FB Financial Corporation

FB Financial reported EPS of $1.13 and adjusted EPS of $1.14. Net income was $58.6 million, adjusted net income was $58.9 million, and pretax pre-provision net revenue increased to $83.3 million, or about 8% higher in the quarter. Annualized loan growth was 11.6% and annualized deposit growth was 7.7%; net interest margin was 3.95%; noninterest expense was $91.5 million; provision expense was $10.1 million; noninterest income was $25.8 million, or $26.2 million adjusted; and net charge-offs were 6 basis points annualized. For the full year, management reaffirmed loan growth in the mid to high single-digit range, deposit growth in the mid to high single digits trending toward the lower end, net interest margin excluding loan accretion of 3.7% to 3.8%, banking segment noninterest expense of $325 million to $335 million, and a consolidated efficiency ratio around 50%.

Christopher Holmes struck an upbeat tone, saying the company’s outlook is bullish and that momentum is sustainable across the franchise. He emphasized strong balance sheet growth, stable margin, disciplined capital deployment, and healthy pipelines across the Southeast. He also said the company is focused on organic growth first, while remaining open to strategic opportunities only if they clearly add value.

Michael Mettee highlighted balanced growth, stable margin performance, disciplined expense management, and credit that remains manageable despite some borrower-specific issues. He cited a 3.95% net interest margin, deposit costs of 2.26%, new deposit production at 2.6% to 2.70%, and adjusted return on average tangible common equity of 15%. On capital, he noted roughly 3% of shares repurchased in the quarter and capital ratios of 11% CET1, 10.1% Tier 1 leverage, and 12.9% total risk-based capital; he also said the firm expects a low-20% effective tax rate.

Analysts focused on deposit costs, the sustainability of loan growth, margin pressure, the repurchase program, and the pace of hiring and strategic opportunities. Management said deposit competition remains intense, with new money market rates above 4% at many competitors, but that relationship banking and core deposit growth are still working; they also said loan growth is broad-based, with some payoff activity offsetting strong production, and that they expect the margin to drift down only a couple of basis points per quarter through year-end. On buybacks, management said the quarter included a large charity-related repurchase and that future repurchases remain an option, including open-market or bulk transactions.