FBLA 10-K & 10-Q changes, risk factors and insider trading
FB Bancorp, Inc. · Nasdaq · Savings Institutions, Not Federally Chartered · CIK 2013639 · All filings on SEC.gov
At a glance
What changed in the latest 10-K
Risk Factors
New heading “Artificial Intelligence presents risks and challenges that may adversely affect our business.”
Removed heading “Our net income has relied on mortgage banking revenues, which are highly dependent on macroeconomic factors and United States real estate market, mortgage market and financial market conditions.”
Largest changes
“The success of our business strategies and our results of operations are materially affected by current or future conditions in the real estate market, mortgage markets, financial markets and the economy generally. …”see in full comparison
“Many companies in the finance industry including us and our vendors have begun incorporating artificial intelligence (“AI”) software and applications into our business activities in order to increase productivity. The AI industry worldwide is developing rapidly, as is the legal and regulatory environment around its use. Reliance on AI therefore presents risks and challenges as we adapt to evolving rules and regulations, concerns regarding data privacy and misuse of intellectual property, and data biases and accuracy of responses to inquiries during use. …”see in full comparison
“Artificial Intelligence presents risks and challenges that may adversely affect our business.”see in full comparison
“Our net income has relied on mortgage banking revenues, which are highly dependent on macroeconomic factors and United States real estate market, mortgage market and financial market conditions.”see in full comparison
Full comparison: every changed paragraph (7)
Artificial Intelligence presents risks and challenges that may adversely affect our business.
Many companies in the finance industry including us and our vendors have begun incorporating artificial intelligence (“AI”) software and applications into our business activities in order to increase productivity. The AI industry worldwide is developing rapidly, as is the legal and regulatory environment around its use. Reliance on AI therefore presents risks and challenges as we adapt to evolving rules and regulations, concerns regarding data privacy and misuse of intellectual property, and data biases and accuracy of responses to inquiries during use. These potential issues could raise compliance costs and increase security and liability concerns, which may reduce any productivity gained through its use. The complexity surrounding AI use makes it difficult to know the expected impact on our business.
Fidelity Bank is subject to extensive regulation, supervision and examination by the LOFI and the FDIC. FB Bancorp will beis subject to extensive regulation, supervision and examination by the Federal Reserve Board. Such regulation and supervision govern the activities in which an institution and its holding company may engage and are intended primarily for the protection of the federal deposit insurance fund and the depositors of Fidelity Bank, rather than for our stockholders. Regulatory authorities have extensive discretion in their supervisory and enforcement activities, including the imposition of restrictions on our operations, the classification of our assets, and determination of the adequacy of the level of our allowance for credit losses. These regulations, along with existing tax, accounting, securities, insurance and monetary laws, rules, standards, policies, and interpretations, control the methods by which financial institutions conduct business, implement strategic initiatives and tax compliance, and govern financial reporting and disclosures. Any change in such regulation and oversight, whether in the form of regulatory policy, regulations, legislation or supervisory action, may have a material impact on our operations. Further, changes in accounting standards can be both difficult to predict and involve judgment and discretion in their interpretation by the Company and our independent accounting firm. These changes could materially impact, potentially even retroactively, how we report our financial condition and results of operations.
FB Bancorp qualifies as an “emerging growth company” under the JOBS Act. For as long as it continues to be an emerging growth company, it may choose to take advantage of exemptions from various reporting requirements applicable to public companies that are not to emerging growth companies, including, but not limited to, reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements, and exemptions from the requirements of holding a non-binding advisory vote on executive compensation. As an emerging growth company, FB Bancorp also will not be subject to Section 404(b) of the Sarbanes-Oxley Act of 2002, which would require that our independent auditors to audit our internal control over financial reporting. In addition, as an emerging growth company, we have elected to take advantage of the extended transition periods for adopting new or revised financial accounting standards until the date they are required to be adopted by private companies (however, if any new or revised financial accounting standards would not apply to private companies, we would not be able to delay their adoption). Accordingly, our financial statements may not be comparable to those of public companies that adopt new or revised financial accounting standards as of an earlier date. Investors may find our common stock less attractive since we have chosen to rely on these exemptions. If some investors find our common stock less attractive as a result of any choices to reduce future disclosure, there may be a less active trading market for our common stock and the price of our common stock may be more volatile.
Our net income has relied on mortgage banking revenues, which are highly dependent on macroeconomic factors and United States real estate market, mortgage market and financial market conditions.
The success of our business strategies and our results of operations are materially affected by current or future conditions in the real estate market, mortgage markets, financial markets and the economy generally. Factors such as changes in policies employed by Fannie Mae and other government agencies related to the purchase of mortgage loans, the costs and impact of inflation, deflation, unemployment, personal and business income taxes, healthcare, energy costs, domestic political issues, government shutdowns, and climate change, and the availability and cost of credit may contribute to increased volatility and unclear expectations for the economy in general and the real estate, mortgage market and financial markets in particular going forward. Volatility in the real estate market, mortgage market and financial markets or deterioration in these markets also could reduce our loan production volume or adversely affect our ability to sell mortgage loans that we originate, either at a profit or at all. Any of the foregoing could materially and adversely affect our business, financial condition, liquidity and results of operations.
Due to the geographic regions in which we operate, which are primarily coastal areas, we are exposed to risks created by severe weather events that may negatively affect our revenues, costs, and liabilities, despite efforts we undertake to plan for these events. Hurricanes and other natural disasters have historically impacted spending and credit performance in the areas affected as well as the ability to obtain, and the associated costs. of,obtain flood insurance. Other disasters or catastrophic events in the future, and the impact of such events on Fidelity Bank and its customers, the banking industry or the overall economy could have a negative effect on our business, results of operations and real property. These environmental risks can also directly affect our residential lending and investment portfolios, and more broadly, could materially impact our results of operations, financial condition, and liquidity.
Management's Discussion & Analysis (MD&A)
New heading “Comparison of Operating Results From Discontinued Operations for the Years Ended December 31, 2025 and 2024”
Largest changes
“Non-interest Expense. Non-interest expense increased $4.3 million, or 6.40%, to $71.3 million for the year ended December 31, 2024, compared to $67.0 million for the year ended December 31, 2023. The increase was primarily due to the previously disclosed 2024 goodwill impairment of $5.8 million, partially offset by decreases in mortgage servicing rights amortization and other general and administrative expenses. …”see in full comparison
“General. On December 31, 2025, the Bank entered into an agreement to sell substantially all of the assets and liabilities of the Bank’s mortgage banking segment, NOLA Lending Group. The Company financial statements reflect discontinued operations for the current period and retrospectively for prior periods under ASC 205-20. Net loss from discontinued operations was $2.7 million for the year ended December 31, 2025, a $5.0 million reduction from the $7.7 million loss for the year ended December 31, 2024. This reduction was primarily due to the 2024 goodwill impairment charge of $5.8 million. …”see in full comparison
General. Netsee in full comparisonlossincome from continuing operations of$6.2$3.9 million was recorded for the year ended December 31,2024,2025,aandecreaseincrease of$7.3$2.4millionmillion, or 161.43%, from net income from continuing operations of$1.1$1.5 million for the year ended December 31,2023.2024. Thedecreaseincrease in net income was primarily due totheanpreviously disclosed 2024 goodwill impairmentincrease of$5.8$6.6millionmillion,andor 15.82%, in net interest income partially offset by adecrease$2.7 million, or 6.40%, increase inthetotalgainnon-intereston sales of mortgage servicing rights of $2.7 million.expenses.
Provisionsee in full comparison(Benefit)for Income Taxes.AAnbenefitexpense of$137$870 thousand was recognized for the year ended December 31,2024,2025, compared toaanprovisionexpense of$330$195 thousand for the year ended December 31,2023.2024. The fluctuations in the income taxbenefit and provisionprovisions was directly related to fluctuations in netloss and netincome before income taxes.The goodwill impairment of $5.8 million in 2024 is not offset by an income tax benefit.
“Comparison of Operating Results From Discontinued Operations for the Years Ended December 31, 2025 and 2024”see in full comparison
“Continuing NOLA’s focus on originating residential mortgage loans at its current pace primarily for sale into the secondary market. NOLA originates all of our one-to four-family residential mortgage loans with the intent to sell such loans into the secondary market. During the year ended December 31, 2024, our NOLA division originated $435.0 million of one- to four-family residential mortgage loans, of which $377.0 million were sold into the secondary market for a gain on sale of approximately $12.7 million. …”see in full comparison
Full comparison: every changed paragraph (39)
Continuing to seek ways to decrease the cost of product delivery and increase operating efficiency. The sale of NOLA Lending Group allowed the Company to exit a business segment that had lost approximately $2.7 million in 2025 and reduce total employees by approximately 108 individuals. This allows the Company to focus on its core banking segment. Increased efficiency is still a business strategy through asset growth, more efficient use of third party vendors, staffing level adjustments, and disciplined capital expenditures.
Continuing NOLA’s focus on originating residential mortgage loans at its current pace primarily for sale into the secondary market. NOLA originates all of our one-to four-family residential mortgage loans with the intent to sell such loans into the secondary market. During the year ended December 31, 2024, our NOLA division originated $435.0 million of one- to four-family residential mortgage loans, of which $377.0 million were sold into the secondary market for a gain on sale of approximately $12.7 million. We intend to generally maintain NOLA’s level of loan originations going forward, subject to customer demand and market interest rates.
Continuing to grow through organic growth while also considering opportunistic acquisitions or branching. We intend to grow our assets organically on a managed basis, and the capital we raised in the stock offering will enable us to increase our lending and investment capacity. In addition to organic growth, we may also consider expansion opportunities in our market areas or in contiguous markets that we believe would enhance both our franchise value and stockholder returns. These opportunities may include acquiring other financial institutions and/or establishing loan production offices, establishing new,new or de novo,novo branch officesoffices, and/or acquiring branch offices. The capital we raised in the stock offering would help us fund any such opportunities that may arise. We have no current plans or intentions regarding any such expansion activities except the previously disclosed banking branch in Lafayette, Louisiana opening in the second half of 2025.activities.
Allowance for Credit Losses. The allowance for credit losses is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans. Loans are charged off against the allowance when management believes the uncollectibility of a loan balance is confirmed. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. Management estimates the allowance for credit losses balance using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level, or term as well as for changes in environmental conditions, such as changes in unemployment rates, property values, or other relevant factors. The allowance for credit losses is measured on a collective (pool) basis when similar risk characteristics exist.
Loans that do not share risk characteristics are evaluated on an individual basis. Loans evaluated individually are not also included in the collective evaluation. When management determines that foreclosure is probable or the borrower is experiencing financial difficulty where repayment is expected to be provided substantially through the operation or sale of collateral, expected credit losses are based on the fair value of the collateral adjusted for selling costs as appropriate.
The evaluation of the adequacy of loan collateral is often based upon estimates and appraisals. Because of changing economic conditions, the valuations determined from such estimates and appraisals may also change. Accordingly, the Bank may ultimately incur losses which vary from management’s current estimates. Adjustments to the allowance for credit losses are reported in the period such adjustments become known or are reasonably estimable.
Allowance for Credit Losses. On January 1, 2023, Fidelity Bank adopted ASU 2016-13 Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, as amended, which replaces the incurred loss methodology with an expected loss methodology that is referred to as CECL . The measurement of expected credit losses under CECL is applicable to financial assets measured at amortized costs, including loan receivables and held-to-maturity debt securities. It also applies to off-balance sheet credit exposures not accounted for as insurance (loan commitments, standby letters of credit, financial guarantees, and other similar instruments) and net investments in leases recognized by a lessor in accordance with Topic 842 on leases. In addition, ASC 326 made changes to the accounting for available-for-sale debt securities. One such change is to require credit losses to be presented as an allowance rather than as a write down on available-for-sale debt securities that management does not intend to sell or believe that it is not, more than likely, required to sell.
Upon adoption of this new credit loss measurement standard, Fidelity Bank did not recognize a material change to its financial position or results of operations. No retroactive cumulative effect of accounting changes were recognized in this adoption.
Total Assets. Total assets were $1.26 billion at December 31, 2025, an increase of $34.5 million, or 2.82%, from $1.22 billion at December 31, 2024, an increase of $96.0 million, or 8.53%, from $1.12 billion at December 31, 2023.2024. The increase was primarily due to the continued growth primarily in loanssecurities andavailable cashfor equivalents,sale, partially offset by a decreasedecreases in available-for-salecash investmentequivalents securities.and loans held for investment.
Interest-Bearing Deposits at Other Financial Institutions. Interest-bearing deposits at other financial institutions increaseddecreased by $10.7$41.6 million, or 13.15%,45.22%, to $50.4 million at December 31, 2025 from $92.0 million at December 31, 2024 from $81.3 million at December 31, 2023.2024. The increasedecrease was primarily due to proceedssecurities fromavailable thefor sale purchases and $22.2 million in common stock conversionrepurchases, andpursuant increasingto deposits.our outstanding stock repurchase program.
Available-for-Sale Investment Securities. Investment securities were $326.3 million at December 31, 2025, an increase of $82.2 million, or 33.68%, from $244.1 million at December 31, 2024, a decrease of $5.8 million, or 2.31%, from $249.9 million at December 31, 2023.2024. The decreaseincrease was primarily due to maturities,purchases prepayments,totaling and sales of investment securities exceeding the $35.4$112.3 million induring current year purchases.2025.
Loans Held for Investment, Net. Loans held for investment, net, were $737.7 million at December 31, 2025, a decrease of $13.0 million, or 1.73%, from $750.7 million at December 31, 2024 due to reduced loan demand in the second half of 2025.
Loans Held for Investment, Net. Loans held for investment, net, were $750.7 million at December 31, 2024, an increase of $91.2 million, or 13.82%, from $659.5 million at December 31, 2023. Loan originations (excluding loans held for sale) totaled $226.4 million for the year ended December 31, 2024, compared to $267.0 million in 2023.
IncreasesThe inlargest loan balancescategory reflectincreases ourcame strategy to growfrom the commercial and commercial real estate loan portfolios. WeThis haveportfolio alsogrew $4.9 million, or 1.46%, and reflects management’s strategy to grow commercial loans, including our expanded our lending activities into the Baton Rouge and Lafayette markets in Louisiana.
Deposits. Deposits increased by $31.5$40.7 million, or 4.09%,5.08%, to $841.4 million at December 31, 2025 from $800.7 million at December 31, 2024 from $769.3 million at December 31, 2023.2024. Core deposits (defined as all deposits other than certificates of deposit) decreased $19.5$2.0 million, or 3.87%,0.41%, to $482.9 million at December 31, 2025 from $484.9 million at December 31, 20242024. fromCertificates $504.4of deposit increased $42.6 million, or 13.50%, to $358.5 million at December 31, 2023.2025 Certificates of deposit increased $51.0 million, or 19.24%, tofrom $315.9 million at December 31, 2024 from $264.9 million at December 31, 2023.2024. Our certificates of deposit included $106.0$89.6 million in wholesale and brokered certificates of deposit at December 31, 2025 and $106.0 million at December 31, 2024. Such deposits generally tend to be at higher yields than other types of deposits and generally do not represent direct customer relationships, but wereare utilized, in part, to fund loan growth.originations and security purchases. Approximately $27.0 million of the 2025 total deposits increases came from the new Lafayette branch opened in August 2025.
Total Equity. Total equity increaseddecreased $169.5$11.8 million, or 108.15%,3.62%, to $314.5 million at December 31, 2025 from $326.3 million at December 31, 2024 from $156.7 million at December 31, 2023.2024. The increasedecrease resulted primarily from thecommon stock offering.repurchases totaling $22.2 million, offset by retained earnings and decreases of unrealized losses of securities available for sale. For more information about changes to total equity, see the Consolidated Statement of Changes in Shareholders’Stockholders’ Equity statement as included with the financial statements, which appear beginning on page F-1 herein.
Average Balances Sheets. The following table sets forth average balance sheets, average yields and costs, and certain other information for the periods indicated. No tax-equivalent yield adjustments have been made, as the effects would be immaterial. Average yields include the effect of net deferred fee income, discounts and premiums that are amortized or accreted to interest income or interest expense. Average balances are calculated using daily average balances.
Average yields include the effect of net deferred fee income, discounts and premiums that are amortized or accreted to interest income or interest expense. Average balances are calculated using daily average balances.
Comparison of Operating Results From Continuing Operations for the Years Ended December 31, 20242025 and 20232024
General. Net lossincome from continuing operations of $6.2$3.9 million was recorded for the year ended December 31, 2024,2025, aan decreaseincrease of $7.3$2.4 millionmillion, or 161.43%, from net income from continuing operations of $1.1$1.5 million for the year ended December 31, 2023.2024. The decreaseincrease in net income was primarily due to thean previously disclosed 2024 goodwill impairmentincrease of $5.8$6.6 millionmillion, andor 15.82%, in net interest income partially offset by a decrease$2.7 million, or 6.40%, increase in thetotal gainnon-interest on sales of mortgage servicing rights of $2.7 million.expenses.
Interest Income. Interest income increased $11.6$4.9 million, or 21.35%,8.10%, to $65.9 million for the year ended December 31, 2024,2025, compared to $54.3$60.9 million for the year ended December 31, 2023.2024. This increase was attributable to both an increase in total average earning assets and an increased yield on thoseinvestments assets.available for sale.
The average balance of loans held for investment during the year ended December 31, 20242025 increased $103.6$48.7 million, or 16.94%,6.81%, while the average yield on loans increaseddecreased to 7.16% for the year ended December 31, 2025, from 7.20% for the year ended December 31, 2024, from 6.82% for the year ended December 31, 2023.2024. The increasedecrease in average yield on loans was due to strongdecreasing loanrates originationson andloans disciplinedtied to the prime rate, partially offset by commercial fixed rate pricing. The prime rate fell by 0.75% during 2025.
The average balance of investment securities decreasedincreased $12.3$27.0 million, or 4.75%%,10.93%, to $274.0 million for the year ended December 31, 2025 from $247.0 million for the year ended December 31, 2024 from $259.3 million for the year ended December 31, 2023,2024, while the average yield on investment securities increased to 3.79% for the year ended December 31, 2025 from 3.68% for the year ended December 31, 2024 from 3.58% for the year ended December 31, 2023.2024. The increase in the average yield on securities was due primarily to the increase in market rates of interest between the periods.
The average balance of interest earning cash and cash equivalents increased $34.8$6.9 million, or 89.87%,9.44%, for the year ended December 31, 2024,2025, which was accompanied by an increase inwhile the average yield,yield decreased to 4.07% for the year ended December 31, 2025 from 4.69% for the year ended December 31, 2024 from 4.48% for the year ended December 31, 2023.2024. The average yield on cash and cash equivalents reflected the increasesdecreases in overnight interest paid at the Federal Reserve.
Interest Expense. Total interest expense decreased $1.6 million, or 8.38%, to $17.8 million for the year ended December 31, 2025, from $19.4 million for the year ended December 31, 2024. The decrease was primarily due to a decrease in the average balance of borrowed funds of $113.5 million, or 63.15%, due to the retirement of borrowings late in 2024 funded by cash received from the stock offering. Interest expense for total deposits increased $3.9 million, or 35.25%, to $15.1 million for the year ended December 31, 2025, from $11.2 million for the year ended December 31, 2024. The cost of deposits increased to 2.18% for the year ended December 31, 2025 from 1.80% for the year ended December 31, 2024, reflecting the increase in the average balances of certificates of deposits of 25.59% for the year ending December 31, 2025.
Net Interest Income. Net interest income increased $6.6 million, or 15.82%, to $48.0 million for the year ended December 31, 2025, from $41.4 million for the year ended December 31, 2024. The increase was due to growth in total average earning assets, growth in the yield of investments available for sale, and the decrease in the average balance of other borrowed funds.
Interest Expense. Total interest expense increased $9.3 million, or 91.84%, to $19.4 million for the year ended December 31, 2024, from $10.1 million for the year ended December 31, 2023. The increase was primarily due to an increase in the average cost of deposits to 1.80% for the year ended December 31, 2024 from 1.08% for the year ended December 31, 2023, reflecting the increase in market rates of interest between the periods, and an increase in the average cost of borrowing to 4.58% for the year ended December 31, 2024 from 4.17% for the year ended December 31, 2023. However, borrowings were paid down in the fourth quarter of 2024, total borrowings were $73.5 million at December 31, 2024, compared to the 2024 average of $179.7 million, and the average cost decreased to 4.08% as of December 31, 2024, compared to the 2024 annual average cost of 4.58%. This deleveraging of wholesale borrowings was facilitated by proceeds from the stock conversion.
Net Interest Income. Net interest income increased $2.3 million, or 5.18%, to $46.5 million for the year ended December 31, 2024, from $44.2 million for the year ended December 31, 2023. The increase reflected an increase in the average net interest-earning assets of $36.1 million, or 15.86%, partially offset by a decrease in the net interest margin to 4.36% for the year ended December 31, 2024 from 4.72% for the year ended December 31, 2023.
Provision for Credit Losses. There was a $1.5$1.7 million provision for credit losses for the year ended December 31, 20242025 compared to a $649$1.5 thousandmillion provision for the year ended December 31, 2023.2024, representing a 12.42% increase. The increase in the provision for credit losses was due primarily to growthan increase in loansnon-performing held for investment.loans. The allowance for credit losses was $6.2$6.3 million and $6.2 million for the years ended December 31, 20242025 and 2023,2024, respectively, and represented 0.85% of total loans at December 31, 2025 and 0.82% of total loans at December 31, 2024 and 0.93% of total loans at December 31, 2023.2024.
The allowance for credit losses reflects the estimate management believes to be appropriate to cover probable expected losses that were inherent in the loan portfolio at December 31, 2024.2025. While management believes the estimates and assumptions used in the determination of the adequacy of the allowance are reasonable, such estimates and assumptions could be proven incorrect in the future, and the actual amount of future provisions may exceed the amount of past provisions. Any increase in future provisions that may be required may adversely impact Fidelitythe Bank’sCompany’s financial condition and results of operations. In addition, bank regulatory agencies periodically review the allowance for credit losses and may recommend an increase in the provision for possible credit losses or the recognition of loan charge-offs, based on judgments different than those of management.
Non-interest Income. Non-interest income totaled $20.0$4.1 million for the year ended December 31, 2024,2025, a decrease of $4.9$515 million,thousand, or 19.7%,11.07%, from $24.9$4.7 million for the year ended December 31, 2023.2024. The decrease was primarily due to $2.7$343 millionthousand decrease in gainservice charges and fees on salesdeposit of mortgage servicing rightsaccounts and a $2.1$394 millionthousand decrease in mortgage servicing revenue duethat tois part of other non-interest income on the volumeconsolidated statements of sales of mortgage servicing rights in 2023 and 2024.operations.
Non-interest Expense. Non-interest expense increased $2.7 million, or 6.40%, to $45.6 million for the year ended December 31, 2025, compared to $42.9 million for the year ended December 31, 2024. The increase was primarily due to a $1.6 million, or 6.53%, increase in salaries and employee benefits due to severance relating to reorganization of the Bank, added staff for the Lafayette branch opened by the Bank in August, and normal pay increases, a $584 thousand, or 8.83%, increase in occupancy and equipment related to the new Lafayette branch and new ATM servicing contracts, a $491 thousand, or 11.12%, increase in data processing due to data enhancements and additional products, and a $909 thousand, or 17.38%, increase in other general and administrative expenses due to costs related to professional fees and insurance related to ESOP, SEC compliance related to the Company's status as a public company, partially offset by a $809 thousand, or 49.51%, decrease in advertising and marketing. The Company does expect approximately $1.1 million in annual salaries and employee benefits savings for 2026 related to reductions in force of employees whose costs were included in continuing operations but had shared duties related to the discontinued mortgage operations.
Non-interest Expense. Non-interest expense increased $4.3 million, or 6.40%, to $71.3 million for the year ended December 31, 2024, compared to $67.0 million for the year ended December 31, 2023. The increase was primarily due to the previously disclosed 2024 goodwill impairment of $5.8 million, partially offset by decreases in mortgage servicing rights amortization and other general and administrative expenses. Mortgage servicing rights amortization decreased $1.3 million, or 71.5%, and other general and administrative expenses decreased $409 thousand, or 4.6% for the year ended December 31, 2024 compared to the same period in 2023. Mortgage servicing right amortization decreased due to the mortgage servicing sales in 2023 and 2024 and general administrative expenses are down due to management’s focus on lowering the cost of delivery.
Provision (Benefit) for Income Taxes. AAn benefitexpense of $137$870 thousand was recognized for the year ended December 31, 2024,2025, compared to aan provisionexpense of $330$195 thousand for the year ended December 31, 2023.2024. The fluctuations in the income tax benefit and provisionprovisions was directly related to fluctuations in net loss and net income before income taxes. The goodwill impairment of $5.8 million in 2024 is not offset by an income tax benefit.
Comparison of Operating Results From Discontinued Operations for the Years Ended December 31, 2025 and 2024
General. On December 31, 2025, the Bank entered into an agreement to sell substantially all of the assets and liabilities of the Bank’s mortgage banking segment, NOLA Lending Group. The Company financial statements reflect discontinued operations for the current period and retrospectively for prior periods under ASC 205-20. Net loss from discontinued operations was $2.7 million for the year ended December 31, 2025, a $5.0 million reduction from the $7.7 million loss for the year ended December 31, 2024. This reduction was primarily due to the 2024 goodwill impairment charge of $5.8 million. For more information about the discontinued operations of NOLA Lending group, see the Consolidated Financial Statements, including Note 2, which appear beginning on page F-1 herein.
The table above indicates that at December 31, 2024,2025, we would have experienced a 6.20%11.74% decrease in EVE in the event of an instantaneous parallel 200 basis point increase in market interest rates and a 2.07%10.02% increase in EVE in the event of an instantaneous 200 basis point decrease in market interest rates. Each of the estimated increasesincrease (decreases) in the percentage of change in EVE in the table above are within the Board of Directors’Director's guidelines.
The table above indicates that at December 31, 2024,2025, we would have experienced a 2.90%2.40% increase in NII in the event of an instantaneous parallel 200 basis point increase in market interest rates and a 7.90%8.70% decrease in NII in the event of an instantaneous 200 basis point decrease in market interest rates. Each of the estimated decreases in the percentage of change in the net interest income in the table above are within the Board of Directors’ guidelines.
Liquidity describes our ability to meet the financial obligations that arise in the ordinary course of business. Liquidity is primarily needed to meet the borrowing and deposit withdrawal requirements of our customers and to fund current and planned expenditures. Our primary sources of funds are deposits, principal and interest payments on loans and securities, proceeds from maturities of securities and sales of mortgage loans. We also have the ability to borrow from the Federal Home Loan Bank of DallasDallas, andat theDecember Federal31, Reserve2025, Board’swe Bankhad Termoutstanding Fundingborrowings Program.of $78.3 million. At December 31, 2024, we had $73.5 million of outstanding borrowings from the Federal Home Loan Bank of Dallas. At December 31, 2024,2025, we had the capacity to borrow an additional $364$351.8 million from the Federal Home Loan Bank of Dallas and an additional $160$138.4 million from the Federal Reserve Board discount window.
What changed in the latest 10-Q
Risk Factors
There have been no material changes from the risk factors disclosed in our Annual Report on Form 10-K for the year ended December 31, 2025.
No wording changes found in this section.
Full comparison: every changed paragraph (0)
Management's Discussion & Analysis (MD&A)
New heading “Comparison of Results From Discontinued Operations for the Six Months Ended June 30, 2026 and 2025”
New heading “Comparison of Results From Discontinued Operations for the Three Months Ended June 30, 2026 and 2025”
Removed heading “Increase in Non-interest Expense”
Largest changes
“Forward-looking statements are subject to numerous risks and uncertainties, including, but not limited to, those set forth in Item 1A of the Company’s Annual Report on Form 10-K, as supplemented by its Quarterly Reports on Form 10-Q, and those related to the economic environment, particularly in the market areas in which the Company operates, inflation and unemployment, competitive products and pricing, real estate values, fiscal and monetary policies of the U.S. …”see in full comparison
“general economic and business conditions nationally and in our market areas, including conditions affecting employment levels, borrower creditworthiness, interest rates, inflation, tariffs or trade policy changes, slowdowns in economic growth and the threat of recession, property values and customer confidence and spending, as well as the financial stress on borrowers and changes to customer and client behavior and credit risk as a result of the foregoing;”see in full comparison
“Comparison of Results From Discontinued Operations for the Three Months Ended June 30, 2026 and 2025”see in full comparison
“Comparison of Results From Discontinued Operations for the Six Months Ended June 30, 2026 and 2025”see in full comparison
“changes in the interest rate environment and the impact on the level and composition of deposits, loan demand, liquidity, and the values of loan collateral and securities;”see in full comparison
Full comparison: every changed paragraph (78)
This discussion and analysis discusses information contained in our financial statements and other relevant statistical data, and is intended to enhance your understanding of our financial condition and results of operations.operations for the three and six months ended June 30, 2026 and 2025. You should read the information in this section in conjunction with the business and financial information regarding FB Bancorp, Inc. provided in this document, including the financial statements, which appear elsewhere in this document. Operating results for the three and six months ended June 30, 2026 are not necessarily indicative of the results for the year ending December 31, 2026 or any future period.
Certain statements contained in this Quarterly Report on Form 10-Q10-Q, including those under “Management’s Discussion and Analysis of Financial Condition and Results of Operations”, that are not historical facts may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended,amended and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements with respect to the Company’s beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates, and intentions regarding future events, performance, financial condition, results of operations and business strategies, and involve known and unknown risks, uncertainties and other factors, which may be beyond the Company’s control, and which may cause the actual results, performance or achievements of the Company or its wholly-owned banking subsidiary, Fidelity Bank, to be materially different from those set forth in the forward-looking statements. These forward-looking statements, which are based on certain current assumptions and describe our future plans, strategies and expectations, can generally be identified by the use of thewords wordsor phrases such as “may,” “will,” “should,” “assume,” “support,” “indicate,” “contemplate,” “further,” “could,” “would,” “plan,” “potential,” “estimate,” “project,” “point to,” “believe,” “intend,” “outlook,” “anticipate,” “expect,” “strategy,” “forecasts,” “target” and similar words or expressions.
Forward-looking statements are based on current beliefs and expectations of management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are difficult to predict or are beyond our control. Forward-looking statements are subject to numerous risks and uncertainties, including, but not limited to, those set forth in Item 1A of the Company’s Annual Report on Form 10-K, as supplemented by its Quarterly Reports on Form 10-Q, and may include, but are not limited to the following factors:
general economic and business conditions nationally and in our market areas, including conditions affecting employment levels, borrower creditworthiness, interest rates, inflation, tariffs or trade policy changes, slowdowns in economic growth and the threat of recession, property values and customer confidence and spending, as well as the financial stress on borrowers and changes to customer and client behavior and credit risk as a result of the foregoing;
changes in the interest rate environment and the impact on the level and composition of deposits, loan demand, liquidity, and the values of loan collateral and securities;
inflation and unemployment;
the effects of competition (including the inability to grow, or attrition of, deposits, customers and employees) from other commercial banks, thrifts, mortgage banking firms, consumer finance companies, credit unions, non-bank financial technology providers, securities brokerage firms, insurance companies, private credit funds, money market and other mutual funds and other financial institutions;
real estate values and liquidity in our primary market areas, the financial health of our borrowers, and weakness in the real estate market;
fiscal and monetary policies of the U.S. Government, including the interest rate policies of the Federal Reserve;
changes in accounting policies and practices that may be adopted by the regulatory agencies and the accounting standards setters;
changes in government regulations affecting financial institutions, including regulatory fees, capital requirements, and changes in the scope and cost of FDIC insurance;
potential goodwill impairment;
inaccuracies or other failures from the use of models, including the failure of assumptions and estimates (including with respect to our financial statements), as well as differences in, and changes to, economic, market and credit conditions;
acquisitions and the integration of acquired businesses;
credit risk management, asset-liability management, and the sufficiency of our allowance for credit losses;
the financial and securities markets, including significant turbulence or disruption in the capital or financial markets;
changes in federal tax law or policy;
our ability to successfully execute a business strategy to achieve profitable growth;
the failure to identify, attract and retain key personnel and other employees and to engage in adequate succession planning;
the availability of and costs associated with sources of liquidity, including our ability to comply with applicable capital and liquidity requirements;
our ability to identify and address cybersecurity risks, fraud and systems errors, and disruptions, security breaches or other failures in our information technology systems;
the effects of war or other conflicts, civil unrest, acts of terrorism, natural disasters, health emergencies, or climate-related events; and other factors and risks described under “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” herein and in any of the Company’s subsequent reports filed with the SEC and available on its website at www.sec.gov.
Forward-looking statements are subject to numerous risks and uncertainties, including, but not limited to, those set forth in Item 1A of the Company’s Annual Report on Form 10-K, as supplemented by its Quarterly Reports on Form 10-Q, and those related to the economic environment, particularly in the market areas in which the Company operates, inflation and unemployment, competitive products and pricing, real estate values, fiscal and monetary policies of the U.S. Government, tariffs, the potential effects of the recent federal government shutdowns, changes in accounting policies and practices that may be adopted by the regulatory agencies and the accounting standards setters, changes in government regulations affecting financial institutions, including regulatory fees and capital requirements, changes in prevailing interest rates, potential goodwill impairment, acquisitions and the integration of acquired businesses, credit risk management, asset-liability management, the financial and securities markets, the availability of and costs associated with sources of liquidity.
The foregoing factors should not be construed as exhaustive. The Company cautions readers not to place undue reliance on any such forward-looking statements which speakrepresent our beliefs, assumptions and estimates only as of the date they are made. The Company advises readers that the factors listed above could affect the Company’s future results or financial performance and could cause the Company’s actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements. Because of these and other uncertainties, our actual future results may be materially different from the results indicated by these forward-looking statements.
Because of these and other uncertainties, our actual future results may be materially different from the results indicated by these forward-looking statements. Except as required by applicable law or regulation, we do not undertake, and we specifically disclaim any obligation, to releaseupdate publiclyor the results of any revisions that may be made torevise any forward-looking statements to reflect new information, events or circumstancescircumstances, afterchanges thein date of the statements orassumptions, to reflect the occurrence of anticipated or unanticipated events.events, or otherwise after the date of the statements.
All written or oral forward-looking statements attributable to the Company are expressly qualified in their entirety by this cautionary notice. Additional factors that could cause actual results to differ materially can be found in Part I, Item 1A. “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025, or in other periodic reports that we file with the SEC.
FB Bancorp, Inc. conducts its operations primarily through Fidelity Bank. Fidelity Bank’s business consists primarily of taking deposits from the general public and investing those deposits, together with funds generated from operations, in one- to four-family residential real estate loans, commercial real estate loans, commercial loans, home equity loans and lines of credit, consumer loans and construction loans. We also invest in securities, which have historically consisted primarily of mortgage-backed securities and obligations issued by U.S. government sponsored enterprises. We offer a variety of deposit accounts including negotiable orders of withdrawal, which we refer to as “NOW” accounts throughout this document, savings accounts, money market accounts and certificate of deposit accounts. Fidelity Bank is subject to comprehensive regulation and examination by the Louisiana Office of Financial Institutions and the FDIC. FB BancorpBancorp, Inc. is subject to comprehensive regulation and examination by the Federal Reserve Board.
We expect these strategies to guidecontinue ourguiding investmentthe deployment of the net proceeds offrom the stock offering.offering and our overall business operations. We intend to continue to pursue these business strategies afteron thea conversiongo-forward and stock offering,basis, subject to changes necessitated by futurein market conditions, regulatory restrictionsrequirements, and other factors.factors that may affect our business and financial performance.
Increase in Non-interest Expense
Following the completion of the conversion and stock offering, our non-interest expense increased because of the increased costs associated with operating as a public company, including the hiring of additional accounting personnel, and the increased compensation expenses associated with the implementation of our employee stock ownership plan and the implementation of a stock-based benefit plan.
The following tables set forth selected historical financial and other data of Fidelity Bank for the periods and at the dates indicated. The information at MarchJune 31,30, 2026, and for the three and six months ended MarchJune 31,30, 2026 and 2025, is not audited but, in the opinion of management, includes all adjustments necessary for a fair presentation. These adjustments are standard and recurring. The results of operations for the threesix months ended MarchJune 31,30, 2026 are not necessarily indicative of the results of operations that may be expected or realized for the entire year. The information at December 31, 2025 is derived in part from, and should be read together with, the audited financial statements and related notes beginning at page F-1 of the Company’s Annual Report on Form 10-K as filed with the Securities and Exchange Commission on March 26, 2026.
Comparison of Financial Condition at MarchJune 31,30, 2026 and December 31, 2025
Total Assets. Total assets were $1.27$1.23 billion at MarchJune 31,30, 2026, compared to $1.26 billion at December 31, 2025. The largest fluctuation between these periods came from an increase in securities available for sale of $20.6$11.7 million, or 6.31%.3.58%. This increase was due to favorable investment yields in the current period, predominantly in previously issued government backed mortgage securities. During the threesix months ended MarchJune 31,30, 2026, the Company purchased approximately $34.8$44.6 million in securities with anfavorable expected average yield of 5.02%.yields. The Company also sold $5.9$10.0 million in securities for a gain of $85$162 thousand.
Cash and Cash Equivalents. Cash levels decreased by $14.1$15.1 million, or 23.33%,24.99%, to $46.2$45.2 million at MarchJune 31,30, 2026 from $60.3 million at December 31, 2025, as such assets were used in part to fund loans, purchase investment securities, and repurchase Company stock.
Available-for-Sale Investment Securities. Investment securities increased $20.6$11.7 million, or 6.31%,3.58%, to $346.9$338.0 million at MarchJune 31,30, 2026, from $326.3 million at December 31, 2025. Aggregate securities purchased totaled $34.8$44.6 million and aggregate securities maturing, called, or sold totaled $11.4$29.5 million during the threesix months ended MarchJune 31,30, 2026. This increase was due to favorable investment yields in the current period. The average expected yield in security purchases for the three month period ending March 31, 2026, was 5.02% Loans Held for Investment, Net. Loans held for investment, net, increased by $15.7 million, or 2.13%, to $753.4 million at March 31, 2026 from $737.7 million at December 31, 2025. During the three months ended March 31, 2026, net loan originations (net of payoffs) totaled $16.4 million. The increase in net loans held for investment came primarily from an increase in commercial real estate loans of $26.6 million, or 10.67%, partially offset by total residential mortgage loans decreasing $10.3 million, or 3.84%.
Loans Held for Investment, Net. Loans held for investment, net, increased by $1.0 million, or 0.14%, to $738.7 million at June 30, 2026 from $737.7 million at December 31, 2025. During the six months ended June 30, 2026, net loan originations (net of payoffs) totaled $4.0 million. The increase in net loans held for investment, compared to December 31, 2025, came primarily from the following: commercial real estate loans increased $24.3 million, or 9.77%, other consumer loans increased $6.5 million, or 28.62%, primarily due to purchase of a seasoned pool of consumer loans, and other commercial loans increased $4.1 million, or 4.49%, offset by total residential mortgage loans decreasing $33.7 million, or 12.54%.
Increases in loan balances reflect our strategy to grow the commercial and commercial real estate loan portfolios. We have expanded our lending activities into the Baton Rouge and Lafayette, Louisiana markets, including adding lending teams in these markets. In June 2026, the Company purchased approximately $9.9 million in consumer loans that qualified for the gross-up method for acquired loans. The Company added $488 thousand to the allowance for credit losses related to these acquired consumer loans.
Deposits. Deposits increaseddecreased by $11.1$30.4 million, or 1.32%,3.62%, to $852.5$811.0 million at MarchJune 31,30, 2026 from $841.4 million at December 31, 2025. Core deposits (defined as all deposits other than certificates of deposit) decreased $754$27.2 thousand,million, or 0.16%,5.64%, to $482.1$455.6 million at MarchJune 31,30, 2026 from $482.9 million at December 31, 2025. Certificates of deposit increaseddecreased $11.9$3.2 million, or 3.31%,0.89%, to $370.4$355.4 million at MarchJune 31,30, 2026 from $358.5 million at December 31, 2025. Our certificates of deposit included $100.8$85.8 million in wholesale and brokered certificates of deposit at MarchJune 31,30, 2026 and $89.6 million at December 31, 2025. Such deposits generally tend to be at higher yields than other types of deposits and generally do not represent direct customer relationships, but were utilized, in part, to fund loan and investment growth.
Borrowings. Borrowings increased $17.3$32.9 million, or 22.13%,42.08%, from $78.3 million at December 31, 2025 to $95.6$111.2 million at MarchJune 31,30, 2026. Borrowings have increased over the last two quarters primarily to fund investment security purchasespurchases, dueoffset tothe attractivedecrease net-interestin spreadsdeposits, withinand thisfund asset$27.6 class.million in Company stock repurchases. Company borrowings consist of advances on a line of credit with the Federal Home Loan Bank.Bank of Dallas. At MarchJune 31,30, 2026, approximately $317$292 million was available on this borrowing line.
Total Equity. Total equity decreased $16.7$30.6 million, or 5.32%,9.74%, to $297.7$283.8 million at MarchJune 31,30, 2026 from $314.5 million at December 31, 2025. This decrease was primarily due to $14.3$27.6 million in Company common stock repurchases and a $3.0$4.5 million increase in accumulated other comprehensive loss, partially offset by net income.
Comparison of Operating Results From Continuing Operations for the ThreeSix Months Ended MarchJune 31,30, 2026 and 2025
General. Net income for the six months ended June 30, 2026 from continuing operations of $494 thousand was recorded$1.2 for the three months ended March 31, 2026,million, compared to net income of $1.4$2.4 million for the threesix months ended MarchJune 31,30, 2025. The decrease in net income was primarily the result of a $1.1$2.8 million, or 9.75%,12.81%, increase in total non-interest expenses.expenses partially offset by a $1.3 million, or 66.70%, increase in total non-interest income.
Interest Income. Interest income increased $439$687 thousand, or 2.75%,2.12%, to $16.4$33.1 million for the threesix months ended MarchJune 31,30, 2026, compared to $16.0$32.4 million for the threesix months ended MarchJune 31,30, 2025. This increase was primarily attributable to a $1.0$2.2 million, or 43.77%,46.16%, increase in interest and dividends on investment securities, partially offset by a decrease of $515$897 thousand, or 51.65%,49.72%, from interest on deposits in other banks.banks and $580 thousand, or 2.24%, decrease in interest and fees on loans.
Interest and fees on loans decreased $51$580 thousand, or 0.40%,2.24%, for the threesix months ended MarchJune 31,30, 2026 compared to the same period in 2025. The average balance of loans held for investment during the threesix months ended MarchJune 31,30, 2026 decreased by $24.5$27.9 million, or 3.22%,3.64%, while the average yield on these loans increaseddecreased to 7.19%7.03% for the threesix months ended MarchJune 31,30, 2026 from 7.08%7.13% for the threesix months ended MarchJune 31,30, 2025. The increasedecrease in average yield on loans was due to the increasingdecreasing interest rate environment,environment particularlyfor withinvariable interest rate loans tied to Prime. As a result of the commercialFederal Reserve's monetary policy actions between June 30, 2025 and residentialJune construction30, portfolios.2026, the prime rate declined, placing downward pressure on yields earned on the Company's variable-rate loan portfolio.
The average balance of investment securities increased by $80.7$82.6 million, or 32.39%,32.49%, to $330.0$336.9 million for the threesix months ended MarchJune 31,30, 2026 from $249.3$254.3 million for the threesix months ended MarchJune 31,30, 2025, while the average yield on investment securities increased to 4.06%4.10% for the threesix months ended MarchJune 31,30, 2026 compared to 3.74%3.72% for the threesix months ended MarchJune 31,30, 2025. The Company primarily purchased government issued mortgage backed securities with expected yields above 5%.
Interest Expense. Total interest expense increased $443$892 thousand, or 10.76%,10.54%, to $4.6$9.4 million for the threesix months ended MarchJune 31,30, 2026, from $4.1$8.5 million for the threesix months ended MarchJune 31,30, 2025. The increase was primarily due to a increase of $399 thousand, or 11.76%, in interest on deposits. The increase in interest on deposits was primarily due to an increase of $491 thousand, or 36.64%, in interest-bearinginterest depositon borrowed funds and $401 thousand, or 5.63%, in interest expense on deposits. The largest average balancesbalance fluctuation was of $25.3borrowed funds by $31.6 million, or 3.74%,48.61%, and an increase average rates paid to 2.19% from 2.04% forover the threeperiods monthspresented. endedBorrowed Marchfunds 31, 2026 compared to the same period in 2025. The growth in deposits isincreased due in part to thefund Lafayetteinvestment branchpurchases thatand openedCompany instock August 2025.repurchases.
Net Interest Income. Net interest income decreasedwas $4$23.7 thousand,million orand 0.03%, to $11.84$23.9 million for the threesix months ended MarchJune 31,30, 2026,2026 comparedand toJune $11.8530, million2025, for the three months ended March 31, 2025.respectively. Over thesethis periods,same period, interest and dividends on investments increased $1.0$2.2 million, or 43.77%, partially46.16%, offset by a decrease in interest income on deposits in other banks ofby $515$897 thousand, a decrease in interest and fees on loans by $580 thousand and an increase in total interest expense of $443$892 thousand, or 10.76%.10.54%. Net interest margin was 4.47%4.34% for the threesix months ended MarchJune 31,30, 2026, compared to 4.60%4.63% for the threesix months ended MarchJune 31,30, 2025. Company net interest margins continue to include net interest income from discontinued operations.
Provision for Credit Losses. Based on an analysis of the factors described in “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Critical Accounting Policies and Use of Critical Accounting Estimates — Allowance for Credit Losses,” there was a $490,000$965 thousand provision for credit losses for the threesix months ended MarchJune 31,30, 2026 compared to a $385,000$838 thousand provision for the same period ended MarchJune 31,30, 2025. The increase in the provision for credit losses was due primarily to growth in loans held for investment for the three months ended March 31, 2026.
Total non-performing loans were $15.1$13.8 million at MarchJune 31,30, 2026, compared to $16.9 million at December 31, 2025, and $15.4$13.0 million at MarchJune 31,30, 2025. The majority of non-performing loans, $11.1$12.2 million, relate to first lien residential mortgage loans. These non-performing residential loans have a weighted average loan to value below 80%. Residential real estate loans remain under elevated credit pressures in our gulf coast lending markets due to rising insurance costs. The annual net charge-off percentage of residential loans, based on period-end balances of residential loans, was 0.14% for the calendar year 2025, and 0.12% for the calendar year 2024. Classified loans totaled $20.2$16.5 million at MarchJune 31,30, 2026, compared to $20.5$19.5 million at MarchJune 31,30, 2025, and total loans past due greater than 30 days were $35.4$20.4 million and $35.9$19.0 million at those respective dates. Special mention loans were $1.2$2.3 million at MarchJune 31,30, 2026 compared to $1.0$907 millionthousand at MarchJune 31,30, 2025. As a percentage of non-performing loans, the allowance for credit losses was 42.2%49.43% at MarchJune 31,30, 2026 compared to 40.1%47.21% at MarchJune 31,30, 2025.
The allowance for credit losses reflects the estimate management believes to be appropriate to cover probable expected losses that were inherent in the loan portfolio at MarchJune 31,30, 2026. While management believes the estimates and assumptions used in the determination of the adequacy of the allowance are reasonable, such estimates and assumptions could be proven incorrect in the future, and the actual amount of future provisions may exceed the amount of past provisions. Any increase in future provisions that may be required may adversely impact the Company’s financial condition and results of operations. In addition, bank regulatory agencies periodically review the allowance for credit losses and may recommend an increase in the provision for possible credit losses or the recognition of loan charge-offs, based on judgments different than those of management.
Non-interest Income. Non-interest income totaled $1.11$3.3 million for the threesix months ended MarchJune 31,30, 2026, an increase of $56$1.3 thousand,million, or 5.31%,66.70%, from $1.06$2.0 million for the threesix months ended MarchJune 31,30, 2025. The largest increase was primarily due to ana increase$1.2 ofmillion $91 thousand, or 13.91%,gain on depositlife andinsurance accountproceeds servicerealized charges.in May 2026 related to Bank owned life insurance assets.
Non-interest Expense. Non-interest expense increased $1.1$2.8 million, or 9.75%,12.81%, to $11.9$24.9 million for the threesix months ended MarchJune 31,30, 2026, compared to $10.8$22.1 million for the threesix months ended MarchJune 31,30, 2025. Increases in non-interest expenses were primarily due to a $601$2.0 thousand,million, or 9.76%,16.43%, increase in salaries and employee benefits due to added staff for the Lafayette branch opened by the Bank in August 2025, severance related reorganization costs, normal pay and benefit increases, a $226$412 thousand, or 13.84%,12.27%, increase in occupancy and equipment related to the new Lafayette branch and new ATM servicing contracts, and a $77 thousand, or 45.83%, increase in advertising and marketing. Increases in advertising are due to timing of initiatives and are not expected to remain elevated throughout 2026.contracts.
Provision (Benefit) for Income Tax Expense. The provisionbenefit for income taxes was $119,000$10 thousand for the threesix months ended MarchJune 31,30, 2026, compared to a provision of $349,000$607 thousand for the threesix months ended MarchJune 31,30, 2025. The change is a direct reflection of net income before income taxes for each period and there was no material change in the Bank’s effective tax rates. The gain on life insurance proceeds was not subject to income tax.
Comparison of Operating Results From DiscontinuingContinuing Operations for the Three Months Ended MarchJune 31,30, 2026 and 2025
TheGeneral. netNet lossincome from discontinuedcontinuing operations of $697 thousand was $375 thousandrecorded for the three months ended MarchJune 31,30, 20262026, compared to a net lossincome of $665$1.0 thousandmillion for the three months ended MarchJune 31,30, 2025. The reductiondecrease in lossnet isincome was primarily the result of unwindinga the$1.8 NOLAmillion, Lendingor Group.15.73%, Theincrease Companyin expectstotal revenues andnon-interest expenses topartially declineoffset overby thea next$1.3 twomillion, quartersor as134.59%, theincrease discontinuedin businesstotal unitnon-interest is completely shut down. For more information on discontinued operations, see footnote 2 of the unaudited financial statements contained within this filing.income.
Interest Income. Interest income increased $248 thousand, or 1.51%, to $16.7 million for the three months ended June 30, 2026, compared to $16.5 million for the three months ended June 30, 2025. This increase was primarily attributable to a $1.2 million, or 48.45%, increase in interest and dividends on investment securities, partially offset by a decrease of $382 thousand, or 47.34%, from interest on deposits in other banks and $529 thousand, or 3.99%, decrease in interest and fees on loans.
Interest and fees on loans decreased $529 thousand, or 3.99%, for the three months ended June 30, 2026 compared to the same period in 2025. The average balance of loans held for investment during the three months ended June 30, 2026 decreased by $31.4 million, or 4.04%, while the average yield on these loans decreased to 6.88% for the three months ended June 30, 2026 from 7.21% for the three months ended June 30, 2025. The decrease in average yield on loans was due to the decreasing interest rate environment for variable interest rate loans tied to Prime. As a result of the Federal Reserve's monetary policy actions between June 30, 2025 and June 30, 2026, the prime rate declined, placing downward pressure on yields earned on the Company's variable-rate loan portfolio.
The average balance of investment securities increased by $84.5 million, or 32.58%, to $343.7 million for the three months ended June 30, 2026 from $259.3 million for the three months ended June 30, 2025, while the average yield on investment securities increased to 4.14% for the three months ended June 30, 2026 compared to 3.70% for the three months ended June 30, 2025. The Company primarily purchased government issued mortgage backed securities with expected yields above 5%.
Interest Expense. Total interest expense increased $449 thousand, or 10.32%, to $4.8 million for the three months ended June 30, 2026, from $4.3 million for the three months ended June 30, 2025. The increase was primarily due to an increase of $447 thousand, or 72.56%, in interest on borrowed funds. The increase in interest on borrowed funds was primarily due to an increase in other borrowings by $52.3 million, or 89.05%, over the periods presented. Borrowed funds increased due in part to fund investment purchases and Company stock repurchases.
Net Interest Income. Net interest income was $11.9 million and $12.1 million for the three months ended June 30, 2026 and June 30, 2025, respectively. Over this same period, interest and dividends on investments increased $1.2 million, or 48.45%, offset by a decrease in interest on deposits in other banks by $382 thousand, a decrease in interest and fees on loans by $529 thousand and an increase in total interest expense of $449 thousand, or 10.32%. Net interest margin was 4.20% for the three months ended June 30, 2026, compared to 4.65% for the three months ended June 30, 2025.
FBLA insider buying and selling (Form 4)
Since 2026-04-11, insiders reported open-market purchases in 1 Form 4 filing (1 insider, 1 trade date, 86 shares, about $1.2K) and open-market sales in 1 filing (1 insider, 1 trade date, 1,110 shares, about $16.2K). Net open-market shares: -1,024 (purchases minus sales); net value about -$14.9K.Totals add up every open-market (code P and S) line in those filings, using the prices reported in the filings. Awards, option exercises, tax withholding and gifts are listed below but not counted.
| Trade date | Insider | Transaction | Shares | Price | Value |
|---|---|---|---|---|---|
| 2026-06-22 | Folds Josh C |
Open-market sale | 1,110 | $14.55 | $16.2K |
| 2026-05-11 | Wanner Todd M |
Open-market purchase | 86 | $14.01 | $1.2K |
| 2026-04-29 | Crosby Katherine A |
Grant/award | 17,794 | — | — |
Well-known investors holding FBLA (13F)
| Investor | Quarter | Shares | Reported value | % of their 13F | Change vs prior quarter |
|---|---|---|---|---|---|
| Renaissance Technologies | 2026-06-30 | 298,973 | $4.5M | 0.01% | Added 12% |
| Two Sigma Investments | 2026-06-30 | 235,576 | $3.5M | 0.0% | Added 59% |
| D. E. Shaw & Co. | 2026-06-30 | 62,762 | $945.2K | 0.0% | Added 72% |
| AQR Capital Management (Cliff Asness) | 2026-06-30 | 59,011 | $888.7K | 0.0% | Added 284% |
| Gardner Russo & Quinn (Tom Russo) | 2026-06-30 | 50,000 | $753.0K | 0.01% | No change |
| Citadel Advisors (Ken Griffin) | 2026-06-30 | 44,821 | $675.0K | 0.0% | Reduced 42% |