FB Financial (FBK) Q4 2024 earnings summary

Executive summary

• Q4 2024 net income was $37.9M ($0.81 per share), adjusted net income $39.8M ($0.85 per share); full-year net income $116M, adjusted $159.3M, with adjusted EPS of $3.40, up 13% year-over-year.

• Loans held for investment grew 5.22% annualized from Q3; deposits rose 8.49% annualized, with total assets up $553M (4.4%) for the year.

• Tangible book value per share at year-end was $28.27, up from $25.69 in 2023, with a CAGR since IPO of 12.9%.

• Core banking segment efficiency ratio improved to 50.2% from 54.1% sequentially, reflecting cost control and tax benefits.

• Management remains focused on organic growth, balance sheet optimization, and disciplined expense management.

Financial highlights

• Q4 net interest income was $108.4M; non-interest income $22M ($24.2M adjusted); net income $37.9M ($39.8M adjusted).

• Full-year net interest income was $416.5M; non-interest income $39.1M ($95.6M adjusted); net income $116M ($159.3M adjusted).

• Net interest margin for Q4 was 3.50%, down slightly due to higher cash balances.

• Core noninterest expense was $72.7M, down from $76.2M in Q3; core efficiency ratio improved to 54.6%.

• Allowance for credit losses at year-end was $151.9M (1.58% of loans HFI); net charge-offs were $11.3M (0.47%), mainly from a single C&I relationship.

Outlook and guidance

• Targeting high single-digit to low double-digit loan growth in 2025, with continued focus on organic growth, new market expansion, and selective M&A.

• Net interest margin expected between 3.54% and 3.61% in Q1 2025; banking non-interest expense for Q1 2025 anticipated at $64M–$66M.

• Management expects continued operating leverage, efficiency, and capital build, supported by strong liquidity.

• Economic assumptions include stable GDP growth, 4.1% unemployment, and gradual CRE price improvement.