FB Financial (US:FBK)2023-08-03 16:00Financial Performance - Net income applicable to FB Financial Corporation for the three months ended June 30, 2023, was $35,299 thousand, an increase of 82.3% compared to $19,345 thousand in the same period of 2022[14]. - Earnings per share (EPS) for the second quarter of 2023 was $0.75, up from $0.41 in the same quarter of 2022, indicating an increase of 82.93%[14]. - Comprehensive income applicable to FB Financial Corporation for the three months ended June 30, 2023, was $21,458 thousand, compared to a loss of $29,606 thousand in the same period of 2022[15]. - Net income attributable to FB Financial Corporation for the quarter ended June 30, 2023, was $35,299,000, an increase from $19,345,000 for the same quarter in 2022[18]. - Net income applicable to FB Financial Corporation for the six months ended June 30, 2023, was $71,688,000, an increase of 31.3% compared to $54,589,000 in 2022[23]. - Basic earnings per common share for the six months ended June 30, 2023, was $1.53, up 33.0% from $1.15 in the same period of 2022[33]. Asset and Deposit Growth - Total assets increased to $12,887,395 thousand as of June 30, 2023, compared to $12,847,756 thousand at December 31, 2022, reflecting a growth of 0.31%[13]. - Total deposits remained stable at $10,872,255 thousand as of June 30, 2023, compared to $10,855,834 thousand at December 31, 2022[13]. - As of June 30, 2023, total common shareholders' equity was $1,386,951,000, reflecting a decrease from $1,432,602,000 at December 31, 2021[20]. - The net increase in deposits for the six months ended June 30, 2023, was $15,489,000, contrasting with a decrease of $287,478,000 in the same period of 2022[23]. Income and Expense Analysis - Net interest income for the three months ended June 30, 2023, was $101,543 thousand, slightly down from $102,171 thousand in the same period of 2022, representing a decrease of 0.62%[14]. - Noninterest income for the three months ended June 30, 2023, was $23,813 thousand, down from $33,214 thousand in the same period of 2022, a decrease of 28.3%[14]. - Total noninterest expense decreased to $81,292 thousand for the three months ended June 30, 2023, from $96,997 thousand in the same period of 2022, a reduction of 16.2%[14]. - The company incurred $12,458 thousand in restructuring expenses during the second quarter of 2022 due to exiting the direct-to-consumer internet delivery channel[149]. Credit Loss Provisions - Provision for credit losses on loans held for investment was $2,575 thousand for the three months ended June 30, 2023, compared to $8,181 thousand in the same period of 2022, a decrease of 68.5%[14]. - The provision for credit losses for the six months ended June 30, 2023, totaled $7,572 thousand, indicating a significant decrease compared to the previous year's provision[67]. - The allowance for credit losses on loans held for investment increased to $140,664 thousand as of June 30, 2023, from $134,192 thousand at December 31, 2022[13]. - The company’s allowance for credit losses was qualitatively adjusted due to an uncertain economic outlook, including inflation and predicted Federal Reserve rate increases[61]. Loan Portfolio and Quality - As of June 30, 2023, total loans held for investment amounted to $9,326,024, an increase from $9,298,212 as of December 31, 2022, reflecting a growth of approximately 0.3%[54]. - The Company’s residential real estate loans, including 1-to-4 family mortgages, totaled $1,548,614 as of June 30, 2023, down from $1,573,121 as of December 31, 2022, a decrease of about 1.6%[54]. - The Company’s commercial real estate loans (non-owner occupied) decreased to $1,881,978 as of June 30, 2023, from $1,964,010 as of December 31, 2022, reflecting a decline of approximately 4.2%[54]. - The total amount of nonaccrual loans as of June 30, 2023, was $15,726,000, with $1,313,000 in commercial and industrial loans[83]. Securities and Investments - As of June 30, 2023, the total amortized cost of available-for-sale debt securities was $1,645,373, with a fair value of $1,419,360, reflecting a decrease in fair value of $226,400[43]. - The total carrying amount of securities pledged as of June 30, 2023, was $1,138,262, down from $1,191,021 as of December 31, 2022[44]. - The company reported a net cash provided by investing activities of $53,643,000 for the six months ended June 30, 2023, compared to a net cash used of $1,110,339,000 in 2022[23]. - The total carrying amount of deposits without stated maturities is $9,251,599, with a fair value equal to the carrying amount[134]. Derivative Financial Instruments - The total notional amount of non-designated derivative financial instruments as of June 30, 2023, was $1,567,921,000, with assets valued at $46,121,000 and liabilities at $43,039,000[119]. - The Company reported a loss of $(2,979,000) in mortgage banking income related to non-designated derivative financial instruments for the three months ended June 30, 2023, compared to a gain of $7,274,000 in the same period of 2022[119]. - The estimated fair value of cash flow hedges as of June 30, 2023, was $1,011,000, down from $1,255,000 at the end of 2022[121]. - The Company’s derivative financial assets amounted to $44,150,000, while liabilities were $18,441,000 as of June 30, 2023[126]. Capital and Shareholder Information - The total capital to risk-weighted assets ratio for FB Financial Corporation was 13.9% as of June 30, 2023, exceeding the minimum requirement of 10.5%[161]. - Tier 1 capital to risk-weighted assets ratio for FB Financial Corporation was 11.9% as of June 30, 2023, above the minimum requirement of 8.5%[161]. - The company granted 163,552 restricted stock units (RSUs) during the six months ended June 30, 2023, with a weighted average grant date fair value of $36.04[163]. - The total fair value of RSUs vested and released was $6,393 thousand for the six months ended June 30, 2023[163].