FB Bancorp's Continuing-Operations Profit Falls After NOLA Sale

The Tip Desk · November 11, 2026 · 4 min read

Net income from continuing operations was $466 thousand, or $0.03 a share, for the three months ended September 30, 2026, as the net interest margin compressed 35 bps.

FB Bancorp, Inc. (FBLA), the holding company for Fidelity Bank, reported net income from continuing operations of $466 thousand, or $0.03 a share, for the three months ended September 30, 2026, down from $1.0 million, or $0.06 a share, a year earlier.

The New Orleans-based company, which operates 18 banking locations in Louisiana, said there were no material operational activities in the quarter from discontinued operations after the March 1, 2026 sale of substantially all assets and liabilities of its mortgage banking segment, NOLA Lending Group. The sale allowed the Bank to exit a segment that posted a net loss of about $2.7 million in 2025. The sale also reduced total employees by approximately 108. Banking locations fell to 18 from 19.

Net interest income was $12.1 million, down from $12.3 million a year earlier. The net interest margin compressed 35 bps to 4.30% from 4.65%, as the average yield on loans held for investment fell to 6.89% from 7.35% and the net interest rate spread narrowed to 3.59% from 3.85%. Interest and fees on loans declined $513 thousand, or 3.83%, and total interest expense rose $158 thousand, or 3.38%, even as interest and dividends on investments increased $964 thousand, or 35.08%.

Average loans held for investment were $741.7 million, down from $764.6 million a year earlier. Average securities rose to $333.9 million from $283.1 million, and average interest-bearing borrowings increased to $111.3 million from $68.0 million.

Total non-interest income was $1.0 million, down from $1.1 million a year earlier, with other non-interest income down $75 thousand and a $51 thousand decline in gains on sales of available-for-sale securities. Total non-interest expenses were $12.1 million, up $390 thousand, or 3.33%. Salaries and employee benefits rose $414 thousand, or 6.40%, of which $686 thousand was attributed to stock-based compensation, partially offset by reductions in ongoing payroll. Data processing costs fell $95 thousand and advertising and marketing costs fell $27 thousand. The efficiency ratio from continuing operations was 92.15%, versus 87.42% a year earlier. Return on average equity from continuing operations was 0.17%.

Loans held for investment were $737.0 million at September 30, 2026, down $7.0 million, or 0.94%, from $744.0 million at December 31, 2025. Commercial loans increased $34.0 million, or 9.98%, for the nine months ended September 30, 2026, but were offset by $44.1 million of residential mortgage paydowns. Most residential mortgage loans were sourced through the NOLA Lending mortgage banking segment. The company said it expects continued runoff of total residential mortgage loans.

Total deposits were $811.6 million at September 30, 2026, down $29.8 million, or 3.54%, from $841.4 million at year-end 2025. Customer deposits decreased $40.0 million, including $19.7 million from three commercial clients, while wholesale brokered deposits rose $10.2 million. Other borrowings, all Federal Home Loan Bank advances, increased $28.7 million, or 36.62%, to $106.9 million. Unused FHLB line capacity was about $261.8 million. Total assets were $1.21 billion.

Non-performing loans were 2.19% of total loans at September 30, 2026, up from 1.92% a year earlier. Net charge-offs to average outstanding loans were 0.08%, versus 0.04%. Loans risk graded substandard were $38.8 million, up from $20.0 million at December 31, 2025, after two co-borrower entities with a commercial loan of about $20 million filed for Chapter 11 bankruptcy in June 2026 and management later classified the loan as substandard as of September 30. The loan had a principal balance of about $19.8 million and an estimated loan-to-value ratio of about 66%. No specific allowance was recorded as of September 30.

Common equity Tier 1 risk-based capital was 29.35%. Total stockholders’ equity fell to $272.2 million from $314.5 million at December 31, 2025, after $32.3 million of common stock repurchases. On June 12, 2026, the company authorized a third repurchase program of up to 1,606,837 shares, about 10% of outstanding common stock; as of November 6, 2026, it had repurchased 299,491 shares under that program.