FB Bancorp, Inc. (FBLA) Q2 2026 Filing Summary
Business Context and Reporting Period
This Form 10-Q covers the quarterly period ended June 30, 2026. FB Bancorp, Inc. serves as the bank holding company for Fidelity Bank, a community-oriented financial institution operating primarily in Louisiana. The company is classified as a non-accelerated filer, smaller reporting company, and emerging growth company. A significant strategic shift occurred during the period with the sale of the NOLA Lending Group mortgage banking segment, which is now reported as discontinued operations.
Key Financial Metrics
| Metric | Q2 2026 (3 Months) | YTD 2026 (6 Months) | YTD 2025 (6 Months) |
|---|---|---|---|
| Net Income (Loss) | $(70,000) | $49,000 | $1,584,000 |
| Net Income from Continuing Ops | $697,000 | $1,191,000 | $2,399,000 |
| Net Loss from Discontinued Ops | $(767,000) | $(1,142,000) | $(815,000) |
| Net Interest Income | $11,901,000 | $23,744,000 | $23,949,000 |
| Non-Interest Income | $2,238,000 | $3,349,000 | $2,009,000 |
| Non-Interest Expense | $13,096,000 | $24,947,000 | $22,114,000 |
| Net Interest Margin (NIM) | 4.20% | 4.34% | 4.63% |
| Efficiency Ratio | 92.62% | 92.08% | 85.19% |
| Total Assets | $1,225,644,000 (as of June 30, 2026) | ||
| Total Loans (Net) | $738,709,000 (as of June 30, 2026) | ||
| Total Deposits | $810,975,000 (as of June 30, 2026) | ||
| Stockholders' Equity | $283,816,000 (as of June 30, 2026) |
Material Changes vs. Prior Period
- Profitability Decline: Net income from continuing operations decreased 50.4% year-over-year (YTD) to $1.19 million, driven by a 12.8% increase in non-interest expenses and a compression in Net Interest Margin (NIM) from 4.63% to 4.34%.
- Discontinued Operations Impact: The company reported a net loss of $1.14 million from discontinued operations (NOLA Lending Group) for the six months ended June 30, 2026, compared to a loss of $815,000 in the prior year period. This segment is being wound down following a sale agreement executed in late 2025.
- Expense Growth: Non-interest expenses rose $2.8 million (12.8%) YTD, primarily due to a $2.0 million increase in salaries and benefits (driven by a new Lafayette branch and severance costs) and a $412,000 increase in occupancy costs.
- Balance Sheet Shifts:
- Deposits: Decreased $30.4 million (3.6%) to $811.0 million, with core deposits falling $27.2 million.
- Borrowings: Increased $32.9 million (42.1%) to $111.2 million, utilized to fund investment securities and stock repurchases.
- Securities: Available-for-sale securities increased $11.7 million to $338.0 million as the company deployed cash into higher-yielding government-backed mortgage securities.
- Asset Quality: Non-performing loans totaled $13.8 million (1.85% of total loans), an increase from 1.68% in the prior year period, largely driven by residential mortgage loans in the Gulf Coast market.
Guidance, Outlook, and Risks
- Strategic Focus: Management is prioritizing the growth of commercial real estate and commercial loans to diversify the portfolio and increase yield. The company is also expanding its digital banking infrastructure ("Andi") and physical presence in Baton Rouge and Lafayette, Louisiana.
- Capital Return: The company is actively repurchasing common stock. In Q2 2026, it repurchased 946,813 shares at an average price of $14.01. A new repurchase plan for 1.6 million shares was approved in June 2026.
- Discontinued Operations Wind-down: Management expects remaining losses from the NOLA Lending Group to be significantly less in the final months of 2026, with remaining assets and liabilities to be absorbed into the bank's statements in Q3 2026.
- Risks:
- Interest Rate Risk: The company faces pressure on loan yields due to declining prime rates affecting variable-rate loans. Economic Value of Equity (EVE) modeling indicates a 7.43% decrease in EVE if rates rise 200 basis points.
- Credit Risk: Elevated credit pressures in Gulf Coast residential real estate due to rising insurance costs.
- Liquidity: While the company maintains a "well-capitalized" status with a Tier 1 leverage ratio of 20.32%, deposit attrition has necessitated increased reliance on FHLB borrowings.
Investor Verification Checklist
- Discontinued Operations Timeline: Verify the exact timing and remaining costs associated with the wind-down of the NOLA Lending Group to assess the full impact on Q3 and Q4 earnings.
- Deposit Retention: Monitor the trend of core deposit attrition and the cost of replacing these funds with higher-cost borrowings or brokered CDs.
- Commercial Loan Growth: Assess the success of the strategy to shift the loan mix toward commercial real estate and commercial loans to offset residential yield compression.
- Stock Repurchase Impact: Evaluate the sustainability of the aggressive stock buyback program ($27.6 million YTD) given the decline in net income and the need to fund operations.
- Residential Credit Quality: Review the specific exposure to Gulf Coast residential properties and the adequacy of the allowance for credit losses given rising insurance costs.