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NASHVILLE - FB Financial Corporation (NYSE:FBK) shares fell 7.5% after the parent company of FirstBank reported second-quarter revenue that significantly missed analyst expectations, despite posting adjusted earnings that met estimates.
The company reported adjusted earnings of $0.88 per share for the second quarter, matching analyst expectations. However, revenue came in at just $76.86 million, well below the consensus estimate of $136.37 million. The revenue shortfall occurred despite the company reporting loan growth and improved net interest margin.
FB Financial’s GAAP earnings were only $0.06 per share, with the difference primarily due to a $60.5 million loss from selling $266.5 million of low-yielding securities. The company indicated it plans to use proceeds from this transaction to redeem outstanding debt and originate higher-yielding loans.
"The Company delivered solid operating results in the second quarter with growth in both loans and customer deposits, a healthy net interest margin and managed expense growth," said Christopher T. Holmes, President and CEO.
Loans held for investment grew to $9.87 billion, up 6.07% from $9.31 billion in the same quarter last year. Total (EPA:TTEF) deposits increased 8.94% YoY to $11.40 billion. Net interest margin improved to 3.68% from 3.57% in the year-ago quarter.
The company’s core efficiency ratio improved to 56.9% compared to 58.3% in the second quarter of 2024. FB Financial maintained strong capital levels with a preliminary total risk-based capital ratio of 14.7%.
On July 1, FB Financial completed its merger with Southern States Bancshares, adding approximately $2.87 billion in total assets, $2.32 billion in loans, and $2.47 billion in deposits. The company expects system conversions related to the transaction to be completed in the third quarter.
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