FB Bancorp (FBLA) Registration Filing summary

Company overview and business model

• Newly formed Maryland holding company for a Louisiana-based mutual savings bank converting to stock form, with 18 branches and a focus on residential and commercial lending in southern Louisiana, the Florida panhandle, and Mississippi.

• Main revenue sources are interest income from loans and investments, with a growing emphasis on higher-yielding commercial real estate and commercial loans.

• NOLA division originates residential mortgages for resale, supporting non-interest income.

• Business strategy includes prudent loan portfolio growth, digital banking expansion, and potential acquisitions.

Financial performance and metrics

• As of June 30, 2024: total assets $1.17B, total deposits $770.6M, total equity $155.7M.

• Net income for Q2 2024 was $849K, reversing a net loss of $338K in Q2 2023; net income for the first half of 2024 was $42K.

• Net interest margin declined to 4.31% for Q2 2024 from 4.84% in Q2 2023; efficiency ratio improved to 92.5%.

• Allowance for credit losses at 0.80% of total loans; non-performing loans at 1.35% of total loans as of June 30, 2024.

• Loan growth driven by commercial real estate and residential construction; deposit growth primarily in certificates of deposit.

Use of proceeds and capital allocation

• Net proceeds from the IPO expected between $124.6M and $169.2M, up to $194.8M if the range is increased.

• At least 50% of net proceeds to be contributed to the bank to support loan growth, pay off $120M in Federal Reserve Bank Term Funding, and invest in digital infrastructure.

• Remaining proceeds may be used for share repurchases, dividends, investments, and general corporate purposes.

• Employee stock ownership plan to purchase up to 8% of shares; stock-based benefit plans may be implemented post-offering.