On April 15, 2024, FB Financial Corp (FBK, Financial) released its 8-K filing, reporting financial results for the first quarter of 2024. FBK, a bank holding company operating through its wholly-owned subsidiary FirstBank, provides a range of banking services across select markets. The company's Banking segment, its primary revenue generator, offers deposit and lending products to a diverse customer base.
FB Financial Corp reported a net income of $28.0 million, or $0.59 per diluted common share, for the first quarter of 2024. This represents a decrease from $0.63 in the previous quarter and $0.78 in the first quarter of last year. The company's adjusted net income was $39.9 million, or $0.85 per diluted common share, reflecting an increase from the previous quarter's $0.77 and the first quarter of last year's $0.76. Despite this adjusted growth, FBK's reported earnings fell short of analyst expectations of $0.70 EPS and estimated net income of $31.10 million.
FBK ended the quarter with loans HFI of $9.29 billion, a slight decrease from the previous quarter's $9.41 billion. Deposits also saw a reduction to $10.50 billion compared to $10.55 billion at the end of the last quarter. The NIM decreased to 3.42% for the quarter, down from 3.46% in the prior quarter and 3.51% in the same quarter last year.
Christopher T. Holmes, President and CEO, highlighted the company's balance sheet strength and earnings momentum, noting that capital, liquidity, credit, and reserves are all in excellent positions. The company's profitability reflects margin and expense actions from the previous year, alongside a securities transaction that contributed to near-term earnings and provided additional balance sheet flexibility.
FBK's financial achievements, particularly the adjusted net income increase, are significant as they demonstrate the company's ability to grow earnings amidst challenges such as a decrease in NIM and loans HFI. The banking industry values these metrics as they are indicative of a bank's profitability and financial health.
FBK's total assets stood at $12.55 billion, with a book value per common share of $31.55 and a tangible book value per common share of $26.21, which represents a 6.48% and an 8.14% annualized increase, respectively, from the previous quarter. These figures are important as they reflect the company's intrinsic value and financial stability.
The company's credit quality was also addressed, with a net provision expense of $0.8 million for the quarter. Nonperforming loans HFI as a percentage of total loans HFI increased to 0.73% from 0.65% at the end of the previous quarter. Despite this, the company's loan portfolio continues to perform as expected, with only 2 basis points of annualized net charge-offs during the quarter.
FB Financial Corp's capital strength allowed for a partial balance sheet restructure and reauthorization of its share repurchase program. Holmes concluded that the first quarter's results reflect the team's efforts to build long-term shareholder value and progress towards industry-leading performance metrics.
Investors and stakeholders are encouraged to review the detailed financial results and metrics in conjunction with the First Quarter 2024 Financial Supplement and Earnings Presentation available on the company’s website.
Explore the complete 8-K earnings release (here) from FB Financial Corp for further details.
