Executive Summary

Q4 2024 headline loss driven by a $5.8M non‑cash goodwill impairment in NOLA Lending; underlying non‑GAAP operating income was $0.43M for the quarter, indicating core profitability excluding the charge .
Net interest income rose 19.9% YoY to $13.2M with NIM at 4.50% (vs. 4.44% Q4’23), aided by higher earning assets and loan yields, while non‑interest income fell 39.7% on fewer mortgage‑related gains and OREO losses .
Balance sheet strengthened post‑conversion: equity doubled to $326.3M, equity/assets to 26.7%; other borrowings reduced to $73.5M by year‑end (and $85M of BTFP repaid in Nov) supporting lower funding costs going forward .
Asset quality mixed: NPLs rose to 1.72% of loans (majority residential), reflecting elevated Gulf Coast insurance costs; ACL/loans at 0.82% and net charge‑offs improved YoY .
No call transcript or formal guidance available; key near‑term narrative catalysts are mortgage segment restructuring, deposit mix normalization post‑conversion, and further deleveraging from IPO proceeds .

What Went Well and What Went Wrong

What Went Well

Net interest income and margin improved: Q4 NII $13.2M (+$2.2M YoY) and NIM 4.50% vs. 4.44% on higher loan balances and yields .
Cost actions in mortgage banking: fourth‑quarter non‑GAAP NOLA loss included $352K severance, with ongoing overhead reductions to lower delivery costs; annual payroll reductions ~beginning Q4’24 .
De‑risking and capital build: IPO conversion lifted equity to $326.3M and reduced other borrowings to $73.5M; efficiency in Q4 (ex‑impairment) improved vs. prior year .

What Went Wrong

Non‑interest income contracted: Q4 non‑interest income fell to $2.7M (‑39.7% YoY) due to absent MSR sale gains, lower mortgage loan sale gains, and OREO sale losses .
Efficiency ratio elevated: Q4 efficiency ratio 128.68% (vs. 105.90% Q4’23), reflecting goodwill impairment and softer fee income mix .
Asset quality pressures: NPLs increased to 1.72% of loans (4.01% of residential balance), driven by insurance cost burdens in local markets; ACL coverage of NPLs declined vs. prior year .

Financial Results

Consolidated P&L and Margins (Quarterly comparison: oldest → newest)

Metric	Q4 2023 ($USD Millions)	Q2 2024 ($USD Millions)	Q3 2024 ($USD Millions)	Q4 2024 ($USD Millions)
Net Interest Income	$11.02	$10.94	$11.42	$13.22
Total Non-Interest Income	$4.42	$7.26	$5.37	$2.66
Total Non-Interest Expense	$16.35	$16.83	$17.64	$20.43
Net Income (Loss)	$(1.18)	$0.85	$(0.90)	$(5.36)
Net Interest Margin %	4.44%	4.31%	4.21%	4.50%
Efficiency Ratio %	105.90%	92.49%	105.01%	128.68%

Notes:

Q4 2024 includes $5.786M goodwill impairment in non‑interest expense; excluding impairment, Q4 non‑interest expense was ~$14.6M .

Balance Sheet Snapshot (Quarterly comparison)

Metric	Q4 2023 ($USD Millions)	Q2 2024 ($USD Millions)	Q3 2024 ($USD Millions)	Q4 2024 ($USD Millions)
Total Assets	$1,124.9	$1,171.5	$1,407.7	$1,220.9
Loans HFI (Gross)	$665.7	$722.9	$730.3	$756.9
Deposits	$769.3	$770.6	$1,006.0	$800.7
Other Borrowings	$172.2	$218.5	$214.0 (FHLB)	$73.5
Total Equity	$156.7	$155.7	$161.5	$326.3

Segment Operating Results (Non‑GAAP Operating Income, $USD Thousands)

Segment	Q1 2024	Q2 2024	Q3 2024	Q4 2024
FB Bancorp & Fidelity Bank (Traditional)	$442	$330	$523	$2,071
NOLA Lending (Mortgage)	$(1,249)	$(1,259)	$(1,681)	$(1,646)
Consolidated Non‑GAAP Operating Income	$(807)	$(929)	$(1,158)	$425

Adjustments: Excludes $5.786M goodwill impairment (Q4) and ~$2.041M after‑tax gains on MSR sales (Q2–Q3) .

KPIs and Asset Quality (Quarterly comparison)

KPI	Q4 2023	Q2 2024	Q3 2024	Q4 2024
ROAA %	(0.11)%	0.08%	(0.08)%	(0.42)%
ROAE %	(0.79)%	0.55%	(0.57)%	(1.81)%
Interest Rate Spread %	3.96%	3.82%	3.63%	3.67%
ACL / Total Loans %	0.93%	0.80%	0.80%	0.82%
NPLs / Total Loans %	1.15%	1.35%	1.51%	1.72%
NPLs / Total Assets %	0.68%	0.84%	0.78%	1.06%
Net Charge‑offs / Avg Loans %	0.03%	0.08%	0.03%	0.04%

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Formal Financial Guidance	FY/Q4 2024	None	None	Maintained (no guidance provided)
Mortgage Banking Reorg Costs	Q4 2024	n/a	~$0.35M severance within NOLA Q4 non‑GAAP loss	New disclosure
Public Company Cost Commentary	Post‑conversion	Anticipated increase	Expect higher non‑interest expense from public company costs and ESOP plan	Qualitative (no range)
Liquidity/Leverage Actions	Q4 2024	n/a	Other borrowings reduced to $73.5M; $85M BTFP repaid in Nov	Deleveraging
Dividends	FY 2024	n/a	None disclosed	n/a

Earnings Call Themes & Trends

No Q4 2024 call transcript available.

Topic	Previous Mentions (Q2 & Q3 2024)	Current Period (Q4 2024)	Trend
Mortgage banking volume/MSR strategy	MSR sales: $2.3M gain (May); lower servicing revenue from prior MSR sales; hedging gains modest	No MSR sale gains; mortgage gain on loan sales down; OREO losses in Q4	Fee income down; restructuring ongoing
Interest rate risk/NIM	NIM 4.31% (Q2); 4.21% (Q3); EVE/NII sensitivity tighter with rate hikes	NIM improved to 4.50%; used excess cash to pay down higher‑cost borrowings	Improving margin; deleveraging supports
Deposits/liquidity	Core deposits fell in Q2; rose in Q3 with $254M tentative conversion proceeds; borrowings up	Deposits $800.7M; other borrowings cut to $73.5M; equity/assets 26.7%	Normalizing mix; stronger liquidity
Asset quality (residential)	NPLs up to 1.35% (Q2) & 1.51% (Q3); ACL/NPL coverage declined	NPLs 1.72%; majority residential with WA LTV <80%; Gulf Coast insurance costs cited	Elevated pressure continues
Digital initiatives/Andi	Ongoing expansion; higher data processing/marketing costs	Continued emphasis implied; lower data processing in Q4 vs prior year	Investment pacing; cost focus
Capital/Conversion	Preparation in Q2–Q3; IPO closed Oct 22; shares began trading Oct 23	Equity $326.3M; book value/share $17.81	Capitalized; flexibility increases

Management Commentary

“The Bank has been reducing overhead with the intent to lower the cost of delivery in the current low mortgage volume environment.” (Exhibit 99.1 press release) .
“Residential real estate loans remain under elevated credit pressures in our gulf coast lending markets due to rising insurance costs.” .
“During the fourth quarter of 2024, the Bank used excess cash to pay down higher cost borrowings.” .
“The Company believes this disclosure is useful in evaluating the Company’s financial results.” (re: non‑GAAP operating income) .

Q&A Highlights

No earnings call transcript or Q&A available for Q4 2024; no additional guidance clarifications identified from public documents .

Estimates Context

Wall Street consensus (S&P Global) for Q4 2024 EPS and revenue was unavailable at time of query due to API rate limits. As a result, comparisons vs estimates cannot be presented. We default to S&P Global for consensus when available in future periods.

Key Takeaways for Investors

Core banking momentum: NIM and NII improved on higher loan balances and paydown of high‑cost borrowings; margin resilience is a near‑term support for earnings normalization post‑impairment .
Mortgage segment headwinds: Fee income softness and OREO losses offset core NII strength; watch restructuring benefits and fee mix stabilization in 1H 2025 .
Strengthened capital and reduced leverage post‑conversion provide flexibility to fund loan growth and absorb credit normalization without equity constraints .
Asset quality watch‑list: Residential NPLs driven by insurance burdens in local markets; monitor delinquency trends, ACL adequacy, and collateral valuations amid macro insurance dynamics .
Operating efficiency: Ex‑impairment expense reductions (hedging, G&A, data processing) are encouraging; sustained cost discipline is key to restoring sub‑100% efficiency ratio .
Liquidity positioning: Deposit mix normalization post‑IPO proceeds and FHLB/FRB capacity support funding stability; deleveraging trend likely continues .
Near‑term trading implications: Limited guidance and no call transcript reduce visibility; any updates on mortgage reorg progress, NIM trajectory, and asset quality will likely be stock catalysts around next filings .

FB Bancorp, Inc. /MD/ (FBLA)·Q4 2024 Earnings Summary