FB Financial (FBK) Q1 2025 earnings summary

Executive summary

• Net income for Q1 2025 was $39.4 million, or $0.84 per diluted share, up from $0.59 in Q1 2024, with adjusted net income of $40.1 million and adjusted EPS of $0.85; tangible book value per share has grown at a 12.8% CAGR since IPO.

• Announced planned merger with Southern States Bancshares, expected to close in Q3 2025, with integration progressing and anticipated earnings accretion and strategic market expansion.

• Focused on organic growth, deepening client relationships, and expanding in new markets such as Tuscaloosa and Asheville.

• Management highlighted strong capital and liquidity, positioning for growth and resilience.

Financial highlights

• Net interest income was $107.6 million, with net interest margin rising to 3.55%; noninterest income was $23 million for the quarter.

• Total revenue for Q1 2025 was $130.7 million, up $23.2 million year-over-year.

• Loan balances grew by $169 million (7.14% annualized), ending at $9.77 billion; deposits were $11.20 billion, up 6.64% year-over-year.

• Core noninterest expense increased to $79.2 million, with a core efficiency ratio of 59.9%.

• Book value per share was $34.44 and tangible book value per share was $29.12 at quarter-end.

Outlook and guidance

• Margin expected to remain between 3.55% and 3.60% standalone, with upper end anticipated post-Southern States merger.

• Loan growth outlook remains high single to low double digits, with robust pipelines and focus on disciplined deposit cost management.

• Charge-offs expected to remain below Q1 levels for the rest of the year.

• Management expects continued investment in technology and talent, and integration of the Southern States acquisition.

• New markets in Asheville and Tuscaloosa are expected to support relationship growth in 2025.