FB Financial (US:FBK)2025-11-07 19:56Financial Performance - Net interest income for the three months ended September 30, 2025, was $147,240 thousand, a 38.8% increase from $106,017 thousand in the same period of 2024[14]. - Net income applicable to FB Financial Corporation for the three months ended September 30, 2025, was $23,375 thousand, compared to $10,220 thousand in the same period of 2024, marking an increase of 129.3%[14]. - Earnings per common share for the three months ended September 30, 2025, were $0.44, up from $0.22 in the same period of 2024, representing a 100% increase[14]. - Total revenues for the nine months ended September 30, 2025, reached $426,430, up from $410,887 in 2024, indicating a growth of 3.8%[71]. - For the nine months ended September 30, 2025, the consolidated net interest income was $366,296,000, compared to $308,122,000 for the same period in 2024, reflecting an increase of approximately 18.9%[198]. Asset Growth - Total assets increased to $16,236,459 thousand as of September 30, 2025, up from $13,157,482 thousand at December 31, 2024, representing a growth of 23.5%[13]. - The company’s total equity increased to $1,978,136 thousand as of September 30, 2025, up from $1,567,631 thousand at December 31, 2024, representing a growth of 26.2%[13]. - Goodwill increased to $350,353 thousand as of September 30, 2025, from $242,561 thousand at December 31, 2024, reflecting growth due to acquisitions[13]. - Total deposits rose to $13,812,955 thousand as of September 30, 2025, up from $11,210,434 thousand at December 31, 2024, reflecting a growth of 23.3%[13]. Credit Loss Provisions - Provision for credit losses on loans held for investment was $29,957 thousand for the three months ended September 30, 2025, compared to $1,856 thousand in the same period of 2024, indicating a significant increase in credit loss provisions[14]. - The provision for credit losses on loans held for investment (HFI) increased significantly to $30,761,000 in 2025 from $7,648,000 in 2024[20]. - The provisions for credit losses for the three months ended September 30, 2025, were $34,417,000, compared to $1,914,000 for the same period in 2024, indicating a significant increase in credit loss provisions[196]. Noninterest Income and Expenses - Noninterest income for the three months ended September 30, 2025, was $26,635 thousand, compared to a loss of $16,497 thousand in the same period of 2024, showing a recovery in noninterest income[14]. - The company reported a total noninterest expense of $109,856 thousand for the three months ended September 30, 2025, compared to $76,212 thousand in the same period of 2024, indicating an increase of 44.2%[14]. Stock and Equity Transactions - Dividends declared for the quarter were $0.57 per share, totaling $28,038,000, compared to $0.51 per share in the previous quarter[18]. - The company repurchased common stock worth $68,013,000 during the period, indicating a strategic move to enhance shareholder value[18]. - The total common stock outstanding increased to $53,457,000 as of September 30, 2025, from $46,849,000 at December 31, 2023[18]. Merger and Acquisitions - The merger with Southern States Bancshares, Inc. was completed on July 1, 2025, adding 13 branches and expanding the Company's footprint in Alabama and Georgia[60]. - The total assets acquired in the merger amounted to $2,830,374, with total loans of $2,267,305 and total deposits assumed of $2,468,530[60]. - Preliminary goodwill recorded in connection with the merger is $107,792, which is not deductible for income tax purposes[61]. Loan Portfolio and Quality - Gross loans outstanding increased to $12,297,600 as of September 30, 2025, up from $9,602,384 as of December 31, 2024, reflecting a growth of approximately 28%[85]. - The allowance for credit losses on loans held for investment (HFI) was $184,993 as of September 30, 2025, compared to $151,942 as of December 31, 2024, indicating an increase of about 21.8%[85]. - The total for consumer type loans was evaluated based on delinquency and accrual status, with nonperforming loans including those past due ninety or more days[95]. Cash Flow and Liquidity - Net cash provided by operating activities for the nine months ended September 30, 2025, was $103,049,000, down from $124,670,000 in 2024, reflecting a decrease of approximately 17%[20]. - The company reported a net cash increase of $237,545,000 in cash and cash equivalents, compared to an increase of $140,818,000 in the same period of 2024[21]. - The company’s cash and cash equivalents increased to $1,280,033,000 as of September 30, 2025, from $1,042,488,000 as of December 31, 2024, representing an increase of approximately 22.8%[191]. Regulatory Compliance and Capital Ratios - As of September 30, 2025, the company met all capital adequacy requirements under U.S. Basel III Capital Rules, indicating strong regulatory compliance[205]. - FB Financial Corporation's Tier 1 capital to risk-weighted assets ratio stood at 11.7% as of September 30, 2025, with Tier 1 capital of $1,662,376, compared to FirstBank's 12.0% ratio and Tier 1 capital of $1,687,888[207]. Employee Compensation and Benefits - The employer matching contributions for the 401(k) plan totaled $1,478 for the three months ended September 30, 2025, and $3,691 for the nine months ended September 30, 2025, compared to $760 and $2,526 for the same periods in 2024[208]. - Accrued expenses related to nonqualified supplemental retirement plans amounted to $12,722, significantly higher than $2,328 as of December 31, 2024[209].