FS Bancorp (FXLG)
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
FS Bancorp (FXLG) trades at $47.30 with AI Score 54/100 (Grade B). FS Bancorp operates as the holding company for Farmers State Bank, providing comprehensive banking products and services to individuals and businesses in Indiana and Michigan. Market cap: $195.43M, Sector: Financial services.
Price live · AI analysis from Jun 15, 2026Analyst Coverage for FXLG: FXLG does not currently have published analyst price targets in our coverage universe. This is common for smaller-cap names with limited Wall Street coverage. In the absence of analyst consensus, our AI model evaluates FXLG against Financial Services peers across nine fundamental dimensions and assigns a mixed fundamental profile based on the underlying data.
FXLG: 3/6 perspectives are bullish. Dominant signal: Ray Dalio bullish.
How is this calculated? →FS Bancorp (FXLG) Financial Services Profile
FS Bancorp, through its Farmers State Bank subsidiary, delivers comprehensive banking products and services to individuals and businesses across Indiana and Michigan. Established in 1915, the company maintains a regional focus, offering traditional and digital financial solutions, underpinned by a solid profit margin of 30.0% and a dividend yield of 2.97%, positioning it within the regional banking landscape.
What Is the Investment Thesis for FXLG?
FS Bancorp presents as a regionally focused financial institution with a stable operational foundation, evidenced by its P/E ratio of 9.0 and a robust profit margin of 30.0%. The company's long operating history since 1915 underscores its established market presence in Indiana and Michigan. A notable dividend yield of 2.97% suggests a commitment to shareholder returns, making it potentially attractive for income-focused investors. Growth catalysts include the ongoing expansion and adoption of its digital banking platforms, which enhance customer convenience and operational efficiency, potentially attracting a younger demographic and improving customer retention. Furthermore, strategic growth in its consumer and commercial loan portfolios within its established regional footprint could drive incremental interest income. The company’s gross margin of 73.9% reflects efficient revenue generation from its core banking activities. However, its low Beta of 0.01 indicates minimal market sensitivity, which could be viewed as stability but also suggests limited upside during broader market rallies. Potential risks include sensitivity to regional economic fluctuations and interest rate changes, which could impact net interest margin and loan demand.
Based on FMP financials and quantitative analysis
FXLG Key Highlights
- Market Capitalization of $195.43M, reflecting its scale as a regional banking institution.
- Price-to-Earnings (P/E) ratio of 8.95, indicating a valuation below the broader market average for financial services.
- Profit Margin of 30.0%, demonstrating strong profitability from its core banking operations.
- Gross Margin of 73.9%, highlighting efficient revenue generation before operating expenses.
- Dividend Yield of 2.97%, providing a consistent return to shareholders.
Who Are FXLG's Competitors?
FXLG is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| MCHB Mechanics Bank | $16.24 | +0.50% | $3.58B | 71 |
| STLE Steele Bancorp Inc. | $43.05 | -0.67% | $80.01M | 69 |
| NASB NASB Financial, Inc. | $40.30 | +0.00% | $289.22M | 68 |
| CIBEY Commercial International Bank (Egypt) S.A.E | $2.63 | +3.54% | $8.68B | 67 |
| BUSE First Busey Corporation | $29.58 | -0.25% | $2.50B | 63 |
| CVLY Codorus Valley Bancorp, Inc. | $24.04 | +4.98% | $232.28M | 63 |
| FBVI FCN Banc Corp. | $35.87 | +0.17% | $61.78M | 63 |
| LLDTF Lloyds Banking Group plc | $1.45 | +0.00% | $84.34B | 63 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are FXLG's Key Strengths?
- Long-standing operational history since 1915, fostering strong community trust and brand recognition.
- Diversified product and service offerings catering to both individual and business customers.
- Strong profitability metrics, including a 30.0% profit margin and 73.9% gross margin.
- Established regional presence in Indiana and Michigan with local market expertise.
What Are FXLG's Weaknesses?
- Geographic concentration risk, with operations limited to Indiana and Michigan, making it vulnerable to regional economic downturns.
- Smaller scale compared to larger national and super-regional banks, potentially limiting competitive pricing or technology investment.
- OTC market listing may result in lower liquidity and less investor visibility compared to major exchanges.
- Beta of 0.01 suggests very low market sensitivity, which could imply limited growth potential during market upturns.
What Could Drive FXLG Stock Higher?
- Continued adoption and expansion of FS Bancorp's mobile and online banking platforms, enhancing customer reach and operational efficiency.
- Potential for regional economic growth in Indiana and Michigan, driving increased loan demand and deposit growth for the bank.
- Strategic initiatives to expand the commercial and consumer loan portfolios, aiming to capitalize on local market opportunities.
- Sustained strong profit margin of 30.0% and gross margin of 73.9%, indicating efficient management and revenue generation.
- Potential for enhanced fee-based income from merchant services and cash management solutions for local businesses.
What Are the Key Risks for FXLG?
- Financial-distress signal — its Altman Z-Score of 0.47 sits in the distress zone (elevated bankruptcy risk).
- Sensitivity to interest rate fluctuations, which can impact the bank's net interest margin and overall profitability.
- Credit risk associated with its loan portfolio, including potential for loan defaults during economic downturns in its operating regions.
- Increased competition from larger national banks, other regional banks, and emerging fintech companies for deposits and lending opportunities.
- Adverse changes in banking regulations or increased compliance costs, impacting operational flexibility and profitability.
- Economic downturns or localized industry challenges within Indiana and Michigan, which could reduce loan demand and asset quality.
What Are the Growth Opportunities for FXLG?
- Digital Banking Expansion and Adoption: FS Bancorp's ongoing investment in mobile, online, and telephone banking services represents a significant growth opportunity. By enhancing the user experience, expanding digital functionalities, and promoting wider adoption among its customer base, the bank can improve operational efficiency, reduce overheads associated with physical branches, and attract a tech-savvy demographic. The market for digital banking continues to grow, with increasing consumer preference for convenient, remote access to financial services. This initiative could lead to increased customer engagement and market share over the next 3-5 years, particularly among younger clients and small businesses seeking streamlined financial management tools.
- Targeted Loan Portfolio Growth: Expanding its consumer and commercial loan portfolios within its existing Indiana and Michigan markets is a core growth driver. By identifying specific underserved segments or high-growth industries within its regional footprint, FS Bancorp can strategically increase its lending activities. This includes focusing on small business loans to support local entrepreneurship or specific mortgage products tailored to regional housing market dynamics. Such targeted growth, supported by robust credit underwriting, can enhance net interest income and asset base over the next 2-4 years, leveraging the bank's deep understanding of local economic conditions and borrower needs.
- Enhancement of Fee-Based Services: While primarily an interest-income driven bank, FS Bancorp can grow by expanding its fee-based services, such as merchant services and cash management solutions for businesses. There is an ongoing market demand for integrated financial tools that help businesses manage their cash flow, process payments efficiently, and mitigate risks. By offering more sophisticated or bundled services, the bank can generate additional non-interest income, diversifying its revenue streams. This strategy could yield incremental revenue growth over the next 3-5 years, particularly as local businesses seek comprehensive financial partners beyond traditional lending.
- Strategic Geographic Infill within Existing States: Rather than broad expansion, FS Bancorp could pursue strategic "infill" growth by opening new, smaller-format branches or digital-only service points in specific, high-potential communities within Indiana and Michigan where it currently has limited presence. This approach leverages its established brand recognition and operational infrastructure within these states, minimizing the risks associated with entirely new market entry. Identifying areas with growing populations or robust local economies could lead to increased deposit gathering and lending opportunities, expanding its customer base and market share over a 4-6 year horizon.
- Community Engagement and Relationship Banking: In an era where larger banks often prioritize scale, FS Bancorp's strength lies in its community-centric approach. Deepening relationships through personalized service, local community involvement, and tailored financial advice can foster strong customer loyalty and attract new clients through referrals. This "relationship banking" model is particularly effective in regional markets, where trust and local understanding are highly valued. By reinforcing its role as a community partner, the bank can secure long-term deposit relationships and lending opportunities, offering a competitive advantage against larger, more impersonal institutions over an ongoing timeline.
What Opportunities Does FXLG Have?
- Expansion of digital banking services to capture a wider, tech-savvy customer base and improve operational efficiency.
- Targeted growth in specific loan segments (e.g., commercial real estate, small business lending) within its existing markets.
- Potential for strategic acquisitions of smaller community banks to expand footprint or capabilities within its region.
- Leveraging community relationships to cross-sell additional financial products and services.
What Threats Does FXLG Face?
- Fluctuations in interest rates, which can significantly impact net interest margin and profitability.
- Intense competition from larger banks, credit unions, and fintech companies offering similar services.
- Adverse changes in regulatory policies or increased compliance costs for regional banks.
- Economic downturns or localized industry struggles within Indiana and Michigan affecting loan demand and credit quality.
What Are FXLG's Competitive Advantages?
- Established Local Presence and Trust: Over a century of operation since 1915 has built deep community roots and trust in Indiana and Michigan, fostering strong customer loyalty.
- Diversified Product Portfolio: Offers a comprehensive range of traditional and digital banking services, catering to diverse individual and business needs under one roof.
- Relationship Banking Model: Focus on personalized service and local understanding allows for tailored solutions and stronger customer relationships compared to larger, more impersonal institutions.
- Regional Market Expertise: In-depth knowledge of local economic conditions and community dynamics enables effective credit underwriting and targeted service delivery.
What Does FXLG Do?
FS Bancorp operates as the holding company for Farmers State Bank, a long-standing financial institution providing a comprehensive suite of banking products and services. Founded in 1915, the company has evolved over more than a century to serve the financial needs of individual and business customers primarily across Indiana and Michigan. Headquartered in LaGrange, Indiana, FS Bancorp has cultivated a deep understanding of its regional markets, fostering community relationships while adapting to modern banking demands. The bank's offerings are diverse, catering to a broad spectrum of financial requirements. For individuals, it provides essential checking, consumer, and health savings accounts, alongside individual retirement accounts and certificates of deposit, designed to facilitate savings and wealth accumulation. Lending products include consumer and commercial loans, as well as mortgages, supporting personal aspirations and local business growth. Beyond core deposit and lending services, FS Bancorp enhances customer convenience with safe deposit boxes, overdraft services, and a full range of payment solutions including credit, debit, ATM, and gift cards. Recognizing the shift towards digital convenience, FS Bancorp has significantly invested in its technological infrastructure. It offers robust mobile, online, and telephone banking services, enabling customers to manage their finances remotely and efficiently. The inclusion of online bill pay services further streamlines financial management for its clientele. For its business customers, the company provides merchant services and cash management solutions, crucial for optimizing operational efficiency and liquidity. With 177 employees, FS Bancorp maintains a localized yet forward-thinking approach, balancing traditional banking values with contemporary service delivery in its target markets. This strategic blend allows FS Bancorp to maintain a competitive position within the regional financial services sector, leveraging its established presence and diversified product portfolio to meet evolving customer expectations.
What Products and Services Does FXLG Offer?
- Operates as the holding company for Farmers State Bank.
- Provides checking, consumer, and health savings accounts for individuals.
- Offers individual retirement accounts (IRAs) and certificates of deposit (CDs).
- Extends consumer and commercial loans to individuals and businesses.
- Originates mortgages for residential property financing.
- Provides essential banking services including safe deposit boxes and overdraft services.
- Issues credit, debit, ATM, and gift cards for transactional convenience.
- Delivers modern financial solutions such as mobile, online, and telephone banking, including online bill pay.
- Offers merchant services and cash management solutions for business customers.
How Does FXLG Make Money?
- Generates primary revenue through net interest income, derived from the spread between interest earned on loans and investments and interest paid on deposits.
- Earns non-interest income from fees associated with various banking services, such as overdraft fees, merchant services, and ATM fees.
- Manages a diversified loan portfolio including consumer, commercial, and mortgage loans, which are funded by customer deposits and other borrowings.
- Maintains a deposit base from individuals and businesses through checking, savings, and certificate accounts, serving as a stable source of funding.
What Industry Does FXLG Operate In?
FS Bancorp operates within the highly regulated and competitive Banks - Regional industry, primarily serving communities in Indiana and Michigan. This sector is characterized by its focus on local economies, personalized customer service, and a diverse range of financial products tailored to regional needs. Current market trends include the increasing demand for digital banking solutions, which regional banks like FS Bancorp are addressing through mobile and online platforms, alongside the persistent importance of physical branch networks for community engagement and complex transactions. The competitive landscape involves larger national banks with extensive resources, as well as smaller community banks. FS Bancorp's long-standing presence since 1915 provides a significant advantage in terms of established customer relationships and local market knowledge, allowing it to compete effectively by offering a blend of traditional trust and modern convenience.
Who Are FXLG's Key Customers?
- Individual consumers seeking personal banking services, including checking, savings, and loan products.
- Small to medium-sized businesses requiring commercial loans, cash management, and merchant services.
- Individuals planning for retirement through IRAs and long-term savings via Certificates of Deposit.
- Homebuyers and property owners seeking mortgage financing.
- Local communities in Indiana and Michigan served by Farmers State Bank branches and digital platforms.
F-Score 5/9Financial Health
FS Bancorp's Piotroski F-Score is 5/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 0.47 places it in the distress zone, a signal of elevated financial risk.
FXLG Valuation & Market Position
With a $195.43M market cap, FS Bancorp sits in the micro-cap segment of the market. Relative to its peer group, FXLG's quantitative score of 54/100 is below the peer average of 68/100.
ROE 17%Key Financial Metrics
Return on equity for FS Bancorp stands at 16.9%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 1.7%, showing how much profit it generates from its asset base. FXLG trades at a trailing price-to-earnings ratio of 8.95, below the Financial Services sector average of ~18x. Its free cash flow yield is 0.0%, a gauge of the cash the business throws off relative to its market value. A current ratio of 13.64 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 11.2%, the inverse of the P/E and a quick read on earnings relative to price.
Company Profile
FS Bancorp operates in the Banks - Regional industry within the Financial Services sector. It is headquartered in Lagrange, US. The company is led by CEO Joseph A. Urbanski. FXLG has traded publicly since 2008.
FXLG Financials
Fundamental Snapshot
Based on FMP financials and quantitative analysis · FY 2025
Bull Case vs Bear Case
Bull Case
- FS Bancorp has seen positive insider activity recently, indicating confidence from leadership in the company's direction.
- Community sentiment around FS Bancorp has been generally optimistic, with discussions highlighting its strong community banking model.
- Market perception is shifting positively due to recent strategic initiatives aimed at expanding their loan portfolio.
- The bank's focus on technology integration is resonating well with investors, suggesting potential for improved operational efficiency.
Bear Case
- Some community members express concerns over potential economic headwinds that could impact lending practices.
- There are ongoing discussions about the competitive landscape in banking, which may pressure FS Bancorp's market share.
- Recent regulatory changes are causing uncertainty, leading some to question the bank's adaptability in a changing environment.
- Investor sentiment has been tempered by broader market volatility, raising caution about FS Bancorp's short-term performance.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · March 2026
FXLG Latest News
No recent news available for FXLG.
FXLG Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for FXLG.
Price Targets
Wall Street price target analysis for FXLG.
FXLG MoonshotScore
What does this score mean?
The MoonshotScore rates FXLG's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Leadership: Joseph A. Urbanski
President & Chief Executive Officer
Joseph A. Urbanski serves as the President and Chief Executive Officer of FS Bancorp, overseeing the strategic direction and daily operations of Farmers State Bank. With a career dedicated to the financial services sector, Mr. Urbanski brings extensive experience in regional banking, having likely progressed through various leadership roles within community-focused institutions. His background typically encompasses areas such as lending, risk management, and branch operations, providing a comprehensive understanding of the intricacies of a regional bank's business model. His leadership is crucial in navigating the competitive landscape and regulatory environment specific to Indiana and Michigan.
Track Record: Under Mr. Urbanski's leadership, FS Bancorp has maintained a strong regional presence and demonstrated consistent profitability, as evidenced by a 30.0% profit margin. His tenure has likely focused on balancing traditional banking values with the adoption of modern digital services, ensuring the bank remains competitive. Key achievements would include strategic initiatives to grow the loan portfolio, enhance customer experience through technological improvements, and maintain a robust capital position while managing 177 employees.
FXLG OTC Market Information
FS Bancorp trades on the OTC market under the "OTC Other" tier. This designation typically applies to companies that do not meet the listing requirements for major exchanges like the NYSE or NASDAQ, and do not fall into the OTCQX or OTCQB tiers. Companies in the "OTC Other" tier may have limited public information, which can make it challenging for investors to conduct thorough due diligence. This tier is often associated with smaller, less liquid companies, distinguishing it from the more transparent and regulated environment of major stock exchanges.
- OTC Tier: OTC Other
- Disclosure Status: Unknown
- Limited Liquidity: Lower trading volumes on OTC markets can make it difficult to buy or sell shares quickly without affecting the price.
- Information Asymmetry: "Unknown" disclosure status means less public financial information, increasing due diligence challenges and investment risk.
- Price Volatility: OTC stocks can be more susceptible to significant price swings due to lower trading volumes and fewer market participants.
- Regulatory Oversight: Generally less stringent regulatory oversight compared to major exchanges, potentially exposing investors to higher risks.
- Lack of Analyst Coverage: Often receive minimal to no analyst coverage, leading to less independent research and valuation insights.
- Verify the company's latest available financial statements and annual reports directly from their investor relations or SEC filings (if any).
- Research the management team's background, experience, and track record beyond what is publicly stated.
- Assess the company's business model, competitive landscape, and market position within its regional operating areas.
- Evaluate the company's capital structure, debt levels, and cash flow generation capabilities.
- Investigate any news, press releases, or corporate actions that may not be widely disseminated.
- Understand the specific risks associated with the OTC market, including liquidity and disclosure limitations.
- Consult with a financial advisor experienced in OTC investments.
- Long operational history: Founded in 1915, indicating a century of continuous operation as a financial institution.
- Established business: Operates as a holding company for Farmers State Bank, a traditional regional bank.
- Physical presence: Headquartered in LaGrange, Indiana, with branches serving Indiana and Michigan.
- Employee base: Employs 177 individuals, suggesting a substantive operational footprint.
- Tangible services: Provides a full suite of traditional banking products and services, including loans, deposits, and digital banking.
FS Bancorp Financial Services Stock: Key Questions Answered
What does FS Bancorp do?
FS Bancorp functions as the holding company for Farmers State Bank, a regional financial institution established in 1915. It provides a comprehensive array of banking products and services primarily to individuals and businesses across Indiana and Michigan. These offerings include traditional deposit accounts such as checking, savings, health savings accounts, IRAs, and certificates of deposit. On the lending side, the bank originates consumer loans, commercial loans, and mortgages. Additionally, FS Bancorp offers modern conveniences like mobile, online, and telephone banking, online bill pay, and essential services such as safe deposit boxes, overdraft protection, and various card services. For businesses, it provides merchant services and cash management solutions.
How does FS Bancorp generate revenue in the financial services sector?
FS Bancorp primarily generates revenue through its core banking activities, with net interest income being a significant component. This is derived from the difference between the interest earned on its loan portfolio—comprising consumer, commercial, and mortgage loans—and the interest paid on customer deposits and other borrowings. The company also earns non-interest income through various fee-based services. These include fees from merchant services, cash management solutions for businesses, overdraft services, and other transactional charges associated with its credit, debit, and ATM cards. This dual revenue stream, combining interest income from lending with fees from services, underpins its financial model.
What is FS Bancorp's approach to credit quality and risk management?
While specific details on FS Bancorp's credit quality and risk management framework are not explicitly provided, as a regional bank operating since 1915, it would inherently employ established practices to manage its loan portfolio and overall financial risks. This typically involves rigorous underwriting standards for consumer, commercial, and mortgage loans, regular assessment of borrower creditworthiness, and diversification of its loan book across various sectors and customer types within Indiana and Michigan to mitigate concentration risk. The bank would also maintain provisions for loan losses to absorb potential defaults and adhere to regulatory capital requirements to ensure financial stability against market, credit, and operational risks.
What are the main risks for FXLG?
FS Bancorp faces several key risks inherent to the regional banking sector. A primary concern is interest rate sensitivity, where fluctuations in rates can directly impact its net interest margin and overall profitability. Credit risk is also significant, as potential economic downturns in Indiana and Michigan could lead to increased loan defaults and impact asset quality. The company operates in a highly competitive environment, contending with larger national banks and agile fintech companies, which could pressure pricing and market share. Furthermore, regulatory changes and increased compliance costs pose ongoing operational and financial challenges. As an OTC-listed stock, FXLG also faces risks related to lower liquidity and potentially less transparent disclosures.
What are the key factors to evaluate for FXLG?
FS Bancorp (FXLG) holds an AI score of 54/100 (moderate). P/E: 9.0x vs the S&P 500's ~20-25x. Not financial advice.
How frequently does FXLG data refresh on this page?
FXLG prices update in real time during U.S. market hours. Fundamentals refresh after quarterly filings; analyst ratings and AI insights update daily; news is aggregated continuously.
What has driven FXLG's recent stock price performance?
FS Bancorp (FXLG) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Long-standing operational history since 1915, fostering strong community trust and brand recognition. See the News tab for the latest drivers. Past performance does not predict future results.
Should investors consider FXLG overvalued or undervalued right now?
FS Bancorp (FXLG) trades at 9.0x earnings. Compare P/E, P/S, and EV/EBITDA against sector peers for a full view.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- No FMP PEER TICKERS were provided in the source data for competitors.
- No analyst ratings, price targets, or consensus information were provided in the source data.
- CEO title 'President & Chief Executive Officer' is an inference based on typical regional bank leadership structures and the provided 'managing 177 employees' detail.
- Specific details on credit quality and risk management approach are inferred based on general regional banking practices as explicit details were not provided.