Federal Reserve Board announces approval of the application by FS Bancorp, Inc.

The Federal Reserve Board, the central bank of the United States, announced on Tuesday its decision to approve FS Bancorp, Inc.'s application to merge with Pacific West Bancorp. The approval allows FS Bancorp to indirectly acquire Pacific West Bank, both institutions headquartered in Oregon. The Federal Reserve cited compliance with relevant banking laws and regulations as the basis for its decision. The merger is subject to compliance with applicable state and federal requirements.

FS Bancorp, Inc., based in Mountlake Terrace, Washington, sought the merger to expand its banking operations through the acquisition of Pacific West Bancorp. Pacific West Bank, headquartered in West Linn, Oregon, operates as a state-chartered bank. The Federal Reserve's approval follows a review process to ensure the transaction meets regulatory standards and does not pose risks to the financial system.

The merger will result in FS Bancorp gaining control of Pacific West Bank's assets and operations, subject to final regulatory and legal conditions. The Federal Reserve noted that the transaction aligns with its responsibility to maintain a stable and secure banking system. No further approvals from the Federal Reserve are required for the merger to proceed, pending compliance with other applicable laws.

The approval does not constitute an endorsement of the financial condition or management of either institution. The Federal Reserve's decision reflects its role in overseeing bank mergers to ensure they do not adversely affect competition, financial stability, or consumer protection. The merger is expected to be completed following the fulfillment of all remaining regulatory and legal requirements.