Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers

(c) Appointment of Certain Officers

(2) Appointment of Additional Executive Officers. On December 11, 2012, 1st Security Bank of Washington ("the Bank"), the financial institution subsidiary of FS Bancorp, Inc., determined to separate the oversight of the Bank's credit and lending functions. As a result, the Bank has created the position of Chief Credit Officer which will be filled by the Bank's current Chief Lending Officer, Steven L. Haynes. Mr. Haynes has served as Chief Lending Officer since he was employed by the Bank in November 2005 and also has been responsible for commercial, consumer and real estate lending. In connection with Mr. Haynes promotion to Chief Credit Officer, the Bank is promoting Dennis V. O'Leary from Senior Vice President - Consumer, Small Business and Construction Lending to Chief Lending Officer of the Bank. Mr. O'Leary has served as Senior Vice President - Consumer, Small Business and Construction Lending since he joined the Bank in August 2011. Prior to his employment with the Bank, Mr. O'Leary previously served for five years as Senior Vice President and Puget Sound Regional Director of the residential construction lending division for Sterling Savings Bank. Messrs. Haynes' and O'Leary's promotions will be effective December 19, 2012.

A press release announcing the promotions of Messrs. Haynes and O'Leary is attached hereto as Exhibit 99.1 and incorporated herein by reference.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits

The following exhibit is being filed herewith and this list shall constitute the exhibit index:

99.1 Press release of FS Bancorp, Inc. dated December 11, 2012

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