In This Article:
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Earnings Per Share (EPS): Reported EPS of $0.22; adjusted EPS of $0.86.
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Adjusted Return on Average Assets: 1.25%.
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Adjusted Pre-Tax Pre-Provision Net Revenue: Increased by 2.7% from the prior quarter and 20% year over year.
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Adjusted Efficiency Ratio: 58.4%.
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Tangible Common Equity to Tangible Assets: 10.4%.
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CET1 Ratio: 12.7%.
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Total Risk-Based Capital Ratio: 15.1%.
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Loan Growth: 7.2% annualized loan growth.
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Non-Broker Deposit Growth: 5.4% annualized growth.
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Net Interest Income: $106 million.
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Non-Interest Income: Negative $16.5 million; core non-interest income of $24 million.
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Non-Interest Expense: $76.2 million.
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Net Interest Margin: 3.55%.
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Yield on Loans Held for Investment: 6.7%.
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Cost of Non-Brokered Interest Bearing Deposits: Increased to 3.53%.
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Allowance for Credit Loss to Loans Held for Investment: 1.65%.
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Non-Performing Loans to Loans Held for Investment: 0.96%.
Release Date: October 15, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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FB Financial Corp (NYSE:FBK) reported adjusted earnings per share of $0.86, up 21% year over year.
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The company achieved a compound annual growth rate of 12.9% in tangible book value per share since its IPO.
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FB Financial Corp (NYSE:FBK) maintained strong capital ratios, including a CET1 ratio of 12.7% and a total risk-based capital ratio of 15.1%.
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The company experienced 7.2% annualized loan growth and 5.4% annualized non-broker deposit growth in the quarter.
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FB Financial Corp (NYSE:FBK) expanded its team by adding 20 senior revenue producers in 2024, enhancing its growth potential.
Negative Points
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Net interest margin decreased slightly to 3.55%, indicating pressure on profitability.
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Non-performing loans to loans held for investment increased to 0.96%, driven by two commercial credits and softness in consumer loans.
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The company reported a $40 million pre-tax loss on securities trade, impacting non-interest income.
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Cost of interest-bearing deposits increased, with non-brokered interest-bearing deposits rising to 3.53%.
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FB Financial Corp (NYSE:FBK) anticipates challenges in deposit growth, particularly on the custom deposit side.
Q & A Highlights
Q: How do lower rates act as an earnings growth catalyst for FB Financial Corp? A: Christopher Holmes, President and CEO, explained that FB Financial is well-matched between its asset and liability sides. With a significant portion of deposits indexed and a relatively low percentage in CDs, the bank can maintain or even expand its margin as rates move gradually. The strength of local economies and a stable team further support optimism for future growth.