FB Bancorp Reports Goodwill Impairment Charge in Fourth Quarter 2024

FB Bancorp, Inc. (NASDAQ:FBLA) announced in a recent Form 8-K filing with the Securities and Exchange Commission that it will be recording a non-cash goodwill impairment charge of $5,786,000. The impairment stems from a quantitative impairment test conducted by the company as of December 31, 2024. This impairment is attributed to a triggering event related to the decrease in mortgage origination volume, primarily due to the prevailing elevated interest rate environment.

The goodwill in question was initially established in January 2014 as part of Fidelity Bank’s acquisition of Nola Lending Group (NOLA). NOLA operates as a reportable segment of FB Bancorp, focusing on originating residential mortgages primarily for resale in the secondary market. The company highlighted that the national mortgage industry has experienced significant stress since mortgage interest rates surged in 2022 following the record low rates during the Covid pandemic in 2020 and 2021.

In the years ending 2020 to 2024, the NOLA segment’s annual closed secondary mortgage volumes were $1.2 billion, $1.0 billion, $0.6 billion, $0.5 billion, and $0.4 billion, respectively. FB Bancorp anticipated that the impairment would materially impact its reported earnings for the fourth quarter of 2024. However, the impairment of NOLA’s goodwill is not expected to affect the company’s cash flows, liquidity, tangible book equity, or regulatory capital ratios, and it does not imply a cessation of operations within this segment.

The company also included a forward-looking statement in the filing, stating that the content contains forward-looking information under the Private Securities Litigation Reform Act of 1995. FB Bancorp emphasized that these forward-looking statements involve inherent uncertainties and uncontrollable contingencies, with future business strategies and decisions subject to possible alterations. The company noted it is not under any obligation to update these statements after the filing date.

FB Bancorp signed off the Form 8-K report on January 30, 2025, with Todd Wanner, the Chief Financial Officer and Treasurer, duly authorized on behalf of the company.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read FB Bancorp’s 8K filing here.

FB Bancorp Company Profile

FB Bancorp Inc operates as a bank holding company for Fidelity Bank. The Company, through its subsidiaries, provides deposit accounts, mortgages, home equity and consumer loans, credit and debit cards, online and mobile banking, investments and other financial services. FB Bancorp Inc is based in New Orleans.