FB Bancorp, Inc. Q1 2026 Filing Summary
Business Context and Reporting Period
This Form 10-Q covers the quarterly period ended March 31, 2026. FB Bancorp, Inc. operates primarily through its subsidiary, Fidelity Bank, providing traditional banking services 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 quarter with the sale of the NOLA Lending Group mortgage banking segment on March 1, 2026, which is now reported as discontinued operations.
Key Financial Metrics
| Metric | Q1 2026 | Q1 2025 |
|---|---|---|
| Net Income (Total) | $119,000 | $705,000 |
| Net Income (Continuing Ops) | $494,000 | $1,370,000 |
| Net Loss (Discontinued Ops) | ($375,000) | ($665,000) |
| Earnings Per Share (Diluted) | $0.01 | $0.04 |
| Total Assets | $1.265 billion | N/A (Balance Sheet) |
| Total Deposits | $852.5 million | N/A (Balance Sheet) |
| Net Interest Income | $11.84 million | $11.85 million |
| Net Interest Margin | 4.47% | 4.60% |
| Non-Interest Expense | $11.85 million | $10.80 million |
| Efficiency Ratio | 91.49% | 83.69% |
| Cash and Equivalents | $46.2 million | N/A (Balance Sheet) |
| Other Borrowings (FHLB) | $95.6 million | N/A (Balance Sheet) |
Material Changes vs. Prior Period
- Profitability Decline: Net income from continuing operations dropped 63.9% year-over-year to $494,000, driven primarily by a 9.75% increase in non-interest expenses.
- Expense Growth: Non-interest expenses rose to $11.85 million, attributed to staffing increases for a new Lafayette branch, higher occupancy costs, and increased advertising spend.
- Discontinued Operations: The mortgage banking segment (NOLA Lending Group) was sold. While it generated a net loss of $375,000 in Q1 2026, this was an improvement over the $665,000 loss in Q1 2025.
- Asset Composition: Investment securities increased by $20.6 million (6.31%) due to purchases yielding approximately 5.02%. Loans held for investment grew by $15.7 million, led by a $26.6 million increase in commercial real estate loans.
- Capital Actions: The company repurchased 1,074,553 shares of common stock for approximately $14.3 million during the quarter.
Outlook, Risks, and Management Commentary
- Strategic Focus: Management is prioritizing the growth of commercial real estate and commercial loan portfolios to diversify assets and increase yield. They are also expanding digital banking capabilities ("Andi") and physical presence in Baton Rouge and Lafayette.
- Asset Quality: Non-performing loans totaled $15.1 million (1.98% of total loans). The allowance for credit losses covers 42.23% of non-performing loans. Management notes elevated credit pressures in Gulf Coast markets due to rising insurance costs.
- Interest Rate Risk: The company maintains a liability-sensitive position. Modeling indicates a 200 basis point increase in rates would decrease Economic Value of Equity (EVE) by 7.70% but increase Net Interest Income (NII) by 1.20%.
- Liquidity: The bank is "well-capitalized" with a Tier 1 leverage ratio of 20.23%. It has $317 million in unused borrowing capacity at the Federal Home Loan Bank.
- Subsequent Event: A retired senior officer passed away in February 2026; the company expects approximately $1.1 million in non-taxable insurance proceeds to settle in Q2 2026.
Investor Verification Checklist
- Expense Trajectory: Verify if the elevated advertising and occupancy costs related to the new Lafayette branch are one-time or recurring, as they significantly impacted the efficiency ratio.
- Discontinued Ops Wind-down: Monitor the timeline for the complete shutdown of the NOLA Lending Group to ensure no further unexpected losses from this segment.
- Insurance Cost Impact: Assess the long-term impact of rising insurance costs in the Gulf Coast region on the residential mortgage portfolio and potential future charge-offs.
- Stock Repurchase Plan: Confirm the remaining capacity under the current stock repurchase program (approx. 946,813 shares remaining as of March 31, 2026) and management's intent to continue buybacks.
- Deposit Mix: Review the reliance on wholesale and brokered certificates of deposit ($100.8 million), which carry higher interest costs than core deposits.