Loan Portfolio - As of September 30, 2025, commercial real estate loans amounted to $258.2 million, or 33.9% of total loans, while commercial loans totaled $89.4 million, or 11.7% of total loans[124] - The NOLA division originated $289.5 million of one- to four-family residential mortgage loans held for sale for a gain on sale of approximately $11.3 million during the nine months ended September 30, 2025[124] - Non-performing loans totaled $14.6 million, or 1.9% of total loans, as of September 30, 2025, indicating strong asset quality[124] - Loans held for investment, net, increased by $3.1 million, or 0.4%, to $753.8 million at September 30, 2025[145] - Total non-performing loans increased to $14.6 million at September 30, 2025, compared to $11.0 million at September 30, 2024, with 38.2% of the increase attributed to one- to four-family residential loans[169] Financial Performance - Net income for the three months ended September 30, 2025, was $1.08 million compared to a net loss of $895,000 for the same period in 2024[139] - For the nine months ended September 30, 2025, net interest income increased by $6.336 million compared to the same period in 2024, driven by a rise in interest-earning assets[156] - Net income for the nine months ended September 30, 2025 was $2.7 million, compared to a net loss of $853,000 for the same period in 2024, driven by a $6.3 million increase in net interest income[174] - Non-interest income decreased by $223,000, or 4.2%, to $5.1 million for the three months ended September 30, 2025, primarily due to a decrease in gains from the sale of mortgage servicing rights[171] - Non-interest income for the nine months ended September 30, 2025 totaled $14.5 million, a decrease of $2.9 million, or 16.6%, from $17.3 million for the same period in 2024[186] Asset and Liability Management - Total assets increased by $43.2 million, or 3.5%, to $1.26 billion at September 30, 2025, from $1.22 billion at December 31, 2024[142] - Cash and cash equivalents decreased by $33.1 million, or 33.5%, to $65.7 million at September 30, 2025, from $98.8 million at December 31, 2024[143] - Available-for-sale investment securities increased by $54.2 million, or 22.2%, to $298.3 million at September 30, 2025[144] - Total deposits increased by $39.2 million, or 4.9%, to $839.9 million at September 30, 2025[147] - The bank's liquidity position is monitored daily, ensuring sufficient funds to meet current commitments[206] Capital and Equity - Total equity increased by $11.9 million, or 3.7%, to $338.2 million at September 30, 2025[149] - The bank's Tier 1 leverage capital was $256.7 million, representing 20.1% of adjusted assets, categorizing it as well-capitalized[207] - The average equity to assets ratio improved to 26.55% for the three months ended September 30, 2025, compared to 13.31% in 2024, indicating a stronger capital position[154] Interest Income and Expense - Net interest margin increased to 4.65% for the three months ended September 30, 2025, compared to 4.21% in 2024[139] - Interest income increased by $1.3 million, or 8.0%, to $18.3 million for the three months ended September 30, 2025, compared to $16.9 million for the same period in 2024[162] - Total interest expense decreased by $818,000, or 14.9%, to $4.7 million for the three months ended September 30, 2025, mainly due to a reduction in interest expense on other borrowed funds[166] Operational Efficiency - The efficiency ratio improved to 90.67% for the three months ended September 30, 2025, from 105.01% in 2024[139] - The company reported a decrease of $568,000, or 5.3%, in salaries and employee benefits for the three months ended September 30, 2025, contributing to improved profitability[161] - Non-interest expense decreased by $651,000, or 3.7%, to $17.0 million for the three months ended September 30, 2025, primarily due to a reduction in salaries and employee benefits[172] Strategic Initiatives - The company plans to continue expanding its online banking infrastructure and its fully digital bank, "Andi," to meet customer needs and expand its customer base[129] - The company intends to pursue organic growth while considering opportunistic acquisitions or branching, funded by capital raised through the stock offering[129] - The company emphasizes maintaining a community-oriented approach to banking, focusing on high-quality service to build a loyal customer base[129] Economic Sensitivity - As of September 30, 2025, the estimated Economic Value of Equity (EVE) would decrease by 9.53% with a 200 basis point increase in interest rates, and increase by 7.22% with a 200 basis point decrease[197] - The bank's net interest income (NII) would increase by 1.80% with a 200 basis point increase in interest rates, and decrease by 8.50% with a 200 basis point decrease[200]
FB Bancorp, Inc.(FBLA) - 2025 Q3 - Quarterly Report