8-K: FB Bancorp Reports Q2 2026 Results Amid Mortgage Segment Sale

FB Bancorp, Inc. announced its second quarter 2026 financial results, reporting a net loss of $70 thousand, impacted by the sale of its mortgage banking segment.

Summary

• FB Bancorp, Inc. reported a net loss of $70 thousand for the three months ended June 30, 2026, compared to a net income of $879 thousand in the same period of 2025.
• For the six months ended June 30, 2026, the company reported a net income of $49 thousand, a decrease from $1.58 million in the prior year period.
• The net loss from discontinued operations for the quarter was $767 thousand, primarily due to the sale of the mortgage banking segment, NOLA Lending Group, which closed on March 1, 2026.
• Net income from continuing operations for the quarter was $697 thousand, down from $1.03 million in Q2 2025.
• Total assets were $1.23 billion at June 30, 2026, a decrease from $1.26 billion at December 31, 2025.
• Total equity decreased by 9.74% to $283.8 million from $314.5 million at year-end 2025, largely due to stock repurchases and accumulated other comprehensive loss.
• The company announced approval of a third stock repurchase program authorizing the repurchase of up to 1,606,837 shares.

Sentiment

Score: 3

Explanation: StockSavvy.ai views this as a negative sentiment due to the reported net loss for the quarter and the significant decrease in net income from continuing operations, despite the strategic sale of the mortgage segment.

Positives

• Net income from continuing operations for the six months ended June 30, 2026 was $1.2 million.
• Total non-interest income for the six months ended June 30, 2026 increased by $1.3 million, or 66.70%, largely due to a $1.2 million gain on life insurance proceeds.
• Securities available for sale increased by $11.7 million, or 3.58%, due to favorable investment yields.
• Loans held for investment increased by $1.6 million, or 0.21%.
• Non-performing loans decreased to $13.8 million at June 30, 2026, from $16.9 million at December 31, 2025.
• Non-performing loans as a percentage of total loans decreased to 1.85% from 2.26%.
• The company has a third stock repurchase program authorized for up to approximately 10% of outstanding common stock.

Negatives

• Net income for the three months ended June 30, 2026 was a loss of $70 thousand, compared to a net income of $879 thousand in the prior year period.
• Net income for the six months ended June 30, 2026 was $49 thousand, a significant decrease from $1.58 million in the prior year period.
• Net income from continuing operations decreased to $697 thousand in Q2 2026 from $1.03 million in Q2 2025.
• Total non-interest expenses increased by $2.8 million, or 12.81%, for the six months ended June 30, 2026.
• Net interest margin decreased to 4.34% for the six months ended June 30, 2026, from 4.63% in the prior year period.
• Total deposits decreased by $30.4 million, or 3.62%, to $811.0 million at June 30, 2026.
• Total equity decreased by $30.6 million, or 9.74%, to $283.8 million at June 30, 2026.

Risks

• Increased competitive pressures in the financial services industry.
• Changes in the interest rate environment and inflation.
• General economic conditions, particularly those affecting the financial services industry.
• Significant turbulence or disruption in capital or financial markets.
• The effect of a fall in stock market prices on investment securities.
• Volatility in global or specific markets for equity, fixed income, and other asset classes.
• Potential recessionary conditions.
• Changes in the quality of loan and security portfolios.

Future Outlook

The company expects remaining losses from discontinued operations to be significantly less over the final months of 2026. The company expects continued runoff of total residential mortgage loans.

Management Comments

• The sale of the mortgage banking segment allowed the Bank to exit a business segment that had a net loss of approximately $2.7 million in 2025 and reduced total employees by approximately 108 individuals.
• 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.

Industry Context

StockSavvy.ai notes that the sale of a mortgage banking segment is a strategic move often seen in the banking industry to streamline operations and focus on core lending activities, especially during periods of declining mortgage volumes or increased competition.

Comparison to Industry Standards

• The net interest margin of 4.20% for Q2 2026 is below the industry average for regional banks, which can fluctuate but often hovers around 3.00% to 4.00% depending on the economic environment and asset mix.
• The efficiency ratio of 92.62% for Q2 2026 is significantly higher than industry standards, indicating lower operational efficiency compared to peers. Many well-managed regional banks aim for efficiency ratios below 60%.
• Capital ratios, such as Total risk-based capital at 29.96%, are well above regulatory minimums and generally considered strong within the banking sector.

Stakeholder Impact

• Shareholders: The net loss and decreased profitability may negatively impact shareholder confidence and stock price. The stock repurchase program could provide some support.
• Employees: The sale of the mortgage segment resulted in a reduction of approximately 108 employees. Severance costs were incurred.
• Creditors: The decrease in total deposits and increase in borrowings may impact the company's leverage and funding costs.

Next Steps

• The Company expects to absorb remaining assets and liabilities from the discontinued mortgage banking segment 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.
• The Company expects continued runoff of total residential mortgage loans.

Key Dates

Recommendation

The company's results show a decline in profitability, particularly from continuing operations, and a worsening efficiency ratio. While the sale of the mortgage segment is a strategic move, the immediate financial impact is negative. The strong capital ratios provide a buffer, but the operational performance needs improvement before a more positive recommendation can be made.

Keywords

FB Bancorp, Fidelity Bank, Financial Results, Quarterly Earnings, Discontinued Operations, Mortgage Banking, Stock Repurchase, Net Income