FBLA · FB Bancorp, Inc. Common Stock

FB Bancorp’s Q1 2026 results reflect a strategic pivot following the March 1, 2026 closure of its mortgage banking segment, NOLA Lending Group — a move intended to exit a $2.7 million unprofitable business and reduce headcount by ~108. While discontinued operations contributed a $375 thousand net loss (improved from $665 thousand a year earlier), continuing operations saw net income fall 64% year-over-year to $494 thousand, driven by a $1.1 million (9.75%) rise in non-interest expenses. This increase stemmed largely from investments in growth: staffing and occupancy costs for the August 2025 Lafayette branch, plus elevated but temporary marketing spend. Net interest income held flat at $11.8 million, yet net interest margin compressed 13 basis points to 4.47%, reflecting higher funding costs (interest expense up 10.76%) and yield compression on cash equivalents and loans. The efficiency ratio deteriorated sharply to 91.49% from 83.69%, signaling near-term pressure on cost discipline. On the balance sheet, asset growth was modest (+$10 million), funded by strong deposit inflows — particularly non-interest-bearing deposits (+$12.3 million), underscoring franchise momentum in new markets. Capital remains exceptionally robust (CET1 28.70%), though equity declined $16.7 million due to active buybacks ($14.3 million spent through May 4, 2026) and AOCI drag. Management explicitly framed recent expense increases as transitory and tied to expansion, suggesting potential margin stabilization and earnings recovery in subsequent quarters as integration completes and mortgage-related volatility exits the P&L.