Financial Position - Total assets increased by $34.5 million, or 2.82%, to $1.26 billion at December 31, 2025, primarily due to growth in securities available for sale [280]. - Loans held for investment decreased by $13.0 million, or 1.73%, to $737.7 million at December 31, 2025, attributed to reduced loan demand in the second half of 2025 [283]. - Deposits increased by $40.7 million, or 5.08%, to $841.4 million at December 31, 2025, with certificates of deposit rising by $42.6 million, or 13.50% [285]. - Core deposits decreased by $2.0 million, or 0.41%, to $482.9 million at December 31, 2025, while the total increase in deposits included $27.0 million from a new branch opened in August 2025 [285]. - Total equity decreased by $11.8 million, or 3.62%, to $314.5 million at December 31, 2025, primarily due to common stock repurchases totaling $22.2 million [286]. Loan and Credit Quality - Commercial real estate loans amounted to $248.7 million, or 33.4% of total loans, while commercial loans totaled $92.2 million, or 12.4% of total loans as of December 31, 2025 [264]. - Non-performing loans totaled 2.27% of total loans at December 31, 2025, reflecting the company's conservative underwriting standards [266]. - Total non-performing loans were $16.9 million at December 31, 2025, compared to $13.0 million at December 31, 2024 [300]. - The allowance for credit losses was $6.3 million at December 31, 2025, representing 0.85% of total loans, compared to 0.82% at December 31, 2024 [299]. - The provision for credit losses was $1.7 million for the year ended December 31, 2025, compared to $1.5 million for 2024, representing a 12.42% increase [299]. Income and Expenses - Net income from continuing operations increased by $2.4 million, or 161.43%, to $3.9 million for the year ended December 31, 2025, compared to $1.5 million for 2024 [292]. - Net interest income rose by $6.6 million, or 15.82%, to $48.0 million for the year ended December 31, 2025, from $41.4 million for 2024 [298]. - Interest income increased by $4.9 million, or 8.10%, to $65.9 million for the year ended December 31, 2025, compared to $60.9 million for 2024 [293]. - Total interest expense decreased by $1.6 million, or 8.38%, to $17.8 million for the year ended December 31, 2025, from $19.4 million for 2024 [297]. - Non-interest income totaled $4.1 million for the year ended December 31, 2025, a decrease of $515 thousand, or 11.07%, from $4.7 million for 2024 [302]. - Non-interest expense increased by $2.7 million, or 6.40%, to $45.6 million for the year ended December 31, 2025, compared to $42.9 million for 2024 [303]. Tax and Discontinued Operations - The provision for income taxes recognized for the year ended December 31, 2025, was $870 thousand, an increase from $195 thousand for the year ended December 31, 2024 [304]. - The net loss from discontinued operations for the year ended December 31, 2025, was $2.7 million, a reduction of $5.0 million from the $7.7 million loss for the year ended December 31, 2024 [305]. Market and Economic Sensitivity - At December 31, 2025, the estimated economic value of equity (EVE) would decrease by 11.74% in the event of a 200 basis point increase in market interest rates [313]. - The estimated net interest income (NII) would increase by 2.40% in the event of a 200 basis point increase in market interest rates [315]. Capital and Borrowings - Fidelity Bank's Tier 1 leverage capital was $255.3 million, representing 20.02% of adjusted assets, categorizing it as well-capitalized [323]. - As of December 31, 2025, the outstanding borrowings from the Federal Home Loan Bank of Dallas were $78.3 million, with an additional borrowing capacity of $351.8 million [318]. - At December 31, 2025, there were $268.0 million of outstanding commitments to originate loans, including $228.2 million in revolving lines of credit [324]. - The company anticipates retaining a significant portion of maturing time deposits, which total $217.7 million scheduled to mature in less than one year from December 31, 2025 [324]. 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 [268]. - The company intends to grow assets organically while considering opportunistic acquisitions or branching to enhance franchise value and stockholder returns [270]. - The company has implemented strategies to manage interest rate risk, including maintaining high liquidity and diversifying the loan portfolio [312]. Accounting Standards - The financial statements are prepared according to GAAP, reflecting historical dollars without considering inflation impacts, which primarily affect operating costs [326].
FB Bancorp, Inc.(FBLA) - 2025 Q4 - Annual Report