarter of 2026, subject to shareholder and regulatory approvals.

The most recent analyst rating on (FSBW) stock is a Buy with a $47.00 price target. To see the full list of analyst forecasts on FS Bancorp stock, see the FSBW Stock Forecast page.

Spark’s Take on FSBW Stock

According to Spark, TipRanks’ AI Analyst, FSBW is a Outperform.

FSBW scores well on solid financial performance—especially strong cash flow conversion and healthy profitability—supported by attractive valuation (low P/E and a solid dividend yield). Technicals are moderately positive with price above key moving averages, while recent corporate updates are constructive but tempered by a noted credit provision.

To see Spark’s full report on FSBW stock, click here.

More about FS Bancorp

FS Bancorp, Inc., based in Washington, is the holding company for 1st Security Bank of Washington, a community-focused lender offering loan and deposit services primarily to small- and middle-market businesses and individuals in Washington and Oregon. Pacific West Bancorp, headquartered in West Linn, Oregon, operates Pacific West Bank, a commercially oriented community bank serving the greater Portland-Vancouver metro area through four branches.

Together, the banks concentrate on relationship-based commercial and retail banking in the Pacific Northwest, with branch networks spanning the Puget Sound region, the Tri-Cities in Washington, and key submarkets in and around Portland and Vancouver. Their combined footprint targets local businesses, nonprofits, professionals, and consumers, positioning the merged entity as a larger regional player with a broadened customer base and deeper market penetration across the corridor between Seattle and Portland.

Average Trading Volume: 11,178

Technical Sentiment Signal: Strong Buy

Current Market Cap: $306.6M

For an in-depth examination of FSBW stock, go to TipRanks’ Overview page.