FB Bancorp, Inc. 10-K Summary: Fiscal Year Ended December 31, 2025
Business Context and Reporting Period
FB Bancorp, Inc. (FBLA) is a Maryland bank holding company formed in February 2024 to serve as the parent of Fidelity Bank, a Louisiana-chartered stock savings bank. The Company completed its conversion from a mutual to a stock organization in October 2024, raising approximately $198.4 million in gross proceeds. The reporting period covers the fiscal year ended December 31, 2025. The Company operates primarily in southern Louisiana, focusing on residential mortgage, commercial real estate, and consumer lending. A significant strategic shift occurred in 2025 with the decision to sell the NOLA Lending Group mortgage banking division, which closed on March 1, 2026, and is reported as discontinued operations.
Key Financial Metrics
| Metric | 2025 | 2024 |
|---|---|---|
| Total Assets | $1.26 billion | $1.22 billion |
| Net Income (Loss) | $1.3 million | ($6.2 million) |
| Net Income from Continuing Operations | $3.9 million | $1.5 million |
| Net Loss from Discontinued Operations | ($2.7 million) | ($7.7 million) |
| Net Interest Income | $48.0 million | $41.4 million |
| Net Interest Margin (Yield on Earning Assets) | 4.57% | 4.36% |
| Provision for Credit Losses | $1.7 million | $1.5 million |
| Total Loans Held for Investment (Net) | $737.7 million | $750.7 million |
| Total Deposits | $841.4 million | $800.7 million |
| Non-Performing Loans (NPL) | $16.9 million (2.27% of total loans) | $13.0 million (1.72% of total loans) |
| Allowance for Credit Losses (ACL) | $6.3 million (0.85% of total loans) | $6.2 million (0.82% of total loans) |
| Stockholders' Equity | $314.5 million | $326.3 million |
Material Changes vs. Prior Period
- Profitability Improvement: Net income from continuing operations increased 161% to $3.9 million, driven by a 15.8% increase in net interest income. This was partially offset by a 6.4% increase in non-interest expenses.
- Discontinued Operations: The NOLA Lending Group reported a net loss of $2.7 million in 2025, a significant improvement from the $7.7 million loss in 2024, which included a $5.8 million goodwill impairment charge.
- Asset Quality Deterioration: Non-performing loans increased to $16.9 million (2.27% of total loans) from $13.0 million (1.72%) in 2024. Classified loans rose to $20.5 million from $15.8 million.
- Deposit Growth: Total deposits grew 5.1% to $841.4 million, primarily due to a 13.5% increase in certificates of deposit (CDs), while core deposits remained relatively flat.
- Capital Actions: The Company repurchased $22.2 million of common stock in 2025, contributing to a decrease in total equity despite retained earnings growth.
Guidance, Outlook, and Risks
Management Commentary: Management emphasizes a strategy of organic growth, diversifying the loan portfolio toward commercial real estate and commercial loans to increase yield, and improving operational efficiency following the divestiture of the mortgage division. The sale of NOLA Lending Group is expected to reduce annual salaries and employee benefits by approximately $1.1 million in 2026.
Outlook: The Company anticipates continued focus on core deposit growth and expanding activities in the Baton Rouge and Lafayette markets. No specific earnings guidance was provided in the text.
Risks and Contingencies:
- Credit Risk: Increased exposure to commercial real estate (33.4% of portfolio) and commercial loans (12.4%) introduces higher risk due to economic sensitivity and unseasoned loan performance.
- Interest Rate Risk: The Company faces reinvestment risk and potential margin compression if interest rates decline. Economic Value of Equity (EVE) modeling indicates an 11.74% decrease in EVE with a 200 basis point rate increase.
- Geographic Concentration: Approximately 65.3% of loans are concentrated in the New Orleans and North Shore metropolitan areas, exposing the Company to local economic downturns and severe weather events (hurricanes).
- Regulatory Compliance: As an emerging growth company, the Company faces evolving regulatory requirements and compliance costs.
Key Facts for Investor Verification
- Asset Quality Trend: Verify the trajectory of non-performing loans (up to 2.27%) and the adequacy of the allowance for credit losses (0.85%) given the increase in classified assets.
- Discontinued Operations Closure: Confirm the final financial impact and integration costs associated with the March 1, 2026, sale of NOLA Lending Group.
- Deposit Composition: Assess the stability of the deposit base, noting the reliance on certificates of deposit (32% of total deposits) and wholesale/brokered CDs (10.7%), which carry higher funding costs and rollover risk.
- Commercial Loan Concentration: Review the performance of the growing commercial real estate portfolio, which now represents the largest loan category at 33.4%.
- Capital Management: Monitor the impact of the $22.2 million stock repurchase program on capital ratios and future dividend capacity.