FB Bancorp, Inc. /MD/
For the period ended Jun 30, 2026. Filed Aug 13, 2026.
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, 2026 · Filed Aug 13, 2026
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 2026-03-31; filed 2026-05-14.
0001193125-26-223273
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-13.
0001193125-26-349101
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 75 previous paragraphs and 109 current paragraphs.
39 unchanged; 32 reworded; 29 added; 4 removed; 0 previous and 9 current paragraphs rearranged.
Tables are not compared: 22 previous and 26 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 (29)
Current report
general economic and business conditions nationally and in our market areas, including conditions affecting employment levels, borrower creditworthiness, interest rates, inflation, tariffs or trade policy changes, slowdowns in economic growth and the threat of recession, property values and customer confidence and spending, as well as the financial stress on borrowers and changes to customer and client behavior and credit risk as a result of the foregoing;
Current report
changes in the interest rate environment and the impact on the level and composition of deposits, loan demand, liquidity, and the values of loan collateral and securities;
Current report
inflation and unemployment;
Current report
the effects of competition (including the inability to grow, or attrition of, deposits, customers and employees) from other commercial banks, thrifts, mortgage banking firms, consumer finance companies, credit unions, non-bank financial technology providers, securities brokerage firms, insurance companies, private credit funds, money market and other mutual funds and other financial institutions;
Current report
real estate values and liquidity in our primary market areas, the financial health of our borrowers, and weakness in the real estate market;
Current report
potential goodwill impairment;
Current report
inaccuracies or other failures from the use of models, including the failure of assumptions and estimates (including with respect to our financial statements), as well as differences in, and changes to, economic, market and credit conditions;
Current report
credit risk management, asset-liability management, and the sufficiency of our allowance for credit losses;
Current report
the financial and securities markets, including significant turbulence or disruption in the capital or financial markets;
Current report
changes in federal tax law or policy;
Current report
our ability to successfully execute a business strategy to achieve profitable growth;
Current report
the failure to identify, attract and retain key personnel and other employees and to engage in adequate succession planning;
Current report
our ability to identify and address cybersecurity risks, fraud and systems errors, and disruptions, security breaches or other failures in our information technology systems;
Current report
the effects of war or other conflicts, civil unrest, acts of terrorism, natural disasters, health emergencies, or climate-related events; and
Current report
other factors and risks described under “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” herein and in any of the Company’s subsequent reports filed with the SEC and available on its website at www.sec.gov.
Current report
All written or oral forward-looking statements attributable to the Company are expressly qualified in their entirety by this cautionary notice. Additional factors that could cause actual results to differ materially can be found in Part I, Item 1A. “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025, or in other periodic reports that we file with the SEC.
Current report
General. Net income for the six months ended June 30, 2026 from continuing operations was $1.2 million, compared to net income of $2.4 million for the six months ended June 30, 2025. The decrease in net income was primarily the result of a $2.8 million, or 12.81%, increase in total non-interest expenses partially offset by a $1.3 million, or 66.70%, increase in total non-interest income.
Current report
Interest Income. Interest income increased $687 thousand, or 2.12%, to $33.1 million for the six months ended June 30, 2026, compared to $32.4 million for the six months ended June 30, 2025. This increase was primarily attributable to a $2.2 million, or 46.16%, increase in interest and dividends on investment securities, partially offset by a decrease of $897 thousand, or 49.72%, from interest on deposits in other banks and $580 thousand, or 2.24%, decrease in interest and fees on loans.
Current report
Interest and fees on loans decreased $580 thousand, or 2.24%, for the six months ended June 30, 2026 compared to the same period in 2025. The average balance of loans held for investment during the six months ended June 30, 2026 decreased by $27.9 million, or 3.64%, while the average yield on these loans decreased to 7.03% for the six months ended June 30, 2026 from 7.13% for the six months ended June 30, 2025. The decrease in average yield on loans was due to the decreasing interest rate environment for variable interest rate loans tied to Prime. As a result of the Federal Reserve's monetary policy actions between June 30, 2025 and June 30, 2026, the prime rate declined, placing downward pressure on yields earned on the Company's variable-rate loan portfolio.
Current report
The average balance of investment securities increased by $82.6 million, or 32.49%, to $336.9 million for the six months ended June 30, 2026 from $254.3 million for the six months ended June 30, 2025, while the average yield on investment securities increased to 4.10% for the six months ended June 30, 2026 compared to 3.72% for the six months ended June 30, 2025. The Company primarily purchased government issued mortgage backed securities with expected yields above 5%.
Current report
Interest Expense. Total interest expense increased $892 thousand, or 10.54%, to $9.4 million for the six months ended June 30, 2026, from $8.5 million for the six months ended June 30, 2025. The increase was due to an increase of $491 thousand, or 36.64%, in interest on borrowed funds and $401 thousand, or 5.63%, in interest expense on deposits. The largest average balance fluctuation was of borrowed funds by $31.6 million, or 48.61%, over the periods presented. Borrowed funds increased due in part to fund investment purchases and Company stock repurchases.
Current report
Net Interest Income. Net interest income was $23.7 million and $23.9 million for the six months ended June 30, 2026 and June 30, 2025, respectively. Over this same period, interest and dividends on investments increased $2.2 million, or 46.16%, offset by a decrease in interest on deposits in other banks by $897 thousand, a decrease in interest and fees on loans by $580 thousand and an increase in total interest expense of $892 thousand, or 10.54%. Net interest margin was 4.34% for the six months ended June 30, 2026, compared to 4.63% for the six months ended June 30, 2025.
Current report
Non-interest Income. Non-interest income totaled $3.3 million for the six months ended June 30, 2026, an increase of $1.3 million, or 66.70%, from $2.0 million for the six months ended June 30, 2025. The largest increase was due to a $1.2 million gain on life insurance proceeds realized in May 2026 related to Bank owned life insurance assets.
Current report
Interest Expense. Total interest expense increased $449 thousand, or 10.32%, to $4.8 million for the three months ended June 30, 2026, from $4.3 million for the three months ended June 30, 2025. The increase was primarily due to an increase of $447 thousand, or 72.56%, in interest on borrowed funds. The increase in interest on borrowed funds was primarily due to an increase in other borrowings by $52.3 million, or 89.05%, over the periods presented. Borrowed funds increased due in part to fund investment purchases and Company stock repurchases.
Current report
Net Interest Income. Net interest income was $11.9 million and $12.1 million for the three months ended June 30, 2026 and June 30, 2025, respectively. Over this same period, interest and dividends on investments increased $1.2 million, or 48.45%, offset by a decrease in interest on deposits in other banks by $382 thousand, a decrease in interest and fees on loans by $529 thousand and an increase in total interest expense of $449 thousand, or 10.32%. Net interest margin was 4.20% for the three months ended June 30, 2026, compared to 4.65% for the three months ended June 30, 2025.
Current report
Non-interest Expense. Total non-interest expenses were $13.1 million for the three months ended June 30, 2026, compared to $11.3 million for the three months ended June 30, 2025. This represents a $1.8 million, or 15.73%, increase in total non-interest expenses. Increases in non-interest expenses were primarily due to a $1.4 million, or 23.01%, increase in salaries and employee benefits due to added staff for the Lafayette branch opened by the Bank in August 2025, the recently approved 2025 Equity Incentive Plan ("2025 EIP"), severance related reorganization costs, normal pay and benefit increases, and a $186 thousand, or 10.78%, increase in occupancy and equipment related to the new Lafayette branch and new ATM servicing contracts. Total expected compensation cost related to the 2025 EIP is expected to be $2.6 million at an annual rate before taxes.
Current report
Gross severance payments of $817 thousand were paid by the Company in the three months ended June 30, 2026. A total of $585 thousand of these severance payments were recorded in salaries and employee benefits from continuing operations for the three months ended June 30, 2026. The Company expects approximately $749 thousand in annual savings going forward within continuing operations due to these reorganization changes.
Current report
Comparison of Results From Discontinued Operations for the Six Months Ended June 30, 2026 and 2025
Current report
The net loss from discontinued operations was $1.1 million for the six months ended June 30, 2026 compared to a net loss of $815 thousand for the six months ended June 30, 2025. The increase in loss is the result of unwinding the NOLA Lending Group. As of June 30, 2026, all customer loan pipelines have been finalized and one employee remains as part of this mortgage banking segment. The Company expects to absorb remaining assets and liabilities, at fair value, into the Bank's statements of financial condition in the third quarter of 2026. The Company expects remaining losses from discontinued operations to be significantly less over the final months of 2026. For more information on discontinued operations, see Note 2 of the unaudited financial statements contained within this filing.
Removed paragraphs (4)
Previous report
Increase in Non-interest Expense
Previous report
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 hiring of additional accounting personnel, and the increased compensation expenses associated with the implementation of our employee stock ownership plan and the implementation of a stock-based benefit plan.
Previous report
Interest Expense. Total interest expense increased $443 thousand, or 10.76%, to $4.6 million for the three months ended March 31, 2026, from $4.1 million for the three months ended March 31, 2025. The increase was primarily due to a increase of $399 thousand, or 11.76%, in interest on deposits. The increase in interest on deposits was primarily due to an increase in interest-bearing deposit average balances of $25.3 million, or 3.74%, and an increase average rates paid to 2.19% from 2.04% for the three months ended March 31, 2026 compared to the same period in 2025. The growth in deposits is due in part to the Lafayette branch that opened in August 2025.
Previous report
Net Interest Income. Net interest income decreased $4 thousand, or 0.03%, to $11.84 million for the three months ended March 31, 2026, compared to $11.85 million for the three months ended March 31, 2025. Over these periods, interest and dividends on investments increased $1.0 million, or 43.77%, partially offset by a decrease in interest income on deposits in other banks of $515 thousand, and an increase in total interest expense of $443 thousand, or 10.76%. Net interest margin was 4.47% for the three months ended March 31, 2026, compared to 4.60% for the three months ended March 31, 2025. Company net interest margins continue to include net interest income from discontinued operations.
Reworded paragraphs (32)
Previous wording
This discussion and analysis discusses information contained in our financial statements and other relevant statistical data, and is intended to enhance your understanding of our financial condition and results of operations. You should read the information in this section in conjunction with the business and financial information regarding FB Bancorp, Inc. provided in this document, including the financial statements, which appear elsewhere in this document.
Current wording
This discussion and analysis discusses information contained in our financial statements and other relevant statistical data, and is intended to enhance your understanding of our financial condition and results of operations for the three and six months ended June 30, 2026 and 2025. You should read the information in this section in conjunction with the business and financial information regarding FB Bancorp, Inc. provided in this document, including the financial statements, which appear elsewhere in this document. Operating results for the three and six months ended June 30, 2026 are not necessarily indicative of the results for the year ending December 31, 2026 or any future period.
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, including those under “Management’s Discussion and Analysis of Financial Condition and Results of Operations”, 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. Forward-looking statements include statements with respect to the Company’s beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates, and intentions regarding future events, performance, financial condition, results of operations and business strategies, and involve known and unknown risks, uncertainties and other factors, which may be beyond the Company’s control, and which may cause the actual results, performance or achievements of the Company or its wholly-owned banking subsidiary, Fidelity Bank, to be materially different from those set forth in the forward-looking statements. These forward-looking statements, which are based on certain current assumptions and describe our future plans, strategies and expectations, can generally be identified by the use of words or phrases such as “may,” “will,” “should,” “assume,” “support,” “indicate,” “contemplate,” “further,” “could,” “would,” “plan,” “potential,” “estimate,” “project,” “point to,” “believe,” “intend,” “outlook,” “anticipate,” “expect,” “strategy,” “forecasts,” “target” and similar words or expressions.
Previous wording
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 potential effects of the recent federal government shutdowns, 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.
Current wording
Forward-looking statements are based on current beliefs and expectations of management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are difficult to predict or are beyond our control. 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 may include, but are not limited to the following factors:
Previous wording
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 wording
The foregoing factors should not be construed as exhaustive. The Company cautions readers not to place undue reliance on any such forward-looking statements which represent our beliefs, assumptions and estimates only as of the date they are made. The Company advises readers that the factors listed above could affect the Company’s future results or 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. Because of these and other uncertainties, our actual future results may be materially different from the results indicated by these forward-looking statements.
Previous wording
Because of these and other uncertainties, our actual future results may be materially different from the results indicated by these forward-looking statements. Except as required by applicable law or regulation, we do not undertake, and we specifically disclaim any obligation, to release publicly the results of any revisions that may be made to any forward-looking statements to reflect events or circumstances after the date of the statements or to reflect the occurrence of anticipated or unanticipated events.
Current wording
Except as required by applicable law or regulation, we do not undertake, and we specifically disclaim any obligation, to update or revise any forward-looking statements to reflect new information, events or circumstances, changes in assumptions, to reflect the occurrence of anticipated or unanticipated events, or otherwise after the date of the statements.
Previous wording
We expect these strategies to guide our investment of the net proceeds of the stock offering. We intend to continue to pursue these business strategies after the conversion and stock offering, subject to changes necessitated by future market conditions, regulatory restrictions and other factors.
Current wording
We expect these strategies to continue guiding the deployment of the net proceeds from the stock offering and our overall business operations. We intend to pursue these strategies on a go-forward basis, subject to changes in market conditions, regulatory requirements, and other factors that may affect our business and financial performance.
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, 2026, and for the three months ended March 31, 2026 and 2025, 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, 2026 are not necessarily indicative of the results of operations that may be expected or realized for the entire year. The information at December 31, 2025 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 Company’s Annual Report on Form 10-K as filed with the Securities and Exchange Commission on March 26, 2026.
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, 2026, and for the three and six months ended June 30, 2026 and 2025, 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, 2026 are not necessarily indicative of the results of operations that may be expected or realized for the entire year. The information at December 31, 2025 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 Company’s Annual Report on Form 10-K as filed with the Securities and Exchange Commission on March 26, 2026.
Previous wording
Total Assets. Total assets were $1.27 billion at March 31, 2026, compared to $1.26 billion at December 31, 2025. The largest fluctuation between these periods came from an increase in securities available for sale of $20.6 million, or 6.31%. This increase was due to favorable investment yields in the current period, predominantly in previously issued government backed mortgage securities. During the three months ended March 31, 2026, the Company purchased approximately $34.8 million in securities with an expected average yield of 5.02%. The Company also sold $5.9 million in securities for a gain of $85 thousand.
Current wording
Total Assets. Total assets were $1.23 billion at June 30, 2026, compared to $1.26 billion at December 31, 2025. The largest fluctuation between these periods came from an increase in securities available for sale of $11.7 million, or 3.58%. This increase was due to favorable investment yields in the current period, predominantly in previously issued government backed mortgage securities. During the six months ended June 30, 2026, the Company purchased approximately $44.6 million in securities with favorable yields. The Company also sold $10.0 million in securities for a gain of $162 thousand.
Previous wording
Cash and Cash Equivalents. Cash levels decreased by $14.1 million, or 23.33%, to $46.2 million at March 31, 2026 from $60.3 million at December 31, 2025, as such assets were used in part to fund loans, purchase investment securities, and repurchase Company stock.
Current wording
Cash and Cash Equivalents. Cash levels decreased by $15.1 million, or 24.99%, to $45.2 million at June 30, 2026 from $60.3 million at December 31, 2025, as such assets were used in part to fund loans, purchase investment securities, and repurchase Company stock.
Previous wording
Available-for-Sale Investment Securities. Investment securities increased $20.6 million, or 6.31%, to $346.9 million at March 31, 2026, from $326.3 million at December 31, 2025. Aggregate securities purchased totaled $34.8 million and aggregate securities maturing, called, or sold totaled $11.4 million during the three months ended March 31, 2026. This increase was due to favorable investment yields in the current period. The average expected yield in security purchases for the three month period ending March 31, 2026, was 5.02%
Current wording
Available-for-Sale Investment Securities. Investment securities increased $11.7 million, or 3.58%, to $338.0 million at June 30, 2026, from $326.3 million at December 31, 2025. Aggregate securities purchased totaled $44.6 million and aggregate securities maturing, called, or sold totaled $29.5 million during the six months ended June 30, 2026. This increase was due to favorable investment yields in the current period.
Previous wording
Loans Held for Investment, Net. Loans held for investment, net, increased by $15.7 million, or 2.13%, to $753.4 million at March 31, 2026 from $737.7 million at December 31, 2025. During the three months ended March 31, 2026, net loan originations (net of payoffs) totaled $16.4 million. The increase in net loans held for investment came primarily from an increase in commercial real estate loans of $26.6 million, or 10.67%, partially offset by total residential mortgage loans decreasing $10.3 million, or 3.84%.
Current wording
Loans Held for Investment, Net. Loans held for investment, net, increased by $1.0 million, or 0.14%, to $738.7 million at June 30, 2026 from $737.7 million at December 31, 2025. During the six months ended June 30, 2026, net loan originations (net of payoffs) totaled $4.0 million. The increase in net loans held for investment, compared to December 31, 2025, came primarily from the following: commercial real estate loans increased $24.3 million, or 9.77%, other consumer loans increased $6.5 million, or 28.62%, primarily due to purchase of a seasoned pool of consumer loans, and other commercial loans increased $4.1 million, or 4.49%, offset by total residential mortgage loans decreasing $33.7 million, or 12.54%.
Previous wording
Increases in loan balances reflect our strategy to grow the commercial and commercial real estate loan portfolios. We have expanded our lending activities into the Baton Rouge and Lafayette, Louisiana markets, including adding lending teams in these markets.
Current wording
Increases in loan balances reflect our strategy to grow the commercial and commercial real estate loan portfolios. We have expanded our lending activities into the Baton Rouge and Lafayette, Louisiana markets, including adding lending teams in these markets. In June 2026, the Company purchased approximately $9.9 million in consumer loans that qualified for the gross-up method for acquired loans. The Company added $488 thousand to the allowance for credit losses related to these acquired consumer loans.
Previous wording
Deposits. Deposits increased by $11.1 million, or 1.32%, to $852.5 million at March 31, 2026 from $841.4 million at December 31, 2025. Core deposits (defined as all deposits other than certificates of deposit) decreased $754 thousand, or 0.16%, to $482.1 million at March 31, 2026 from $482.9 million at December 31, 2025. Certificates of deposit increased $11.9 million, or 3.31%, to $370.4 million at March 31, 2026 from $358.5 million at December 31, 2025. Our certificates of deposit included $100.8 million in wholesale and brokered certificates of deposit at March 31, 2026 and $89.6 million at December 31, 2025. 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 and investment growth.
Current wording
Deposits. Deposits decreased by $30.4 million, or 3.62%, to $811.0 million at June 30, 2026 from $841.4 million at December 31, 2025. Core deposits (defined as all deposits other than certificates of deposit) decreased $27.2 million, or 5.64%, to $455.6 million at June 30, 2026 from $482.9 million at December 31, 2025. Certificates of deposit decreased $3.2 million, or 0.89%, to $355.4 million at June 30, 2026 from $358.5 million at December 31, 2025. Our certificates of deposit included $85.8 million in wholesale and brokered certificates of deposit at June 30, 2026 and $89.6 million at December 31, 2025. 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 and investment growth.
Previous wording
Borrowings. Borrowings increased $17.3 million, or 22.13%, from $78.3 million at December 31, 2025 to $95.6 million at March 31, 2026. Borrowings have increased over the last two quarters primarily to fund investment security purchases due to attractive net-interest spreads within this asset class. Company borrowings consist of advances on a line of credit with the Federal Home Loan Bank. At March 31, 2026, approximately $317 million was available on this borrowing line.
Current wording
Borrowings. Borrowings increased $32.9 million, or 42.08%, from $78.3 million at December 31, 2025 to $111.2 million at June 30, 2026. Borrowings have increased over the last two quarters primarily to fund investment security purchases, offset the decrease in deposits, and fund $27.6 million in Company stock repurchases. Company borrowings consist of advances on a line of credit with the Federal Home Loan Bank of Dallas. At June 30, 2026, approximately $292 million was available on this borrowing line.
Previous wording
Total Equity. Total equity decreased $16.7 million, or 5.32%, to $297.7 million at March 31, 2026 from $314.5 million at December 31, 2025. This decrease was due to $14.3 million in common stock repurchases and a $3.0 million increase in accumulated other comprehensive loss, partially offset by net income.
Current wording
Total Equity. Total equity decreased $30.6 million, or 9.74%, to $283.8 million at June 30, 2026 from $314.5 million at December 31, 2025. This decrease was primarily due to $27.6 million in Company common stock repurchases and a $4.5 million increase in accumulated other comprehensive loss, partially offset by net income.
Previous wording
Total non-performing loans were $15.1 million at March 31, 2026, compared to $16.9 million at December 31, 2025, and $15.4 million at March 31, 2025. The majority of non-performing loans, $11.1 million, relate to first lien residential mortgage loans. These non-performing residential loans have a weighted average loan to value below 80%. Residential real estate loans remain under elevated credit pressures in our gulf coast lending markets due to rising insurance costs. Classified loans totaled $20.2 million at March 31, 2026, compared to $20.5 million at March 31, 2025, and total loans past due greater than 30 days were $35.4 million and $35.9 million at those respective dates. Special mention loans were $1.2 million at March 31, 2026 compared to $1.0 million at March 31, 2025. As a percentage of non-performing loans, the allowance for credit losses was 42.2% at March 31, 2026 compared to 40.1% at March 31, 2025.
Current wording
Total non-performing loans were $13.8 million at June 30, 2026, compared to $16.9 million at December 31, 2025, and $13.0 million at June 30, 2025. The majority of non-performing loans, $12.2 million, relate to first lien residential mortgage loans. These non-performing residential loans have a weighted average loan to value below 80%. Residential real estate loans remain under elevated credit pressures in our gulf coast lending markets due to rising insurance costs. The annual net charge-off percentage of residential loans, based on period-end balances of residential loans, was 0.14% for the calendar year 2025, and 0.12% for the calendar year 2024. Classified loans totaled $16.5 million at June 30, 2026, compared to $19.5 million at June 30, 2025, and total loans past due greater than 30 days were $20.4 million and $19.0 million at those respective dates. Special mention loans were $2.3 million at June 30, 2026 compared to $907 thousand at June 30, 2025. As a percentage of non-performing loans, the allowance for credit losses was 49.43% at June 30, 2026 compared to 47.21% at June 30, 2025.
Previous wording
Non-interest Expense. Non-interest expense increased $1.1 million, or 9.75%, to $11.9 million for the three months ended March 31, 2026, compared to $10.8 million for the three months ended March 31, 2025. Increases in non-interest expenses were primarily due to a $601 thousand, or 9.76%, increase in salaries and employee benefits due to added staff for the Lafayette branch opened by the Bank in August 2025, normal pay and benefit increases, a $226 thousand, or 13.84%, increase in occupancy and equipment related to the new Lafayette branch and new ATM servicing contracts, and a $77 thousand, or 45.83%, increase in advertising and marketing. Increases in advertising are due to timing of initiatives and are not expected to remain elevated throughout 2026.
Current wording
Non-interest Expense. Non-interest expense increased $2.8 million, or 12.81%, to $24.9 million for the six months ended June 30, 2026, compared to $22.1 million for the six months ended June 30, 2025. Increases in non-interest expenses were primarily due to a $2.0 million, or 16.43%, increase in salaries and employee benefits due to added staff for the Lafayette branch opened by the Bank in August 2025, severance related reorganization costs, normal pay and benefit increases, a $412 thousand, or 12.27%, increase in occupancy and equipment related to the new Lafayette branch and new ATM servicing contracts.
Previous wording
General. Net income from continuing operations of $494 thousand was recorded for the three months ended March 31, 2026, compared to net income of $1.4 million for the three months ended March 31, 2025. The decrease in net income was primarily the result of a $1.1 million, or 9.75%, increase in total non-interest expenses.
Current wording
General. Net income from continuing operations of $697 thousand was recorded for the three months ended June 30, 2026, compared to net income of $1.0 million for the three months ended June 30, 2025. The decrease in net income was primarily the result of a $1.8 million, or 15.73%, increase in total non-interest expenses partially offset by a $1.3 million, or 134.59%, increase in total non-interest income.
Previous wording
Interest Income. Interest income increased $439 thousand, or 2.75%, to $16.4 million for the three months ended March 31, 2026, compared to $16.0 million for the three months ended March 31, 2025. This increase was primarily attributable to a $1.0 million, or 43.77%, increase in interest and dividends on investment securities, partially offset by a decrease of $515 thousand, or 51.65%, from interest on deposits in other banks.
Current wording
Interest Income. Interest income increased $248 thousand, or 1.51%, to $16.7 million for the three months ended June 30, 2026, compared to $16.5 million for the three months ended June 30, 2025. This increase was primarily attributable to a $1.2 million, or 48.45%, increase in interest and dividends on investment securities, partially offset by a decrease of $382 thousand, or 47.34%, from interest on deposits in other banks and $529 thousand, or 3.99%, decrease in interest and fees on loans.
Previous wording
Interest and fees on loans decreased $51 thousand, or 0.40%, for the three months ended March 31, 2026 compared to the same period in 2025. The average balance of loans held for investment during the three months ended March 31, 2026 decreased by $24.5 million, or 3.22%, while the average yield on these loans increased to 7.19% for the three months ended March 31, 2026 from 7.08% for the three months ended March 31, 2025. The increase in average yield on loans was due to the increasing interest rate environment, particularly within the commercial and residential construction portfolios.
Current wording
Interest and fees on loans decreased $529 thousand, or 3.99%, for the three months ended June 30, 2026 compared to the same period in 2025. The average balance of loans held for investment during the three months ended June 30, 2026 decreased by $31.4 million, or 4.04%, while the average yield on these loans decreased to 6.88% for the three months ended June 30, 2026 from 7.21% for the three months ended June 30, 2025. The decrease in average yield on loans was due to the decreasing interest rate environment for variable interest rate loans tied to Prime. As a result of the Federal Reserve's monetary policy actions between June 30, 2025 and June 30, 2026, the prime rate declined, placing downward pressure on yields earned on the Company's variable-rate loan portfolio.
Previous wording
The average balance of investment securities increased by $80.7 million, or 32.39%, to $330.0 million for the three months ended March 31, 2026 from $249.3 million for the three months ended March 31, 2025, while the average yield on investment securities increased to 4.06% for the three months ended March 31, 2026 compared to 3.74% for the three months ended March 31, 2025.
Current wording
The average balance of investment securities increased by $84.5 million, or 32.58%, to $343.7 million for the three months ended June 30, 2026 from $259.3 million for the three months ended June 30, 2025, while the average yield on investment securities increased to 4.14% for the three months ended June 30, 2026 compared to 3.70% for the three months ended June 30, 2025. The Company primarily purchased government issued mortgage backed securities with expected yields above 5%.
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 $490,000 provision for credit losses for the three months ended March 31, 2026 compared to a $385,000 provision for the same period ended March 31, 2025. The increase in the provision for credit losses was due primarily to growth in loans held for investment for the three months ended March 31, 2026.
Current 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 $475 thousand provision for credit losses for the three months ended June 30, 2026 compared to a $453 thousand provision for the same period ended June 30, 2025.
Previous wording
Non-interest Income. Non-interest income totaled $1.11 million for the three months ended March 31, 2026, an increase of $56 thousand, or 5.31%, from $1.06 million for the three months ended March 31, 2025. The increase was primarily due to an increase of $91 thousand, or 13.91%, on deposit and account service charges.
Current wording
Non-interest Income. Non-interest income totaled $2.2 million for the three months ended June 30, 2026, an increase of $1.3 million, or 134.59%, from $954 thousand for the three months ended June 30, 2025. The largest increase was due to a $1.2 million gain on life insurance proceeds realized in May 2026 related to Bank owned life insurance assets.
Previous wording
Provision (Benefit) for Income Tax Expense. The provision for income taxes was $119,000 for the three months ended March 31, 2026, compared to a provision of $349,000 for the three months ended March 31, 2025. The change is a direct reflection of net income before income taxes for each period and there was no material change in the Bank’s effective tax rates.
Current wording
Provision (Benefit) for Income Tax Expense. The benefit for income taxes was $129 thousand for the three months ended June 30, 2026, compared to a provision of $258 thousand for the three months ended June 30, 2025. The change is a direct reflection of net income before income taxes for each period and there was no material change in the Bank’s effective tax rates. The gain on life insurance proceeds was not subject to income tax.
Previous wording
Comparison of Results From Discontinuing Operations for the Three Months Ended March 31, 2026 and 2025
Current wording
Comparison of Results From Discontinued Operations for the Three Months Ended June 30, 2026 and 2025
Previous wording
The net loss from discontinued operations was $375 thousand for the three months ended March 31, 2026 compared to a net loss of $665 thousand for the three months ended March 31, 2025. The reduction in loss is the result of unwinding the NOLA Lending Group. The Company expects revenues and expenses to decline over the next two quarters as the discontinued business unit is completely shut down. For more information on discontinued operations, see footnote 2 of the unaudited financial statements contained within this filing.
Current wording
The net loss from discontinued operations was $767 thousand for the three months ended June 30, 2026 compared to a net loss of $150 thousand for the three months ended June 30, 2025. The increase in loss is the result of unwinding the NOLA Lending Group. As of June 30, 2026, all customer loan pipelines have been finalized and one employee remains as part of this mortgage banking segment. The Company expects to absorb remaining assets and liabilities, at fair value, into the Bank's statements of financial condition in the third quarter of 2026. The Company expects remaining losses from discontinued operations to be significantly less over the final months of 2026. For more information on discontinued operations, see Note 2 of the unaudited financial statements contained within this filing.
Previous wording
The table above indicates that at March 31, 2026 we would have experienced a 7.70% decrease in EVE in the event of an instantaneous parallel 200 basis point increase in market interest rates and a 4.60% increase in EVE in the event of an instantaneous 200 basis point decrease in market interest rates. Each of the estimated increase (decreases) in the percentage of change in EVE in the table above are within the Board of Director’s guidelines.
Current wording
The table above indicates that at June 30, 2026, we would have experienced a 7.43% decrease in EVE in the event of an instantaneous parallel 200 basis point increase in market interest rates and a 4.58% increase in EVE in the event of an instantaneous 200 basis point decrease in market interest rates. Each of the estimated increase (decreases) in the percentage 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, 2026, we would have a 1.20% increase in NII in the event of an instantaneous parallel 200 basis point increase in market interest rates and a 5.50% 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 Director's guidelines.
Current wording
The table above indicates that at June 30, 2026, we would have a 1.29% increase in NII in the event of an instantaneous parallel 200 basis point increase in market interest rates and a 4.92% 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
EVE and net interest NII calculations also may not reflect the fair values of financial instruments. For example, decreases in market interest rates can increase the fair values of our loans, deposits and borrowings.
Current wording
EVE and NII calculations also may not reflect the fair values of financial instruments. For example, decreases in market interest rates can increase the fair values of our loans, deposits and borrowings.
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 have the ability to borrow from the Federal Home Loan Bank of Dallas, and at March 31, 2026, we had $95.6 million of outstanding borrowings from the Federal Home Loan Bank of Dallas. At March 31, 2026, we had the capacity to borrow an additional $317.4 million from the Federal Home Loan Bank of Dallas and an additional $137.0 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 have the ability to borrow from the Federal Home Loan Bank of Dallas, and at June 30, 2026, we had $111.2 million of outstanding borrowings from the Federal Home Loan Bank of Dallas. At June 30, 2026, we had the capacity to borrow an additional $292.0 million from the Federal Home Loan Bank of Dallas and an additional $131.3 million from the Federal Reserve Board discount window.
Previous wording
At March 31, 2026, Fidelity Bank’s Tier 1 leverage capital was $255.6 million, or 20.23% of adjusted assets. Accordingly, it was categorized as well-capitalized at March 31, 2026. Management is not aware of any conditions or events since the most recent notification that would change our category. For further information, see Note 9 of the financial statements included elsewhere in this document.
Current wording
At June 30, 2026, Fidelity Bank’s Tier 1 leverage capital was $256.1 million, or 20.32% of adjusted assets. Accordingly, it was categorized as well-capitalized at June 30, 2026. Management is not aware of any conditions or events since the most recent notification that would change our category. For further information, see Note 9 of the financial statements included elsewhere in this document.
Previous wording
Off-Balance Sheet Arrangements. At March 31, 2026, we had $268.3 million of outstanding commitments to originate loans, which included $229.9 million in revolving lines of credit, $20.4 million in residential construction loans and $18.0 million in commercial construction loans and lines of credit. At March 31, 2026, 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, 2026 totaled $256.9 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, 2026, we had $277.1 million of outstanding commitments to originate loans, which included $239.1 million in revolving lines of credit, $16.2 million in residential construction loans and $21.8 million in commercial construction loans and lines of credit. At June 30, 2026, 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, 2026 totaled $286.7 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 (9)
Current report — wording carried from elsewhere
fiscal and monetary policies of the U.S. Government, including the interest rate policies of the Federal Reserve;
Current report — wording carried from elsewhere
changes in accounting policies and practices that may be adopted by the regulatory agencies and the accounting standards setters;
Current report — wording carried from elsewhere
changes in government regulations affecting financial institutions, including regulatory fees, capital requirements, and changes in the scope and cost of FDIC insurance;
Current report — wording carried from elsewhere
acquisitions and the integration of acquired businesses;
Current report — wording carried from elsewhere
the availability of and costs associated with sources of liquidity, including our ability to comply with applicable capital and liquidity requirements;
Current report — wording carried from elsewhere
Comparison of Operating Results From Continuing Operations for the Six Months Ended June 30, 2026 and 2025
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 $965 thousand provision for credit losses for the six months ended June 30, 2026 compared to a $838 thousand provision for the same period ended June 30, 2025.
Current report — wording carried from elsewhere
Provision (Benefit) for Income Tax Expense. The benefit for income taxes was $10 thousand for the six months ended June 30, 2026, compared to a provision of $607 thousand for the six months ended June 30, 2025. The change is a direct reflection of net income before income taxes for each period and there was no material change in the Bank’s effective tax rates. The gain on life insurance proceeds was not subject to income tax.
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, 2026. 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.