FBLA

FB Bancorp($FBLA) Management Shows Confidence with 7 Consecutive Purchases, Zero Sales Over Past Year...0.65x PBR Discount Opportunity

11/21/2025 17:34

FB Bancorp($FBLA) insiders are sending a compelling signal that's catching market attention. Despite the New Orleans-based regional bank holding company posting an annual net loss of $2.7 million, executives and directors have made seven consecutive purchases over the past year with zero sales transactions. Established in 1908, FB Bancorp serves as the holding company for Fidelity Bank, providing traditional banking services and mortgage banking operations through deposit gathering, loan origination, and mortgage servicing. With a market capitalization of approximately $240 million, this small regional bank maintains solid liquidity with $66.08 million in cash reserves. The stock currently trades at 0.65x book value, representing a significant discount to its net asset value. The most notable aspect is the strategic timing of insider purchases. When shares dropped to around $10 in June 2025, President Christopher Ferris bought 500 shares at $10.88, while Officer Josh Folds purchased 1,846 shares at $10.82. This wasn't ceremonial buying - Folds' approximately $20,000 purchase represented a substantial commitment during the stock's lowest point. Analyzing the concentration of insider buying reveals management's strong conviction about fundamental improvements ahead. In November 2024, Director Gerard Barousse purchased 5,000 shares at $12.21 (approximately $61,000), followed by smaller purchases from CFO Todd Wanner and COO Randall Baker in February and March 2025. Most recently, President Ferris made another purchase at $12.03 in November 2025. Regional banks face challenging headwinds. Rising interest rates pressure net interest margins while real estate market cooling constrains loan demand. FB Bancorp itself reports diluted EPS of -$1.54 on a trailing twelve-month basis, making profitability recovery urgent. Yet consistent insider buying amid these challenges suggests markets may be missing something significant. Deeper examination of insider trading patterns indicates management likely anticipates a turning point. The November 2025 additional purchase, ahead of scheduled earnings between September-October, is particularly meaningful. When executives with access to internal information continue buying, it could signal positive changes in Q3 results or forward guidance. Key metrics investors should monitor include net interest margin improvement, provision expense reduction, and fee income growth from the mortgage banking segment. The current 0.65x price-to-book ratio remains substantially below industry averages, maintaining an undervalued position relative to asset value. Considering multiple scenarios, the optimistic case suggests interest rate stabilization could improve net interest margins while bad asset cleanup completion enables profit recovery starting in Q3-Q4. The base scenario anticipates breakeven achievement in H2 2025 followed by gradual profitability restoration. However, the risk scenario involves potential loss expansion and capital erosion if regional economic conditions deteriorate or real estate markets decline further. Investors should closely watch continued insider buying patterns and Q3 earnings results. If performance improvements accompany sustained insider purchases, this could represent a compelling bottom-fishing opportunity. However, disappointing results would warrant caution against further downside risk.