FB Financial Corp (FBK, Financial) released its third-quarter earnings report on October 16, 2023. The company reported a net income of $19.2 million, or $0.41 per diluted common share, for the third quarter of 2023, compared to $0.75 in the previous quarter and $0.68 in the third quarter of last year. Adjusted net income was $33.2 million, or $0.71 per diluted common share, compared to $0.77 in the previous quarter and $0.68 in the third quarter of last year.
Financial Performance and Achievements
The company's deposits were $10.64 billion as of September 30, 2023, compared to $10.87 billion as of June 30, 2023, and $10.01 billion as of September 30, 2022. Loans held for investment were $9.29 billion as of the end of the third quarter compared to $9.33 billion as of the end of the previous quarter and $9.11 billion as of the end of the third quarter last year. The company ended the quarter with a book value per common share of $29.31, tangible book value per common share of $23.93, and adjusted tangible book value per common share of $28.04.
Commentary from the CEO
President and Chief Executive Officer, Christopher T. Holmes stated, “The Company had a successful quarter executing on strategic initiatives to enhance earnings and position for expected opportunities. Our balance sheet management in the second half of 2022 and during 2023 to ensure ample liquidity, stable funding and excess capital allows us to focus on improving earnings at this point in the interest rate cycle."
Financial Tables Summary
The company's balance sheet highlights showed a decrease in investment securities, at fair value, from $1,422,391 in June 2023 to $1,351,153 in September 2023. Loans held for investment increased slightly from $9,105,016 in September 2022 to $9,287,225 in September 2023. Total assets stood at $12,489,631 in September 2023, a slight increase from $12,258,082 in September 2022.
Company's Performance Analysis
FB Financial Corp (FBK, Financial) showed a strong performance in the third quarter of 2023, with a net income of $19.2 million. Despite the impact of a $14.2 million net loss on securities and $4.8 million in early retirement and severance costs, the company managed to maintain a steady growth in its deposits and loans held for investment. The company's strategic initiatives and balance sheet management have positioned it favorably for future opportunities.
Other Pertinent Details
The company's net interest margin increased to 3.42% for the third quarter of 2023 compared to 3.40% in the prior quarter and 3.93% in the third quarter of 2022. This indicates an improvement in the company's earning capacity from its lending operations. The company's strong capital position has also allowed it to improve its earnings profile and stay favorably positioned for future opportunities.
