On October 15, 2024, FB Financial Corp (FBK, Financial) released its 8-K filing detailing its financial performance for the third quarter of 2024. FB Financial Corp, a bank holding company, operates through its wholly-owned subsidiary, FirstBank, providing commercial and consumer banking services in Tennessee, North Alabama, and North Georgia. The company is segmented into Banking and Mortgage, with the Banking segment being the primary revenue generator.
Performance Overview and Challenges
FB Financial Corp reported a diluted earnings per share (EPS) of $0.22 for Q3 2024, a significant decrease from $0.85 in the previous quarter. However, the adjusted diluted EPS was $0.86, surpassing the analyst estimate of $0.80. The company's net income stood at $10.2 million, down from $39.98 million in the prior quarter. Despite the decline in net income, the adjusted net income was $40.1 million, reflecting a positive adjustment from the previous quarter's $39.42 million.
The company faced challenges with a net loss from securities amounting to $40.2 million, impacting the noninterest income, which recorded a loss of $16.5 million. This was a significant drop from the $25.6 million gain in the previous quarter. The efficiency ratio also increased to 85.1% from 58.6%, indicating higher operational costs relative to revenue.
Financial Achievements and Importance
FB Financial Corp's total deposits grew to $10.98 billion, a 19.3% annualized increase from the previous quarter. The net interest margin (NIM) slightly decreased to 3.55% from 3.57%, but remained higher than the 3.42% recorded in the same quarter last year. The company's loan portfolio also expanded, with loans held for investment (HFI) reaching $9.48 billion, a 7.20% annualized increase from the previous quarter.
President and Chief Executive Officer, Christopher T. Holmes stated, “The Company continues enhancing an already strong balance sheet to provide security and the platform for further growth. Our loan and deposit growth was encouraging during the quarter, and we are optimistic about 2025 with some momentum and expected future interest rate decreases.”
Key Financial Metrics and Analysis
The company's balance sheet showed total assets of $12.92 billion, up from $12.54 billion in the previous quarter. The book value per common share increased to $33.48, and the tangible book value per common share rose to $28.15, reflecting a 19.7% annualized increase. The allowance for credit losses on loans HFI was $156.3 million, representing 1.65% of loans HFI, slightly down from 1.67% in the previous quarter.
| Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Net Interest Income | $106.02 million | $102.62 million | $100.93 million |
| Total Revenue | $89.52 million | $128.22 million | $108.97 million |
| Net Income | $10.22 million | $39.98 million | $19.18 million |
| Adjusted Net Income | $40.13 million | $39.42 million | $33.15 million |
FB Financial Corp's performance in Q3 2024 highlights its ability to maintain growth in deposits and loans despite challenges in noninterest income. The company's strategic focus on enhancing its balance sheet and capital position is evident in its improved book value and tangible book value per share. The adjusted financial metrics indicate a resilient core performance, positioning the company for potential growth in the coming quarters.
Explore the complete 8-K earnings release (here) from FB Financial Corp for further details.
