FB Financial Corporation Reports Mixed Q3 Results, Net Income Down 47%

FB Financial Corporation reported its financial results for the third quarter and nine months ended September 30, 2024, highlighting a mixed performance compared to the previous fiscal period.

For the three months ended September 30, 2024, total interest income increased to $185.6 million, up from $173.9 million in the same period of 2023. Net interest income also rose to $106.0 million from $100.9 million year-over-year. The provision for credit losses on loans held for investment decreased significantly to $1.9 million from $6.0 million in the prior year, reflecting a reduction in construction loan balances. However, net income applicable to FB Financial Corporation fell to $10.2 million, down from $19.2 million in Q3 2023, resulting in basic earnings per share of $0.22 compared to $0.41 in the prior year.

For the nine months ended September 30, 2024, net income was $78.2 million, a decrease from $90.9 million in the same period of 2023. Basic earnings per share for this period were $1.67, down from $1.94. The company reported a total noninterest income loss of $16.5 million for Q3 2024, a stark contrast to a gain of $8.0 million in Q3 2023, primarily due to a net loss of $40.2 million from investment securities.

Total assets as of September 30, 2024, increased to $12.9 billion from $12.6 billion at year-end 2023. Total deposits also rose to $11.0 billion, up from $10.5 billion. The company’s total common shareholders’ equity increased to $1.56 billion, compared to $1.45 billion at the end of 2023, attributed to retained earnings and stock repurchases.

FB Financial's loan portfolio showed growth, with net loans held for investment at $9.3 billion, up from $9.2 billion at year-end 2023. The company’s allowance for credit losses on loans held for investment increased to $156.3 million, representing 1.65% of total loans HFI, compared to 1.60% at the end of 2023.

In terms of strategic developments, the board re-authorized a stock repurchase program allowing for the purchase of up to $100 million in shares, although no repurchases were made during the quarter. The company continues to monitor interest rate risk closely, which remains a significant factor affecting its financial results.

Overall, while FB Financial Corporation experienced growth in interest income and deposits, profitability metrics reflected challenges, particularly in noninterest income and net income.