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FB Financial (FBK) - 2023 Q3 - Quarterly Report
FBKFB Financial (FBK)2023-11-02 16:00
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Financial Performance - Net income applicable to FB Financial Corporation for the three months ended September 30, 2023, was 19,175thousand,down39.719,175 thousand, down 39.7% from 31,831 thousand in the same period last year[13]. - Earnings per share (EPS) for the three months ended September 30, 2023, was 0.41,adecreasefrom0.41, a decrease from 0.68 in the same period of 2022[13]. - Comprehensive loss income applicable to FB Financial Corporation for the three months ended September 30, 2023, was (9,816)thousand,comparedto(9,816) thousand, compared to (35,114) thousand in the same period of 2022[14]. - Net income attributable to FB Financial Corporation for Q3 2023 was 19,175,000,adecreasefrom19,175,000, a decrease from 31,831,000 in Q3 2022, representing a decline of approximately 40%[16]. - Net income applicable to FB Financial Corporation for the nine months ended September 30, 2023, was 90,863,000,anincreaseof5.690,863,000, an increase of 5.6% from 86,420,000 in 2022[20]. Asset and Deposit Changes - Total assets decreased to 12,489,631thousandasofSeptember30,2023,downfrom12,489,631 thousand as of September 30, 2023, down from 12,847,756 thousand at the end of 2022, representing a decline of approximately 2.8%[12]. - Total deposits decreased to 10,639,068thousandasofSeptember30,2023,downfrom10,639,068 thousand as of September 30, 2023, down from 10,855,834 thousand at the end of 2022, reflecting a decline of approximately 2.0%[12]. - Cash and cash equivalents at the end of the period were 848,318,000,anincreasefrom848,318,000, an increase from 618,290,000 at the end of the same period in 2022[20]. - The total carrying amount of deposits without stated maturities was 9,032,433,000asofSeptember30,2023[128].IncomeandExpenseAnalysis−NetinterestincomeforthethreemonthsendedSeptember30,2023,was9,032,433,000 as of September 30, 2023[128]. Income and Expense Analysis - Net interest income for the three months ended September 30, 2023, was 100,926 thousand, a decrease of 9.8% compared to 111,384thousandforthesameperiodin2022[13].−NoninterestincomeforthethreemonthsendedSeptember30,2023,was111,384 thousand for the same period in 2022[13]. - Noninterest income for the three months ended September 30, 2023, was 8,042 thousand, a significant decrease of 64.4% compared to 22,592thousandinthesameperiodlastyear[13].−Totalinterestpaidincreasedto22,592 thousand in the same period last year[13]. - Total interest paid increased to 185,513,000 in 2023 compared to 31,322,000in2022,indicatingasubstantialriseininterestexpenses[21].−ThetotalleasecostforthethreemonthsendedSeptember30,2023,was31,322,000 in 2022, indicating a substantial rise in interest expenses[21]. - The total lease cost for the three months ended September 30, 2023, was 2,255, a slight decrease from 2,279inthesameperiodof2022,reflectingadeclineofabout1.12,279 in the same period of 2022, reflecting a decline of about 1.1%[94]. Credit Losses and Provisions - Provision for credit losses on loans held for investment was 6,031 thousand for the three months ended September 30, 2023, compared to 8,189thousandinthesameperiodof2022,indicatingadecreaseof26.48,189 thousand in the same period of 2022, indicating a decrease of 26.4%[13]. - The allowance for credit losses on loans held for investment increased to 146,134 thousand as of September 30, 2023, compared to 134,192thousandattheendof2022,representinganincreaseof8.5134,192 thousand at the end of 2022, representing an increase of 8.5%[12]. - The provision for credit losses on loans HFI for the nine months ended September 30, 2023, totaled 13,603,000, compared to a reversal of 4,784,000forthesameperiodin2022[62].−Thecompanyreportedrecoveriesofloanspreviouslycharged−offamountingto4,784,000 for the same period in 2022[62]. - The company reported recoveries of loans previously charged-off amounting to 235,000 for the three months ended September 30, 2023, compared to 476,000forthesameperiodin2022[62].ShareholderEquityandDividends−Totalshareholders′equityasofSeptember30,2023,was476,000 for the same period in 2022[62]. Shareholder Equity and Dividends - Total shareholders' equity as of September 30, 2023, was 1,372,994,000, compared to 1,281,254,000asofSeptember30,2022,indicatinganincreaseofabout7.11,281,254,000 as of September 30, 2022, indicating an increase of about 7.1%[16]. - The company declared dividends of 0.15 per share in Q3 2023, up from 0.13pershareinQ32022,reflectinga15.40.13 per share in Q3 2022, reflecting a 15.4% increase in dividend payout[16]. - Retained earnings increased to 656,120,000 as of September 30, 2023, from 554,536,000asofSeptember30,2022,markingagrowthofapproximately18.4554,536,000 as of September 30, 2022, marking a growth of approximately 18.4%[16]. Loan Portfolio and Performance - As of September 30, 2023, total gross loans outstanding were 9,287,225, a slight decrease from 9,298,212asofDecember31,2022[49].−Thecompanyoriginatedloansheldforsaletotaling9,298,212 as of December 31, 2022[49]. - The company originated loans held for sale totaling 970,131,000 in 2023, a decrease of 54.4% from 2,129,129,000in2022[20].−Thetotalamountofresidentialrealestateloanswas2,129,129,000 in 2022[20]. - The total amount of residential real estate loans was 1,553,096,000, with performing loans at 144,807,000andnonperformingloansat144,807,000 and nonperforming loans at 4,585,000[74]. - The total performing loans for residential real estate increased from 568,210,000in2022to568,210,000 in 2022 to 144,807,000 in 2023, indicating a shift in the loan portfolio[75]. Regulatory and Compliance - The company met all capital adequacy requirements as of September 30, 2023, with a total capital ratio of 14.1% for FB Financial Corporation[157]. - The Tier 1 capital ratio for FB Financial Corporation was 12.1% as of September 30, 2023, exceeding the minimum requirement of 8.5%[157]. - The company implemented its transition plan away from LIBOR following the benchmark's discontinuation effective June 30, 2023, with no material impact on financial statements[31]. Derivatives and Hedging - The notional amount of interest rate contracts as of September 30, 2023, was 579,054thousand,withassetsvaluedat579,054 thousand, with assets valued at 48,635 thousand and liabilities at 48,568thousand[113].−TheCompanyrecognizedtotallossesof48,568 thousand[113]. - The Company recognized total losses of (6,128) thousand and (9,290)thousandinmortgagebankingincomeforthethreemonthsendedSeptember30,2023,comparedto(9,290) thousand in mortgage banking income for the three months ended September 30, 2023, compared to (6,922) thousand and 13,942thousandforthesameperiodsin2022[113].−Thecumulativedecreaseinfairvaluehedgingadjustmentincludedinthecarryingamountofthehedgeditemforborrowingswas13,942 thousand for the same periods in 2022[113]. - The cumulative decrease in fair value hedging adjustment included in the carrying amount of the hedged item for borrowings was (1,661) thousand as of September 30, 2023[119]. Employee Compensation and Stock Options - The company granted 166,591 restricted stock units (RSUs) with a weighted average grant date fair value of 35.90duringtheninemonthsendedSeptember30,2023[159].−ThetotalfairvalueofRSUsvestedwas35.90 during the nine months ended September 30, 2023[159]. - The total fair value of RSUs vested was 7,601,000 for the nine months ended September 30, 2023, compared to 7,320,000forthesameperiodin2022[159].−Performance−basedrestrictedstockunits(PSUs)grantedtotaled86,010withaweightedaveragegrantdatefairvalueof7,320,000 for the same period in 2022[159]. - Performance-based restricted stock units (PSUs) granted totaled 86,010 with a weighted average grant date fair value of 37.17 during the nine months ended September 30, 2023[163].