FB Bancorp, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance

• Net income for the nine months ended September 30, 2026, was $515 thousand, a decrease from $2.7 million in the same period of 2025.
• Net income from continuing operations for the nine months ended September 30, 2026, was $1.7 million, down from $3.4 million in 2025.
• Net income for the three months ended September 30, 2026, was $466 thousand, compared to $1.1 million in 2025.
• Net income from continuing operations for the three months ended September 30, 2026, was $466 thousand, down from $1.0 million in 2025.
• Net interest income for the nine months ended September 30, 2026, was $35.9 million, down from $36.2 million in 2025.
• Net interest margin for the nine months ended September 30, 2026, was 4.32%, compared to 4.64% in 2025.
• Net interest margin for the three months ended September 30, 2026, was 4.30%, compared to 4.65% in 2025.
• Total non-interest income for the nine months ended September 30, 2026, was $4.4 million, an increase of 39.36% from $3.1 million in 2025.
• Total non-interest expenses for the nine months ended September 30, 2026, were $37.1 million, an increase of 9.52% from $33.8 million in 2025.
• Return on average assets from continuing operations for the nine months ended September 30, 2026, was 0.13%, down from 0.27% in 2025.
• Return on average equity from continuing operations for the nine months ended September 30, 2026, was 0.57%, down from 1.03% in 2025.
• Earnings per share from continuing operations (basic and diluted) for the nine months ended September 30, 2026, was $0.11, down from $0.19 in 2025.
• Efficiency ratio from continuing operations for the nine months ended September 30, 2026, was 92.10%, compared to 85.95% in 2025.
• Total assets were $1.21 billion at September 30, 2026, compared to $1.26 billion at December 31, 2025.
• Loans held for investment were $737.0 million at September 30, 2026, down from $744.0 million at December 31, 2025.
• Total deposits were $811.6 million at September 30, 2026, down from $841.4 million at December 31, 2025.
• Total equity was $272.2 million at September 30, 2026, down from $314.5 million at December 31, 2025.
• Net charge-offs for the nine months ended September 30, 2026, were $1.5 million, compared to $1.2 million in 2025.
• Allowance for credit losses to total loans was 0.91% at September 30, 2026, compared to 0.82% in 2025.
• Non-performing loans to total loans was 2.19% at September 30, 2026, compared to 1.92% in 2025.

Guidance and Future Outlook

• The Company does not expect future activity or losses from discontinued operations.
• The Company expects continued runoff of total residential mortgage loans.
• Management anticipates that a new material lease agreement regarding a specific substandard loan may increase net cash flows of the real estate collateral and potentially its value.

Business Segments and Product Lines

• The Company operates 18 banking locations in New Orleans, Hammond, Lafayette, and Baton Rouge, Louisiana.
• Fidelity Bank's mortgage banking segment, NOLA Lending Group, was sold on March 1, 2026, resulting in a net loss of approximately $2.7 million in 2025.
• A new branch opened in Lafayette in August 2025.
• Commercial loans increased by $34.0 million (9.98%) for the nine months ended September 30, 2026.
• Residential mortgages decreased by $44.1 million due to net paydowns.
• Wholesale brokered deposits increased by $10.2 million during the nine months ended September 30, 2026.
• Full-time equivalent employees decreased from 321 in 2025 to 199 in 2026, following the sale of the mortgage segment and reorganization.

Market and Competitive Landscape

• The sale of the mortgage banking segment was driven by the continued decline in mortgage volume.
• Customer deposits decreased by $40.0 million, primarily due to three commercial clients reducing their accounts by $19.7 million.
• Total other borrowings, consisting of Federal Home Loan Bank (FHLB) advances, increased to $106.9 million from $78.3 million at December 31, 2025.
• The unused portion of the FHLB line of credit was approximately $261.8 million at September 30, 2026.

Risks and Challenges

• Risks include increased competitive pressures, changes in the interest rate environment, inflation, and general economic conditions.
• Potential risks involve significant turbulence in capital or financial markets, volatility in equity and fixed income markets, and the impact of a fall in stock market prices on investment securities.
• Risks include potential recessionary conditions, real estate market values in the Bank's lending area, and increases in non-performing and classified loans.
• Operational risks include cyberattacks, failure to maintain current technologies, and failure to retain or attract employees.
• A specific loan of approximately $19.8 million was classified as substandard due to a borrower's Chapter 11 bankruptcy filing, though collateral was deemed sufficient at the time.

Management Commentary and Tone

• Management noted that the decrease in net income was primarily the result of a $3.2 million increase in total non-interest expenses, partially offset by a $1.2 million increase in total non-interest income.
• The increase in non-interest expenses was driven by $1.7 million in new stock-based compensation and $817 thousand in gross severance payments related to reorganization.
• A $1.2 million gain on life insurance proceeds realized in May 2026 contributed to the increase in non-interest income.
• Management stated that the sale of the mortgage segment allowed the Bank to exit a business segment that had a net loss of approximately $2.7 million in 2025.

Other Key Points

• On June 12, 2026, the Company approved a third stock repurchase program authorizing the repurchase of up to 1,606,837 shares (approximately 10% of outstanding common stock).
• As of November 6, 2026, the Company had repurchased 299,491 shares under the active stock repurchase program.
• The first two repurchase programs resulted in a combined repurchase of 3,769,125 shares with an average cost of $13.20 per share.
• Total equity decreased by $42.2 million (13.42%) from December 31, 2025, primarily due to $32.3 million in stock repurchases and a $12.8 million increase in accumulated other comprehensive loss.
• The Company was incorporated in February 2024 and began trading on the Nasdaq Global Select Market under the symbol "FBLA" on October 22, 2024, following its conversion from a mutual-to-stock organization.
• Common stock book value per share was $17.26 at September 30, 2026, compared to $17.05 at September 30, 2025.