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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.
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%