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Sep 30, 2024

FB Financial Q3 2024 Earnings Report

FB Financial reported mixed results, with a decrease in net income but an increase in adjusted net income, driven by loan and deposit growth and strategic balance sheet enhancements.

Key Takeaways

FB Financial Corporation reported a decrease in net income to $10.2 million, or $0.22 per diluted common share, for Q3 2024, compared to the previous quarter and the same quarter last year. However, adjusted net income increased to $40.1 million, or $0.86 per diluted common share. The company experienced growth in loans and deposits and is optimistic about future interest rate decreases.

Net income decreased to $10.2 million, or $0.22 per diluted common share.

Adjusted net income increased to $40.1 million, or $0.86 per diluted common share.

Loans held for investment increased to $9.48 billion, representing a 7.20% annualized increase.

Deposits increased to $10.98 billion.

Total Revenue
$89.5M
Previous year: $109M
-17.8%
EPS
$0.86
Previous year: $0.71
+21.1%
Net Interest Margin
3.55%
Previous year: 3.42%
+3.8%
Efficiency Ratio
85.1%
Previous year: 76.2%
+11.7%
Cash and Equivalents
$952M
Previous year: $848M
+12.2%
Free Cash Flow
$46.7M
Previous year: $26.1M
+78.7%
Total Assets
$12.9B
Previous year: $12.5B
+3.4%

FB Financial

FB Financial

Forward Guidance

The Company is moving into the end of the year in a position of strength and maintains a long-term focus, consistently compounding shareholder value through our commitment to serving our customers and our communities.

Positive Outlook

  • Enhancing balance sheet to provide security and the platform for further growth.
  • Loan and deposit growth was encouraging during the quarter.
  • Optimistic about 2025 with some momentum and expected future interest rate decreases.
  • Delivered on relationship growth during the quarter with core deposit growth of 5.36% annualized and loan growth of 7.20% annualized.
  • Steadily increasing its capital, enabling strategic deployment through market expansion, relationship manager additions and balance sheet enhancements.

Challenges Ahead

  • NIM was impacted by the recent investment portfolio restructuring, the addition of brokered deposits and the effect of the decrease in the federal funds rate during the quarter.
  • Nonperforming assets moved higher during the quarter related to downgrades on a couple of individual credits and some softness in consumer loans.
  • Loss from securities, net $(40,165).
  • Total noninterest (loss) income $(16,497).
  • Efficiency Ratio 85.1%