What 1st Security Bank does

1st Security Bank of Washington is a Washington-state chartered commercial bank and wholly-owned operating subsidiary of FS Bancorp, Inc. (NASDAQ: FSBW), a publicly traded holding company. Founded in 1930 and headquartered in Lynnwood, Washington with a presence listed in Mountlake Terrace, the bank operates as a relationship-focused community institution serving individual consumers and small businesses, with primary emphasis on residential mortgage origination. The bank lends on single-family primary residences, condominiums, PUDs, second homes, vacation properties, and investment properties across an eight-state footprint including Washington, Oregon, Idaho, Montana, Arizona, Colorado, Nevada, and California.

The bank's product suite centers on a digital mortgage origination platform branded "1st Security Bank of Washington Home Lending," delivered through the fsbwa.mymortgage-online.com web application and a self-service borrower portal called "Loan App Elite." This online infrastructure is operated in conjunction with ICE Mortgage Technology (referenced via the platform's privacy policy) and complements a network of physical branches plus a team of loan officers who provide relationship-based lending services. Distribution runs through the branch network (31 branches across Washington and Oregon following the announced Pacific West Bancorp merger), loan-officer referrals, and the online application portal, serving a horizontally segmented base of individual homebuyers, small businesses, and multi-state mortgage customers.

Monetization follows a standard community banking model. Primary revenue is net interest income on residential mortgages, commercial loans, and securities (net interest margin of 4.31%), supplemented by transaction-based fees from mortgage originations and home lending activity. The bank has demonstrated sustained profitability, posting full-year 2025 net income of $33.3 million and Q1 2026 net income of $7.8 million, and has paid 53 consecutive quarterly cash dividends. The bank's competitive pitch is local decision-making speed combined with bank-level product breadth and resources.

Name

1st Security Bank

Legal name

1st Security Bank of Washington

Website

https://fsbwa.mymortgage-online.com

Company type

Private

Founded year

1930

Operating status

Operating

Headcount range

251–500 employees

Short description

1st Security Bank of Washington is a community bank and residential mortgage lender that operates a branch network across Washington and Oregon and originates home loans in eight Western U.S. states through an online platform and loan officers, serving individual homebuyers and small businesses.

Ownership category

akta.pro rank

Headquarters

HQ city

Mountlake Terrace

HQ country

United States

HQ region

North America

Offices3 records

Markets served

GTM type

B2B and B2C

Offering type

Services

Cost components

Personnel, Operations, Infrastructure, Technology or R&D, Marketing or Sales

Revenue model

1. Net Interest Income: Core banking revenue from interest earned on loans (particularly residential mortgages and commercial loans) and securities, offset by interest paid on deposits. Net interest margin of 4.31%.
2. Home Lending Operations: Revenue from mortgage originations and home lending activities, including both purchase and refinance transactions across multiple states.

Go-to-market motion1 record

Distribution channels3 records

Marketing channels3 records

Core offering

1st Security Bank of Washington is a state-chartered community bank and mortgage lender offering home lending products (single family primary residences, condominiums, PUDs, second homes, vacation properties, and investment properties) across eight states, along with deposit accounts and small business banking services. The bank operates through a 31-branch network across Washington and Oregon, supported by an online mortgage application platform and a team of loan officers.

Product overview

1st Security Bank of Washington operates primarily as a mortgage lender and community bank. The company's core offerings include a home lending platform (1st Security Bank of Washington Home Lending) that enables borrowers to apply for various mortgage products including loans for single family primary residences, condominiums, PUDs, second homes, vacation properties, and investment properties across eight states. The bank also provides an online borrower application portal (Loan App Elite) for loan processing. The bank has announced a merger with Pacific West Bancorp to expand into the Portland, Oregon market.

Differentiator

Problem solved

Functional benefit

Products and services

• 1st Security Bank of Washington Home Lending Mortgage lending platform offering home loans for single family primary residences, condominiums, PUDs, second homes, vacation properties, and investment properties across Washington, Oregon, Idaho, Montana, Arizona, Colorado, Nevada, and California; targeted at individual homebuyers and property investors.
• Loan App Elite Online borrower application portal enabling existing users to apply for mortgage loans, upload documents, and track loan status through 1st Security Bank of Washington's home lending platform.

Quantifiable outcome

• 4.31% net interest margin
• +1 more outcomes

Segments3 records

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature1 record

Partnerships

One partnership is on record.

• Pacific West BancorpcoreStrategic or Co-development Partner · 27 February 2025FS Bancorp, Inc. (holding company for 1st Security Bank) agreed to acquire Pacific West Bancorp for $34.6 million in a cash-and-stock transaction. The merger will create a combined entity with 31 branches and approximately $3.6 billion in assets operating across Washington and Oregon. The deal expands 1st Security Bank's presence into the Portland, Oregon market. The merger is expected to close pending regulatory and shareholder approvals.

Scale indicators7 records

Recent moves5 records

Expansion highlights5 records

Direct peers

• Luther Burbank Savings: California-focused community savings institution providing multifamily and commercial real estate lending plus retail deposit products. Comparable as a geographically concentrated, community-oriented thrift-style lender with a residential/commercial real estate lending tilt.
• Pacific West Bancorp: Oregon-based community bank and holding company, and the announced acquisition target of FS Bancorp (1st Security Bank's parent). Operates an Oregon-focused commercial banking franchise that will combine with 1st Security Bank to form a ~$3.6B-asset Pacific Northwest bank, making it the most directly comparable peer for products, geography, and balance-sheet profile.
• Heritage Financial Corporation: Washington-state-chartered bank holding company headquartered in Olympia, WA, operating Heritage Bank across Washington and Oregon. Directly competes with 1st Security Bank in Pacific Northwest community banking, commercial lending, and mortgage origination with similar relationship-driven commercial bank model.
• Columbia Banking System: Washington-state-headquartered bank holding company (now part of U.S. Bancorp) that operated as the largest Pacific Northwest-headquartered commercial bank prior to acquisition. Directly comparable business mix of community deposits, commercial lending, and residential mortgage across overlapping geographies.
• HomeStreet (HomeStreet Bank): Seattle-headquartered community bank historically focused on residential mortgage origination and retail/commercial banking in the Pacific Northwest and Western U.S. Highly comparable to 1st Security Bank's community-bank-plus-mortgage-lender model before its recent acquisition by Stearns Financial.
• Glacier Bancorp: Multi-state community bank holding company operating across the Western U.S. including Washington and Oregon. Comparable as a community-bank consolidator with similar M&A-driven growth strategy and mortgage lending businesses, though at larger scale.
• Banner Bank: Washington-based commercial bank with branches across Washington, Oregon, Idaho, and California providing community banking, mortgage lending, and treasury services. Head-to-head competitor to 1st Security Bank across most of the same Pacific Northwest and Western markets.
• Umpqua Bank (Umpqua Holdings): Oregon-based regional commercial bank holding company providing community banking, mortgage, and commercial finance across the Pacific Northwest, California, and other Western states. Closely comparable to 1st Security Bank's state-chartered community bank + multi-state mortgage lending model.
• WaFd Bank (Washington Federal): Washington-state-headquartered commercial bank operating across the Western U.S. with strong Pacific Northwest deposit franchise and mortgage origination. Directly comparable in geography, business mix (deposits + mortgage lending), and community banking orientation.

Broad incumbents

• U.S. Bancorp: One of the largest U.S. commercial banks with deep Pacific Northwest presence (including the recent Columbia Banking System acquisition). Overlaps with 1st Security Bank in mortgage origination, deposits, and commercial lending, but operates at national scale with a much broader product portfolio.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat4 records

Key risks5 records

Key highlights7 records

Customer concentration

• Xx.com/1stSecurityBank

Revenue estimate

Valuation estimate

Number of profiles

Profiles5 records

Subsidiaries1 record

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about 1st Security Bank