FB Financial (FBK) Q3 2024 earnings summary

Executive summary

• Reported Q3 2024 net income of $10.2 million ($0.22 per share), with adjusted net income of $40.1 million ($0.86 per share); adjusted ROAA at 1.25%.

• Loans held for investment grew 7.2% annualized to $9.48 billion; deposits rose 5.4% annualized to $10.98 billion.

• Tangible book value per share increased to $28.15, with book value per share at $33.48.

• Net interest margin was 3.55%, with net interest income at $106 million.

• Management remains optimistic for 2025, citing momentum and expected interest rate decreases.

Financial highlights

• Adjusted EPS up 2.4% sequentially and 21% year-over-year; adjusted pre-tax, pre-provision net revenue was $53.8 million.

• Core noninterest income was $24 million; noninterest expense was $76.2 million.

• Sold $318.6 million in securities at a $40.2 million pre-tax loss, reinvested at higher yields.

• Allowance for credit losses at 1.65% of loans HFI; net charge-offs annualized at 0.03%.

• Efficiency ratio was 85.1% (core 58.4%); tangible common equity to tangible assets at 10.4%.

Outlook and guidance

• Management expects continued loan and deposit growth, with optimism for 2025 based on anticipated rate decreases.

• Margin expected in the 3.50%-3.60% range for Q4; banking expenses projected at $63-$65 million.

• Mortgage segment expected to remain profitable despite industry headwinds.

• Focus on efficiency, scalability, and ongoing credit quality monitoring.