Financial Performance - Net income applicable to FB Financial Corporation for the three months ended September 30, 2023, was $19,175 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, 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, 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, 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, an increase of 5.6% from $86,420,000 in 2022[20]. Asset and Deposit Changes - Total assets decreased to $12,489,631 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 $10,639,068 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, 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 $9,032,433,000 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 $111,384 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 $22,592 thousand in the same period last year[13]. - Total interest paid increased to $185,513,000 in 2023 compared to $31,322,000 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 $2,279 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 $8,189 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 $134,192 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 $4,784,000 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 $476,000 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 $1,281,254,000 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 $0.13 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 $554,536,000 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 $9,298,212 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 $2,129,129,000 in 2022[20]. - The total amount of residential real estate loans was $1,553,096,000, with performing loans at $144,807,000 and nonperforming loans at $4,585,000[74]. - The total performing loans for residential real estate increased from $568,210,000 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 $579,054 thousand, with assets valued at $48,635 thousand and liabilities at $48,568 thousand[113]. - The Company recognized total losses of $(6,128) thousand and $(9,290) thousand in mortgage banking income for the three months ended September 30, 2023, compared to $(6,922) thousand and $13,942 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 $35.90 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 $7,320,000 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].
FB Financial (FBK) - 2023 Q3 - Quarterly Report