FB Bancorp, Inc. /MD/
For the period ended Jun 30, 2025. Filed Aug 14, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 14, 2025
FBLA$16.86+0.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-12.
0000950170-25-069058
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-14.
0000950170-25-108627
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 73 previous paragraphs and 89 current paragraphs.
42 unchanged; 30 reworded; 9 added; 1 removed; 0 previous and 8 current paragraphs rearranged.
Tables are not compared: 24 previous and 27 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (9)
Current report
Forward-looking statements are subject to numerous risks and uncertainties, including, but not limited to, those set forth in Item 1A of the Company's Annual Report on Form 10-K, as supplemented by its Quarterly Reports on Form 10-Q, and those related to the economic environment, particularly in the market areas in which the Company operates, inflation and unemployment, competitive products and pricing, real estate values, fiscal and monetary policies of the U.S. Government, tariffs, the effects of the recent turmoil in the banking industry, changes in accounting policies and practices that may be adopted by the regulatory agencies and the accounting standards setters, changes in government regulations affecting financial institutions, including regulatory fees and capital requirements, changes in prevailing interest rates, potential goodwill impairment, acquisitions and the integration of acquired businesses, credit risk management, asset-liability management, the financial and securities markets, the availability of and costs associated with sources of liquidity, and the impact of a potential shutdown of the federal government.
Current report
The Company cautions readers not to place undue reliance on any such forward-looking statements which speak only as of the date they are made. The Company advises readers that the factors listed above could affect the Company's financial performance and could cause the Company's actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements.
Current report
Core deposits totaled $469.3 million, or 56.9% of total deposits, at June 30, 2025. We have expanded our deposit and lending activities into the Baton Rouge and Lafayette, Louisiana markets over the last several years, including the hiring of Market Area Presidents and lending teams and the establishment of a branch office in Lafayette, Louisiana, and we anticipate that these efforts will continue.
Current report
General. Net income of $879,000 was recorded for the three months ended June 30, 2025, compared to a net income of $849,000 for the three months ended June 30, 2024, an increase of 3.5%. The increase in net income was primarily due to an increase of $2.3 million, or 20.6%, in net interest income, an increase of $494,000, or 14.3%, in gain on sale of mortgage loans and a decrease of $449 thousand, or 4.3%, in salaries and employee benefits. These three items total $3.2 million in period-over-period improvement partially offset by the reduction of $2.3 million in gains from the sale of mortgage servicing rights that occurred only in the three months ended June 30, 2024.
Current report
Non-interest Expense. Non-interest expense decreased $272,000, or 1.6%, to $16.6 million for the three months ended June 30, 2025, compared to $16.8 million for the three months ended June 30, 2024. The decrease was primarily due to a $449,000, or 4.3%, decrease in salaries and employee benefits and a $346,000, or 50.1%, decrease in advertising and marketing. The decrease in salaries and employee benefits was primarily caused by reductions in staffing levels within the mortgage banking segment to continue improvement in the segment’s profitability. The number of full-time equivalent employees was 324 at June 30, 2025 compared to 368 at June 30, 2024. Partially offsetting the decreases in non-interest expenses is an increase of $279,000 in hedging activity net. Hedging activity is a direct result of interest rate movements in the secondary market of mortgage loans held for sale.
Current report
The average balance of loans held for sale during the six months ended June 30, 2025 decreased by $5.3 million, or 18.9%, while the average yield on these loans increased to 7.00% for the six months ended June 30, 2025 from 6.23% for the six months ended June 31, 2024.
Current report
The average balance of investment securities increased by $5.6 million, or 2.2%, to $254.3 million for the six months ended June 30, 2025 from $248.7 million for the six months ended June 30, 2024, while the average yield on investment securities decreased to 3.72% for the six months ended June 30, 2025 from 3.76% for the six months ended June 31, 2024.
Current report
Net Interest Income. Net interest income increased $4.2 million, or 19.1%, to $26.0 million for the six months ended June 30, 2025, compared to $21.8 million for the six months ended June 30, 2024. The increase is a result of interest-earning asset growth of $118.1 million, or 11.6%, partially offset by a decrease in yield to 6.14% for the six months ending June 30, 2025 compared to 6.17% in the same period in 2024. Also contributing to the increase in net interest income was the decrease in interest expense of $848,000, or 9.1%, to $8.5 million for the six months ended June 30, 2025, from $9.3 million for the six months ended June 30, 2024.
Current report
Non-interest Income. Non-interest income totaled $9.3 million for the six months ended June 30, 2025, a decrease of $2.7 million, or 22.1%, from $12.0 million for the six months ended June 30, 2024. The decrease was primarily due to a decrease of $2.3 million in gains from the sale of mortgage servicing rights that occurred only in the six months ended June 30, 2024.
Removed paragraphs (1)
Previous report
offices, funded with capital raised through the Company’s stock offering in the third quarter of 2024. We have no current plans or intentions regarding any such expansion activities outside the previously mentioned full service branch in Lafayette, Louisiana opening in the second half of 2025.
Reworded paragraphs (30)
Previous wording
Certain statements contained in this Quarterly Report on Form 10-Q that are not historical facts may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements, which are based on certain current assumptions and describe our future plans, strategies and expectations, can generally be identified by the use of the words “may,” “will,” “should,” “could,” “would,” “plan,” “potential,” “estimate,” “project,” “believe,” “intend,” “anticipate,” “expect,” “target” and similar expressions.
Current wording
Certain statements contained in this Quarterly Report on Form 10-Q that are not historical facts may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements, which are based on certain current assumptions and describe our future plans, strategies and expectations, can generally be identified by reference to a future period or periods, or by the use of the words “may,” “will,” “should,” “could,” “would,” “plan,” “potential,” “estimate,” “project,” “believe,” “intend,” “anticipate,” “expect,” “target” and similar expressions.
Previous wording
FB Bancorp, Inc. conducts its operations primarily through Fidelity Bank. Fidelity Bank’s business consists primarily of taking deposits from the general public and investing those deposits, together with funds generated from operations, in one- to four-family residential real estate loans, commercial real estate loans, commercial loans, home equity loans and lines of credit, consumer loans and construction loans. We also invest in securities, which have historically consisted primarily of mortgage-backed securities and obligations issued by U.S. government sponsored enterprises. We offer a variety of deposit accounts including negotiable orders of withdrawal, which we refer to as “NOW” throughout this document, savings accounts, money market accounts and certificate of deposit accounts. Fidelity Bank is subject to comprehensive regulation and examination by the Louisiana Office of Financial Institutions and the FDIC. FB Bancorp Inc. is subject to comprehensive regulation and examination by the Federal Reserve Board.
Current wording
FB Bancorp, Inc. conducts its operations primarily through Fidelity Bank. Fidelity Bank’s business consists primarily of taking deposits from the general public and investing those deposits, together with funds generated from operations, in one- to four-family residential real estate loans, commercial real estate loans, commercial loans, home equity loans and lines of credit, consumer loans and construction loans. We also invest in securities, which have historically consisted primarily of mortgage-backed securities and obligations issued by U.S. government sponsored enterprises. We offer a variety of deposit accounts including negotiable orders of withdrawal, which we refer to as “NOW” accounts throughout this document, savings accounts, money market accounts and certificate of deposit accounts. Fidelity Bank is subject to comprehensive regulation and examination by the Louisiana Office of Financial Institutions and the FDIC. FB Bancorp Inc. is subject to comprehensive regulation and examination by the Federal Reserve Board.
Previous wording
Anticipated Increase in Non-interest Expense
Current wording
Increase in Non-interest Expense
Previous wording
Following the completion of the conversion and stock offering, our non-interest expense is expected to increase because of the increased costs associated with operating as a public company, including the expected hiring of additional accounting personnel, and the increased compensation expenses associated with the implementation of our employee stock ownership plan and the possible implementation of a stock-based benefit plan, if approved by our stockholders, no earlier than six months after the completion of the conversion and stock offering.
Current wording
Following the completion of the conversion and stock offering, our non-interest expense increased because of the increased costs associated with operating as a public company, including the expected hiring of additional accounting personnel, and the increased compensation expenses associated with the implementation of our employee stock ownership plan and the possible implementation of a stock-based benefit plan, if approved by our stockholders.
Previous wording
The following tables set forth selected historical financial and other data of Fidelity Bank for the periods and at the dates indicated. The information at March 31, 2025, and for the three months ended March 31, 2025 and 2024, is not audited but, in the opinion of management, includes all adjustments necessary for a fair presentation. These adjustments are standard and recurring. The results of operations for the three months ended March 31, 2025 are not necessarily indicative of the results of operations that may be expected or realized for the entire year. The information at December 31, 2024 is derived in part from, and should be read together with, the audited financial statements and related notes beginning at page F-1 of the Annual Report on Form 10-K as filed with the Securities and Exchange Commission on March 27, 2025.
Current wording
The following tables set forth selected historical financial and other data of Fidelity Bank for the periods and at the dates indicated. The information at June 30, 2025, and for the three and six months ended June 30, 2025 and 2024, is not audited but, in the opinion of management, includes all adjustments necessary for a fair presentation. These adjustments are standard and recurring. The results of operations for the six months ended June 30, 2025 are not necessarily indicative of the results of operations that may be expected or realized for the entire year. The information at December 31, 2024 is derived in part from, and should be read together with, the audited financial statements and related notes beginning at page F-1 of the Annual Report on Form 10-K as filed with the Securities and Exchange Commission on March 27, 2025.
Previous wording
Total Assets. Total assets were $1.24 billion at March 31, 2025, an increase of $16.8 million, or 1.4%, from $1.22 billion at December 31, 2024. The increase was primarily due to increased loans held for investment net of $13.7 million and available-for-sale securities of $6.9 million. These earning assets were funded by an increase in total deposits of $22.7 million, partially offset by a $12.0 million decrease in other borrowings.
Current wording
Total Assets. Total assets were $1.25 billion at June 30, 2025, an increase of $25.7 million, or 2.1%, from $1.22 billion at December 31, 2024. The increase was primarily due to a $19.9 million increase in net loans held for investment and a $16.1 million increase in available-for-sale investments, partially offset by a decrease in cash equivalents of $12.8 million. The increase in net loans held for investment and available-for-sale investments were funded by an increase in total deposits of $24.6 million.
Previous wording
Cash and Cash Equivalents. Cash levels decreased by $270 thousand, or 0.3%, to $98.6 million at March 31, 2025 from $98.8 million at December 31, 2024.
Current wording
Cash and Cash Equivalents. Cash levels decreased by $12.8 million, or 12.9%, to $86.1 million at June 30, 2025 from $98.8 million at December 31, 2024.
Previous wording
Available-for-Sale Investment Securities. Investment securities increased $6.9 million, or 2.8%, to $251.0 million at March 31, 2025, from $244.1 million at December 31, 2024. Aggregate securities purchased totaled $12.2 million and aggregate securities maturing, called, or sold totaled $11.0 million during the three months ended March 31, 2025. Adding to the net increase was an increase in fair market value adjustments of $5.4 million.
Current wording
Available-for-Sale Investment Securities. Investment securities increased $16.1 million, or 6.6%, to $260.2 million at June 30, 2025, from $244.1 million at December 31, 2024. Aggregate securities purchased totaled $34.8 million and aggregate securities maturing, called, or sold totaled $24.5 million during the six months ended June 30, 2025. Adding to the net increase was an increase in fair market value adjustments of $4.9 million.
Previous wording
Loans Held for Investment, Net. Loans held for investment, net, increased by $13.7 million, or 1.8%, to $764.4 million at March 31, 2025 from $750.7 million at December 31, 2024. During the three months ended March 31, 2025, loan originations (excluding loans held for sale) totaled $35.1 million. The increase in net loans held for investment came primarily from the following: residential construction loans increased $4.8 million, or 14.0%, commercial real estate loans increased $12.0 million, or 5.0%, and other commercial loans, which consists of business lines of credit, equipment loans and various non-real estate commercial loans increased $2.7 million, or 2.8%. The net increase was partially offset by the following: residential mortgage loans decreased $2.5 million, or 1.0%, and other consumer loans decreased $2.8 million, or 10.5%.
Current wording
Loans Held for Investment, Net. Loans held for investment, net, increased by $19.9 million, or 2.7%, to $770.5 million at June 30, 2025 from $750.7 million at December 31, 2024. During the six months ended June 30, 2025, loan originations (excluding loans held for sale) totaled $71.0 million. The increase in net loans held for investment came primarily from the following: residential construction loans increased $6.0 million, or 17.5%, commercial real estate loans increased $13.3 million, or 5.5%, and other commercial loans, which consists of business lines of credit, equipment loans and various non-real estate commercial loans increased $9.0 million, or 9.5%. The net increase was partially offset by the following: residential mortgage loans (excluding residential construction loans) decreased $9.6 million, or 3.8%, and other consumer loans decreased $3.0 million, or 11.4%.
Previous wording
Deposits. Deposits increased by $22.7 million, or 2.8%, to $823.4 million at March 31, 2025 from $800.7 million at December 31, 2024. Core deposits (defined as all deposits other than certificates of deposit) increased $7.7 million, or 1.6%, to $492.6 million at March 31, 2025 from $484.9 million at December 31, 2024. Certificates of deposit increased $14.9 million, or 4.7%, to $330.8 million at March 31, 2025 from $315.9 million at December 31, 2024. Our certificates of deposit included $98.9 million in wholesale and brokered certificates of deposit at March 31, 2025 and $106.0 million at December 31, 2024. Such deposits generally tend to be at higher yields than other types of deposits and generally do not represent direct customer relationships, but were utilized, in part, to fund loan growth.
Current wording
Deposits. Deposits increased by $24.1 million, or 3.0%, to $824.8 million at June 30, 2025 from $800.7 million at December 31, 2024, due primarily to a $20.5 million increase in interest-bearing deposits. Core deposits (defined as all deposits other than certificates of deposit) decreased $15.5 million, or 3.2%, to $469.3 million at June 30, 2025 from $484.9 million at December 31, 2024. Certificates of deposit, excluding wholesale and brokered, increased $47.2 million, or 22.5%, to $257.1 million at June 30, 2025 from $209.9 million at December 31, 2024. This certificate of deposit growth came from both existing and new business within the communities we serve. Wholesale and brokered certificates of deposit decreased $7.6 million, or 7.2%, to $98.4 million at June 30, 2025 from $106.0 million at December 31, 2024. Such deposits generally tend to be at higher yields than other types of deposits and generally do not represent direct customer relationships, but were utilized, in part, to supplement funding of loan growth over time.
Previous wording
Borrowings. Borrowings decreased $12.0 million, or 16.3%, from $73.5 million at December 31, 2024 to $61.5 million at March 31, 2025. Borrowings have been paid down significantly over the last two quarters due to proceeds from the stock conversion and growth in deposits.
Current wording
Other Borrowings. Borrowings decreased $7.0 million, or 9.5%, from $73.5 million at December 31, 2024 to $66.5 million at June 30, 2025. Borrowings have been paid down significantly over the last three quarters due to proceeds from the stock conversion and growth in total deposits.
Previous wording
Total Equity. Total equity increased $5.1 million, or 1.6%, to $331.4 million at March 31, 2025 from $326.3 million at December 31, 2024. The increase resulted primarily from a $4.3 million increase in accumulated other comprehensive income (loss). Comprehensive income is solely related to unrealized gains and losses on securities available for sale. Also contributing to the total equity increase was $0.7 million in retained earnings.
Current wording
Total Equity. Total equity increased $5.8 million, or 1.8%, to $332.1 million at June 30, 2025 from $326.3 million at December 31, 2024. The increase resulted primarily from a $3.9 million decrease in accumulated other comprehensive loss. Accumulated other comprehensive loss is solely related to unrealized gains and losses on securities available for sale. Also contributing to the total equity increase was $1.6 million in retained earnings.
Previous wording
The following tables present the effects of changing rates and volumes on our net interest income for the periods indicated. The rate column shows the effects attributable to changes in rate (changes in rate multiplied by prior volume). The volume column shows the effects attributable to changes in volume (changes in volume multiplied by prior rate). The total column represents the sum of the prior columns. For purposes of this table, changes attributable to both rate and volume, which cannot be segregated, have been allocated proportionately based on the changes due to rate and the changes due to volume. There were no out-of-period items or adjustments required to be excluded from the table below.
Current wording
The following tables present the effects of changing rates and volumes on our net interest income for the periods indicated. The rate column shows the effects attributable to changes in rate (changes in rate multiplied by prior volume). The volume column shows the effects attributable to changes in volume (changes in volume multiplied by prior rate). The total column represents the sum of the prior columns. For purposes of this table, changes attributable to both rate and volume, which cannot be segregated, have been allocated proportionately based on the changes due to rate and the changes due to volume. There were no out-of-period items or adjustments required to be excluded from the tables below.
Previous wording
Interest Income. Interest income increased $1.7 million, or 11.0%, to $16.9 million for the three months ended March 31, 2025, compared to $15.2 million for the three months ended March 31, 2024. This increase was primarily attributable to a $1.3 million, or 10.4%, increase in interest and fees on loans, both held for investment and held for sale.
Current wording
Interest and Divident Income. Interest income increased $1.7 million, or 10.4%, to $17.5 million for the three months ended June 30, 2025, compared to $15.9 million for the three months ended June 30, 2024. This increase was primarily attributable to a $1.1 million, or 8.6%, increase in interest and fees on loans, both held for investment and held for sale.
Previous wording
The average balance of loans held for investment during the three months ended March 31, 2025 increased by $79.9 million, or 11.7%, while the average yield on these loans increased to 7.08% for the three months ended March 31, 2025 from 7.06% for the three months ended March 31, 2024. The increase in average yield on loans was due to the increasing interest rate environment as well as growth in our loan portfolio, particularly the commercial and residential construction portfolios.
Current wording
The average balance of loans held for investment during the three months ended June 30, 2025 increased by $67.2 million, or 9.5%, while the average yield on these loans increased to 7.21% for the three months ended June 30, 2025 from 7.19% for the three months ended June 30, 2024. The increase in average yield on loans was due to the increasing interest rate environment as well as growth in our loan portfolio, particularly the commercial and residential construction portfolios.
Previous wording
The average balance of loans held for sale during the three months ended March 31, 2025 decreased by $1.6 million, or 6.9%, while the average yield on these loans decreased to 6.50% for the three months ended March 31, 2025 from 6.60% for the three months ended March 31, 2024.
Current wording
The average balance of loans held for sale during the three months ended June 30, 2025 decreased by $5.6 million, or 18.8%, while the average yield on these loans decreased to 6.51% for the three months ended June 30, 2025 from 6.64% for the three months ended June 30, 2024.
Previous wording
The average balance of investment securities increased by $1.7 million, or 0.7%, to $249.3 million for the three months ended March 31, 2025 from $247.6 million for the three months ended March 31, 2024, while the average yield on investment securities remained 3.74% for the three months ended March 31, 2025 and March 31, 2024.
Current wording
The average balance of investment securities increased by $9.5 million, or 3.8%, to $259.3 million for the three months ended June 30, 2025 from $249.7 million for the three months ended June 30, 2024, while the average yield on investment securities decreased to 3.70% for the three months ended June 30, 2025 from 3.77% for the three months ended June 30, 2024.
Previous wording
Interest Expense. Total interest expense decreased $0.3 million, or 5.7%, to $4.1 million for the three months ended March 31, 2025, from $4.4 million for the three months ended March 31, 2024. The decrease was primarily due to a decrease in interest expense on other borrowed funds of $1.1 million, partially offset by an increase of $900 thousand in interest on deposits for the three months ended March 31, 2025. The decrease in interest on other borrowed funds was primarily due to a decrease in interest-bearing borrowing average balances of $97.1 million, or 57.6%, for the three months ended March 31, 2025 compared to the same period ended March 31, 2024. The Company retired over $100 million in borrowings in the fourth quarter of 2024 and into the first quarter of 2025 primarily using the proceeds of the Company’s stock conversion. Interest on deposits increased due to an increase in average balances and rate for the three months ended March 31, 2025 compared to the same period in 2024.
Current wording
Interest Expense. Total interest expense decreased $599,000, or 12.1%, to $4.3 million for the three months ended June 30, 2025, from $4.9 million for the three months ended June 30, 2024. The decrease was primarily due to a decrease in interest expense on other borrowed funds of $1.5 million, partially offset by an increase of $948 thousand in interest on deposits for the three months ended June 30, 2025. The decrease in interest on other borrowed funds was primarily due to a decrease in interest-bearing borrowing average balances of $130.1 million, or 68.9%, for the three months ended June 30, 2025 compared to the same period ended June 30, 2024. The Company retired over $100 million in borrowings in the fourth quarter of 2024 and into the first quarter of 2025 primarily using the proceeds of the Company’s stock conversion. Interest on deposits increased due to an increase in average balances and rate for the three months ended June 30, 2025 compared to the same period in 2024.
Previous wording
Net Interest Income. Net interest income increased $1.9 million, or 17.7%, to $12.8 million for the three months ended March 31, 2025, compared to $10.9 million for the three months ended March 31, 2024. The increase is a result of interest-earning asset growth of $126.1 million, or 12.6%, partially offset by a decrease in yield to 6.08% for the three months ending March 31, 2025 compared to 6.12% in the same period in 2024. Also contributing to the increase in net interest income was the decrease in interest expense of $0.3 million, or 5.7%, to $4.1 million for the three months ended March 31, 2025, from $4.4 million for the three months ended March 31, 2024.
Current wording
Net Interest Income. Net interest income increased $2.3 million, or 20.6%, to $13.2 million for the three months ended June 30, 2025, compared to $10.9 million for the three months ended June 30, 2024. The increase is a result of average interest-earning asset growth of $118.3 million, or 11.6%, partially offset by a decrease in yield to 6.19% for the three months ending June 30, 2025 compared to 6.25% in the same period in 2024. Also contributing to the increase in net interest income was the decrease in interest expense of $599,000, or 12.1%, to $4.3 million for the three months ended June 30, 2025, from $4.9 million for the three months ended June 30, 2024.
Previous wording
Provision for Credit Losses. Based on an analysis of the factors described in “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Critical Accounting Policies and Use of Critical Accounting Estimates — Allowance for Credit Losses,” there was a $385,000 provision for credit losses for the three months ended March 31, 2025 compared to a $245,000 provision for the same period ended March 31, 2024. The increase in the provision for credit losses was due primarily to growth in loans held for investment.
Current wording
Provision for Credit Losses. Based on management’s analysis of the factors described in “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Critical Accounting Policies and Use of Critical Accounting Estimates — Allowance for Credit Losses,” there was a $453,000 provision for credit losses for the three months ended June 30, 2025 compared to a $275,000 provision for the same period ended June 30, 2024. The increase in the provision for credit losses was due primarily to growth in loans held for investment.
Previous wording
Total non-performing loans were $15.4 million at March 31, 2025, compared to $9.0 million at March 31, 2024 with 87.5% of this increase coming from one- to four-family residential loans. One- to four-family residential loans historically have lower loss rates compared to other Company loan types. Classified loans totaled $20.4 million at March 31, 2025, compared to $12.1 million at March 31, 2024, and total loans past due greater than 30 days were $35.9 million and $14.3 million at those respective dates. Special mention loans were $1.0 million at March 31, 2025 compared to $12.6 million at March 31, 2024. As a percentage of non-performing loans, the allowance for credit losses was 40.1% at March 31, 2025 compared to 67.1% at March 31, 2024.
Current wording
Total non-performing loans were $13.0 million at June 30, 2025, compared to $9.8 million at June 30, 2024 with 72.5% of this increase coming from one- to four-family residential loans. One- to four-family residential loans historically have lower loss rates compared to other Company loan types. Classified loans totaled $19.5 million at June 30, 2025, compared to $13.0 million at June 30, 2024, and total loans past due greater than 30 days were $19.0 million and $14.1 million at those respective dates. Special mention loans were $0.9 million at June 30, 2025 compared to $5.3 million at June 30, 2024. As a percentage of non-performing loans, the allowance for credit losses was 47.2% at June 30, 2025 compared to 59.0% at June 30, 2024.
Previous wording
Non-interest Income. Non-interest income totaled $4.4 million for the three months ended March 31, 2025, a decrease of $311 thousand, or 6.6%, from $4.7 million for the three months ended March 31, 2024. The decrease was primarily due to a decrease in mortgage servicing revenue of $230,000 to $118,000 for the three months ended March 31, 2025 from $348,000 for the three months ended March 31, 2024 due to the sales of secondary market mortgage loans serviced for others in 2023 and 2024.
Current wording
Non-interest Income. Non-interest income totaled $4.9 million for the three months ended June 30, 2025, a decrease of $2.3 million, or 32.2%, from $7.3 million for the three months ended June 30, 2024. The decrease was primarily due to a decrease of $2.3 million in gains from the sale of mortgage servicing rights that occurred only in the three months ended June 30, 2024.
Previous wording
Provision (Benefit) for Income Taxes. The provision for income taxes was $173,000 for the three months ended March 31, 2025, compared to a benefit of $230,000 for the three months ended March 31, 2024. The changes are a direct reflection of net income (loss) before income taxes for each period and not a material change in the Bank's effective tax rates.
Current wording
Provision for Income Taxes. The provision for income taxes was $219,000 for the three months ended June 30, 2025, compared to a provision of $243,000 for the three months ended June 30, 2024. The changes are a direct reflection of net income before income taxes for each period and not a material change in the Bank's effective tax rates.
Previous wording
General. Net income of $705,000 was recorded for the three months ended March 31, 2025, compared to a net loss of $807,000 for the three months ended March 31, 2024. The increase in net income was primarily due to an increase of $1.9 million, or 17.7%, in net interest income and a decrease of $445 thousand, or 2.7%, in total non-interest expenses.
Current wording
General. Net income of $1.6 million was recorded for the six months ended June 30, 2025, compared to a net income of $42,000 for the six months ended June 30, 2024. The increase in net income was primarily due to an increase of $4.2 million, or 19.1%, in net interest income and a decrease of $717,000, or 2.2%, in non-interest expenses, partially offset by the reduction of $2.3 million in gains from the sale of mortgage servicing rights that occurred only in the six months ended June 30, 2024.
Previous wording
Non-interest Expense. Non-interest expense decreased $445,000, or 2.7%, to $15.9 million for the three months ended March 31, 2025, compared to $16.4 million for the three months ended March 31, 2024. The decrease was primarily due to a $526,000, or 5.2%, decrease in salaries and employee benefits. This was primarily caused by reductions in staffing levels within the mortgage banking segment to continue improvement in the segment’s profitability. Also contributing to non-interest expense reduction was a decrease of $327,000, or 60.9%, in advertising and marketing for the three months ended March 31, 2025 compared to the same period ended March 31, 2024. Hedging activity, net, increased $523,000, from a net benefit of $93,000 for the three months ended March 31, 2024 to a net expense of $430,000 for the three months ended March 31, 2025. Hedging activity is a direct result of interest rate movements in the secondary market of mortgage loans held for sale.
Current wording
Non-interest Expense. Non-interest expense decreased $717,000, or 2.2%, to $32.5 million for the six months ended June 30, 2025, compared to $33.2 million for the six months ended June 30, 2024. The decrease was primarily due to a $975,000, or 4.8%, decrease in salaries and employee benefits. This was primarily caused by reductions in staffing levels within the mortgage banking segment to improve the segment’s profitability. The number of full-time equivalent employees was 324 at June 30, 2025 compared to 368 at June 30, 2024. Also contributing to non-interest expense reduction was a decrease of $673,000, or 54.8%, in advertising and marketing expense for the six months ended June 30, 2025 compared to the same period ended June 30, 2024. Hedging activity, net, increased $802,000, from a net benefit of $131,000 for the six months ended June 30, 2024 to a net expense of $671,000 for the six months ended June 30, 2025. Hedging activity is a direct result of interest rate movements in the secondary market of mortgage loans held for sale.
Previous wording
The table above indicates that at March 31, 2025, we would have experienced a 5.30% decrease in EVE in the event of an instantaneous parallel 200 basis point increase in market interest rates and a 1.29% increase in EVE in the event of an instantaneous 200 basis point decrease in market interest rates. Each of the estimated increases (decreases) in the percentage of change in EVE in the table above are within the Board of Directors’ guidelines.
Current wording
The table above indicates that at June 30, 2025, we would have experienced a 9.57% decrease in EVE in the event of an instantaneous parallel 200 basis point increase in market interest rates and a 8.06% increase in EVE in the event of an instantaneous 200 basis point decrease in market interest rates. Each of the estimated percentages of change in EVE in the table above are within the Board of Directors’ guidelines.
Previous wording
The table above indicates that at March 31, 2025, we would have experienced a 2.70% increase in NII in the event of an instantaneous parallel 200 basis point increase in market interest rates and a 8.20% decrease in NII in the event of an instantaneous 200 basis point decrease in market interest rates. Each of the estimated decreases in the percentage of change in the net interest income in the table above are within the Board of Directors’ guidelines.
Current wording
The table above indicates that at June 30, 2025, we would have experienced a 3.00% increase in NII in the event of an instantaneous parallel 200 basis point increase in market interest rates and a 8.80% decrease in NII in the event of an instantaneous 200 basis point decrease in market interest rates. Each of the estimated decreases in the percentage of change in the net interest income in the table above are within the Board of Directors’ guidelines.
Previous wording
Liquidity describes our ability to meet the financial obligations that arise in the ordinary course of business. Liquidity is primarily needed to meet the borrowing and deposit withdrawal requirements of our customers and to fund current and planned expenditures. Our primary sources of funds are deposits, principal and interest payments on loans and securities, proceeds from maturities of securities and sales of mortgage loans. We also have the ability to borrow from the Federal Home Loan Bank of Dallas and the Federal Reserve Board’s Bank Discount Window. At March 31, 2025, we had $61.5 million of outstanding borrowings from the Federal Home Loan Bank of Dallas. At March 31, 2025, we had the capacity to borrow an additional $369 million from the Federal Home Loan Bank of Dallas and an additional $153.0 million from the Federal Reserve Board discount window.
Current wording
Liquidity describes our ability to meet the financial obligations that arise in the ordinary course of business. Liquidity is primarily needed to meet the borrowing and deposit withdrawal requirements of our customers and to fund current and planned expenditures. Our primary sources of funds are deposits, principal and interest payments on loans and securities, proceeds from maturities of securities and sales of mortgage loans. We also have the ability to borrow from the Federal Home Loan Bank of Dallas and the Federal Reserve Board’s Bank Discount Window. At June 30, 2025, we had $66.5 million of outstanding borrowings from the Federal Home Loan Bank of Dallas. At June 30, 2025, we had the capacity to borrow an additional $371 million from the Federal Home Loan Bank of Dallas and an additional $142 million from the Federal Reserve Board discount window.
Previous wording
At March 31, 2025, Fidelity Bank’s Tier 1 leverage capital was $254.8 million, or 20.3% of adjusted assets. Accordingly, it was categorized as well-capitalized at March 31, 2025. Management is not aware of any conditions or events since the most recent notification that would change our category. For further information, see Note 8 of the financial statements included elsewhere in this document.
Current wording
At June 30, 2025, Fidelity Bank’s Tier 1 leverage capital was $255.6 million, or 20.3% of adjusted assets. Accordingly, it was categorized as well-capitalized at June 30, 2025. Management is not aware of any conditions or events since the most recent notification that would change our category. For further information, see Note 8 of the financial statements included elsewhere in this document.
Previous wording
Off-Balance Sheet Arrangements. At March 31, 2025, we had $223.9 million of outstanding commitments to originate loans, which included $181.1 million in revolving lines of credit, $23.8 million in residential construction loans and $19.0 million in commercial construction loans and lines of credit. At March 31, 2025, none of our revolving lines of credit related to commercial real estate loans. Certificates of deposit that are scheduled to mature in less than one year from March 31, 2025 totaled $219.2 million. Management expects that a substantial portion of the maturing certificates of deposit will be renewed. However, if a substantial portion of these deposits is not retained, we may utilize Federal Home Loan Bank of Dallas advances or raise interest rates on deposits to attract new accounts, which may result in higher levels of interest expense.
Current wording
Off-Balance Sheet Arrangements. At June 30, 2025, we had $233.7 million of outstanding commitments to originate loans, which included $194.9 million in revolving lines of credit, $21.8 million in residential construction loans and $17.0 million in commercial construction loans and lines of credit. At June 30, 2025, none of our revolving lines of credit related to commercial real estate loans. Certificates of deposit that are scheduled to mature in less than one year from June 30, 2025 totaled $225.6 million. Management expects that a substantial portion of the maturing certificates of deposit will be renewed. However, if a substantial portion of these deposits is not retained, we may utilize Federal Home Loan Bank of Dallas advances or raise interest rates on deposits to attract new accounts, which may result in higher levels of interest expense.
Rearranged current paragraphs (8)
Current report — wording carried from elsewhere
Comparison of Operating Results for the Six Months Ended June 30, 2025 and 2024
Current report — wording carried from elsewhere
Interest Income. Interest income increased $3.3 million, or 10.7%, to $34.5 million for the six months ended June 30, 2025, compared to $31.1 million for the six months ended June 30, 2024. This increase was primarily attributable to a $2.4 million, or 9.5%, increase in interest and fees on loans, both held for investment and held for sale.
Current report — wording carried from elsewhere
The average balance of loans held for investment during the six months ended June 30, 2025 increased by $69.5 million, or 9.9%, while the average yield on these loans increased to 7.13% for the six months ended June 30, 2025 from 7.10% for the six months ended June 30, 2024. The increase in average yield on loans was due to the increasing interest rate environment as well as growth in our loan portfolio, particularly the commercial and residential construction portfolios.
Current report — wording carried from elsewhere
Interest Expense. Total interest expense decreased $848,000, or 9.1%, to $8.5 million for the six months ended June 30, 2025, from $9.3 million for the six months ended June 30, 2024. The decrease was primarily due to a decrease in interest expense on other borrowed funds of $2.7 million, partially offset by an increase of $1.8 million in interest expense on deposits for the six months ended June 30, 2025. The decrease in interest on other borrowed funds was primarily due to a decrease in interest-bearing borrowing average balances of $117.0 million, or 64.3%, for the six months ended June 30, 2025 compared to the same period ended June 30, 2024. The Company retired over $100 million in borrowings in the fourth quarter of 2024 and into the first quarter of 2025 primarily using the proceeds of the Company’s stock conversion. Interest on deposits increased due to an increase in average balances and rate for the six months ended June 30, 2025 compared to the same period in 2024.
Current report — wording carried from elsewhere
Provision for Credit Losses. Based on an analysis of the factors described in “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Critical Accounting Policies and Use of Critical Accounting Estimates — Allowance for Credit Losses,” there was a $838,000 provision for credit losses for the six months ended June 30, 2025 compared to a $520,000 provision for the same period ended June 30, 2024. The increase in the provision for credit losses was due primarily to growth in loans held for investment.
Current report — wording carried from elsewhere
Total non-performing loans were $13.0 million at June 30, 2025, compared to $9.8 million at June 30, 2024 with 72.5% of this increase coming from one- to four-family residential loans. One- to four-family residential loans historically have lower loss rates compared to other Company loan types. Classified loans totaled $19.5 million at June 30, 2025, compared to $13.0 million at June 30, 2024, and total loans past due greater than 30 days were $19.0 million and $14.1 million at those respective dates. Special mention loans were $0.9 million at June 30, 2025 compared to $5.3 million at June 30, 2024. As a percentage of non-performing loans, the allowance for credit losses was 47.2% at June 30, 2025 compared to 59.0% at June 30, 2024.
Current report — wording carried from elsewhere
The allowance for credit losses reflects the estimate management believes to be appropriate to cover probable expected losses that were inherent in the loan portfolio at June 30, 2025. While management believes the estimates and assumptions used in the determination of the adequacy of the allowance are reasonable, such estimates and assumptions could be proven incorrect in the future, and the actual amount of future provisions may exceed the amount of past provisions. Any increase in future provisions that may be required may adversely impact the Company’s financial condition and results of operations. In addition, bank regulatory agencies periodically review the allowance for credit losses and may recommend an increase in the provision for possible credit losses or the recognition of loan charge-offs, based on judgments different than those of management.
Current report — wording carried from elsewhere
Provision for Income Taxes. The provision for income taxes was $392,000 for the six months ended June 30, 2025, compared to a provision of $13,000 for the six months ended June 30, 2024. The changes are a direct reflection of net income before income taxes for each period and not a material change in the Bank's effective tax rates.