FB Bancorp, Inc. Annual Report - How They Did This Year

I’ve been reviewing the latest annual report for FB Bancorp (ticker: FBLA), the parent company of Fidelity Bank. If you are considering this as an investment, here is a plain-English breakdown of what you need to know.

1. What does this company do?

FB Bancorp is a community-focused bank based in New Orleans. They make money primarily through the difference between the interest they pay depositors and the interest they earn on loans. As of December 31, 2025, they managed $1.05 billion in assets. They fund their operations with local deposits and lend to people and businesses across southern Louisiana.

2. A Major Strategic Pivot

The bank recently exited the mortgage banking business, known as the NOLA Lending Group. This division lost $2.7 million in 2025 due to high costs and a tough housing market. By closing it, the bank cut 108 full-time jobs. This move lowers their expenses and allows them to focus entirely on being a traditional community lender.

3. Financial Health: The Loan Portfolio

At the end of 2025, the bank held $745 million in loans. They are now shifting toward higher-interest loans to improve their profit margins:

• The Shift: They are increasing their focus on commercial real estate (33% of the portfolio) and commercial business loans (12%). These earn more interest than the residential mortgages that make up most of their older loans.
• Loan Quality: Loans that are 90+ days past due rose to $18.2 million in 2025, up from $13.6 million in 2024. This means 2.26% of their assets are now considered "non-performing," up from 1.72% last year.
• Safety Cushion: They have $6.3 million in their "rainy day" fund for potential loan losses. For every dollar of bad loans, they have 37 cents set aside. This is down from 48 cents last year, as bad loans are growing faster than their reserves.

4. Deposits and Shareholder Moves

The bank grew its deposits to $841 million, up from $800 million. This shows local trust and provides a stable source of cash for lending.

• Stock Buybacks: The company is aggressively buying back its own shares. They recently repurchased 10% of their stock and authorized another 10% buyback. Management believes the stock is currently undervalued.
• Dividends: They do not pay a dividend and have no plans to start. They prefer to keep their earnings to fund expansion and new technology.

5. The Real-World Risks

• Geography: Because they operate almost entirely in southern Louisiana, they are vulnerable to regional economic slumps and hurricanes.
• Office Space: Many of their commercial loans are tied to New Orleans office buildings. With more people working from home, these properties may lose value.
• Interest Rates: If market interest rates jump suddenly, the bank’s value could drop by an estimated 11.7%. Their deposit costs would likely rise faster than the income from their existing loans.

6. Future Outlook

The bank is in a growth phase. They are expanding into Baton Rouge and Lafayette and investing in their digital bank, "Andi." However, their new commercial loans are "unseasoned," meaning they haven't been tested by a recession yet.

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Investor Takeaway: FB Bancorp is currently in a transition period. They are betting that cutting the mortgage division and pivoting to commercial lending will drive future growth. While the stock buybacks suggest management is confident in the company's value, you should weigh that against the rising number of non-performing loans and the risks associated with the New Orleans commercial real estate market.