Why did FSBW's Q4 earnings fall short of forecasts?

FSBW's Q4 earnings fell short of forecasts due to several key factors:

1. **Revenue Shortfall**: The most notable discrepancy was in the revenue figures. FSBW reported a total revenue of $35.72 million for Q4, which was significantly lower than the expected revenue of $36.35 million. This shortfall of approximately $626,000 was a major factor in the earnings falling short of forecasts.

|code|Ticker|Name|Date|Revenue Surprise|Total Revenue|market_code|
|---|---|---|---|---|---|---|
|FSBW|FSBW.O|Fs Bancorp|2024 Q1|957000|3.5457E7|186|
|FSBW|FSBW.O|Fs Bancorp|2024 Q2|969000|3.6269E7|186|
|FSBW|FSBW.O|Fs Bancorp|2024 Q3|1610000|3.7211E7|186|
|FSBW|FSBW.O|Fs Bancorp|2024 Q4|-626000|3.5724E7|186|

2. **Tax Provision**: Despite the revenue shortfall, the largest contributor to the earnings miss was a significant tax provision recorded during the quarter. This tax provision amounted to $5.5 million, up from $4.8 million in the previous year, primarily due to elevated net charge-offs.
3. **Noninterest Expenses**: There was an increase in noninterest expenses, which rose by $3.8 million, primarily due to higher costs in salaries, professional fees, and impairment of mortgage servicing rights. This increase in expenses further contributed to the earnings falling short of forecasts.

In summary, FSBW's Q4 earnings fell short of forecasts due to a combination of lower-than-expected revenue, a significant tax provision, and increased noninterest expenses.