FB Bancorp in New Orleans warned that it will record a $5.8 million goodwill impairment charge tied to a decade-old acquisition.
The $1.4 billion-asset company disclosed in a regulatory filing that it recorded the noncash charge after conducting periodic testing of goodwill impairment. The review took into account a decrease in mortgage origination volume due to elevated interest rates.
The goodwill was established in January 2014 as part of the purchase of Nola Lending Group, which originates mortgages primarily for resale in the secondary market. Secondary mortgage volume at the NOLA segment has fallen from $1.2 billion in 2020 to $400 million in 2024.