On January 16, 2024, FB Financial Corp (FBK, Financial) released its 8-K filing, detailing the financial results for the fourth quarter of 2023. The bank holding company, which operates through its wholly-owned subsidiary FirstBank, reported a net income of $29.4 million, or $0.63 per diluted common share. This performance marks a change from $0.41 in the previous quarter and $0.81 in the same quarter of the previous year. Adjusted net income, which excludes certain non-recurring items, stood at $36.2 million, or $0.77 per diluted common share.
FB Financial Corp's loans HFI saw growth, reaching $9.41 billion, a 5.19% annualized increase. However, total deposits experienced a decline, falling to $10.55 billion as of December 31, 2023, from $10.86 billion at the end of the same quarter in the previous year. Despite this, the company managed to increase its net interest margin to 3.46% for the quarter, up from 3.42% in the prior quarter and down from 3.78% in the fourth quarter of 2022.
The company's balance sheet remains robust, with a book value per common share of $31.05 and a tangible book value per common share of $25.69, representing significant annualized increases from the previous quarter. These metrics are particularly important for banks as they reflect the underlying value and financial health of the institution.
Financial Performance Analysis
FB Financial Corp's performance in the fourth quarter reflects both achievements and challenges. The growth in loans HFI and the expansion of the net interest margin are positive indicators of the company's ability to generate earnings from its core banking activities. However, the decrease in total deposits could signal a need to attract more customer deposits or adjust pricing strategies to remain competitive.
President and CEO Christopher T. Holmes commented on the company's strategic initiatives, emphasizing the focus on growing core banking relationships, improving net interest margin, and reducing expenses. He noted that the company is well-prepared to face potential economic challenges and capitalize on opportunities, thanks to its performance in 2023.
"The Company continues to execute well in key initiatives of limiting balance sheet risk, improving profitability, and enhancing operations. We have had success growing core banking relationships, improving net interest margin and reducing expenses while improving our risk profile by managing credit concentrations, all during what was a difficult banking year. Our success in 2023 has prepared us to deal with potential economic challenges, and at the same time, has positioned us to take advantage of opportunities," said Holmes.
FB Financial Corp's earnings report provides valuable insights for value investors and potential GuruFocus.com members, highlighting the company's financial resilience and strategic focus in a challenging banking environment.
For more detailed financial information and the full earnings presentation, investors are encouraged to review the Fourth Quarter 2023 Financial Supplement and Earnings Presentation available on the company's website and included with the 8-K filing furnished to the U.S. Securities and Exchange Commission on January 16, 2024.
FB Financial Corporation is headquartered in Nashville, Tennessee, and operates 81 full-service bank branches across Tennessee, Kentucky, Alabama, and North Georgia, with mortgage offices across the Southeast. The company's total assets amount to approximately $12.60 billion.
For further information, please contact Jeanie M. Rittenberry for media inquiries or Michael Mettee for financial inquiries.
Explore the complete 8-K earnings release (here) from FB Financial Corp for further details.
